JINLING PHARM.(SZ:000919)2019-03-25 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,899,079,022.11, a decrease of 9.17% compared to CNY 3,191,811,863.89 in 2017[18]. - Net profit attributable to shareholders increased by 76.32% to CNY 241,786,876.83 from CNY 137,126,464.92 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 123,856,759.61, a slight increase of 1.61% from CNY 121,889,770.47 in 2017[18]. - The basic earnings per share rose by 76.30% to CNY 0.4797, compared to CNY 0.2721 in 2017[18]. - The weighted average return on net assets was 9.05%, an increase of 3.71% from 5.34% in the previous year[18]. - Total assets at the end of 2018 were CNY 3,884,935,435.88, reflecting a 0.73% increase from CNY 3,856,970,596.92 at the end of 2017[18]. - Net assets attributable to shareholders increased by 5.80% to CNY 2,736,819,527.33 from CNY 2,586,740,105.96 in 2017[18]. - The company reported a net cash flow from operating activities of CNY 433,825,968.40, a decrease of 2.10% from CNY 443,109,707.72 in 2017[18]. - The company achieved total operating revenue of 289,907.90 million yuan and a net profit attributable to the parent company of 24,178.69 million yuan during the reporting period[36]. Revenue Breakdown - In 2018, the total operating revenue for the company was approximately 2.93 billion yuan, with a quarterly breakdown of 791.53 million yuan in Q1, 773.40 million yuan in Q2, 741.85 million yuan in Q3, and 592.30 million yuan in Q4[22]. - Revenue from pharmaceutical production and sales decreased by 20.05% to ¥1,728,637,738.89, accounting for 59.63% of total revenue[44]. - Medical services revenue increased by 16.93% to ¥1,094,054,142.85, representing 37.74% of total revenue[44]. Investments and Acquisitions - The company divested 51% of its stake in 华东公司 and 30% in 金陵大药房 during the reporting period, indicating a strategic shift in its business operations[28]. - The company acquired 65% of Huzhou Welfare Center Development Co., Ltd. for ¥187.20 million in January 2018[51]. - The company also acquired 100% of Jiangsu Jinling Marine Pharmaceutical Co., Ltd. for ¥557,600 in December 2018[51]. - Long-term equity investments increased by 36.18% compared to the beginning of the year, primarily due to the investment in Nanjing New Industry Medical Investment Fund Partnership[31]. Research and Development - Research and development expenses amounted to 34.12 million yuan, with 44 various technology projects filed, including 3 provincial projects[40]. - The number of R&D personnel decreased by 2.24% to 131, while the proportion of R&D personnel increased to 3.00%[59]. - The company has several drugs in the review stage, including Milrinone and Docetaxel, which are currently under evaluation by the drug review center[57]. Cash Flow and Financial Stability - Operating cash inflow totaled ¥3,212,064,699.05, reflecting a decrease of 6.11% year-on-year[60]. - Cash flow from financing activities saw a significant decrease of 52.38%, primarily due to reduced bank loans[62]. - The company’s financial stability is high, with a low debt ratio and ample cash flow, indicating a strong financial position[33]. Dividend Policy - The company plans to distribute a cash dividend of CNY 1.70 per 10 shares, based on a total of 504,000,000 shares[5]. - The cash dividend policy has been executed in accordance with the company's articles of association, ensuring the protection of minority shareholders' rights[98]. - The cash dividends paid in 2018, 2017, and 2016 were all CNY 85,680,000, representing 35.44%, 62.48%, and 47.56% of the respective net profits[100]. Market and Industry Trends - The healthcare industry in China is experiencing rapid growth, with a 8.5% increase in healthcare spending in the national budget for 2018, amounting to 1.5 trillion yuan[29]. - The overall demand for healthcare services is expected to increase significantly due to aging population and rising health awareness among the public[30]. - The basic medical insurance coverage in China has exceeded 1.3 billion people, achieving a coverage rate of over 95%, indicating a growing consumer base for pharmaceutical products[87]. Risks and Challenges - The company faces risks related to industry policy changes, market competition, and fluctuations in raw material prices[5]. - The company faces risks from industry policy changes, market competition, raw material price fluctuations, and potential product bidding failures, which could impact operational performance[90][91]. Corporate Governance and Management - The company has established a new organizational structure for the welfare center, clarifying responsibilities and improving management efficiency[38]. - The company has a structured evaluation process for assessing the performance of its senior management, which includes personal reports and peer evaluations[176]. - The governance structure complies with relevant laws and regulations, ensuring effective operation and management[185]. Social Responsibility and Environmental Compliance - The company actively engages in social responsibility initiatives, including free medical services for impoverished households[134]. - The company emphasizes environmental protection and is prepared for potential increases in environmental compliance costs due to stricter regulations[93]. - The company has received approval for its environmental impact assessment and complies with pollution discharge standards[144]. Employee and Management Structure - The total number of employees in the company is 4,956, with 1,024 in the parent company and 3,932 in major subsidiaries[179]. - The company has implemented a comprehensive training plan to enhance employee skills and capabilities[182]. - The management team has a diverse background, with members holding various positions in healthcare and investment sectors, which may benefit future strategic initiatives[171][172][173].