JOINN(603127)2018-02-27 16:00Financial Performance - The company's operating revenue for 2017 was CNY 301,278,957.58, representing a 24.60% increase compared to CNY 241,805,209.69 in 2016[23]. - The net profit attributable to shareholders for 2017 was CNY 76,446,395.86, a 47.89% increase from CNY 51,692,493.83 in 2016[23]. - The net cash flow from operating activities for 2017 was CNY 120,006,161.05, showing a slight increase of 1.00% from CNY 118,822,186.54 in 2016[23]. - The total assets at the end of 2017 were CNY 940,874,158.76, a 57.58% increase from CNY 597,062,330.28 at the end of 2016[23]. - The basic earnings per share for 2017 was CNY 1.12, up 33.33% from CNY 0.84 in 2016[24]. - The weighted average return on equity for 2017 was 20.57%, a decrease of 1.53 percentage points from 22.10% in 2016[24]. - The company reported a net profit of CNY 41,786,636.82 in Q4 2017, following net losses in the first three quarters[28]. - Non-recurring gains and losses totaled CNY 10,498,209.74 for 2017, compared to CNY 7,152,910.24 in 2016[31]. - The company's net assets attributable to shareholders at the end of 2017 were CNY 557,436,824.30, a 114.54% increase from CNY 259,832,442.25 at the end of 2016[23]. - The company achieved a revenue of CNY 301.28 million in 2017, representing a year-on-year growth of 24.60%[68]. - The net profit attributable to shareholders was CNY 76.45 million, reflecting a significant increase of 47.89% compared to the previous year[68]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 3.00 CNY per 10 shares (including tax) based on a total of 81.8 million shares as of December 31, 2017, and to increase capital reserves by converting 4 shares for every 10 shares held[5]. - The company has not implemented any profit distribution in 2017, with a cash dividend policy that respects minority shareholders' rights[120]. - The company has not distributed any dividends in 2016 and 2015, maintaining a focus on reinvestment[121]. - The company has outlined a plan for the distribution of ordinary share dividends, although specific figures were not disclosed in the provided content[122]. - There are no plans for cash profit distribution for ordinary shares during the reporting period, as the company did not propose a cash distribution plan[122]. - The company has established measures to ensure that any business opportunities that may compete with its operations will be directed to the company[123]. - The commitments made by the actual controllers and shareholders are legally binding and can result in penalties if violated[124]. - The company has established a plan to stabilize its stock price if it falls below the net asset value per share for 20 consecutive trading days[125]. - The total amount used for share repurchase cannot exceed 30% of the previous year's audited net profit attributable to shareholders[127]. - The controlling shareholders are required to increase their holdings if the stock price remains below the net asset value per share for 10 consecutive trading days after the repurchase plan expires[128]. Operational and Business Overview - The core business of the company is preclinical drug research services, which includes non-clinical safety evaluation, pharmacodynamics research, and animal pharmacokinetics research[36]. - The company operates a wholly-owned subsidiary, Suzhou JOINN, which is involved in drug research[11]. - The company has established two GLP centers in Beijing and Suzhou, enhancing its capabilities in preclinical evaluation services[38]. - The company has over 20 years of experience in drug evaluation, establishing a strong brand image in the industry[38]. - The marketing department has strengthened promotional activities in the US, Japan, Taiwan, and Hong Kong, focusing on new technologies and capabilities[40]. - The company has seen a significant increase in the number of new clients and order volume, as well as strategic partnerships[40]. - The company’s revenue model is based on charging research service fees for preclinical evaluation services, which are essential for drug development[38]. - The company emphasizes quality and efficiency in its services, adhering to strict regulatory requirements and quality management systems[39]. - The company has implemented a rigorous procurement process to ensure the quality of experimental animals and other materials needed for research[39]. - The company has introduced new technologies such as inhalation toxicology evaluation and CAR-T product evaluation to enhance its service offerings[40]. Market and Industry Insights - The global CRO market size reached 1.5 trillion by 2021[93]. - China's pharmaceutical sales revenue grew from approximately 29,635.86 million in 2016, with a CAGR of 16.15%[94]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, with a focus on sustainable development and pollution prevention[153]. - Water resource usage for the year was reported at 24,916 cubic meters, while electricity consumption was 5,408,730 kWh[154]. - The annual solid waste production was recorded at 27 tons, with specific waste management protocols in place[155]. - The company has established a comprehensive environmental management system, including regular inspections and third-party assessments[153]. - The company has not been listed as a severely polluting enterprise by national environmental authorities[153]. - The company has implemented measures to ensure 100% compliance with environmental regulations and stable pollutant discharge standards[153]. - The company has signed waste disposal agreements with certified companies for the management of hazardous and medical waste[155]. Governance and Compliance - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The company emphasizes the importance of accurate and complete financial reporting, with all board members present at the board meeting[8]. - The company has established multiple governance policies to enhance operational standards and protect shareholder rights[192]. - There were no penalties imposed by securities regulatory authorities in the past three years[186]. - The company maintains independence from its controlling shareholders in terms of operations and decision-making[194]. - The company ensures timely and accurate information disclosure in compliance with regulatory requirements[197]. - The board held a total of 9 meetings during the year, with 2 in-person meetings and 1 conducted via communication methods[199]. - There were no objections raised by independent directors regarding company matters during the reporting period[200]. Human Resources and Talent Management - The company has a workforce of nearly 700 employees, with most core technical personnel having over 10 years of experience[49]. - The company has 145 employees with a master's degree or above, representing approximately 21.5% of the total workforce[187]. - The company reported a significant increase in human resource costs due to talent competition and rising living costs, prompting a commitment to invest in talent acquisition and training[100]. - The company aims to improve its workforce by increasing recruitment and enhancing employee training to address talent shortages[113]. - The company conducted 127 training sessions in 2017, with a total of 2,416 employee training completions[190]. - The remuneration policy for management is based on annual salary systems linked to the company's annual performance[188]. - The total remuneration for executives during the reporting period amounted to 503.11 million CNY[177]. Future Plans and Strategic Initiatives - The company plans to increase production capacity and enhance self-sufficiency in non-human primates and rodents to avoid supply chain disruptions[101]. - The company aims for a contract value and revenue growth of no less than 20%, with innovative business growth exceeding traditional business growth[111]. - The company will enhance its international market presence by increasing marketing personnel in active R&D areas in the U.S. and participating in more drug development conferences[110]. - The company plans to expand its service offerings to include drug screening, clinical trial services, and evaluations for medical devices and veterinary products[109]. - The company will enhance its technical capabilities in bioanalysis and general toxicology, focusing on new technologies and proprietary methods in 2018[113]. - The company plans to establish a modern monkey breeding facility in southern China to improve production and quality[116]. - The company will introduce equity incentives in 2018 to boost employee motivation and business efficiency[114].