GUANGJI PHARMA.(SZ:000952)2024-04-25 11:21Financial Performance - The company's operating income for 2023 was ¥737,819,479.15, a decrease of 7.50% compared to ¥797,642,746.07 in 2022[22]. - The net profit attributable to shareholders was -¥140,248,068.54, representing a decline of 378.64% from ¥50,366,243.23 in the previous year[22]. - The net cash flow from operating activities was -¥148,963,590.35, a decrease of 430.45% compared to ¥45,079,614.27 in 2022[22]. - Basic earnings per share were -¥0.3962, down 376.48% from ¥0.1434 in 2022[22]. - Total assets at the end of 2023 reached ¥3,029,517,090.67, an increase of 22.65% from ¥2,469,053,947.84 in 2022[22]. - The net assets attributable to shareholders decreased by 9.26% to ¥1,363,446,043.29 from ¥1,502,636,584.77 in 2022[22]. - The weighted average return on net assets was -9.79%, a decline of 13.19% from 3.40% in the previous year[22]. - Non-recurring gains for 2023 totaled approximately ¥6.04 million, a significant decrease from ¥20.91 million in 2022[29]. - The company reported a significant increase in financial expenses, surging by 187.73% to CNY 4,377.15 million, attributed to increased borrowing costs[48]. - The company reported a net profit loss of CNY 6,704.20 million for Guangji Pharmaceutical (Mengzhou) Co., with a year-on-year increase in losses due to low market prices for vitamin products[97]. Business Operations - The company has not reported any changes in its main business since its listing[21]. - The company has acquired Shandong Baisheng assets, expanding its product line to include sodium VC, lactic acid and lactic acid salts, glucose acid series products, and starch series products[35]. - The company is a major global supplier of Vitamin B2 products, focusing on production for pharmaceutical raw materials, food additives, and dietary supplements[35]. - The company is currently optimizing its production processes for new products, with some already in trial production[35]. - The company has launched 10 health products, including Coenzyme Q10 and functional beverages, expanding both online and offline sales channels[52]. - The company is focusing on expanding its product lines, including the development of new products like vitamin B6 injection and steviol glycosides[45]. - The company has initiated the acquisition of Shandong Baisheng Bio, with an investment of ¥470 million already paid[52]. - The company is collaborating with universities like Huazhong University of Science and Technology to develop new products such as human milk oligosaccharides and steviol glycosides[38]. Market Environment - The pharmaceutical manufacturing industry in China experienced a 3.7% decline in revenue and a 15.1% drop in total profits in 2023, indicating a challenging market environment[34]. - The company faced a decline in sales revenue and net profit due to weak market demand and increased competition, particularly in high-content vitamin B2 products[41]. - Domestic sales accounted for 75.32% of total revenue at ¥555.69 million, while international sales decreased by 15.99% to ¥182.13 million[55]. Research and Development - Research and development expenses increased by 8.37% to CNY 7,475.16 million, reflecting the company's investment in fermentation and synthesis projects[48]. - The company completed 48 patent applications in 2023, including 27 invention patents, and received 28 patent grants[45]. - The company is pursuing several R&D projects aimed at developing high-end pharmaceutical products and expanding into health food markets, which are expected to drive future growth[69]. - The number of R&D personnel increased by 24.14% to 252, with a notable rise in the number of master's degree holders by 153.85%[71]. Governance and Compliance - The company emphasizes the protection of stakeholders' rights and maintains communication with shareholders, employees, and society[113]. - The company has established a robust internal control system to enhance governance and operational standards[111]. - The company has a clear asset ownership structure, with no instances of asset or funds being misappropriated by the controlling shareholder[117]. - The company has not reported any significant discrepancies between its governance practices and the regulations set by the China Securities Regulatory Commission[115]. - The company has implemented a strict insider information management system, ensuring no insider trading occurred during the reporting period[114]. Environmental Responsibility - The company has obtained pollution discharge permits valid until December 2025, ensuring compliance with environmental regulations[165]. - The company reported a total discharge of 19.8 tons of COD per year, which is within the industry standards[167]. - The company has successfully reduced the total amount of pollutants discharged, reflecting improved operational efficiency[171]. - The company has established emergency response plans for environmental incidents, with documentation filed with local environmental authorities[175][176]. Employee and Management - The total number of employees at the end of the reporting period was 1,862, with 93 in the parent company and 1,769 in major subsidiaries[139]. - The company has a structured remuneration scheme for directors and senior management based on specific compensation plans[130]. - The company has implemented a performance-based salary system for all employees, linking core indicators to performance compensation[156]. - The company has established a comprehensive training system to enhance employee skills and knowledge[142]. Future Outlook - The company plans to focus on technology innovation and new business layouts in 2024, aiming for high-quality development through internal expansion and platform development[100]. - Hubei Guangji Pharmaceutical aims to achieve a net profit margin of 20% by the end of 2024, driven by operational efficiencies and cost management strategies[125]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach, with a budget of 500 million RMB set aside for this purpose[125].