Jiuzhou Pharmaceutical(603456)2025-04-10 09:20Profit Distribution and Financial Performance - The profit distribution plan for 2024 proposes a cash dividend of 3.00 CNY per 10 shares (tax included) to all shareholders, with no capital increase or bonus shares issued this year[4]. - The company's operating revenue for 2024 was CNY 5,160,584,725.38, a decrease of 6.57% compared to CNY 5,523,418,175.43 in 2023[22]. - The net profit attributable to shareholders for 2024 was CNY 606,096,350.90, down 41.34% from CNY 1,033,255,687.14 in 2023[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 593,522,422.32, a decrease of 42.06% compared to CNY 1,024,292,645.51 in 2023[22]. - The net cash flow from operating activities for 2024 was CNY 991,655,174.07, down 27.10% from CNY 1,360,323,930.39 in 2023[22]. - The total cash dividend amount has been adjusted to 445,387,214 RMB, based on a share capital of 890,774,428 shares, following the repurchase of 8,660,800 shares[186]. - The cumulative cash dividend amount over the last three accounting years is 1,069,795,943.60 RMB, with a cash dividend ratio of 137.06% based on the average net profit of 853,507,469.54 RMB[190]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[3]. - There are no non-operating fund occupations by controlling shareholders or related parties, and no violations in decision-making procedures for external guarantees[6]. - The board of directors and supervisory board members have all attended the board meeting, ensuring accountability for the report's content[3]. - The report includes a comprehensive overview of the company's governance and social responsibility initiatives[8]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute commitments to investors, highlighting investment risks[5]. - The audit committee's report indicated that the financial statements are free from significant errors or omissions, enhancing the reliability of the financial data presented[173]. Risk Management and Challenges - The company has detailed potential risks in the report, which can be found in the "Management Discussion and Analysis" section[6]. - The company faces risks related to the lifecycle changes of innovative drugs and potential market competition, which could impact sales and profit margins[144][147]. - The company is exposed to regulatory risks due to the high level of scrutiny in the pharmaceutical industry, which may affect its operations if it fails to adapt to changing regulations[146]. - The company has established a flexible pricing mechanism to mitigate foreign exchange risks associated with its significant overseas business[150]. Research and Development - The company has established multiple core technology platforms, including continuous flow technology, chiral catalysis, fluorochemistry, and biocatalysis, enhancing its R&D capabilities[34][35][36]. - The chiral catalysis platform delivered 80 chiral ligands and developed a new small molecule catalytic reaction system, applying for 7 patents in 2024[34]. - The biocatalysis platform expanded its enzyme library by developing over 180 types of enzymes and applied for 4 new patents in 2024[36]. - The formulation technology platform has nearly 100 projects under research and has applied for 49 patents, with 29 already authorized[41]. - The company has built a rich enzyme library and developed high-performance enzyme catalysts, successfully scaling up production for over 40 enzyme-catalyzed synthesis processes[64]. - The company has developed non-natural amino acid synthesis technology and established a library for innovative drug development, aiming to reduce production costs and enhance competitiveness[67]. Market and Business Strategy - The company is actively expanding its CDMO business layout and deepening partnerships to support long-term development[33]. - The global pharmaceutical market is projected to reach $2.3 trillion by 2028, with a compound annual growth rate (CAGR) of approximately 5-8% from 2023 to 2028[54]. - The global CDMO market reached $63.2 billion in 2021, with an expected CAGR of 18.5%, projected to reach $124.3 billion by 2025, outpacing the growth of the global drug market[55]. - The company aims to enhance its small molecule CDMO service capabilities by 2025, focusing on optimizing operational efficiency and expanding customer relationships[135]. - The company plans to strengthen its overseas business and R&D teams, attracting high-level talent to enhance its service offerings[135]. Corporate Governance - The company held 3 shareholder meetings during the reporting period, ensuring compliance with legal requirements and protecting the rights of all shareholders, especially minority shareholders[153]. - The board of directors consists of 9 members, including 3 independent directors, and has established four specialized committees to enhance decision-making and oversight[154]. - The company has implemented a strict insider information management system to ensure fair and transparent information disclosure during significant events[156]. - The company has a remuneration and assessment committee that reviews and submits proposals for director and senior management remuneration to the board[165]. - The company emphasizes the importance of performance-based remuneration linked to operational targets[166]. Employee and Talent Management - The company has a total of 5,001 employees, with 2,503 in production, 1,199 in technical roles, and 128 in sales[181]. - The company has implemented a five-year human resources strategic plan to align with its overall business strategy[183]. - The company has committed to providing competitive salaries and benefits to its employees, ensuring compliance with labor laws[182]. - The company will continue to enhance its internal talent system and accelerate the construction of a talent training program to improve the capabilities of key professional talents in marketing, quality, EHS, R&D, and production[140]. Environmental and Social Responsibility - The company invested approximately 23,411.58 million CNY in environmental protection during the reporting period[199]. - The company is classified as a key pollutant discharge unit and has detailed wastewater treatment processes in place[200]. - The company has established an environmental protection mechanism in compliance with regulations[199].