BHC(SH:600721)2020-06-15 16:00Financial Performance - In 2019, the company's operating revenue was CNY 262,017,718.33, a decrease of 37.49% compared to CNY 419,189,442.94 in 2018[19] - The net profit attributable to shareholders in 2019 was CNY 34,384,702.06, a significant improvement of 105.09% from a loss of CNY 675,291,477.07 in 2018[19] - Basic earnings per share for 2019 were CNY 0.0860, a turnaround from a loss of CNY 1.6866 in 2018, marking a 105.10% increase[21] - The weighted average return on equity improved to 3.68% in 2019, an increase of 52.48 percentage points from -48.80% in 2018[21] - The company reported a net cash flow from operating activities of -CNY 6,795,414.33 in 2019, a decline of 108.44% compared to CNY 80,553,717.37 in 2018[19] - The cumulative distributable profit for the company was negative at -CNY 1,678,504,740.43, leading to no cash dividend distribution for 2019[5] - The company reported non-recurring gains of ¥27,073,595.13 for the year 2019, compared to ¥143,509,581.00 in 2018, indicating a significant decrease[25] Assets and Liabilities - The company's total assets at the end of 2019 were CNY 1,291,205,717.74, reflecting a 3.43% increase from CNY 1,248,330,745.21 in 2018[20] - The net asset attributable to shareholders increased to CNY 954,695,566.45, up 4.49% from CNY 913,643,129.67 in 2018[20] - The company recognized an impairment loss of 17.55 million yuan for the Huawai Pharmaceutical asset group, with a cumulative impairment provision of 1.548 billion yuan[34] - The company reported a goodwill impairment provision of 17.55 million, impacting profits significantly[62] - The company’s accounts payable decreased by 44.41% to 40.59 million compared to the previous period[65] Revenue Breakdown - Revenue from pharmaceutical R&D decreased by CNY 92.67 million to CNY 114.54 million, with a gross margin reduction of 2.43%[54] - Clinical trial revenue decreased by CNY 18.98 million to CNY 116.17 million, with a gross margin decrease of 0.4%[54] - Other pharmaceutical income from intermediates was CNY 1.59 million, a decrease of 36.24%[55] - Domestic sales revenue was CNY 262 million, with a gross margin of 48.49%, an increase of 1.83 percentage points year-on-year[55] Operational Changes and Strategies - The company plans to enhance its core competitiveness by increasing investment in innovative drug research and development, focusing on original innovative drugs as a market value hotspot[31] - The company aims to expand its clinical service business for innovative drugs and strengthen strategic cooperation with major pharmaceutical companies[43] - The company has established new subsidiaries, including Liwei Biopharmaceuticals and Xipuda Data Management Company, to enhance its drug research and data management capabilities[44] - The company has implemented a comprehensive budget management system to improve operational control and reduce non-operational expenses[42] - The company aims to strengthen risk prediction and control systems across various business segments, including drug research and clinical services, to ensure healthy operations[80] Corporate Governance and Compliance - The company has made significant changes to its governance structure, including the appointment of new directors and supervisors to align with its strategic goals[41] - The company confirmed that it will not engage in any drug research and development activities directly or indirectly in any region after the completion of the major asset restructuring[89] - The company will strictly adhere to the decision-making procedures for related party transactions and ensure timely disclosure of such transactions[88] - The company has committed to avoiding related party transactions post-restructuring to protect shareholder interests[90] - The company has established a commitment to comply with all relevant laws and regulations in its operations and transactions[92] Shareholder Information - The top shareholder, Xinjiang Hualing Industrial Trade Group Co., Ltd., holds 79,525,087 shares, representing 19.86% of the total shares[127] - The total number of ordinary shareholders as of the end of the reporting period is 12,915, an increase from 12,027 at the end of the previous month[125] - The total number of shares held by the top ten unrestricted shareholders is 129,000,000, indicating strong support from major investors[128] - The company has not disclosed any related party relationships among the top shareholders[128] Employee and Labor Information - The total number of employees in the parent company is 47, while the main subsidiaries employ 809, resulting in a total of 856 employees[149] - The professional composition includes 721 technical personnel, 63 administrative staff, and 14 sales personnel[149] - The total remuneration paid to directors, supervisors, and senior management during the reporting period is 438.5[146] - The company has implemented a composite compensation system consisting of basic salary, performance pay, and various subsidies, ensuring timely and full payment of social insurance and housing fund for employees[150] Internal Control and Audit - The internal control evaluation report confirms the effectiveness of the company's internal control system as of December 31, 2019[162] - The company has established a self-evaluation and internal audit mechanism to address any identified internal control deficiencies promptly[180] - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[187] - The company is committed to maintaining compliance with accounting standards and ensuring the accuracy of financial reporting[196]