ZMC(SH:600216)2020-04-23 16:00Financial Performance - In 2019, Zhejiang Medicine Co., Ltd. reported a net profit attributable to shareholders of the parent company amounting to ¥342,772,695.25, while the net profit of the parent company reached ¥441,724,161.74[7]. - The company's operating revenue for 2019 was ¥7,043,927,618.70, representing a 2.70% increase compared to ¥6,858,741,580.66 in 2018[26]. - The net profit attributable to shareholders for 2019 was ¥342,772,695.25, a decrease of 5.97% from ¥364,549,966.03 in 2018[26]. - The net profit after deducting non-recurring gains and losses was ¥219,819,148.01, down 41.71% from ¥377,124,935.13 in 2018[26]. - The net cash flow from operating activities decreased by 22.88% to ¥447,249,287.45 from ¥579,907,748.59 in 2018[26]. - The basic earnings per share for 2019 was ¥0.36, a decline of 5.26% compared to ¥0.38 in 2018[27]. - The weighted average return on net assets was 4.44%, down 0.43 percentage points from 4.87% in 2018[27]. - The total assets at the end of 2019 were ¥10,362,361,270.54, an increase of 3.13% from ¥10,047,916,676.64 at the end of 2018[26]. - The net assets attributable to shareholders increased by 2.80% to ¥7,860,815,574.04 from ¥7,646,790,331.10 at the end of 2018[26]. - The company reported a net loss of ¥17,369,655.67 in the fourth quarter of 2019, contrasting with profits in the previous quarters[30]. Dividend Distribution - The company plans to distribute a cash dividend of ¥10 per 10 shares, totaling ¥958,300,500, based on a total share capital of 965,128,000 shares as of December 31, 2019[7]. - In 2019, the company plans to distribute a cash dividend of 10 RMB per 10 shares, amounting to 958,300,500 RMB, which represents 279.57% of the net profit attributable to ordinary shareholders[179]. - The company reported a net profit attributable to ordinary shareholders of 364,549,966.03 RMB for 2018, with a dividend payout ratio of 39.44%[179]. - The company has maintained its cash dividend policy without adjustments during the reporting period[178]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[182]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[11]. - The company has a robust plan for future development, although specific commitments are not guaranteed, highlighting the importance of investor awareness regarding potential risks[8]. - The company is facing potential risks including policy changes in the pharmaceutical industry, which could impact competitiveness and pricing strategies[172]. Compliance and Transparency - Zhejiang Medicine has committed to maintaining transparency and accuracy in its financial reporting, as confirmed by the standard unqualified audit report issued by Tianjian Accounting Firm[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties during the reporting period[9]. - The company has not disclosed any major related party transactions during the reporting period[196]. - The company has not faced any risks of suspension or termination of listing during the reporting period[191]. Research and Development - The company has established a supplier evaluation system and quality control for raw materials, ensuring compliance with FDA and TGA standards[39]. - The company has 37 new drug projects under research, with 5 in clinical research or BE stage and 8 submitted for production[53]. - R&D expenses increased by 40.08% to CNY 450.42 million compared to the previous year[61]. - The company has submitted 17 projects for consistency evaluation, with 3 oral solid dosage forms and 8 injectable products[55]. - The company has several key R&D projects, including Miglitol tablets with a cumulative R&D investment of 1,400 million RMB, currently under professional review[124]. - The company is actively developing new formulations, with a notable project being the new formulation of Miglitol and progesterone, which has seen a 35.19% increase in investment[123]. - The company’s R&D investment is higher than the industry average of 33,564.06 million RMB, indicating a strong commitment to innovation[123]. Market Performance - The company primarily exports pharmaceutical raw materials, with a focus on self-operated exports, while a small portion is exported through trading companies[40]. - The company ranks 53rd in the 2018 China Pharmaceutical Industry Top 100 list and 8th in the 2019 Zhejiang Province High-tech Enterprises in the field of biomedicine and new pharmaceutical technology[44]. - The company has established a comprehensive marketing network with a professional sales team and established long-term strategic partnerships with reputable distributors[49]. - The company’s total revenue from domestic sales was approximately ¥5.24 billion, with a gross margin of 46.32%, showing an increase of 0.24 percentage points year-over-year[65]. - The total revenue from foreign sales was approximately ¥1.79 billion, with a gross margin of 24.90%, reflecting a decrease of 6.75 percentage points year-over-year[65]. Environmental and Social Responsibility - The company has been recognized as a "demonstration enterprise for environmental protection" in Zhejiang Province and operates a "zero direct discharge" wastewater zone[52]. - The company is actively adapting to stricter environmental regulations by implementing comprehensive waste management and pollution reduction strategies[90]. Corporate Structure and Investments - The company acquired 100% equity in Zhejiang Laiyi Biological Technology Co., Ltd. for 8.25 million, making it a wholly-owned subsidiary with a registered capital of 16.5 million[154]. - The company established a wholly-owned subsidiary, Zhejiang Keming Biological Medicine Co., Ltd., with a registered capital of 10 million in December 2019[158]. - The company holds an 80% equity stake in Shaoxing Shilitaihe Technology Co., Ltd., which was established with a registered capital of 2 million[154]. - The company has a 40% equity stake in Zhejiang Sodium Innovation Energy Co., Ltd., which focuses on new energy battery technology[154]. - The company established a wholly-owned subsidiary, NOVOCODEX, INC., in the United States with a registered capital of 300 million USD in October 2019[158]. Financial Management - The company has engaged in various wealth management activities, including investments in bank wealth management products totaling 154.35 million yuan, trust products totaling 200 million yuan, and private equity funds totaling 58.97 million yuan[199]. - There were no overdue amounts in the wealth management products, indicating effective management of financial assets[199]. - The company reported a significant increase in cash flow from investment activities, with cash received from the sale of stocks and funds rising by 426.43% to approximately 175.35 million[80]. - The company’s financial expenses decreased significantly by 138.21%, primarily due to increased foreign exchange gains[78].