Ausun Pharm(SH:603229)2020-04-02 16:00Financial Performance - The company's operating revenue for 2019 was CNY 307,914,615.40, representing a year-over-year increase of 26.25% compared to CNY 243,885,062.27 in 2018[26]. - The net profit attributable to shareholders for 2019 was CNY 56,386,592.46, up 28.55% from CNY 43,864,090.74 in 2018[26]. - The net cash flow from operating activities reached CNY 87,729,755.39, a significant increase of 662.63% compared to CNY 11,503,536.93 in 2018[26]. - The basic earnings per share for 2019 was CNY 0.35, reflecting a 29.63% increase from CNY 0.27 in 2018[28]. - The weighted average return on equity for 2019 was 9.07%, an increase of 1.52 percentage points from 7.55% in 2018[28]. - The company's total assets at the end of 2019 were CNY 886,144,781.00, a 10.49% increase from CNY 801,978,662.98 at the end of 2018[26]. - The net assets attributable to shareholders at the end of 2019 were CNY 645,185,357.03, up 7.96% from CNY 597,598,764.57 at the end of 2018[26]. - The company achieved operating revenue of RMB 307.91 million, representing a year-on-year growth of 26.25%[59]. - The net profit attributable to shareholders reached RMB 56.39 million, with a year-on-year increase of 28.55%[59]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.75 per 10 shares, totaling RMB 12 million, and to increase its share capital by 64 million shares through capital reserve conversion, raising total shares from 160 million to 224 million[7]. - The company distributed a cash dividend of CNY 0.55 per 10 shares, totaling CNY 8.8 million, which was paid out on June 14, 2019[147]. - In 2019, the company distributed a cash dividend of 0.75 RMB per 10 shares, totaling 12,000,000 RMB, which represents 21.28% of the net profit attributable to ordinary shareholders[150]. - The cash dividend for 2018 was 0.55 RMB per 10 shares, totaling 8,800,000 RMB, which was 20.06% of the net profit[150]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[9]. - The company has not disclosed any significant risks beyond those detailed in the operational discussion section of the report[9]. - The company’s management team, including the legal representative Zheng Zhiguo, is committed to the integrity of the financial reporting process[4]. - The company has not reported any significant impact from the completion of performance commitments or goodwill impairment tests during the reporting period[162]. - The company has not received any non-standard audit opinions from its accounting firm, indicating a clean audit report for the period[162]. Research and Development - R&D investment amounted to RMB 47.75 million, accounting for 15.51% of operating revenue[63]. - The company has established a research and development team of 144 members, comprising 24.53% of the total workforce[53]. - The company has completed the development of several series of APIs and intermediates, ready for scale sales upon patent expiration[53]. - The company is currently conducting Phase II clinical trials for a new drug targeting cerebrovascular diseases, highlighting its active engagement in advanced research[108]. - The company has a diverse product pipeline, including projects for anti-hypertensive drugs and orphan drugs, which are in various stages of development[111]. - The company reported a total R&D investment of 47.75 million RMB, accounting for 15.51% of its operating revenue, which is a leading level in the industry[104]. - The company has 32 ongoing R&D projects, with 3 projects already submitted for approval, showcasing a robust pipeline for future products[104]. Market and Industry Trends - The global pharmaceutical market is projected to exceed $1.5 trillion by 2023, up from $1.205 trillion in 2018[45]. - In China, the total healthcare expenditure increased from 3.5 trillion yuan in 2014 to 5.8 trillion yuan in 2018, with a compound annual growth rate of approximately 13.2%[49]. - The aging population in China is a key driver for the pharmaceutical market, with the proportion of individuals aged 65 and above reaching approximately 11.9% in 2018[49]. - The company operates in the pharmaceutical manufacturing industry, which is characterized by high technical barriers and strict regulatory oversight[96]. Environmental Compliance - The company discharged a total of 110,600 tons of wastewater during the reporting period[191]. - The average discharge concentration of chemical oxygen demand (COD) was 135.8 mg/L, with a total discharge of 11.06 tons[191]. - The average discharge concentration of ammonia nitrogen was 2.86 mg/L, with a total discharge of 4.75 tons[191]. - The wastewater treatment system has a comprehensive design capacity of 800 m³/d, with the first phase operational at 400 m³/d[192]. - The company has not experienced any environmental pollution incidents or exceeded discharge standards during the reporting period[190]. - The company has implemented a third-party monitoring scheme for wastewater, waste gas, and noise, with all indicators meeting standards[197]. - The company has established an emergency response plan for environmental incidents, filed with the local environmental protection bureau[196]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies, advising investors to consider investment risks[8]. - The company acknowledges the risk of product development failure due to the high investment and long approval cycles associated with new products and technologies[143]. - The company is exposed to risks from raw material price fluctuations, which have been increasing and pressuring profit margins[145]. - The company faces a high product quality risk due to the complexity of its production processes, which require compliance with GMP and cGMP certifications for domestic and export sales[142]. Corporate Governance - The company has committed to not transferring or managing shares held prior to the IPO for a period of 36 months[153]. - The company plans to avoid any business competition with its controlling shareholders and related parties[154]. - The company has established a plan for share reduction post-lock-up, with specific limits on the percentage of shares that can be sold each year[153]. - The company will ensure that any stock repurchase does not lead to non-compliance with legal listing conditions[159]. - The company commits to not transferring benefits to other entities or individuals unfairly[161].