Sito Bio(SZ:300583)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥965.8 million, a decrease of 8.22% compared to ¥1,052.3 million in 2018[28]. - The net profit attributable to shareholders for 2019 was approximately ¥55.3 million, down 56.13% from ¥126.1 million in the previous year[28]. - Basic earnings per share for 2019 were ¥0.52, a decline of 55.93% from ¥1.18 in 2018[28]. - The company reported a total revenue of 11,575,928.88 in the current period, compared to 23,484,513.50 in the previous period, indicating a significant decrease[35]. - The company achieved a net profit of -15.55 million yuan during the reporting period[49]. - The company reported a total revenue of 199.12 million, with a net loss of 19.587 million for the reporting period[97]. - The company's net profit attributable to shareholders for the year was CNY 55,309,472.92, with a distributable profit of CNY 535,772,779.26 as of December 31, 2019[145]. Investments and Acquisitions - The company acquired Lisapharma to enhance its international market presence and expand its product line in high-end specialty raw materials[15]. - The company invested a total of 55.79 million yuan in R&D, accounting for 5.78% of total revenue and 86.21% of profit, with a team of 158 R&D personnel[52]. - The company acquired 83.08% of Lisapharma, with a total investment of 158.45 million yuan, enhancing its presence in the formulation sector[49]. - The company has invested 11,460.00 million to acquire 100% equity of Runxin Thermal Power, fully utilizing the fundraising for this purpose[110]. - The company has made strategic investments in Lisapharma to enhance its production capabilities and expand its overseas market presence[118]. Research and Development - The company is focusing on enhancing its R&D capabilities and has made progress in developing high-end specialty raw materials, including Fluticasone propionate[15]. - The company plans to accelerate the development of high-end specialty raw materials, focusing on respiratory drugs like Fluticasone propionate[81]. - R&D investment increased significantly due to the addition of three new high-end raw material drug projects and the expansion of the R&D team[82]. - The company has a total of 17 patents, with 4 new patents granted during the reporting period[52]. - The company will enhance its R&D capabilities by increasing investment and recruiting top talent, especially after acquiring Lisapharma, which complements its domestic R&D platform[133]. Market and Industry Position - The company is a key supplier of steroid drug raw materials in China, utilizing gene engineering and microbial transformation technologies[38]. - The global steroid hormone drug market has been growing at over 10% annually since the 1990s, ensuring stable demand for steroid intermediates and raw materials[44]. - The company has become a leading domestic supplier of steroid drug raw materials by leveraging advanced gene engineering and fermentation technologies[45]. - The company has identified market opportunities in high-end respiratory specialty raw materials, indicating a strategic focus on this segment[14]. - The company has increased its market share in steroid intermediates due to competitive pricing strategies implemented over the past few years[133]. Operational Efficiency and Challenges - The company is committed to improving its operational efficiency and sustainable development capabilities in response to market challenges[16]. - The company acknowledges risks related to the COVID-19 pandemic, which may impact revenue and operational performance in 2020[6]. - The company faces industry risks due to increased competition and potential fluctuations in raw material prices, which could affect profitability[7]. - The company emphasizes the importance of upgrading its industrial capabilities to maintain competitive advantages amid market changes[9]. - The company is focusing on enhancing its management level and optimizing resource allocation to improve operational efficiency and profitability[134]. Financial Health and Cash Flow - The net cash flow from operating activities improved significantly, reaching approximately ¥57.6 million, compared to a negative cash flow of ¥335.3 million in 2018, marking a 117.18% increase[28]. - Operating cash inflow totaled ¥745,708,794.53 in 2019, a 5.12% increase year-over-year, while cash outflow decreased by 34.13%[84]. - The net cash flow from investment activities increased by 103.46% to ¥13,171,668.65, attributed to decreased short-term investment purchases and the acquisition of Lisapharma[84]. - The company has a total of 102.563 million raised from public offerings, with 79.739 million already utilized, representing 66.24% of the total[103]. - The company has a net balance of RMB 6,510.99 million in the special account for raised funds after deducting bank fees[111]. Environmental and Social Responsibility - The company is committed to environmental protection and has implemented measures to reduce pollution and manage waste effectively[139]. - The company has maintained a strong focus on corporate social responsibility, emphasizing shareholder returns and employee welfare[189]. - The company is classified as a key pollutant discharge unit, with specific pollutants monitored and treated according to environmental standards[197]. - Wastewater is treated through advanced processes including multi-effect evaporation and Fenton oxidation, ensuring compliance with discharge standards[198]. - The company employs various methods for exhaust gas treatment, including alkaline spraying and catalytic oxidation, to ensure emissions meet regulatory requirements[199]. Shareholder Commitments and Governance - The company plans to distribute a cash dividend of 0.52 yuan per 10 shares (including tax) based on a total of 107,783,667 shares[12]. - The company has committed to repurchase all newly issued shares from its initial public offering, ensuring compensation for investors in case of losses due to misleading statements in the prospectus[153]. - The company promises to distribute cash dividends of no less than 10% of the distributable profits each year, with an increase in cash dividends aligned with net profit growth if profits remain stable[153]. - The company has undertaken to maintain a stable growth in net profit, with cash dividend increases at least matching the growth rate of net profits[153]. - The company has established a governance structure with a shareholders' meeting, board of directors, and supervisory board, enhancing operational standards and protecting shareholder rights[193].