Huasun(SZ:000790)2021-04-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 759,307,481.01, representing a 1.87% increase compared to CNY 745,340,799.08 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 37,503,531.51, a decrease of 39.15% from CNY 61,632,302.42 in 2019[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 46,834,417.52, down 22.81% from CNY 60,677,086.08 in the previous year[16]. - The net cash flow from operating activities was CNY 13,495,800.83, a significant decline of 79.25% compared to CNY 65,027,238.40 in 2019[16]. - The basic earnings per share for 2020 was CNY 0.06, a decrease of 40.00% from CNY 0.10 in 2019[16]. - The diluted earnings per share for 2020 was CNY 0.06, a decrease of 40.00% compared to CNY 0.10 in 2019[17]. - The weighted average return on equity was 4.15%, down from 7.11% in the previous year, reflecting a decline of 2.96%[17]. - Total assets at the end of 2020 amounted to CNY 1,140,012,121.38, a slight increase of 0.13% from CNY 1,138,495,537.52 at the end of 2019[17]. - Net assets attributable to shareholders increased by 3.56% to CNY 912,050,796.35 from CNY 880,710,870.48 in 2019[17]. - The company reported a significant decrease in cash flow, indicating potential challenges in operational efficiency[16]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.1 per 10 shares to all shareholders, based on a total of 616,360,564 shares[5]. - The cash dividend amount distributed was CNY 6,163,605.64, which accounted for 100% of the total profit distribution[89]. - The cash dividend distribution plan is based on the undistributed profits as of December 31, 2020, amounting to CNY 138,754,933.58[89]. - The total number of shares for the cash dividend distribution in 2020 was based on 616,360,564 shares, with no stock dividends or capital reserve transfers[86]. - The company has implemented a cash dividend policy, distributing a cash dividend of 0.10 yuan per 10 shares for both 2019 and 2020, maintaining shareholder rights[85][86]. Business Strategy and Operations - The company continues to focus on high-tech product development and production, as well as the production of traditional Chinese and Western medicines[15]. - The company is focusing on optimizing its business structure and enhancing its operational management to adapt to changes in the pharmaceutical industry[24]. - The company aims to expand its market presence by promoting its flagship product, Sanqi Tongshu Capsule, and enhancing its brand recognition[24]. - The company is advancing the registration project for Sanqi Tongshu capsules in the EU and has published research on its anti-platelet aggregation mechanism[52]. - The company plans to establish a "three-in-one" chain clinic model integrating medical services, aesthetic medicine, and health products[76]. - The company is developing a stem cell application research center in collaboration with research institutions and universities[76]. - The company aims to achieve a net profit not lower than 120% of the 2019 level for 2020[77]. - The company is focusing on building a regional health industry ecosystem centered around major urban clusters in China[75]. - The company will continue to promote and complete the non-public stock issuance to leverage its platform advantages for business expansion and R&D enhancement[78]. Research and Development - The company holds 28 invention patents, including 4 international patents, and has made significant advancements in research and development[29]. - The company is focused on expanding its product range and improving product quality to enhance sales and market presence[34]. - The company plans to increase R&D investment in biomedicine, modern traditional Chinese medicine, and stem cell fields, aiming to enhance product competitiveness and expand its product pipeline[78]. - The number of R&D personnel increased by 23.85% to 161 in 2020 from 130 in 2019[53]. - Total R&D investment amounted to ¥26.87 million in 2020, down 8.99% from ¥29.53 million in 2019[54]. - Research and development expenses increased by 20%, totaling 150 million yuan, focusing on biotechnology innovations[166]. Market Performance - The pharmaceutical manufacturing segment experienced a revenue decline of 12.72%, totaling CNY 565.53 million, due to the impact of COVID-19 on hospital operations[35]. - The construction steel structure business saw a significant revenue increase of 110.28%, reaching CNY 178.15 million, driven by enhanced market expansion efforts[35]. - The sales volume of traditional Chinese and Western medicine products decreased by 20.47%, totaling 20,552,578 boxes in 2020 compared to 25,841,925 boxes in 2019[42]. - The company reported a decrease in overall gross margin by 8.74 percentage points due to changes in revenue structure[35]. - The company achieved a total revenue of CNY 759.31 million, representing a year-on-year growth of 1.87%[77]. Corporate Governance - The company has engaged in over 315 investor communications during the reporting period, addressing inquiries primarily related to production and operations[82]. - The company emphasizes the importance of creating an innovative atmosphere and enhancing employee value creation to support its development[79]. - The company has established a robust internal control system to improve management and risk prevention capabilities[178]. - The independent directors of the company attended 5 board meetings, with 2 in person and 3 by proxy, and attended 1 shareholders' meeting[183]. - The company reported no objections raised by independent directors regarding company matters during the reporting period[184]. - The company has a structured approach to governance, with clear roles for independent directors and supervisors[169]. Environmental and Social Responsibility - The company donated a total of 5.1632 million yuan to support social efforts against the COVID-19 pandemic, earning recognition as a "Most Caring Enterprise" by the Sichuan Red Cross[131]. - The company reported a total of 5.46 tons/year of COD emissions from wastewater, which is below the regulatory limit of 21.11 tons/year[132]. - The company achieved a 75% reduction in nitrogen oxide emissions following the boiler low-nitrogen transformation completed in 2019[133]. - The company has established a comprehensive wastewater treatment system and a corresponding exhaust gas treatment system, both of which are operating normally[133]. - The company is focusing on sustainability initiatives, with plans to reduce carbon emissions by 30% by 2025[160]. Shareholder Information - The total number of shareholders at the end of the reporting period was 40,646[144]. - The largest shareholder, Sichuan Huasheng Group Co., Ltd., holds 18.08% of the shares, totaling 111,431,281 shares[144]. - The report indicates that there were no changes in the number of shares held by the top 10 shareholders during the reporting period[146]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[146]. - The company has not issued any new shares or conducted any stock splits during the reporting period[143]. Management and Personnel - The total remuneration for directors, supervisors, and senior management in 2020 amounted to 3.6281 million yuan (pre-tax), with independent directors receiving a total of 283,300 yuan (pre-tax) in allowances[171]. - The company has a total of 13 current directors, supervisors, and senior management, with 26 individuals receiving remuneration during the reporting period[171]. - The company emphasizes a people-oriented approach in its compensation policy, aiming to align salaries with business performance and employee contributions[174]. - The company is committed to continuous employee training to enhance capabilities and optimize performance[175]. - The total number of employees in the company is 707, with 369 in the parent company and 338 in major subsidiaries[173].