NCPC(SH:600812)2021-08-05 16:00Financial Performance - The company's operating revenue for 2020 was CNY 11,492,504,163.48, representing a year-on-year increase of 0.31% compared to CNY 11,457,480,504.85 in 2019[27]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 97,323,761.87, a decrease of 43.46% from CNY 172,147,389.25 in 2019[27]. - The net cash flow from operating activities for 2020 was CNY 752,146,763.87, a slight decrease of 1.51% compared to CNY 763,699,998.21 in 2019[27]. - The total assets at the end of 2020 amounted to CNY 23,931,716,749.91, reflecting a significant increase of 26.55% from CNY 18,910,689,810.40 at the end of 2019[27]. - The basic earnings per share for 2020 was CNY 0.060, down 43.40% from CNY 0.106 in 2019[27]. - The company reported a net loss attributable to shareholders after deducting non-recurring gains and losses of CNY 61,912,922.96 in 2020, compared to a profit of CNY 114,741,639.82 in 2019, marking a decrease of 153.96%[27]. - The company achieved a revenue of 11.493 billion yuan in 2020, representing a year-on-year growth of 0.31%, while the total profit decreased by 28.38% to 187 million yuan[62]. - The gross margin for the overall company was 36.27%, reflecting a decrease of 4.80% compared to the previous year[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.30 per 10 shares, totaling approximately RMB 48.92 million, which represents 50.27% of the net profit attributable to shareholders for the year[7]. - The cash dividend for 2019 was also RMB 0.30 per 10 shares, amounting to RMB 48,924,141.87, which was 31.88% of the net profit for that year[199]. - The company has maintained a consistent cash dividend policy over the past three years, with the same amount distributed each year[199]. - The total distributable profit as of December 31, 2020, was RMB 736,781,117.17 after accounting for the legal surplus reserve and previous dividends[198]. - The company has established a shareholder return plan, committing to distribute at least 30% of the average distributable profit over the last three years as cash dividends, provided the distributable profit is positive[198]. Internal Controls and Audit - The company has identified one significant internal control deficiency in its internal control evaluation report for 2020, which was independently audited[12]. - The company has received a standard unqualified audit opinion from Zhongtian Yun Accounting Firm for its financial statements[6]. - The company has not violated any decision-making procedures in providing guarantees[9]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. Market and Industry Trends - The pharmaceutical manufacturing industry in China experienced a revenue growth of 7.0% year-on-year, with a profit increase of 19.3%[42]. - The chemical pharmaceutical industry reported a revenue of 1.23015 trillion yuan, with a profit of 162.72 billion yuan, both showing a year-on-year growth of 0.5%[45]. - The health industry in China has been growing at an annual rate exceeding 10% since 2018, driven by rising health awareness and supportive policies, indicating significant market potential[104]. - The national medical insurance directory for 2020 includes 2,800 drugs, with 1,264 Western medicines and 1,315 traditional Chinese medicines, reflecting ongoing healthcare reforms[107]. - The "volume-based procurement" policy has been implemented, leading to significant price reductions and a more standardized procurement process across the country[108]. Research and Development - The company achieved a research and development (R&D) investment of 469 million RMB, representing 4.08% of its operating revenue, which is in line with the industry average[162]. - The R&D investment capitalized ratio was 74.56%, indicating a significant portion of R&D expenses were capitalized[161]. - The company is focusing on expanding its presence in the biopharmaceutical sector, which is experiencing rapid growth and innovation, particularly in antibody and gene therapies[98]. - The company is committed to increasing investment in innovative drug research, particularly in monoclonal antibodies and complex generics[194]. - The company is investing in research and development for new antibiotics to combat antibiotic resistance, with a focus on innovative drug delivery systems[120]. Product Development and Sales - The company has a complete product chain from fermentation raw materials to semi-synthetic raw materials and formulations, maintaining a leading position in the antibiotic sector[48]. - The company has received multiple national awards, including 5 national invention awards and 21 scientific progress awards[50]. - The company is actively pursuing market expansion strategies, particularly in the Asia-Pacific region, to increase its market share in the pharmaceutical industry[120]. - The company has reported a significant increase in revenue from the sales of injectable amoxicillin sodium clavulanate, which is indicated for various infections, including respiratory and urinary tract infections[120]. - The company is focusing on expanding its product line with new formulations, including a new injectable formulation of vancomycin, targeting resistant bacterial infections[120]. Financial Management - The company has implemented strict budget controls and cost reduction measures, significantly lowering controllable expenses[63]. - The company reported a net cash outflow from investment activities of 843.58 million RMB, primarily due to increased R&D investments and acquisitions[66]. - The company’s long-term equity investment balance increased by 1.20% to 582 million as of December 31, 2020[175]. - The company has funded its projects through self-raised funds and loans, indicating a strong reliance on internal financing[177]. - The company is committed to enhancing its modern management level to ensure normal production operations and reduce operational risks[195].