Ausun Pharm(SH:603229)2019-04-11 16:00Financial Performance - The company's operating revenue for 2018 was RMB 243,885,062.27, representing a year-on-year increase of 1.54% compared to RMB 240,188,298.82 in 2017 [25]. - The net profit attributable to shareholders for 2018 decreased by 17.26% to RMB 43,864,090.74 from RMB 53,011,517.29 in 2017 [25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 34,015,621.56, down 33.26% from RMB 50,969,147.05 in the previous year [25]. - The net cash flow from operating activities significantly dropped by 76.66% to RMB 11,503,536.93 from RMB 49,294,377.30 in 2017 [25]. - The total assets at the end of 2018 increased by 8.14% to RMB 801,978,662.98 compared to RMB 741,583,786.95 at the end of 2017 [25]. - The basic earnings per share for 2018 was RMB 0.27, a decrease of 27.03% from RMB 0.37 in 2017 [28]. - The weighted average return on equity for 2018 was 7.55%, down 4.88 percentage points from 12.43% in 2017 [28]. - The company reported a total of RMB 5,462,365.46 in government subsidies related to its normal business operations for 2018 [32]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.55 per 10 shares, totaling RMB 8,800,000.00, based on a total share capital of 16 million shares [6]. - The company has established a cash dividend policy in accordance with regulatory guidelines, ensuring shareholder returns [135]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm [5]. - The company has confirmed no non-operating fund occupation by controlling shareholders or related parties [8]. - The company adheres to strict production management standards, including GMP and ISO14001, to ensure product quality and safety throughout the manufacturing process [43]. - The company faces risks related to product quality, requiring compliance with GMP and cGMP certifications for domestic and export sales [127]. Research and Development - The company has maintained a research and development investment exceeding 10% of its revenue over the past three years, indicating a strong commitment to innovation [46]. - The company has a dedicated research team of 146 members, representing 26.02% of its total workforce, focusing on various aspects of drug development and quality control [46]. - The company reported a total R&D investment of 34.37 million RMB, accounting for 14.09% of its operating revenue [93]. - The company has several ongoing R&D projects, including diabetes drugs and treatments for insomnia, with all projects in the research phase initiated in 2019 [104]. - The company’s R&D investment is among the highest in its industry, with a ratio of 14.09% compared to the industry average of 4.68% [96]. Market and Product Strategy - The company is engaged in the research, production, and sales of specialty APIs and pharmaceutical intermediates, focusing on high-tech and high-barrier products [36]. - The company has established long-term strategic partnerships with major clients in regulated markets, enhancing its reputation and market presence [47]. - The company plans to expand its market presence in Europe, the United States, and Japan to enhance sales growth [55]. - The company maintains a "R&D-driven sales" strategy, focusing on optimizing existing products and developing new ones to enhance market competitiveness [109]. - The company aims to develop high-value products with significant technical difficulty, focusing on the integration of intermediates, raw materials, and formulations [120]. Financial Management - The company has a total of ¥75,000,000 in bank wealth management products and ¥130,000,000 in securities firm wealth management products, indicating active investment strategies [170]. - The company reported accounts receivable of ¥80,363,236.03 and construction in progress of ¥25,940,391.25, reflecting significant adjustments in financial reporting [158]. - The company adjusted its management expenses to ¥65,145,439.86 and research and development expenses to ¥29,841,074.16, indicating a focus on innovation [158]. Environmental and Safety Compliance - The total wastewater discharged by the company during the reporting period was 82,652 tons [179]. - The average discharge concentration of chemical oxygen demand (COD) was 144.88 mg/L, with a total discharge of 8.2652 tons [179]. - The company conducted environmental monitoring, with all pollutant indicators meeting discharge standards [188]. - The company has not experienced major safety incidents but acknowledges potential risks from handling hazardous materials [130]. Shareholder Structure and Stock Management - The total number of ordinary shares is 160,000,000, with a proportion of 100% [192]. - The top shareholder, Zheng Zhiguo, holds 95,976,000 shares, representing 59.99% of the total shares [198]. - The company commits to not using its assets for unrelated investments or consumption activities by directors and senior management [156]. - The company will hold a shareholders' meeting to approve the stock buyback plan, requiring a two-thirds majority vote from attending shareholders [155].