DALI PHARMACEUTICAL(SH:603963)2021-04-21 16:00Dividend Distribution - Dali Pharmaceutical's cash dividend distribution plan proposes a cash dividend of 0.46 RMB per 10 shares, totaling 10,106,200 RMB based on 21,970,000 shares[5]. - The company does not plan to increase capital reserves to expand share capital this year[5]. - The company has a cash dividend policy that mandates a minimum cash dividend of 20% of the distributable profit if the net profit is positive and cash flow is sufficient[152]. - In mature stages without significant capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[152]. - For the fiscal year 2019, the company did not distribute cash dividends but instead increased capital by 50,700,000 shares, translating to a 30% stock dividend (3 shares for every 10 shares held)[155]. - The company plans to maintain a stable profit distribution policy that balances investor returns with sustainable development[152]. Financial Performance - The company's operating revenue for 2020 was approximately ¥213.58 million, a decrease of 27.43% compared to ¥294.32 million in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥3.23 million, down 76.07% from ¥13.51 million in 2019[22]. - The basic earnings per share for 2020 was ¥0.01, a decline of 83.33% from ¥0.06 in 2019[23]. - The weighted average return on equity decreased to 0.69% in 2020 from 2.9% in 2019, a reduction of 2.21 percentage points[23]. - The net cash flow from operating activities was negative at approximately -¥6.36 million in 2020, compared to ¥7.33 million in 2019, a decrease of 186.73%[22]. - The total assets at the end of 2020 were approximately ¥578.71 million, an increase of 3.10% from ¥561.33 million at the end of 2019[22]. Operational Risks and Challenges - The company reported no significant operational risks that could materially affect its business during the reporting period[7]. - The company faced challenges due to the COVID-19 pandemic, which led to a significant reduction in patient visits and a corresponding decline in drug sales[24]. - The company faced significant challenges due to the COVID-19 pandemic, leading to reduced drug demand and sales volume[58]. - The company is facing risks related to drug procurement and bidding processes, which could impact sales in public hospitals if products do not win bids in certain provinces[127]. - The implementation of national policies on reasonable drug use and the introduction of a monitoring list for drug usage may affect the sales of traditional Chinese medicine injections[129]. Research and Development - The company has established strategic partnerships with several universities and research institutions to enhance its innovation capabilities[45]. - Research and development efforts include collaboration with Zhejiang University to improve product quality and efficacy[53]. - The company is enhancing the technological content and market competitiveness of its leading products through continuous research and development efforts[93]. - The company is actively pursuing the re-evaluation of key traditional Chinese medicine injections in response to national policies[93]. - The company has a total of 18 ongoing research projects, with significant progress in several key products, including Huangqi Injection and Xingnaojing Injection[93]. - The company’s R&D expenditure for the reporting period accounted for 1.32% of operating revenue, with a net asset ratio of 0.60%[102]. Marketing and Sales Strategy - The company has built a robust marketing system with specialized departments for market management, academic promotion, and bidding[44]. - The marketing network covers the entire country, with a focus on direct distribution and the development of private medical institutions to maintain market share[38]. - The company is enhancing its marketing efforts and adjusting sales strategies to stabilize and expand its market share[58]. - The company plans to enhance marketing efforts, particularly for Shenmai injection, with increased incentives for sales personnel and distributors[122]. - The major sales model involves centralized management through the Kunming Sales Center, focusing on direct distribution and academic promotion[107]. Compliance and Governance - The company’s board of directors and management guarantee the accuracy and completeness of the annual report[8]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[7]. - The company has established a framework to avoid conflicts of interest and ensure fair treatment of all shareholders[163]. - The company has retained the accounting firm Xinyong Zhonghe for 2020, with an audit fee of RMB 600,000[170]. Environmental Responsibility - The company has established two wastewater treatment systems with capacities of 200 m³/d and 80 m³/d, both operating stably during the reporting period[190]. - The average concentration of COD in wastewater discharge was 19.6667 mg/L, with a total annual discharge of 0.3558 tons, well below the regulatory standards[187]. - The company’s total pollutant emissions from wastewater and air were compliant with environmental standards, with no exceedances reported[188]. - The company has implemented a comprehensive environmental monitoring plan, conducting daily self-tests and annual third-party assessments[193]. - The company donated RMB 20,000 to support rural community environmental improvement projects in Dali[184]. Asset Management - The company has fixed assets valued at ¥30,589,052.03 and intangible assets valued at ¥43,848,965.20, both secured by loans[81]. - The company’s total assets for its subsidiary Dali Pharmaceutical Sales Co., Ltd. were CNY 8.51 million, with a net loss of CNY 1.25 million as of December 31, 2020[118]. - The company has entrusted RMB 240,000,000 in bank wealth management products, with the entire amount remaining unexpired[178]. - The company reported a total revenue of 30 million in 2020, reflecting a growth of 3.5% compared to the previous year[182]. Corporate Social Responsibility - The company made donations totaling RMB 1 million to the Dali Red Cross for COVID-19 prevention efforts and donated products worth RMB 2.8673 million to various charitable organizations[186]. - The company donated drugs worth 2.8673 million RMB to support COVID-19 relief efforts, enhancing its corporate reputation[57].