Annual Report and Confirm That There Are No False Information, Misleading Statements Or Material Omissions in This Annual Report
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(Stock code: 0874) 年 報 2019 ANNUAL REPORT 2019 ANNUAL 年報 REPORT 2019 2019 Contents Page I. DEFINITIONS ..................................................................... 3 II. COMPANY PROFILE AND FINANCIAL HIGHLIGHTS ........................................ 8 III. COMPANY’S BUSINESS PROFILE ..................................................... 14 IV. DISCUSSION AND ANALYSIS OF OPERATION............................................ 24 V. MAJOR EVENTS.................................................................. 94 VI. CHANGES IN SHARE CAPITAL AND SHAREHOLDERS ..................................... 149 VII. RELEVANT INFORMATION ON PREFERRED SHARES ...................................... 158 VIII. DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT AND STAFF ............................ 159 IX. CORPORATE GOVERNANCE ....................................................... 176 X. RELEVANT INFORMATION OF COMPANY’S BONDS ...................................... 195 XI. FINANCIAL REPORTS ............................................................. 196 XII. DOCUMENTS AVAILABLE FOR INSPECTION ............................................ 412 IMPORTANT NOTICE I. The Board, the Supervisory Committee and the Directors, Supervisors and senior management of the Company collectively and individually accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this annual report and confirm that there are no false information, misleading statements or material omissions in this annual report. II. All the Directors were present at the 31st meeting of the seventh session of the Board, among whom, Mr. Jiang Wenqi, Mr. Wong Hin Wing and Ms. Wang Weihong, all being independent non-executive Directors, attended the meeting by telephone. III. The financial reports of the Group and the Company for the year ended 31 December 2019 are prepared in accordance with the China Accounting Standards for Business Enterprises, which are audited by WUYIGE Certified Public Accountants LLP which had issued an unqualified auditors’ report in respect thereof. IV. Mr. Li Chuyuan (chairperson of the Board), Mr. Li Hong (an executive Director and the general manager) and Ms. Yao Zhizhi (deputy director of Finance and head of the finance department) declared that they warrant the truthfulness, accuracy and completeness of the financial reports contained in this annual report. V. Profit distribution plan or plan of carrying over reserved funds to equity shares during the Reporting Period as considered by the Board As audited and confirmed by WUYIGE Certified Public Accountants LLP: the net profit of the Group attributable to the shareholders of the Company amounted to RMB3,188,884,638.91 in 2019. Based on the net profit of the Company of RMB1,575,060,228.56 in 2019, a 10% statutory surplus reserve in the amount of RMB157,506,022.86 is provided, with the addition of the undistributed profit carried over from 2018 in the amount of RMB5,261,377,836.18, and after deducting the cash dividends of 2018 in the amount of RMB689,335,362.38, the actual distributable profits amounted to RMB5,989,596,679.50. Based on the actual circumstances of the Company, it is proposed that based on the share capital of 1,625,790,949 shares as at the end of 2019, a cash dividend of RMB5.89 (inclusive of tax) for every 10 shares, amounting to an aggregate of RMB957,590,868.96, be distributed. The undistributed portion shall be carried over to the next distribution. There will not be any capitalization of capital reserve for 2019. The profit distribution plan will be submitted to the 2019 Annual General Meeting for approval. Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited • Annual Report 2019 1 Contents VI. Forward-looking statements such as plans for the future and development strategy contained in this annual report do not constitute any actual commitment of the Company to investors. Investors are advised to pay attention to any investment risk. VII. There was no non-operational appropriation of the funds of the Company by its connected parties. VIII. The Company had not provided any external guarantee in violation of the decision-making procedures stipulated by the Company. IX. Warning on Significant Risks During the Reporting Period, there are no significant risks that have substantive and significant effect on the production and operation of the Group. Various risks and corresponding measures that the Group might face in the production and operation have been detailed in this annual report. Please refer to “(3) Potential challenges and risks” under “3. Discussion and Analysis on Future Development”, set out in the section headed “IV Discussion and Analysis of Operation” in this annual report. X. This annual report is prepared in both English and Chinese. In the event of discrepancy in interpretation, the Chinese version shall prevail. 