Porton(SZ:300363)2021-03-12 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,071,875,421.80, representing a 33.56% increase compared to CNY 1,551,298,762.27 in 2019[36]. - The net profit attributable to shareholders for 2020 was CNY 324,416,211.29, a significant increase of 74.84% from CNY 185,550,375.49 in 2019[36]. - The net profit after deducting non-recurring gains and losses was CNY 288,226,952.19, up 77.82% from CNY 162,088,354.80 in 2019[36]. - The company's cash flow from operating activities for 2020 was CNY 504,374,812.57, an increase of 43.54% compared to CNY 351,373,889.80 in 2019[36]. - The total assets at the end of 2020 were CNY 4,496,939,175.86, reflecting a 13.69% increase from CNY 3,955,481,924.55 at the end of 2019[36]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,391,430,127.18, a 10.59% increase from CNY 3,066,684,114.86 at the end of 2019[36]. - The company reported a basic earnings per share of CNY 0.61 for 2020, which is a 74.29% increase from CNY 0.35 in 2019[36]. - The overall gross margin for the year was 41.68%, an increase of 3.84 percentage points compared to the previous year[54]. - The company achieved a total revenue of 2.072 billion yuan, representing a year-on-year growth of 33.56%, with all revenue coming from the API CDMO segment[53]. Client and Market Expansion - The company served over 1,400 clients globally and completed 10 innovative drug PV projects in 2020, with more than 500 active projects[13]. - The revenue concentration from the top ten clients decreased to 54% and from the top ten products to 31%, indicating improved business resilience[17]. - The company is expanding its global footprint with multiple development and production centers in China, Belgium, Switzerland, and the USA[10]. - The company has established strategic partnerships with major global pharmaceutical companies, including Johnson & Johnson, Pfizer, and Roche, enhancing its market position[44]. - The company has established business relationships with nearly 500 clients globally, including 16 of the top 20 pharmaceutical companies, providing contract custom R&D and production services for approximately 1,400 projects[45]. Investment and Capital Expenditure - The company plans to invest 278 million CNY in the construction of a formulation factory in Chongqing, enhancing its CDMO capabilities[89]. - The company has committed a total investment of 168,539.7 million CNY, with 146,202.76 million CNY already utilized, representing an investment progress of approximately 86.8%[125]. - The company raised a total of RMB 146,202.76 million in funds, with RMB 8,095.77 million directly invested in fundraising projects in 2020[122]. - The company utilized RMB 101,640.85 million for repaying bank loans and supplementing working capital, with RMB 98,877.05 million coming from the net amount of raised funds[122]. Research and Development - R&D expenses amounted to 158 million CNY, representing 7.62% of total revenue, an increase of 28.79% compared to the previous year[81]. - The number of R&D personnel increased to 599 in 2020, up from 393 in 2019, representing a growth rate of 52.5%[111]. - The company is actively involved in the research and development of new drugs, enhancing its competitive edge in the pharmaceutical sector[119]. - The company expanded its enzyme library by 183 enzymes and completed 54 screening projects, with 8 entering the process development or product delivery stage[83]. Environmental, Health, and Safety (EHS) - The company has established a comprehensive EHS (Environment, Health, and Safety) system, which has become a core competitive advantage, with annual EHS training for employees[20]. - The company emphasizes compliance and delivery records as core competitive advantages, which are crucial for maintaining long-term client relationships[58]. - The company reported a total wastewater discharge of 41.25 tons for chemical oxygen demand, well below the regulatory limit of 88.969 tons[193]. - The company strictly adheres to environmental protection laws, investing in pollution control and promoting sustainable development[192]. Dividend and Shareholder Returns - The profit distribution plan approved by the board proposes a cash dividend of RMB 1.21 per 10 shares (tax included) to all shareholders, based on a total of 540,447,320 shares[23]. - The cash dividend accounted for 20.16% of the total distributable profit of RMB 324,416,211.29[151]. - The company has maintained a consistent cash dividend distribution policy over the years, with a previous year's distribution of RMB 55,768,182.08, which was 30.06% of the net profit[151]. Strategic Shifts and Business Model Transformation - The company aims to transform its business model from CMO to CDMO, focusing on marketing transformation, product upgrades, and process development[125]. - The company is transitioning from CMO to CDMO, focusing on small and medium-sized clients and the North American market, driven by the increasing demand for high-value-added process development[133]. - The implementation of the MAH system in China is a significant policy support for the rapid development of the CDMO industry, facilitating the transformation of the pharmaceutical sector[135]. Challenges and Risks - The company faced foreign exchange risks, with exchange gains and losses of 427.28 million RMB, 291.06 million RMB, and -3,976.78 million RMB from 2018 to 2020[21]. - The company is actively addressing the challenges posed by raw material price increases and exchange rate fluctuations, which have affected accounts receivable and project delivery cycles[144]. - The company has faced uncertainties and risks in its core product performance, prompting a strategic shift in resource allocation[125]. Employee and Social Responsibility - The company emphasizes employee welfare, providing various training programs and fostering a harmonious labor relationship[191]. - The company actively participates in social welfare activities, including donations for pandemic prevention efforts[192]. - The company has established a union to enhance employee participation in management and promote a stable labor relationship[191].