THDB(SH:600867)2019-04-16 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 838,605,479.74 yuan in 2018, a slight increase of 0.25% compared to 836,553,622.89 yuan in 2017[4]. - Total operating revenue for 2018 was 2,692,927,482.97 yuan, reflecting a growth of 5.80% from 2,545,324,962.99 yuan in 2017[16]. - The total profit for 2018 was CNY 977.54 million, reflecting a growth of 0.47% compared to the previous year[33]. - The net profit attributable to the parent company was CNY 838.61 million, which is a 0.25% increase year-on-year[64]. - The company reported a significant drop in drug prices, with an average reduction of 52% due to new procurement policies[114]. Cash Flow and Dividends - The net cash flow from operating activities decreased by 8.77% to 876,935,395.72 yuan in 2018, down from 961,185,868.88 yuan in 2017[16]. - The company plans to distribute a cash dividend of 2 yuan per 10 shares, totaling 406,797,703.40 yuan, based on the total share capital of 2,033,988,517 shares[4]. - The total amount of cash dividends and share repurchase for 2018 is 706,646,248.53 RMB, which accounts for 84.26% of the net profit attributable to ordinary shareholders[124]. Market Position and Product Development - The company holds over 25% market share in the recombinant human insulin injection market, ranking second[28]. - The company has developed a diverse product line, including second-generation and third-generation insulin analogs, with plans for fourth-generation insulin[28]. - The company is focusing on the development of third-generation insulin products and other diabetes medications to meet diverse patient needs[30]. - The company has initiated the clinical trial for Liraglutide injection, having completed preclinical pharmacodynamics and safety evaluations, with the clinical trial application approved in September 2018[47]. Research and Development - The company’s R&D expenses for 2018 amounted to CNY 97.65 million, a slight increase of 0.89% from the previous year[65]. - The company has invested a total of ¥150.73 million in research and development in 2018, with ¥97.65 million as expense and ¥53.08 million as capitalized expenditure[93]. - Major R&D projects include the development of insulin products, with the company having submitted production applications for insulin glargine and aspart insulin, currently awaiting production site inspections[99]. - The company is focusing on enhancing its core competitiveness through increased R&D spending, which has been a consistent strategy over the years[97]. Operational Efficiency and Management - The company has committed to improving its management systems to adapt to rapid expansion and mitigate operational risks[120]. - The company has established internal control systems to enhance risk prevention capabilities and ensure compliance with regulations[194]. - The company has implemented a comprehensive salary adjustment method based on employee performance and departmental feedback[186]. Environmental Responsibility - The company emphasizes environmental protection and sustainable practices in its operations[117]. - The company reported a total wastewater discharge concentration of COD at 21.66 mg/L, BOD at 16.45 mg/L, and ammonia nitrogen at 1.87 mg/L, all below the permitted limits of 80 mg/L, 20 mg/L, and 10 mg/L respectively[148]. - The company has established and executed quality, environmental, and occupational health safety management systems to fulfill its social responsibilities[145]. Shareholder and Governance - The total number of ordinary shares increased to 2,033,988,517, with a significant increase in the number of shares issued, totaling 342,259,294[158]. - The company has not faced any major litigation or arbitration matters during the reporting period[136]. - The board of directors consists of 9 members, including 3 independent directors, and held 9 meetings during the reporting period[191]. - The controlling shareholder has acted in accordance with legal obligations, without misappropriating company funds or assets[190].