KHPG(SZ:002773)2023-04-27 16:00Financial Performance - The company's net profit for the reporting period was CNY 71,132,923.09, a decrease from CNY 120,472,548.79 in the previous period, reflecting a significant decline of 41.0%[5]. - The total revenue for 2022 was CNY 388,035,167.96, representing a year-on-year increase of 9.43% compared to CNY 354,605,557.16 in 2021[26]. - The company achieved operating revenue of CNY 338,902.82 million, a year-on-year decrease of 6.00%[183]. - The net profit attributable to shareholders was CNY 89,667.00 million, representing a year-on-year increase of 112.94%[183]. - The total distributable profit for the reporting period was 3,508,590,344.36 RMB[128]. Research and Development - The company reported a net cash flow from operating activities that increased by 87.23% year-on-year, primarily due to reduced R&D expenses related to the cessation of a global clinical trial[33]. - The number of R&D personnel decreased by 5.06% to 507, with the proportion of R&D staff in total employees dropping to 12.53% from 13.88%[31]. - Research and development (R&D) investment amounted to CNY 435,006,851.08, a decrease of 57.71% compared to the previous year[186]. - R&D investment as a percentage of operating revenue was 12.84%, down 15.69% from the previous year[186]. - The company capitalized CNY 61,009,243.44 of R&D expenses, an increase of 199.51% year-on-year[186]. - The company plans to gradually advance research work on multiple products that have received clinical trial permits from the National Medical Products Administration[21]. - The company emphasizes its core competitiveness in innovation, focusing on unmet clinical needs and the development of high-tech new products[129]. Expenses and Financial Management - The sales expenses decreased by 5.94% to CNY 1,320,234,211.04 from CNY 1,403,622,206.56 in the previous year[29]. - The company’s financial expenses decreased by 30.92% to CNY -44,944,155.32, mainly due to increased interest income from time deposits[29]. - The company’s investment income from financial products amounted to CNY 37,394,399.95, indicating a focus on enhancing daily fund management and efficiency[5]. Stock Options and Incentives - The company granted 120,000 stock options to 2 incentive objects on July 11, 2022, with an exercise price of 14.97 CNY per share, accounting for 3.76% of the reserved stock options and 0.0131% of the total share capital on the announcement date[40]. - The first exercise period conditions for the 2021 stock option incentive plan were met, allowing 326 incentive objects to exercise a total of 3.8588 million stock options at an exercise price of 22.18 CNY per share[41]. - A total of 1.8892 million stock options were canceled for 102 incentive objects due to reasons such as resignation or not meeting performance targets[41]. - The company has implemented a stock appreciation rights incentive plan, granting a total of 600,000 shares, representing 0.07% of the total share capital[93]. - The company approved the grant of 600,000 stock appreciation rights to one incentive object as part of its 2022 stock appreciation rights incentive plan[169]. Corporate Governance and Compliance - The company has established a comprehensive performance evaluation system for its directors, supervisors, and senior management, linking compensation to company performance and individual achievements[123]. - The company is committed to improving internal control systems and governance structures in compliance with relevant laws and regulations[192]. - The internal control self-assessment report reflects that the company has no significant or important internal control deficiencies during the reporting period[198]. - The report provides a comprehensive, truthful, and accurate reflection of the company's internal control situation[200]. Market and Strategic Initiatives - The company aims to improve its marketing strategies and rapidly capture market share in relevant fields[106]. - The company has formed a product layout advantage in the treatment of chronic diseases such as hypertension and diabetes, as well as common diseases in respiratory and digestive departments, and major diseases in ophthalmology and neurology[158]. - The company has undergone a merger, with Sichuan Hongda Pharmaceutical Co., Ltd. being absorbed by Sichuan Hongyuan Pharmaceutical Co., Ltd., which continues to operate[103]. - The company faces potential changes in product access conditions and sales prices due to ongoing healthcare reforms and intensified industry competition, which may impact sales[107]. - The company has conducted thorough feasibility studies for its fundraising projects, but future market uncertainties pose risks of not meeting expected revenue and profit targets[108]. Investments and Projects - The total procurement amount from the top five suppliers was 68,187,569.85 CNY, representing 24.93% of the annual total procurement[55]. - The procurement amount from the first supplier was 16,855,233.52 CNY, accounting for 6.16% of the annual total procurement[55]. - The total amount of committed investment for the project of solid oral preparations is CNY 296.59 million, with an adjusted total investment of CNY 251.31 million, achieving an investment progress of 92.24%[68]. - The R&D center expansion project has a total committed investment of CNY 175.87 million, with a cumulative investment of CNY 181.92 million, indicating an investment progress of 103.44%[68]. - The marketing service network construction project has a total committed investment of CNY 75.84 million, with a cumulative investment of CNY 11.17 million, achieving 100% of the expected benefits[68]. - The KH series biopharmaceutical industrialization project has a total committed investment of CNY 50 million, with a cumulative investment of CNY 50.85 million, achieving an investment progress of 101.70%[68]. Employee Development - The company is committed to continuous employee training, utilizing various platforms and methods to enhance skills and capabilities across all levels[124]. - The company has established a unique human resource management model and culture, focusing on talent acquisition and development in R&D, production, and sales[159]. Dividends and Shareholder Meetings - The company distributed a cash dividend of 1.50 RMB per 10 shares, totaling 137,919,593.10 RMB, which represents 100% of the distributable profit[128]. - The total number of shares for the dividend distribution was 919,463,954 shares[128]. - The company held two shareholders' meetings, five board meetings, and five supervisory board meetings during the reporting period[192].