Summary of the Top Ten News Events of Sincere Pharmaceutical in 2024

Since 2024, the company has been closely focusing on the development of new quality productivity, opening up new fields and tracks, shaping new momentum and advantages in various undertakings such as technological innovation, talent cultivation, brand building, and internal management. Through technological transformation, efficiency transformation, and marketing transformation, the company has accelerated the overall promotion of building a modern industrial system. Here is a summary of the top ten news events of 2024:

Event 1: The Secretary of the Provincial Party Committee personally inspected and instructed to create a "market value of billions"

On the afternoon of January 3rd to 5th, Yi Lianhong, the Secretary of the Provincial Party Committee, accompanied by Zhang Zhenfeng, the Secretary of the Wenzhou Municipal Party Committee, and other leaders, led a team to go deep into enterprises, rural areas, and other areas in Wenzhou to listen to demands face-to-face and solve problems in a practical manner. Visit Sincere Pharmaceutical for inspection and guidance at 9:15 am on the 5th. Guo Yunqiang, Secretary of Dongtou District Committee, and Zhao Chunjian, Secretary of the Party Committee and General Manager of the company, accompanied the inspection. Secretary Yi Lianhong pointed out during the company inspection that as a key marine biopharmaceutical enterprise in the province, Chengyi Pharmaceutical not only strives to create a market value of billions, but also strives to create a market value of billions and build a century old enterprise.

In May 2022, Yuan Jiajun, the Secretary of the Provincial Party Committee, personally inspected the enterprise and pointed out that "Sincere Pharmaceutical has great potential and needs to increase its efforts in scientific and technological innovation

The main leaders of the provincial party committee have put forward higher requirements and expectations for the development of the company, which is a great encouragement and motivation for all sincere people. We will earnestly implement the important directive spirit of the main leaders of the provincial party committee, accelerate the high-quality development of the company with a higher political position, more practical development measures, and a more long-term clean and honest pattern, strive to continue to write the history of innovation in the sincere pharmaceutical industry, and write a new chapter of sincerity in Chinese path to modernization.

Event 2: Ping An Enterprise wins provincial awards, leading in safety construction

In mid March, the company was awarded the Outstanding Unit for the Construction of "Safe Enterprises" in the Industrial Industry of Zhejiang Province for 2022-2023 jointly by the Provincial Department of Economy and Information Technology, and was one of the 81 enterprises in the province, winning honors for Wenzhou.

Since the company went public, it has adhered to the principle of the general manager "personally handling", the deputy general manager in charge of production "specifically handling", and each workshop and department taking their respective responsibilities and duties. The company has established a "Safety Production Management Committee" to ensure implementation. In terms of hardware investment, the company invests over 6 million yuan annually in the construction of various safety facilities to achieve "intrinsic safety and digital management"; In terms of software construction, we adhere to the "Five Ones" of safety production: hold a safety, environmental protection and quality work conference on the first day of the Gregorian New Year every year, issue safety production goals, indicators and work plans on the 1st day of each year, and sign responsibility agreements at all levels; Hold a monthly safety meeting to coordinate and resolve safety management issues; Conduct a safety production inspection at the end of each month, identify hidden dangers, rectify and promote implementation; Carry out a safety production activity month activity once a year; Conduct a safety production summary at the end of each year, and live up to its reputation as a 'safe enterprise'.

