Lionco(SH:603669)2019-04-26 16:00Financial Performance - The company's operating revenue for 2018 was approximately ¥1.67 billion, representing a 66.10% increase compared to ¥1.01 billion in 2017[20]. - Net profit attributable to shareholders increased by 13.48% to approximately ¥182.70 million from ¥161.01 million in 2017[20]. - The total assets at the end of 2018 reached approximately ¥2.07 billion, a 25.20% increase from ¥1.65 billion in 2017[20]. - The basic earnings per share for 2018 was ¥0.50, up 13.64% from ¥0.44 in 2017[21]. - The company's total revenue reached CNY 166,943.13 million, with a gross margin of 87.90%, reflecting an increase of 7.88 percentage points compared to the previous year[50]. - The revenue from the anti-infection segment was CNY 66,472.01 million, with a gross margin of 84.31%, up by 8.23 percentage points year-on-year[50]. - The digestive system category generated a revenue of 56,918.15 million RMB, achieving a gross margin of 94.79%, with a year-on-year revenue increase of 106.98% and a cost increase of 31.60%[90]. - The gross margin for the parenteral nutrition category was reported at 79.41%, with a revenue of 27,959.41 million RMB[90]. Shareholder Returns - The board proposed a cash dividend of 4.50 RMB per 10 shares, totaling 16.38 million RMB, and a capital reserve conversion of 4 shares for every 10 shares held, amounting to 145.6 million shares[5]. - The company reported a cash dividend of 163.8 million RMB for the year 2018, representing 89.65% of the net profit attributable to ordinary shareholders[128]. - In 2017, the cash dividend was 104 million RMB, which accounted for 64.59% of the net profit attributable to ordinary shareholders[128]. - The cash dividend for 2016 was 31.2 million RMB, making up 20.27% of the net profit attributable to ordinary shareholders[128]. - The company plans to distribute cash dividends amounting to no less than 20% of the distributable profits for the year[131]. Risk Management - The company has detailed potential risks in the report, which can be found in the section discussing operational conditions and analysis[7]. - The company emphasizes that forward-looking statements regarding future business plans and strategies do not constitute a commitment to investors[6]. - The company reported a risk of research and development failure for some in-progress products due to the high-tech, high-risk, and high-value nature of pharmaceutical products, which have long development cycles[85]. - The company is aware of the potential impact of stricter environmental regulations on operational costs and is committed to compliance with environmental standards[123]. Research and Development - The R&D team consists of over 200 members, focusing on market-driven product development and innovation in drug formulations[38]. - The company has obtained production approval for 189 drug varieties, with 48 included in the national medical insurance directory[29]. - The company has established a nationwide marketing network covering over 6,000 secondary hospitals[29]. - The company has a total of 68 generic drug varieties in the process of applying for clinical or production approval, indicating ongoing expansion in its product pipeline[84]. - The company plans to enhance R&D investment and improve product quality stability, aiming for a higher success rate in new product and technology development[77]. - The company has made significant advancements in its R&D strategy, focusing on technological innovation and market demand[84]. Market Strategy - The company aims to expand its business scope while solidifying its main operations to improve overall risk resistance[42]. - The company is actively pursuing consistency evaluations for injectable generic drugs, enhancing its core competitiveness[42]. - The company plans to enhance its marketing network with a budget of 38.04 million yuan, achieving 68.73% completion[102]. - The company will enhance its marketing and sales management to improve market penetration, especially in secondary and lower-tier medical institutions[116]. Corporate Governance - The audit report issued by Tianjian Accounting Firm was a standard unqualified opinion, ensuring the accuracy and completeness of the financial report[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures for providing guarantees to external parties[7]. - The company has a commitment to not engage in any competing business activities that may affect its main operations[130]. Social Responsibility - The company is actively involved in poverty alleviation efforts, contributing funds and resources to support local communities[155]. - The company donated CNY 3 million to the Shenzhen Beautiful Garden Teacher Education Foundation to improve teaching standards in impoverished areas[161]. - The company is conducting research on artificial cultivation techniques for wild Tibetan medicinal materials to help local farmers find employment[160]. - The company adheres to labor laws and regulations, ensuring the protection of employee rights and enhancing their professional skills through various training programs[161]. Environmental Compliance - The company has no exceedances in wastewater discharge standards, ensuring compliance with environmental regulations[163][164]. - The company has a registered emergency response plan for environmental incidents, filed with the local environmental bureau[172]. - The company has a total nitrogen oxide emissions limit of 3.61 tons per year for the first three years[165]. - The company has a particulate matter emissions limit of 0.58056 tons per year for the first three years[165].