JSSH(000518)2018-04-27 16:00Financial Performance - The company's operating revenue for 2017 was CNY 346,054,646.61, representing a 5.73% increase compared to CNY 327,313,301.33 in 2016[18]. - The net profit attributable to shareholders for 2017 was CNY 7,288,394.73, a significant increase of 62.94% from CNY 4,472,925.91 in 2016[18]. - The basic earnings per share for 2017 was CNY 0.0071, up 65.12% from CNY 0.0043 in 2016[18]. - Total revenue for 2017 reached ¥346,054,646.61, representing a year-on-year increase of 5.73% compared to ¥327,313,301.33 in 2016[37]. - The company reported a significant increase in inventory levels, with Interleukin inventory rising by 188.65% to 625,310 units[41]. - The company reported a significant reduction in financial expenses by 85.98% to ¥1,867,260.57, as last year's figures included interest payments related to litigation[51]. - The company reported a significant reduction in accounts payable from CNY 313,105,818.90 to 19,103,191.98, a decrease of about 93.9%[171]. - The company reported a decrease in cash and cash equivalents of ¥24,221,531.36 for the period[186]. - The total comprehensive income for the period was CNY 10,650,335.19, compared to CNY 5,608,661.99 in the previous period, indicating a growth of 89.56%[179]. Cash Flow and Investments - The net cash flow from operating activities was negative CNY 10,785,813.91, a decline of 193.14% compared to a positive CNY 11,579,773.72 in 2016[18]. - Operating cash inflow totaled ¥362,422,720.30, a 17.60% increase from the previous year, while operating cash outflow rose by 52.97% to ¥453,688,363.43[53]. - Investment cash inflow increased by 52.30% to ¥52,021,223.31, primarily due to cash inflow from the disposal of equity in Jiangsu Sihuan Biopharmaceutical Co., Ltd.[54]. - Cash inflow from investment activities was ¥52,021,223.31, compared to ¥34,157,482.54 in the previous period, indicating a growth of approximately 52.2%[186]. - The net cash flow from investment activities was ¥28,875,496.70, significantly higher than ¥9,344,549.68 in the previous period[186]. Assets and Liabilities - Total assets at the end of 2017 were CNY 931,628,406.78, down 8.43% from CNY 1,017,357,931.64 at the end of 2016[18]. - Total liabilities decreased to CNY 256,083,448.72 from CNY 406,262,908.77, a reduction of approximately 37%[172]. - The company's cash and cash equivalents decreased to CNY 40,728,343.14 from CNY 64,949,874.50, a decline of about 37.4%[169]. - The total assets decreased to CNY 931,628,406.78 from CNY 1,017,357,931.64, reflecting a decline of about 8.4%[172]. - The company's equity increased to CNY 675,544,958.06 from CNY 611,095,022.87, an increase of approximately 10.5%[172]. Business Operations and Strategy - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company is transitioning towards the ecological agriculture and forestry industry, with the establishment of Jiangsu Chenwei Ecological Park Technology Co., Ltd. in 2015[27]. - The company aims to consolidate its existing market in the pharmaceutical industry and develop new products while expanding into new markets[69]. - The company is actively expanding its landscaping engineering business, accumulating project resources[34]. - The company aims to achieve profitability for Jiangsu Chenwei Ecological Park in the 2018 fiscal year through improved project management[69]. Market and Industry Outlook - The pharmaceutical industry in China is expected to maintain an average annual growth rate of over 10% during the 13th Five-Year Plan period[28]. - The pharmaceutical industry in China is expected to maintain a growth rate higher than 10% annually during the 13th Five-Year Plan period, driven by increasing healthcare awareness and an aging population[68]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2020[121]. Governance and Compliance - The company has established a governance structure to protect minority shareholders' rights and ensure compliance with relevant laws and regulations[98]. - The company has maintained a focus on improving information disclosure management to ensure all shareholders receive equal access to information[98]. - The company has established an independent financial department with its own accounting system and tax obligations, ensuring financial decision-making autonomy[141]. - The company adheres to strict information disclosure practices, ensuring timely and accurate communication with investors[138]. Employee and Management - The total number of employees in the company is 280, with 123 in production, 25 in sales, 67 in technical roles, 14 in finance, and 51 in administration[132]. - The company has implemented a performance evaluation system to objectively assess employee capabilities and work performance, effectively enhancing employee motivation[100]. - The company has established a comprehensive training program to enhance employee skills and management capabilities[100]. - The total remuneration for directors and senior management during the reporting period amounted to 1,147,400 CNY, with the highest being 252,700 CNY for the chairman and general manager[130]. Risks and Challenges - The company faces risks from government price controls on pharmaceuticals, which may negatively impact its performance[68]. - The company reported a decrease in operating income and net profit due to the judicial auction of Jiangsu Sihuan Biological Co., Ltd.[65].