CONBA(SH:600572)2019-04-24 16:00Financial Performance - The net profit attributable to the parent company for 2018 was RMB 803,794,506.60, with a total distributable profit at the end of 2018 amounting to RMB 2,165,483,293.53[8] - The company reported a retained earnings balance of RMB 1,850,357,176.03 carried over from the previous year[8] - The company's operating revenue for 2018 was CNY 6,786,645,292.78, representing a 28.20% increase compared to CNY 5,293,966,778.84 in 2017[29] - The net profit attributable to shareholders for 2018 was CNY 803,794,506.60, an increase of 13.03% from CNY 711,116,240.43 in 2017[29] - The total assets at the end of 2018 were CNY 10,713,404,733.02, a 13.73% increase from CNY 9,420,221,233.95 in 2017[29] - The basic earnings per share for 2018 was CNY 0.30, up 7.14% from CNY 0.28 in 2017[30] - The weighted average return on equity for 2018 was 13.89%, a decrease of 1.99 percentage points from 15.88% in 2017[30] - The company achieved a revenue of 6.787 billion CNY in 2018, representing a year-on-year growth of 28.20%[66] - The net profit attributable to shareholders was 804 million CNY, up 13.03% compared to the previous year[66] Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.5 per 10 shares, totaling RMB 385,505,597.85, after deducting the repurchased shares from the total share capital[8] - The company has committed to maintaining compliance with regulations regarding investor protection and dividend distribution[8] Share Repurchase - The company repurchased 97,282,881 shares for a total amount of RMB 585,017,792.34, excluding transaction fees[8] - The company repurchased a total of 50,451,611 shares, accounting for 1.89% of the total share capital, with a total payment of CNY 311,364,563.44[33] - The company plans to use the repurchased shares for employee stock ownership plans and for converting convertible bonds[33] Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[13] - The company has outlined various risks it may face in its operations, including industry policy risks and market risks, in its detailed risk analysis section[13] Research and Development - The company has applied for over 200 patents, with more than 100 granted, and is currently developing nearly 20 innovative drugs[54] - The company has initiated the "Innovation-Driven Development Project" in 2018, focusing on the safety, efficacy, and quality consistency of drugs, optimizing product structure, and enhancing academic promotion and new product development[130] - The company is focusing on the secondary development of major traditional Chinese medicine products to enhance quality standards and production processes[152] - Research and development investment amounted to 183.39 million RMB, representing 2.70% of operating revenue[155] Market Position and Strategy - The company has established itself as a leading player in the domestic pharmaceutical industry, ranking among the top 100 pharmaceutical companies and top 10 traditional Chinese medicine companies in China[49] - The company is actively pursuing structural reforms in the pharmaceutical sector, enhancing its core competitiveness through innovation and product optimization[48] - The company is exploring the global market for its products, leveraging the internationalization of drug registration and development processes[130] Sales and Marketing - The company expanded its sales network, covering over 300,000 retail pharmacies and nearly all hospitals nationwide[66] - The company has a strong brand portfolio, with several brands recognized as famous trademarks in China, contributing to its competitive advantage in the market[56] - The company is actively optimizing its product structure through R&D and acquisitions to enhance its competitive position in the market[120] Government Support and Industry Trends - The company received government subsidies amounting to CNY 54,582,662.05 in 2018, which were closely related to its normal business operations[37] - The pharmaceutical industry in China achieved a main business income of 23,986.3 billion RMB in 2018, reflecting a year-on-year growth of 12.6%[47] - The pharmaceutical manufacturing industry is expected to maintain high-quality growth, driven by population aging and health consumption upgrades, with broader development opportunities in 2019.[117] Financial Audits - The company’s financial report has been audited by Tianjian Accounting Firm, which issued a standard unqualified opinion[7]