CONBA(SH:600572)2023-04-14 16:00Earnings Per Share (EPS) and Profitability - Basic earnings per share (EPS) for 2022 was 0.14 yuan, a decrease of 82.05% compared to 0.78 yuan in 2021[8] - Diluted EPS for 2022 was 0.14 yuan, also a decrease of 82.05% compared to 0.78 yuan in 2021[8] - Basic EPS excluding non-recurring gains and losses for 2022 was 0.19 yuan, an increase of 216.67% compared to 0.06 yuan in 2021[8] - The company's net profit attributable to shareholders in 2022 was 358.1 million yuan, a decrease of 82.25% year-on-year, while the net profit after deducting non-recurring gains and losses was 483.12 million yuan, an increase of 205.39% year-on-year[24] - The company's net profit attributable to shareholders in the first quarter of 2023 is expected to increase by more than 150%, reaching a historical high[38] - Excluding the impact of non-recurring items, the company achieved a net profit of 698 million RMB in 2022, a year-on-year increase of 3.49%, and non-GAAP net profit attributable to shareholders of 523 million RMB, a year-on-year increase of 26.30%[68] - The company's net profit attributable to the parent company for 2022 was RMB 357,930,669.22, compared to RMB 2,017,446,649.48 in the previous year[87] Return on Equity (ROE) - Weighted average return on equity (ROE) for 2022 was 5.03%, a decrease of 27.53 percentage points compared to 32.56% in 2021[8] - ROE excluding non-recurring gains and losses for 2022 was 6.89%, an increase of 4.27 percentage points compared to 2.62% in 2021[8] Revenue and Financial Performance - The company achieved a revenue of 6 billion yuan in 2022, a decrease of 8.64% year-on-year, but a 9.30% increase compared to the same period last year after excluding the impact of Zhenshiming Company[23] - Revenue for 2022 reached 6 billion RMB, with non-GAAP net profit attributable to shareholders of 483 million RMB, and net assets attributable to shareholders of 6.9 billion RMB, maintaining a good growth trend[61] - The company's total revenue for 2022 was RMB 6,000,443,393.73, primarily from pharmaceutical sales, including products like Changyanning, Qianliekang, and Compound Yuxingcao Mixture[79] - The company's operating income for 2022 was RMB 666,782,732.31, an increase from RMB 590,742,149.14 in the previous year[87] - The company's comprehensive income for 2022 was RMB 459,915,187.23, with RMB 357,930,669.22 attributable to the parent company and RMB 101,984,518.01 to minority shareholders[87] - The company's total assets at the end of 2022 were 10.93 billion yuan, a decrease of 3.05% compared to the end of 2021[33] - The company's net cash flow from operating activities in 2022 was 1.155 billion yuan, an increase of 29.65% year-on-year[33] - The company's net assets attributable to shareholders at the end of 2022 were 6.914 billion yuan, a decrease of 3.99% compared to the end of 2021[33] - The company's total assets as of December 31, 2022, were RMB 8,248,072,073.79, with current assets totaling RMB 2,212,387,528.13 and non-current assets totaling RMB 6,035,684,545.66[93] - The company's long-term equity investments as of December 31, 2022, were RMB 5,609,019,375.18, an increase from RMB 5,407,321,901.79 in the previous year[93] - The company's short-term borrowings as of December 31, 2022, were RMB 590,614,472.22, a decrease from RMB 1,211,208,216.44 in the previous year[93] - Net cash flow from financing activities was -924.71 million yuan, a decrease of 10.17% compared to the previous year's -1,026.02 million yuan[94] - The net increase in cash and cash equivalents was 28.77 million yuan, a significant decrease from the previous year's 952.21 million yuan[94] - The ending balance of cash and cash equivalents was 2,432.54 million yuan, slightly higher than the previous year's 2,403.76 million yuan[94] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 1.50 yuan per 10 shares, totaling 385.51 million yuan[43] Acquisitions and Equity Changes - The company completed the acquisition of 100% equity of Aotuokang Technology Company in September 2022 and 51% equity of Zhejiang University Herbal Pieces Company in October 2022[23] - The company's controlling shareholder changed to the Provincial Traditional Chinese Medicine Health Industry Group, which currently holds 20.85% of the company's shares[23] - The company completed the transfer of 42% equity of its former subsidiary Zhenshi Ming in 2021, recognizing an investment income of 2.5908 billion RMB, which increased the 