2 Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited • Annual Report 2019 Definitions In this annual report, unless the context otherwise requires, the following terms have the meanings as follows: Company/ the Company/ GYBYS Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (廣州白雲山醫藥集團股份有限公司) PRC or China the People’s Republic of China Reporting Period/ Year/ from 1 January 2019 to 31 December 2019 the current year After the Reporting Period the period after the end of the Reporting Period and up to the date of this annual report, being from 1 January 2020 to 31 March 2020 Group the Company and its subsidiaries Board the board of Directors Directors the directors of the Company Supervisory Committee the supervisory committee of the Company Supervisors the supervisors of the Company CSRC China Securities Regulatory Commission SSE The Shanghai Stock Exchange HKEx The Stock Exchange of Hong Kong Limited Depository Corporation the Shanghai branch of China Securities Depository and Clearing Corporation Limited Guangzhou SASAC The State-owned Assets Supervision and Administration Commission of Guangzhou Municipal Government Company law Company law of the People’s Republic of China Securities law Securities law of the People’s Republic of China Articles of Association the articles of association of the Company Listing Rules of HKEx the Rules Governing the Listing of Securities on HKEx Listing Rules of SSE the Listing Rules of the SSE SFO the Securities and Futures Ordinance(Chapter 571 of the Laws of Hong Kong) Model Code The Model Code for Securities Transactions by Directors of Listed Issuers contained in the Listing Rules of HKEx Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited • Annual Report 2019 3 Definitions GPHL Guangzhou Pharmaceutical Holdings Limited(廣州醫藥集團有限公司) GPC Guangzhou Pharmaceutical Company Limited(廣州藥業股份有限公司) Xing Qun Guangzhou Baiyunshan Xing Qun Pharmaceutical Co., Ltd.(廣州白雲山星群 (藥業)股份有限公司) Zhong Yi Guangzhou Baiyunshan Zhong Yi Pharmaceutical Company Limited(廣州白 雲山中一藥業有限公司) Chen Li Ji Guangzhou Baiyunshan Chen Li Ji Pharmaceutical Factory Company Limited (廣州白雲山陳李濟藥廠有限公司) Qi Xing Guangzhou Baiyunshan Qi Xing Pharmaceutical Co., Ltd.(廣州白雲山奇星藥 業有限公司) Pan Gao Shou Guangzhou Baiyunshan Pan Gao Shou Pharmaceutical Co., Ltd.(廣州白雲山 潘高壽藥業股份有限公司) Jing Xiu Tang Guangzhou Baiyunshan Jing Xiu Tang Pharmaceutical Co., Ltd.(廣州白雲山 敬修堂藥業股份有限公司) Wang Lao Ji Guangzhou Wang Lao Ji Pharmaceutical Co., Ltd.(廣州王老吉藥業股份有限 公司) Guangzhou Han Fang Guangzhou Baiyunshan Han Fang Contemporary Pharmaceutical Co., Ltd.(廣 州白雲山漢方現代藥業有限公司) Guangzhou Bai Di Guangzhou Baiyunshan Bai Di Bio-technology Co., Ltd.(廣州白雲山拜迪生 物醫藥有限公司) Guangxi Ying Kang Guangxi Baiyunshan Yingkang Pharmaceutical Company Limited(廣西白雲 山盈康藥業有限公司) WLJ Great Health Guangzhou WLJ Great Health Industry Co., Ltd.(廣州王老吉大健康產業有限 公司) GP Corp. Guangzhou Pharmaceuticals Corporation(廣州醫藥有限公司) Cai Zhi Lin Guangzhou Cai Zhi Lin Pharmaceutical Co., Ltd.(廣州采芝林藥業有限公司) Pharmaceutical Import & Export Guangzhou Pharmaceutical Import & Export Company Limited(廣州醫藥進 出口有限公司) Guangyao Baiyunshan Guangzhou Pharmaceutical Baiyunshan Hong Kong Company Limited(廣藥 Hong Kong Company 白雲山香港有限公司) Baiyunshan Guangzhou Baiyunshan Pharmaceutical Co., Ltd.(廣州白雲山製藥股份有限 公司) 4 Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited • Annual Report 2019 Definitions Baiyunshan General Factory Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. Baiyunshan Pharmaceutical General Factory(廣州白雲山醫藥集團股份有限公司白雲 山製藥總廠) Chemical Pharmaceutical Factory Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. Baiyunshan Chemical Pharmaceutical Holdings Co., Ltd. Baiyunshan Chemical Pharmaceutical Factory(廣州白雲山醫藥集團股份有限公司白雲山化學製 藥廠) He Ji Gong Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. Baiyunshan He Ji Gong Pharmaceutical Factory(廣州白雲山醫藥集團股份有限公司白雲山 何濟公製藥廠) Tian Xin Guangzhou Baiyunshan Tian Xin Pharmaceutical Co., Ltd.(廣州白雲山天心 製藥股份有限公司) Guang Hua Guangzhou Baiyunshan Guang Hua Pharmaceutical Co., Ltd.,(廣州白雲山光 華製藥股份有限公司) Ming Xing Guangzhou Baiyunshan Ming Xing Pharmaceutical Co., Ltd.(廣州白雲山明 興製藥有限公司) HWBYS Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited(廣州白雲山和記黃埔中藥有限公司) Hua Cheng Guangzhou Hua Cheng Pharmaceutical Co., Ltd.(廣州花城藥業有限公司) Baxter Qiao Guang Guangzhou Baxter Qiao Guang Pharmaceutical Co., Ltd.(廣州百特僑光醫療 用品有限公司) Nuo Cheng Guangzhou Nuo Cheng Biological Products Co., Ltd.(廣州諾誠生物製品股份 有限公司) WLJ Ya’an Company Wang Lao Ji Great Health Industry(Ya’an) Co., Ltd.(王老吉大健康產業 (雅安)有限公司) Pharmaceutical Technology Guangzhou Baiyunshan Pharmaceutical Technology Development Co., Ltd. (廣州白雲山醫藥科技發展有限公司) Weiling Baiyuanshan Weiling Pharmaceutical Co.,