SHANGHAI KAIBAO(300039)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was ¥908,008,861.43, a decrease of 36.01% compared to ¥1,419,026,170.35 in 2019[21] - The net profit attributable to shareholders for 2020 was ¥106,122,746.60, down 57.72% from ¥250,986,452.13 in the previous year[21] - The net profit after deducting non-recurring gains and losses was ¥95,675,418.53, a decline of 60.90% compared to ¥244,719,614.36 in 2019[21] - The net cash flow from operating activities was ¥250,649,879.39, a decrease of 24.97% from ¥334,085,296.53 in 2019[21] - The basic earnings per share for 2020 was ¥0.1015, down 57.69% from ¥0.2399 in 2019[21] - The total assets at the end of 2020 were ¥2,877,284,200.91, an increase of 1.22% from ¥2,842,499,295.08 at the end of 2019[21] - The net assets attributable to shareholders at the end of 2020 were ¥2,578,324,384.13, a slight increase of 0.34% from ¥2,569,491,637.53 in 2019[21] - The weighted average return on net assets for 2020 was 4.05%, down from 9.76% in 2019, a decrease of 5.71%[21] Revenue and Sales - The industrial segment accounted for 99.90% of total revenue, with a revenue of ¥907,095,032.36, down 35.99% year-over-year[88] - Injection products generated ¥802,754,175.99, representing 88.41% of total revenue, a decline of 39.34% from ¥1,323,301,090.36 in 2019[85] - Sales volume decreased by 36.16% to 40,550,192 units in 2020 from 63,514,926 units in 2019[89] - The gross profit margin for the industrial segment was 80.28%, down 2.21% from the previous year[88] Research and Development - The company is actively enhancing its R&D capabilities and accelerating the development of new products, particularly in the field of traditional Chinese medicine, in response to national health strategies[53] - The company has received five invention patents, one design patent, and one utility model patent, strengthening its intellectual property protection[67] - R&D investment amounted to ¥59,118,892.81, representing 6.51% of operating revenue, a significant increase from 3.85% the previous year[103] - The proportion of R&D personnel increased to 30.07%, up from 28.66% the previous year[103] - The company has ongoing normal operations with no litigation issues reported[115] Product Development and Market Position - The main product, Tanreqing injection, was included in the clinical treatment guidelines for COVID-19, enhancing its market position and contribution to epidemic prevention[37] - The company has developed a product line focusing on respiratory, cardiovascular, and digestive health, enhancing its competitive edge in the pharmaceutical market[36] - The company’s unique product, Tanreqing capsule, has been included in the national medical insurance directory and recommended for COVID-19 treatment in several provinces, enhancing its market potential[54] - The company is focusing on enhancing its internal management systems to improve decision-making efficiency and operational effectiveness[71] Cash Flow and Investments - The company reported a net increase in cash and cash equivalents of ¥246,471,132.86, a significant improvement of 150.25% compared to the previous year[104] - The net cash flow from investment activities increased by 110.86%, reaching ¥65,213,934.39, primarily due to increased capital recovery[104] - The company made a total investment of ¥90,000,000.00 during the reporting period, a 100% increase from the previous year[112] - The company has allocated CNY 4,350 million for the "Modernization of Traditional Chinese Medicine and Other Pharmaceutical Products Construction Project" as part of the excess fundraising[129] Dividend Policy - The company implemented a cash dividend policy, distributing RMB 0.3 per 10 shares, totaling RMB 31,380,000, which represents 100% of the distributable profit[168] - In 2020, the total cash dividend amounted to RMB 31,380,000, representing 29.57% of the net profit attributable to ordinary shareholders[175] - For 2019, the cash dividend was RMB 104,600,000, which accounted for 41.68% of the net profit attributable to ordinary shareholders[172] Compliance and Governance - The company has adhered to commitments regarding non-competition and related transactions during the reporting period[179] - The integrity status of the company and its controlling shareholders was good, with no unfulfilled court judgments or significant overdue debts[193] - There were no significant lawsuits or arbitration matters during the reporting period[191] - The company has maintained a continuous audit service from domestic accounting firms for 13 years[190] Future Outlook and Strategy - The company plans to enhance its R&D capabilities and accelerate the development of new products, particularly in the field of modern Chinese medicine[150] - The company will continue to explore and develop health-related products, aligning with the national "Healthy China" strategy[152] - The company recognizes the risks associated with the pharmaceutical industry, including policy changes and price control measures, which could impact operations[157] - The company is committed to sustainable development through green production practices and optimizing production processes[154]