Financial Performance - The company achieved a revenue of RMB 3.2235 billion in 2021, representing a 21.4% increase compared to the previous year[13]. - Net profit reached RMB 556.674 million, marking an 88.7% growth year-over-year[15]. - In 2021, the company recorded a sales increase of 21.4% year-on-year, with net profit reaching RMB 557 million, an increase of 88.7% compared to the previous year[30]. - The gross profit margin for the company in 2021 was 74.8%, slightly down from 74.9% in the previous year[30]. - The net profit margin improved from 11.1% last year to 17.3%, with earnings per share increasing by 89.7% to RMB 0.74[30]. - The overall gross profit margin for the group was 74.8%, slightly down from 74.9% in the previous year[53]. - The group achieved a total revenue of RMB 5,000,000,000 in 2021, representing a 21.4% increase compared to the previous year[51]. - The revenue from injection products was approximately RMB 1,339,241,000, an increase of about 21.5%, accounting for 41.5% of total revenue[51]. - Other income included government subsidies of RMB 79,023,000, up from RMB 74,988,000 in the previous year[54]. Sales and Market Development - The company completed online sales of RMB 190.5 million through the internet, nearly 1.3 times higher than the previous year[23]. - The company has strengthened its market coverage and investment in key products, focusing on market, brand, and product innovations[23]. - The sales of the company's proprietary oral products grew by 21.3% in 2021, accounting for 58.5% of total sales[33]. - The sales of traditional Chinese medicine granules increased by 24.5% year-on-year, contributing RMB 692,565 thousand to total sales[32]. - The company’s injection products saw a sales increase of 21.5%, marking five consecutive quarters of growth since 2013[32]. - The sales revenue of the coronary heart disease injection product reached RMB 295 million, a significant increase of 71.2% compared to the previous year[32]. - The exclusive oral products of the company recorded a sales revenue of RMB 379,372,000, representing a 96.5% increase compared to the previous year, accounting for 11.8% of total sales[41]. - The company aims to become one of the main suppliers of formula granules in China by 2024, accelerating the filing process in target provinces and expanding its sales team[39]. Research and Development - The company is advancing the clinical progress of "Sailuotong Capsule" Phase III trials and accelerating the development of other innovative traditional Chinese medicines[23]. - The company is conducting a multi-center, randomized, double-blind clinical trial for "Xiaojiean Capsule," which is a unique national medical insurance product[24]. - The group is currently conducting Phase III clinical trials for three exclusive innovative drugs, including "Sailuotong Capsule" targeting vascular dementia and Alzheimer's disease[47][48][49]. - The company has established key innovation platforms in Yunnan Province, including a "Key Laboratory" and "Engineering Research Center" for traditional Chinese medicine[26]. - The company plans to increase the production capacity of traditional Chinese medicine granules to an annual output value of RMB 4 billion by the end of the year[26]. Digital Transformation and Operational Efficiency - The company is actively pursuing digital transformation to enhance its operational efficiency and market competitiveness[23]. - The company plans to expand its internet hospital operations following the approval of its practice registration[23]. - The company’s internet hospital has passed the registration approval, enhancing its online healthcare services and addressing the issue of access to medical resources[42]. Financial Management and Policies - The company adopted a new dividend policy, declaring an interim dividend of RMB 0.21 per share for the year ending December 31, 2022[30]. - The mid-term dividend is set at RMB 0.39 per share, totaling RMB 294,606,000, distributed to shareholders on September 28, 2021[89]. - The company has adopted a new dividend policy, which will consider financial performance, reasonable returns for investors, future development needs, and general market conditions[90]. - As of December 31, 2021, the reserves available for distribution to shareholders amounted to RMB 874,930,000, down from RMB 1,125,273,000 in 2020[93]. Corporate Governance - The board consists of four executive directors, three independent non-executive directors, and one non-executive director as of December 31, 2021[149]. - The board held four meetings during the year to review the group's financial performance and significant issues[150]. - The company is committed to high-quality corporate governance practices to safeguard shareholder interests[147]. - The board will continuously review its structure and consider appropriate adjustments when necessary[154]. - The company emphasizes diversity in its board composition, with two out of eight members being female[165]. - The nomination committee will regularly discuss measurable goals for gender diversity and recommend their adoption to the board[165]. Risk Management - The board of directors is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems[177]. - The internal audit department assessed the effectiveness of the risk management and internal control systems, with no significant deficiencies identified[179]. - The company faces risks related to product liability due to the lack of mandatory insurance for drug production and distribution in China[85]. - The company is closely monitoring regulatory changes in China's healthcare and pharmaceutical sectors, which may impact operations[87]. Employee Relations and Compensation - The group offers competitive compensation and benefits to employees, including medical benefits, social insurance, and stock incentive plans[84]. - The management team regularly reviews employee compensation to ensure alignment with market standards[84]. - The company has a strong focus on employee retention and building good employee relations through its management policies and work environment[84]. - The remuneration policy for employees is determined based on performance, qualifications, and capabilities[161]. Environmental and Social Responsibility - The company has a commitment to creating a successful business without compromising the environment, aiming for sustainable operations[83]. - The group has implemented various environmental laws and regulations, including the Environmental Protection Law and the Water Pollution Prevention Law of the People's Republic of China[83]. - The company has established a framework for corporate social responsibility, focusing on environmental, social, and governance matters[172].
神威药业(02877) - 2021 - 年度财报