CSBIO(SZ:300255)2021-04-28 16:00Financial Performance - The company reported a total revenue of 934,966,878 RMB for the year 2020, with no cash dividends or bonus shares distributed to shareholders [7]. - The company's operating revenue for 2020 was ¥2,363,785,855.34, representing a 14.11% increase compared to ¥2,071,479,809.92 in 2019 [23]. - The net profit attributable to shareholders for 2020 was ¥252,842,315.01, up 12.23% from ¥225,285,377.10 in 2019 [23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥251,731,831.72, reflecting a 16.32% increase from ¥216,409,072.76 in 2019 [23]. - The company's total assets at the end of 2020 were ¥4,572,556,783.14, a 15.98% increase from ¥3,942,592,048.87 at the end of 2019 [23]. - The company's low molecular weight heparin products achieved significant results in centralized procurement, winning bids for 8 specifications across Shanxi, Shandong, and Henan provinces, with Shanxi and Henan being exclusive wins [60]. - The total operating revenue for 2020 was CNY 2.36 billion, a 14.11% increase from CNY 2.07 billion in 2019, with the biopharmaceutical sector contributing CNY 2.32 billion, up 12.66% [69]. - The net cash flow from operating activities for 2020 was -¥183,581,174.22, a decline of 215.83% compared to -¥58,127,157.71 in 2019 [23]. Market Position and Product Development - The company has a leading position in the domestic low molecular weight heparin market, with a focus on upstream product development and export [38]. - The company is recognized as one of the few domestic enterprises with a complete heparin product industry chain, engaging in the R&D, production, and sales of heparin products [39]. - The core product, low molecular weight heparin calcium injection, accounts for over 10% of the company's main business revenue [40]. - The company is currently developing a Class I new drug for the treatment of type II diabetes, which has entered the clinical phase III [40]. - The company is also developing and producing citrulline sildenafil and other products [41]. - The company has established a comprehensive heparin product industry chain, enhancing its competitive position in the market [46]. - The company plans to focus on R&D for heparin series products and new drug development in the coming years, increasing investment in innovation [54]. Governance and Compliance - The company’s financial report has been verified for accuracy and completeness by its board and accounting personnel, ensuring transparency for investors [5]. - The company’s governance structure includes a board of directors and a supervisory board, ensuring oversight and accountability [6]. - The company’s financial advisor and accounting firm have been retained for ongoing compliance and reporting duties, ensuring adherence to regulatory standards [22]. - The company has established a governance structure to ensure compliance with dividend distribution policies and protect minority shareholders' rights [159]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period [169]. Risks and Challenges - The company has acknowledged potential risks in production and operations, including policy and industry risks, intensified market competition, and new product development risks [7]. - The company faces risks from intensified market competition in the heparin raw material sector and is enhancing its capabilities across R&D, production, and marketing to mitigate these risks [137]. - The company recognizes the risk of rising procurement costs for heparin crude products and plans to monitor market prices closely while increasing self-supply capabilities [141]. - The company acknowledges the potential for increased period expenses due to market competition and diversified R&D, which may pressure its cost control capabilities [142]. Investment and Capital Management - The company has ongoing projects requiring significant capital investment, including clinical trials and facility construction, which will utilize retained earnings [168]. - The total investment amount for the reporting period was 6,560,000.00, a decrease of 88.30% compared to the previous year [101]. - The company plans to use RMB 40,000 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months [109]. - The company invested RMB 2,307.23 million in the polysaccharide and peptide product industrialization project during the reporting period, with a cumulative investment of RMB 16,648.82 million, achieving an investment progress of 28.54% [106]. Shareholder Returns and Dividends - The company implemented a cash dividend policy for 2019, distributing RMB 0.13 per 10 shares based on a total of 934,966,878 shares, amounting to a total cash dividend of RMB 120,010,884.81 [158]. - In 2020, the company repurchased 15,906,000 shares for a total amount of RMB 120,010,884.81, which is considered as cash dividend for the purpose of calculating the dividend ratio [165]. - The cash dividend total for 2020, including repurchase amounts, accounted for 47.88% of the net profit attributable to ordinary shareholders, which was RMB 252,842,315.01 [164]. - The company did not distribute cash dividends for 2020, focusing instead on share repurchase to ensure cash flow and sustainable development [165]. Subsidiaries and External Relations - The company has a total of 71 subsidiaries, including fully-owned subsidiaries and joint ventures, indicating a broad operational footprint [13]. - The subsidiary Hebei Changshan Jiukang Biotechnology Co., Ltd. reported a net loss of RMB 45,619,005.55 [117]. - The subsidiary Changshan Pharmaceutical (Hong Kong) Co., Ltd. achieved an operating income of RMB 141,160,880.03 with a net profit of RMB 9,515,544.76 [118]. - The company achieved a net profit of 27,672,336.34 CNY from its Jiangsu subsidiary, primarily from the sale of low molecular heparin raw materials and exports of heparin sodium raw materials [128]. - The Hong Kong subsidiary generated a net profit of 9,515,544.76 CNY from exporting raw materials [128]. Future Outlook and Strategic Goals - The company aims to become a leading domestic biopharmaceutical enterprise by 2025 and an internationally renowned biopharmaceutical enterprise by 2030 [134]. - The company plans to increase production and sales of low molecular weight heparin preparations while expanding into overseas developed markets [135]. - The company intends to enhance its export business's contribution to revenue and profit through the construction of a raw material base and international market expansion [135]. - The company is focusing on developing new products, including bovine heparin raw materials and low molecular preparations, to tap into the global Muslim market [135]. - The company aims to accelerate the clinical and market progress of new drugs, including Abenetide and anti-tumor drugs, to enter the diabetes and anti-tumor markets within 5 to 6 years [135]. - The company will pursue opportunities for mergers, technical cooperation, and joint ventures to enhance its innovation capabilities and sustainable growth [135].