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LIZHU Group released the 2019 Environmental, Social and Governance Report
Release time:
2020-04-15
Since the national launch of a new round of healthcare system reform in 2019, our country has gradually established a comprehensive basic medical security system over the past decade, with various key health indicators for residents generally better than the average level of middle and high-income countries. In 2019, the revised "Prohibition of Certain Goods Management Law of the People's Republic of China" was passed, and the State Council's medical reform deepening group released "Several Policy Measures for Further Deepening the Reform of the Medical and Health System," marking that the new medical reform is entering the "fast lane" and is "restarting" towards the goal of universal health coverage.
Since the national launch of a new round of healthcare system reform in 2009, China has gradually established a comprehensive basic medical security system over the past decade, with various key health indicators for residents generally better than the average level of middle and high-income countries. In 2019, the revised Drug Administration Law of the People's Republic of China was passed, and the State Council's deepening medical reform group issued several policy measures to further deepen the reform of the medical and health system, marking that the new medical reform is entering the "fast lane" and is "starting again" towards the goal of universal health coverage.
For 35 years since its establishment, Livzon has always focused on the pharmaceutical main business, striving for stable growth in achievements and pursuing sustainable high-quality development, continuously providing positive returns to shareholders. In 2019, the company implemented the management policy of "reform, responsibility, innovation, and development," and carried out three major strategies of "talent, products, and market," emphasizing adaptation to the changes of the times, continuously enhancing the company's comprehensive capabilities, and providing high-quality and safe specialty drugs to the world. At the same time, Livzon is committed to building a healthy community for all during its business development process, valuing environmental benefits, safeguarding employee rights, actively investing in community construction, and striving to promote social sustainable development.
In 2019, Livzon's profit growth met expectations, and the operating results were gratifying, providing strong support for our continued commitment to social responsibility in serving human life and health. In 2019, the company achieved operating revenue of RMB 9,384.70 million, a year-on-year increase of 5.91%; achieved net profit of RMB 1,461.58 million, a year-on-year increase of 23.68%; achieved net profit attributable to shareholders of the company of RMB 1,302.88 million, a year-on-year increase of 20.39%; if excluding non-recurring gains and losses, the net profit attributable to shareholders of the company from the main business in 2019 was RMB 1,191.54 million, a year-on-year increase of 25.79%.
At the same time, Livzon also pays attention to shareholder returns and the protection of investor rights. After implementing a high cash dividend plan for the past five years, with cumulative cash dividends of nearly RMB 2,410.62 million, Livzon formulated a three-year (2019-2021) shareholder return plan in 2019, clearly stating that during 2019-2021, under the condition that the company can implement cash dividends and meets the normal production and operation capital needs, the company will distribute profits in cash each year not less than 80% of the distributable profits achieved in that year, thus establishing a medium- and long-term stable shareholder return mechanism.
1. Universal Health. "Co-building and sharing, universal health" is the strategic theme for building a healthy China, and Livzon's business development goals are highly aligned with it. Livzon continues to promote high-quality products to major markets around the world. Since 2017, more than 12% of the main business revenue has come from overseas each year, showing an international trend in revenue structure. Livzon's raw materials have successfully entered the ranks of major global API suppliers, with particularly remarkable development and operational results in the European and American markets. At the same time, the group actively participates in the negotiation and access work for the medical insurance catalog, with the reimbursement scope of esomeprazole enteric-coated tablets for reflux esophagitis increased, and the hydrochloride of paliperidone tablets entering the regular medical insurance catalog, and the injectable esomeprazole sodium entering the medical insurance negotiation catalog, committed to providing high-quality and affordable pharmaceutical products.
2. Talent Development. "Innovative development" is the strategic direction of Livzon's development, and talent has also become a core factor in Livzon's business development. Since implementing the 2015 restricted A-share incentive plan and the 2018 stock option incentive plan, the company launched a medium- and long-term partnership stockholding plan (draft) at the end of 2019 to establish a long-term incentive mechanism for senior management and core technical teams to hold shares, effectively promoting and facilitating their transition from "managers" to "partners," and promoting the company's long-term stable development and enhancing the overall value of the company.
3. Environmental Protection. "Green mountains and clear waters are as valuable as mountains of gold and silver," Livzon values environmental protection during its business operations, continuously investing funds to improve processes and update equipment to achieve energy conservation and emission reduction goals. In 2019, the group invested approximately RMB 102.59 million in the transformation and operation maintenance of environmental protection equipment, continuously reducing pollutant emissions during the production process through measures such as adding catalytic combustion (RTO) equipment, reducing environmental impact, and comprehensively improving the efficiency of energy and resource use.
4. Public Welfare and Charity. Livzon combines its main business with active investment in health poverty alleviation and industrial assistance, enthusiastically engaging in public welfare, and long-term consciously fulfilling humanitarian obligations such as sending warmth to disaster areas, giving back to society through practical actions. The "chronic disease poverty alleviation" project initiated by Livzon helps economically disadvantaged patients with chronic diseases through drug donations; we have developed and constructed astragalus planting bases in impoverished areas of Shanxi and Shaanxi provinces in China, providing planting technology and long-term support to promote local economic development and improve residents' income levels.
In the future, Livzon will continue to shoulder the mission of "Livzon World, Lifelong Health," with the development concept of "starting from scratch, re-entrepreneurship," balancing environmental and social benefits, safeguarding the rights and interests of all stakeholders, and working with outstanding pharmaceutical companies at home and abroad to jointly improve global healthcare levels, and will always be committed to the health cause of human life.
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