Event 3: Building a Smart Energy System and Creating a 'Green Low Carbon Factory'

Green and low-carbon are the cornerstone of high-quality development in the manufacturing industry. Since 2024, Chengxin Pharmaceutical has made new progress in promoting energy conservation, carbon reduction, and comprehensive resource recycling. In terms of environmental governance, the company has always adhered to the "three no harm" principle proposed by the chairman, striving to build a green pharmaceutical enterprise and promote sustainable development. In 2024, the company's boiler flue gas will achieve "online controlled ultra-low emissions" and the level of "three wastes" treatment will continue to be strengthened. For this reason, the company has been awarded the honor of "Wenzhou Green Low Carbon Factory" for the year 2024. In terms of energy conservation and emission reduction, the company has implemented "comprehensive online intelligent management" of the energy system, also known as the "smart energy system", to real-time monitor the energy usage of the entire plant, improve energy efficiency, and optimize energy-saving and consumption reduction measures. Since the implementation of weekends for all employees after May Day, production efficiency has increased instead of decreased, and the comprehensive energy consumption index has decreased by more than 10% year-on-year. Actively promoting the use of green energy, the annual rooftop photovoltaic power generation was 640000 kilowatt hours, saving energy expenditure of 115200 yuan and reducing carbon emissions by 537 tons. In 2024, the company's energy consumption index per 10000 yuan of output value is 0.037 tons of standard coal per 10000 yuan, a decrease of 21% from 0.047 tons of standard coal per 10000 yuan in 2023. Green and low-carbon, truly deserving of its name.

At present, the company is actively creating a provincial-level "green low-carbon factory".

Event 4: Persist in cash dividends every year and successfully dispose of non-performing assets

Since its listing on the main board of the Shanghai Stock Exchange in March 2017, the company has adhered to annual dividends, and the average ratio of dividend amount to net profit for the year is over 34%, benefiting all investors. In the first three years before going public, the annual dividend is between 35 million yuan and 47 million yuan; After three years of listing, the annual dividend is close to 60 million yuan. The company has also conducted four capital reserve fund conversions to increase its share capital, each time with a 10 for 4 bonus. The company's share capital has also increased from 85.2 million yuan to 327.3 million yuan, reflecting the synchronous growth of returns to investors after the increase in performance.

At the end of June, the company announced that Jiangsu Chengyi Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Chengyi Pharmaceutical, located in Huai'an, Jiangsu, would be transferred to a subsidiary of the Qingjiangpu District Government of Huai'an City for paid recycling. According to the asset evaluation results, the total acquisition cost has been negotiated and determined to be approximately RMB 127 million, which has freed up the biggest loss burden for Sincere Pharmaceutical and brought multiple benefits. Firstly, it can reduce fixed expenses such as employee compensation, depreciation, and intangible asset amortization by approximately RMB 12 million annually, which will have a positive impact on the company's operating performance; Secondly, after deducting relevant costs and expenses from this transaction, the net income generated will increase the actual profit; Thirdly, this transaction resulted in a decrease in the company's asset liability ratio from 34.5% to 27.8%.

Event 5: Levocarnitine receives approval, new cicada cordyceps product launched

During the year, "innovation driven" continued to be a booster for high-quality development of enterprises: firstly, in August, the company signed a contract with a research institution in Beijing to jointly develop SJS raw materials and formulations; Secondly, in September, "Levocarnitine Injection" received the "Drug Registration Certificate" issued by the National Medical Products Administration; Thirdly, the licenses for cicada flower solid beverages and edible mushroom products have passed on-site inspections, and the production licenses for edible mushroom products and solid beverages have been approved by the Provincial Administration for Market Regulation. The company has also added a "new member" to its large health product matrix.

The achievement of every technological achievement embodies the tremendous efforts of the company's scientific research personnel over the years: in April, the company's lidocaine hydrochloride injection passed the consistency evaluation of the National Medical Products Administration, and the production license for food fish oil and additive nitrogen was approved; In July, the company obtained an invention patent for the preparation method of amikacin sulfate injection; In October, Professor Sun Yi and Stem Cell Scientist from Tongji University in Shanghai, along with Dr. Zhu Qiming from Tongji Hospital affiliated with Tongji University, visited the company to inspect the development of new products; In November, the Food and Drug Inspection Center of the National Medical Products Administration dispatched personnel to conduct on-site inspections of the company's Torasemide tablets.

