HISUN(SH:600267)2024-04-29 11:39Investment and Expansion - The total investment in the expansion of the injection production project reached CNY 46,354.12 million, with CNY 1,720.56 million invested in the current reporting period[1]. - The investment in the construction of the Metrolux production line amounted to CNY 16,329.20 million, with CNY 993.73 million invested in the current reporting period[1]. - The technical transformation project for oral solid preparations in the Ousha plant has a total investment of CNY 27,973.73 million, with CNY 4,161.09 million invested in the current reporting period[1]. - The total investment across all projects is CNY 90,657.05 million, with CNY 6,875.38 million invested in the current reporting period[1]. - The company has completed the construction of the Metrolux production line and is currently applying for product registration[1]. - The company has made significant progress in the GMP inspection of its injection production project, with some production lines already in operation[1]. - The company is preparing for trial production in the technical transformation project for oral solid preparations, with major equipment already installed and undergoing testing[1]. Research and Development - The company’s R&D investment accounted for 3.79% of its operating revenue during the reporting period[12]. - The company’s R&D investment was CNY 131,544.98 million, which is 15.17% of its operating revenue, compared to the industry average of CNY 192,840.29 million[12]. - R&D investment accounted for 4.71% of net assets during the reporting period[15]. - The capitalization ratio of R&D investment was 0.43% in the reporting period[15]. - Research and development expenses for the project HS387 amounted to CNY 21.19 million, representing a significant increase of 2861.51% compared to the previous year[55]. - The company has a total of five major R&D projects, with varying investment amounts and changes compared to the previous year[55]. - In the R&D sector, the company has received clinical approval for 2 innovative drugs and 5 generic drugs, with 3 products passing or deemed to have passed consistency evaluations, including the first domestic approval for Pravastatin Sodium Tablets[101]. - The company has applied for a total of 1,305 patents, including 1,236 invention patents, with 435 valid patents granted, showcasing its strong R&D capabilities[173]. - The company has undertaken three national key research and development projects, further enriching its product reserves and enhancing its market position[101]. Financial Performance - The net profit attributable to the parent company for 2023 was -93,171,306.60 CNY, while the parent company achieved a net profit of 379,105,746.96 CNY[28]. - The total profit available for distribution to shareholders for the year was 2,529,569,454.09 CNY after accounting for legal reserves and cash dividends[28]. - The company reported a net profit of negative value for the year 2023, leading to a proposal of no cash dividends, no bonus shares, and no capital reserve transfer to share capital[44]. - The company's total operating revenue for 2023 was approximately ¥10.37 billion, a decrease of 13.82% compared to ¥12.04 billion in 2022[77]. - The net profit attributable to shareholders was a loss of approximately ¥93.17 million, representing a decline of 119.06% from a profit of ¥488.86 million in the previous year[77]. - The net cash flow from operating activities decreased by 27.26% to approximately ¥1.50 billion, down from ¥2.07 billion in 2022[77]. - The company's total assets at the end of 2023 were approximately ¥17.61 billion, a decrease of 6.20% from ¥18.78 billion in 2022[77]. - The weighted average return on net assets was -1.15%, a decrease of 7.53 percentage points from 6.38% in the previous year[81]. - The basic earnings per share for 2023 was -¥0.08, a decrease of 119.05% from ¥0.42 in 2022[78]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of approximately ¥100.02 million in 2023 compared to a profit of ¥312.73 million in 2022, a decrease of 131.98%[77]. Sales and Marketing - The total sales expenses for the company reached CNY 1.48 billion, with marketing promotion expenses accounting for 62.41% of the total[57]. - The sales expenses for the reporting period totaled approximately ¥236.84 million, accounting for 22.83% of operating revenue[60]. - The company’s sales model has been detailed in the management discussion section of the report, highlighting its operational strategies[56]. - The company has established a nationwide sales network covering top 100 chain pharmacies, enhancing consumer access to medications[133]. - The company has integrated commercial channels and optimized marketing models, achieving growth in overall channels and innovative businesses while controlling costs and improving efficiency through various measures[93]. - The company’s marketing strategy includes a multi-channel integrated approach, covering over 16,000 medical institutions across 31 provinces in China[168]. Operational Efficiency - Employee compensation expenses amounted to 743,542,698.98 CNY, representing 31.39% of total expenses[21]. - Depreciation and amortization expenses were 62,335,869.99 CNY, accounting for 2.63% of total expenses[21]. - The company has implemented a series of management reforms to improve efficiency and reduce costs across its operations[125]. - The company has undertaken measures to optimize transportation methods and manage near-expiry products effectively, contributing to improved operational efficiency[93]. - The company has established a quality management system that meets international standards, ensuring compliance with global pharmaceutical quality requirements[161]. Market Position and Strategy - The company has been recognized as one of the top 100 pharmaceutical companies in China for 2022 and 2023, highlighting its industry influence and innovation capabilities[148]. - The company is actively expanding into emerging markets, including health and wellness sectors, to diversify its business portfolio[146]. - The company aims to enhance its product offerings in the cardiovascular and metabolic disease treatment areas, contributing to the "Healthy China 2030" initiative[106]. - The company has strengthened partnerships with major breeding groups in the animal health sector, increasing sales proportion from large clients, while also enhancing online product promotion to boost brand influence[98]. - The company has established cooperative relationships with domestic and international formulation clients, focusing on core products to enhance competitiveness in key markets like the EU and the US[97]. Challenges and Risks - The company emphasizes the importance of risk disclosure regarding forward-looking statements in its annual report[29]. - The pharmaceutical manufacturing industry in China faced challenges in 2023, with a reported revenue decline of 3.7% year-on-year[127]. - The decline in revenue from the pharmaceutical distribution business was primarily due to cautious accounting practices and changes in agency relationships[186]. - The company reported a net profit of -418 million RMB in Q4 2023, a decrease of 469 million RMB compared to Q4 2022, primarily due to the impact of centralized procurement on key products[177]. Corporate Governance - The company has engaged Tianjian Accounting Firm for auditing services, with specific auditors named[39]. - The company’s legal representative is Shen Xinghu, overseeing its operations and compliance[36]. - The company has subsidiaries including Zhejiang Hisun Pharmaceutical Co., Ltd. and others, contributing to its overall business structure[35]. - The company has established R&D centers in multiple locations, including Taizhou, Shanghai, Hangzhou, and the United States, demonstrating its full-chain drug R&D capabilities[199].