Financial Performance - In 2021, the company achieved revenue of RMB 7,443.8 million, a 45.0% increase compared to the previous year[8]. - The net profit attributable to shareholders was RMB 1,661.0 million, reflecting a growth of 41.7% year-on-year[8]. - The net cash flow from operating activities reached RMB 2,058.0 million, up 24.8% from the previous year[8]. - Total revenue for the year ended December 31, 2021, was approximately RMB 7,443.8 million, an increase of 45.0% compared to RMB 5,133.6 million for the year ended December 31, 2020[15]. - Gross profit for the year ended December 31, 2021, was approximately RMB 2,672.0 million, representing a 39.5% increase from RMB 1,916.1 million in 2020[15]. - Profit attributable to equity holders of the parent for the year ended December 31, 2021, was approximately RMB 1,661.0 million, up 41.7% from RMB 1,172.4 million in 2020[16]. - Net cash flow from operating activities for the year ended December 31, 2021, was approximately RMB 2,058.0 million, an increase of 24.8% compared to RMB 1,648.6 million in 2020[16]. - The company reported a diluted earnings per share of RMB 2.0537 for the year ended December 31, 2021, compared to RMB 1.4781 in 2020[17]. Asset and Equity Growth - By the end of 2021, total assets amounted to RMB 18,389.1 million, representing a 54.4% increase since the beginning of the year[8]. - The equity attributable to shareholders was RMB 10,129.2 million, which is a 14.2% increase from the start of the year[8]. - Total assets increased from RMB 4,143,664 thousand in 2017 to RMB 18,389,124 thousand in 2021, representing a growth of 343%[18]. - The equity attributable to the parent company grew from RMB 1,985,486 thousand in 2017 to RMB 10,129,241 thousand in 2021, marking a 410% increase[18]. - The leverage ratio improved significantly from 51.8% in 2017 to 44.0% in 2021, indicating a reduction in financial risk[18]. Client and Market Engagement - The company provided services to over 2,000 clients, including 800 new clients, and participated in 565 drug discovery projects in 2021[9]. - The company was involved in 77 domestic IND or NDA projects, with 56 projects submitted simultaneously in the US and other countries[9]. - In 2021, approximately 90% of the company's revenue came from a large, diverse, and loyal customer base, with 19.0% of revenue derived from the top 20 global pharmaceutical companies[29]. - Revenue from North American customers accounted for 64.2%, European customers (including the UK) contributed 15.6%, Chinese customers represented 17.1%, and other regions made up 3.1% of total revenue[29]. - The company introduced over 800 new customers in 2021, leading to a decrease in revenue concentration from the top 20 customers from 41.1% in 2020 to 33.8% in 2021[29]. Strategic Acquisitions and Expansion - The company expanded its international operations, acquiring Absorption Systems and Allergan Biologics Limited to enhance its capabilities in CGT services[11]. - The recent acquisition of a small molecule API commercialization facility in Cramlington, UK, aims to create a full industry chain service in chemical and production[11]. - The company plans to expand laboratory space in the UK and the US to meet growing business demands, including new laboratories in Boston and expansions in San Diego and Exton[12]. - The company completed the acquisition of Aesica Pharmaceuticals Limited for approximately GBP 55 million (about RMB 47.3 million), enhancing its small molecule CDMO service platform[40]. - The company acquired 100% equity in Zhongke Lingrui (Zhanjiang) Biotechnology Co., Ltd. for RMB 205.7 million, which has become a wholly-owned subsidiary[39]. Research and Development Focus - The company is focused on enhancing its capabilities in large molecule drugs and cell and gene therapy, aiming to become a global leader in multi-therapy drug development services[23]. - The company plans to launch a new CDMO platform for large molecule drug development and production, with an expected capacity of 70,000 square meters to be operational in 2023[27]. - The company is expanding its clinical research services, integrating platforms for both domestic and international clinical trials[27]. - The company is enhancing its capabilities in gene therapy and cell therapy, including the development of various analytical methods for DNA and RNA[28]. - The company is committed to providing high-level R&D services to assist partners in successfully developing new drugs, contributing to life sciences[19]. Sustainability and ESG Initiatives - The company has set sustainable development goals for 2021-2025, improving its ESG rating from BB in 2020 to BBB in 2021[13]. - The management team emphasized a focus on sustainability initiatives, aiming for a 15% reduction in carbon emissions by 2025[46]. - The company emphasizes environmental protection, health, safety, and intellectual property rights, ensuring robust protection for client IP, which has garnered widespread recognition and trust[51]. Corporate Governance and Management - The board proposed a final cash dividend of RMB 4.5 per share for the year ended December 31, 2021, totaling approximately RMB 357.4 million[16]. - The board of directors is committed to maintaining high levels of corporate governance, which is crucial for the group's development and safeguarding shareholder interests[85]. - The company has adhered to the corporate governance code during the relevant period from January 1, 2021, to December 31, 2021[85]. - The board consists of 11 members, including 9 males and 2 females, with diverse educational backgrounds and skills in various fields such as chemistry, business management, and law[87]. - The company emphasizes the importance of board diversity, considering factors like gender, age, and professional experience in its appointments[86]. Risk Management and Compliance - The company has established a risk management system aimed at improving risk prevention capabilities and promoting sustainable development[111]. - The internal audit system is designed to enhance the quality and efficiency of internal audits and improve the company's supervision and risk control mechanisms[111]. - The company has implemented a tiered management approach for comprehensive risk management, involving the board of directors, audit committee, and various functional departments[112]. - The company has conducted eight meetings of the supervisory board as of the report date[108]. - The company has established early warning and emergency response mechanisms to manage major risks and unexpected events[111]. Future Outlook and Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to 1.44 billion[46]. - The company plans to increase its workforce by 10% to support growth initiatives[46]. - The company aims to enhance shareholder value through a share buyback program, allocating 50 million for this initiative in 2022[73]. - The company plans to implement strategic market strategies tailored to the characteristics of the Chinese market to accumulate customer resources and enhance competitiveness[57]. - The company recognizes the risk of a potential decline in demand for drug development services, which could adversely affect operational performance if the global pharmaceutical market growth slows[58].
康龙化成(03759) - 2021 - 年度财报