Lionco(SH:603669)2021-04-16 16:00Dividend Distribution - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares to all shareholders, subject to approval at the 2020 annual general meeting[5]. - The company has not proposed any stock bonus or capital reserve transfer to increase share capital in the profit distribution plan[5]. - The company has implemented a stable profit distribution policy to enhance transparency and investor returns, adhering to regulatory requirements[126]. - In 2020, the company distributed cash dividends amounting to CNY 142,688,000, representing 89.14% of the net profit attributable to ordinary shareholders[127]. - In 2019, the cash dividend distribution was CNY 203,840,000, which accounted for 101.11% of the net profit attributable to ordinary shareholders[127]. - The company commits to distributing at least 20% of the distributable profits as cash dividends annually, provided the net profit is positive[130]. - The company can distribute dividends in cash or stock, with a preference for cash dividends when conditions allow[130]. - The company plans to prioritize cash dividends in its profit distribution strategy, especially when the company’s net profit is positive[130]. - The company’s board must complete the distribution of dividends within two months after the shareholders' meeting resolution[130]. Financial Performance - The company's operating revenue for 2020 was approximately ¥1.00 billion, a decrease of 38.78% compared to ¥1.64 billion in 2019[21]. - Net profit attributable to shareholders was approximately ¥160 million, down 20.60% from ¥202 million in 2019[21]. - The net cash flow from operating activities was approximately ¥127 million, a decline of 46.18% from ¥236 million in 2019[21]. - Basic earnings per share decreased by 21.43% to ¥0.22 in 2020 from ¥0.28 in 2019[22]. - The weighted average return on equity was 11.92%, down 2.93 percentage points from 14.85% in 2019[22]. - Total assets increased by 41.95% to approximately ¥2.72 billion at the end of 2020, compared to ¥1.91 billion at the end of 2019[21]. - The company's net assets attributable to shareholders rose by 12.64% to approximately ¥1.48 billion at the end of 2020[21]. - The company achieved operating revenue of CNY 1,001,002,362.94, a decrease of 38.78% compared to the previous year[48]. - The net profit attributable to the parent company was CNY 160,072,900, a decline of 20.60% year-on-year, with a net profit of CNY 67,044,400 after deducting non-recurring gains and losses, down 51.76%[48]. Risk Management - The company has detailed potential risks in the report, which can be found in the section discussing operational conditions[8]. - The company has a comprehensive risk statement regarding future plans and development strategies, cautioning investors about investment risks[6]. - There are no non-operating fund occupations by controlling shareholders or related parties, and no violations in decision-making procedures for external guarantees[7]. - The company has not reported any instances where more than half of the directors could not guarantee the authenticity of the annual report[8]. - The company continues to enhance its governance structure and risk management to ensure compliance and effective operations[47]. - The company faces risks related to market competition, which could lead to revenue fluctuations if products fail to win bids or experience significant price drops in centralized procurement[120]. - The company acknowledges management risks associated with its expanding scale, which could impact operational efficiency and profitability[124]. Research and Development - The company has a robust R&D team of over 180 personnel, collaborating with institutions like Tianjin University to innovate in drug development and technology[39]. - The company is actively pursuing consistency evaluation for generic drugs, with applications for injection omeprazole sodium and injection pantoprazole sodium accepted by the National Medical Products Administration[44]. - The company is focusing on developing new antibiotics to combat drug-resistant bacteria, particularly those causing severe infections[86]. - The company is investing in research and development for innovative therapies to address unmet medical needs in various therapeutic areas[86]. - The company has several key R&D projects, including injectable drugs for various indications, which are currently in the approval process[83]. - The company plans to continue increasing R&D investment and expand its product line through licensing and acquisitions[91]. - The company's R&D investment for the reporting period was 2.03% of operating revenue, significantly lower than the industry average of 12.26%[91]. - The company has reported a significant increase in R&D investment for specific projects, such as 352.04 million RMB for the injection of omeprazole[93]. Market Expansion and Strategy - The company is actively expanding into high-margin new products, particularly in the cardiovascular field, with notable products like injection-grade huperzine A and injection-grade nimodipine[34]. - The company has established a comprehensive marketing network covering over 6,500 secondary hospitals, leveraging regional distributors for effective market penetration[32]. - The company is exploring strategic partnerships and acquisitions to enhance its product portfolio and market reach[79]. - The company plans to adjust its sales strategy to enhance the promotion of non-centralized procurement products, aiming to increase their market share and sales scale[118]. - The company is expanding its market presence by targeting emerging markets, which are expected to contribute to revenue growth in the coming years[86]. - The company plans to raise up to 525 million yuan through a public offering of convertible bonds to fund the construction of the Meian production base project in Hainan[101]. Environmental and Social Responsibility - The company is committed to complying with environmental protection standards, but future stricter regulations may increase operational costs[123]. - The company actively participates in social responsibility efforts, including donations of medical supplies during the COVID-19 pandemic to support local communities[158]. - The company has established a poverty alleviation fund and is involved in direct assistance to impoverished households through various initiatives[154]. - The company reported a total wastewater discharge of 0.381 tons/year for suspended solids, which is below the regulatory limit of 50 mg/L[160]. - The company achieved a total nitrogen discharge of 0.316 tons/year, well under the limit of 30 mg/L[160]. - The company has established a solid waste storage area for hazardous waste, ensuring compliance with environmental regulations[166]. Corporate Governance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The company has not disclosed any employee stock ownership plans or other incentive measures during the reporting period[139]. - The company has committed to ensuring that the compensation system is linked to the execution of return compensation measures[132]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 3.92 million yuan[199]. - The remuneration for directors and supervisors is determined by the shareholders' meeting, while senior management remuneration is decided by the board of directors[199]. - The company has not faced any risks of suspension or termination of listing during the reporting period[137]. - The company has not reported any major related party transactions during the year[140]. Financial Management - The company has entrusted financial management with a total amount of ¥34,700,000 for trust financial products and ¥44,000,000 for bank financial products, with an outstanding balance of ¥18,000,000[145]. - The company has multiple non-principal guaranteed fixed income financial management products with expected annualized returns ranging from 6.50% to 9.60%[147]. - The company has signed multiple short-term loans totaling RMB 100 million, with various banks, including Industrial and Commercial Bank of China and Agricultural Bank of China, with loan periods ranging from 2018 to 2022[152]. - The company has no overdue amounts for entrusted financial management, and all principal and interest have been recovered on time[147]. - The company has no significant related party transactions or guarantees that have not been disclosed in temporary announcements[141]. Shareholder Information - The total number of ordinary shares increased from 509,600,000 to 713,440,000 following the completion of the 2019 profit distribution and capital reserve conversion plan[178]. - The total number of ordinary shareholders increased from 18,818 to 20,991 during the reporting period[182]. - The largest shareholder, Lingkang Holdings Group Co., Ltd., held 49.50% of the shares, amounting to 353,152,800 shares[184]. - The company reported a significant increase in shareholding, with the chairman and general manager, Tao Lingping, increasing her shareholding from 34,398,000 to 48,157,200 shares, a growth of 39.93%[193].