Jiangsu Jibeier Pharmaceutical (SH:688566)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥509.69 million, a decrease of 9.94% compared to ¥565.97 million in 2020[23]. - The net profit attributable to shareholders for 2021 was approximately ¥114.90 million, down 11.42% from ¥129.72 million in 2020[23]. - The net profit after deducting non-recurring gains and losses was approximately ¥93.18 million, a decrease of 18.34% compared to ¥114.10 million in 2020[23]. - Basic earnings per share decreased by 20.78% to 0.61 yuan per share compared to 2020[25]. - The weighted average return on equity fell by 4.40 percentage points to 7.22% in 2021[25]. - The gross profit margin for the pharmaceutical manufacturing segment was 87.81%, a decrease of 0.87 percentage points compared to the previous year[145]. - Sales of the main product, Likujun tablets, generated revenue of ¥378,463,930.34, a decline of 17.07% year-on-year[145]. - The company reported a total revenue of 97,325,000 RMB, with a net profit of 2,643,020 RMB for the year 2021[112]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 2.40 per 10 shares, totaling RMB 44,865,984.00 (including tax) for the 2021 fiscal year[7]. - The total cash dividends for 2021 will amount to RMB 89,731,968.00 (including tax), representing 78.09% of the net profit attributable to shareholders[8]. Audit and Governance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[6]. - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[10]. - The company has not reported any special arrangements for corporate governance[9]. - The company has not experienced any violations of decision-making procedures regarding external guarantees[10]. Research and Development - The total R&D expenditure for the year was approximately ¥29.28 million, a decrease of 12.71% compared to the previous year[107]. - R&D expenditure accounted for 5.75% of the company's total revenue, down from 5.93% in the previous year, representing a decrease of 0.18 percentage points[107]. - The company is developing several new drugs, including JJH201501 for depression and JJH201601 for cancer treatment, among others[117]. - The company has a pipeline of innovative drugs, including Lifitegrast derivatives for dry eye treatment and JBE-01 for anesthesia and analgesia, currently in preclinical stages[173]. - The company has not canceled any major R&D projects or failed to obtain approvals for any products during the reporting period[174]. Market and Industry Trends - The global pharmaceutical market reached $1,298.8 billion in 2020, with a projected CAGR of 5.7% to reach $1,711.4 billion by 2025[76]. - The Chinese pharmaceutical market is expected to grow at a CAGR of 9.6% over the next five years, reaching ¥2,991.1 billion by 2030[79]. - The pharmaceutical industry is expected to benefit from multiple factors, including an aging population and health consumption upgrades, leading to promising development opportunities in the future[82]. Product Development and Innovation - The company is actively advancing new drug research, with several candidates in various stages of clinical trials, including JJH201501 for depression, which is currently in Phase IIb trials[45]. - The company has successfully expanded the sales of its product, Nicergoline tablets, across 26 provinces in China, contributing to stable revenue growth[42]. - The company has developed a new antidepressant drug JJH201501, which is currently in the IIb clinical trial phase after completing Phase I trials and has received patent authorization in China, the US, and Europe[171]. - The oncology drug JJH201601 is preparing to submit for clinical application after completing pharmacological and toxicological studies[172]. Risks and Challenges - The company has detailed various risks faced in its production and operation processes in the report[5]. - The company faces risks related to the potential for its main products to be included in centralized procurement lists, which could lead to significant price reductions and impact profitability[139]. - The company is exposed to risks from potential breakthroughs in the treatment areas of its pipeline drugs, which could lead to competitive pressures[128]. Marketing and Sales Strategy - The company has established a comprehensive marketing network across all provinces in China, enhancing the promotion of its key products[43]. - The marketing network covers over 20,000 hospitals and medical institutions nationwide, including 65 of the top 100 chain pharmacies[120]. - The company intends to increase the market promotion efforts for existing products like Likujun tablets and Nifedipine tablets to capture untapped market segments[200]. Financial Position and Assets - As of the end of 2021, the net assets attributable to shareholders were approximately ¥1.60 billion, an increase of 2.07% from ¥1.57 billion at the end of 2020[23]. - Total assets reached 1.8186869 billion yuan, with net assets attributable to shareholders at 1.6019851 billion yuan by the end of 2021[38]. - Accounts receivable and notes receivable totaled CNY 146.60 million, representing 10.43% of current assets and 28.76% of operating revenue, indicating potential credit risk as revenue grows[137].