SUNHERE(SZ:300452)2023-04-07 16:00Financial Performance - The company's operating revenue for 2022 was CNY 704,525,235.45, representing a 14.24% increase compared to CNY 616,707,253.38 in 2021[18]. - The net profit attributable to shareholders for 2022 was CNY 130,708,710.84, a significant increase of 46.45% from CNY 89,253,357.77 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 119,663,169.13, up 50.79% from CNY 79,358,791.40 in 2021[18]. - The basic earnings per share for 2022 was CNY 0.56, reflecting a 47.37% increase from CNY 0.38 in 2021[18]. - The total assets at the end of 2022 amounted to CNY 1,180,550,962.11, a 22.64% increase from CNY 962,583,989.34 at the end of 2021[18]. - The net assets attributable to shareholders at the end of 2022 were CNY 722,521,885.86, which is a 12.89% increase from CNY 640,000,201.75 in 2021[18]. - The cash flow from operating activities for 2022 was CNY 132,817,316.90, an increase of 27.93% compared to CNY 103,823,162.32 in 2021[18]. - The weighted average return on equity for 2022 was 19.39%, up from 14.76% in 2021, indicating improved profitability[18]. Industry Overview - The total revenue for the pharmaceutical manufacturing industry in China was CNY 29,111.4 billion in 2022, a decrease of 1.6% year-on-year[29]. - The total profit for the pharmaceutical manufacturing industry in China was CNY 4,288.7 billion in 2022, down 31.8% compared to the previous year[29]. - The average price reduction for selected drugs in the sixth batch of national centralized procurement reached 48%, with some products seeing reductions of over 70%[30]. - The market for pharmaceutical excipients in China is projected to reach CNY 140.6 billion by 2025, indicating significant growth potential[32]. - The global pharmaceutical excipients market is expected to reach USD 85.3 billion in 2023, highlighting the industry's expansive opportunities[32]. Product Development and Innovation - The company is focusing on technological innovation and aligning with international standards to enhance the quality of pharmaceutical excipients[31]. - The company has developed 39 products that have obtained registration numbers from the CDE, and several products have received the Food Production License from the Anhui Provincial Market Supervision Administration[34]. - Key products include microcrystalline cellulose, hydroxypropyl methylcellulose, and sodium carboxymethyl starch, which are recognized as high-tech products in Anhui Province[33]. - The company has achieved multiple certifications, including 10 EXCiPACT certifications and 14 DMF registrations in the US, enhancing its product quality and market competitiveness[44]. - The company successfully developed injection-grade excipients, marking a breakthrough in the injection-grade excipient field[51]. Market Strategy and Expansion - The company has established a marketing network with over 2,700 pharmaceutical manufacturers across more than 30 provinces and regions in China[48]. - The company’s export business has maintained high growth, with products exported to countries including Germany, the UK, and the USA[48]. - The company aims to maintain its position as a specialized and diversified manufacturer in the pharmaceutical excipient industry[34]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[125]. - A strategic acquisition of a local competitor is being considered to enhance production capabilities and market reach[125]. Financial Management and Governance - The company has established a fair and effective performance evaluation and incentive mechanism for senior management, combining basic annual salary with year-end performance assessments[106]. - The board of directors consists of 9 members, including 3 independent directors, meeting legal and regulatory requirements[104]. - The company has a complete and independent financial accounting system, with no instances of using company assets or credit for guarantees related to the controlling shareholder[111]. - The company has implemented a comprehensive internal control system to enhance governance and ensure the achievement of operational goals[107]. - The company has established a robust quality control system to ensure the production of high-quality pharmaceutical auxiliary materials[176]. Environmental and Social Responsibility - The company actively engages in environmental protection, ensuring that all pollutants are discharged in compliance with national standards, with no major environmental pollution incidents reported[177]. - The company has committed to energy-saving measures, setting annual targets for energy reduction and continuously promoting technological upgrades[177]. - The company emphasizes corporate social responsibility, participating in various public welfare activities and supporting vulnerable groups such as impoverished students[179]. - In 2022, the company donated 200,000 yuan to the Huainan Charity Association for epidemic prevention and provided 30,000 yuan worth of epidemic prevention materials to the Economic Development Zone[179]. - The company has established an emergency response plan for environmental incidents, which has been filed with the relevant environmental protection bureau[171]. Risk Management - The company has identified risks related to raw material price fluctuations and increased foreign trade costs, which may impact future performance[5]. - The company faces risks from raw material price fluctuations, which could impact production costs and profit margins[92]. - The company is expanding its international market presence, but rising foreign trade costs and currency fluctuations pose risks to profit margins[93]. - The company has established a risk management organization comprising the audit committee and internal audit department to oversee internal control management[155]. Employee Management and Compensation - The company reported a total of 905 employees at the end of the reporting period, with 580 in production, 80 in sales, 175 in technical roles, 14 in finance, and 56 in administration[140]. - The company’s remuneration policy aligns with job value and differentiates based on technical and professional capabilities, establishing a salary grading system[141]. - The total pre-tax remuneration for directors, supervisors, and senior management amounted to CNY 348.11 million[131]. - The highest remuneration was received by the Chairman and General Manager, totaling CNY 82.38 million[131]. - The company has established annual training plans based on departmental needs and past feedback, which are approved and executed by the human resources department[142].