ZHEJIANG ZHENYUAN(000705)2025-04-28 14:15Financial Performance - The company's operating revenue for 2024 was ¥3,740,688,470.19, a decrease of 8.91% compared to ¥4,106,371,595.40 in 2023[17]. - The net profit attributable to shareholders for 2024 was ¥34,729,260.48, down 57.46% from ¥81,642,566.28 in 2023[17]. - The basic earnings per share for 2024 was ¥0.10, a decline of 58.33% compared to ¥0.24 in 2023[18]. - The net cash flow from operating activities for 2024 was ¥76,095,427.47, a decrease of 16.21% from ¥90,819,928.90 in 2023[18]. - Total assets at the end of 2024 were ¥3,418,794,511.15, an increase of 16.32% from ¥2,939,079,216.37 at the end of 2023[18]. - The company's net assets attributable to shareholders at the end of 2024 were ¥1,960,598,883.36, a slight decrease of 0.78% from ¥1,975,931,610.49 at the end of 2023[18]. - The company reported a significant decline in quarterly net profit, with a loss of ¥8,839,681.30 in Q4 2024[22]. - The company recognized non-operating income of ¥7,626,006.51 in 2024, compared to ¥3,430,105.46 in 2023[24]. - The company achieved a total revenue of 118,105.65 million CNY, with 117,802.33 million CNY generated from stores within Shaoxing city[46]. - The company achieved a total revenue of 3.741 billion yuan in 2024, a decrease of 8.91% compared to the previous year[59]. - The net profit attributable to shareholders was 34.73 million yuan, down 57.46% year-on-year[59]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 0.6 RMB per 10 shares to all shareholders, based on a total of 334,123,286 shares[4]. - The total distributable profit for the parent company was 425,630,467.55 yuan, with the cash dividend representing 100% of the profit distribution[154]. - The annual shareholders meeting had an investor participation rate of 38.47% on April 12, 2024[124]. - The first extraordinary shareholders meeting had a participation rate of 34.76% on May 20, 2024[124]. - The second extraordinary shareholders meeting had a participation rate of 27.56% on September 4, 2024[124]. - The third extraordinary shareholders meeting had a participation rate of 27.55% on December 4, 2024[124]. Operational Strategy and Market Position - The company is focused on expanding its market presence through direct-to-patient (DTP) services and online-to-offline (O2O) business models[9]. - The company has undergone multiple changes in its business scope since its listing, with the latest update on August 10, 2023, including drug wholesale, food sales, and third-class medical device operations[15]. - The company has diversified its sales channels, now including e-commerce and various retail formats for food and healthcare products[15]. - The company is positioned to leverage its diverse product portfolio to capture growth opportunities in the healthcare and wellness sectors[15]. - The company is actively involved in the national drug procurement program, which has included 62 types of drugs in 2024, contributing to cost reduction for patients[38]. - The company is currently expanding its market presence through acquisitions, including 100% ownership of Shaoxing Tongyuan Health Management Co., Ltd.[102]. - The company plans to enhance its market influence through innovative retail strategies and integration of its wholesale business, while focusing on quality control in traditional Chinese medicine[111]. Research and Development - The company emphasizes the importance of innovation in drug research and development, particularly in the context of generic drug consistency evaluation risks[4]. - The company is advancing multiple R&D projects aimed at enhancing product quality and reducing costs, with a focus on fermentation technology[81]. - R&D investment increased by 20.53% to ¥55,633,361.80 in 2024, compared to ¥46,157,291.31 in 2023, with R&D expenditure accounting for 1.49% of operating revenue[82]. - The number of R&D personnel rose to 117 in 2024, a 2.63% increase from 114 in 2023, with a notable 40% increase in master's degree holders[82]. - The company launched over 50 self-operated products during the reporting period, expanding its proprietary brand product range[62]. - The company’s subsidiary, Zhejiang Zhenyuan Pharmaceutical, reported a net profit of ¥2,704.95, contributing significantly to the overall profitability of the company[101]. Governance and Compliance - The report highlights the company's commitment to transparency and accuracy in financial reporting, with all board members present for the meeting[4]. - The company has a robust governance structure in place, ensuring accountability and compliance with regulatory requirements[4]. - The company is focused on enhancing its governance structure with new appointments aimed at improving operational efficiency[128]. - The company is committed to maintaining a robust management team to navigate future challenges and opportunities[128]. - The internal control self-assessment report was disclosed on April 29, 2025, indicating that 100% of the assets and revenue of the evaluated units were included in the consolidated financial statements[159]. - The internal control audit report issued by the accounting firm confirmed the effectiveness of the internal control system without any reservations[160]. Environmental Responsibility - The company holds a valid pollution discharge permit, effective until December 31, 2025, demonstrating compliance with environmental regulations[163]. - The total amount of hazardous waste discharged by the company was 2,336.93 tons, with no instances of exceeding discharge limits reported[164]. - Zhenyuan Pharmaceutical has implemented a standardized management system for hazardous waste, including classified collection and disposal, with a fully cemented hazardous waste storage area[166]. - The company has made significant investments in environmental governance, ensuring the normal operation of pollution control facilities and timely payment of environmental protection taxes[169]. - Zhenyuan Pharmaceutical actively engages in community health services, conducting over 120 events related to medication safety and health education[169]. Challenges and Risks - The management discussed various operational risks, including market competition and raw material price fluctuations, which could impact future performance[4]. - The company has experienced uncertainty regarding its ability to continue as a going concern, as indicated by recent audit reports[18]. - The pharmaceutical industry is expected to face intensified competition and regulatory pressures, with a focus on innovation and digitalization, as well as the growth of traditional Chinese medicine[104]. - The average profit margin in the pharmaceutical industry is under pressure due to centralized procurement policies, necessitating resource integration for improved operational efficiency[105]. - The company is facing risks from industry policy changes, market competition, and raw material price fluctuations, necessitating strategic adjustments and enhanced research efforts[114].