Securities code: Sichuan Huiyu Pharmaceutical Co.Ltd(688553) securities abbreviation: Sichuan Huiyu Pharmaceutical Co.Ltd(688553) Announcement No.: 2022017 Sichuan Huiyu Pharmaceutical Co.Ltd(688553)
Announcement of annual profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content tips:
Distribution ratio per share: cash dividend of 0.211 yuan per share for a shares
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and make a separate announcement on the specific adjustment.
The proportion of cash dividends in this year is less than 30%, mainly due to:
At present, the company is in the stage of accelerated promotion, expansion and development. Combined with the company’s strategic development plan, the company’s industry characteristics, development stage, business model and the company’s future capital demand, the company needs to invest a lot of funds in project R & D and the construction of relevant business supporting facilities, which is conducive to improving the company’s R & D strength and core competitiveness. At the same time, the company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
1、 Contents of profit distribution plan
Audited and confirmed by Tianjian certified public accountants, as of December 31, 2021, Sichuan Huiyu Pharmaceutical Co.Ltd(688553) (hereinafter referred to as “the company”) realized a net profit attributable to the owners of the parent company of RMB 44585860904 in 2021, and the distributable profit of the parent company at the end of 2021 was RMB 66943472014. After deliberation by the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows: the listed company plans to distribute a cash dividend of 2.11 yuan (including tax) for every 10 shares to all shareholders. As of December 31, 2021, the total share capital of the company is 423 Shanghai Pudong Development Bank Co.Ltd(600000) shares. Based on this calculation, the total cash dividend to be distributed is 8937960000 yuan (including tax). The company’s cash dividend accounts for 20.05% of the net profit attributable to the shareholders of the parent company in this year. After this profit distribution, the remaining undistributed profits are accumulated and distributed in future years. In 2021, the company did not give bonus shares and did not convert capital reserve into share capital.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the total amount of distribution unchanged and adjust the amount of distribution per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan will be implemented after being reviewed and approved by the company’s 2021 annual general meeting of shareholders.
2、 Description of cash dividend ratio less than 30% in this year
The net profit attributable to the owners of the parent company in 2021 was 44585860904 yuan, the distributable profit of the parent company at the end of 2021 was 66943472014 yuan, and the total cash dividend to be distributed by the company was 8937960000 yuan (tax included), accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are as follows:
(I) industry situation and characteristics of the company
The company is an R & D driven comprehensive pharmaceutical enterprise, mainly engaged in the R & D, production and sales of antitumor and injection drugs. The company is committed to providing patients around the world with drugs with accurate curative effect, exquisite quality and reasonable price, so as to make cancer a controllable chronic disease. Drug research and development has the characteristics of high technology, high investment, long cycle, high risk and other industries. At present, the company mainly focuses on the conformity evaluation of generic drugs, biological innovative drugs and chemical innovative drugs. At the same time, the company’s products cover raw materials, anti-tumor injections, tumor adjuvants, contrast agents, blood diseases, cardiovascular drugs and other projects, including 10 class I innovative drug projects and an improved new drug. The company continues to improve and optimize the technical platforms of biological innovative drugs, chemical innovative drugs, consistency evaluation of injections, complex injections, APIs and so on, so as to lay a solid foundation for the company to open the “combination of imitation and innovation”.
In recent years, the R & D investment in the global pharmaceutical industry has been increasing, and it is expected to increase to 227 billion US dollars by 2024; At the same time, thanks to the implementation of many favorable policies in China, the R & D investment in China Meheco Group Co.Ltd(600056) industry continues to grow, and is expected to reach US $47.6 billion by 2024 (source: frost Sullivan analysis).
In the future, with the accelerated release of the demand for innovative drugs and generic drug research and development outside China, the pharmaceutical industry will usher in an industry development opportunity of sustained growth. In order to seize the development opportunities of the industry, the company needs to invest funds for strategic layout.
(II) development stage of the company and its own business model
At present, the company has been promoting all work around the established objectives, continuously expanding the sales scale, promoting the rapid development of drug research and development, vigorously expanding the market at home and abroad, steadily improving the quality management level and promoting project construction. The company has always adhered to the development plan of “imitation, innovation, combination of imitation and innovation – innovation”, and is rapidly moving from “imitation, innovation” to “combination of imitation and innovation”. The company continues to optimize its product pipeline, Unswervingly promote the research and development of innovative drugs, strengthen the development of markets outside China, actively respond to industry and market changes, and ensure the stable development of the company.
At present, the company is in a relatively rapid development stage. According to the company’s strategic planning and arrangement, it needs to invest funds for the R & D of innovative drugs, complex injections and other products, the construction of relevant business supporting facilities and the supplement of working capital.
(III) profitability and capital demand of listed companies
During the reporting period, the listed company made a profit of 44585860904 yuan, and the company distributed a total cash dividend of 8937960000 yuan in 2021, accounting for 20.05% of the net profit attributable to the shareholders of the parent company in the consolidated statements, which is in line with the relevant policies of the company in the dividend return plan for the next three years after the listing of the company. For the future business development of the company, the company needs to continuously increase capital investment in R & D investment, R & D supporting facilities construction and technical personnel reserve.
(IV) reasons for the low level of cash dividends of listed companies
The company is a newly listed company in 2021. It is mainly considered that the company is in the growth period, the construction of relevant projects is advancing in an orderly manner, the company has major capital expenditure arrangements, and the R & D investment will continue to be strengthened; With the expansion of the company’s business scale, the demand for working capital will continue to grow, and the company must invest a large amount of its own working capital to support the development of the company; At the same time, the company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market.
(V) the exact purpose of the retained undistributed profits of listed companies and the expected earnings. For the retained undistributed profits, the company will continue to apply them to the development of its main business, actively promote the implementation of development strategy, support the continuous development of business, further improve the profitability of the company, and repay the majority of investors with better operating performance.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 22nd Meeting of the first board of directors on April 6, 2022, deliberated and adopted the proposal on profit distribution plan for 2021, with 8 affirmative votes, 0 negative votes and 0 abstention votes, and agreed to submit the profit distribution plan to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
In order to realize the sustainable, stable and healthy development of the company and better safeguard the long-term interests of all shareholders, the annual profit distribution plan for 2021 prepared by the board of directors is in line with the actual operation and financial situation of the company and does not violate the company law, the securities law The guidelines for the supervision of listed companies No. 3 – cash dividends of listed companies and other laws, regulations and relevant provisions of the articles of association. Therefore, we agree to the proposal on profit distribution plan for 2021 and agree to submit the proposal to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The company held the 13th meeting of the first session of the board of supervisors on April 6, 2022, deliberated and passed the proposal on the profit distribution plan for 2021. The board of supervisors held that the profit distribution plan for 2021 fully considered the company’s profitability, cash flow status and capital demand plan, combined with the current development stage, long-term development plan and reasonable return plan for shareholders, and there was no situation damaging the interests of shareholders, It is conducive to the sustainable and stable development of the company and complies with the provisions of relevant laws, regulations and the articles of association. The board of supervisors of the company agrees to submit this proposal to the general meeting of shareholders of the company for deliberation.
4、 Relevant risk tips
This profit distribution plan combines the company’s profitability, future capital demand and other factors, and will not cause the company’s shortage of working capital, have a significant impact on the company’s operating cash flow, and have an adverse impact on the company’s normal operation and long-term development.
The profit distribution plan must be submitted to the general meeting of shareholders for deliberation. Please pay attention to the investment risks.
It is hereby announced.
Sichuan Huiyu Pharmaceutical Co.Ltd(688553) board of directors April 7, 2022
