Shenqi(600613)2022-07-22 16:00Financial Performance - The company's operating revenue for 2021 was RMB 2,303,032,719, representing a 26.61% increase compared to RMB 1,819,006,691 in 2020[19]. - Net profit attributable to shareholders reached RMB 69,622,537, a significant increase of 120.41% from a loss of RMB 341,202,593 in 2020[21]. - The net profit after deducting non-recurring gains and losses was RMB 38,620,696, up 111.21% from a loss of RMB 344,510,890 in the previous year[22]. - Cash flow from operating activities increased by 85.94%, totaling RMB 184,263,469 compared to RMB 99,097,235 in 2020[19]. - Basic and diluted earnings per share were both RMB 0.13, a 120.31% increase from a loss of RMB 0.64 in 2020[20]. - The weighted average return on equity rose to 3.01%, an increase of 20.88 percentage points from -17.87% in 2020[20]. - The total assets at the end of 2021 were RMB 3,148,970,121, a 1.65% increase from RMB 3,097,971,351 at the end of 2020[19]. - The net assets attributable to shareholders increased by 2.94% to RMB 2,344,283,895 from RMB 2,277,367,601 in 2020[19]. - The company disposed of an investment subsidiary, generating an investment income of over RMB 28,100,000, contributing to the profit growth[22]. Dividend Distribution - The company plans to distribute a cash dividend of 1 RMB per 10 shares, totaling 53,407,162.8 RMB based on a total share capital of 534,071,628 shares as of December 31, 2021[4]. - The cash dividend policy is in compliance with the company's articles of association and has clear standards and ratios for distribution[200]. Risk Management - The company emphasizes that forward-looking statements regarding future plans and development strategies do not constitute a substantive commitment to investors, highlighting the importance of investment risk awareness[5]. - The company has detailed potential risks in the section discussing future development in the annual report[6]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[6]. - There are no violations of decision-making procedures regarding external guarantees[6]. - The company is closely monitoring industry policy changes and regulatory risks, establishing a dynamic warning mechanism to adapt to new regulations and maintain profitability[155]. Research and Development - The company continues to innovate in drug research and development, achieving multiple technological advancements and applying for national patents[36]. - Research and development expenses rose to CNY 50.95 million, reflecting a 19.06% increase from the previous year[83]. - The company holds a total of 133 patents, including 84 invention patents, enhancing its market competitiveness[80]. - The company is increasing investment in R&D for traditional Chinese medicine products, focusing on optimizing production processes and enhancing quality control standards[112]. - The company is conducting evidence-based medical research on sodium cantharidate products to explore further indications and derivative development[113]. Market Position and Strategy - The company is focusing on brand building as a systematic project to enhance its industry position and brand image[44]. - The company has a market share leading position in its core product, the sodium cantharidate series, which is a unique product in the country[68]. - The company collaborates with well-known hospitals for clinical research and technology transfer, enhancing its competitive edge in the industry[73]. - The company is actively exploring the dermatology and chronic disease segments, emphasizing the development of unique and key products to address chronic diseases and skin conditions[146]. - The company is positioned to leverage policy advantages and market demand in the pharmaceutical sector, particularly in response to the COVID-19 pandemic and related healthcare needs[110]. Corporate Governance - The company has established a robust corporate governance structure to ensure independent operations and protect shareholder rights[169]. - The board of directors consists of 9 members, including 3 independent directors, meeting the requirement of one-third independence[170]. - The company has established performance evaluation standards and procedures for senior management[171]. - The company has implemented a management system for information disclosure to ensure timely and accurate information sharing with shareholders[171]. - The company respects the rights of stakeholders, including creditors and employees, to promote sustainable development[171]. Operational Efficiency - The company is committed to cost control and efficiency improvement through lean management initiatives, aiming to reduce production costs and enhance operational efficiency[150]. - The company is enhancing its internal control systems to mitigate operational risks and improve efficiency, focusing on compliance and risk prevention measures[151]. - The company has implemented online operations and remote video meetings to ensure stable product quality and market supply during the pandemic[157]. - The company is enhancing procurement management and establishing strategic inventory reserves to mitigate raw material cost pressures[159]. Employee Management - The total number of employees in the parent company and major subsidiaries is 1,371, with 7 in the parent company and 1,364 in subsidiaries[194]. - The workforce includes 514 production personnel, 115 sales personnel, 221 technical personnel, 47 financial personnel, and 474 administrative personnel[194]. - The company emphasizes performance-based salary structures, linking employee compensation to company and individual performance[195]. - Future adjustments to the salary system will consider operational results and local market conditions to enhance employee benefits[196]. - The company has implemented targeted training programs to improve employee skills and overall management levels[197].