CHENGDA PHARMA(SZ:301201)2022-04-18 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥415.73 million, an increase of 11.44% compared to ¥373.04 million in 2020[18]. - The net profit attributable to shareholders for 2021 was approximately ¥100.44 million, a decrease of 17.11% from ¥121.17 million in 2020[18]. - The net cash flow from operating activities decreased by 35.54% to approximately ¥83.14 million in 2021 from ¥128.97 million in 2020[18]. - The total assets at the end of 2021 were approximately ¥683.23 million, reflecting a 27.90% increase from ¥534.21 million at the end of 2020[18]. - The company's basic earnings per share for 2021 was ¥1.3849, down 17.12% from ¥1.6709 in 2020[18]. - The company reported a net profit of approximately ¥95.37 million after deducting non-recurring gains and losses, which is a 12.76% increase from ¥84.58 million in 2020[18]. - The company achieved operating revenue of 415.73 million yuan, a year-on-year increase of 11.44%[38]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was 95.37 million yuan, up 12.76% year-on-year[38]. - The total revenue for the year 2021 was approximately 38.47 million, showing a significant growth compared to previous years[104]. Market and Industry Insights - The global pharmaceutical CDMO market size grew from $35 billion in 2016 to $56 billion in 2020, with a projected annual growth rate of 13.9% from 2021 to 2025[28]. - The company plans to expand its market presence in the CDMO sector, which is expected to reach a market size of $107 billion by 2025[28]. - The Chinese pharmaceutical CDMO market size increased from 11 billion RMB in 2016 to 32 billion RMB in 2020, with a CAGR of 31.8%[29]. - The global demand for L-carnitine is projected to grow at a CAGR of 4.79%, reaching USD 263 million by 2027[30]. - The demand for L-carnitine in health products is expected to reach USD 123 million by 2027, with a CAGR of 4.66%[30]. - The CDMO industry remains fragmented, with over 90% of companies earning less than $100 million annually, indicating potential growth opportunities for the company[77]. - The global CDMO market is gradually shifting from developed countries to emerging markets like China and India, driven by cost advantages and improving R&D capabilities[78]. Research and Development - The company has completed small-scale research for NP1501, an anticoagulant drug, and is focused on developing cost-effective and environmentally friendly processes[64]. - NP1906, aimed at treating moderate to severe pain related to endometriosis, has completed small-scale research and is currently in the process of pilot-scale development[64]. - The company is advancing NP2103, a raw material for treating uterine fibroids, with ongoing small-scale research and aims to maintain cost advantages while meeting ICH quality standards[64]. - The company is actively expanding its product pipeline with various drug intermediates, enhancing its market competitiveness across multiple therapeutic areas[65]. - The ongoing research and development efforts are expected to significantly contribute to the company's future growth and market positioning[64]. - In 2021, the company's R&D investment amounted to ¥17,223,853.64, representing 4.14% of operating revenue, a decrease from 5.09% in 2020[68]. - The number of R&D personnel decreased by 1.61% to 61, with a proportion of 13.23% of total employees[66]. Governance and Compliance - The company has established a complete and independent financial accounting system, ensuring financial independence and compliance with accounting standards[96]. - The company maintains a complete business system and operates independently in terms of assets, personnel, and financial management[94]. - The independent directors constitute more than one-third of the board, ensuring objective decision-making and protection of minority shareholders' interests[91]. - The company has developed specialized committees within the board, including an audit committee and a strategic committee, to enhance governance and oversight[92]. - The company has implemented a rigorous internal control system to support independent financial decision-making and compliance with tax obligations[96]. - The company has established a comprehensive governance structure, including a general meeting of shareholders, board of directors, and supervisory board, to ensure effective operation[94]. - The company has committed to maintaining high standards of governance and operational oversight, as evidenced by the diligent work of its board and committees[119]. Environmental and Social Responsibility - The company reported a total wastewater discharge of 255,845.7 tons in 2021, with a COD removal efficiency of 93.74%[141]. - The company achieved a VOCs removal efficiency of 98% from its RTO facility, with an operational cost of 205.36 million yuan[141]. - The company actively fulfills social responsibilities, ensuring the protection of shareholders and creditors' rights, and maintaining a stable financial condition without any related party fund occupation[145]. - The company emphasizes employee rights protection, providing timely salary payments and social insurance, while also focusing on safety management and employee training programs[146]. - The company participates in social welfare activities, contributing to educational support and charity initiatives in the community[149]. Future Outlook and Strategic Initiatives - The company plans to focus on building smart green factories to enhance overall competitiveness in the future[45]. - The company aims to enhance its CDMO production capacity for pharmaceutical intermediates and APIs, focusing on cancer drug intermediates to strengthen its competitive edge[79]. - In 2022, the company plans to complete the construction of new CDMO production facilities and enhance its R&D capabilities to accelerate project development and improve delivery times[80]. - The company intends to build a comprehensive CRO and CDMO platform to innovate and upgrade its product structure, leveraging partnerships within the industry[81]. - The company recognizes the need to expand its talent pool, particularly in R&D, to support its growing business and enhance its competitive position[82]. - The management team is optimistic about achieving the performance guidance set for the upcoming fiscal year[107]. Shareholder Engagement and Remuneration - The annual shareholders' meeting had a 100% investor participation rate, indicating strong shareholder engagement[98]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 6.2587 million[112]. - The highest individual remuneration was received by the chairperson, totaling CNY 1.1634 million[112]. - The remuneration for independent directors is determined based on resolutions passed at the shareholders' meeting[111]. - The company has a structured decision-making process for remuneration, involving the board of directors and shareholders[110]. Financial Audit and Reporting - The audit opinion for Chengda Pharmaceutical Co., Ltd. is a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position for the year ended December 31, 2021[199]. - The audit report was signed on April 18, 2022, by the auditing firm Zhonghua Certified Public Accountants[199]. - The financial statements include consolidated and company balance sheets, income statements, cash flow statements, and changes in equity for the year 2021[199]. - The audit was conducted in accordance with Chinese Certified Public Accountant auditing standards, ensuring the independence of the auditors from Chengda Pharmaceutical[200].