GINWA(SH:600080)2021-04-22 16:00Financial Performance - In 2020, the company's operating revenue was CNY 668,180,334.76, a decrease of 11.45% compared to CNY 754,544,013.66 in 2019[20] - The net profit attributable to shareholders was CNY 37,738,016.78, representing a 45.69% increase from CNY 25,902,673.81 in the previous year[20] - The net profit after deducting non-recurring gains and losses was CNY 25,922,513.13, up 93.67% from CNY 13,385,086.97 in 2019[20] - The basic earnings per share for 2020 was CNY 0.1059, an increase of 45.67% from CNY 0.0727 in 2019[21] - The total assets at the end of 2020 were CNY 1,958,574,300.85, a decrease of 1.07% from CNY 1,979,851,640.25 at the end of 2019[20] - The company's net cash flow from operating activities was CNY 46,558,370.18, down 58.22% from CNY 111,445,504.03 in 2019[20] - The weighted average return on equity increased to 2.20% in 2020, up from 1.49% in 2019, an increase of 0.71 percentage points[21] - The company reported a net asset attributable to shareholders of CNY 1,721,338,898.70 at the end of 2020, a slight increase of 0.37% from CNY 1,714,985,578.65 at the end of 2019[20] Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.90 per 10 shares, totaling CNY 33,594,325.65, which accounts for 89.02% of the net profit attributable to shareholders[5] - The company declared a cash dividend of 0.30 RMB per 10 shares, totaling 11,198,108.55 RMB, which represents 43.23% of the net profit attributable to shareholders for the year 2019[121] - In 2020, the company distributed a cash dividend of 1.00 RMB per 10 shares, amounting to 33,594,325.65 RMB, which accounted for 89.02% of the net profit attributable to shareholders[123] Business Operations - The company exited the pharmaceutical distribution business in November 2020 to focus resources on pharmaceutical manufacturing[27] - The company's main business includes the R&D, production, and sales of various pharmaceutical products, including chemical drugs and traditional Chinese medicine[26] - The company plans to continue expanding its market presence and enhancing its product offerings in the pharmaceutical sector[26] - The company has focused on product development in the orthopedic, immunology, and pediatrics sectors, with its leading product, Jintian Ge capsules, gaining significant market recognition[39] - The company has implemented a marketing strategy that includes online courses and self-media platforms to enhance brand academic image and customer engagement during the pandemic[45] Research and Development - Research and development expenses increased by 10.46% to CNY 20.07 million, indicating a commitment to innovation despite overall revenue decline[53] - The company’s R&D investment for the reporting period was CNY 24.87 million, accounting for 3.72% of total revenue and 4.23% of parent company revenue[98] - The company plans to strengthen collaboration with external R&D institutions and increase R&D investment to meet future development needs[98] - The company has ongoing R&D projects aimed at improving quality standards and expanding indications for its core products[92] - The company has strengthened R&D investments and is conducting multiple high-standard post-marketing research projects, focusing on drug mechanisms and clinical efficacy[84] Market Position and Product Performance - The main product, Jintian Ge capsules, has established a competitive advantage in the orthopedic clinical market, contributing to stable revenue growth[26] - The orthopedic product line generated revenue of CNY 475.48 million, with a gross margin of 87.57%, despite an 8.80% decrease in revenue year-on-year[56] - The company's leading product, Jintian Ge capsules, holds a market share of 40.53% in the top ten traditional Chinese medicine products for osteoporosis in key urban public hospitals[84] - The immune category products, including Transfer Factor Capsule, reported revenue of ¥56.45 million, with a gross margin of 54.40%, reflecting a year-over-year increase of 10.15%[91] - The orthopedic product line accounted for 80.89% of the company's total pharmaceutical revenue, indicating strong market profitability[91] Financial Management and Investments - The company has engaged in multiple entrusted financial management projects with various banks, with expected annualized returns ranging from 1.12% to 8.14%[144] - The company has no plans for impairment provisions related to entrusted financial management[144] - The company has entrusted cash asset management with a total amount of 39,043.06 million RMB, with an outstanding balance of 30,023.13 million RMB[142] - The company has no overdue amounts in its entrusted financial management[142] - The company has not provided guarantees for shareholders, actual controllers, or related parties[140] Corporate Governance and Compliance - The company received a warning and fines totaling CNY 300,000 from the China Securities Regulatory Commission due to violations of information disclosure regulations[134] - The company has not faced any risks of suspension or termination of listing during the reporting period[132] - The company has fully resolved the issues related to the occupation of funds and pledged deposits by controlling shareholders as of June 29, 2020[128] - The company engaged Xinyong Zhonghe Accounting Firm for auditing services, with a remuneration of 65,000 RMB for the year[131] - The company appointed ShineWing Certified Public Accountants as the financial and internal control audit institution for the year 2020[132] Social Responsibility and Environmental Management - The company donated 30,000 RMB to support poverty alleviation efforts in the rural area of Shaanxi Province, specifically targeting the Niuyanghe Village in Shiquan County[156] - The company has established a volunteer team to engage in various charitable activities, emphasizing its commitment to social welfare and community support[162] - The company has implemented a comprehensive environmental management system, ensuring compliance with pollution discharge standards and maintaining good operational conditions for its environmental facilities[164] - In 2020, the company reported a wastewater discharge with a CODcr concentration of 16 mg/L, which is compliant with the relevant discharge standards[166] - The company has developed an emergency response plan for environmental incidents, which has been reviewed and filed with the local environmental authority[167] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,622, an increase from 19,054 at the end of the previous month[171] - The largest shareholder, Jinhua Investment Holding Group Co., Ltd., held 71,447,654 shares, representing 19.14% of total shares, with a decrease of 43,450,000 shares during the reporting period[173] - The second-largest shareholder, Xing Boyue, held 60,147,752 shares, accounting for 16.11% of total shares[173] - The company has no changes in the total number of ordinary shares and share capital structure during the reporting period[170] - The company reported no other significant events or changes related to its shareholders or controlling entities[180] Employee Management and Training - The company employed a total of 676 staff, with 498 in the parent company and 178 in major subsidiaries[195] - The company has established a training plan for 2020 aimed at enhancing management efficiency and quality management systems[197] - The training program includes middle management team development to improve management awareness and tool usage capabilities[197] - The company emphasizes the importance of internal training, with at least 70% of training conducted by management and technical staff[198] - The training materials will cover job responsibilities, operational standards, and emergency measures for each position[200]