CISEN(SH:603367)2019-03-20 16:00Financial Performance - The company reported a significant increase in net profit for 2018, with a year-on-year growth of 23.6%[19]. - The company's operating revenue for 2018 was approximately ¥3.81 billion, representing a 28.54% increase from ¥2.96 billion in 2017[22]. - Net profit attributable to shareholders was approximately ¥503.54 million, a 37.12% increase from ¥367.22 million in 2017[22]. - The net profit after deducting non-recurring gains and losses was approximately ¥481.03 million, up 43.93% from ¥334.21 million in 2017[22]. - The company's total assets increased by 10.68% to approximately ¥5.25 billion compared to ¥4.74 billion at the end of 2017[22]. - Basic earnings per share rose to ¥1.11, a 14.43% increase from ¥0.97 in 2017[22]. - The company's cash flow from operating activities was ¥406,675,789.49, a decrease of 7.49% compared to the previous year[50]. - The company reported a total revenue for the year reached approximately ¥3.71 billion, with a year-on-year increase of 29.14%[96]. - The gross profit margin for the overall business was 57.49%, reflecting an increase of 11.36% compared to the previous year[96]. Dividend Distribution - The company plans to distribute a cash dividend of 2.62 RMB per 10 shares, totaling 118,778,486 RMB, based on a net profit attributable to the parent company of 23.6%[6]. - The company distributed a cash dividend of 0.16 RMB per share to all shareholders, totaling 118,778,486 RMB for the year 2018, which represents 23.60% of the net profit attributable to ordinary shareholders[133]. - The cash dividend for 2017 was 1.60 RMB per 10 shares, amounting to 72,536,480 RMB, which was 20.29% of the net profit for that year[134]. - The company has adhered to its cash dividend policy, ensuring continuity and stability in profit distribution while considering long-term interests and sustainable development[133]. Research and Development - R&D expenses amounted to 325.98 million RMB, a 129.56% increase year-on-year, reflecting the company's commitment to innovation[43]. - The company has established multiple research institutions in various locations, enhancing its technological innovation capabilities[84]. - The company aims to enhance its consistency evaluation efforts as a key focus for 2019, establishing a drug research institute to increase investment in R&D[122]. - The company is advancing the development of innovative and generic drugs to meet significant clinical needs, with a focus on consistency evaluation studies for existing products[83]. - The company has a research team of 691 members, with over 60% holding doctoral or master's degrees[83]. Market Position and Strategy - The company is transitioning towards high-end generics and innovative drugs, with a focus on high growth in large-volume infusion and external medications[37]. - The company has established a comprehensive sales system and marketing support structure to enhance customer management and service[38]. - The company has developed a robust terminal hospital sales system, maintaining good relationships with nearly 200 direct sales hospitals[101]. - The company has a diverse product portfolio, with significant sales in various therapeutic areas, including anti-tumor and digestive system medications[96]. - The company recognizes the potential risks from market competition and policy changes, which may compress profit margins and increase operational risks[130]. Compliance and Risk Management - The company has not identified any major risks that could materially affect its operations during the reporting period[6]. - The company is committed to maintaining compliance with regulatory requirements and has not violated decision-making procedures for external guarantees[6]. - The audit report issued by Da Xin Accounting Firm confirms the financial statements are accurate and complete[5]. - The company has not encountered any issues related to the occupation of funds or overdue receivables during the reporting period[140]. Environmental Responsibility - The company has not been classified as a key pollutant discharge unit by environmental protection authorities, emphasizing its commitment to environmental protection and sustainable development[188]. - In 2018, the subsidiary Shandong Chenlong Pharmaceutical Co., Ltd. reported wastewater discharge with a chemical oxygen demand (COD) of 63 mg/L, significantly below the limit of 500 mg/L, with an annual total discharge of 26.22 tons[188]. - The actual annual wastewater discharge volume was 10,942 m³, with total nitrogen levels at 31.6 mg/L, below the limit of 40 mg/L, resulting in an annual total nitrogen discharge of 2.7848 tons[188]. - The company has implemented strict pollution control measures in accordance with environmental laws and regulations[199]. Investment and Financial Management - The company invested a total of RMB 2.063 billion in bank wealth management products, with an outstanding balance of RMB 998 million[155]. - The company also invested RMB 1.58 billion in bank wealth management products using raised funds, with an outstanding balance of RMB 800 million[155]. - The company raised a total of RMB 1,166 million through a public offering, with a net amount of RMB 1,110 million after deducting issuance costs[180]. - The company utilized RMB 800 million of idle fundraising for cash management as of the end of 2018[182]. Social Responsibility - The company provided financial assistance of RMB 0.08 million to 3 impoverished students and 1 disabled person during the reporting period[183]. - The company has established a follow-up assistance mechanism to ensure the effectiveness of poverty alleviation efforts[187]. - The company has committed to continuing its support for social assistance work in line with national poverty alleviation strategies[187].