2021 net profit by 2.3077 billion RMB[51] Asset Impairment and Fair Value Losses - In 2022, the company recognized a fair value loss of 198.1986 million RMB due to the decline in the market value of its holdings in Genor Biopharma, reducing net profit by 198.1986 million RMB[68] - In 2022, the company recorded a total asset impairment provision of 256.0155 million RMB, including a provision of 40.0299 million RMB for equity investment in Shanghai Keduo Network Technology[51] - The company's other non-current financial assets decreased by 198.1986 million RMB in 2022, primarily due to the decline in the market value of its holdings in Genor Biopharma[66] Quarterly Financial Performance - Q4 2022 revenue was 1.5122 billion RMB, with net profit attributable to shareholders of 128.7691 million RMB and non-GAAP net profit of 40.3567 million RMB[54] - Q3 2022 revenue was 1.4074 billion RMB, with net profit attributable to shareholders of 16.9392 million RMB and non-GAAP net profit of 130.4238 million RMB[54] - Q2 2022 revenue was 1.3802 billion RMB, with net profit attributable to shareholders of 109.1047 million RMB and non-GAAP net profit of 119.1022 million RMB[54] - Q1 2022 revenue was 1.7007 billion RMB, with net profit attributable to shareholders of 103.2868 million RMB and non-GAAP net profit of 193.2333 million RMB[54] Expenses and Cost Management - Sales expenses decreased by 14.94% to 2,061.56 million yuan, mainly due to the exclusion of Zhenshiming Company from the consolidated statements and strengthened marketing expense management[116] - Management expenses decreased by 3.87% to 519.89 million yuan, primarily due to the exclusion of Zhenshiming Company from the consolidated statements[116] - Financial expenses decreased by 124.34% to -14.28 million yuan, mainly due to increased interest income from the sale of 42% equity in Zhenshiming Company and reduced interest expenses from lower financing scale and rates[116] - R&D expenses decreased by 3.35% to 195.72 million yuan, mainly due to the exclusion of Zhenshiming Company from the consolidated statements and increased R&D investment[116] - The company's financial expenses for 2022 were RMB 19,957,409.84, a significant decrease from RMB 75,476,945.13 in the previous year[87] R&D and Innovation - The company's R&D projects include the secondary development of Ginkgo biloba extract and the clinical preparation of EVT-401 for pain relief[192] - The company's chemical drug products include azithromycin for injection, which is under professional review and has obtained approval[192] - The company's R&D investment in 2022 was 263 million yuan, accounting for 4.55% of manufacturing revenue, a year-on-year increase of 1 percentage point[199] - The company's R&D investment increased by 32% year-on-year[199] - The company obtained 2 production approvals for the innovative traditional Chinese medicine Huangshukui flower total flavonoid extract and oral patch[199] - The company obtained 7 consistency evaluation approvals for generic drugs, including Parecoxib Sodium for Injection and Omeprazole Enteric-coated Capsules[199] - The company established the "Zhejiang Traditional Chinese Medicine Innovation and Development Consortium" with Zhejiang University of Traditional Chinese Medicine in March 2022[199] Product and Market Performance - The company has cultivated multiple well-known brands, including Kang En Bei, Qian Lie Kang, and Tian Bao Ning, which are recognized as China's well-known trademarks[105] - The company has 60+ products listed in the National Essential Drug Directory (2018 edition) and 160+ products listed in the National Medical Insurance Directory (2022 edition)[106] - The company's international market share and pricing power are gradually increasing, with products like amikacin sulfate and azithromycin having a prominent position in domestic and international markets[165] - The company's raw material products have a significant production and export scale, with products like amikacin sulfate and spectinomycin hydrochloride[165] - The company's OTC sales model focuses on brand and academic development, with products like Kang En Bei and Jin Ao Kang having high brand recognition[169] - The company achieved pharmaceutical preparation revenue of 4.1 billion yuan in 2022, with self-operated revenue accounting for 85.3%[197] - The company's online business revenue reached 562 million yuan, a year-on-year increase of 37%, accounting for 9.4% of total