SHENGDA BIO-PHARM(SH:603079)2023-03-24 16:00Financial Performance - The company reported a net profit of CNY 5,913,119.37 for the year 2022, with a proposed cash dividend of CNY 0.60 per share[7]. - The total distributable profit for shareholders after accounting for legal reserves and previous undistributed profits is CNY 321,336,147.48[7]. - The company plans to allocate 10% of the net profit to statutory surplus reserves, amounting to CNY 591,311.94[7]. - The company's operating revenue for 2022 was RMB 738,019,050.08, a decrease of 6.55% compared to RMB 789,732,754.87 in 2021[25]. - The net profit attributable to shareholders for 2022 was RMB 31,486,120.69, down 58.44% from RMB 75,756,473.97 in the previous year[25]. - The basic earnings per share for 2022 was RMB 0.18, reflecting a decline of 59.09% from RMB 0.44 in 2021[27]. - The cash flow from operating activities for 2022 was RMB 40,717,546.99, a decrease of 45.32% compared to RMB 74,460,439.98 in 2021[25]. - The total assets at the end of 2022 were RMB 1,655,207,544.77, down 6.21% from RMB 1,764,814,096.10 at the end of 2021[26]. - The weighted average return on equity for 2022 was 2.38%, a decrease of 3.41 percentage points from 5.79% in 2021[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 10,691,488.19, down 79.25% from RMB 51,524,494.20 in 2021[25]. Risks and Challenges - The company faces significant risks including product price fluctuations, raw material price volatility, and high customer concentration risk[11]. - The company experienced a significant drop in sales revenue due to a decrease in the price of its main product, biotin[27]. - Sales revenue from the top five customers accounted for 21.09% of total revenue in 2022, indicating a high customer concentration risk[122]. - The company's export revenue represented 39.48% of main business income in 2022, exposing it to foreign exchange risk due to reliance on USD for transactions[122]. - The vitamin industry is facing competitive pressure due to oversupply, but the company is positioned to leverage potential opportunities in 2023[42]. Subsidiaries and Investments - The company has a 75% stake in its subsidiary, Tongliao Shengda, which is a key part of its operations[15]. - The subsidiary XinYinXiang achieved a sales increase of 18.53% and a net profit growth of 1.36% compared to the previous year[38]. - The company’s subsidiary, New Silver Elephant, reported a revenue of 350.06 million RMB and a net profit of 35.78 million RMB in 2022[115]. - The company has a diverse portfolio of subsidiaries and associated companies, enhancing its market presence and operational capabilities[135]. Research and Development - The company is actively engaged in research and development, focusing on green catalytic technology and synthetic biology to support product development and technical support[40]. - The company invested CNY 37,810,800 in R&D during the reporting period, with 28 ongoing projects and 5 patents granted, including 4 invention patents[89]. - The company holds 5 national authorized patents, including 4 invention patents, reflecting its commitment to R&D and innovation[57]. - The company has established a strong talent development system, completing the introduction of four high-level talents at the national and provincial levels in 2022[40]. Environmental Performance - The company reported a significant reduction in wastewater emissions from 307,509.938 tons in 2021 to 132,395 tons in 2022, indicating improved environmental performance[165]. - The company maintained compliance with environmental standards for air emissions, with all reported pollutants meeting regulatory requirements[165]. - The company’s solid waste generation included 990.81 tons of distillation residues and 8,227 tons of sludge in 2022, reflecting ongoing waste management efforts[165]. - The company has established a dedicated environmental management department to oversee pollution prevention and compliance with environmental regulations[185]. - The company has implemented energy-saving measures and is actively managing carbon emissions, including the use of heat recovery technology[186]. Governance and Compliance - The company emphasizes the importance of maintaining the accuracy and completeness of its financial reports, as confirmed by its auditing firm[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[9]. - The company has not faced any violations in decision-making procedures regarding external guarantees[9]. - The company has established a transparent performance evaluation and incentive mechanism for its senior management[127]. - The company held three shareholder meetings in 2022, approving a total of 16 proposals, including the annual report for 2021 and the allocation of surplus funds for liquidity[129]. Market Strategy and Future Plans - The company is committed to long-term development while balancing immediate shareholder interests in its profit distribution plan[7]. - The company plans to invest approximately RMB 499.87 million in the first phase of the vitamin series product and raw material drug industry upgrade project, with an expected annual production of 220 tons of biotin and 1,000 tons of folic acid upon completion[99]. - The company aims to enhance production capacity for biological preservatives due to high demand, which has led to the abandonment of some clients[116]. - The company plans to strengthen its position in the synthetic biology industry by gradually expanding its technology base[118]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 150 million allocated for potential deals[132].