XINHUA PHARM(SZ:000756)2024-03-28 16:00Financial Performance - The company reported a fully diluted earnings per share of RMB 0.7276 for the fiscal year 2023[14]. - The company's operating revenue for 2023 reached RMB 8,100,844,707.33, an increase of 7.97% compared to RMB 7,502,987,102.09 in 2022[33]. - The net profit attributable to shareholders of the listed company was RMB 496,512,201.25, reflecting a growth of 20.79% from RMB 411,063,056.58 in the previous year[33]. - The net cash flow from operating activities decreased significantly by 65.01% to RMB 265,278,895.87, down from RMB 758,240,601.50 in 2022[33]. - The total assets as of the end of 2023 were RMB 8,286,166,330.90, a slight increase of 0.26% from RMB 8,264,790,395.98 at the end of 2022[33]. - The total liabilities decreased by 10.34% to RMB 3,510,413,044.14, compared to RMB 3,915,226,169.32 in the previous year[33]. - The basic earnings per share increased by 19.35% to RMB 0.74, up from RMB 0.62 in 2022[33]. - The weighted average return on net assets rose to 11.41%, an increase of 0.80 percentage points from 10.61% in the previous year[33]. - The total comprehensive income for the year amounted to RMB 411,063,056.58, reflecting a significant increase compared to the previous year[152]. - The company reported a net loss of RMB 132,207,856.16 for the year, impacting overall financial performance[152]. Shareholder Information - The board proposed a final dividend of RMB 0.25 per share for the year ending 2023, based on a total share capital of 682,407,635 shares[9]. - As of December 31, 2023, the total number of shareholders was 97,594, including 39 H-share shareholders and 97,555 A-share shareholders[17]. - The largest shareholder, Hualu Holdings, held 204,864,092 shares, representing a significant portion of the company's equity[19]. - The largest shareholder, China Hualu Holdings Group Co., Ltd., holds 30.36% of the shares, totaling 204,864,092 shares[38]. - Hong Kong Central Clearing (Agent) Co., Ltd. holds 28.65% of the shares, totaling 193,314,147 shares, with an increase of 11,220 shares during the reporting period[38]. - Hualu Investment Development Co., Ltd., a wholly-owned subsidiary of China Hualu Holdings, holds 5.50% of the shares, totaling 37,091,988 shares[38]. - The top ten shareholders do not have any pledged or frozen shares, nor do they participate in securities lending[39]. - The report indicates that there are no known relationships among the other shareholders or any concerted actions as per the regulations[40]. - The company has a total of 10 major shareholders, with the top four holding over 64% of the total shares[38]. - The report does not disclose any significant changes in the shareholding structure of the board members and senior management as of December 31, 2023[52]. Corporate Governance - The company’s ultimate controller remains the State-owned Assets Supervision and Administration Commission of Shandong Province[22]. - The company’s governance structure is in compliance with relevant regulations for listed companies in China[91]. - The company’s board of directors held a total of 7 meetings in the year, with independent directors actively participating[77]. - The company held 5 meetings of the Board of Directors' Audit Committee in 2023, with independent directors attending all meetings without any absences[92]. - The Audit Committee confirmed that the financial statements for the year 2023 were prepared in accordance with the accounting policies and standards, and no significant misstatements were found[94]. - The company’s board of directors and supervisors will serve until December 22, 2026[67]. - The company has undergone changes in its board members, with new elections held on December 22, 2023[70]. - The independent director, Lu Huawai, resigned on December 22, 2023, after attending 6 out of 7 board meetings in the year[77]. Employee Information - As of December 31, 2023, the group employed a total of 7,104 employees, with a total salary expenditure of RMB 743.778 million[71]. - The employee distribution by function includes 3,922 production personnel, 895 sales personnel, and 656 engineering technical personnel[72]. - The educational background of employees shows that 1,870 hold a university degree or above, while 2,323 have a college diploma[73]. - The total annual remuneration for directors, supervisors, and senior management in 2023 amounted to RMB 12.5571 million[70]. - The total remuneration for directors in 2023 amounted to 1,215,250, an increase from 720,250 in 2022, representing a growth of approximately 68.8%[79]. - The chairman, He Tongqing, received a remuneration of 183,150 in 2023, up from 110,550 in 2022, reflecting a 65.5% increase[79]. - The financial officer, Hou Ning, received a remuneration of 220,000 in 2023, compared to 147,400 in 2022, marking a 49.2% increase[79]. - The company has conducted 71 training projects