SENXUAN(BJ:830946)2023-03-28 16:00Expansion and Approvals - In May 2022, the subsidiary Luhua Senxuan completed a 6,000-ton expansion project for Dioxane, passing safety acceptance[3]. - In August 2022, the subsidiary Nantong Company’s Pumice product received FDA approval for generic drug registration[3]. - By the end of 2022, the subsidiary Nantong Company had registered its raw material drug product Huberzong in 19 countries, with approvals from the UK, Portugal, Switzerland, and Spain[3]. - The subsidiary Nantong Senxuan was recognized as a "Specialized, Refined, and Innovative Small Giant Enterprise" in Jiangsu Province in December 2022[3]. - The company’s analysis and testing center laboratory received CNAS certification in December 2022[3]. Financial Performance - In 2022, the company's operating revenue reached approximately CNY 623.59 million, representing a 10.66% increase from CNY 563.54 million in 2021[26]. - The net profit attributable to shareholders increased by 22.29% to approximately CNY 160.54 million in 2022, compared to CNY 131.28 million in 2021[26]. - The gross profit margin for 2022 was 44.85%, slightly down from 44.87% in 2021[26]. - The company’s weighted average return on equity was 15.56% in 2022, up from 13.50% in 2021[26]. - The company’s basic earnings per share increased by 22.31% to CNY 0.3761 in 2022, compared to CNY 0.3075 in 2021[26]. Risks and Challenges - The company is facing risks related to tax policy changes, exchange rate fluctuations, and potential bad debts from accounts receivable due to rapid business expansion[10]. - The company’s procurement of raw materials has seen price increases, which could negatively impact profitability if the trend continues[10]. - The company has not listed the impact of the COVID-19 pandemic as a major risk for future operations, indicating a shift in focus[12]. - The company faced significant competition from raw material manufacturers in developing countries, particularly India, impacting pricing and market share[14]. - The company is at risk of market demand changes due to high technological barriers in the pharmaceutical industry, particularly from innovations in developed countries[14]. Research and Development - The company has been recognized as a high-tech enterprise and a specialized, refined, distinctive, and innovative enterprise at the provincial level[42]. - R&D expenditure for the current period amounted to ¥30,884,191.98, an increase from ¥28,102,839.63 in the previous period, representing a growth of approximately 10%[80]. - The total number of R&D personnel increased from 100 to 103, with the proportion of R&D staff to total employees remaining stable at around 15.77%[82]. - The company holds a total of 125 patents, up from 100 in the previous period, including 24 invention patents, an increase from 14[83]. - Several R&D projects have been completed, including the development of high-purity synthesis methods and cost-reduction techniques, aimed at enhancing product quality and market competitiveness[84]. Environmental Compliance - The company emphasized its commitment to environmental protection, with all subsidiaries complying with relevant pollution discharge standards and regulations[94]. - The company’s subsidiary, Jinghua Pharmaceutical Group Nantong Co., Ltd., reported a COD discharge concentration of 223.64 mg/l, which is below the regulatory limit of 500 mg/l[100]. - The company has implemented measures to protect the environment and improve living conditions for local residents[93]. - The company has established a rigorous monitoring frequency for various pollutants, including monthly checks for VOCs and quarterly checks for particulate matter[106]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[115]. Shareholder Commitments and Financial Management - The company commits to stabilizing its stock price for three years after the public offering and listing on the selected tier, initiating measures if the stock price falls below the audited net asset value per share from the previous fiscal year for 20 consecutive trading days[153]. - The company will prioritize cash dividends in profit distribution, with a principle of distributing dividends at least once per fiscal year, barring special circumstances[168]. - The board will propose cash dividend plans based on the company's profitability and funding needs, ensuring that independent directors review and provide opinions on these plans[167]. - The company has a positive cumulative distributable profit and sufficient cash flow, allowing for cash dividends without affecting future operations[169]. - The company will ensure compliance with relevant laws and regulations regarding shareholding and changes in shareholding by its controlling shareholders[176].