SHYNDEC(SH:600420)2021-03-25 16:00Financial Performance - The company achieved a net profit attributable to shareholders of the parent company of CNY 648,792,627.72 in 2020, with distributable profits for shareholders amounting to CNY 1,735,204,116.14[7] - The company's operating revenue for 2020 was approximately ¥12.56 billion, representing a year-over-year increase of 2.93% compared to ¥12.20 billion in 2019[27] - Net profit attributable to shareholders decreased by 1.15% to approximately ¥648.79 million in 2020 from ¥656.37 million in 2019[27] - The net cash flow from operating activities increased by 22.84% to approximately ¥1.56 billion in 2020, compared to ¥1.27 billion in 2019[27] - The company's total assets grew by 3.47% to approximately ¥18.25 billion at the end of 2020, up from ¥17.64 billion at the end of 2019[27] - Basic earnings per share increased by 1.20% to ¥0.6318 in 2020, while diluted earnings per share decreased by 3.49% to ¥0.5501[27] - The company achieved operating revenue of CNY 12,556.28 million, a year-on-year increase of 2.93%[42] - Net profit attributable to shareholders was CNY 648.79 million, a decrease of 1.15% year-on-year[42] Dividend Distribution - The proposed cash dividend is CNY 1.00 per share (including tax), based on the total share capital on the dividend distribution date[7] - The company achieved a net profit attributable to shareholders of 648,792,627.72 RMB in 2020, with a cash dividend payout ratio of 15.83%[148] - The board emphasizes the importance of reinvesting retained earnings into R&D and marketing to enhance long-term growth and shareholder returns[145] - The independent directors support the dividend distribution plan, stating it aligns with the company's financial health and future funding needs[145] - The cumulative cash dividend over the last three years is expected to be no less than 311,013,511.20 RMB, representing 46.40% of the average distributable profit during this period[148] Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[9] - The company emphasizes the importance of understanding the risks associated with forward-looking statements in the report[8] - The company is committed to enhancing quality control and risk management systems, implementing a comprehensive risk prevention framework, and improving product traceability and quality management practices[142] - The company anticipates facing risks from industry policies, market competition, and procurement management, and will strengthen compliance management and adjust operational strategies accordingly[139] Research and Development - The company reported a significant increase in R&D expenses in the fourth quarter, which rose by 84.24% compared to the average of the first three quarters[30] - The company completed 83 consistency evaluation projects, with 8 projects passing clinical trial equivalence (BE) filing and 10 projects submitted for approval[52] - The company obtained 25 new authorized patents, including 15 invention patents during the reporting period[52] - The total R&D investment for the period amounted to ¥482,153,621.47, representing 3.84% of the operating revenue[72] - The company invested a total of ¥482 million in R&D during the reporting period, focusing on five major therapeutic areas[102] - The company is focusing on the development of generic drug consistency evaluations and new product R&D, with a strategic shift towards independent innovation[113] Market and Sales Performance - The company experienced a notable cash flow slowdown in the first quarter due to the impact of the COVID-19 pandemic, resulting in a negative cash flow of approximately ¥336.71 million[30] - The overseas market revenue increased by 12.44% to CNY 2.30 billion, indicating successful market expansion efforts[59] - The sales revenue of raw materials and intermediates increased by 16.11%, with specific product sales growth of 43.46% for 7-ACA, 40.50% for penicillin industrial potassium salt, and 88.58% for azithromycin[42] - The sales revenue of formulation products decreased by 3.58%, with a 4.55 percentage point drop in their proportion of total sales revenue[42] - The company adjusted its marketing strategy, leading to a notable increase in sales revenue in the cardiovascular field[59] Corporate Governance - The board of directors and supervisory board members confirmed the accuracy and completeness of the annual report[4] - The company has a standard unqualified audit report issued by Tianjian Accounting Firm[6] - The company committed to strictly adhere to the regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange, ensuring equal exercise of shareholder rights and obligations without seeking improper benefits[154] Social Responsibility - The company conducted a total of 10 poverty alleviation projects during the year, with a total investment of CNY 936,400[198] - The company has been actively fulfilling its social responsibility in poverty alleviation efforts[198] - The company donated CNY 143,200 to other public welfare and charitable causes[198] Compliance and Related Party Transactions - The company will minimize related party transactions with Modern Pharmaceutical and ensure that any necessary transactions are conducted at fair market prices[157] - The company guarantees to maintain the independence of Modern Pharmaceutical in terms of personnel, assets, finance, and operations, ensuring no improper benefits are sought[157] - The company reported a commitment to minimize related party transactions with its subsidiaries, ensuring fair pricing based on independent third-party transactions[163]