ZMC(SH:600216)2023-04-25 16:00Financial Performance - Total revenue for 2022 was CNY 8,115,804,648.33, a decrease of 11.10% compared to 2021[28]. - Net profit attributable to shareholders was CNY 539,570,083.23, down 48.38% from the previous year[28]. - The company reported a net cash flow from operating activities of CNY 520,603,490.03, a decline of 54.20% year-on-year[28]. - The total assets at the end of 2022 were CNY 12,432,616,205.07, a decrease of 0.80% from the previous year[28]. - The net assets attributable to shareholders increased by 5.48% to CNY 9,259,881,857.33[28]. - The overall operating income decreased by 11.10% to CNY 8,115,804,648.33 compared to the previous year[81]. - Basic earnings per share decreased by 48.62% to CNY 0.56 in 2022 from CNY 1.09 in 2021[129]. - Diluted earnings per share also fell by 48.62% to CNY 0.56 in 2022 compared to CNY 1.09 in 2021[129]. - The weighted average return on equity dropped by 6.65 percentage points to 5.99% in 2022 from 12.64% in 2021[129]. Research and Development - R&D expenses totaled CNY 809,279,317.22, accounting for 9.97% of total revenue[17]. - The company applied for 24 patents during the reporting period, including 21 invention patents, and has a total of 686 invention patent applications as of December 31, 2022[48]. - The company reported a total R&D investment of 15,664 million RMB for the anti-Her2-ADC project, which accounted for 1.93% of total revenue, reflecting a decrease of 15.47% compared to the previous year[169]. - The R&D investment for the innovative research on key intermediates of raw materials reached 2,297 million RMB, showing a significant increase of 890.21% compared to the previous year[169]. - The company has a strong focus on ensuring that intangible assets can generate economic benefits, supported by sufficient technical and financial resources[158]. - The company follows a research and development accounting policy where expenses during the research phase are recognized in the current period, while development phase expenses can be recognized as intangible assets if certain criteria are met[158]. Sales and Marketing - The company's sales revenue for life nutrition products reached CNY 384,105.80 million, accounting for 47.33% of total revenue, a year-on-year decrease of 18.91%[75]. - Pharmaceutical manufacturing generated sales of CNY 201,622.05 million, representing 24.84% of total revenue, with a year-on-year decline of 3.00%[75]. - Pharmaceutical commerce achieved sales of CNY 213,660.98 million, making up 26.33% of total revenue, down 4.99% year-on-year[75]. - The company has established a comprehensive marketing network covering over 25,000 pharmacies, achieving effective coverage in all provinces except Tibet[183]. - The company’s marketing strategy emphasizes compliance and efficiency, aiming to enhance product sales through scientific marketing methods[175]. - The company has established long-term partnerships with major pharmaceutical companies for raw material exports, ensuring stable sales channels[182]. Production and Operations - The company is advancing the production of vitamin E precursor projects, achieving self-sufficient production of key raw materials by the end of 2022[47]. - The company has implemented a safety production management system and established a "no waste park" initiative to enhance operational efficiency[45]. - The company is focusing on enhancing its product structure and industry chain layout in response to market challenges[47]. - The company is transitioning to "Industry 4.0" in the pharmaceutical sector, implementing modern and digital control systems in production[68]. - The company has established long-term strategic partnerships with reputable domestic and international distributors, enhancing its marketing network[68]. Market Trends and Challenges - The company has made significant advancements in the vitamin industry, despite challenges such as rising costs and decreased demand in the feed and breeding sectors[51]. - The sales of the main products, such as Vitamin E and A, have declined due to international market conditions and price drops[76]. - The company is actively responding to regulatory changes aimed at accelerating the approval process for innovative drugs, which could positively impact future product launches[135]. Investments and Acquisitions - The total investment amount for the reporting period was 346.30 million RMB, representing an increase of 91.14 million RMB or 35.72% compared to the previous year's investment of 255.16 million RMB[192]. - The company increased its capital in Fangyuanxin Biological by 200 million RMB, raising its registered capital from 50 million RMB to 250 million RMB[192]. - The company acquired 100% equity of Shilitaihe for 6.3 million RMB, completing the transfer of control by May 31, 2022[192]. - The company is focused on expanding its investments in biotechnology and pharmaceuticals, as evidenced by the capital increases in its subsidiaries[192]. - The company is actively pursuing strategic acquisitions to enhance its market position and technological capabilities[192].