Work report of the board of directors
2021 is the first year of the 14th five year plan. The China National Medicines Corporation Ltd(600511) board of directors diligently and faithfully performed its duties in strict accordance with the company law, the securities law and other laws and regulations, normative documents and the relevant provisions of the articles of association and the company system, strictly implemented the resolutions of the general meeting of shareholders, earnestly urged the implementation of the resolutions of the board of directors, and under the leadership of Sinopharm group and Sinopharm holdings, Lead the management team, scientifically plan the overall situation, follow the opportunity, continuously improve the level of corporate governance, deeply promote business transformation, promote the steady growth of the company, and lay a good beginning for the new leapfrog development of the company in the 14th five year plan.
Part I work summary in 2021
1、 Business performance and market honor
(I) operating performance
In 2021, China National Medicines Corporation Ltd(600511) achieved an operating revenue of 46.469 billion yuan, a year-on-year increase of 15.08%; The total profit was 2.445 billion yuan, a year-on-year increase of 27.51%; The net profit was 1.929 billion, a year-on-year increase of 27.78%; The net profit attributable to the parent company was 1.754 billion yuan, a year-on-year increase of 26.86%; The non net profit deducted from the parent company was 1.692 billion yuan, a year-on-year increase of 29.66%, and the net cash flow from operating activities reached 1.957 billion yuan. By the end of December 2021, the total assets of the company were 27.475 billion yuan, the owner’s equity attributable to the shareholders of listed companies was 12.78 billion yuan, the net assets per share was 16.94 yuan, and the return on net assets (weighted) was 14.57%. The total share capital of the company is 754502998 shares. As of December 31, 2021, the total market value is 23.789 billion yuan.
(II) market honor
China National Medicines Corporation Ltd(600511) the board of directors continued to improve the level of corporate governance, committed to establishing an honest and transparent image of the capital market, brought confidence to the capital market with compliance disclosure and honest operation, and won a good market reputation with scientific management and standardized operation, In 2021, the board of directors of the company won the “best board award of the main board” of the 12th Tianma Award for investor relations of Chinese listed companies issued by the securities times, the honor of the best board of directors of the 17th golden round table of Chinese listed companies selected by the board of directors magazine, and the winning award of the biomedical track of the 10th golden wisdom Award for leading China in the financial sector selected by the financial sector.
(III) shareholder return
The board of directors scientifically designed the annual dividend distribution plan and successfully implemented the company’s dividend distribution in 2020. The cash dividend per share was 0.55 yuan (including tax), with a total of 4149766489 yuan, accounting for 30.01% of the distributable net profit attributable to the parent company, which fully reflected the corporate social responsibility and provided good returns for shareholders. 2、 Key work of the board of directors in 2021
(I) strategic guidance, optimizing structure and building a new pattern of development in the 14th five year plan
Adhering to the strategic guidance, the board of directors of the company conducted extensive research, in-depth discussion, brainstormed and clarified ideas, further clarified the strategic positioning of China National Medicines Corporation Ltd(600511) “the 14th five year plan” around the strategy of Sinopharm group and Sinopharm holding, combined with the new situation and changes of the health industry, discussed and formulated the core business format, the subdivision strategic direction of subsidiaries and the detailed planning rules, Ensure that China National Medicines Corporation Ltd(600511) “the 14th five year plan” strategy sets sail.
First, accelerate the strategic transformation of the industrial sector. In 2021, the company established the industrial development department to strengthen industrial R & D and marketing management, and the industrial sector developed steadily. Three varieties of ambroxol injection of Guorui Pharmaceutical Co., Ltd. won the bid in the fierce competition of the 4th and 5th batch of national centralized procurement respectively; Strengthen scientific research and innovation, obtain 2 production approvals and 6 quality specifications that pass the consistency evaluation throughout the year, actively seek and reserve investment project opportunities around the extension of industrial chain and supply chain as the development path, and store energy for the high-quality development of industrial formats in the future.
Second, refine the strategic measures of core advantageous business forms. Accelerate the expansion and innovation of anesthetics business and consolidate the leading position in the industry. Deepen strategic cooperation with suppliers, actively expand business scope, expand other specially managed drugs (class II psychotropic drugs, compound preparations containing hemp, pharmaceutical precursor chemicals) into China National Medicines Corporation Ltd(600511) anesthetic sales network, and expand market development space. Promote the construction of anesthetic marketing service system and improve the ability of anesthetic supply chain management. With the help of product advantages, the oral business expands marketing and promotion and builds a national famous brand of oral products and services under the multi pronged product lines of painless, periodontal, sensory control, whitening and orthodontics.
Third, maintain the strategic concentration of traditional business and actively explore new business growth points. Actively respond to the impact of the epidemic and volume procurement on direct selling business, improve service awareness, innovate service mode, expand and enrich varieties, seek increment, and stabilize the leading position of direct selling in Beijing. In 2021, in the fourth and fifth batch of national procurement with volume, China National Medicines Corporation Ltd(600511) distribution and exclusive distribution ranked first in Beijing. Give full play to the advantages of regional market coverage in Beijing, actively seek new business growth points, actively integrate the resources of production enterprises and suppliers at all levels, expand new varieties and new businesses, accelerate the development of device business, and strive to become a leading medical device supply chain service provider in Beijing. Seize the opportunity of retail terminal expansion, expand new sales areas, and maintain rapid growth of retail direct sales.
