YUNNAN BAIYAO(SZ:000538)2022-03-25 16:00Financial Performance - The company's operating revenue for 2021 was ¥36,373,919,016.03, representing an increase of 11.09% compared to ¥32,742,766,763.79 in 2020[13]. - The net profit attributable to shareholders for 2021 was ¥2,803,621,556.87, a decrease of 49.17% from ¥5,516,072,178.81 in 2020[13]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,338,625,079.81, an increase of 15.17% compared to ¥2,898,877,590.10 in 2020[13]. - The net cash flow from operating activities for 2021 was ¥5,223,278,282.50, up 36.42% from ¥3,828,906,632.02 in 2020[13]. - The total assets at the end of 2021 were ¥52,292,765,646.22, a decrease of 5.30% from ¥55,219,448,243.00 at the end of 2020[13]. - The net assets attributable to shareholders at the end of 2021 were ¥38,226,136,908.89, a slight increase of 0.46% from ¥38,052,550,013.05 at the end of 2020[13]. - The basic earnings per share for 2021 were ¥2.21, down 48.84% from ¥4.32 in 2020[13]. - The diluted earnings per share for 2021 were ¥2.18, a decrease of 49.42% compared to ¥4.31 in 2020[13]. - The total profit for the year was 3.482 billion yuan, a decrease of 48.80% compared to 6.801 billion yuan in the previous year[35]. - The company achieved a significant milestone by upgrading its MSCI ESG rating from BBB to A in August 2021, becoming the highest-rated listed company in Yunnan Province[49]. Dividends and Shareholder Returns - The company reported a cash dividend of 16.00 RMB (including tax) for every 10 shares, along with 4 bonus shares (including tax) to all shareholders[3]. - In 2021, Yunnan Baiyao achieved continuous dividends to shareholders for 29 consecutive years since its listing in 1993[22]. - The company distributed cash dividends of 39.00 CNY per 10 shares, totaling 4,916,742,948.00 CNY during the reporting period[104]. - The cash dividend payout ratio was 80% of the distributable profit, which amounted to 5,720,640,713.51 CNY[151]. - The company plans to distribute additional stock dividends of 4 shares for every 10 shares held, pending shareholder approval[152]. Corporate Governance and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[2]. - The company has established a comprehensive internal control system that effectively mitigates operational risks and safeguards assets[107]. - The company maintains a complete separation from its first major shareholders in terms of personnel, assets, finance, and operations, ensuring independence[109]. - The company has a robust governance structure that complies with the requirements set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[108]. - The board of directors held 10 meetings and approved 73 proposals, ensuring compliance with legal and regulatory requirements[105]. - The supervisory board convened 7 meetings and reviewed 39 proposals, maintaining oversight of the company's financial and operational activities[106]. Research and Development - The company aims to develop innovative traditional Chinese medicine for cardiovascular diseases, with clinical trial approval already obtained[65]. - The company is working on the clinical research of a new traditional Chinese medicine, aiming for market registration and approval[65]. - The company has completed the formulation design and production process research for special medical food, with plans for market registration[65]. - Research and development expenses increased by 82.99% to ¥331,359,703.27, driven by new projects including special medical food and biomedical skincare product development[64][66]. - The number of R&D personnel increased by 33.25% to 1,106, with R&D personnel now accounting for 13.07% of the total workforce[66]. Market Expansion and Strategic Initiatives - The company is actively exploring new business areas such as personalized skincare products, health supplements, and home medical devices, in response to market trends[23]. - The company plans to accelerate the opening of D to C platforms in major urban clusters across the country in 2022[30]. - The company aims to enhance its global operations and internationalization, focusing on developing large pharmaceutical companies with high international sales proportions during the "14th Five-Year Plan" period[90]. - The company is committed to optimizing its product and service matrix to become a comprehensive solution provider in the healthcare sector, leveraging big data services[95]. - The company plans to explore the medical beauty sector by developing a personalized skin management system supported by big data and advanced medical expertise[97]. Social Responsibility and Community Engagement - Yunnan Baiyao has been actively involved in poverty alleviation and rural revitalization efforts, providing training for rural doctors and donating medicines to improve healthcare in remote areas[176]. - The company plans to celebrate its 120th anniversary in 2022, focusing on the core strategy of "Guarding Life and Health" to enhance its brand value and social responsibility[177]. - Yunnan Baiyao's commitment to social responsibility is reflected in its long-term planning and implementation of public welfare projects[176]. - The company aims to strengthen its brand value by actively participating in social responsibility initiatives, contributing to sustainable development[176]. Environmental Compliance and Sustainability - Yunnan Baiyao Group reported a total emission of 3 tons/year for nitrogen oxides (NOX) from three boilers, with a concentration of 81 mg/nm3, adhering to the pharmaceutical industry air pollutant discharge standards[171]. - The company achieved a total annual discharge of 8.55 tons for Chemical Oxygen Demand (COD) and 0.22 tons for ammonia nitrogen, both within the simplified management range[171]. - The company has established a comprehensive energy online monitoring system to meet annual energy-saving targets and enhance energy efficiency, contributing to carbon reduction efforts[174]. - Yunnan Baiyao Group has maintained compliance with pollution discharge standards, with no exceedances reported in the current year[172]. Employee Engagement and Development - The total number of employees at the end of the reporting period was 8,464, with 3,651 in the parent company and 4,813 in major subsidiaries[144]. - The employee stock ownership plan for 2021 involved 1,312 participants, representing an increase of over 100% compared to the previous year[146]. - The company conducted over 400 training sessions in 2021, totaling more than 250,000 hours of training for employees[147]. - The company provides comprehensive insurance coverage for employees, including commercial insurance for health protection[145]. Future Outlook and Strategic Goals - The company has set a revenue target of CNY 12 billion for 2022, aiming for a growth rate of approximately 5%[116]. - The company plans to explore potential acquisitions in the health and wellness sector to enhance its product portfolio[122]. - The company is focused on developing new products and technologies to drive growth and meet market demands[181]. - The company is committed to its mission of "guarding life and health" while focusing on technological innovation and organizational change as strategic drivers for future growth[100].