Fushine(SZ:300497)2022-04-28 16:00Financial Performance - The net profit attributable to shareholders decreased significantly compared to the previous year, primarily due to rising raw material prices and a decline in sales volume and prices of certain products, with investment losses recognized from a partnership affected by environmental policies[7]. - The company will not distribute cash dividends or issue bonus shares for the reporting period[21]. - The company's operating revenue for 2021 was ¥1,429,542,874.53, a decrease of 4.25% compared to ¥1,492,952,990.67 in 2020[38]. - The net profit attributable to shareholders in 2021 was ¥48,830,662.43, representing a significant decline of 84.71% from ¥319,300,200.51 in 2020[38]. - The net profit after deducting non-recurring gains and losses was ¥106,440,849.54, down 62.89% from ¥286,829,965.20 in the previous year[38]. - The net cash flow from operating activities decreased by 81.09% to ¥72,321,556.16 from ¥382,350,651.43 in 2020[38]. - The total assets at the end of 2021 increased by 15.64% to ¥4,678,491,173.43 compared to ¥4,045,665,857.13 at the end of 2020[38]. - The net assets attributable to shareholders decreased by 4.23% to ¥2,880,206,760.70 from ¥3,007,345,500.94 in 2020[38]. - The basic earnings per share for 2021 was ¥0.09, a decrease of 87.14% from ¥0.70 in 2020[38]. - The diluted earnings per share was also ¥0.09, down 86.96% from ¥0.69 in the previous year[39]. - The company reported a net profit of ¥-112,243,832.22 in Q4 2021, contrasting with profits in the first three quarters[41]. - The company received government subsidies amounting to ¥28,528,987.57 in 2021, down from ¥45,705,604.74 in 2020[43]. Market Expansion and Business Strategy - The company plans to strengthen existing businesses, expand market share, and enhance its competitive edge through increased R&D investment and the development of new products[10]. - The company is actively extending its business into CDMO, new energy, and new materials sectors to improve long-term profitability and risk resistance[11]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 30% increase in market share by 2023[32]. - Fushine Pharmaceutical is considering strategic acquisitions to enhance its product portfolio, with a budget of RMB 500 million allocated for potential deals in 2022[32]. - The company is positioned to benefit from the growing global demand for new drug research and development, particularly in the Asia-Pacific region[71]. - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[171]. - The company plans to accelerate its CDMO business development, with expected related transactions with Lingfu Pharmaceutical Research Institute amounting to RMB 60 million in 2022[142]. - The company is actively developing lithium battery electrolyte additive projects to capitalize on the growing demand in the lithium battery industry[143]. Research and Development - The company acknowledges the long R&D cycles in the pharmaceutical industry and will continue to invest in research while conducting thorough market studies[17]. - R&D investment increased by 25% in 2021, totaling RMB 150 million, aimed at enhancing product development and innovation[32]. - The R&D team consists of 301 members, accounting for 16.28% of total employees, supporting the company's innovation and development efforts[77][78]. - The company is investing heavily in R&D, with an allocation of 100 million RMB for the development of new pharmaceutical technologies in 2022[178]. - Research and development expenses amounted to 78,511,845.69 yuan, which is 5.49% of the operating revenue, showing an increase from 5.19% in 2020[106]. Environmental and Compliance Initiatives - The company emphasizes the importance of environmental protection and has increased investments in pollution control to comply with stricter regulations[15]. - The company is committed to compliance governance to enhance its competitive edge and ensure sustainable development[147]. - Safety production remains a priority, with ongoing training and inspections to ensure compliance and minimize risks[146]. Corporate Governance and Management - The company emphasizes its commitment to improving corporate governance and investor relations, ensuring compliance with all regulatory requirements[154]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a balanced governance structure[157]. - The company has established a comprehensive performance evaluation system for senior management, linking their performance directly to compensation[160]. - The total remuneration for key management personnel was reported at 1,337,703 RMB, indicating a structured approach to executive remuneration[166]. - The company has a well-structured organizational framework, with independent operation of its general meeting, board of directors, and supervisory board[162]. Financial Outlook and Projections - Future guidance indicates a projected revenue growth of 20% for 2022, driven by new product launches and market expansion efforts[32]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[151]. - The company aims to enhance its pharmaceutical supply chain by expanding production of new enzyme inhibitors and high-efficiency antibiotics, with a focus on increasing product value and core competitiveness[140]. Shareholder Returns and Capital Management - The company has repurchased a total of 11,355,900 shares, accounting for 2.06% of total share capital, with a total expenditure of approximately ¥174.83 million[89]. - The company plans to retain cash for project investments to ensure stable cash flow and support long-term development strategies[200]. - The decision not to distribute profits is aligned with the company's development needs and investor return considerations[200]. - The company emphasizes reasonable returns to investors and will continue to adhere to profit distribution policies[200].