QianJin Pharmaceutical(SH:600479)2021-04-14 16:00Financial Performance - In 2020, the company's operating revenue reached CNY 3,626,966,808, representing a year-on-year increase of 2.89% compared to CNY 3,525,238,122.2 in 2019[21]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 297,071,596.93, a slight increase of 0.94% from CNY 294,313,213.05 in 2019[21]. - The net cash flow from operating activities significantly increased by 248.81% to CNY 542,373,092.5, compared to CNY 155,493,890.87 in the previous year[21]. - As of the end of 2020, the total assets of the company amounted to CNY 4,228,711,385, reflecting a growth of 10.93% from CNY 3,812,172,747.4 at the end of 2019[21]. - The net assets attributable to shareholders of the listed company increased by 4.07% to CNY 2,266,771,588 from CNY 2,178,081,788.2 in 2019[21]. - Basic earnings per share for 2020 was CNY 0.7098, a 0.94% increase from CNY 0.7032 in 2019[23]. - Diluted earnings per share for 2020 was also CNY 0.7098, reflecting the same 0.94% increase compared to 2019[23]. - The weighted average return on equity decreased by 0.55 percentage points to 13.37% in 2020 from 13.92% in 2019[23]. - The company achieved a total profit of approximately 425 million RMB, a year-on-year decrease of 1.19%[44]. - The net profit attributable to shareholders was approximately 297 million RMB, a year-on-year increase of 0.94%[44]. - The company realized a sales scale of approximately 4.34 billion RMB, a year-on-year growth of 3.20%[44]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of CNY 10 per 10 shares, based on a total share capital of 418,507,117 shares as of December 31, 2020[5]. - The company reported a net profit attributable to ordinary shareholders of 297,071,596.93 RMB, with a cash dividend payout ratio of 140.88%[126]. - The total number of common stock shareholders at the end of the reporting period was 36,377, an increase from 36,164 at the end of the previous month[160]. - The largest shareholder, Zhuzhou State-owned Assets Investment Holding Group Co., Ltd., held 119,381,136 shares, representing 28.53% of total shares[162]. - The second-largest shareholder, Chang'an Fund - Everbright Bank - Chang'an Ping An Fortune Jin Asset Management Plan, decreased its holdings by 4,960,000 shares to 10,592,130 shares, accounting for 2.53%[162]. Research and Development - The company holds 388 valid patents, including 139 invention patents, indicating a strong focus on innovation[33]. - Research and development expenses totaled CNY 98,419,993, accounting for 2.71% of total revenue, with 93,466,553 in expensed R&D and 4,953,439 in capitalized R&D[62]. - The company employed 408 R&D personnel, representing 8.29% of the total workforce[62]. - The company’s R&D investment accounted for 2.71% of its revenue, which is lower than the industry average of 4.26%[97]. - The company’s R&D investment in the gynecology product "Fuke Qianjin Tablets/Capsules" was 290.28 million RMB, reflecting a decrease of 64.54% year-on-year[97]. Market and Product Development - The company aims to expand into the women's health sector, with products like Qianjin sanitary napkins and Qianjin ginger tea series being key focus areas[34]. - The company has established a comprehensive pharmaceutical industry chain, including manufacturing, distribution, and traditional Chinese medicine cultivation[34]. - The company has integrated resources to form a new retail marketing department, focusing on online sales through live streaming and community group buying, enhancing the sales of derivative products[36]. - The company has achieved significant growth in the retail market, with products like Yimu Granules and Jiawei Xiaoyao Pills entering the top 20 gynecological products in retail[39]. - The company is focusing on expanding its product line in women's health, with ongoing projects in various therapeutic areas[91]. Risk Management - The company has identified risks related to raw material price fluctuations, drug quality, industry policies, and research and development in its annual report[8]. - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors and advises caution regarding risks[6]. - The company is facing risks related to fluctuations in the prices of traditional Chinese medicinal materials, particularly for Angelica and Codonopsis[120]. Corporate Governance and Compliance - The company has maintained a standard unqualified audit opinion from Tianzhi International Accounting Firm[4]. - The company has no significant litigation or arbitration matters during the reporting period[129]. - The company has not faced any risks of suspension or termination of listing during the reporting period[129]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, linking their income to the company's operational performance[191]. - The company ensured compliance with corporate governance standards, maintaining a governance structure that protects the rights of all shareholders, especially minority shareholders[189]. Social Responsibility and Community Engagement - The company produced over 500,000 masks and delivered emergency medicines worth nearly 100 million RMB during the COVID-19 pandemic[147]. - The company has committed over 20 million RMB to targeted poverty alleviation projects in Lishan Village, benefiting 87 households[148]. - The company has established a comprehensive poverty alleviation strategy focusing on employment, education, and consumption support[143]. - The company has conducted over 670 public lectures under the "Hello Qianjin - Girls' Health China Tour" project, impacting more than 500,000 female participants and investing over 7.5 million yuan by the end of 2020[150]. Environmental Responsibility - The company has two wastewater treatment plants with a total designed capacity of 2,000 tons per day, ensuring compliance with environmental standards[152]. - The company has committed to environmental protection, with no reported cases of exceeding pollutant discharge limits[151]. - The company has developed emergency response plans for environmental incidents, with specific registration numbers for each facility[153]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20%[174]. - New product launches are expected to contribute an additional 300 million in revenue in the upcoming year[174]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 200 million allocated for potential mergers[174]. - The company plans to continue investing in poverty alleviation and support rural revitalization initiatives in 2021[146].