HNPOLY(SZ:300630)2019-04-01 16:00Financial Performance - The company's operating revenue for 2018 was CNY 623,904,151.91, representing a 92.07% increase compared to CNY 324,826,689.90 in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 181,427,309.51, an increase of 84.37% from CNY 98,404,449.97 in 2017[22]. - The net profit after deducting non-recurring gains and losses was CNY 171,201,864.34, up 97.19% from CNY 86,822,845.13 in 2017[22]. - The basic earnings per share for 2018 was CNY 0.99, a 73.68% increase from CNY 0.57 in 2017[22]. - The total assets at the end of 2018 were CNY 1,108,964,590.51, reflecting a 26.81% increase from CNY 874,530,945.96 at the end of 2017[22]. - The net assets attributable to shareholders at the end of 2018 were CNY 883,261,450.90, a 22.44% increase from CNY 721,372,960.59 at the end of 2017[22]. - The total profit rose by 81.79% compared to the same period last year[45]. - The company achieved total operating revenue of 623.90 million yuan, a year-on-year increase of 92.07%[45]. - The company reported a gross margin of 83.75% for the pharmaceutical manufacturing sector, slightly down by 0.78% from the previous year[79]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.10 per 10 shares, with a capital reserve conversion of 5 shares for every 10 shares held[7]. - The proposed cash dividend distribution is 2.1 yuan per 10 shares, totaling 38,467,050.30 yuan[131]. - The cash dividend accounted for 21.20% of the net profit attributable to ordinary shareholders, which was 181,427,309.51 CNY[136]. - The total distributable profit for the year was 358,259,701.11 CNY, with cash dividends making up 100% of the profit distribution[133]. - The cash dividend for 2018 was based on a total share capital of 183,176,430 shares[134]. - The company has a policy that cash dividends should constitute at least 20% of the profit distribution when significant capital expenditures are planned[133]. Research and Development - The company has obtained 51 patent technologies, including 48 invention patents, and holds 90 production approval documents for various products[34]. - The company has over 30 ongoing injection product R&D projects, establishing itself as a leading international player in the injection field[48]. - The R&D center employs an expert committee system to guide major technology projects, ensuring a robust pipeline of potential growth opportunities for the company[52]. - The company plans to increase investment in R&D, focusing on high-difficulty generics and differentiated products to ensure a steady pipeline of high-value offerings[68]. - Research and development expenses reached CNY 138,119,041.57, a 118.18% increase compared to CNY 63,304,196.17 in the previous year, indicating a strong commitment to R&D[91]. Market and Product Strategy - The company’s main products include prescription drugs in the fields of anti-allergy, non-steroidal anti-inflammatory, antibiotics, and digestive drugs[34]. - The company has expanded its product offerings to include various dosage forms, enhancing its competitive advantage in the market[50]. - The product portfolio includes various categories such as anti-allergic, non-steroidal anti-inflammatory, and antibiotics, indicating a diverse market presence[41]. - The company has established a comprehensive quality control system throughout the drug development and production process, ensuring compliance with stringent quality requirements[52]. - The company has signed exclusive sales contracts with distributors in Europe and the US, facilitating international market expansion[52]. Operational Efficiency - The procurement model follows a "production-based purchasing" approach, ensuring raw materials are acquired based on production plans and inventory levels[42]. - The production model is "sales-driven," with production plans based on historical sales data and market demand forecasts[42]. - The company has a complete procurement, production, and sales system, operating independently based on market rules and its own conditions[42]. - The company emphasizes quality control, with every batch of products undergoing strict quality inspection before release[42]. - The company has a solid foundation for long-term development through its extensive R&D project reserves, which are expected to drive future growth[52]. Risks and Challenges - The company has outlined potential risks in its future development outlook, including industry policy changes and drug research and development uncertainties[7]. - The company anticipates potential risks from policy changes and increased competition in the pharmaceutical market[124]. - The company emphasizes the importance of drug quality and compliance with strict production standards to mitigate risks[127]. International Expansion - The company expanded its international market presence, obtaining multiple overseas approvals, including the FDA approval for Levetiracetam injection in the US and several others in Europe and Australia[63]. - The company aims to enhance its international drug registration and manufacturing capabilities, focusing on overseas market expansion[124]. - The company has established subsidiaries in Hangzhou and Hainan for drug research and development, which are expected to enhance long-term profit growth[67]. Corporate Governance - The company is committed to improving corporate governance and ensuring accurate and timely information disclosure to protect investor rights[68]. - The company has committed to fulfilling its promises regarding share transfers and lock-up periods as per regulations[137]. - The company has not engaged in share buybacks during the reporting period[133].