Cosunter(SZ:300436)2022-04-21 16:00Financial Performance - The company's operating income remained stable compared to the previous year, but net profit experienced a loss due to factors such as national drug procurement policies leading to price declines and increased R&D, sales, and management expenses [4]. - The company's operating revenue for 2021 was ¥370,442,190.29, representing a slight increase of 0.53% compared to ¥368,489,433.97 in 2020 [19]. - The net profit attributable to shareholders was -¥34,886,550.27 in 2021, a significant decline of 335.33% from ¥14,824,518.08 in 2020 [19]. - The net cash flow from operating activities was -¥17,764,779.27, down 213.90% from ¥15,597,456.96 in the previous year [19]. - The total assets at the end of 2021 reached ¥1,446,766,520.34, an increase of 43.85% from ¥1,005,780,979.42 at the end of 2020 [19]. - The net assets attributable to shareholders increased by 80.95% to ¥1,043,355,057.64 at the end of 2021, compared to ¥576,597,504.24 at the end of 2020 [19]. - The company reported a basic earnings per share of -¥0.2335 for 2021, a decrease of 320.49% from ¥0.1059 in 2020 [19]. - The weighted average return on equity was -4.40% in 2021, down 7.00% from 2.60% in 2020 [19]. - The company reported a total of ¥49,958.41 million raised through a private placement, with ¥25,676.24 million already utilized for designated projects [110]. Research and Development - The company plans to accelerate the research and development of innovative drugs and enhance marketing capabilities and sales channels to improve operational efficiency and risk resistance [5]. - R&D expenses increased significantly to CNY 68.99 million, up CNY 21.52 million year-on-year, contributing to a net loss of CNY 34.89 million [75]. - The company has invested significantly in innovative drug development, with a focus on liver health, and has six innovative drugs in the pipeline, five of which have received clinical approval [54]. - The innovative drug GST-HG141 has completed Phase Ia clinical trials and is preparing for Phase II trials, showing promising safety and efficacy [75]. - The company is actively pursuing the development of new drugs for non-alcoholic fatty liver disease and liver fibrosis, with the new drug GST-HG151 having successfully enrolled its first subject in Phase I clinical trials [68]. - The company aims to continue its innovation strategy by developing global first-class innovative drugs targeting COVID-19, hepatitis B clinical cure, liver cancer, and liver fibrosis [44]. Market and Industry Trends - The pharmaceutical industry is projected to grow at a compound annual growth rate of 3%-6% from 2022 to 2026, with global drug spending expected to reach nearly $1.8 trillion by 2026 [30]. - China's pharmaceutical expenditure is expected to grow at a compound annual growth rate of 3.8% over the next five years, reaching $205 billion by 2026 [31]. - The implementation of various policies such as "two-invoice system" and drug price negotiations has increased operational pressure on pharmaceutical companies, leading to a trend of industry consolidation and higher concentration [32]. - The market for drugs targeting non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH) is projected to exceed $15 billion by 2025, highlighting a substantial opportunity for new therapies [37]. Product Development and Sales - The company has developed a comprehensive product line for liver health, including five major antiviral drugs for hepatitis B, positioning itself as a leading enterprise in the domestic antiviral field [44]. - The company’s antiviral drugs, including tenofovir and entecavir, have passed consistency evaluations, enhancing market competitiveness and accelerating the import substitution of generics [47]. - The company has successfully launched sildenafil and tadalafil, which are among the largest products in the erectile dysfunction market, further diversifying its product offerings [50]. - The company has expanded its cardiovascular product line with rivaroxaban and pitavastatin, both included in the 2021 National Basic Medical Insurance Drug List, enhancing its market presence [52]. - The company actively participates in national drug centralized procurement, which has improved its product market share significantly [48]. - The company’s sales of hepatitis B antiviral drugs are not affected by seasonal or cyclical factors, indicating stable demand [45]. Corporate Governance and Management - The company maintains strict independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring a complete and autonomous business capability [139]. - The company emphasizes transparency in information disclosure, adhering to regulations and ensuring timely and accurate communication with shareholders [138]. - The company has established a fair and transparent performance evaluation and incentive mechanism for its directors and senior management, enhancing employee motivation [138]. - The company has a dedicated investor hotline and communication channels to gather feedback from investors regarding its operations and management [138]. - The company has maintained a stable board of directors, with terms extending until January 2024 for key members [141]. Environmental Responsibility - The company has established a dedicated safety and environmental protection department to oversee environmental management and compliance [196]. - The company has implemented real-time monitoring systems for wastewater and VOC emissions, ensuring compliance with environmental standards [196]. - The company reported no environmental violations or accidents as of December 2021 [196]. - The company’s wastewater treatment meets the discharge standards with a COD concentration of 27.9 mg/L, below the limit of 100 mg/L [195]. - The company has successfully completed environmental impact assessments for all projects, adhering to national laws and regulations [196]. Employee Development and Welfare - The company emphasizes a performance-based compensation system, aligning salaries with job value and providing various employee benefits [174]. - In 2021, the company focused on talent development, implementing tailored training programs for core and potential talents [175]. - The training system was optimized to enhance employee skills and promote a competitive learning environment [176]. - The employee composition includes 317 production staff, 316 sales personnel, 89 technical staff, 17 financial staff, and 134 administrative staff [173]. - The company received the "Best Employer with Development Potential" award from Zhaopin and Peking University, reflecting its commitment to employee welfare and satisfaction [199].