According to statistics, the company has invested a total of 116 million yuan in research and development in the past three years, accounting for 5.5% of its operating revenue and ranking among the top in the province. In 2024, 5 invention patents were applied for, and as of now, a total of 21 invention patents have been obtained (including 14 authorized invention patents).

Event 6: Vigorously promoting the spirit of craftsmanship, the company rewards scientific and technological talents with great honors

On the afternoon of July 23rd, the company held a grand commendation ceremony to congratulate Comrade Zhang Zhihong on being awarded the company's first "Senior Engineer" and given a commendation of 80000 yuan. From the workshop director to the general manager of the manufacturing department, and then to the "senior engineer" in the field of chemical pharmaceuticals and the leading figure in the company's production system, Comrade Zhang Zhihong's 26 year career journey perfectly embodies the story of a "pharmaceutical craftsman" who loves his job and strives for excellence. He has also gone through the experience of an ordinary "pharmaceutical craftsman" and become an expert and leading figure in China's chemical pharmaceutical field.

At the end of the year, there was good news about the company's talent development: Comrade Fu Bangwu, who graduated with a bachelor's degree in Pharmaceutical Engineering from Shenyang Pharmaceutical University and has been fighting on the company's production line for 18 years, was recognized as a "Senior Engineer" by the Provincial Drug Administration and the Provincial Department of Human Resources and Social Security. During the year, Chen Xueqin was appointed as a senior accountant, 7 comrades including Guo Miaoting were awarded intermediate professional titles, and 12 comrades including Sun Weiwei were awarded junior professional titles.

On April 28, 2024, Wenzhou celebrated the "May Day" International Labor Day and Model Worker Advanced Commendation Conference in the Great Hall of the People. Zhao Chunjian, General Manager and Secretary of the Party Committee of Wenzhou, won the honorary title of "model worker of Wenzhou City" in 2019-2023.

Event 7: A grand ceremony was held to award the seal, and the spirit of Gutian will shine forever

On the afternoon of August 15th, the company's party committee held a ceremony to award Chairman Yan with the "Glorious 50 Years in the Party" commemorative medal issued by the Central Committee of the Communist Party of China. For the past fifty years, the chairman has led a team, run a successful enterprise, taken on a responsibility, and consolidated a spirit, making important contributions to the development of our sincere pharmaceutical industry and Dongtou. He has been awarded a series of noble honors such as "Outstanding Communist Party Member" in Zhejiang Province, setting a glorious example for all party members of the company to "always follow the Party", and providing strong spiritual strength for all employees to continue the innovation history of sincere pharmaceutical industry.

In terms of organizational construction, in mid September, the company's party committee completed the election of five subordinate party branches through "public recommendation and direct election". Among them, Lin Darong, Hong Jianzhen, and Lin Xinfa, three branch secretaries, were rated as "Double Strong Red Collar Talents" by the district committee. The company's party committee has been rated as a "five-star two new party organization" by the municipal party committee for the second time, and the "innovative case of building a clean and honest enterprise" has been rated as one of the typical 100 clean and honest private enterprises in the province for 2024 by the provincial united front work department and the provincial federation of industry and commerce. Create a five-star clean and honest private enterprise in Dongtou District, and lead the construction of clean and honest enterprises in the entire district.

At the same time, combined with the education and learning of party discipline, during the "July 1st" period, the company's party committee led all party members to visit and study at the memorial hall of the Gutian Conference site in Fujian for two days, deeply understanding the important significance of "building the party ideologically and building the military politically" established by the Gutian Conference.

Event 8: Striving for Stock Repurchase Loans, Wenzhou's First Order Pays Sincerely

At the end of November, Dongtou Construction Bank signed a "China Construction Bank Loan Commitment Letter" with the company, agreeing to provide a special loan for stock repurchase not exceeding 50 million yuan, with a loan term of one year. This move marks the implementation of the first special loan for stock repurchase and increase of holdings by a listed company in Wenzhou, following the issuance of the "Notice on the Establishment of Stock Repurchase and Increase Loans" by the China Securities Regulatory Commission, the People's Bank of China, and others. As of December 31st, the company has repurchased a total of 8409720 shares through centralized bidding trading, accounting for 2.57% of the company's total share capital. The highest transaction price was 8.36 yuan/share and the lowest transaction price was 7.36 yuan/share. The total amount of funds paid is RMB 67263133.8 (excluding transaction fees).

