Bohui Innovation(300318)2022-04-27 16:00Financial Performance - The company reported a significant loss during the reporting period, primarily due to the suspension and renovation of its subsidiary, Zhongke Biological, leading to a substantial decline in revenue[5]. - The loss was exacerbated by increased external debt and financial expenses to support the construction of the blood product production base in Qujing, Yunnan[5]. - The company's operating revenue for 2021 was ¥714,748,462.45, a decrease of 3.24% compared to ¥738,717,388.06 in 2020[23]. - The net profit attributable to shareholders was -¥322,176,629.03, representing a significant decline of 4,393.41% from a profit of ¥7,503,976.45 in 2020[23]. - The net cash flow from operating activities was ¥887,777.88, down 98.97% from ¥86,137,577.29 in the previous year[23]. - The total assets at the end of 2021 amounted to ¥3,690,026,740.04, a slight decrease of 0.68% from ¥3,715,242,196.65 at the end of 2020[23]. - The net assets attributable to shareholders decreased by 25.02% to ¥974,752,736.01 from ¥1,299,959,538.30 in 2020[23]. - The company reported a basic and diluted earnings per share of -¥0.3944, a decline of 4,386.96% from ¥0.0092 in 2020[23]. - The company’s revenue from core business after deductions was ¥682,179,143.93, down from ¥723,174,605.61 in 2020[23]. - The company’s quarterly revenue showed a decline in the fourth quarter, with a revenue of ¥182,736,686.27 compared to previous quarters[25]. Research and Development - The company has increased its R&D expenditure, indicating a commitment to innovation despite the financial challenges faced[5]. - R&D expenses surged by 69.13% to ¥81.48 million in 2021, reflecting the company's intensified investment in new product development[89]. - R&D investment amounted to ¥90.91 million in 2021, representing 12.72% of operating revenue, up from 10.31% in 2020[92]. - The number of R&D personnel increased by 26.47% to 129 in 2021, with a notable rise in the number of PhD holders from 7 to 15[91]. - The company is developing a fully automated real-time fluorescence nucleic acid detection system, which is expected to enhance market competitiveness upon product registration[90]. - The company aims to achieve product registration for various new products, which will enhance its competitive position in the industry and improve economic benefits[90]. Market and Industry Outlook - The company operates in the in-vitro diagnostics (IVD) sector, which is projected to grow from a market size of 91.09 billion by 2027, with a CAGR of 4.8%[34]. - The Chinese in vitro diagnostic market is projected to reach ¥288.15 billion by 2030, becoming the largest consumer of in vitro diagnostic products globally[35]. - The blood products industry in China has 28 licensed manufacturers, with a total plasma collection of approximately 9,400 tons in 2021, reflecting a 13% increase from 2020[45]. - The demand for blood products in China exceeds 14,000 tons, indicating a significant supply-demand gap in the market[43]. - The company is focused on expanding its product line with various calibration solutions for blood and serum testing, set for registration renewal in January 2026[55]. Product Development and Sales - The company is set to launch a series of new diagnostic kits, including a combined test kit for rotavirus and enteric adenovirus, expected to be available by January 2024[54]. - A new atomic absorption spectrometer will be introduced in February 2023, designed for measuring lead and cadmium levels in human blood[54]. - The company plans to release multiple atomic absorption spectrometers by April 2024, which will measure various elements including copper, zinc, calcium, magnesium, and iron in human blood[54]. - The company’s blood products are primarily sourced from its plasma collection stations, which are regulated and licensed by provincial health authorities[61]. - The company’s biological products are subject to batch release management, ensuring quality control before market entry[61]. Operational Challenges and Risks - The management has indicated that the current losses are not sustainable and that there are no significant risks to the company's ongoing operations[5]. - Future plans and forward-looking statements in the report carry uncertainties and do not constitute a substantive commitment to investors[5]. - The company is actively addressing potential operational risks and has outlined corresponding measures in the management discussion section of the report[5]. - The company faces operational risks due to the recurring impacts of the COVID-19 pandemic on supply chains and sales[130]. Governance and Management - The board of directors consists of 7 members, including 3 independent directors, who actively participate in training and fulfill their duties according to regulations[146]. - The company has a total of 3 supervisors in the supervisory board, ensuring compliance and legality in the performance of duties by directors and senior management[147]. - The company maintains independence in personnel, assets, finance, institutions, and business from the controlling shareholder, ensuring autonomous operation[153]. - The company has established a good interactive relationship with investors, adhering to investor relations management regulations[151]. - The company has a structured decision-making process for determining the remuneration of directors and senior management, involving the nomination and compensation committee[177]. Future Outlook - The company has provided a positive outlook for 2022, projecting a revenue growth of 10% to 1.32 billion RMB[56]. - The company aims to enhance its international presence, with plans to enter two new overseas markets by the end of 2022[56]. - The company has set a future outlook with a revenue target of 1.5 billion yuan for the next fiscal year, indicating a projected growth rate of 25%[171]. - The company plans to enhance its digital marketing strategy, allocating an additional 30 million yuan to increase brand awareness and customer engagement[171].