CSBIO(SZ:300255)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,652,633,921.48, an increase of 16.37% compared to CNY 1,420,161,448.21 in 2017[33]. - The net profit attributable to shareholders for 2018 was CNY 139,987,092.37, a decrease of 28.91% from CNY 196,919,210.54 in 2017[33]. - The net cash flow from operating activities for 2018 was CNY 292,806,829.23, representing an increase of 80.44% compared to CNY 162,275,728.18 in 2017[33]. - The total assets at the end of 2018 were CNY 3,844,836,970.34, an increase of 8.92% from CNY 3,530,047,343.32 at the end of 2017[33]. - The net assets attributable to shareholders at the end of 2018 were CNY 2,512,818,127.52, up 6.05% from CNY 2,369,451,288.32 at the end of 2017[33]. - The basic earnings per share for 2018 was CNY 0.15, a decrease of 28.57% from CNY 0.21 in 2017[33]. - The diluted earnings per share for 2018 was also CNY 0.15, reflecting the same decrease of 28.57% from CNY 0.21 in 2017[33]. - The company reported a total of CNY 4,365,451.95 in non-recurring gains and losses for 2018, down from CNY 6,249,403.44 in 2017[39]. - The weighted average return on net assets for 2018 was 5.73%, down from 8.56% in 2017[33]. - The company experienced a significant increase in quarterly revenue, with Q4 2018 revenue reaching CNY 501,432,440.25[34]. Dividend Distribution - The company plans to distribute a cash dividend of 0.28 RMB per 10 shares, based on a total of 934,966,878 shares[17]. - In 2018, the company distributed cash dividends of RMB 0.20 per share, totaling RMB 26,179,072.58, which represents 100% of the distributable profit[130]. - The cash dividend for 2017 was RMB 18,699,337.56, which accounted for 9.50% of the net profit attributable to the company's ordinary shareholders[134]. - The cash dividend for 2016 was RMB 14,024,503.17, representing 7.99% of the net profit attributable to the company's ordinary shareholders[134]. - The profit distribution plan for 2017 included a cash dividend of RMB 0.20 per 10 shares, which was implemented on June 22, 2018[134]. - The profit distribution plan for 2016 included a cash dividend of RMB 0.15 per 10 shares, which was implemented on June 29, 2017[134]. - In 2018, the total cash dividend amounted to RMB 26,179,072.58, representing 18.70% of the net profit attributable to the company's ordinary shareholders[134]. Market Position and Strategy - The company holds a leading position in the domestic heparin raw material and formulation market, benefiting from a complete heparin product supply chain[8]. - The company is a leading enterprise in the heparin industry, possessing a complete heparin product supply chain, including both raw materials and formulations, with key products being heparin sodium raw materials and low molecular weight heparin calcium injections, which contribute over 10% to the main business revenue[46]. - The production of low molecular weight heparin calcium injection is widely recognized in the market and is a core product driving continuous revenue growth[46]. - The company has established a mature domestic and international marketing network, reducing dependency on a single market, with heparin products certified by multiple international standards[51]. - The company aims to expand its market presence by actively exploring overseas markets and accelerating mergers and acquisitions within the pharmaceutical industry[51]. - The company plans to focus on the R&D and registration of heparin series products, hyaluronic acid series products, and new drugs like Aibennapeptide in the coming years[54]. - The company is committed to improving product quality and management standards in response to tightening regulations in the pharmaceutical industry[117]. - The biopharmaceutical market is expected to grow rapidly due to increasing demand for heparin and its derivatives, with new clinical indications anticipated to receive approval[118]. - The company plans to continue focusing on heparin products while actively expanding into overseas markets and enhancing its export capabilities[119]. Research and Development - The company is committed to improving its R&D capabilities and launching higher-quality products in response to market demand[11]. - The company is adopting a dual approach to drug development, balancing generic and innovative drug research to mitigate risks associated with new product development[12]. - Research and development expenses increased by 30.25% to CNY 98,887,103.73 from CNY 75,921,713.91 in 2017[81]. - The number of R&D personnel increased to 185, accounting for 20.00% of the total workforce[85]. - R&D investment accounted for 7.20% of total revenue, up from 6.52% in 2017[85]. - The company is currently developing 12 projects, with several aimed at obtaining drug registration certificates[83]. - The company will increase R&D investment to enhance its capabilities, focusing on clinical trials and the registration of new products, including innovative drugs[122]. Operational Challenges - The company is facing risks from rising procurement costs, particularly for heparin raw materials, which have shown an upward price trend[13]. - The company emphasizes the importance of adapting to national policy changes and enhancing internal management to ensure a safe operating environment[7]. - The company acknowledges the risks associated with its non-public stock issuance projects, which could impact expected benefits if market conditions change[17]. - The company is expanding its scale through the establishment of multiple subsidiaries focused on different products, which may lead to management coordination challenges[16]. - The company has implemented a rigorous internal control system to mitigate management risks and ensure compliance with regulations[120]. Investment and Financial Management - The total investment during the reporting period was ¥101,500,000.00, a significant increase of 2,751.12% compared to the previous year[97]. - The company utilized CNY 170 million of idle fundraising temporarily to supplement working capital, which was fully returned within the specified period[105]. - The company has not encountered any issues or other situations regarding the use and disclosure of fundraising[105]. - The company has not made any changes to the fundraising projects during the reporting period[106]. - The company has not engaged in entrusted financial management or loans during the reporting period[175][176]. - The net cash flow from financing activities was ¥130,666,896.08, a decrease of 4.33% compared to the previous year[88]. - The company reported a net cash outflow from investment activities of ¥239,014,266.86, a reduction of 2.84% year-on-year[88]. Corporate Governance and Compliance - The company has not experienced any major litigation or arbitration matters during the reporting period[153]. - The company has not implemented any stock incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[158]. - The company has not engaged in any related party transactions concerning daily operations during the reporting period[159]. - The company has not conducted any asset or equity acquisitions or sales related party transactions during the reporting period[160]. - The company has not had any major penalties or corrective actions during the reporting period[156]. - The company has maintained compliance with all court judgments and has no significant debts due that remain unpaid during the reporting period[157]. - The company has made changes to its accounting policies in accordance with new financial reporting standards effective from January 1, 2019[146]. - The company has ongoing commitments regarding non-competition and related transactions with its controlling shareholders[138]. - The company has made commitments regarding the use of research and development resources and the ownership of patents generated from its R&D activities[138]. Social Responsibility - The company has actively engaged in social responsibility, contributing 100 million CNY to poverty alleviation projects[181]. - The company has not faced any penalties for environmental violations during the reporting period[182].