THDB(SH:600867)2020-04-14 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 811,206,148.03 CNY in 2019, a decrease of 3.27% compared to 2018[4]. - Total operating revenue for 2019 was 2,777,148,879.86 CNY, representing a year-on-year increase of 3.13%[16]. - The total profit for 2019 was CNY 952.50 million, a decrease of 2.56% compared to the previous year[28]. - The net profit attributable to shareholders was CNY 811.21 million, down 3.27% year-on-year[28]. - Basic earnings per share for 2019 was CNY 0.40, a decrease of 2.44% compared to 2018[17]. - The company achieved a weighted average return on equity of 16.58% in 2019, down 1.05 percentage points from 2018[17]. - The total amount of non-recurring gains and losses in 2019 was CNY 1,869,617.06, significantly lower than CNY 24,284,551.05 in 2018[19]. - The company reported a net cash flow from operating activities of CNY 1,152,169,735.74, an increase of 31.39% from the previous year[57]. - The company’s total assets as of the end of 2019 were 5,349,909,572.36 CNY, a decrease of 2.08% from the previous year[16]. - The net assets attributable to shareholders reached 5,000,394,902.50 CNY, reflecting a growth of 5.84% year-on-year[16]. Dividend Distribution - The company plans to distribute a cash dividend of 2 CNY per 10 shares, totaling 403,577,703.40 CNY, which is 74.46% of the net profit attributable to shareholders[4]. - In 2019, the company distributed a cash dividend of 2 RMB per 10 shares, totaling 403,577,703.40 RMB, which represents 49.75% of the net profit attributable to ordinary shareholders[109]. - The cash dividend for 2019 was RMB 200,457,967.43, which is 24.71% of the net profit, compared to RMB 299,848,545.13 and 35.76% in 2018[113]. - The company distributed cash dividends amounting to RMB 403,577,703.40, with retained earnings of RMB 1,127,533,521.02 for future distribution[112]. Market Position and Product Development - The company has a market share of over 25% for its main product, recombinant human insulin injection (brand name: Gan Shulin), ranking second in the market[23]. - The company focuses on diabetes treatment and has developed a rich product line, including second and third-generation insulin products[23]. - The company launched its glargine insulin injection in December 2019, becoming the third company in China to obtain registration approval for this product[25]. - The company is actively developing third-generation insulin analogs and has partnered with France's Adocia to advance fourth-generation insulin research[25]. - The company aims to expand its market presence in diabetes treatment through continuous investment in R&D and product innovation[40]. - The company is focusing on the development of high-value generics and innovative drugs to capture a larger market share[103]. Research and Development - Total R&D investment reached ¥199,001,551.98, accounting for 7.17% of operating revenue, with 60.78% of R&D costs capitalized[67]. - The company’s total R&D expenditure in 2019 was 19,900 thousand RMB, with 7,804 thousand RMB as expense and 12,096 thousand RMB as capitalized expenditure[84]. - The company has ongoing clinical trials for several insulin products, including Liraglutide and Insulin Glargine, with cumulative R&D investments of 9,123 million RMB and 7,397 million RMB respectively[89]. - The company is conducting further research for the oral hypoglycemic agent projects, including regaglinide tablets, with plans to complete bioequivalence testing in 2020[44]. - The company aims to develop 8-10 classic formulations within three years and modern improved traditional Chinese medicine new drugs based on Zhennaoning capsules within five years, leveraging existing patents and clinical approvals[48]. Operational Efficiency and Risk Management - The company is enhancing its internal control mechanisms to improve risk management and ensure stable business development[55]. - The company is committed to enhancing its management and supervision mechanisms, aiming for a more systematic and scientific approach to management and performance evaluation[106]. - The company faces risks related to industry policies, including increased regulatory scrutiny and changes in drug approval processes, which could impact future growth[107]. - The company has a strategy to mitigate risks associated with new drug development, focusing on diabetes treatment products to create new growth points[107]. Environmental Responsibility - The company is committed to environmental protection and safety, adhering to relevant laws and regulations, and implementing energy-saving and emission-reduction measures[54]. - The company has implemented environmental protection measures, including the installation of online monitoring systems for wastewater discharge, ensuring compliance with pollution discharge standards[133]. - The company completed the renovation of its coal-fired boiler flue gas treatment facilities in July 2019, ensuring stable compliance with emission standards[137]. - The company has established emergency response plans for environmental incidents, which have been reviewed and filed with the local environmental protection bureau[139]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[175]. - The company held 1 annual general meeting and 1 extraordinary general meeting during the reporting period, ensuring compliance with regulations[175]. - The remuneration and assessment committee is responsible for evaluating the performance of directors and senior management based on annual operational goals[184]. - The independent directors have extensive academic and professional backgrounds, contributing to the company's governance[163]. Shareholder Information - The total number of ordinary shares is 2,033,988,517, with 96.054% being freely tradable shares[144]. - Dongbao Industrial Group holds 784,216,781 shares, accounting for 38.56% of the total share capital[150]. - The company has 102,684 ordinary shareholders as of the end of the reporting period[149]. - The first major shareholder, Dongbao Group, reduced its holdings by 8,081,444 shares from October 22, 2019, to December 31, 2019[154].