ZHONGHENG GROUP(SH:600252)2025-03-28 15:20Financial Performance - In 2024, the company reported a net profit of -551,020,377.35 CNY, with a net profit attributable to shareholders of -376,979,146.18 CNY, marking a significant decline compared to the previous year's profit of 84,308,789.04 CNY, a decrease of 547.14%[6]. - The company's operating revenue for 2024 was 2,270,823,188.76 CNY, representing a 26.67% decrease from 3,096,542,053.05 CNY in 2023[23]. - The net profit attributable to shareholders decreased by 547.14%, primarily due to a decline in sales and prices of high-margin core products[25]. - Basic earnings per share decreased by 554.88% to -0.1119 CNY from 0.0246 CNY in the previous year[24]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of -330,761,013.20 CNY in 2024, a decline of 1,555.20% from the previous year[23]. - The total profit for the period was -508 million RMB, with a net profit attributable to shareholders of -377 million RMB[69]. - The company reported a significant increase in credit impairment losses, which rose by 256.14% to -51.89 million RMB[71]. - The loss attributable to minority shareholders increased by 223.17% to -174 million RMB, primarily due to increased losses from subsidiaries[71]. Cash Flow and Assets - The net cash flow from operating activities increased by 18.46% to 477,427,055.13 CNY in 2024, compared to 403,025,145.87 CNY in 2023[23]. - Cash and cash equivalents at the end of the period were 4.05 billion yuan, representing 36.94% of total assets, an increase from 2.96 billion yuan (25.41%) in the previous year[87]. - The total assets of the company decreased by 5.89% to 10,979,027,992.83 CNY at the end of 2024, down from 11,665,960,096.15 CNY at the end of 2023[23]. - The company reported a total fair value measurement balance of approximately RMB 1.39 billion at the end of the period, down from RMB 2.07 billion at the beginning, reflecting a decrease of RMB 679 million[30]. Shareholder Actions - The company repurchased a total of 122,928,437 shares in 2024, with a total expenditure of 279,110,029.03 CNY, and subsequently canceled 81,952,291 shares[6]. - The company plans not to distribute cash dividends or issue new shares in 2024, following the share repurchase[7]. - The total cash dividend amount (including tax) for the recent fiscal year was 279,110,029.03 RMB, which includes the amount used for share repurchase[193]. - The cumulative cash dividend amount over the last three fiscal years was 68,742,787.58 RMB, while the cumulative amount for share repurchase and cancellation was 186,073,351.93 RMB[195]. Market and Product Performance - Revenue from core cardiovascular products dropped by 31.07% year-on-year, influenced by the pharmaceutical industry's environment[25]. - The pharmaceutical segment generated revenue of 1.73 billion RMB, down 33.97% year-on-year, with a gross margin of 48.87%[73]. - The cardiovascular medication segment saw a revenue decline of 68.92%, with a gross margin of 73.36%[73]. - The company achieved a 237.80% year-on-year increase in sales revenue through a new internet marketing model for the "Fangao" product[33]. - The health food segment expanded market coverage, with sales revenue from the "Guizhi" product increasing by 710% year-on-year, and overall sales revenue from pharmacy channels growing by 81.85%[33]. Research and Development - The company is focusing on R&D in the pharmaceutical sector, with plans to introduce innovative traditional Chinese medicine products and expand into chronic kidney disease treatment markets[49]. - The company has established a pipeline of 11 innovative traditional Chinese medicine products, including the Class 1 innovative drug "Sanqi Granules" which has completed pharmaceutical research[103]. - The company’s R&D investment for 2024 is 147 million RMB, a decrease of 11.74% compared to the previous year[114]. - The company has a strong commitment to research and development, with ongoing projects aimed at addressing chronic diseases and improving patient outcomes[107]. Governance and Compliance - The company has implemented a comprehensive internal control system covering eight major modules, enhancing governance effectiveness and risk management[38]. - The company received a B-level rating for information disclosure from the stock exchange in 2024, reflecting its commitment to transparency[38]. - The board of directors held 15 meetings during the reporting period, approving 72 resolutions, ensuring effective governance and decision-making[154]. - The company maintains a robust internal control management system to protect the rights of all shareholders and ensure compliance with relevant laws and regulations[153]. Strategic Initiatives - The company is actively exploring new transformation goals amid challenging market conditions, focusing on sales-driven, investment-led, and research-supported development strategies[33]. - The company plans to enhance its investment in traditional Chinese medicine technology research and development, aiming to integrate advanced technologies like AI and big data into its operations[139]. - The company aims to optimize its industrial structure and enhance core competitiveness through technological innovation and business expansion[139]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million yuan allocated for potential deals[162].