Guilin Sanjin(SZ:002275)2020-04-27 16:00Share Capital and Dividends - The company reported a total share capital of 590,200,000 shares as of December 31, 2019, with a cash dividend of 2.3 RMB per 10 shares (including tax) to be distributed to shareholders[6]. - The company has a total of 575,272,649 shares after deducting the repurchased shares from the total share capital[6]. - The company has a total of 14,927,351 shares in its repurchase account, which are excluded from the total share capital for dividend distribution purposes[6]. - The company distributed cash dividends of 132,312,709.27 RMB (including tax) for the fiscal year 2019, which accounts for 33.74% of the net profit attributable to shareholders[115]. - The cash dividend per 10 shares for 2019 was set at 2.30 RMB (including tax), with no stock dividends or capital reserve transfers planned[116]. - The total cash dividends distributed over the past three years were 236,080,000.00 RMB in 2017, 204,492,155.00 RMB in 2018, and 132,312,709.27 RMB in 2019[115]. - The total cash dividends (including other methods) for 2019 amounted to 311,803,620.61 RMB, representing 100% of the distributable profit[119]. - The company's total distributable profit for 2019 was reported at 1,386,355,341.17 RMB[119]. - The cash dividend distribution plan complies with the relevant regulations and the company's shareholder return plan for the next three years[119]. - The company has maintained a consistent cash dividend policy over the past three years, with a focus on returning value to shareholders while supporting long-term development[119]. Financial Performance - The company's operating revenue for 2019 was ¥1,640,423,731.48, representing a 3.52% increase compared to ¥1,584,673,431.92 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥392,142,681.13, a decrease of 5.13% from ¥413,346,104.70 in 2018[23]. - The net profit after deducting non-recurring gains and losses was ¥366,686,313.63, down 5.41% from ¥387,657,223.35 in 2018[23]. - The net cash flow from operating activities was ¥468,285,131.84, a decline of 15.12% compared to ¥551,726,197.80 in 2018[23]. - The basic earnings per share for 2019 was ¥0.67, a decrease of 4.29% from ¥0.70 in 2018[23]. - Total assets at the end of 2019 were ¥3,415,617,789.20, reflecting a 0.28% increase from ¥3,406,130,253.17 at the end of 2018[26]. - The net assets attributable to shareholders at the end of 2019 were ¥2,815,436,666.60, up 0.31% from ¥2,806,663,252.69 at the end of 2018[26]. - The total profit amounted to CNY 467.64 million, down 5.66% from CNY 495.69 million in the prior year[48]. - The weighted average return on equity for 2019 was 14.10%, down from 18.43% in 2018[23]. Research and Development - R&D expenses rose significantly by 61.00% to ¥104,111,970.74 in 2019, compared to ¥64,666,339.47 in 2018, reflecting increased investment in biopharmaceutical research[66]. - Total R&D investment accounted for 6.35% of operating revenue in 2019, up from 4.08% in 2018, indicating a strategic focus on innovation[66]. - The number of R&D personnel increased by 1.81% to 225 in 2019, with R&D personnel accounting for 10.26% of the total workforce[66]. - The company is focusing on the development of new drugs and the secondary development of existing products, with multiple new drugs in the preclinical stage and three monoclonal antibodies progressing as planned[107]. - The company is committed to building a national-level enterprise technology center to enhance its technological innovation capabilities[103]. Market and Sales - The company achieved total operating revenue of CNY 1,640.42 million in 2019, a 3.52% increase from CNY 1,584.67 million in the previous year[48]. - The main business revenue was CNY 1,638.83 million, reflecting a 3.52% growth compared to CNY 1,583.17 million in 2018[48]. - Domestic sales contributed CNY 1,624,232,719.69, making up 99.01% of total revenue, with a growth of 3.46% compared to the previous year[50]. - The revenue from traditional Chinese medicine (industrial) was CNY 1,476,848,730.85, which is 90.03% of total revenue, reflecting a 2.24% increase year-on-year[50]. - The company has a robust sales channel with 64 first-level distributors and 1,078 second-level distributors, ensuring effective market coverage[43]. Risk Management - The company emphasizes the importance of risk awareness regarding potential industry policy adjustments, raw material price fluctuations, intensified market competition, and uncertainties in research and development[6]. - The company faces risks from industry policy changes, including the new Drug Administration Law and centralized procurement policies, which could impact its operations[103]. - The fluctuation in prices of raw materials, particularly traditional Chinese medicinal herbs, poses a risk to production costs and profit margins[103]. - The company is actively responding to industry policy changes and enhancing project evaluation mechanisms to mitigate R&D risks[106]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management team[5]. - The company has appointed Tianjian Accounting Firm as its auditor for the reporting period[22]. - The company has not experienced any significant accounting errors requiring retrospective restatement during the reporting period[139]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[144]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[146]. Environmental and Social Responsibility - The company invested over 5.2 million yuan in charity donations, education poverty alleviation, and industrial poverty alleviation in 2019[172]. - The company has been recognized as a "Green Factory" and a "Water-saving Enterprise" in Guangxi[173]. - The company has a wastewater treatment facility with a daily processing capacity of 2,500 tons, achieving a COD concentration reduction from 3,000 mg/L to below 100 mg/L[180]. - The company implemented energy-saving measures that improved production efficiency by over 35%, reduced electricity consumption by 12%, and saved approximately 18.55 million yuan in electricity costs in 2020[173]. - The company actively participated in community support by purchasing 12,500 jin of unsold citrus from local farmers[170]. Share Repurchase - The company repurchased a total of 14,927,351 shares, accounting for approximately 2.53% of the total share capital before the repurchase plan[198]. - The total amount spent on the share repurchase was RMB 204,005,651.99, including transaction fees[198]. - The maximum transaction price during the repurchase was RMB 15.18 per share, while the minimum was RMB 12.60 per share[198]. - The company plans to use its own funds for the share repurchase, with a total amount not exceeding RMB 250 million and not less than RMB 125 million[195]. - The company held its first temporary shareholders' meeting on September 7, 2018, to approve the share repurchase plan[195].