revenue[197] - The company's online drug sales revenue reached 110 million yuan, a year-on-year increase of 73.2%[197] - The company's products with sales exceeding 100 million yuan generated revenue of 4.09 billion yuan, accounting for 68.16% of total revenue[198] - The "Kang En Bei" brand Changyanning series product achieved annual sales revenue exceeding 1 billion yuan for the first time, a year-on-year increase of 17.51%[198] Sector-wise Revenue and Gross Margin - Manufacturing sector revenue decreased by 10.21% to 578,470.94 million RMB, with a gross margin of 60.91%, down by 1.24 percentage points[123] - Commercial sector revenue increased by 81.96% to 16,078.36 million RMB, with a gross margin of 5.45%, up by 1.04 percentage points[123] - Non-prescription drugs revenue decreased by 1.26% to 203,970.45 million RMB, with a gross margin of 72.88%, down by 2.93 percentage points[123] - Health consumer products revenue decreased by 56.81% to 47,804.59 million RMB, with a gross margin of 50.14%, down by 5.13 percentage points[123] - Prescription drugs revenue decreased by 1.97% to 204,100.48 million RMB, with a gross margin of 78.42%, down by 1.49 percentage points[123] - Traditional Chinese medicine decoction pieces revenue increased by 22.46% to 53,639.76 million RMB, with a gross margin of 15.63%, up by 3.57 percentage points[123][128] - B2B sales revenue increased by 0.13% to 538,388.45 million RMB, with a gross margin of 59.93%, down by 2.77 percentage points[140] - Pharmaceutical industry sales revenue reached 5.785 billion yuan, accounting for 96.40% of total revenue, a year-on-year decrease of 10.21%, but a comparable growth of 7.90%[144] - Non-prescription drug sales revenue was 2.04 billion yuan, a year-on-year decrease of 1.26%, with a comparable growth of 7.61%[144] - The "Kang En Bei" brand Changyanning series product sales exceeded 1 billion yuan for the first time[144] Cost Structure - Direct material costs in industrial sales decreased by 9.13% year-on-year to 16.197 billion yuan, accounting for 71.63% of total costs[141] - Direct labor costs in industrial sales increased by 1.82% year-on-year to 1.729 billion yuan, accounting for 7.65% of total costs[141] - Fuel and power costs in industrial sales increased by 8.34% year-on-year to 994.67 million yuan, accounting for 4.40% of total costs[141] - Manufacturing expenses in industrial sales increased by 2.72% year-on-year to 2.851 billion yuan, accounting for 12.61% of total costs[141] - Transportation costs in industrial sales decreased by 27.83% year-on-year to 838.95 million yuan, accounting for 3.71% of total costs[141] - Total procurement costs in commercial sales increased by 80.46% year-on-year to 1.517 billion yuan, accounting for 99.83% of total costs[141] Other Financial Metrics - The company's investment income for 2022 was RMB 276,217,681.04, compared to RMB 2,190,730,489.23 in the previous year[87] - Prepaid engineering equipment payments decreased at the end of the reporting period, leading to changes in other non-current assets[163] - Prepayments increased by 54.51% to 69,803,131.26 yuan, while other non-current financial assets decreased by 59.07% to 137,345,656.52 yuan[182] - Overseas assets amounted to 205.86 million yuan, accounting for 1.88% of total assets[185] Digital Marketing and Online Sales - The company's digital marketing strategy is being developed in response to industry trends and market changes[190] - The company's online business revenue reached 562 million yuan, a year-on-year increase of 37%, accounting for 9.4% of total revenue[197] - The company's online drug sales revenue reached 110 million yuan, a year-on-year increase of 73.2%[197] Human Resources and R&D Personnel - The company has 206 R&D personnel, accounting for 2% of the total workforce, with 6 PhDs, 48 master's degrees, and 122 bachelor's degrees[179] Corporate Governance and Leadership - The company's stock is listed on the Shanghai Stock Exchange with the stock code 600572 and the stock abbreviation "康恩贝"[3] - The company's auditor is Tianjian Certified Public Accountants (Special General Partnership)[6] - The company's sponsor for continuous supervision is Zhejiang Securities Co., Ltd., with continuous supervision period from April 26, 2018, until the use of raised funds is completed[6] - The company's legal representative is Hu Jiqiang[19] - The company's board secretary is Jin Zucheng, and the securities affairs representative is Chen Fang[20]