HISUN(SH:600267)2019-04-22 16:00Financial Performance - In 2018, the net profit attributable to shareholders of the parent company was -492,473,970.48 RMB, with the parent company achieving a net profit of -194,068,075.28 RMB[4] - The total distributable profit for shareholders in 2018, after deducting cash dividends of 48,276,592.1 RMB distributed in June 2018, was 1,077,388,406.10 RMB[4] - The company plans not to distribute cash dividends, issue bonus shares, or transfer capital reserves to increase share capital for the year due to the negative net profit[4] - The company reported a significant loss in 2018, which has implications for its future operational and financial strategies[4] - The company's operating revenue for 2018 was approximately ¥10.19 billion, a decrease of 3.63% compared to ¥10.57 billion in 2017[19] - The net profit attributable to shareholders was a loss of approximately ¥492.47 million, a significant decline of 3,730.15% from a profit of ¥13.57 million in 2017[19] - The basic earnings per share for 2018 was -¥0.51, a decrease of 5,200% from ¥0.01 in 2017[20] - The weighted average return on equity was -7.64%, a decrease of 7.84 percentage points from 0.20% in 2017[20] - The company reported a significant loss of approximately ¥499.59 million in Q4 2018, attributed to increased operational costs and halted R&D projects[22] - The net profit attributable to the parent company was -492 million yuan, indicating a loss driven by declining gross margins in raw material sales and halted R&D projects[40] - The net profit attributable to the parent company was -492 million yuan, marking a significant decline, and the company has experienced four consecutive years of losses after deducting non-recurring gains and losses, with a net profit of -612 million yuan[54] Research and Development - The company invested 1.034 billion yuan in R&D, accounting for 10.15% of sales revenue, which is a 22.47% increase year-on-year[57] - During the reporting period, the company filed 68 patent applications, including 62 invention patents, showcasing its R&D capabilities[46] - The company applied for 68 patents during the reporting period, including 62 invention patents, and received 48 patent grants, all of which were invention patents[57] - The company is currently in the clinical trial phase for its recombinant human-mouse chimeric anti-CD20 monoclonal antibody injection, with a cumulative R&D investment of 9,962.98 million RMB[145] - The company is actively pursuing the development of new drugs, including HS005, which is in Phase III and has a market potential of about ¥10.08 billion[147] - The company has several products in clinical trials, including HS629, which is in Phase I with a market potential of approximately ¥5.42 billion[147] - The company is focusing on high-value, high-tech pharmaceutical products, acknowledging the long development cycles and associated risks[147] - The company has received temporary approval for several products under the ANDA process, indicating a strategic move to enter the U.S. market[149] Market and Sales Strategy - The company is expanding its international market presence, particularly in the sales of its proprietary formulations[30] - The company has established a comprehensive sales network covering over 4,500 hospitals across 31 provinces, enhancing its market presence[38] - The company aims to diversify profit sources beyond a few entities like Hanhui Pharmaceutical and actively expand its sales network[67] - The company plans to enhance sales revenue, control costs, and improve operational efficiency to support long-term growth[63] - The company plans to expand its market presence and enhance product offerings through new product development and strategic partnerships[77] - The company is transitioning its marketing and production strategies in response to the 4+7 procurement policy, focusing on digital and channel marketing for generic drugs[112] Operational Efficiency - The company’s operating costs decreased by 18.06% to 5.931 billion yuan, while sales expenses increased by 57.22% to 2.514 billion yuan[69] - The company’s total procurement volume for "Amlodipine Atorvastatin Calcium Tablets" reached 8,627,021 units[164] - The total sales expenses amounted to RMB 2,513,608,781.02, with market promotion expenses accounting for 71.69% of the total sales expenses[169] - The company’s sales expenses as a percentage of operating income was 24.67%[172] - The company’s sales expenses were significantly higher compared to peers, with Tianzhili's sales expenses at RMB 253,486.11 and a sales expense ratio of 15.75%[169] Regulatory and Compliance - The audit report for 2018 was issued by Tianjian Accounting Firm, confirming the accuracy and completeness of the financial report[4] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[4] - The company has not violated regulatory decision-making procedures in providing guarantees[4] - The company is committed to advancing its R&D projects in compliance with national regulations, highlighting the importance of regulatory approvals in the pharmaceutical industry[147] Environmental and Social Responsibility - The company’s EHS investment totaled 107.94 million yuan in 2018, with no major safety or environmental incidents reported[61] - The company has enhanced its environmental management system and improved pollution control measures to comply with stricter environmental regulations[122] Future Outlook - The company reported a total revenue target of 11.5 billion CNY for 2019, representing a year-on-year increase of 12.89%[199] - The company aims to optimize its product portfolio and R&D pipeline to improve efficiency and market conversion success rates[195] - The company plans to focus on core business segments such as API, formulations, innovative drugs, and biopharmaceuticals in the next 1-2 years[195] - The company intends to establish strategic alliances in academia and industry to accelerate the transition from generic to innovative drugs, focusing on areas with significant medical value and market potential[196]