INT'L GROUP(SZ:000411)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was ¥24.6 billion, representing a 20.05% increase compared to ¥20.49 billion in 2018[6]. - Net profit attributable to shareholders for 2019 was ¥151.09 million, a 60.99% increase from ¥93.85 million in 2018[6]. - The net profit after deducting non-recurring gains and losses was ¥122.65 million, up 35.29% from ¥90.66 million in 2018[6]. - The net cash flow from operating activities was ¥220.56 million, reflecting a 32.62% increase from ¥166.31 million in 2018[6]. - Basic and diluted earnings per share for 2019 were both ¥0.66, a 46.67% increase from ¥0.45 in 2018[6]. - Total assets at the end of 2019 were ¥10.77 billion, a 19.76% increase from ¥8.99 billion at the end of 2018[6]. - The total profit reached 466.1361 million yuan, reflecting a growth of 52.05% compared to the previous year[37]. - The net profit for 2019 reached approximately ¥337.67 million, marking a 50.84% increase from ¥223.86 million in 2018[48]. - The gross profit margin for the pharmaceutical wholesale industry was 6.18%, with a year-on-year increase of 0.13%[54]. - The pharmaceutical retail sector saw a significant revenue increase of 57.87%, with total revenue of approximately ¥1.36 billion in 2019[52]. Dividends and Shareholder Returns - The company reported a cash dividend of 0.61 yuan per 10 shares (including tax) based on a total of 248,939,935 shares[4]. - The cumulative distributable profit available for shareholders as of December 31, 2019, was CNY 22,055,640.45, indicating a cash dividend payout ratio of 68.8%[117]. - The cash dividend for 2018 was CNY 26,968,492.98, which represented 28.74% of the net profit for that year[115]. - The company has committed to distributing no less than 10% of its distributable profits as cash dividends for the 2018 fiscal year[1]. Business Operations and Strategy - The company has maintained its main business focus on pharmaceutical and medical device wholesale, with no changes during the reporting period[15]. - The company aims to enhance its core competitiveness through a strategy of "internal growth, external expansion, integration improvement, innovative development, and ecological collaboration" in 2020[100]. - The company plans to focus on drug wholesale while rapidly developing retail and medical device businesses, aiming to strengthen its market share in both tender and non-tender segments[105]. - The company is exploring various business models, including O2O and online ordering with store delivery, to enhance its pharmaceutical supply chain services[107]. - The company is focused on expanding its market presence and enhancing its product offerings in the pharmaceutical sector[96]. Acquisitions and Investments - The company completed a non-public stock issuance, raising a total of 467 million yuan, which will enhance its capital structure and support rapid business development[38]. - The company added 7 subsidiaries and acquired 6 companies during the reporting period, while one subsidiary was deregistered[58]. - The company completed acquisitions in the medical device sector, including a 50.69% stake in a medical device wholesale and retail company for 128 million yuan[79]. - The total investment in the medical device acquisitions amounted to 1,166.00 million yuan, with a 51% ownership stake[79]. - The company established a new subsidiary, Zhejiang Yinte Pharmaceutical Valley E-commerce Co., Ltd., with a registered capital of CNY 40 million on June 18, 2019[126]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements related to development strategies and future plans[4]. - The company is committed to strict compliance with drug quality management standards to mitigate risks related to product quality and reputation[102]. - The company will implement effective cash flow management and strengthen accounts receivable management to address liquidity risks[103]. - The company has maintained compliance with its commitment to avoid competition with Yinte Group and its subsidiaries[1]. Market and Industry Insights - The company anticipates that the pharmaceutical circulation market will continue to expand due to factors such as aging population and increased health spending[97]. - In the first three quarters of 2019, the total sales of major pharmaceutical products in China reached CNY 17,247 billion, with a year-on-year growth of 8.78%[97]. - The retail pharmaceutical market reached CNY 3,449 billion, with a year-on-year growth of 9.97%[97]. - The average growth rate of the top three pharmaceutical companies was 20.6%, significantly higher than the national average growth rate, indicating an acceleration in industry concentration[98]. Corporate Governance and Management - The board of directors confirmed that all members attended the meeting to review the annual report, ensuring accountability for the report's accuracy and completeness[3]. - The company has a diverse management team with backgrounds in various sectors, including pharmaceuticals and trade, enhancing its operational capabilities[194]. - The company’s board includes independent directors, ensuring a level of governance and oversight[190]. - The management team has undergone recent changes, with new appointments aimed at strengthening operational efficiency[193]. Social Responsibility and Community Engagement - The company secured 70% of the provincial pharmaceutical circulation reserve for the 2020-2022 period, demonstrating its commitment to social responsibility[156]. - The company allocated a total of CNY 900,000 for the "消薄" special assistance fund for the Zhangcun village project, aimed at developing traditional Chinese medicine resources[158]. - A donation of CNY 300,000 was made to support poverty alleviation efforts in Sichuan Province, focusing on improving local agricultural practices[160]. - The company plans to continue its "千企结千村" initiative, aiming to strengthen collective economies in weak villages and ensure no one is left behind in poverty alleviation efforts[162].