ZHONGHENG GROUP(SH:600252)2019-04-02 16:00Financial Performance - In 2018, Guangxi Wuzhou Zhongheng Group achieved a net profit of ¥613,364,514.58, with a net profit attributable to shareholders of ¥613,351,971.95[7]. - The company proposed a cash dividend of ¥0.60 per 10 shares, totaling a distribution of ¥208,506,428.82[7]. - The actual distributable profit for 2018 was ¥1,801,282,839.96, with the parent company's distributable profit amounting to ¥310,206,746.44[7]. - The company's operating revenue for 2018 was CNY 3,298,765,283.60, representing a 61.10% increase compared to CNY 2,047,709,276.64 in 2017[25]. - The net profit attributable to shareholders for 2018 was CNY 613,351,971.95, a slight increase of 1.39% from CNY 604,914,988.18 in 2017[25]. - The net profit after deducting non-recurring gains and losses decreased by 14.88% to CNY 513,816,585.15 in 2018 from CNY 603,656,507.28 in 2017[25]. - The company's total assets increased by 5.48% to CNY 7,239,743,402.09 at the end of 2018, up from CNY 6,863,591,619.73 at the end of 2017[25]. - The basic earnings per share for 2018 was CNY 0.18, a 5.88% increase from CNY 0.17 in 2017[27]. - The weighted average return on equity for 2018 was 10.65%, a decrease of 0.43 percentage points from 11.08% in 2017[27]. - The net cash flow from operating activities for 2018 was CNY 853,399,912.07, down 4.46% from CNY 893,214,443.23 in 2017[25]. Operational Highlights - There were no significant operational risks that impacted the company during the reporting period[11]. - The company has committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6]. - The audit report for the fiscal year was issued by Zhongzheng Zhonghuan Accounting Firm, confirming a standard unqualified opinion[6]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[10]. - The board of directors and management have confirmed the authenticity of the annual report's content[4]. - The company will submit the profit distribution proposal for shareholder approval at the upcoming general meeting[8]. Pharmaceutical Segment Performance - The core business of Zhongheng Group is pharmaceutical manufacturing, with a focus on traditional Chinese medicine, producing 309 approved drug varieties, including 135 traditional Chinese medicine formulations and 82 chemical drugs[37]. - The pharmaceutical segment achieved a revenue growth of 12.4% in 2018, with total revenue reaching 24,264.7 billion yuan, while the profit totaled 3,094.2 billion yuan, reflecting a 9.5% increase[43]. - The pharmaceutical manufacturing sector's profit margin was reported at 6.49% in 2018, reflecting a slight increase from the previous year[43]. - The company reported non-recurring gains of CNY 99,535,386.80 in 2018, compared to CNY 1,258,480.90 in 2017[32]. - The company has a strong product portfolio, including 24 exclusive products and 7 national patent products, with its main product, Thrombolytic Injection, targeting cardiovascular diseases[37]. Research and Development - The company has established multiple national and regional research centers, enhancing its R&D capabilities and innovation[67]. - The company has received numerous awards, including being listed among the "Top 100 Chinese Pharmaceutical Industries" and recognized for its social responsibility[74]. - The company has made significant investments in research and development to enhance its product offerings and expand its market presence[142]. - The company is actively involved in the development of new formulations, including "复方土槿皮酊" and "银黄丸"[150]. - The company has applied for 17 invention patents in 2018, with 31 patents granted, including a PCT application that received European patent authorization[158]. Market Strategy and Expansion - The company is in the process of transferring 100% equity of its subsidiary, Zhaoqing Zhongheng Pharmaceutical Co., Ltd., with a minimum transfer price of 889.87 million yuan, aimed at optimizing asset structure[61]. - The company is also transferring 100% equity of its subsidiary, Zhaoqing Zhongheng Shuangqian Industrial Co., Ltd., with a minimum transfer price of 33.12 million yuan, further promoting resource allocation[62]. - The company plans to enhance its talent pool and management training programs to support future growth initiatives[88]. - The company aims to enhance its market presence by leveraging its inclusion in the national essential drug list[136]. - The company is exploring opportunities for mergers and acquisitions to strengthen its market position and diversify its product portfolio[142]. Regulatory and Compliance - The company is committed to complying with new sterile production guidelines to ensure the safety and effectiveness of its products, particularly for its sterile formulations[131]. - The implementation of the "4+7 drug procurement" policy has significantly reduced drug prices, impacting the profitability of companies, especially for unique products[126]. - The company is actively monitoring market trends to align its product development with consumer needs[138]. - The company is focusing on talent system development to support its strategic planning and ensure a solid foundation for growth[195]. - The company recognizes the challenges posed by national medical reform policies, which have led to a slowdown in the pharmaceutical industry[188].