LNCD(SH:600739)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 19,275,155,055.21, representing a 37.69% increase compared to CNY 13,998,827,377.12 in 2017[15] - The net profit attributable to shareholders of the listed company was CNY 761,824,787.62, a decrease of 47.32% from CNY 1,446,167,952.97 in the previous year[15] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 591,313,667.96, down 52.81% from CNY 1,253,041,417.59 in 2017[15] - The net cash flow from operating activities was CNY 485,979,117.45, a significant increase of 401.28% compared to CNY 96,947,532.64 in 2017[15] - Basic earnings per share decreased by 47.32% to CNY 0.4980 in 2018 from CNY 0.9454 in 2017[16] - The weighted average return on net assets decreased to 3.79% in 2018 from 7.49% in 2017, reflecting a decline of 3.70 percentage points[16] - The company reported a pre-tax profit of 983 million RMB, which is a decline of 39.38% compared to the previous year[31] - The company reported a significant decrease of 97.17% in cash flow from investing activities, totaling 1,625,510.67 yuan[43] Revenue Segmentation - The biopharmaceutical segment generated a sales revenue of 1.391 billion RMB, with a year-on-year increase of 8.98% and a pre-tax profit of 719 million RMB, up by 9.61%[31] - The supply chain services segment saw a sales revenue of 14.647 billion RMB, marking a significant year-on-year growth of 54.10%, and a pre-tax profit of 212 million RMB, which is an increase of 824.63%[31] - The company achieved a record high in sales revenue from bulk commodity trading[33] - The company sold nearly 700,000 doses of human rabies vaccine and approximately 150,000 doses of human inactivated Japanese encephalitis vaccine in 2018[31] Investment and R&D - R&D expenses rose by 35.99% to ¥70.26 million, driven by increased investment in biopharmaceutical research[35] - The total R&D investment amounted to 76,827,884.87 yuan, representing 0.40% of operating revenue, with 129 R&D personnel, making up 4.36% of total staff[42] - The company is focusing on developing new vaccines and recombinant proteins, with plans to accelerate the development of multivalent vaccines and innovative vaccines[70] - The company has signed technical agreements with leading global companies for the development of B group meningococcal vaccine and 15-valent HPV vaccine[70] Corporate Governance - The company has retained Huapu Tianjian Accounting Firm for financial and internal control audits for the 2018 fiscal year, with a fee of 140,000 RMB[116] - The company reported no significant litigation or arbitration matters during the fiscal year[117] - The company has established performance evaluation and incentive mechanisms for senior management based on their contributions to operational performance[183] - The governance structure complies with the requirements of the "Corporate Governance Guidelines for Listed Companies" and ensures independent operation of the board and supervisory committee[176] Market Position and Strategy - The company is actively expanding its production facilities to meet future product pipeline demands[31] - The company is focused on upgrading traditional vaccines and developing innovative vaccines, aiming to expand its product portfolio in the rapidly growing vaccine sector[56] - The company is enhancing its marketing and distribution network for vaccines targeting county-level disease prevention and control centers across China[80] - The company is pursuing mergers and acquisitions of innovative therapy research or startup companies to promote their technologies within China[77] Environmental and Social Responsibility - Chengda Biological's wastewater treatment meets discharge standards, with all wastewater treated before being released into the municipal sewage system[131] - The company has been certified under the ISO14001 environmental management system, with the latest certification valid until February 2022[144] - The company allocated CNY 1.5 million for poverty alleviation, ensuring the normal operation of the cooperative and supporting 194 impoverished individuals to escape poverty[127] - The company has established a comprehensive quality management system to ensure product safety and compliance with international standards[60] Shareholder and Financial Structure - The company has established a clear cash dividend policy, ensuring that at least 30% of the average distributable profit over the last three years is distributed in cash, subject to certain conditions[109] - The company plans to further expand financing channels and optimize its capital structure to support strategic goals and ensure sustainable development[112] - The company issued corporate bonds amounting to 300,000,000 RMB at an interest rate of 6.35% on January 26, 2018[151] - The company’s asset-liability ratio was 39.60% in 2018, a slight decrease from 39.83% in 2017[190] Risk Management - The company has detailed potential risks in its report, advising investors to be cautious[4] - The company acknowledges the risk of a single product structure in its biopharmaceuticals, primarily relying on the human rabies vaccine, which could lead to market share loss if competitors introduce superior products[104] - The company faces challenges with large accounts receivable, which may impact cash flow and operational efficiency if not managed effectively[65] - The company is closely monitoring changes in industry regulations and policies to ensure compliance and adapt its operations accordingly[66]