SaiLong(SZ:002898)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was ¥436,272,811.42, representing a 19.78% increase compared to ¥364,218,632.26 in 2017 [6]. - The net profit attributable to shareholders for 2018 was ¥60,904,851.34, a decrease of 5.58% from ¥64,505,083.76 in 2017 [6]. - The net profit after deducting non-recurring gains and losses was ¥51,863,787.04, down 10.41% from ¥57,891,558.15 in 2017 [6]. - The basic earnings per share for 2018 was ¥0.3807, a decrease of 23.28% from ¥0.4962 in 2017 [6]. - The total assets at the end of 2018 were ¥755,842,366.63, reflecting a 5.69% increase from ¥715,133,976.29 at the end of 2017 [6]. - In 2018, the company achieved operating revenue of RMB 436.27 million, a year-on-year increase of 19.78%, while net profit was RMB 60.90 million, a decrease of 5.58% due to ongoing investment projects not yet yielding returns [39]. - The company reported a gross margin of 80.00% in the pharmaceutical sector, despite a slight decrease of 12.68% year-on-year due to rising costs [48]. - The company reported a total revenue of 300 million RMB for the year 2018, reflecting a year-on-year growth of 15% [106]. - The net profit for 2018 was 50 million RMB, which is an increase of 10% compared to the previous year [106]. Cash Dividends - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total of 160,000,000 shares [4]. - The cash dividend distribution plan for 2018 was approved, with a total cash dividend of RMB 2,400,000 distributed at RMB 0.15 per 10 shares [88]. - In 2017, the company distributed a cash dividend of RMB 13,600,000 at RMB 0.85 per 10 shares, which was successfully implemented [88]. - The cash dividend for 2016 was RMB 20,000,000 at RMB 1.67 per 10 shares, also successfully implemented [88]. - The cash dividends over the past three years accounted for 30.21%, 21.08%, and 32.65% of the net profit attributable to shareholders, respectively [91]. - The company has not made any adjustments to its cash dividend policy during the reporting period [92]. - The total cash dividend amount (including other methods) for the reporting period was RMB 16,000,000, representing 100% of the profit distribution [92]. - The company has a policy that cash dividends should account for at least 20% of profit distribution during its growth phase [92]. - The company has maintained compliance with its cash dividend policy and ensured transparency in decision-making processes [92]. Risks and Challenges - The company faces risks including industry policy changes, new drug development risks, and fluctuations in raw material supply and prices [4]. - The company acknowledges the risks associated with new drug development, including potential failures in safety and efficacy evaluations, and plans to optimize its R&D structure [80]. - The company is aware of the risk of price reductions for approved drugs due to market competition and will adapt its bidding strategies accordingly [82]. - The company will strengthen market monitoring and inventory management to address risks related to raw material supply and price fluctuations [83]. - The company faces risks from industry policy changes, including adjustments to the medical insurance directory and volume-based procurement, which may impact production and sales [80]. Research and Development - The company obtained drug registration approvals for new products, including injection of L-lysine and tranexamic acid injection during the reporting period [26]. - The company continues to focus on the research, production, and sales of pharmaceutical products, with no significant changes in its main business [26]. - R&D expenses increased by CNY 9.69 million, a rise of 212.01%, as the company advanced its R&D projects into substantial development phases [30]. - The company is focused on innovation and has established several research platforms for drug development, including "Chiral Drugs" and "Controlled Release Drugs" [32]. - The company is expanding its research and development into previously uncharted areas, including anti-solid tumors and high-end raw materials [39]. - The company plans to enhance product design and R&D efforts to transition from a small enterprise to a mid-sized listed company [75]. - The company is committed to developing at least 5 food registrations and special medical food applications as part of its health product research and development strategy [77]. Shareholder and Governance - The company has not proposed any stock dividends or capital reserve transfers during the reporting period [92]. - The company committed to not transferring or entrusting the management of its publicly issued shares for 36 months from the date of its stock listing [94]. - The company’s major shareholders are required to extend the lock-up period by 6 months if the closing price falls below the IPO price for 20 consecutive trading days within 6 months post-listing [94]. - The company has fulfilled its commitments regarding share transfer restrictions and lock-up periods as of September 12, 2017 [95]. - The company’s major shareholders must adhere to regulations regarding share reduction after the lock-up period, ensuring the reduction price does not fall below the IPO price [95]. - The company has established a commitment to protect investor rights through supplementary or alternative commitments if necessary [95]. - The company’s major shareholders are required to report any changes in their shareholdings during their tenure [95]. - The company has a strategy in place to stabilize its stock price during the lock-up period [95]. - The company’s commitments regarding shareholding and reduction prices remain in effect regardless of changes in the positions of directors or senior management [95]. Environmental and Social Responsibility - The company has established environmental protection and safety production systems in compliance with national laws and regulations, focusing on energy conservation and emission reduction [130]. - The company is classified as a key pollutant discharge unit, with specific emissions data indicating a total discharge of 0.24 tons of ammonia nitrogen and 9.6 tons of COD, both within regulatory limits [135]. - The company has implemented a comprehensive environmental pollution accident emergency response mechanism, including regular training and drills for employees [137]. - The company has a wastewater treatment station with automatic monitoring equipment that checks water quality parameters every four hours [137]. - The company adheres to labor laws and regulations to protect employee rights and provide a safe working environment [129]. Internal Control and Compliance - The company has established a complete internal control system to protect the rights of shareholders, especially minority shareholders [129]. - The company has implemented an internal audit system to monitor and evaluate internal control activities, effectively managing risks [177]. - The company maintained effective internal controls related to financial reporting as of December 31, 2018, according to the internal control verification report [191]. - There were no significant defects in financial reporting or non-financial reporting identified during the reporting period [190]. - The audit committee actively supervised the company's financial status and operational conditions, ensuring the independence and quality of the annual financial report audit [185]. Employee and Management - The total number of employees in the company is 451, with 41 in the parent company and 410 in major subsidiaries [169]. - The company has a structured compensation system approved by the board and shareholders [167]. - The management team includes experienced professionals with backgrounds in pharmaceutical management and research [164]. - The company has established a training program aimed at enhancing employee skills and potential development, ensuring alignment with business needs and innovation [172]. - The company has a diverse professional composition among its employees, indicating a well-rounded workforce [170].