VCANBIO(600645)2021-04-23 16:00Financial Performance - In 2020, the company's operating revenue was approximately RMB 1.32 billion, a decrease of 4.90% compared to RMB 1.39 billion in 2019[25]. - The net profit attributable to shareholders of the listed company for 2020 was a loss of approximately RMB 126.86 million, a decline of 355.29% compared to a profit of RMB 49.69 million in 2019[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of approximately RMB 211.75 million, a decrease of 844.60% compared to a profit of RMB 28.44 million in 2019[25]. - Basic earnings per share for 2020 was -0.27 yuan, a decrease of 345.45% compared to 2019[26]. - Net profit attributable to shareholders decreased by 355.29% year-on-year, primarily due to a goodwill impairment loss of 265 million yuan[26]. - The company reported a cumulative undistributed profit of approximately RMB -227 million as of December 31, 2020, leading to no profit distribution to shareholders[6]. - The company has indicated that it will not implement capital reserve transfers to increase share capital or other forms of distribution due to the negative cumulative undistributed profit[6]. - The company reported a net profit margin of 0% for the years 2018, 2019, and 2020, indicating no profit distribution to shareholders[121]. Cash Flow and Investments - The net cash flow from operating activities for 2020 was approximately RMB 244.35 million, an increase of 1.19% compared to RMB 241.49 million in 2019[25]. - The company’s cash and cash equivalents increased by 67.85% compared to the beginning of the period, primarily due to the maturity of structured deposits[50]. - The company reported a significant improvement in cash flow from investment activities, with a net cash inflow of 308.09 million RMB, compared to a net outflow of 555.14 million RMB in the previous year[68]. - Cash flow from investing activities saw a significant increase of 155.50%, totaling ¥308,090,854.44, primarily due to the maturity of structured deposits[85]. - The company recognized an investment income of ¥43,300,143.33 from its subsidiary's investment in Aceso Biotech Venture Fund[87]. Business Operations and Strategy - The company operates in the "precision medicine" industry, focusing on cell detection preparation and storage, in vitro diagnostic materials, and gene testing services[36]. - The company has established cell resource banks across over 2/3 of the regions and 3/4 of the population in China, providing extensive coverage for stem cell detection and preparation services[36]. - The company has diversified its business model to include both newborn and adult cell storage services, catering to health-conscious adults and research institutions[36]. - The company aims to enhance its core businesses in cell storage and in vitro diagnostic reagents, focusing on expanding product lines and increasing R&D investment[111]. - The company will continue to enrich its cell storage offerings, including various types of stem cells and immune cells, while expanding its diagnostic testing products[111]. - The company is committed to promoting the clinical application of cell therapies and advancing related product development in collaboration with top-tier hospitals[111]. Research and Development - The company continued to invest in R&D, with R&D expenses increasing by 4.36% to 114.43 million RMB, reflecting a commitment to sustainable business growth[68]. - The company launched 18 self-developed projects in the in vitro diagnostic business, obtaining 19 registration certificates, indicating a strong focus on innovation[67]. - The number of R&D personnel increased to 174, accounting for 7.79% of the total workforce[83]. - The company completed 18 out of 42 major stem cell research and product development projects during the reporting period[84]. Market and Industry Trends - The domestic in vitro diagnostic industry is experiencing significant growth, driven by factors such as population aging and rising cancer incidence[43]. - The government has been actively promoting policies to support the development of the stem cell industry, indicating a favorable environment for growth[43]. - The "14th Five-Year Plan" emphasizes biotechnology as a strategic emerging industry, aiming to strengthen the bio-economy and optimize resource allocation for innovation[110]. Risk Factors and Compliance - The company has detailed risk factors that it may face in the report, which investors should review carefully[8]. - The company faces potential risks from industry policies, technology advancements, talent retention, and currency fluctuations, which could impact its operations and financial performance[117]. - The company has established a commitment to fair and transparent governance practices in all related transactions[139]. Environmental Responsibility - The company has implemented a self-monitoring plan for environmental emissions, ensuring compliance with pollution discharge standards[186]. - The company has established an emergency response plan for environmental incidents to minimize potential damage and ensure public safety[185]. - The company’s wastewater discharge met the standards with COD at 96 mg/L, significantly below the limit of 500 mg/L, and no exceedances reported[182]. Shareholder Relations and Commitments - The company has not distributed profits for 2019 and 2020 due to accumulated losses, with a net profit of 6.33 million yuan in 2020[120]. - The company has committed to not engaging in any business that competes with its subsidiaries, ensuring no direct or indirect competition[126]. - The company has established a commitment to avoid any illegal occupation of funds or assets, ensuring compliance with relevant laws and regulations[142].