Cheng Yi Pharma(SH:603811)2023-04-25 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥654.97 million, a decrease of 5.62% compared to ¥693.96 million in 2021[22]. - The net profit attributable to shareholders for 2022 was approximately ¥161.58 million, down 5.39% from ¥170.80 million in 2021[22]. - The net profit after deducting non-recurring gains and losses was approximately ¥139.98 million, a decrease of 10.45% from ¥156.31 million in 2021[22]. - The cash flow from operating activities for 2022 was approximately ¥165.94 million, an increase of 15.65% compared to ¥143.49 million in 2021[22]. - The total assets at the end of 2022 were approximately ¥1.72 billion, an increase of 29.99% from ¥1.32 billion at the end of 2021[22]. - The net assets attributable to shareholders at the end of 2022 were approximately ¥1.09 billion, up 10.30% from ¥986.31 million at the end of 2021[22]. - Basic earnings per share for 2022 were ¥0.69, a decrease of 5.48% from ¥0.73 in 2021[23]. - The weighted average return on equity for 2022 was 15.66%, down 2.8 percentage points from 18.46% in 2021[23]. Revenue and Sales - The decline in operating revenue was primarily due to market factors affecting sales of products such as calming and brain-nourishing agents, diuretics, vitamins, and intermediates[23]. - Domestic sales accounted for CNY 628.46 million, a decline of 4.60%, while international sales fell by 28.53% to CNY 24.79 million[50]. - The company achieved over 41% market share in nine provinces for its main product, Glucosamine Hydrochloride Capsules, after winning a national procurement bid[32]. - The production of joint drugs reached 121,475.70 million units, an increase of 16.97% compared to the previous year, while sales were 120,698.31 million units, up by 15.45%[53]. - The sales of diuretic drugs decreased by 39.30% to 494.40 million units, with a sales volume of 573.92 million units, down by 20.42%[54]. - The company reported a significant decline in sales of sedative and brain-nourishing drugs, with a sales volume drop of 92.55% to 2,707.45 kg[54]. Research and Development - The company has 17 new products under research, with key products like Aspartate and Ornithine approved[33]. - The total R&D expenditure amounted to 44,304,378.52 yuan, representing 6.76% of total revenue, with a year-on-year increase of 11.56% in R&D expenses[62]. - The company is committed to continuous product research and development, focusing on anti-tumor, circulatory system, and liver protection drugs to expand its product line[41]. - The company is focusing on the consistency evaluation of 10 oral solid preparations, with key products like glucosamine hydrochloride capsules approved[102]. - The company has ongoing research projects for various chemical drugs aimed at treating conditions such as osteoarthritis, dehydration from diarrhea, and chronic hepatitis B[82]. Product Development and Innovation - The company launched four new health food products, aiming to drive sales growth through multi-channel promotion[33]. - The company has developed marine biological pharmaceutical products, primarily focusing on glucosamine hydrochloride capsules (Weiergu), with a market share of over 41% in nine provinces and cities after winning the first bid in the national centralized procurement in August 2020[35]. - The company is focusing on developing treatments for respiratory diseases and viral infections, reflecting a strategic alignment with current healthcare needs[82]. - The company has a pipeline of new products, including those targeting severe infections and heart failure, showcasing its commitment to expanding its therapeutic offerings[82]. Market Strategy and Expansion - The company plans to expand its market presence through the introduction of new drugs and technologies, focusing on therapeutic areas such as joint diseases and viral infections[70]. - The company is expanding its production capabilities with the acquisition of Fujian Huakang Pharmaceutical Co., enhancing its supply chain for key products[44]. - The company is focusing on marine pharmaceuticals, leveraging its location in Wenzhou to develop marine-based drugs[44]. - The company is actively involved in the procurement process, with significant volumes for drugs like Torasemide Injection, which had a procurement volume of 3,853,901 units[75]. Corporate Governance and Compliance - The company has established a robust governance structure to ensure compliance with laws and protect shareholder rights, with no reported issues requiring regulatory remediation[108]. - The board of directors operates independently, ensuring no undue influence from the controlling shareholder, maintaining operational autonomy[109]. - The company has implemented strict information disclosure protocols to enhance transparency and prevent insider trading, safeguarding shareholder interests[110]. - The company is committed to continuous improvement in corporate governance and internal control mechanisms to promote sustainable development[110]. Environmental and Social Responsibility - The company is committed to sustainable development and has implemented pollution prevention measures in line with clean production principles[151]. - The company has ongoing projects, including a marine biopharmaceutical manufacturing project with an annual production capacity of 1000 tons of super fish oil EPA[155]. - The company made a total charitable contribution of 300,000 RMB for public welfare projects during the reporting period[162]. - The company has established a feasible emergency response plan for environmental incidents in November 2022, which was approved by the local environmental authority[157]. Shareholder and Executive Management - The total number of shares held by the chairman, Yan Yiyi, remained unchanged at 55,137,200 shares, with a pre-tax compensation of 1.0466 million yuan[113]. - The total number of shares held by director Qiu Kerong decreased by 600,000 shares, ending the year with 1,908,800 shares, with a pre-tax compensation of 420,100 yuan[113]. - The total pre-tax compensation for all executives during the reporting period amounted to 7.8321 million yuan[114]. - The company appointed Zhao Chunjian as the new general manager and made several changes to the executive team, including the appointment of new vice presidents and a financial director[114]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion CNY[120]. - New product launches are expected to contribute an additional 200 million CNY in revenue, with a focus on innovative healthcare solutions[119]. - The company plans to increase its marketing budget by 20% to support brand awareness and customer engagement initiatives[120].