ST天圣(002872) - 2018 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2018 was CNY 2,171,439,923, a decrease of 3.98% compared to CNY 2,261,414,373 in 2017[16]. - Net profit attributable to shareholders was CNY 110,746,222, representing a decline of 55.22% from CNY 248,575,376 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 105,896,044, down 52.23% from CNY 222,943,716 in 2017[16]. - Cash flow from operating activities improved significantly to CNY 153,986,687, a 673.52% increase from a negative cash flow of CNY -55,748,598 in 2017[16]. - Basic earnings per share decreased by 58.33% to CNY 0.35 from CNY 0.84 in the previous year[17]. - Total assets decreased by 5.21% to CNY 4,749,805,700 from CNY 5,010,676,640 at the end of the previous year[17]. - Operating profit was CNY 163,535,385.34, down 46.98% year-over-year[40]. - The weighted average return on equity decreased to 3.48% from 9.67% in the previous year, a decline of 6.19%[17]. Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - In 2017, the company distributed cash dividends of RMB 50,032,000, accounting for 20.23% of the net profit attributable to ordinary shareholders[98]. - For the year 2018, the company did not propose any cash dividends or capital reserve transfers, pending shareholder approval[97]. Business Operations - The company has not changed its main business since its listing[15]. - The company operates a complete industry chain encompassing drug manufacturing, circulation, and R&D[30]. - The company has over 300 approved drug varieties, with more than 70 included in the National Essential Medicines List[27]. - The main products include pediatric drugs, gynecological drugs, and cardiovascular drugs, with unique products like Xiaor Lungke Granules and Dizhencao Granules[28][29]. Audit and Compliance - The audit report issued by Beijing Xinghua Accounting Firm was unable to express an opinion[4]. - The financial data for 2018 has been restated due to business combinations under common control[16]. - There were no significant differences in net profit and net assets between international and Chinese accounting standards during the reporting period[18][19]. - The company received an audit report with a disclaimer of opinion due to the involvement of former executives in criminal activities, which raises concerns about internal controls[128]. - The former chairman and several executives were implicated in criminal cases, leading to uncertainty regarding the financial statements' accuracy and potential impacts[129]. Research and Development - The company emphasized the importance of drug research and development to enrich its product structure during the reporting period[42]. - Research and development expenses for 2018 amounted to ¥39,782,371.67, representing 1.83% of the total revenue, an increase of 17.50% from the previous year[59]. - The company plans to enhance its R&D efforts, targeting the production approval of antibiotic injection products and the consistency evaluation of 11 products in 2019[86]. - A new production line for pediatric cough granules will be launched in 2019 to meet market demand, alongside significant capacity increases in Shanxi Tian Sheng's production facilities[87]. Market Strategy - The company aims to expand its market presence by combining brand promotion with academic promotion strategies[40]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[107]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of 500 million RMB allocated for this purpose[106]. Environmental Compliance - The company operates a wastewater treatment facility that processes wastewater from equipment and floor cleaning, ensuring compliance with discharge standards[182]. - The company is classified as a key pollutant discharge unit by environmental protection authorities, indicating its significant environmental impact[180]. - The company has not exceeded pollution discharge limits for various pollutants, demonstrating its commitment to environmental compliance[180]. Corporate Governance - The company faced significant leadership changes in 2018, with the resignation of former Chairman Liu Qun and former General Manager Li Hong due to legal issues, impacting corporate governance[141]. - The board of directors is committed to cooperating with judicial investigations and will disclose information promptly once the legal proceedings conclude[131]. - The company has not disclosed any significant mergers or acquisitions during the reporting period, focusing instead on internal compliance and operational stability[145]. Shareholder Information - The company’s total share capital increased to 318,000,000 shares after a capital reserve transfer in 2017, with a 5-for-10 share increase[96]. - The company has maintained a transparent and compliant profit distribution policy, adhering to relevant regulations and ensuring shareholder rights[96]. - The company’s stock structure reflects a diverse ownership with significant stakes held by both individual and institutional investors[195].