JSSH(SZ:000518)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was CNY 417,878,239.86, representing a 5.65% increase compared to CNY 395,514,079.67 in 2018[18]. - The net profit attributable to shareholders in 2019 was CNY 14,330,773.52, a significant turnaround from a loss of CNY 29,439,589.94 in 2018, marking an increase of 148.68%[18]. - The net cash flow from operating activities reached CNY 58,632,435.61, up 159.82% from CNY 22,566,810.71 in the previous year[18]. - The basic earnings per share for 2019 was CNY 0.0139, compared to a loss of CNY 0.0286 per share in 2018, reflecting an improvement of 148.60%[18]. - Total assets at the end of 2019 were CNY 915,826,035.12, a slight decrease of 1.09% from CNY 925,876,050.58 at the end of 2018[18]. - The net assets attributable to shareholders increased by 2.39% to CNY 613,528,428.70 from CNY 599,197,655.18 in 2018[18]. - The weighted average return on equity improved to 2.36% in 2019 from -4.80% in 2018, indicating a positive trend in profitability[18]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 9,968,680.96 in 2019, compared to a loss of CNY 30,237,281.18 in 2018, an increase of 132.97%[18]. Revenue Segmentation - The pharmaceutical segment generated ¥337,557,673.22, accounting for 80.78% of total revenue, but saw a decline of 3.71% year-on-year[38]. - The landscape engineering segment experienced a growth of 3.29%, with revenue of ¥28,162,408.25, up from ¥13,633,055.22 in the previous year[38]. - The ecological forestry segment reported revenue of ¥30,336,806.62, down 3.46% from the previous year[38]. - The company's domestic sales accounted for 97.64% of total revenue, amounting to 408,001,287.66 CNY, with a year-on-year increase of 4.69%[42]. - The total sales amount from the top five customers was 186,636,910.72 CNY, representing 44.65% of the annual sales total[51]. Research and Development - The company has established partnerships with several research institutions, enhancing its R&D capabilities with 5 invention patents and 3 new drug certificates[31]. - R&D expenses increased by 241.54% to ¥42,979,055.82, driven by outsourcing to enhance technology and efficiency[53]. - R&D investment reached ¥57,979,055.82, accounting for 13.87% of operating revenue, a significant increase from 3.18% in the previous year[57]. - The company aims to increase the annual production of recombinant human erythropoietin (EPO) by 20-30 times through large-scale cell culture technology, addressing a market demand gap of approximately 80g[55]. Operational Strategy - The company is actively expanding into new business areas, including medical devices and health management services[35]. - The company is focusing on technological innovation and internal management to adapt to the new normal of medical reform[34]. - The company has obtained construction qualifications, which are expected to increase its engineering business volume[35]. - The company has not made any changes to its main business since its listing, indicating stability in its operational focus[17]. Cost Management - Sales expenses decreased by 31.23% to ¥151,300,702.56 due to cost reduction efforts[53]. - The company is focusing on controlling production and procurement costs to improve overall cost management[73]. - Total operating costs decreased to CNY 387,011,303.39 from CNY 417,011,203.77, reflecting a reduction of approximately 7.2%[189]. Governance and Compliance - The company has established a governance structure to protect minority shareholders' rights and ensure compliance with relevant laws and regulations[106]. - The company has been subject to penalties for information disclosure violations, with warnings and fines issued by the China Securities Regulatory Commission[88]. - The company has not faced any major litigation or arbitration matters during the reporting period[87]. - The company has implemented new financial instrument standards starting January 1, 2019, following the Ministry of Finance's revised accounting standards[82]. Shareholder Information - The total number of shareholders at the end of the reporting period was 84,079, with the largest shareholder holding 14% of the shares[117]. - The largest shareholder, Wang Hongming, holds 144,138,394 shares, representing a significant portion of the company's equity[118]. - The company has not engaged in any repurchase transactions among its top 10 shareholders during the reporting period[118]. - The actual controller, Lu Keping, has been in control since at least May 23, 2014, as per regulatory documentation[121]. Employee Management - The total number of employees in the company is 331, with 324 in major subsidiaries and 7 in the parent company[142]. - The employee composition includes 144 production personnel, 23 sales personnel, 89 technical personnel, 17 financial personnel, and 58 administrative personnel[142]. - The total remuneration for the board and senior management during the reporting period is 167.92 million[141]. - Training programs are implemented to enhance the overall quality and business skills of employees, including both internal and external training[144]. Audit and Financial Reporting - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the financial statements[168]. - The company maintained effective internal controls over financial reporting, with no significant deficiencies identified[163]. - The audit report emphasizes the importance of internal controls related to inventory management and impairment provisions[171]. - The company is required to maintain necessary internal controls to prevent material misstatements in financial reporting[174].