NCPC(SH:600812)2019-03-22 16:00Financial Performance - The company's operating revenue for 2018 was RMB 9,213,775,284.29, representing a year-on-year increase of 19.52% compared to RMB 7,709,121,876.65 in 2017[22]. - The net profit attributable to shareholders of the listed company was RMB 22,490,775.36, showing a slight increase of 2.45% from RMB 21,952,245.00 in the previous year[22]. - The net cash flow from operating activities reached RMB 774,325,700.79, a significant increase of 169.56% compared to RMB 287,250,352.97 in 2017[22]. - As of the end of 2018, the total assets amounted to RMB 17,916,817,368.08, reflecting a growth of 4.46% from RMB 17,151,500,181.55 at the end of 2017[22]. - The total profit for the company reached 198 million yuan, indicating a positive trend in operational performance[57]. - Total profit reached CNY 198 million, a significant increase of 233.13% compared to the previous year[63]. - The company reported a net profit of ¥86,527,349.58, compared to a loss of ¥27,494,811.42 in the previous period, indicating a significant turnaround in profitability[86]. - The company reported a net profit of 203,162,115.52 RMB for 2018, with a retained earnings balance of 1,262,602,564.81 RMB at year-end[194]. Dividends and Shareholder Returns - The company plans to distribute cash dividends totaling RMB 48,924,141.87, which equates to RMB 0.30 per 10 shares based on the total share capital of 1,630,804,729 shares as of the end of 2018[6]. - The company reported a positive profit for the reporting period, with net income available for common shareholders being positive, but did not propose a cash profit distribution plan[196]. Research and Development - R&D expenses increased by 51.49% to CNY 71.88 million, reflecting the company's commitment to product development[64]. - The total R&D investment amounted to 332.70 million yuan, which is 3.61% of the operating revenue[80]. - The company has established a complete three-tier R&D system and is recognized as one of the first national enterprise technology centers[133]. - The company is actively pursuing the development of new drugs and technologies to mitigate the risks associated with high R&D costs and long cycles[141]. - The company has reported a total of 12,629.41 million RMB in cumulative R&D investment for the recombinant human albumin project, with ongoing clinical trials[142]. Market and Product Development - The company is focusing on developing high-value and high-growth projects in biopharmaceuticals and oncology drugs[31]. - The company is enhancing clinical academic research and evidence-based medicine to ensure the efficacy and safety of its products in response to the shift towards DRGs payment systems[99]. - The company is committed to improving its production supply capabilities and reducing costs while enhancing product quality and clinical efficacy[102]. - The company plans to enhance its product structure, shifting focus from raw materials to high-value formulations, and from anti-infection to specialized treatments[186]. - The company is expanding its sales network across most provinces and municipalities in China, utilizing a "distribution +招商 + academic promotion" sales model[156]. Risks and Challenges - There were no significant risks that materially affected the company's operations during the reporting period[7]. - The report includes a forward-looking statement risk declaration, indicating that future plans may involve uncertainties and do not constitute a substantive commitment to investors[6]. - The company is facing risks from policy changes such as the two-invoice system and national volume-based procurement, which may impact market share and pricing[162]. - The company faces risks from regulatory changes and rising costs in the pharmaceutical industry, necessitating structural adjustments and innovative marketing strategies[191]. Production and Sales - The company achieved a total revenue of 9.214 billion yuan in 2018, with a year-on-year growth of 28.26% in the pharmaceutical and chemical sector, which generated 8.437 billion yuan[57]. - The sales revenue from formulations reached CNY 6.316 billion, with 12 products exceeding CNY 100 million in revenue, including three products generating over CNY 700 million each[64]. - The company reported a significant increase in sales volume for key products, including 30,433 thousand units of injectable amoxicillin sodium and 27,328 thousand units of amoxicillin sodium and clavulanate potassium[163]. Strategic Focus - The company aims to enhance its drug research and development capabilities significantly, aspiring to become a leading domestic pharmaceutical R&D center[183]. - The strategic focus includes innovation-driven development, optimizing upgrades, and strengthening core competencies in the pharmaceutical sector[184]. - The company is committed to achieving a 100% pass rate in product market inspections and zero major quality incidents throughout the year[190]. Financial Stability - The company issued CNY 1 billion in short-term financing bonds to ensure financial stability[60]. - Cash and cash equivalents at the end of the period were 1.25 billion yuan, up 8.96% from the previous period[84]. - The company has made long-term equity investments totaling CNY 659 million, reflecting a 0.97% increase from the beginning of the year[173].