GARDEN BIO-CHEM(300401)2025-03-24 11:25Financial Performance - The company's revenue for 2024 reached ¥1,243,283,228.76, representing a 13.58% increase compared to ¥1,094,651,559.54 in 2023 [22]. - Net profit attributable to shareholders increased by 60.76% to ¥309,212,798.15 from ¥192,348,873.69 in the previous year [22]. - The net profit after deducting non-recurring gains and losses rose by 74.02% to ¥256,888,423.11, up from ¥147,616,823.26 in 2023 [22]. - The net cash flow from operating activities surged by 191.53% to ¥466,406,332.89, compared to ¥159,984,577.98 in the previous year [22]. - Basic earnings per share increased by 62.86% to ¥0.57 from ¥0.35 in 2023 [22]. - Total assets at the end of 2024 amounted to ¥5,612,645,527.96, a 6.69% increase from ¥5,260,592,068.07 in 2023 [22]. - Net assets attributable to shareholders grew by 11.24% to ¥3,218,400,077.44, compared to ¥2,893,130,267.00 at the end of 2023 [22]. - The weighted average return on equity for 2024 was 10.17%, up from 7.30% in the previous year [22]. Dividend Distribution - The company plans to distribute a cash dividend of 1.14 CNY per 10 shares to all shareholders, based on a total share capital of 543,467,249 shares [6]. - The company will not issue bonus shares or increase capital reserves in the current profit distribution plan [6]. - For the fiscal year 2024, the company will distribute a cash dividend of RMB 1.14 per 10 shares, amounting to RMB 61,955,266.39, with no stock bonus or capital increase [144]. - The company's net profit for 2024 is reported at RMB 309,212,798.15, with available distributable profits of RMB 1,753,020,180.53 [144]. Risk Management - The company emphasizes the importance of understanding risks related to industry cyclicality, drug price declines, and procurement failures in the vitamin sector [5]. - Future development plans and forward-looking statements do not constitute substantial commitments to investors, highlighting the need for cautious decision-making [5]. - The management discussion section outlines potential risks and challenges the company may face in its operations [5]. - The company recognizes risks related to vitamin price fluctuations, which significantly impact revenue due to the high proportion of vitamin product sales [104]. - The company faces project investment risks, as the construction of funded projects may encounter uncertainties in progress, implementation, and effectiveness [104]. - The company is exposed to risks from changes in medical reform policies that could alter market competition and business models [104]. - The company anticipates continued downward pressure on drug prices due to government policies aimed at reducing medical costs, which may negatively affect profitability [104]. Research and Development - The company plans to continue expanding its product lines and enhance R&D efforts in innovative drugs and technologies [22]. - The company emphasizes R&D investment and has a sustainable product development pipeline for new product research and technology innovation [50]. - The company has three R&D centers in Dongyang, Jinhua, and Hangzhou, focusing on natural product biosynthesis, industrialization research, and cutting-edge drug trials [51]. - The company is currently conducting multiple R&D projects aimed at enriching its product line and enhancing market competitiveness [77]. - The company has ongoing projects in various stages, with several products awaiting approval for market launch [77]. Market Expansion and Strategy - The company is actively pursuing market expansion strategies and potential mergers and acquisitions to strengthen its market position [22]. - The company has established a comprehensive vitamin D3 industrial chain, becoming the only global producer with this capability [53]. - The company has outlined a strategy to enhance its product offerings and market expansion efforts in the future [166]. Environmental and Social Responsibility - The report will cover significant environmental and social responsibility issues faced by the company [10]. - The company has established a standardized hazardous waste storage facility and strictly follows electronic tracking for hazardous waste disposal [153]. - The company adheres to various environmental standards for air and water pollutants, ensuring compliance with industry regulations [153]. - The company achieved an A-level performance rating in environmental management from Zhejiang Province in 2024 [158]. - The company emphasizes a green development philosophy, focusing on source reduction, process control, and end treatment of waste [155]. Corporate Governance - The company maintains a complete and independent business system, ensuring no interference from controlling shareholders [121]. - The company has a robust organizational structure with independent operation of its internal governance bodies [121]. - The management team includes experienced professionals, with the current general manager, Ma Huanzheng, having been with the company since 2000 [123]. - The company has a structured decision-making process for determining the remuneration of its board members and executives [128]. - The board of directors held a total of 8 meetings during the reporting period, with all members actively participating [131]. Financial Management - The company has maintained effective internal control over financial reporting as of December 31, 2024, according to the internal control audit report [151]. - The internal control audit report received a standard unqualified opinion, confirming alignment with the self-evaluation report [151]. - The company has implemented a continuous optimization of its internal control management system to enhance risk prevention capabilities [150]. - The company has established measures to ensure compliance with public commitments made by its controlling shareholders and management personnel [166]. Employee Management - The company is committed to improving employee salary levels and welfare, contributing to rural revitalization and common prosperity [161]. - The total number of employees at the end of the reporting period is 1,021, with 211 in the parent company and 810 in major subsidiaries [138]. - The professional composition includes 567 production personnel, 51 sales personnel, 229 technical personnel, 60 financial personnel, and 114 administrative personnel [138]. - The company has established a comprehensive training system to enhance employee skills and align with strategic goals [140]. Subsidiaries and Investments - The company established Zhejiang Garden Biomedicine Engineering Co., Ltd. with a registered capital of RMB 200 million, holding a 90% stake [176]. - The company has not sold any major assets during the reporting period [101]. - The actual amount of related party transactions during the reporting period was CNY 114.82 million, while the approved transaction amount for 2024 is expected to be CNY 160 million [183].