BOJI CRO(SZ:300404)2020-04-23 16:00Dividend Distribution - The company plans to distribute a cash dividend of 0.1 yuan per 10 shares and a capital reserve increase of 3 shares per 10 shares based on a base of 173,342,000 shares[6]. - A cash dividend of RMB 0.1 per share (totaling RMB 1,733,420) will be distributed, with a capital reserve conversion of 3 shares for every 10 shares held[113]. - The cash dividend payout ratio for 2019 was 26.29% of the net profit attributable to shareholders[120]. - The cash dividend payout ratio for 2018 was 27.15% of the net profit attributable to shareholders[120]. - The total cash dividends distributed in 2019 amounted to RMB 1,733,420.00, while the total for 2018 was RMB 2,008,762.50[120]. - In 2015, the company distributed a cash dividend of RMB 0.50 per 10 shares, totaling RMB 6,667,000.00[116]. - No cash dividends were distributed for the years 2016 and 2017, nor were there any stock bonuses or capital reserve transfers[116][117]. - In 2018, the company distributed a cash dividend of RMB 0.15 per 10 shares, totaling RMB 2,008,762.50, and issued 40,175,250 bonus shares[118]. - For 2019, the proposed cash dividend was RMB 0.10 per 10 shares, totaling RMB 1,733,420.00, along with a transfer of 52,002,600 bonus shares[118]. Financial Performance - The company's operating revenue for 2019 was RMB 224,064,704.39, representing a 30.24% increase compared to RMB 172,042,840.49 in 2018[19]. - The net profit attributable to shareholders for 2019 was RMB 6,592,620.34, a decrease of 10.91% from RMB 7,399,910.67 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was RMB 1,837,396.93, down 52.94% from RMB 3,904,677.45 in 2018[19]. - The net cash flow from operating activities was RMB 85,874.81, a significant decline of 99.68% compared to RMB 27,059,863.81 in the previous year[19]. - The total assets at the end of 2019 were RMB 633,081,946.60, an increase of 4.47% from RMB 606,022,667.36 at the end of 2018[19]. - The net assets attributable to shareholders at the end of 2019 were RMB 422,651,741.36, up 2.45% from RMB 412,547,766.99 in 2018[19]. - The company reported a basic earnings per share of RMB 0.0380, down 11.01% from RMB 0.0427 in 2018[19]. - The company achieved total revenue of ¥224,064,704.39 in 2019, representing a year-on-year growth of 30.24%[54]. - The net profit attributable to the parent company was ¥6,592,620.34, a decrease of 10.91% compared to the previous year[54]. Business Strategy and Development - The company aims to enhance its risk resistance by developing innovative drug clinical services and preclinical services, leveraging its industry experience and talent advantages[4]. - The company is focusing on developing new business areas such as preclinical research services and CDMO services, facing potential challenges due to existing competitive players in the market[6]. - The company is committed to adjusting its business structure and development direction in response to changes in drug approval policies by NMPA[4]. - The company aims to meet customer needs and accelerate drug development processes to benefit patient health[28]. - The company is focusing on establishing partnerships with multinational pharmaceutical companies for international multi-center clinical research services[102]. - The company plans to invest in healthcare product R&D and pursue mergers and acquisitions to enhance its industry layout and core competitiveness[104]. - The company will continue to develop its CDMO services and expand its business chain in the R&D and production service areas[104]. - The company aims to integrate its services from drug research to production, establishing a one-stop CRO service model[101]. - The company plans to focus on the CRO industry, aiming to develop a comprehensive new drug research platform over the next three to five years[101]. Risk Management - The company acknowledges the risk of contract execution delays due to the complexity of new drug development, which may lead to budget management challenges and potential cost overruns[5]. - The company has established a risk-sharing mechanism in contracts to address potential losses due to unforeseen circumstances during the execution of long-term projects[5]. - The company recognizes the need for careful project evaluation and strict process management to minimize project delays and associated penalties[5]. - The company anticipates potential risks from policy changes affecting new drug approvals and will adjust its business structure accordingly[105]. - The company is enhancing its management capabilities to mitigate risks associated with expanding its operational scale and business scope[108]. Market Trends and Competition - The rapid growth of domestic CRO companies has intensified competition in the pharmaceutical R&D outsourcing industry, necessitating improved marketing and service levels[5]. - The global CRO industry market size reached $57.8 billion in 2018, with a projected growth to $95.1 billion by 2023, reflecting a CAGR of 10.47% from 2018 to 2023[32]. - The domestic CRO market size was approximately $5.8 billion in 2018, with expectations to grow to $21.4 billion by 2023, indicating a CAGR of 29.6% during the same period[33]. - The CRO industry in China is entering a golden era, driven by the shift of global pharmaceutical outsourcing orders to the Asia-Pacific region and the cost advantages from local engineering talent[33]. Operational Efficiency - The company emphasizes the importance of internal management and integration to improve operational efficiency as it scales its business[6]. - The company has developed a nationwide service network, facilitating high-frequency monitoring of clinical research processes[45]. - The company has implemented a standardized quality control system, improving the reliability and efficiency of clinical research services[42]. - The company aims to expand its clinical research service network and enhance quality control to solidify its competitive edge in the clinical research sector[102]. Research and Development - The company has engaged in some preclinical independent research and technology transformation services based on market trends and technical expertise[28]. - The company has developed multiple new drug and generic drug projects through independent research, leveraging its technical expertise and market trends[30]. - The company is conducting IND research for the targeted therapy drug RUNNOR9591 for drug-resistant lung cancer, which has received clinical research permission[78]. - The company has made significant advancements in inhalation formulations, completing efficacy studies for asthma treatment nebulizers[79]. - Research and development expenses increased by 35.56% to CNY 18,279,480.95, reflecting the company's increased investment in R&D[76]. - The company invested approximately ¥18.28 million in R&D in 2019, representing 8.16% of its operating revenue, an increase from 7.84% in 2018[81]. Subsidiaries and Investments - The company established a new wholly-owned subsidiary, Guangdong Guangji Investment Co., Ltd., during the reporting period[71]. - The company established a joint venture, Shenzhen Chenji Pharmaceutical Technology Co., Ltd., with a registered capital of RMB 30 million, in which the company holds a 10% stake[168]. - The company completed a capital increase for its subsidiary, Guangzhou Boji Biomedical Technology Park Co., Ltd., with the registered capital increasing from 112 million RMB to 121.57 million RMB, reducing the company's ownership from 100% to 94.59%[166]. - The company invested in establishing a new subsidiary, Xinxiang Boji Pharmaceutical Technology Co., Ltd., with a registered capital of 10 million RMB, of which the company contributed 8 million RMB (80%)[166]. Management and Governance - The company has maintained a stable management structure with no significant turnover in key positions over the past year[200]. - The management team includes 10 members, with a mix of roles including independent directors and supervisors[198]. - The average age of the senior management team is approximately 47 years, indicating a relatively experienced leadership[198]. - Wang Tingchun serves as both the chairman and general manager of the company[190]. - The company appointed Wei Fangqun as the new Secretary of the Board on October 28, 2019, following the resignation of Han Yuping[200].