Since the beginning of the year, the proportion of controlling shareholders acting in unison to increase their holdings of the company's shares has reached 1%. During the year, the company received over ten groups of institutional investors, including Debon Securities, Minsheng Securities, Xinda Securities, Everbright Securities, and Zishi Investment, from its Shanghai headquarters and Dongtou Manufacturing Department for research and inspection, and received high praise from investors.

Event 9: Product advertisement on CCTV, sincerity brand goes nationwide

At the beginning of December, the advertisement of Sincere Ammonia Sugar and high-purity fish oil was broadcast in the prime time before the CCTV news broadcast, which attracted wide attention from the national television audience, which was a major step in the company's brand building. Previously, CCTV believed during on-site factory inspections that sincere glucosamine has four main characteristics: firstly, therapeutic properties. It is a drug, not a health supplement, with dual functions of treating and preventing systemic osteoarthritis; Secondly, there are no auxiliary materials. It is a pure natural marine medicine extracted from shrimp and crab shells through degreasing and hydrochloric acid hydrolysis, without any excipients or additives; The third is high purity. The purity of glucosamine hydrochloride exceeds 99%, providing sufficient nutrients for human bones and joints; The fourth is excellent quality. Participate in the formulation of national standards, consistent with the original research source of glucosamine (animal), while most of the market uses fermentation, enzymatic methods, and even chemical glucosamine substitutes. Meanwhile, sincere fish oil also has four main characteristics: firstly, high technology. The company's fish oil chromatography purification and separation technology has reached the international advanced level; The second is high purity. The purity and impurity control of EPA and DHA are at the leading level in the industry; The third is high benchmarking. The company's benchmark American original drug VASCEPA (EPA ≥ 96%) has been approved by the FDA and has been launched in China. More than 8000 clinical trials have demonstrated the effectiveness of the product in lowering blood lipids and reducing cardiovascular and cerebrovascular risks; The fourth is high quality. The company has established a strict international GMP certification system, and all product quality is stable and reliable.

  At the end of October, the "Elephant News" program team of Henan TV came to the company specifically to "explore new quality productivity" and made promotional reports to the whole country.

Event 10: Sincerely Joining Hands with China Post, Wen Shang Endorses Hometown Products

The launch of the company's super fish oil EPA soft capsules has met the great demand in the market. In October, the company signed contracts with China Post Group Zhejiang Branch and China Post Wenzhou Branch, and the "Sankang brand fish oil soft capsules" series products will be the first to enter the e-commerce platform "Youle.com" hosted by China Post. Wang Youkuan, Deputy General Manager of Wenzhou Postal Branch, stated that Wenzhou Postal Branch has always implemented diversified operations, utilizing the advantages of having branches throughout urban and rural areas and integrating the "four streams" to expand the market. In the future, both sides will jointly carry out in-depth exchanges in rural revitalization, vehicle logistics, postal publicity and other aspects, and achieve more fruitful results.

On the last day of 2024, the company, together with China Post Tianshengli International Trade (Zhejiang) Co., Ltd. and others, invited the presidents of more than 10 Wenzhou non local chambers of commerce, municipal chambers of commerce, and foreign chambers of commerce from Germany, including Sichuan, Heilongjiang, Jilin, Liaoning, Inner Mongolia, Jiangsu, Shandong, Hunan, etc., to participate in the grand event: promoting and recommending the characteristics and good products of their respective hometowns in the way of "endorsing my hometown", helping Wenzhou care for the health of entrepreneurs and promoting the "two health" cause of entrepreneurs' career development.