HISOAR(SZ:002099)2024-04-28 07:44Financial Measurement and Reporting - The company measures financial assets and liabilities at fair value, with changes recognized in profit or loss for financial liabilities designated at fair value[1]. - Financial liabilities are subsequently measured at fair value, with gains or losses from changes in credit risk recognized in other comprehensive income[1]. - The company uses expected credit losses to assess impairment for financial assets measured at amortized cost and certain other financial instruments[6]. - The expected credit loss rates for accounts receivable are based on historical loss experience and future economic forecasts, with rates of 5% for up to 1 year, 30% for 1-2 years, 80% for 2-3 years, and 100% for over 3 years[11]. - The company applies a single financial instrument or portfolio basis to assess expected credit risk and measure expected credit losses[9]. - The company recognizes cumulative changes in expected credit losses for credit-impaired financial assets only from the date of initial recognition[7]. - The company will remeasure the remaining equity at fair value on the date of losing control over the subsidiary, with the investment income recognized in the current period[22]. - The company recognizes contract assets or liabilities based on the relationship between fulfilling obligations and customer payments, netting them in the balance sheet[46]. - Employee compensation liabilities are recognized based on the best estimate of expenditures required to fulfill current obligations[51]. - The company will account for share-based payments, both equity-settled and cash-settled, in accordance with relevant accounting standards[52]. Inventory and Asset Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when costs exceed net realizable values[15]. - The company's raw materials have a book balance of ¥184,930,123, with a provision for inventory impairment of ¥24,970,003.6, resulting in a net book value of ¥159,960,120[60]. - The total inventory balance is ¥823,197,836, with an impairment provision of ¥120,927,066, leading to a net book value of ¥702,270,769[60]. - The company’s inventory includes work-in-progress valued at ¥38, with a provision for impairment of ¥6, indicating ongoing production activities[60]. - The company has established a sound inventory management system to mitigate risks associated with inventory shortages and excesses, ensuring stable and healthy development[199]. Revenue Recognition and Financial Performance - The company recognizes revenue based on the progress of performance obligations, with revenue confirmed upon the transfer of control of goods to customers[56]. - The company’s sales of raw pharmaceutical materials and intermediates are recognized at the point of delivery to the buyer for domestic sales and upon customs clearance for exports[59]. - The company reported a total revenue for the year was approximately ¥2.17 billion, a decrease from ¥2.70 billion in the previous year, representing a decline of about 19.7%[81]. - The net profit attributable to shareholders for the first quarter was approximately ¥42.10 million, while the second quarter showed a loss of ¥22.93 million, indicating significant volatility in earnings[81]. - The company reported a net profit loss of approximately ¥381.47 million in the fourth quarter, highlighting ongoing financial challenges[81]. - The revenue for the first quarter was approximately ¥634.05 million, while the fourth quarter revenue was approximately ¥495.26 million, showing a downward trend throughout the year[81]. - The company’s direct sales model generated revenue of CNY 2,171,886,860, down 19.68% year-over-year, with a gross margin of 14.03%[141]. Investment and Capital Expenditure - The company determines the initial investment cost for business combinations based on the fair value of the consideration paid on the acquisition date[17]. - Borrowing costs can be capitalized when certain conditions are met, including the occurrence of asset expenditures and borrowing costs[26]. - If the construction or production of capitalizable assets is interrupted for more than three months, capitalization of borrowing costs will be suspended[33]. - The total investment amount for the reporting period was ¥345,483,319.56, a decrease of 65.22% compared to ¥993,398,708.20 in the same period last year[176]. - The company has committed a total investment of CNY 40,000 million for the Active Pharmaceutical Ingredients (API) and intermediates CMO center expansion project, with an adjusted total investment of CNY 28,440.36 million, achieving an investment progress of 102.85%[191]. - The pharmaceutical comprehensive R&D center project has an adjusted total investment of CNY 6,875.87 million, with a 100% investment progress achieved[191]. - The company has invested CNY 1,237.1 million in the headquarters research institute project, achieving an investment progress of 11.73%[191]. - The environmental protection facility renovation project has an adjusted total investment of CNY 14,000 million, with an investment progress of 105.75%[191]. Market and Strategic Developments - The company has established a strategic partnership with Boehringer Ingelheim, resulting in a doubling of orders compared to the previous year[120]. - The global pharmaceutical market is projected to grow at an annual rate of 3%-6%, reaching $1.9 trillion by 2027, providing growth opportunities for the company[123]. - The company is focusing on high-performance environmentally friendly dyes, with a product line that includes reactive blue dyes known for their superior performance[122]. - The domestic dye industry is facing challenges with reduced demand and increased competition, necessitating a focus on high-quality development strategies[124]. - The company is actively pursuing the development of functional dyes and specialty pigments to address high-quality development constraints in the industry[125]. - The company aims to enhance its capabilities in contract manufacturing and development services (CMO/CDMO) to capture opportunities in clinical phases II and III[120]. - The company is committed to integrating green and intelligent development in its dye and pigment production processes to align with national industrial policies[124]. - The company is actively expanding its international market presence, with significant sales in the US, Europe, Japan, and India[129]. Research and Development - Direct costs related to research and development activities include materials, fuel, and maintenance of equipment used in R&D[37]. - R&D investment amounted to 115.56 million yuan, representing 5.32% of total revenue, with 342 R&D personnel[135]. - The company has submitted 6 new patent applications and received 4 patent grants during the reporting period[135]. Financial Position and Liabilities - Cash and cash equivalents at the end of the period were CNY 1,420,570,794.77, representing 18.89% of total assets[172]. - Accounts receivable at the end of the period amounted to CNY 424,703,017.66, accounting for 5.65% of total assets[172]. - Inventory at the end of the period was CNY 702,270,769.40, representing 9.34% of total assets, with a decrease attributed to inventory impairment[172]. - The total amount of short-term borrowings was CNY 8,610,000, accounting for 13.68% of total liabilities[172]. - The total amount of long-term borrowings decreased significantly due to repayments during the period[172]. - The company's financial assets totaled ¥537,441,287.63, with a decrease of ¥72,940,597.78 during the reporting period[174]. - The company's financial liabilities amounted to ¥23,480,126.06, with an increase of ¥32,024,589.60 during the reporting period[174]. - The total amount of pledged bank acceptance bills at the end of the period was CNY 400,383,446.04[159]. - The total amount of other receivables written off during the period was CNY 22,728,178.50, accounting for 51.00% of the total other receivables[162]. - The total bad debt provision amounted to CNY 20,437,512.26, representing 100% of the expected credit loss model for the first stage[157]. Compliance and Governance - The company has no discrepancies in net profit and net assets between international accounting standards and Chinese accounting standards during the reporting period[111]. - The company’s major accounting firm is Tianjian Accounting Firm, which is responsible for auditing its financial statements[79]. - The independent directors support the company's foreign exchange hedging activities, emphasizing that they are closely related to the company's operational needs and do not involve speculative risks[66]. - The company disclosed an ESG report for the first time, highlighting achievements in environmental protection, employee rights, and social responsibility[138].