GARDEN BIO-CHEM(SZ:300401)2023-03-27 16:00Financial Performance - The company's operating revenue for 2022 was CNY 1,417,511,816.01, representing a 26.89% increase compared to CNY 1,117,099,893.11 in 2021[20]. - The net profit attributable to shareholders decreased by 20.68% to CNY 383,722,581.79 from CNY 479,829,624.81 in the previous year[20]. - The net profit after deducting non-recurring gains and losses increased by 34.66% to CNY 348,567,290.39 compared to CNY 254,918,385.95 in 2021[20]. - The net cash flow from operating activities was CNY 377,039,761.35, down 26.40% from CNY 504,029,922.29 in 2021[20]. - The total assets at the end of 2022 reached CNY 4,131,859,509.89, a 17.05% increase from CNY 3,525,311,449.31 at the end of 2021[20]. - The net assets attributable to shareholders increased by 12.68% to CNY 2,572,174,931.79 from CNY 2,278,749,932.36 in 2021[20]. - The company’s total operating revenue for 2022 was ¥1,417,511,816.01, representing a year-on-year increase of 26.89% compared to ¥1,117,099,893.11 in 2021[58]. - The company's net profit attributable to shareholders was ¥383,722,581.79, a decrease of 20.68% from ¥483,766,455.27 in the previous year[56]. Dividend Distribution - The company plans to distribute a cash dividend of 1.40 CNY per 10 shares (including tax) based on a total of 551,007,557 shares[5]. - The company plans to distribute a cash dividend of RMB 1.40 per 10 shares, totaling RMB 77,141,057.98, which represents 20.10% of the net profit for 2022[136]. - The total number of shares for the dividend distribution is based on 551,007,557 shares[135]. - The company confirmed that the cash dividend policy complies with its articles of association and shareholder resolutions[134]. - There are no stock bonuses or share increases planned for this period[135]. Market and Product Development - The company reported a significant focus on the development of new products, particularly in the field of Vitamin D3, which includes various formulations[12]. - The company is actively pursuing market expansion strategies, particularly in the healthcare and nutritional sectors, to enhance its competitive position[12]. - The company emphasizes the importance of innovation in its product offerings, particularly in the pharmaceutical sector, to meet market demands[12]. - The company is focused on enhancing its production capabilities to support the growing demand for its products, particularly in the international markets[12]. - The company has successfully registered multiple products, including valsartan amlodipine tablets and doxofylline injection, which are now included in national procurement programs[34]. - The valsartan amlodipine tablet has been selected in 25 provinces for national procurement, indicating strong market penetration[38]. - The company has completed the layout of the entire vitamin D3 industrial chain, becoming the only global producer with this capability, significantly enhancing its competitive edge[46]. - The company is transitioning from generic drugs to high-tech barrier formulations, focusing on chronic disease areas such as cardiovascular and neurological conditions[52]. Research and Development - The company has three R&D centers in Dongyang, Jinhua, and Hangzhou, focusing on natural product biosynthesis, industrialization research, and cutting-edge drug trials, continuously developing new products and optimizing existing processes[43]. - In 2022, the company obtained three drug registration approvals, including Metronidazole tablets and Dexamethasone injection, and has five products under review and nine in development[44]. - Research and development expenses increased by 18.66% to ¥70,343,069.11, compared to ¥59,280,575.57 in 2021[56]. - The company’s R&D investment amounted to ¥83,522,135.46, representing 5.89% of operating revenue, a decrease from 6.14% in 2021[71]. - The number of R&D personnel increased by 16.06% to 159 in 2022, reflecting a commitment to enhancing research capabilities[70]. Risk Management - The company has outlined potential risks in its future development outlook, emphasizing the importance of risk management in its operations[5]. - The company faces significant risks from Vitamin D3 price fluctuations, which have a high impact on revenue due to its substantial contribution to total sales[96]. - Project investment risks are present due to uncertainties in construction progress, implementation, and effectiveness, despite the company's strong technical foundation[96]. - The company is at risk of management and human resource integration challenges as it requires a significant influx of high-quality talent for its strategic development[96]. - The ongoing medical reform in China may alter market competition and operational models, posing a risk to the company's performance if it fails to adapt[97]. - The government’s drug price management policies may lead to a continued downward trend in drug prices, potentially affecting the company's profitability[97]. - The risk of not being selected in centralized drug procurement could adversely impact the sales of certain products if they fall under the procurement scope[97]. Corporate Governance - The company is committed to maintaining high standards of financial reporting and transparency, as evidenced by the involvement of its board and accounting personnel in the annual report[5]. - The company has established a robust governance structure with independent directors and a diverse management team[121]. - The company is committed to optimizing its governance structure and management processes to enhance operational efficiency and digital management levels[95]. - The company maintains a complete and independent operational system, ensuring no interference from the controlling shareholder in its business activities[110]. - The company has a diverse board with members having extensive backgrounds in economics and management[115][116]. Environmental Responsibility - The company has established a comprehensive wastewater treatment system, ensuring effective collection and treatment of various wastewater types[149]. - The company has been recognized as one of the first four key industry environmental "leaders" in Zhejiang Province[149]. - The company holds valid pollution discharge permits, with the latest issued on March 4, 2022, valid until March 3, 2027[147]. - The company employs advanced waste gas treatment technologies, including deep cooling and resin adsorption, to minimize emissions[149]. - The company has implemented a noise control strategy by using low-noise equipment and installing soundproofing devices[150]. - The company has developed emergency response plans for environmental incidents and conducts regular training for employees[151]. - The company adheres to strict environmental protection standards, with all monitored emissions reported to environmental authorities in real-time[150]. - The company emphasizes a green development philosophy, focusing on source reduction, process control, and end treatment of waste[149]. Employee and Management - The company has a total of 849 employees, with 462 in production, 198 in technical roles, and 45 in sales[131]. - The educational background of employees includes 233 with a bachelor's degree or higher, 265 with an associate degree, and 351 with less than an associate degree[131]. - The company has implemented a performance-based compensation system to encourage employees to contribute to profitability and development[132]. - The company’s management team includes experienced professionals with backgrounds in finance, engineering, and human resources[119][120]. - The company has established a comprehensive training system for new employees and ongoing skill development[133]. Strategic Partnerships and Market Presence - The company has established a stable strategic partnership with international manufacturers and distributors, enhancing its market presence and brand recognition in the feed, food, and pharmaceutical industries[50]. - The company has established a comprehensive sales network covering most regions in China, primarily using a "distribution + academic promotion" sales model[42]. - The company is actively involved in the pharmaceutical industry, with key personnel holding significant positions in related associations[115]. Compliance and Legal Matters - The company has not sold any significant assets during the reporting period[90]. - The company has no changes in the use of raised funds or any issues in fund usage disclosure[89]. - The company reported no violations of external guarantees during the reporting period[173]. - There were no major lawsuits or arbitration matters during the reporting period[176]. - The company did not engage in any asset or equity acquisition or sale transactions during the reporting period[180].