in 2023, training a total of 3,365 participants, enhancing employee skills and management effectiveness[89]. - The company has a structured education and training system aimed at improving employee capabilities and ensuring effective management operations[89]. Operational Focus and Market Presence - The company has been actively expanding its market presence and product offerings in the pharmaceutical sector[8]. - The company’s major operational focus includes investments in the chemical, pharmaceutical, and environmental protection industries[54]. - The company has established long-term strategic partnerships with over 200 multinational corporations, including Bayer and GlaxoSmithKline, enhancing its international market presence[136]. - The company is recognized as one of the top five pharmaceutical exporters in China and is actively pursuing internationalization strategies[136]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[152]. Environmental and Social Responsibility - The company invested RMB 225.43 million in environmental protection in 2023 and paid RMB 143,000 in environmental protection tax[100]. - The company established an environmental management system in 1999 and has passed multiple certifications, including the latest in 2023[100]. - The company provided financial assistance totaling RMB 521,215.80 to 334 employees in need during 2023[103]. - The company has been recognized as an excellent talent training base in the Shandong pharmaceutical industry and a demonstration base for corporate training in China[102]. Research and Development - The company has established a comprehensive new drug research and development system, with over 100 products currently under research[137]. - The company has developed seven major series of raw materials, including Ibuprofen and Aspirin, and has made significant technological advancements in new products[136]. - The company has established six research and development platforms, focusing on innovative drug delivery systems and precision medicine[137]. - The company holds a 50.1% equity stake in Zibo Xinhua-Baili Pharmaceutical Co., Ltd., which reported total assets of RMB 315,846 thousand and net profit of RMB 12,080 thousand for the year, with a revenue decline of 17.61% year-over-year[121]. - The company also owns 60% of Shandong Tongxin Pharmaceutical Co., Ltd., which achieved revenue of RMB 4,526 thousand and net profit of RMB 322 thousand in 2023[134]. - The company has 21 active pharmaceutical ingredients registered with the US FDA and 12 products certified by the EU CEP[137]. Financial Management and Reporting - The company has made adjustments to previous financial statements, but these adjustments did not have a significant impact on operations[33]. - The company has maintained effective internal controls in all significant aspects throughout the year[106]. - The company has not engaged in any investment management activities during the reporting period[108]. - The company's cash and cash equivalents decreased from RMB 864.20 million at the beginning of the year to RMB 619.96 million at the end of the year[145]. - The company's total assets amounted to RMB 6.90 billion, a slight decrease from RMB 6.99 billion at the beginning of the year[145]. - The company's inventory increased from RMB 755.13 million to RMB 809.70 million during the reporting period[145]. - The group’s asset-liability ratio stood at 42.36%, calculated as total liabilities divided by total assets multiplied by 100%[118]. - The total capital debt ratio was 29.81%, and the net capital debt ratio was 9.64% as of December 31, 2023[119]. - The expected credit loss rates for accounts receivable are set at 0.50-1.00% for within 1 year, 20.00-50.00% for 1-2 years, 60.00-100.00% for 2-3 years, and 100.00% for over 3 years[177]. - The company applies a three-stage model for expected credit loss measurement, assessing credit risk at each balance sheet date[178]. - The company recognizes financial guarantees at the lower of the carrying amount of the financial asset and the guarantee amount received[180]. - The company’s financial statements are prepared following the principle of materiality, with significant judgments made regarding the importance of disclosed matters[189]. - The company’s operating cycle is defined as 12 months, which is used as a standard for classifying assets and liabilities[188]. - The company measures financial assets at fair value upon initial recognition, with certain receivables measured at transaction price[197]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[190]. - The company assesses whether there has been a significant increase in credit risk since initial recognition to determine the appropriate stage for expected credit loss[178]. - The company’s inventory is valued at the lower of cost and net realizable value, with provisions made for inventory write-downs when necessary[183].