SHENGDA BIO-PHARM(SH:603079)2023-04-21 16:00Financial Performance - The company achieved a net profit of CNY 5,913,119.37 in 2022, with a distributable profit of CNY 321,336,147.48 after statutory reserve and previous undistributed profits adjustments[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, 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, a decrease of 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%, down 3.41 percentage points from 5.79% in 2021[27]. - The net profit after deducting non-recurring gains and losses for 2022 was RMB 10,691,488.19, a decrease of 79.25% from RMB 51,524,494.20 in 2021[25]. - The company reported a significant increase in financial expenses due to a rise in exchange gains, with a net financial expense of CNY -21.88 million, compared to CNY 8.87 million in the previous year[59]. Dividend Policy - A cash dividend of CNY 0.60 per 10 shares (including tax) is proposed for distribution to shareholders, pending approval at the 2022 annual general meeting[7]. - The company has outlined a three-year shareholder dividend return plan, aligning with regulatory requirements and long-term development needs[7]. - The total cash dividend amount for the reporting period was 10,271,337.48 RMB, representing 32.62% of the net profit attributable to ordinary shareholders[159]. Risks and Challenges - The company faces significant risks including product price fluctuations, raw material price volatility, high customer concentration, exchange rate fluctuations, and changes in the macroeconomic environment[11]. - The company experienced a significant decline in sales revenue due to a drop in the price of its main product, biotin[27]. - The company has a high customer concentration risk, with the top five customers accounting for 21.09% of revenue in 2022[122]. - The company’s export revenue constituted 39.48% of its main business income in 2022, exposing it to exchange rate risks[122]. - Raw material price fluctuations significantly impact the company's profitability, as raw materials constitute a large portion of production costs[121]. Operational Highlights - The company has a 75% stake in Tongliao Shengda, a key subsidiary, which contributes to its operational capabilities[15]. - The company maintained a leading market share in its main products despite a challenging market environment[37]. - The subsidiary XinYinXiang achieved a sales growth of 18.53% and a net profit increase of 1.36% compared to the previous year[38]. - The company implemented cost reduction measures, achieving over 10% reduction in raw material procurement costs through innovative projects[38]. - The clean label product segment saw a significant revenue increase of 139.17%[37]. Research and Development - The company continues to invest in R&D, focusing on green catalytic technology and synthetic biology to enhance its technological capabilities[40]. - The company invested a total of RMB 37.81 million in R&D during the reporting period, with 28 ongoing projects and 5 national patents granted, including 4 invention patents[89]. - The number of R&D personnel is 160, accounting for 13.89% of the total workforce[74]. Governance and Compliance - The company emphasizes the importance of maintaining the authenticity and completeness of its financial reports, as confirmed by Tianjian Accounting Firm's standard unqualified audit report[6]. - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has established a fair and transparent performance evaluation and incentive mechanism for directors and senior management, ensuring compliance with relevant laws and regulations[131]. - The company has maintained a governance structure that respects and protects the legitimate rights and interests of stakeholders, balancing the interests of shareholders, employees, and society[127]. 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’s solid waste generation decreased from 990.81 tons in 2021 to 430.73 tons in 2022, reflecting enhanced waste management practices[165]. - The company maintains a daily wastewater treatment capacity of 520 tons, ensuring compliance with environmental standards[165]. - The company has established an environmental management system certified by ISO14001, ensuring stable operation of pollution control facilities[185]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[132]. - The company plans to invest RMB 499.87 million in the first phase of the vitamin series products and raw materials upgrade project, expected to produce 220 tons of biotin and 1,000 tons of folic acid annually upon completion[99]. - The company aims to enhance product reserves and expand product applications through technological innovation and collaboration with research institutions[117]. - The company plans to enhance its market presence by expanding its environmental services to new regions and sectors[176].