KHPG(SZ:002773)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was ¥2,917,445,131.66, representing a 4.70% increase compared to ¥2,786,497,000.62 in 2017[11]. - The net profit attributable to shareholders for 2018 was ¥694,943,801.74, an increase of 7.88% from ¥644,199,027.01 in 2017[11]. - The company reported a basic earnings per share of ¥1.04 for 2018, up 8.33% from ¥0.96 in 2017[11]. - The revenue from chemical drugs was CNY 1,169,995,125.14, showing an increase of 8.02% year-on-year[31]. - The revenue from biological products reached CNY 882,090,768.08, with a significant growth of 42.79% compared to the previous year[31]. - The company’s traditional Chinese medicine revenue decreased by 20.40% to CNY 863,378,989.41[31]. - The total revenue from the pharmaceutical industry amounted to 227,818,268.62 CNY in 2018, a decrease of 15.17% from 268,546,852.93 CNY in 2017[35]. - The company achieved a total operating revenue of CNY 2,917,445,131.66 in 2018, representing a year-on-year growth of 4.70%[31]. - The company reported a total revenue of 1.5 billion CNY for the year 2018, representing a year-over-year growth of 20%[86]. - The net profit for 2018 was 300 million CNY, an increase of 15% compared to the previous year[86]. Dividend Distribution - The company reported a total profit distribution plan based on 673,536,680 shares, proposing a cash dividend of 2.80 RMB per 10 shares (tax included) and a capital reserve increase of 3 shares per 10 shares[1]. - The company plans to distribute a cash dividend of CNY 2.80 per 10 shares for the 2018 fiscal year, totaling CNY 188,590,270.40[81]. - The cash dividend for 2017 was CNY 2.80 per 10 shares, amounting to CNY 188,778,807.56, which represented 29.30% of the net profit attributable to shareholders[80]. - The cash dividend for 2016 was CNY 1.50 per 10 shares, totaling CNY 101,243,109.00, accounting for 20.38% of the net profit attributable to shareholders[80]. - The total distributable profit for 2018 was CNY 694,943,801.74, with the cash dividend representing 48.28% of this amount[81]. - The total cash dividend for 2018, including other methods, is CNY 188,590,270.40, which is 27.14% of the net profit attributable to shareholders[80]. - The company has maintained a consistent cash dividend policy over the past three years, with clear standards and procedures in place[81]. Research and Development - The company has established four key technologies in drug development, including large molecule protein drug industrialization technology and standardized quality control technology for traditional Chinese medicine[18]. - The company’s R&D investment has increased, with a focus on high-quality new products in ophthalmology, neurology, and oncology[24]. - The company has 57 ongoing research projects, including a new drug for diabetic macular edema that has completed clinical trials and is under review for market approval[41]. - The total amount of R&D investment was 348,861,949.84 CNY, representing 11.96% of the company's revenue in 2018, a decrease from 12.56% in 2017[43]. - Research and development expenses increased by 20.02% year-on-year, totaling 230,365,772.13 CNY in 2018 compared to 191,933,002.81 CNY in 2017[40]. - The company obtained 29 authorized patents during the reporting period, bringing the total to 203, including 99 foreign patents[29]. - The company has established a comprehensive technical system for new drug research, including a New Drug Research Institute and a Medical Research Center[69]. Market Expansion and Strategy - The company aims to enhance its market presence through continuous innovation and collaboration in the pharmaceutical sector[18]. - The company is expanding its market presence in response to intensified competition from multinational pharmaceutical companies entering the domestic market[68]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2020[86]. - The company is focused on expanding its marketing service network, although it faced challenges due to local purchase restrictions and fluctuations in housing prices[55]. - The sales strategy will be market-driven, with a focus on rapid market capture and refined marketing strategies, utilizing data analysis for better market insights[71]. - The company is exploring partnerships with international firms to enhance its global distribution network[186]. Risks and Challenges - The company faces risks including declining sales prices, challenges in drug development, implementation of fundraising projects, and talent shortages[1]. - The company faces risks including potential sales price declines due to healthcare reforms and increased competition in the pharmaceutical market[74]. - There is a significant investment in drug R&D, which carries risks of uncertainty and potential failure due to the lengthy and costly development process[74]. - The company faced delays in project progress due to design optimization and market conditions affecting the expansion of traditional Chinese medicine production lines[55]. Social Responsibility - The company actively participated in social responsibility initiatives, donating 44.23 million to various charitable causes in 2018[123]. - The company has established the "Langshijie Muguangming" fund to support medical precision poverty alleviation, benefiting impoverished areas with free medical services[122]. - The company organized 205 public health activities, including free health consultations and lectures, to promote community health awareness[123]. - The company has committed to integrating social responsibility into its business strategy, with a dedicated team led by the chairman[120]. - The company has provided free medical products worth over 200 million to impoverished patients since the establishment of its public welfare fund in 2014[122]. Environmental Compliance - The company is listed as a key pollutant discharge unit, with specific emissions monitored and reported[127]. - The company maintained compliance with environmental discharge standards, with no instances of exceeding pollutant limits reported[129]. - The company has implemented a pollution liability insurance policy as part of its environmental protection measures[151]. - The company has engaged in community environmental awareness activities, such as the "Kanghong Pharmaceutical and You Build a Happy Community" campaign[150]. Corporate Governance - The company has established a performance evaluation system linking remuneration to company performance and individual performance[191]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, institutions, and finance[199]. - The company has established a complete independent business structure and operates its own supply, production, and sales systems[199]. - The company has not reported any changes in its actual controller during the reporting period[173].