Fushine(SZ:300497)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,163,433,590.29, representing a 21.42% increase compared to ¥958,150,476.04 in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥194,724,797.03, which is a 9.67% increase from ¥177,550,392.49 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥193,111,290.53, up 15.68% from ¥166,937,949.10 in 2017[21]. - The total assets at the end of 2018 were ¥2,196,483,843.13, a 22.75% increase from ¥1,789,407,728.19 at the end of 2017[21]. - The net assets attributable to shareholders increased by 19.14% to ¥1,116,216,860.63 from ¥936,873,593.32 in 2017[21]. - The basic earnings per share for 2018 were ¥0.88, an increase of 8.64% compared to ¥0.81 in 2017[21]. - The diluted earnings per share also rose to ¥0.88 from ¥0.81 in the previous year, reflecting an 8.64% increase[21]. - The weighted average return on equity for 2018 was 18.88%, down from 21.13% in 2017, indicating a decrease of 2.25%[21]. - The total operating revenue for 2018 was ¥1,163,433,590.29, representing a year-on-year increase of 21.42% compared to ¥958,150,476.04 in 2017[49]. - The revenue from active pharmaceutical ingredients (APIs) was ¥489,503,703.31, accounting for 42.07% of total revenue, with a slight increase of 0.86% from the previous year[49]. - The revenue from intermediates reached ¥665,150,924.66, which is 57.17% of total revenue, showing a significant growth of 40.67% year-on-year[49]. - Domestic sales amounted to ¥749,652,150.93, representing 64.43% of total sales, with a year-on-year increase of 17.62%[49]. - International sales were ¥413,781,439.36, making up 35.57% of total sales, with a notable increase of 28.98% compared to the previous year[49]. - The gross profit margin for the pharmaceutical manufacturing industry was 37.25%, which is a decrease of 0.95% from the previous year[51]. Research and Development - The company focuses on two main product lines in the antibiotic sector, emphasizing the development of sterile raw materials and formulations[6]. - The company plans to continue investing in R&D to ensure sustainable product development and market competitiveness[7]. - The company emphasizes the importance of market research to guide its drug development efforts[8]. - The company has established a high-tech R&D center to support innovative product development[7]. - The company’s R&D expenses increased by approximately $0.65 million, a year-on-year increase of 222.7%, indicating a focus on advancing formulation research into clinical stages[33]. - The R&D team consists of 206 members, accounting for approximately 14.58% of the total workforce, with a strong emphasis on innovation and quality research[36]. - The company plans to accelerate the R&D of new products, specifically targeting the development of new formulations and expanding the product line for Penicillin, aiming to obtain one formulation product approval within the year[88]. Environmental Commitment - The company is committed to environmental protection and has increased investment in pollution control measures[7]. - The company has maintained compliance with environmental discharge standards, with COD emissions at 72.4 mg/l, below the limit of 120 mg/l[125]. - The company has reported a significant focus on environmental protection, with no major pollution incidents or complaints during the reporting period[127]. - The company upgraded its wastewater treatment facilities, completing the second phase of upgrades to enhance wastewater recycling and utilization[127]. - The company has installed gas absorption devices in all production workshops to control emissions effectively[127]. - The company has a total of 21 environmental protection personnel, with 5 holding detection qualifications, ensuring compliance with national emission standards[130]. - The company has implemented a closed-loop system for waste gas management, significantly reducing unorganized emissions[127]. - The company has introduced advanced recycling devices to enhance the recovery and utilization of industrial solid waste[127]. - The company has established an emergency response plan for environmental incidents, filed with the local environmental protection bureau[129]. - All construction projects have passed environmental impact assessments and obtained necessary permits[128]. - The company is committed to optimizing green production processes to minimize pollutant generation[127]. - The company has made substantial investments in advanced equipment and environmentally friendly technologies to improve overall environmental performance[127]. Shareholder Returns and Capital Management - The company reported a cash dividend of 2 RMB per 10 shares and a stock bonus of 2 shares per 10 shares, with no capital reserve conversion[9]. - The company initiated a share repurchase program, acquiring 4,041,304 shares for a total amount of RMB 69,858,967.50, to enhance investor confidence[41]. - The company has completed 34.93% of its share repurchase plan with a funding limit of RMB 200 million[42]. - The company successfully issued convertible bonds with a total scale of no more than RMB 420 million, net proceeds amounting to RMB 411.98 million after deducting issuance costs[43]. - The company is committed to a shareholder return plan for the next three years (2018-2020)[45]. - The cash dividend distributed represents 24.23% of the total distributable profit of 194,724,797.03 CNY[92]. - The company has not proposed a cash dividend distribution plan for the reporting period despite positive profits available for distribution[97]. - The company’s cash dividend distribution is subject to adjustments based on changes in share capital after board approval[94]. - The company will implement a cash dividend plan if it fails to take stabilization measures, with a limit of 20% of the previous year's net profit for a single instance[99]. - The company will ensure that the repurchase does not lead to a distribution of shares that does not meet listing conditions[98]. - The company will use its own funds for share repurchase[99]. - The company will announce any share reduction plans three trading days in advance[98]. - The company will disclose the reasons for not implementing price stabilization measures if applicable[99]. Market Position and Strategy - The company has increased its foreign sales revenue proportion, which poses a risk due to potential RMB appreciation against the USD[7]. - The company faces risks related to market competition and the need to diversify its product lines to ensure future growth[6]. - The company has established a stable customer base, including well-known international clients such as Fika and Arabindo, ensuring consistent demand for its products[36]. - The company is a leading supplier of β-lactamase inhibitors globally, with a focus on the production and sales of key antibiotic raw materials[31]. - The company is actively implementing an industry chain extension strategy, focusing on the transition from non-sterile to sterile raw materials[42]. - The company plans to expand its production capacity for new enzyme inhibitors as part of its growth strategy[43]. - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the biotechnology sector[104]. - Future guidance suggests a targeted revenue growth rate of approximately 10% annually, driven by strategic initiatives and market demand[168]. Corporate Governance and Compliance - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, ensuring compliance with relevant laws and regulations[185]. - The company maintains independence from its controlling shareholder in business, personnel, assets, organization, and finance, with a complete and independent business operation capability[186]. - The company has been actively managing its internal controls and financial activities, as evidenced by the independent opinions provided by the board of directors[191]. - The company has engaged in discussions regarding the appointment of a new financial director, indicating a focus on strengthening its financial management team[192]. - The company has approved a plan to repurchase shares, which is expected to support stock price stability and shareholder confidence[192]. - The company has reported no significant internal control deficiencies during the reporting period, indicating a strong internal control environment[196]. Employee and Management Structure - The total number of employees in the company is 1,413, with 1,002 in the parent company and 411 in major subsidiaries[179]. - The company has a professional composition of 872 production personnel, 20 sales personnel, and 147 technical personnel[179]. - The total remuneration for directors and senior management during the reporting period amounts to 742.54 million yuan[178]. - The company has established a special award system as part of its compensation policy to motivate employees[181]. - The company organized a total of 84 internal training sessions, with 3,419 participants, and 9 external training sessions with 38 participants, totaling 2,578 training hours[182].