JINLING PHARM.(SZ:000919)2022-03-28 16:00Financial Performance - The company's operating revenue for 2021 was ¥2,808,754,876.16, representing a 12.18% increase compared to ¥2,503,732,374.15 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥120,625,946.04, an increase of 85.19% from ¥65,136,495.93 in 2020[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 15.53% to ¥72,159,809.38 in 2021 from ¥85,427,396.25 in 2020[21]. - The basic earnings per share for 2021 was ¥0.2393, up 85.22% from ¥0.1292 in 2020[21]. - The total assets at the end of 2021 were ¥4,447,665,260.23, a 3.83% increase from ¥4,283,570,372.62 at the end of 2020[22]. - The net assets attributable to shareholders at the end of 2021 were ¥2,927,728,885.61, reflecting a 2.46% increase from ¥2,857,463,167.29 at the end of 2020[22]. - The net cash flow from operating activities for 2021 was ¥292,026,282.03, a decrease of 6.24% from ¥311,464,432.11 in 2020[21]. - The company reported non-recurring gains of ¥53,131,553.79 from the disposal of non-current assets in 2021, compared to a loss of ¥1,581,888.97 in 2020[26]. - The weighted average return on equity for 2021 was 4.16%, an increase of 1.90% from 2.26% in 2020[21]. Dividend Policy - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares (including tax) based on a total share capital of 510,400,000 as of March 25, 2022[6]. - The total amount of cash dividends distributed accounted for 100% of the available profits for distribution[144]. - The cash dividend per 10 shares is CNY 1.00 (including tax), based on a total share capital of 510,400,000 shares[144]. - The company maintained a complete decision-making process for its cash dividend policy, ensuring the rights of minority shareholders were protected[144]. Risks and Challenges - The company acknowledges risks including industry policy changes, operational risks due to the COVID-19 pandemic, and market competition risks[6]. - The company faces risks from industry policy changes, including drug approval and price control measures, which may impact future growth[92]. - The company is addressing the risk of raw material price fluctuations by optimizing procurement processes and maintaining reserves of commonly used raw materials[93]. - The company is committed to improving research and development capabilities to mitigate risks associated with new drug development and market acceptance[94]. Market and Industry Insights - The pharmaceutical industry in China is projected to grow significantly, driven by increased healthcare awareness and rising demand for medications, with total healthcare expenditure expected to reach CNY 7.23 trillion in 2020[1]. - The healthcare market in China is expected to maintain rapid growth due to economic development, population growth, and increasing health awareness among residents[3]. - The aging population in China is substantial, with 264.02 million individuals aged 60 and above, representing 18.7% of the total population, indicating a growing market for healthcare services[2]. - In 2021, the total number of medical visits in China reached 6.05 billion, a year-on-year increase of 22.4%, with public hospitals accounting for 3.22 billion visits, up 28.3%[3]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[5]. - The company has established a strong governance structure with independent directors to ensure compliance and strategic oversight[112][115]. - The company maintains independent operations from its controlling shareholder, ensuring no infringement on the rights of other shareholders[100]. - The company has a clear governance structure that operates independently from its controlling shareholder, ensuring no hierarchical relationship exists[103]. Research and Development - The company invested CNY 57.0147 million in research and development during the reporting period[50]. - The company holds 14 patent applications, including 3 invention patents and 11 utility model patents, with 18 patents granted[50]. - The company is actively pursuing new product development and has made progress in secondary development of existing products, including obtaining a patent for a detection method[50]. - The company has filed 103 research projects, with 20 approved, including 6 at the national level[50]. Social Responsibility - The company participated in 30 public welfare volunteer activities in 2021, investing a total of RMB 1.58 million, including RMB 1.4 million for pandemic relief efforts[162]. - In 2021, the company allocated RMB 180,000 for poverty alleviation initiatives, including RMB 120,000 for healthcare support and RMB 42,000 for educational assistance to 99 impoverished students[164]. - The company has committed to corporate social responsibility by integrating public welfare support into its annual budget[163]. - The company has actively engaged in industry poverty alleviation projects, including donations for community health and education initiatives[164]. Environmental Compliance - The company has implemented wastewater treatment facilities with capacities of 1200m³/d and 800m³/d, ensuring compliance with environmental standards[157]. - The company achieved a total COD discharge of 26.38 tons, which is below the regulatory limits, demonstrating effective pollution control measures[157]. - The company maintains a pollution discharge permit, with all emissions compliant with the permit requirements[158]. - The company conducted an environmental self-monitoring program, confirming that all pollutant emissions met standards during the reporting period[160]. Employee and Management - The total number of employees at the end of the reporting period was 4,865, with 906 in the parent company and 3,959 in major subsidiaries[138]. - The company had 3,430 technical personnel, representing approximately 70.5% of the total workforce[138]. - The training budget for 2021 was set at 5.8535 million yuan, with over 80% of the annual training plan achieved[141]. - The company implemented a competitive salary policy to enhance employee motivation and has established a dual career development channel[140]. Future Outlook - In 2022, the company plans to focus on strengthening technological innovation and enhancing the transformation of innovative achievements[91]. - The company aims to accelerate digital transformation to cultivate new growth drivers for development[91]. - Future guidance indicates a cautious optimism for revenue growth, contingent on market conditions and successful product development[110]. - The company is considering strategic acquisitions to enhance its product portfolio and market presence[121].