Sito Bio(SZ:300583)2024-04-28 07:41Financial Performance - The company's operating revenue for 2023 was CNY 1,279,783,092, a decrease of 2.46% compared to CNY 1,312,111,876 in 2022[18]. - The net profit attributable to shareholders for 2023 was CNY 45,603,990, representing an increase of 8.67% from CNY 41,979,286 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 24,529,004, a decrease of 32.70% compared to CNY 36,459,930 in 2022[18]. - The net cash flow from operating activities for 2023 was negative CNY 92,845,544, a decline of 163.88% from positive CNY 145,335,684 in 2022[18]. - Basic earnings per share for 2023 were CNY 0.25, an increase of 4.17% from CNY 0.24 in 2022[18]. - Total assets at the end of 2023 amounted to CNY 3,240,242,403, an increase of 8.16% from CNY 2,995,140,143 at the end of 2022[18]. - The net assets attributable to shareholders at the end of 2023 were CNY 2,012,156,809, reflecting a growth of 16.98% from CNY 1,720,156,000 at the end of 2022[18]. - The company achieved a revenue of CNY 1,279.78 million and a net profit of CNY 45.60 million for the fiscal year 2023[51]. Cash Flow and Investments - The company reported a net cash flow from operating activities of approximately CNY 10.70 million in Q1 2023, but it experienced a significant outflow of approximately CNY 128.07 million in Q2 2023[21]. - The net cash inflow from financing activities increased by 6,509.92% to ¥319,769,380.56, primarily due to the completion of a private placement[75]. - The company has invested over CNY 300 million in R&D since its establishment, resulting in 98 patents, including 28 invention patents[48]. - The total investment amount for the reporting period was ¥98,073,041.06, a decrease of 7.54% compared to ¥106,072,878.58 in the same period last year[85]. - The company has committed to using idle raised funds solely for operations related to its main business[102]. Market and Industry Trends - The pharmaceutical industry is undergoing significant reforms, with over 200 national policies and approximately 1,400 provincial policies impacting procurement and drug pricing[29]. - The pharmaceutical manufacturing segment contributed ¥1.23 billion, accounting for 95.74% of total revenue, with a year-on-year decline of 1.35%[60]. - In 2023, the pharmaceutical industry faced a temporary adjustment, with a significant decline in export delivery value by 16.3% year-on-year, impacting overall revenue and profit trends[31]. - The global steroid drug market reached $147.5 billion in 2021, with a compound annual growth rate of 8.71% over the past decade, indicating strong growth potential in the sector[32]. Product Development and R&D - The company has established a full industrial chain strategy, integrating intermediates, raw materials, and finished formulations, enhancing its competitive edge[43][45]. - The company has completed the registration of 9 raw materials in the domestic market and is in the process of applying for production licenses for several others, including five in the US DMF and two in the EU CEP[52][53]. - The company has developed a comprehensive product line in the intermediate sector, covering five major steroid raw material series, establishing a strong market presence[36]. - The company has made significant advancements in its production processes, adopting international GMP standards to ensure product quality[47]. Risk Management and Compliance - The company has outlined potential risk factors and corresponding countermeasures in its future development outlook[6]. - The company has faced uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit figures over the last three accounting years[23]. - The company has established strict confidentiality measures to protect core technologies and is committed to managing the entire R&D cycle to mitigate risks associated with new product development[134]. - The company has acknowledged investment project risks, conducting thorough market analysis and ensuring project feasibility to enhance the likelihood of successful outcomes[136]. Governance and Shareholder Engagement - The board of directors consists of 7 members, including 3 independent directors, ensuring effective governance and decision-making[143]. - The company held multiple shareholder meetings with participation rates of 32.29%, 31.15%, 56.10%, and 51.18% respectively, ensuring shareholder engagement[150]. - The company has established a robust investor relations management system, enhancing transparency and communication with stakeholders[146]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 4.682 million[165]. Environmental Compliance - The company has maintained compliance with multiple environmental laws and regulations, including the Environmental Protection Law and the Water Pollution Prevention Law[196]. - The company has established a wastewater treatment service agreement with a local firm to ensure compliance with discharge standards[197]. - The wastewater treatment system has been upgraded with advanced processes including multi-effect evaporation and Fenton oxidation, enhancing treatment capacity[200]. - The company has committed to ongoing environmental assessments and compliance checks for all new projects[196].