HISOAR(002099)2025-04-28 10:20Financial Performance - The company's operating revenue for 2024 was CNY 1,938,465,657.86, a decrease of 10.75% compared to CNY 2,171,886,869.45 in 2023[25]. - The net profit attributable to shareholders for 2024 was CNY -330,267,195.37, showing an improvement of 21.38% from CNY -420,055,857.71 in 2023[25]. - The net cash flow from operating activities decreased by 27.31% to CNY 174,834,870.57 in 2024, down from CNY 240,536,591.52 in 2023[25]. - The basic earnings per share for 2024 was CNY -0.21, an improvement of 19.23% from CNY -0.26 in 2023[25]. - Total assets at the end of 2024 were CNY 7,456,044,106.37, a decrease of 0.85% from CNY 7,520,092,953.12 at the end of 2023[25]. - The net assets attributable to shareholders decreased by 8.33% to CNY 5,139,071,751.73 at the end of 2024, down from CNY 5,606,352,298.36 at the end of 2023[25]. - The company's revenue after deducting certain amounts was CNY 1,922,031,621.40 in 2024, compared to CNY 2,162,748,448.50 in 2023[26]. - The company reported a weighted average return on equity of -6.19% for 2024, an improvement from -7.18% in 2023[25]. - In 2024, the company achieved revenue of 1.938 billion yuan, a year-on-year decrease of 10.75%[64]. - The net profit attributable to shareholders was -330 million yuan, an increase of 21.38% year-on-year, while the net profit after deducting non-recurring gains and losses was -340 million yuan, a slight increase of 0.11%[64]. Corporate Governance - The board of directors and management confirm the accuracy and completeness of the financial report[4]. - The company adheres to strict information disclosure practices, ensuring all investors have equal access to information[128]. - The company has established a value management system and disclosed a valuation enhancement plan[124]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, organization, and business operations[129]. - The company has a complete and independent business structure, with no competition with its controlling shareholder[130]. - The board of directors includes four specialized committees to provide scientific and professional advice for decision-making[127]. - The company has implemented a performance assessment mechanism linking senior management remuneration to company performance[144]. - The board approved the annual financial report and profit distribution plan for 2023[146]. - The company has established a comprehensive quality management system in accordance with cGMP standards, with multiple production sites passing inspections from various international regulatory bodies[58]. Market Position and Strategy - The company is a key supplier in the global penem industry, with a comprehensive product line including meropenem and imipenem, and has established a competitive advantage in the high-end market[38]. - The company has established partnerships with global pharmaceutical giants like Pfizer and Meiji, enhancing its position in the CMO/CDMO business[41]. - The pharmaceutical industry is expected to see a growth in demand due to the optimization of centralized procurement policies, with a forecasted increase in hospital treatment needs[44]. - The market for chemical raw materials is projected to exceed ¥680 billion by 2028, indicating a robust growth trajectory for the industry[45]. - The company is actively developing a pipeline of new products, including ophthalmic medications and cardiovascular drugs, to capture emerging market opportunities[38]. - The company aims to enhance its competitive strength by advancing its integrated strategy of intermediates, active pharmaceutical ingredients, and formulations, while expanding its global market presence[118]. - The company is focused on developing new technologies and products to drive future growth[135]. - The company plans to expand its market presence and enhance its product offerings in the upcoming fiscal year[135]. Research and Development - The company has developed 16 patents and achieved international advanced levels in product technology, particularly in the production of reactive dyes[53]. - The company is investing in research and development, with over 20 major scientific projects funded by national grants[141]. - Research and development expenses increased by 12.01% to ¥129,445,758.14 in 2024 from ¥115,564,760.64 in 2023[89]. - The company has 353 R&D personnel in 2024, representing a 3.22% increase from 342 in 2023[90]. - The company has developed innovative drugs that have entered clinical phases I and II, with over 40 patents granted in the US, Europe, and China[137]. Environmental and Social Responsibility - The company has implemented strict compliance with environmental protection laws and industry standards in its operations[171]. - The company has a comprehensive emergency response plan for environmental incidents, ensuring timely and effective management of such events[177]. - The company has invested in improving environmental protection infrastructure, leading to better control of pollutant emissions[178]. - The company has a dedicated team for daily environmental monitoring and analysis, ensuring stable operation of pollution control facilities[178]. - The company has committed to paying environmental protection taxes in accordance with relevant laws and regulations[178]. - The company actively recruited 12 workers from economically challenged areas, contributing to rural revitalization efforts[181]. Financial Management - The company has engaged Tianjian Accounting Firm for auditing services[25]. - The company has implemented various employee incentive programs, including stock option plans and employee shareholding plans, to enhance team motivation and collaboration[63]. - The company has received environmental impact assessment approvals for several projects, indicating ongoing compliance with regulatory requirements[55]. - The company has established a derivative investment management system to control trading risks and ensure compliance with internal procedures[104]. - The company has taken measures to avoid or minimize related party transactions with its subsidiaries[184]. Operational Challenges - The company has experienced significant personnel turnover in key technical positions, leading to concerns about outdated core technologies[167]. - The company has reported a backlog of inventory and inefficiencies in the use of long-term assets, indicating potential operational challenges[167]. - The company faces risks from international trade dynamics, including protectionism and regulatory changes that may impact drug registration and exports[120]. - The company is monitoring exchange rate fluctuations, particularly the impact of USD settlements on profitability, and is implementing risk management strategies[121]. Shareholder Engagement - The company held a conference call on April 29, 2024, to discuss its operational performance with institutional investors[123]. - The company reported a 41.41% participation rate in the annual general meeting held on May 20, 2024[131]. - The first extraordinary general meeting of 2024 had a participation rate of 41.95% and was held on November 15, 2024[131]. - The company has conducted various investor communication activities to discuss its operational status[123]. Compliance and Internal Control - The internal control system is deemed effective and complies with national laws and regulations, ensuring good control and prevention in various operational processes[163]. - The company has not reported any major defects in its internal control system during the reporting period[164]. - The company has not disclosed any major defects in its financial reporting, with zero instances reported[168]. - The company has not identified any significant deficiencies in non-financial reporting controls[168].