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龙津药业(002750) - 2020 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2020 was ¥254,026,717.66, a decrease of 7.72% compared to ¥275,292,322.31 in 2019[16] - The net profit attributable to shareholders in 2020 was ¥11,811,617.50, representing a significant increase of 151.12% from a loss of ¥23,107,439.88 in 2019[16] - The net cash flow from operating activities was negative at ¥6,776,928.51, a decline of 267.61% compared to a positive cash flow of ¥4,043,279.31 in 2019[16] - The basic earnings per share for 2020 was ¥0.0295, a turnaround from a loss of ¥0.0577 per share in 2019, marking an increase of 151.18%[16] - Total assets at the end of 2020 amounted to ¥841,755,807.01, reflecting a growth of 4.32% from ¥806,891,975.76 at the end of 2019[16] - The net assets attributable to shareholders increased by 1.89% to ¥636,053,699.73 at the end of 2020, compared to ¥624,242,082.23 at the end of 2019[16] - The company reported a weighted average return on equity of 1.87% in 2020, an improvement from -3.63% in 2019[16] - The company's revenue after deducting other business income was ¥253,710,927.66 in 2020, compared to ¥274,025,812.72 in 2019[16] Operational Stability - The company did not change its main business since its listing, indicating stability in its operational focus[14] - The company has not reported any changes in its controlling shareholder since its establishment, ensuring continuity in governance[14] Quarterly Performance - In 2020, the company's total revenue for the four quarters was approximately CNY 254.03 million, with a significant increase in Q4 revenue to CNY 89.64 million, up from CNY 41.37 million in Q1[20] - The net profit attributable to shareholders turned from a loss of CNY 4.19 million in Q1 to a profit of CNY 9.53 million in Q4, indicating a recovery in profitability[20] - The net cash flow from operating activities showed fluctuations, with a negative cash flow of CNY 10.27 million in Q1 and a positive cash flow of CNY 8.62 million in Q2[20] Product and Market Performance - The company's main product, Longjin® injection of Ligusticum chuanxiong, is included in the national medical insurance directory, contributing significantly to revenue and profit[25][30] - The company faced a 13.8% year-on-year decline in hospital visits from January to October 2020, impacting overall sales performance[29] - The company successfully regained procurement rights in 27 provinces and cities, with over 500 hospitals restored for distribution during the reporting period[30] - The company implemented cost-reduction strategies, resulting in a decrease in management expenses compared to the previous year[30] - Non-recurring gains included government subsidies amounting to CNY 11.44 million, which positively impacted the financial results[21] Industry Context - The overall pharmaceutical market faced challenges, with a 6% decrease in drug procurement expenses nationwide, highlighting the competitive environment[29] - The pharmaceutical manufacturing industry in China saw a 12.9% year-on-year growth in main business revenue and a 12.7% increase in operating profit in 2020[31] - Sales of traditional Chinese medicine (TCM) in key public hospitals in major cities reached approximately 30 billion yuan, reflecting a 12.48% decline year-on-year, with the first quarter experiencing the largest drop of 29.73%[32] Research and Development - The company holds over 30 invention patents and has been involved in significant national and provincial projects related to new drug creation and TCM standardization[34] - The company's R&D investment has consistently accounted for 10% of sales revenue, with R&D personnel making up about 15% of the total workforce[38] - The company launched 4 new invention patents during the reporting period, and the innovative drug research and development progressed as planned, with preclinical studies for ZKLJ02 completed[46] Subsidiary Developments - The company established a new subsidiary, Yunnan Longjin Pharmaceutical Sales Co., Ltd., in September 2020, impacting the consolidated financial statements[65] - The company’s subsidiary, Yunnan Longjin Pharmaceutical Sales Co., Ltd., obtained a drug business license, marking entry into the regional pharmaceutical and medical device wholesale market[47] - The company reported a net profit of 15,669.65 CNY from its newly established subsidiary Yunnan Longjin Pharmaceutical Sales Co., which was set up in September 2020[94] Financial Management - The company’s cash and cash equivalents decreased by CNY 71.45 million, a decline of 36.56%, attributed to changes in the balance of financial products[50] - Accounts receivable increased by CNY 10.31 million, a rise of 30.67%, due to increased sales activities from the newly established subsidiary[51] - The total operating costs amounted to ¥51,349,241.45, an increase from ¥48,263,910.33 in the previous year[62] Future Outlook - The company plans to enhance its R&D and innovation capabilities, focusing on developing specialty chemical generic drugs for cardiovascular and metabolic diseases[98] - The company aims to leverage industrial hemp cultivation to establish a full industrial chain, enhancing its product offerings[99] - The company will adopt a dual approach of "internal growth + external expansion" to inject new vitality into its operations, including increasing R&D investment in specialty chemical generics[99] - The company expects its pharmaceutical industrial sales revenue in 2021 to remain flat compared to 2020, with new products like the injection of fibrinolytic enzyme showing slight growth[100] Shareholder and Governance - The company reported a profit distribution plan for 2020, proposing no cash dividends, no bonus shares, and no capital reserve transfer, with retained earnings to be carried forward for future distribution[115] - The company has not distributed any cash dividends in the past three years, with cash dividends amounting to CNY 0.00 for 2020, 2019, and 2018, representing 0.00% of the net profit attributable to ordinary shareholders[116] - The company has maintained compliance with all commitments made by its actual controllers and shareholders during the reporting period[121] Management and Compliance - The management team saw changes with Fan Xian'e stepping down as General Manager on December 30, 2020, and being succeeded by Fan Lijuan[181] - The company has not faced any penalties from securities regulatory authorities in the past three years[198] - The company has established a comprehensive internal control system to protect the rights of shareholders and creditors, ensuring compliance with laws and regulations[155]