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龙津药业(002750) - 2019 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2019 was ¥275,292,322.31, a decrease of 18.06% compared to ¥335,984,894.90 in 2018[20]. - The net profit attributable to shareholders for 2019 was -¥23,107,439.88, representing a decline of 266.60% from ¥13,870,103.38 in 2018[20]. - The net cash flow from operating activities decreased by 87.24% to ¥4,043,279.31 in 2019, down from ¥31,698,797.10 in 2018[20]. - The basic earnings per share for 2019 was -¥0.0577, a drop of 266.76% from ¥0.0346 in 2018[20]. - The company achieved operating revenue of 275 million yuan in 2019, a decrease of 18.06% compared to the previous year, marking the first net loss of 23.11 million yuan for the company[45]. - The company reported a significant loss in net profit, indicating a challenging financial year[89]. - The company’s net profit attributable to ordinary shareholders for 2019 was reported as -¥23,107,439.88, indicating a loss[119]. R&D and Product Development - The company's R&D investment amounted to 29.3 million yuan, with a capitalization amount of 8.6171 million yuan, impacting net profit by 37.29%[7]. - The company is actively developing new drugs in cardiovascular and metabolic areas, aiming to expand its product line and enhance its competitive edge[4]. - The company has focused on enhancing its R&D capabilities for specialty chemical generic drugs and diversifying into health food and industrial hemp businesses[36]. - The company has applied for 4 invention patents during the reporting period, receiving authorization for 2[45]. - The company has submitted supplementary applications for clinical trials related to the injection of Ligusticum chuanxiong, awaiting approval from the National Medical Products Administration[45]. - The company plans to launch the injection of fibrinolytic enzyme in 2020, with national marketing and sales efforts already initiated[46]. Market and Competition - The company faces significant risks from industry policy changes, including price and quantity reductions due to stricter regulations in the pharmaceutical sector[3]. - The company is exposed to market risks due to intense competition in the pharmaceutical manufacturing and planting industries, which may lead to price declines and reduced sales volumes[5]. - The market for cardiovascular disease treatments is expected to grow significantly, driven by an aging population and increasing prevalence of risk factors[35]. - The company is expanding its market presence by entering two new provinces, aiming to increase market share by 10% in the next year[195]. Financial Management and Investments - The company has invested in low-risk bank products to improve fund utilization efficiency, but any adverse changes in its main product's performance could significantly impact overall financial results[4]. - The company received government subsidies amounting to ¥10,324,893.37 in 2019, an increase from ¥8,218,729.20 in 2018[26]. - The company recorded an investment income increase of 264.21% in 2019, amounting to an increase of 5.84 million yuan[52]. - The company has established a new wholly-owned subsidiary, Longjin Kantou, focusing on specialized chemical generic drug research and development[47]. - The company has committed to not engaging in any business that competes with its own operations, ensuring no conflicts of interest[121]. Risks and Challenges - The company has recognized a goodwill impairment of 24.3416 million yuan and an asset group impairment of 4.4262 million yuan due to a pending lawsuit, which could significantly affect future profitability[8]. - The company faces significant management risks due to rapid business expansion, which may lead to challenges in resource integration and compliance with regulations[104]. - The company is exposed to market risks from intense competition in the pharmaceutical industry, which may lead to price declines and reduced sales[105]. - The company has a potential risk of tax incentives being reduced or eliminated, affecting its subsidiaries engaged in agricultural production[111]. - The company has recognized a goodwill impairment of 24.34 million yuan due to a lawsuit, which could negatively impact future performance if the outcome is unfavorable[112]. Corporate Governance and Compliance - The company has committed to timely fulfillment of obligations to minority shareholders[128]. - The company has confirmed that it does not have any ongoing patent infringement cases as of the date of the commitment letter[122]. - The company will bear all tax liabilities, late fees, and penalties incurred due to the withdrawal of tax benefits enjoyed by foreign investors[124]. - The company will publicly explain the reasons for any failure to fulfill commitments at shareholder meetings and designated publications[126]. - The company has maintained compliance with laws and regulations, ensuring the protection of shareholder and creditor rights[158]. Subsidiaries and Acquisitions - The company established a wholly-owned subsidiary, Yunnan Longjin Fantian Biotechnology Co., Ltd., with a registered capital of CNY 25.5 million, and has contributed CNY 13.16 million as of December 31, 2019[134]. - The company acquired a 51.09% stake in Yunnan Muya Agricultural Technology Co., Ltd. for ¥15 million, completed on June 18, 2019[66]. - The company completed the acquisition of 100% equity in Yunnan Sanqi Technology's subsidiaries, with payment ratios reaching 80% and 90% respectively by July 2, 2019[136]. - The company plans to establish a joint venture, Fujian Longjin Tang Health Industry Co., Ltd., with a registered capital of CNY 20 million, holding a 51% stake[137]. Employee and Management Structure - The total number of employees in the company is 241, with 199 in the parent company and 42 in major subsidiaries[200]. - The professional composition includes 79 production personnel, 52 sales personnel, 51 technical personnel, 16 financial personnel, and 43 administrative personnel[200]. - The total pre-tax remuneration for the board of directors and senior management during the reporting period amounts to 521.09万元[199]. - The highest remuneration for a director is 66.3万元, received by the vice chairman[198]. - The company has no stock incentive plans granted to directors and senior management during the reporting period[199].