Ausun Pharm(SH:603229)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 409,249,350.21, representing a 32.91% increase compared to 2019[27]. - The net profit attributable to shareholders for 2020 was CNY 86,836,031.18, a 54.00% increase from the previous year[27]. - The net cash flow from operating activities reached CNY 138,470,268.68, up 57.84% year-on-year[27]. - Basic earnings per share for 2020 were CNY 0.39, reflecting a 56.00% increase compared to 2019[28]. - The weighted average return on equity for 2020 was 12.73%, an increase of 3.66 percentage points from 2019[28]. - The company's total assets at the end of 2020 amounted to CNY 1,381,688,452.87, a 55.92% increase from the end of 2019[27]. - The net assets attributable to shareholders increased by 74.66% to CNY 1,126,882,138.32 by the end of 2020[27]. - The company reported a net profit of CNY 20,979,644.34 in Q1 2020, with a total operating revenue of CNY 79,470,646.17[31]. - The company received government subsidies amounting to CNY 8,213,462.88 in 2020, which are closely related to its normal business operations[32]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 0.75 per 10 shares, totaling RMB 17,940,477.90 (including tax) to shareholders[7]. - The company will increase its total share capital from 239,206,372 shares to 287,047,646 shares by issuing 2 additional shares for every 10 shares held, totaling 47,841,274 shares[7]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company's financial report has been confirmed for its authenticity and completeness by its management team[4]. - The company has appointed Tianjian Accounting Firm as its auditor, with the audit conducted by Yan Yanhong and Ye Zewei[26]. Business Operations and Strategy - The company is primarily engaged in the research, development, production, and sales of specialty APIs and pharmaceutical intermediates, indicating a focus on high-tech and high-barrier products[37]. - The company has established a strong manufacturing capability with advanced synthesis equipment and mature processes, certified by EU GMP and US FDA[49]. - The company has formed long-term strategic partnerships with major clients through successful product development, certification, and production[49]. - The company employs a direct sales model in domestic markets, utilizing various channels to reach potential customers[45]. - The company’s contract manufacturing and development services (CMO/CDMO) enhance client retention during drug development and commercialization phases[45]. - The company’s sales strategy is driven by R&D, focusing on optimizing existing products and providing timely responses to market demands[42]. Research and Development - R&D investment amounted to 50.77 million yuan, accounting for 12.41% of operating revenue[59]. - The company has a research and development team of 189 members, constituting 24.97% of the total workforce[52]. - The company maintains a strong focus on R&D, leveraging collaborations with renowned universities and research institutions to enhance innovation[59]. - The company has ongoing clinical trials for a cerebrovascular drug (Phase II) and has completed small-scale trials for antiviral and rheumatic drugs[113]. - The company has received approval for an anticoagulant drug in Canada and is currently under review in Europe and Saudi Arabia[114]. - The company has approved antifungal drugs in the US, New Zealand, Australia, and Europe, with ongoing reviews in mainland China and Taiwan[116]. Market and Industry Trends - The global pharmaceutical market is projected to exceed $1.5 trillion by 2023, up from $1,205 billion in 2018[46]. - China's healthcare expenditure increased from CNY 3.5 trillion in 2014 to CNY 6.5 trillion in 2019, with a compound annual growth rate of approximately 13%[48]. - The aging population in China rose from 140 million in 2014 to 180 million in 2019, accounting for about 12.6% of the total population[48]. Risks and Challenges - The company has outlined potential risks in its business operations, which are detailed in the report[11]. - The company faces risks related to product quality, as compliance with GMP and cGMP standards is critical for domestic and international sales[147]. - The company is facing rising raw material prices, necessitating the retention of sufficient earnings for working capital turnover and operational stability[169]. Financial Management and Investments - The net cash flow from investing activities decreased significantly by 4,669.03% to -105,441,197.03 yuan, primarily due to increased payments for land purchases and fixed asset construction[85]. - The net cash flow from financing activities increased by 1,114.75% to 390,197,172.28 yuan, mainly from funds raised through a private placement of shares[85]. - Cash and cash equivalents at the end of the period amounted to 739,105,794.64 yuan, representing 53.49% of total assets[89]. - The company plans to attract and develop talent, focusing on key areas such as R&D, marketing, and management to enhance core competitiveness[146]. - The company aims to retain sufficient earnings for future development and project funding, ensuring sustainable growth[164]. Stock and Shareholder Matters - The company will initiate stock stabilization measures if its stock price remains below the audited net asset value per share for 20 consecutive trading days[177]. - The first choice for stock stabilization is for the controlling shareholder and actual controller to increase their holdings in the company[177]. - If the stock price does not meet the criteria after the controlling shareholder's purchase, the board will consider a buyback of shares within 30 days[183]. - The amount used for share repurchase will not exceed 20% of the net profit attributable to the parent company from the most recent audited financial year[183]. - The company commits to avoiding any business competition with its controlling shareholder and related entities[177]. Corporate Governance - The company has committed to linking the compensation system for directors and senior management to the execution of return measures[186]. - The company has not reported any significant changes in accounting policies or estimates that would affect the financial statements[190]. - There were no significant lawsuits or arbitration matters reported for the year[194]. - The company has not disclosed any employee stock ownership plans or other incentive measures during the reporting period[195].