Huasun(SZ:000790)2019-03-12 16:00Financial Performance - The company's operating revenue for 2018 was CNY 633,417,693.18, representing a year-on-year increase of 7.19% compared to CNY 590,948,888.29 in 2017[19]. - The net profit attributable to shareholders for 2018 was CNY 31,169,352.95, a significant decrease of 81.84% from CNY 171,667,021.23 in the previous year[19]. - Basic earnings per share for 2018 were CNY 0.0556, down 81.85% from CNY 0.3064 in 2017[20]. - The company reported a significant increase of 132.31% in net profit attributable to shareholders after deducting non-recurring gains and losses, amounting to CNY 28,264,800.38[19]. - The company achieved total revenue of CNY 633.42 million in 2018, an increase of CNY 42.47 million, or 7.19% year-on-year[39]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was 28.26 million yuan, an increase of 16.10 million yuan, or 132.31% year-on-year[72]. - The company reported a net profit attributable to shareholders of CNY 31.17 million, with a net profit excluding non-recurring items of CNY 28.26 million, an increase of CNY 16.10 million year-on-year[39]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 107,736,443.01, a 454.20% increase compared to a negative cash flow of CNY 30,416,753.68 in 2017[20]. - The total cash inflow from operating activities was ¥685,034,092.48, a 34.87% increase compared to the previous year[56]. - The net cash flow from investment activities decreased by 116.91%, resulting in a net outflow of ¥46,253,845.93, mainly due to reduced asset disposal proceeds[56]. - The net cash flow from financing activities showed a significant deficit of ¥145,772,600.15, a 1,652.19% increase in outflow compared to the previous year[56]. - The total assets at the end of 2018 were CNY 1,084,104,689, a decrease of 18.25% from CNY 1,326,057,825 at the end of 2017[20]. - The company's net cash flow from operating activities reached 107.74 million yuan, an increase of 138.15 million yuan year-on-year[72]. - The company's total assets at the end of 2018 amounted to ¥1,080,000,000, with cash and cash equivalents decreasing by 1.52% to 31.92% of total assets[63]. Revenue Breakdown - The traditional Chinese and Western medicine sector generated revenue of CNY 584.56 million, up CNY 86.63 million, or 17.40% year-on-year[39]. - The biopharmaceutical sector reported revenue of CNY 5.94 million, a decrease of CNY 1.36 million, or 19.24% year-on-year[39]. - The steel structure sector's revenue fell to CNY 34.43 million, down CNY 48.07 million, or 58.27% year-on-year[39]. - The company's revenue from outside the province accounted for 81.18% of total revenue, reflecting a year-on-year increase of 15.65%[42]. - The company's total revenue for the pharmaceutical manufacturing sector reached ¥590.50 million, representing a year-on-year increase of 16.86%[44]. Research and Development - Research and development expenses are now separately listed in the financial statements, reflecting a focus on innovation[24]. - Research and development expenses rose by 54.89% to ¥26.84 million, driven by increased investment in the internationalization of the Sanqi Tongshu capsule project[54]. - The company has established a collaborative platform with over 30 universities and research institutions, resulting in a total of 23 invention patents, 29 utility model patents, and 4 design patents[35]. Market Strategy and Expansion - The company continues to promote its core product, Sanqi Tongshu Capsule, which has significant market growth potential and is recognized for its quality control[32]. - The company is actively expanding its market presence and enhancing brand influence through strategic marketing initiatives[29]. - The company is actively expanding into new business areas, including PPP projects, to enhance its profitability and core competitiveness[38]. - The company aims to maintain a steady growth in sales and achieve a net profit of no less than 120% of the 2018 level in 2019[73]. Governance and Shareholder Relations - The company has not reported any changes in its controlling shareholder since its listing[17]. - The company has committed to avoiding any business activities that may compete with its controlling shareholder, Huasheng Group, both domestically and internationally[88]. - The company has established a legal obligation to compensate for any damages caused to minority shareholders due to violations of commitments[96]. - The company emphasizes the importance of protecting the legitimate rights and interests of its minority shareholders[94]. - The company has maintained compliance with all legal and regulatory requirements, with no penalties or corrective actions reported[116]. Employee and Management Structure - The total number of employees in the company is 702, with 346 in the parent company and 356 in major subsidiaries[170]. - The company has a diverse board composition, including independent directors with significant experience in finance and law, which supports strategic decision-making[160]. - The total remuneration for directors, supervisors, and senior management in 2018 amounted to 3.0727 million yuan (pre-tax), with independent directors receiving a total of 300,000 yuan (pre-tax) in allowances[168]. - The company emphasizes a people-oriented approach in its compensation policy, aiming to align salaries with business performance and employee contributions[171]. Internal Controls and Compliance - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2018[187]. - There were no significant deficiencies or material weaknesses identified in the internal control system during the reporting period[185]. - The audit opinion issued by the accounting firm was a standard unqualified opinion, affirming the fairness of the financial statements[192]. - The company has not faced any significant discrepancies in governance compared to the regulatory standards set by the China Securities Regulatory Commission[175].