PDF《2011》

年报

2011 Annual?Report

2011 Lijun International Pharmaceutical (Holding) Co.

, Ltd. 利君国际医药 (控股) 有限公司 Annual?Report?2011 二零一一年年报

1 Annual?Report?2011 CONTENTS ? ? Pages Corporate?Information

2 Chairman'

s?Statement 3-8 Management?Discussion?and?Analysis 9-13 Biographical?Details?of?Directors?and?Senior?Management 14-17 Report?of?the?Directors 18-27 Corporate?Governance?Report 28-40 Independent?Auditor'

s?Report 41-42 Consolidated?Balance?Sheet 43-44 Balance?Sheet?of?the?Company

45 Consolidated?Statement?of?Comprehensive?Income 46-47 Consolidated?Statement?of?Changes?in?Equity

48 Consolidated?Cash?Flow?Statement

49 Notes?to?the?Consolidated?Financial?Statements 50-119 Five?Years?Financial?Summary

120 2 Lijun?International?Pharmaceutical?(Holding)?Co.,?Ltd. CORPORATE INFORMATION ? ? STOCK CODE

2005 EXECUTIVE DIRECTORS Mr.?wu?qin?(Chairman) Mr.?qu?Jiguang Mr.?Xie?Yunfeng Mr.?Huang?Chao Mr.?wang?Xianjun Mr.?Duan?wei Ms.?Zhang?Guifu Mr.?Bao?Leyuan Ms.?Gao?Shuping INDEPENDENT NON-EXECUTIVE DIRECTORS Mr.?wang?Yibing Mr.?Leung?Chong?Shun Mr.?Chow?Kwok?wai COMPANY SECRETARY Mr.?Chow?Hing?Yeung REGISTERED OFFICE Cricket?Square,?Hutchins?Drive P.O.?Box?2681?GT,?Grand?Cayman KY1-1111,?Cayman?Islands HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG Office?2809,?28th?Floor Office?Tower,?Convention?Plaza 1?Harbour?Road,?wanchai Hong?Kong AUTHORISED REPRESENTATIVES Mr.?wang?Xianjun Mr.?Bao?Leyuan AUDIT COMMITTEE Mr.?Chow?Kwok?wai?(Committee?Chairman) Mr.?wang?Yibing Mr.?Leung?Chong?Shun REMUNERATION COMMITTEE Mr.?Leung?Chong?Shun?(Committee?Chairman) Mr.?wang?Yibing Mr.?Chow?Kwok?wai NOMINATION COMMITTEE Mr.?wang?Yibing?(Committee?Chairman) Mr.?Leung?Chong?Shun Mr.?Chow?Kwok?wai PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE Butterfield?Fulcrum?Group?(Cayman)?Limited P.O.?Box?705,?Butterfield?House,?68?Fort?Street George?Town,?Grand?Cayman,?Cayman?Islands British?west?Indies HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE Computershare?Hong?Kong?Investor?Services?Limited 17M?Floor,?Hopewell?Centre 183?queen'

s?Road?East,?Hong?Kong PRINCIPAL BANKERS Bank?of?China Bank?of?China?(Hong?Kong)?Ltd. Industrial?and?Commercial?Bank?of?China China?Construction?Bank China?Construction?Bank?(Asia) China?Merchants?Bank China?Minsheng?Banking?Corp.,?Ltd. China?CITIC?Bank Hang?Seng?Bank CITIC?Bank?International Banks?of?Communications? Shanghai?Pudong?Development?Bank Agricultural?Bank?of?China Shijiazhuang?City?Commercial?Bank LEGAL ADVISER TO THE COMPANY AS TO HONG KONG LAW DLA?Piper?Hong?Kong AUDITOR PricewaterhouseCoopers WEBSITE http://www.lijun.com.hk

3 Annual?Report?2011 CHAIRMAN'

S STATEMENT ? ? On? behalf? of? the? board? of? directors? of? Lijun? International? Pharmaceutical? (Holding)? Co.,? Ltd.? (the? Company ),? I?present?the?annual?results?of?the?Company?and?its?subsidiaries?(the? Group )?for?the?year?ended?31?December? 2011. 1. RESULTS AND DIVIDEND DISTRIBUTION In?2011,?the?difficulties?faced?by?the?Group?were?unprecedented.?On?one?hand,?with?intensifying?domestic? inflation,?the?prices?of?energy?power,?raw?and?auxiliary?materials?and?labour?costs?had?continued?to?rise,? while? on? the? other? hand,? the? National? Development? and? Reform? Commission? had? substantially? reduced? the? prices? of? pharmaceutical? products? with? the? nationwide? launching? of? the? essential? medicine? tender? policy?of? only?lower?price?can?prevail .?Hence,?sales?of?the?Group'

s?products?was?vastly?affected,?resulting? a? substantial? drop? of? its? overall? gross? profit? margin.? Meanwhile,? city? construction? tax? and? supplemental? education? tax? were? imposed? since? 2011.? Facing? such? uncontrollable? and? unfavourable? profit? reduction? factors,? the? Group? managed? to? expand? the? production? and? sales? scale? of? its? leading? branded? products,? strive?to?reduce?its?production?and?operation?costs,?proactively?adjust?the?management?and?growth?models,? and?strive?to?overcome?the?adverse?impact?from?policy?change?and?market?competition,?for?which?both?the? Company?and?staff?had?made?great?contribution?in?this?respect. During?2011,?the?Group'

s?revenue?of?its?principal?business?amounted?to?HK$2,155,000,000,?representing? an? increase? of? 9.3%? as? compared? with? last? year;

