Gofar Stock(SH:600538)2024-04-22 12:26Financial Performance - In 2023, the net profit attributable to shareholders was -82.31 million RMB, with a cumulative distributable profit of -472.74 million RMB by the end of the year[6]. - The company's operating revenue for 2023 was CNY 369,154,644.31, a decrease of 19.69% compared to CNY 459,684,048.23 in 2022[22]. - The net profit attributable to shareholders for 2023 was a loss of CNY 82,308,269.56, representing a decline of 336.23% from a profit of CNY 34,841,980.19 in 2022[22]. - The basic earnings per share for 2023 was -CNY 0.16, a decrease of 328.57% compared to CNY 0.07 in 2022[24]. - The total assets at the end of 2023 were CNY 1,055,520,704.00, down 7.59% from CNY 1,142,164,161.08 at the end of 2022[23]. - The net cash flow from operating activities for 2023 was -CNY 17,966,446.43, compared to -CNY 15,741,511.89 in 2022[23]. - The company reported a significant decrease in revenue due to reduced customer demand and budget cuts affecting its wholly-owned subsidiary, resulting in a substantial decline in net profit[24]. - The weighted average return on equity for 2023 was -9.04%, a decrease of 12.77 percentage points from 3.73% in 2022[24]. - The company recorded a government subsidy of CNY 1,129,054.64 in 2023, which is related to its normal business operations[28]. - The company has recognized goodwill impairment due to the current operating conditions and future forecasts of its subsidiary, impacting overall financial performance[24]. Shareholder and Ownership Structure - As of December 31, 2023, the actual controllers held 110,002,613 shares, accounting for 20.99% of the total share capital, with 98.05% of these shares subject to judicial freeze[5]. - 21 million shares held by the actual controller have been subject to judicial auction, with 15 million shares already transferred, reducing their ownership to 18.12%[5]. - The total amount of shares frozen due to judicial actions for major shareholders is 92,852,613, which is 86.51% of their total holdings[199]. - The major shareholder Zhu Rongjuan has been subject to multiple court-ordered consumption restrictions, with total execution amounts reaching 22,000,000 yuan and 21,926,153 yuan in separate cases[200]. - The company reported a significant increase in user data, with a total of 107,325,613 shares held by major shareholders, representing 20.47% of the total share capital[199]. Risk Management and Compliance - The company has not identified any significant risks that could materially impact its operations during the reporting period[8]. - The audit report issued by Tianjian Accounting Firm included an emphasis paragraph regarding the uncertainty of the company's ability to continue as a going concern[5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - There were no violations of decision-making procedures in providing guarantees to external parties[8]. - The company has not faced any substantial operational risks during the reporting period, as detailed in the management discussion and analysis section[8]. - The company has a commitment to avoid any illegal occupation of funds or assets from the company[188]. - The company will ensure that any related party transactions are conducted at fair market prices and comply with legal procedures[188]. - The company maintains a strong commitment to compliance, as indicated by the absence of any penalties or violations reported for the management and controlling shareholders[196]. Operational Performance - The company’s pharmaceutical manufacturing segment reported revenue of 37.3 million RMB, a decrease of 32.36%, transitioning from profit to loss due to a 69% drop in alcohol sales and increased R&D expenses[34]. - The company’s subsidiary, Qinjian Pharmaceutical, achieved revenue of 132 million RMB, a growth of 10.86%, successfully turning a profit[35]. - The company’s subsidiary, Beihai Pharmaceutical, reported revenue of 77.35 million RMB, a decrease of 2.67%, but maintained profitability with a net profit increase of 7%[35]. - The judicial IVD (in vitro diagnostics) business generated revenue of 117 million RMB, down 40.66% year-on-year, with a net profit of 7.23 million RMB, a decline of 81.14%[34]. - The revenue from the judicial IVD business was CNY 116,886,025.66, down 35.74% year-on-year, primarily due to reduced customer demand and budget cuts[75]. - The revenue from the pharmaceutical manufacturing segment saw a significant decline, attributed to decreased demand for ethanol disinfectant post-pandemic[75]. - The revenue from the distribution sales model decreased by 42.01% year-on-year, indicating a substantial drop in business performance[75]. Research and Development - The company increased R&D investment to 12.76 million RMB, a 52% increase compared to the previous year, focusing on new product development and optimization of existing products[36]. - The company's R&D expenses increased by 52.27% year-on-year, amounting to CNY 12.76 million, due to efforts to enhance core competitiveness[68]. - The company invested CNY 3,584,905.67 in the R&D of the ancient classic prescription Jichuan decoction, which accounted for 0.97% of operating revenue, indicating a focus on expanding its product offerings[100]. - The company is conducting research on the reformulation of existing products and the development of new products, including the restoration of production for several traditional remedies[97]. - The company is actively pursuing new product development, including traditional Chinese medicine formulations, to meet market demand and diversify its product offerings[123]. Governance and Management - The company has committed to ensuring timely, accurate, and complete information disclosure to protect the interests of all shareholders, especially minority shareholders[136]. - The board of directors and supervisory board have been actively involved in overseeing the company's operations and financial compliance[136]. - The company has a structured approach to managing insider information, ensuring compliance with relevant regulations[137]. - The company has a diverse leadership team with members holding positions in various other organizations, indicating a broad network[148]. - The total remuneration for all directors, supervisors, and senior management was 4.6765 million yuan for the reporting period[150]. - The company has established 29 management systems, including financial reporting and internal control management[153]. - The company completed the election of the 11th Board of Directors and Supervisory Board on May 22, 2023, following the expiration of the 10th term[145]. Environmental and Social Responsibility - In 2023, the company invested 250,700 RMB in environmental protection[174]. - The company made a total social responsibility investment of 275,900 RMB, benefiting 24,200 people through donations and public welfare projects[179]. - In 2023, Guofa Pharmaceutical donated 24,200 boxes of eye drops to support local schools in promoting eye care among students[179]. - The total wastewater discharge from Guofa Pharmaceutical Factory was 12,420 tons, with biochemical oxygen demand (BOD) at 75.762 kg, chemical oxygen demand (COD) at 197.478 kg, ammonia nitrogen at 1.354 kg, suspended solids at 161.46 kg, and total phosphorus at 2.236 kg[175]. - The factory's total waste gas emissions in 2023 amounted to 604,800 m³, with nitrogen oxides at 27.216 kg, sulfur dioxide at 0 kg, and particulate matter at 5.383 kg[176]. - The total general solid waste generated in 2023 was 78.295 tons, including 40.33 tons of medicinal residue, 9.81 tons of cardboard, 23.28 tons of sludge, and 4.875 tons of household waste[177].