Jincheng Pharm(300233)2021-04-26 16:00Financial Performance - Jincheng Pharmaceutical reported an overall decline in revenue, but its core business of pharmaceutical intermediates, active pharmaceutical ingredients, and finished formulations remained stable[5] - The company's operating revenue for 2020 was ¥2,961,935,834.22, an increase of 5.98% compared to ¥2,794,819,332.70 in 2019[26] - The net profit attributable to shareholders for 2020 was -¥488,844,750.60, a decrease of 340.47% from ¥203,285,186.73 in 2019[26] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥501,153,411.97, down 875.52% from ¥64,621,883.15 in 2019[26] - The net cash flow from operating activities for 2020 was ¥546,126,321.60, a decrease of 5.51% compared to ¥577,983,378.38 in 2019[26] - The total assets at the end of 2020 were ¥5,000,113,119.10, a decrease of 10.59% from ¥5,592,390,582.02 at the end of 2019[26] - The net assets attributable to shareholders at the end of 2020 were ¥3,437,981,008.87, down 15.41% from ¥4,064,167,519.74 at the end of 2019[26] - The company reported a significant decline in basic and diluted earnings per share, both at -¥1.26 for 2020 compared to ¥0.52 in 2019, a decrease of 342.31%[26] - The company’s weighted average return on net assets was -13.03% in 2020, down 18.50% from 5.47% in 2019[26] Impairment and Asset Management - In 2020, Jincheng Pharmaceutical's subsidiary, Jincheng Tail, experienced a significant decline in sales due to industry policies and the pandemic, leading to a substantial goodwill impairment of CNY 769.9794 million[5] - The company recorded an asset impairment provision totaling CNY 769.9794 million, impacting net profit, total assets, and net assets for 2020[7] - The company’s goodwill decreased by 741.7295 million yuan, with a year-end balance of 0, due to impairment provisions for subsidiaries[46] - The company reported no goodwill on the balance sheet due to impairment provisions made during the reporting period[106] Research and Development - Jincheng Pharmaceutical has been focusing on integrating intermediates, active pharmaceutical ingredients, and formulations to enhance its core competitiveness[7] - The company plans to accelerate product research and development and new project construction to create new economic growth points[7] - The company established the Jincheng Pharmaceutical Research Institute to unify R&D innovation platforms and enhance product development capabilities[54] - The company made significant progress in R&D, including breakthroughs in nicotine, 4AA, and cephalosporin technology, marking a new phase in the transformation of its pharmaceutical and chemical industry[55] - The company has a strong pipeline of new products, with multiple patents pending approval for innovative drug formulations and synthesis methods[62] - The company is actively pursuing technological advancements in drug development, as evidenced by its numerous patent applications in innovative synthesis methods[62] Market and Sales Performance - The company’s sales model combines commercial distribution with professional academic promotion, while its international market strategy focuses on self-export and domestic trade company support[44] - The company focused on market expansion, achieving substantial growth in the North American market for glutathione products[55] - Domestic sales reached ¥2,250,562,875.12, which is 75.98% of total sales, showing an 11.36% increase from ¥2,020,960,533.47[76] - International sales were ¥711,372,959.10, accounting for 24.02% of total sales, reflecting an 8.07% decrease from ¥773,858,799.23[76] Strategic Initiatives and Investments - The company established Shandong Jincheng Kunlun Pharmaceutical Co., Ltd. and Shandong Jincheng Pharmaceutical Research Institute Co., Ltd. to strengthen the raw material drug industry platform[39] - The company aims to create a full industry chain from pharmaceutical intermediates to raw materials and then to terminal preparations[39] - The company has committed to investing CNY 6.48 million in the 50 tons/year 7-AVCA industrialization project, which has been redirected to the glutathione project[140] - The company has reported a significant focus on expanding its product lines and enhancing production capabilities through strategic investments[126] Operational Efficiency and Management - The company implemented a comprehensive risk management system and improved internal control measures, earning recognition as a national advanced unit in internal auditing for 2017-2019[56] - The company launched the intelligent scheduling center and smart warehouse, enhancing operational efficiency in logistics and inventory management[56] - The company has effectively controlled project costs, resulting in a remaining balance of CNY 2.47 million from the AE-active ester new process industrialization project[158] Corporate Social Responsibility - The company actively participated in pandemic relief efforts, donating cash and medical supplies to affected areas, earning recognition as a "Demonstration Enterprise for Responsibility in Pandemic Response"[59] Financial Health and Liabilities - The company reported no financial liabilities at the end of the reporting period, maintaining a clean balance sheet[107] - The cash and cash equivalents decreased by ¥102,373,046.61, marking a 138.63% decline compared to the previous year[101] Future Outlook - The pharmaceutical industry in China is expected to maintain stable growth, supported by government policies, rising disposable income, and an aging population[8] - The company is committed to expanding its market presence and enhancing brand influence through various strategic initiatives[59]