NKF(SH:603707)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was CNY 3,712,720,455, representing a 0.71% increase compared to 2021 [22]. - The net profit attributable to shareholders for 2022 was CNY 1,090,833,203.91, reflecting a 2.98% increase year-over-year [22]. - The net cash flow from operating activities decreased by 12.90% to CNY 595,445,673.26 in 2022 [22]. - The total assets at the end of 2022 reached CNY 10,010,102,945.14, a 21.82% increase from the previous year [22]. - The basic earnings per share for 2022 remained stable at CNY 0.67, while diluted earnings per share slightly decreased by 1.47% to CNY 0.67 [23]. - The weighted average return on equity for 2022 was 18.82%, down 6.47 percentage points from 2021 [24]. - The company reported a total of CNY 10,548,964.43 in non-recurring gains and losses for 2022 [30]. - The company achieved total operating revenue of CNY 371,272.05 million, a year-on-year increase of 0.71%, while total profit decreased by 1.53% to CNY 118,536.93 million [67]. - The net profit attributable to shareholders increased by 2.98% to CNY 109,083.32 million, with a net profit of CNY 108,028.42 million after deducting non-recurring gains and losses, reflecting a growth of 5.49% [67]. Research and Development - R&D investment amounted to 24,582.47 million RMB, representing 3.86% of operating revenue and 10.06% of net assets [123]. - The company's R&D investment as a percentage of operating revenue was 8.39%, higher than the industry average of 17,953.70 million RMB [125]. - The R&D investment capitalized ratio was 15.39%, indicating a reasonable alignment with the company's project development progress [126]. - Major R&D projects included RD-2021-NP006(Z) with an investment of 3,261.65 million RMB, showing a year-on-year increase of 268.40% [127]. - The company has 58 ongoing research projects, with 32 projects submitted for approval, focusing on high-demand therapeutic areas such as anti-infection and anti-tumor drugs [113]. - The company is focusing on expanding its product portfolio with new drug applications, particularly in the fields of antibiotics and oncology [117]. - The company has a strong pipeline with 9 projects currently under U.S. approval, indicating robust growth potential [119]. - The company is actively pursuing regulatory approvals in Europe for several products, enhancing its market reach [119]. Market Expansion and Strategy - The company is focused on entering the international pharmaceutical market with its capabilities [3]. - The company aims to establish a comprehensive commercial competitive capability in the U.S. market, focusing on both small molecule and large biological drugs [36]. - The company is expanding its product pipeline in the U.S. market to approximately 40 products, enhancing its market presence and profitability [34]. - The company is actively exploring the nucleic acid drug field and has developed platforms for small molecules, peptides, and complex formulations [59]. - The company is expanding its business in European and other global markets, leveraging its production and quality advantages to enhance its influence in the global heparin market [50]. - The company aims to provide differentiated CDMO services in the biopharmaceutical sector, capitalizing on its global regulatory experience to achieve higher value service revenues [52]. - The company is committed to expanding its market presence by rapidly increasing the number of its formulations in hospitals and boosting sales volume per hospital [149]. Corporate Governance and Compliance - The company emphasizes its commitment to the authenticity, accuracy, and completeness of the annual report, with all board members present at the meeting [4]. - The company has established specialized committees under the board, including an audit committee and a strategic committee [182]. - The company's governance practices comply with relevant laws and regulations, ensuring transparency and protection of shareholder rights [159]. - The company has actively engaged with minority shareholders to gather feedback and ensure their rights are upheld [160]. - The board of directors held six meetings during the year, with three conducted in person and three via communication methods [180]. Dividend Policy - The company plans to distribute a cash dividend of 1.15 CNY per 10 shares to all shareholders, pending approval at the 2022 annual general meeting [5]. - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed as cash dividends if conditions are met [194]. - The company reported a net profit attributable to ordinary shareholders of RMB 1,090,833,203.91, with a cash dividend amounting to RMB 185,963,610.74, representing 17.05% of the net profit [198]. - The company did not propose a cash profit distribution plan despite having positive profits available for distribution to shareholders [197]. Operational Highlights - The company has six sterile injection production lines approved by the US FDA, enhancing its production capacity [37]. - The company has established a strong position in the sterile injectable market, being one of the largest exporters of injectables in China, with a significant share of its formulation business coming from exports to the U.S. [94]. - The company has multiple sterile injectable production lines certified by the FDA, enhancing its competitive advantage in the international market [95]. - The company has successfully shortened the product development and approval cycle, with several products approved within approximately 10 months [95]. - The company has established a solid supply system with upstream raw material suppliers, enhancing operational efficiency [155]. Financial Position and Assets - As of December 31, 2022, the company reported total assets of CNY 1,001,010.29 million and equity attributable to shareholders of CNY 617,064.15 million [67]. - Cash and cash equivalents at the end of the period reached ¥1,388,512,343.62, accounting for 13.87% of total assets, a 110.84% increase compared to the previous period [89]. - Short-term borrowings increased to ¥1,956,863,361.92, representing 19.55% of total assets, a 24.59% increase from the previous period [90]. - The company reported a significant increase in other equity investments to ¥61,602,536.03, up 222.07% from ¥19,127,100.00 in the previous period [90]. Employee and Management - The total number of employees increased by 10% in 2022, reflecting the company's growth and expansion strategy [168]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 4.248 million yuan [174]. - The company has a performance evaluation system linked to employee roles and skills, promoting a culture of participation in management [191]. - The company has a training plan that includes differentiated courses for various employee levels, focusing on both technical and managerial skills [192].