SYNERGY(SZ:300636)2019-04-17 16:00Financial Performance - In 2018, the company's operating revenue was ¥267,124,046.23, a decrease of 9.97% compared to ¥296,716,027.70 in 2017[18]. - The net profit attributable to shareholders was ¥24,530,816.75, down 62.52% from ¥65,457,726.67 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥12,456,414.22, a decline of 78.35% from ¥57,525,003.73 in 2017[18]. - The company's cash flow from operating activities increased by 120.04% to ¥74,932,539.99 from ¥34,053,904.54 in 2017[18]. - The total assets at the end of 2018 were ¥803,618,322.55, an increase of 11.26% from ¥722,277,650.78 at the end of 2017[18]. - The net assets attributable to shareholders increased by 3.31% to ¥658,159,954.90 from ¥637,101,061.23 in 2017[18]. - The company reported a basic earnings per share of ¥0.3049, down 64.91% from ¥0.8688 in 2017[18]. - The company’s weighted average return on equity was 3.79%, a decrease of 8.41% from 12.20% in the previous year[18]. - Total revenue for 2018 was ¥267,124,046.23, a decrease of 9.97% compared to ¥296,716,027.70 in 2017[48]. - Revenue from pharmaceutical manufacturing was ¥264,173,310.45, accounting for 98.90% of total revenue, down 10.90% year-on-year[48]. - The gross profit margin for pharmaceutical manufacturing was 29.50%, down 7.08% from the previous year[50]. Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.41 RMB per 10 shares (including tax) based on a base of 81,395,000 shares[6]. - The profit distribution plan for 2018 proposes a cash dividend of ¥0.41 per 10 shares, totaling ¥3,337,195.00, based on a total share capital of 81,395,000 shares[96][98]. - The cash dividend for 2018 represents 13.60% of the net profit attributable to the parent company[100]. - The company did not conduct any capital reserve transfers in 2018, maintaining a capital reserve balance of ¥395,361,436.18 at year-end[98]. - The total distributable profit as of December 31, 2018, was ¥184,370,870.63, with retained earnings carried forward to the next fiscal year[98]. - The company did not propose any stock bonus shares for the 2018 fiscal year[96][99]. - The cash dividend policy aligns with the company's articles of association and has been executed in compliance with relevant regulations[97]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with no dividends declared in 2016[99][100]. Market and Competition - The company faces risks related to national policies and industry competition due to ongoing healthcare reforms and new pharmaceutical regulations[4]. - The company has a high proportion of export revenue, making it vulnerable to exchange rate fluctuations, particularly with the appreciation of the RMB against the USD[6]. - The company is actively expanding its international market presence, which significantly contributes to its revenue[6]. - The company aims to expand into regulated markets in the EU, North America, and Japan, with approximately 90% of its main business revenue coming from exports[34]. - The raw material drug industry is experiencing a shift towards developing countries, particularly China and India, due to cost control efforts by major generic drug manufacturers[28]. - The company is focusing on long-term strategic partnerships with major clients to enhance its competitive advantage and maintain high gross margins[38]. Research and Development - The company is focused on developing new products and technologies to enhance its competitive edge in the pharmaceutical industry[4]. - The company has a research and development team of 199 members, focusing on patent tracking, advanced technology research, and new process development[34]. - Research and development investment reached 25.36 million yuan, accounting for 9.49% of the annual revenue, an increase of 102.54% compared to the previous year[41]. - The company has four new products in development and has optimized the processes for nine existing products during the reporting period[42]. - The company completed the submission of three new products for US DMF and two products for Japan MF registration[42]. - The company is focusing on developing new drugs, including a new anti-gout medication and an improved formulation for an existing cardiovascular drug[58]. - The company has ongoing projects aimed at optimizing the production processes of key pharmaceutical intermediates, which are expected to enhance product quality and reduce costs[58]. Environmental and Safety Standards - The company is committed to environmental standards, ensuring that all waste produced during manufacturing meets national regulations[5]. - The company emphasizes safety production and environmental protection, implementing strict management systems to prevent accidents and ensure compliance with environmental standards[91]. - The company has a robust quality management system in place, adhering to GMP standards to control product quality throughout the production process[92]. - The company has a dedicated environmental protection department to oversee compliance with environmental regulations and standards[146]. - The company has not experienced any environmental pollution incidents or disputes during the reporting period[149]. - The company has received approval for an environmental impact report for a project with an annual production capacity of 800 tons of Gabapentin and other pharmaceutical intermediates[150]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[3]. - The company has established a dedicated team for registration and certification to ensure compliance with necessary licenses and permits, mitigating operational risks[88]. - The company has a stock incentive plan that involves granting 1,298,000 restricted stocks to 82 individuals, with a grant price of ¥17.78 per share[121]. - The performance targets for the stock incentive plan require a net profit growth rate of no less than 20% for 2017, 45% for 2018, and 75% for 2019, based on the net profit of 2016[123]. - The company has a total of three supervisors, with two being shareholder representatives and one being a staff representative[190]. - The company has appointed independent directors since February 2015, including professionals from various fields such as law and finance[189][190]. - The company has a financial director with extensive experience in accounting and management, appointed since May 2012[190]. Employee and Management - The company has a total of 739 employees, with 431 in production, 199 in technical roles, and 85 in administration[199]. - The company aims to enhance employee performance through a competitive compensation policy, including salary, benefits, and performance-based bonuses[200]. - The total remuneration for the company's directors, supervisors, and senior management during the reporting period amounted to 4.6347 million yuan before tax[195]. - The company's salary system is based on a "performance-linked plus floating" wage system, considering factors such as job evaluation points, education, skills, experience, and tenure[195]. - The company provides various benefits, including housing, birthday gifts, and free health check-ups, to enhance employee satisfaction[200].