HSJN(SZ:002817)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was CNY 325,557,296.04, representing a 10.47% increase compared to CNY 294,709,587.46 in 2018[16]. - The net profit attributable to shareholders for 2019 was CNY 39,130,702.48, an increase of 8.80% from CNY 35,966,208.29 in 2018[16]. - The net profit after deducting non-recurring gains and losses was CNY 31,775,849.66, which is a 16.11% increase from CNY 27,367,955.00 in 2018[16]. - The net cash flow from operating activities increased by 89.03% to CNY 52,028,243.84 from CNY 27,523,879.86 in 2018[16]. - The total assets at the end of 2019 were CNY 831,803,641.17, a 6.64% increase from CNY 780,034,833.48 at the end of 2018[16]. - The net assets attributable to shareholders at the end of 2019 were CNY 724,606,241.80, up 4.63% from CNY 692,536,073.67 at the end of 2018[16]. - The basic earnings per share for 2019 was CNY 0.45, reflecting a 9.76% increase from CNY 0.41 in 2018[16]. - The weighted average return on equity for 2019 was 5.53%, slightly up from 5.30% in 2018[16]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the year, representing a growth of 15% compared to the previous year[94]. - The company reported a revenue of 5,000 million yuan for the period, reflecting a year-over-year increase of 3.40%[128]. - The company reported a total revenue of 900 million in the latest fiscal year, reflecting a growth rate of 2.97% compared to the previous year[129]. - The company reported a revenue of 3.00 billion CNY for the year, representing a 4.00% increase compared to the previous year[130]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.95 per 10 shares, with a capital reserve conversion of 7 shares for every 10 shares held[5]. - The cash dividend for 2019 represents 21.04% of the net profit attributable to ordinary shareholders, which is RMB 39,130,702.48[88]. - The total cash dividend for 2019, including other methods, is RMB 8,233,650.00, which constitutes 100% of the total distributable profit[88]. - The cash dividend distribution is scheduled to be implemented on June 18, 2019[90]. - The company has maintained a consistent cash dividend payout ratio over the past three years, with ratios of 20.54% in 2017, 20.48% in 2018, and 21.04% in 2019[88]. - The company has implemented a profit distribution policy and a three-year shareholder return plan[135]. - The company reported a total cash dividend distribution of 7.36695 million yuan for the 2018 fiscal year[135]. Research and Development - The company has invested in the development of new technologies, including enteric-coated gelatin capsules, and has received multiple patents for its innovations[30]. - The company plans to enhance its R&D investment to strengthen its competitive advantage in the pharmaceutical supply industry[31]. - The company’s R&D efforts led to the acquisition of 2 utility model patents and 18 technical innovations during the year[37]. - Research and development expenses amounted to 12,774,858.80 yuan, accounting for 3.92% of operating revenue[54]. - Research and development investments have increased by 14% compared to the previous year, aimed at innovation[128]. - The company has a strong focus on research and development, particularly in the area of plant-based capsules[173]. Market Expansion and Strategy - The company has a stable customer base across over 30 provinces in China, benefiting from the increasing demand for pharmaceuticals and health products[29]. - The company is focused on expanding its market presence through customized marketing services and technical support for clients[29]. - The company plans to optimize its management system, enhance talent acquisition, and implement performance assessment for management levels to improve operational efficiency[77]. - The company aims to reduce costs by setting specific targets for each department to decrease expenses and improve budget management, thereby minimizing resource waste[78]. - The company is committed to market-oriented strategies, including developing new markets and clients, enhancing customer service, and leveraging its technical advantages in traditional Chinese medicine and enteric-coated capsules[78]. - The company plans to expand its market presence by introducing new products and technologies in the upcoming quarters[128]. - Market expansion plans include entering three new provinces in China, aiming to increase market share by 10% in these regions[98]. - The company is considering strategic acquisitions to bolster its product line, with a budget of 200 million CNY earmarked for potential mergers and acquisitions[99]. Operational Efficiency - The company has implemented a centralized procurement model to optimize costs and ensure a steady supply of materials[25]. - The company completed 25 technical improvement projects during the reporting period, enhancing production capacity and efficiency[37]. - The company has implemented new strategies to enhance operational efficiency, targeting a 5% reduction in production costs over the next year[96]. - The company has implemented cost-control measures that are expected to improve profitability margins in the next quarter[128]. - The company has established a comprehensive performance evaluation system and provides regular health check-ups for employees[136]. Risk Management - The company has outlined potential risks and countermeasures in its future development outlook, emphasizing the importance of investor awareness regarding investment risks[5]. - The company faces risks from regulatory changes in the pharmaceutical industry, including policies like "volume-based procurement" and "consistency evaluation," which may impact product pricing and market competition[79]. - Fluctuations in raw material prices, particularly for gelatin used in capsules, pose a risk to procurement costs and overall profit margins, necessitating strategic supplier management[79]. - The COVID-19 pandemic has impacted the company's operations, prompting proactive measures to mitigate adverse effects on production and business continuity[80]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, holding 3 shareholder meetings and 4 board meetings during the reporting period[185]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, ensuring a complete business system[187]. - The company has an independent financial department with a complete accounting system, allowing for autonomous financial decision-making[190]. - The company has established a commitment from major shareholders to avoid any competition with the company, ensuring a conflict-free operational environment[192]. - The company has received seven national invention patents in recent years, including various types of hollow capsules[173]. - The company has a diverse board with members holding various professional backgrounds, including finance, law, and management[166][167][168][169][170]. Environmental and Social Responsibility - The company has invested in upgrading its coal-fired boiler to a gas boiler to achieve energy conservation and emission reduction[136]. - The company donated 233,600 yuan to social welfare and participated in various community service activities[137]. - The company adheres to environmental protection regulations and has set up a unified management system for its environmental efforts[136]. - The company and its subsidiaries are not classified as key pollutant discharge units by environmental protection authorities[141]. Shareholder Information - A total of 45,130,000 restricted shares were released and became tradable on October 25, 2019, following the expiration of the lock-up period[145]. - The total number of shares after the release of restricted shares is 86,670,000, with 52.07% being restricted shares and 47.93% being unrestricted shares[146]. - The company had 14,819 shareholders at the end of the reporting period, compared to 13,825 at the end of the previous month[151]. - The largest shareholder, Yu Chunming, holds 40.05% of the shares, totaling 34,710,000 shares, with a decrease of 440,000 shares during the reporting period[152]. - The company did not engage in any repurchase transactions during the reporting period[153]. - The company has not undergone any changes in its major shareholders or actual controllers in the past year[156].