NKF(SH:603707)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥3.69 billion, representing a 26.48% increase compared to ¥2.91 billion in 2020[17]. - Net profit attributable to shareholders for 2021 was approximately ¥1.06 billion, a 31.41% increase from ¥806 million in 2020[17]. - The net cash flow from operating activities increased by 220.82% to approximately ¥683.63 million, primarily due to rapid expansion in formulation sales[17]. - The total assets at the end of 2021 were approximately ¥8.22 billion, a 6.43% increase from ¥7.72 billion at the end of 2020[17]. - The weighted average return on equity for 2021 was 25.29%, an increase of 0.83 percentage points from 24.46% in 2020[18]. - Basic earnings per share for 2021 were ¥0.87, reflecting a 31.82% increase from ¥0.66 in 2020[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥1.02 billion, a 33.47% increase from ¥767 million in 2020[17]. - The company's net assets attributable to shareholders increased by 44.47% to approximately ¥5.38 billion at the end of 2021[17]. - The quarterly revenue for Q4 2021 was approximately ¥906.60 million, with a net profit of approximately ¥214.60 million[21]. - The total profit reached 1,203.75 million yuan, an increase of 31.61% compared to the previous year[27]. - The company achieved a revenue of 3,686.69 million yuan in 2021, representing a year-on-year growth of 26.48%[27]. Market Expansion and Product Development - The company is focused on expanding its international market presence and enhancing domestic pharmaceutical development[2]. - The company has established stable multi-product collaborations with several GPOs in the U.S., enhancing its market presence[26]. - The company has nearly 30 products operating in the U.S. market, positioning it among the mid-tier pharmaceutical sales teams[26]. - In 2021, the company received FDA approval for 11 ANDAs, the highest number for a domestic company in the U.S. market[29]. - The company is actively expanding its product registration and sales in nearly 30 countries, aiming for global market participation[27]. - The company is focusing on developing a comprehensive product pipeline that includes both generic and innovative drugs[29]. - The company aims to establish partnerships with high-quality Chinese pharmaceutical firms to expand its product offerings in the U.S. market[30]. - The company has successfully launched multiple products in China, including the first domestic product to pass consistency evaluation, significantly addressing the needs of leukemia patients[31]. - The company’s subsidiary Meitheal reported revenue of CNY 1.04 billion, representing over 50% growth year-on-year, driven by successful market penetration in the U.S.[35]. - The company has established a strong presence in the U.S. market with nearly 30 sterile injectable products approved by the FDA, enhancing its competitive position[35]. Research and Development - The company has nearly 400 R&D personnel, including around 60 with master's or doctoral degrees, enhancing its research capabilities[46]. - The company’s R&D expenses increased by 17.82% to CNY 220.95 million, reflecting its commitment to innovation[53]. - The company has a total of 66 ongoing research projects, with 34 projects already submitted for approval as of the end of 2021[97]. - Research and development expenses for the company reached 27,521.41 million RMB, reflecting a year-on-year growth of 24.28%[97]. - The company has established a dedicated biopharmaceutical business unit to enhance its capabilities in large molecule product development, production, quality, and registration[88]. - The company is enhancing its manufacturing capabilities by increasing production sites for key products like Bivalirudin in the U.S.[103]. Governance and Compliance - The company emphasizes strict compliance with information disclosure regulations, ensuring timely and accurate reporting to shareholders[130]. - The board of directors and supervisory board operated in accordance with legal and regulatory requirements, maintaining objective and scientific decision-making processes[130]. - The company has established a dedicated department for investor relations, enhancing communication with minority shareholders and ensuring their rights are protected[130]. - The company has not reported any significant differences in governance practices compared to regulatory requirements[129]. - The management team has extensive experience in both domestic and international markets, contributing to the company's strategic direction and operational efficiency[133]. - The company has engaged in related party transactions, which were confirmed in the board meeting[140]. Environmental Responsibility - The company has implemented a wastewater treatment facility with a daily processing capacity of approximately 400 tons at the API plant, which is currently operating normally[171]. - The company has established a comprehensive environmental emergency response plan, which was filed with the local environmental protection authority[174]. - The company has conducted third-party monitoring of wastewater, waste gas, and noise, with all pollution indicators meeting the discharge standards[175]. - The company has adhered to the latest solid waste law requirements by posting hazardous waste information and identification signs at its facilities[177]. - The company has received environmental impact approvals for various projects, including the injectable drug production line and the anti-tumor product upgrade project[179]. Risk Management - The company faces industry policy risks due to increasing regulatory measures in the pharmaceutical sector, which could impact its future development[124]. - The company is exposed to raw material price fluctuations, particularly due to the impact of African swine fever on heparin raw material prices, which could affect production costs[124]. - The company is actively working to mitigate risks related to sudden events and natural disasters by implementing a business continuity plan[126]. - The company is focused on reducing exchange rate risks associated with its overseas business primarily settled in USD, employing strategies like natural hedging and shortening sales cycles[126]. Shareholder Engagement - The company plans to implement a stock incentive plan for 2021, which was discussed in the board meetings[139]. - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed in cash if conditions are met[153]. - The company held its annual general meeting on May 17, 2021, where several key resolutions were passed, including the approval of the 2020 annual financial report and profit distribution plan[130]. - The annual profit distribution led to significant shareholding increases for key executives, with Tang Yongqun's shares increasing by 56,784,364 and Xie Juhua's by 78,050,228[132].