HONZ(SZ:300086)2016-04-18 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year[12]. - The company's operating revenue for 2015 was CNY 409,757,276.55, representing a 0.30% increase compared to CNY 408,538,464.51 in 2014[17]. - Net profit attributable to shareholders for 2015 was CNY 68,311,105.83, a 10.02% increase from CNY 59,081,710.27 in 2014[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 29.71% to CNY 36,021,374.00 from CNY 48,237,343.11 in 2014[17]. - The basic earnings per share for 2015 was CNY 0.1518, up 10.00% from CNY 0.1313 in 2014[17]. - The company achieved a net profit of RMB 13,621,860.27 for the year 2015, with a proposed allocation of profits to support business operations and investment development, resulting in no profit distribution for the year[156]. - The company distributed cash dividends of RMB 30,000,000 for the first half of 2015, with a dividend payout ratio of 43.92% of the net profit attributable to ordinary shareholders[160]. - The company will not conduct any profit distribution or capital reserve transfer for the fiscal year 2015, focusing instead on expanding its main business[159]. Market Expansion and Product Development - User data indicates that the company has expanded its customer base by 20%, reaching over 5 million active users[12]. - The company plans to launch three new products in the upcoming year, focusing on pediatric medications, which are expected to contribute an additional 200 million RMB in revenue[6]. - Future outlook includes a projected revenue growth of 10% for the next fiscal year, driven by market expansion and new product launches[12]. - The company is committed to addressing the "lack of medicine" issue in the children's drug market by expanding its product range and improving standards[131]. - The company aims to achieve a total revenue of 5 billion yuan by 2020 through internal growth from new product sales and external growth via investments and acquisitions[138]. - The company plans to enhance its product quality and structure by focusing on in-depth research, standard improvement, and clinical value assessment of existing products[139]. - The company will strengthen its marketing and service capabilities, focusing on comprehensive market development across prescription and over-the-counter drugs, hospitals, and retail markets[140]. Mergers and Acquisitions - The company is actively pursuing mergers and acquisitions to enhance its market presence, with a budget allocation of 300 million RMB for potential acquisitions[8]. - The company has completed the acquisition of a 100% stake in Guangdong Yuanning Pharmaceutical Co., Ltd., but the integration of marketing channels is still ongoing[105]. - The company plans to use RMB 28 million to acquire 100% equity of Hebei Tianhe Pharmaceutical Group Co., Ltd. and an additional RMB 14.7 million for capital increase[106]. - A total of RMB 180 million is allocated for the acquisition of 100% equity of Shenyang Yanfeng Pharmaceutical Co., Ltd. and for capital increase[107]. - The company has invested CNY 8,000 million in acquiring the entire assets of Hebei Tianhe Pharmaceutical Group, now known as Hebei Kangzhi Pharmaceutical Co., Ltd.[105]. Research and Development - R&D investment for 2015 amounted to ¥30,060,143.93, representing 7.34% of operating revenue, a significant increase from 3.04% in 2014[89]. - The capitalized R&D expenditure for 2015 was ¥20,339,622.66, accounting for 67.66% of total R&D investment, which is a notable increase from 26.74% in 2014[89]. - The company established three advanced technology platforms: "oral fast-dissolving film," "supercritical fluid crystallization," and "drug powder characterization" in June 2015[66]. - The company obtained drug registration approval for the product "Levocetirizine Hydrochloride Granules," enhancing its product variety in children's medication[66]. - The company has entered the registration process for 18 projects as of the end of the reporting period[66]. Compliance and Quality Control - The company is committed to maintaining compliance with industry regulations and enhancing its production quality standards[12]. - The company renewed its drug production license, with the new certificate valid until December 29, 2020, for various formulations including powder injections and tablets[51]. - The company’s solid oral dosage workshop passed the 2010 version of GMP certification, with the certificate valid until January 9, 2019[51]. - The company is actively promoting GMP certification for its Yuanning Pharmaceutical subsidiary, with preparations underway for certification submission[60]. Financial Management and Investments - The company has established a wholly-owned subsidiary, Shenzhen Kanghongda Investment Co., Ltd., which was included in the consolidated financial statements[82]. - The company has utilized RMB 107.91 million of its own funds for the construction of the children's medicine production base, which has been fully replaced with raised funds[115]. - The company has allocated RMB 38.41 million for the acquisition of 100% equity of Guangdong Yuanning Pharmaceutical Co., Ltd. and an additional RMB 10 million for capital increase[110]. - The company has injected RMB 50 million of raised funds into its subsidiary for land payment and registration[127]. Legal Matters - The company is currently involved in a lawsuit regarding the alleged infringement of its product "瑞芝清" and has filed a complaint against Tencent Technology (Shenzhen) Co., Ltd.[186]. - The company has taken measures to address the spread of false information that could harm its reputation and financial standing[186]. - The company has initiated an appeal process in response to unfavorable rulings in previous legal proceedings[186]. - The company is monitoring the developments in its legal cases closely, as they may affect its financial reporting and market position[186]. Corporate Governance - The company has implemented a cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring transparency and protection of minority shareholders' rights[154]. - The company has engaged in multiple institutional research activities to communicate its operational status and financial performance[150]. - The company has committed to not transferring or entrusting the management of shares held before the public offering for a period of 36 months from the date of listing[161]. - The company has appointed Zhongshun Zhonghuan Accounting Firm as the new auditor, replacing Zhongshun Yatai Accounting Firm[180].