? among? which,? HK$1,119,000,000? was? from? Xi'

an? Lijun,? representing? a? decrease? of? 5.4%? as? compared? with? last? year,? and? HK$1,036,000,000? was? from? Shijiazhuang? No.4? Pharma,? representing? an? increase? of? 31.4%? as? compared? with? last? year.? The? Group? achieved? a? net? profit? of? HK$183,000,000,? and? after? deducting? provision? for? impairment? of? goodwill? of? HK$224,000,000,? the? loss? attributable? to? shareholders? was? HK$41,400,000.? The? impairment? of? goodwill? will?not?affect?the?cash?flow?position?of?the?Group. The?Board?recommended?the?payment?of?final?dividend?of?HK$0.02?per?share?for?the?second?half?year,?and? together?with?the?interim?dividend?of?HK$0.02?per?share,?total?dividend?for?the?year?were?HK$97,790,000,? representing?an?increase?of?1.8%?as?compared?with?the?total?dividend?for?last?year?of?HK$96,080,000. 2. REVIEW OF OPERATING RESULTS (1) Product marketing 1. Doubling production scale and further optimizing the structure of intravenous infusion solutions The?infusion?solution?products?became?the?severely-affected?sector?under?the?new?essential? medicine? tender? policy.? However,? the? Group? was? successful? in? coping? with? the? market? changes? and? policy? variation,? and? achieved? remarkable? results? through? enhancing? the? domestic? market? and? expanding? foreign? trade? sales.? The? Group? had? further? optimized? its? infusion? solution? product? structure? with? sales? revenue? of? non-PVC? soft? bag? infusion? solution?and?PP?plastic?bottle?infusion?solution?during?the?year?increased?by?49%?and?31.2%? respectively? as? compared? with? the? same? period? last? year.? The? Group'

s? customer? base? is? moving?further?towards?the?high-end.? Foreign?trade?export?and?processing?continued?to?growth.?The?Group'

s?product?is?exporting? to?50?countries?and?regions?with?export?sales?reached?US$7,500,000,?representing?a?year-on- year?increase?of?14.3%.

4 Lijun?International?Pharmaceutical?(Holding)?Co.,?Ltd. CHAIRMAN'

S STATEMENT ? ? 2. REVIEW OF OPERATING RESULTS (continued) (1) Product marketing (continued) 2. Antibiotics business was severely affected by national price reduction policy In? March? 2011,? the? National? Development? and? Reform? Commission? lowered? the? prices? of? numerous? antibiotics.? Among? which,? the? prices? of? Lijunsha? and? Paiqi,? our? leading? branded? products,?were?lowered?by?10%?to?52%?respectively.?As?a?result,?both?sales?and?profit?were? reduced.? Sales? of? Lijunsha? dropped? for? the? first? time? for? more? than? 10? years? to? less? than? HK$400,000,000,? and? sales? of? Paiqi? products? also? failed? to? achieve? the? anticipated? target.? Amid?the?price?reduction?of?Lijunsha,?the?Group?determined?to?rectify?Lijunsha'

s?market?by? solving? problems? of? price? distortion? in? its? market.? At? the? same? time,? the? Group? vigorously? developed? the? second-tier? distribution? to? strive? for? achieving? comprehensive? commercial? distribution? and? continuously? enhancement? of? the? terminal? network? systems,? which? had? mitigated,? to? a? certain? extent,? the? impact? from? the? national? policy? change? on? the? Group'

s? operation. 3. Steady development of key brand preparation and general medicines The? Group? further? strengthened? the? end-user? market? promotion? of? key? products? such? as? Dobesilate? and? Lixiding? and? made? every? effort? to? expand? the? market? share? of? general? medicines?product?market.?Under?the?demise?of?severe?market?situation,?sales?of?Dobesilate? amounted? to? HK$92,600,000? for? the? year,? representing? a? growth? of? 13%? as? compared? to? last? year.? Facing? the? state'

s? price? reduction? pressure? of? 23.8%,? sales? of? Lixiding? amounted? to? HK$31,790,000? for? the? year,? representing? a? decrease? of? 10.5%? as? compared? to? last? year.?Sales?of?new?OTC?products?including?Haogan?influenza?drugs,?Lijungai,?weikoujia?and? Kehao? amounted? to? HK$20,790,000,? representing? an? increase? of? 42%? as? compared? to? last? year.?Sales?of?general?medicines?amounted?to?HK$424,000,000?for?the?year,?representing?an? increase?of?11%?as?compared?to?last?year.

5 Annual?Report?2011 CHAIR........