TONGHUA GOLDEN-HORSE(000766)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was ¥1,111,802,396.45, a decrease of 43.77% compared to ¥1,977,206,434.29 in 2019[11]. - The net profit attributable to shareholders was -¥359,496,105.33, an improvement of 82.39% from -¥2,041,890,393.46 in the previous year[11]. - The basic earnings per share for 2020 was -¥0.37, improving by 82.46% from -¥2.11 in 2019[11]. - The weighted average return on equity was -14.62%, an improvement from -57.92% in the previous year[11]. - The company reported a significant decrease in net profit for the last three accounting years, indicating ongoing challenges in maintaining operational viability[11]. - The company reported a revenue of ¥1,111,802,396.45, a decrease of 43.77% compared to the previous year, and a net profit attributable to shareholders of -¥359,496,105.33, which represents a reduction in losses of ¥1,682,394,288.13[23]. - The company reported a net profit of -359,496,105.33 CNY for 2020, with a profit margin of 0.00%[73]. - The company's net profit for 2020 was -360,659,985.13 CNY, compared to -2,042,936,120.94 CNY in 2019, showing a significant reduction in losses[190]. Cash Flow and Investments - The net cash flow from operating activities was ¥80,705,132.34, representing a 7.81% increase from ¥74,861,078.98 in 2019[11]. - The net cash flow from investment activities improved by 35.57% compared to the previous year, despite a significant decrease in cash inflow from investment activities by 81.04%[38]. - The net cash flow from financing activities was CNY 579,999,865.38, a decrease from CNY 703,289,724.02 in the previous year[197]. - The total cash inflow from investment activities was CNY 95,036,551.66, significantly lower than CNY 501,314,254.39 in the previous year[197]. - The company reported a total cash and cash equivalents increase of CNY 136,042,744.72, contrasting with a decrease of CNY 36,149,528.44 in the previous year[197]. Assets and Liabilities - The total assets at the end of 2020 were ¥4,977,076,111.43, an increase of 5.94% from ¥4,698,048,449.36 at the end of 2019[11]. - The total liabilities increased to CNY 2,671,751,837.82 in 2020, up from CNY 2,032,064,190.62 in 2019, indicating a rise of approximately 31.5%[183]. - Long-term borrowings increased significantly by 15.52% to ¥1,813,955,268.27 in 2020 from ¥983,211,736.24 in 2019[41]. - The company's total assets reached CNY 6,037,807,723.98 in 2020, compared to CNY 5,434,022,590.83 in 2019, marking a growth of 11.1%[189]. - The equity attributable to shareholders decreased to CNY 4,180,578,339.73 in 2020 from CNY 4,280,307,833.30 in 2019, a decline of 2.3%[187]. Research and Development - The company has a total of 42 invention patents, 64 utility model patents, and 2 design patents, with 2 invention patents currently under review[22]. - The company is advancing the Phase III clinical trial of its new drug, Succinyl-8-hydrogen-aminocarbamate tablets, with 600 cases enrolled to date[24]. - R&D investment decreased by 34.04% to ¥57,916,518.70 in 2020 from ¥87,805,670.72 in 2019, while the proportion of R&D investment to operating income increased to 5.21% from 4.44%[37]. - The company aims to enhance its R&D capabilities by integrating chemical, biological, and innovative drug development systems[22]. Market and Industry Challenges - The company faces risks including industry policy changes, rising production costs, and impacts from the COVID-19 pandemic[2]. - The pharmaceutical industry is undergoing significant reforms, with policies such as "volume-based procurement" and improvements in medical insurance payment methods shaping the market landscape[19]. - The company faced challenges in sales volume due to policy adjustments and the impact of the COVID-19 pandemic, leading to a decline in revenue and net profit[18]. Corporate Governance and Compliance - The company has established a comprehensive internal control system to protect the rights of shareholders and creditors[110]. - The independent directors attended 100% of the board meetings and provided constructive opinions on major matters such as profit distribution and related transactions[161]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring a complete and independent operational system[155]. - The company has established measures to ensure compliance with securities laws and industry policies regarding competition[77]. Social Responsibility and Environmental Compliance - The company donated a total of 224 boxes of "Transfer Factor Oral Liquid" to key epidemic prevention institutions during the COVID-19 pandemic, supporting public health efforts[111]. - The company invested 8.2 million yuan to build a new wastewater treatment plant with a capacity of 1000 tons per year, which has been operational since 2018[115]. - The company has implemented an environmental monitoring system to ensure compliance with pollution discharge standards[121]. - The company has not experienced any major safety incidents or environmental violations during the reporting period[111]. Shareholder Information - The total number of shareholders at the end of the reporting period was 52,089[125]. - Beijing Jinshang pledged to strictly adhere to regulations and not exploit its major shareholder status to harm the company or other shareholders' rights[75]. - The company has not reported any changes in its controlling shareholder during the reporting period[130]. - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[127].