Fourth, comply with industry changes and promote the implementation of marketing strategy. Sort out and analyze the marketing advantage resources of China National Medicines Corporation Ltd(600511) and its subsidiaries, actively seek marketing transformation opportunities, strengthen regional integration and coordination, improve marketing service ability, and promote the implementation of Sinopharm holding’s marketing strategy in China National Medicines Corporation Ltd(600511) .
(II) increase financing and investment, and steadily promote the implementation of investment and financing projects
First, continue to promote asset securitization projects. The company’s accounts receivable asset securitization project completed the first bookkeeping and issuance of 567.4 million yuan on May 26, 2020. In 2021, the ABS project completed four cycle purchases and two amortization, which played a positive role in reducing financing costs, improving operating cash flow and reducing asset liability ratio. The special plan for asset support of accounts receivable won the “annual cutting-edge trading Award” of the 7th China asset securitization forum in 2021.
Second, use the raised funds in a reasonable and compliant manner. Strictly enforce the management and use procedures of the raised funds, regularly issue the continuous supervision report on the use of the raised funds, ensure the efficient use and standardized management of the raised funds, and comprehensively increase the value of new joint-stock enterprises in the short and long term. As of December 31, 2021, the “information system construction project” has invested 397997 million yuan of raised funds. On the premise of ensuring the normal progress of the investment projects with raised funds, the company will continue to start the temporary current replenishment project in 2021, and temporarily use the idle raised funds of 750 million yuan to supplement the working capital and reduce the company’s financial expenses.
Third, actively and steadily promote investment projects. In 2021, Sinopharm Xinte pharmacy (Beijing) Co., Ltd., a wholly-owned subsidiary of China National Medicines Corporation Ltd(600511) was officially registered and began operation at the end of the year.
Sinopharm Xinte pharmacy is the first time that the company’s SPS + professional pharmacy has landed in Beijing. In the future, it will explore the retail terminal service mode from the two directions of professional pharmacy and diagnosis and treatment service, complete the last kilometer extension of the company’s grass-roots medical service, and improve the drugs and services of patients at grass-roots terminals
Services are accessible and available, so as to expand new growth space for the company. The company invested to subscribe for Sinopharm CICC medical industry innovation
Investment fund, grasp the investment opportunities of pharmaceutical industry, expand investment channels and share investment income. In anesthetics, mouth
Actively look for suitable investment projects and M & A targets in China and other innovation platforms, layout and reserve projects in advance,
Reserve power for the company’s extension growth.
(III) company development and compliance
The board of directors of the company adheres to the principles of honesty, trustworthiness and standardized operation, and constantly improves various management systems of the company,
Actively strengthen the construction of internal control system. Establish and improve the internal control system, standardize the implementation of internal control, and strengthen
Internal audit efforts in risk asset management and control, “two funds” pressure drop, hospital cooperation projects, scientific research expenditure, etc,
Increased supervision and inspection. The company has established internal control over the businesses and matters included in the evaluation scope, and
It has been effectively implemented and promoted the sustainable and stable development of the company.
According to the opinions on comprehensively promoting the construction of central enterprises under the rule of law and the guidelines on compliance management of central enterprises
And other relevant laws, regulations and normative documents, strengthen the construction of the rule of law, establish and improve the compliance management system, and put forward
Improve the company’s ability and level of standardized management and compliant operation according to law.
Strengthen the control of risk assets and the pressure drop of “two funds”, and promote risk control and quality improvement through fine management
Increase efficiency, effectively prevent major risks and ensure the high-quality development of the company.
3、 Daily operation of the board of directors
(I) board meetings and resolutions
In 2021, China National Medicines Corporation Ltd(600511) held 11 meetings of the board of directors, considered and passed 36 proposals. Specific situation
The situation is as follows:
The information published in the order resolution shall be covered with the information published in the resolution, the date of convening and the content of the resolution of the session
Date of newspaper disclosure
Shanghai Securities News
January 2021 January 14, 2021 the 25th meeting of the seventh board of directors 1. Proposal on the chairman of the company performing the duties of the general manager on behalf of the company Securities Daily and securities
Day 13
Securities times, China
Securities Journal
1. Work report of the board of directors in 2020
2. General manager’s work report of the company in 2020
3. Proposal on the full text and summary of the company’s 2020 Annual Report
4. The company’s 2020 financial statement report
5. 2020 profit distribution plan of the company
6. Corporate social responsibility report of the company in 2020
7. Report on the work of independent directors in 2020
8. Performance report of the audit committee of the board of directors in 2020
9. The company’s daily related party transactions in 2020 and the expected date of 2021
Proposal on related party transactions
10. The company plans to report to the holding subsidiary Sinopharm group Guorui pharmaceutical in 2021
