ST吉药(300108) - 2019 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2019 was ¥1,065,807,539.96, representing a 13.11% increase compared to ¥942,251,629.65 in 2018[24]. - The net profit attributable to shareholders was -¥1,771,791,468.01, a significant decrease of 917.78% from ¥216,659,914.80 in the previous year[24]. - The net cash flow from operating activities increased by 392.55% to ¥212,689,512.07 from ¥43,181,115.38 in 2018[24]. - The total assets at the end of 2019 were ¥3,237,850,160.93, down 33.28% from ¥4,852,817,985.94 at the end of 2018[24]. - The net assets attributable to shareholders decreased by 82.92% to ¥377,063,797.56 from ¥2,207,791,166.44 in 2018[24]. - The total profit amounted to -¥1,747,411,123.23, a decrease of 715.89% year-on-year, with net profit attributable to shareholders at -¥1,771,791,468.01, down 917.78%[48]. - The pharmaceutical sector contributed ¥833,886,662.66, accounting for 78.24% of total revenue, with a year-on-year growth of 14.95%[50]. - The chemical sector generated ¥231,920,877.30, representing 21.76% of total revenue, with a year-on-year increase of 6.97%[50]. Acquisitions and Goodwill - The company formed goodwill amounting to CNY 376,678,064.45 from acquisitions of Jinbao Pharmaceutical, Liaoning Meiluo, Yuanda Kanghua, Yali Dajiao Wan, and Puhua Pharmaceutical[8]. - The company acknowledges the risk of goodwill impairment if the acquired assets' operational performance deteriorates[8]. - The company acquired 70% of Liaoning Meiluo for a cash consideration of 28 million RMB, with a commitment for net profits of 4 million RMB, 4.4 million RMB, and 4.8 million RMB for 2018, 2019, and 2020 respectively, totaling 13.2 million RMB over three years[91]. - Liaoning Meiluo achieved a net profit of 4,147,616.23 RMB in 2019, exceeding the commitment by 147,616.23 RMB, resulting in a completion rate of 103.69%[93]. - The company purchased 100% of Zhejiang Yalida for 230 million RMB, with profit commitments of 20 million RMB, 30 million RMB, and 42 million RMB for 2018, 2019, and 2020 respectively, totaling 92 million RMB over three years[93]. - Zhejiang Yalida achieved a net profit of 21,233,424.85 RMB in 2019, exceeding the commitment by 1,233,424.85 RMB, resulting in a completion rate of 106.17%[95]. Research and Development - The company is committed to improving new drug development management to mitigate risks associated with long approval times and high investment costs[7]. - The company is focused on cultivating a skilled talent pool to support its research and development initiatives[7]. - The company has a strong R&D advantage, collaborating with influential pharmaceutical research institutions to enhance its drug development capabilities[44]. - R&D expenses increased to ¥91,867,129.42, a significant rise of 518.87% due to changes in the scope of consolidation from the acquisition of a subsidiary in the second half of 2018[61]. - R&D investment amounted to ¥90,937,988.20, representing 8.53% of operating revenue, up from 1.89% in 2018[62]. - The number of R&D personnel rose to 173, accounting for 12.37% of total employees, compared to 9.00% in 2018[62]. Market Strategy and Operations - The company aims to enhance production efficiency and reduce material and energy consumption to counteract increased competition in the chemical industry[10]. - The company will actively respond to market changes by increasing promotional efforts and accelerating the launch of new products to offset declines in clinical product sales[8]. - The company has shifted its focus towards OTC terminal sales, with a significant increase in sales from terminal products during the reporting period[38]. - The integration of the acquired Puhua Pharmaceutical has enhanced the overall sales coordination, with a clear strategy to prioritize terminal sales channels moving forward[39]. - The company is focused on expanding its retail and terminal sales channels to increase market penetration and consumer recognition[77]. - The company aims to expand its pharmaceutical business across China, focusing on both traditional Chinese medicine and Western medicine, with a strategic emphasis on biopharmaceuticals and OTC market sales[77]. Compliance and Governance - The company faced penalties for information disclosure violations, including a fine of 600,000 CNY imposed by the China Securities Regulatory Commission[100]. - The company received a public reprimand and was fined for violations from environmental, safety supervision, and tax authorities[100]. - The company is committed to compliance and improving its corporate governance practices following past penalties[165]. - The company has established a transparent information disclosure system to ensure all shareholders have equal access to information[175]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with governance regulations[174]. Shareholder Relations and Dividends - The company plans to not distribute cash dividends, issue bonus shares, or increase capital from reserves[11]. - The company has established a clear profit distribution policy, ensuring transparency and protection of shareholders' rights, particularly for minority shareholders[80]. - No cash dividends were distributed in 2019, 2018, or 2017, with the total cash dividend amounting to 0 CNY, representing 0.00% of the total profit distribution[86]. - The company has committed to protecting the rights and interests of minority shareholders, ensuring they have opportunities to express their opinions[81]. Employee and Management Structure - Total number of employees is 1,399, with 1,388 in major subsidiaries and 11 in the parent company[168]. - The company conducts weekly training sessions for production skills and safety knowledge[170]. - The total remuneration paid to the board of directors, supervisors, and senior management in 2019 amounted to 1.5429 million yuan[166]. - The management team is composed of experienced professionals with significant industry expertise, contributing to the company's strategic direction[157][158][159]. Risks and Challenges - The company faces risks from industry policy changes, including price reductions and increased competition, which may impact operational costs and profitability[5]. - The company is monitoring industry competition closely to adapt its strategies and maintain market position[10]. - The company emphasizes the importance of adhering to national policies and guidelines in its research and development processes[7].