Financial Performance - Revenue of the Group decreased by 1.25% or RMB25.7 million to RMB2,024.1 million for the Reporting Period (2020: RMB2,049.8 million) [11] - Gross profit increased by RMB91.2 million to RMB365.0 million, with gross profit margin rising from 13.4% in 2020 to 18.0% for the Reporting Period [12] - Net profit increased by 14.4% to RMB135.1 million for the Reporting Period (2020: RMB118.1 million) [14] - Basic and diluted earnings per share amounted to RMB0.08 for the Reporting Period (2020: RMB0.07) [15] - The Board resolved not to declare any final dividend for the Reporting Period (2020: Nil) [16] - The Group's financial performance was primarily driven by the increase in gross profit [14] - The gross profit for the year was RMB365.0 million, an increase of RMB91.2 million compared to RMB273.8 million in 2020, resulting in a gross profit margin of 18.0%, up from 13.4% in the previous year [29] - The net profit for the year was RMB135.1 million, showing growth compared to the previous year's profit of RMB118.1 million [36] Revenue Breakdown - Revenue from sales of Human Albumin Solution increased by approximately RMB84.3 million, offset by a decrease in revenue from antibiotics amounting to RMB110.0 million [11] - Revenue from human albumin solution was RMB1,973.3 million, representing an increase of approximately 4.5% or RMB84.3 million compared to 2020, driven by increased supply and sales volume [54] - Revenue from antibiotics decreased by RMB110.0 million compared to 2020, primarily due to reduced hospital inpatient numbers and the implementation of drug volume-based purchasing policies [52] - Sales of human albumin injection amounted to RMB1,973.3 million, an increase of approximately 4.5% compared to 2020 [29] - The sales revenue of antibiotic products decreased significantly to approximately RMB50.8 million, a decline of about 68.4% [29] Market and Product Development - The Company continues to focus on enhancing its product offerings and market presence [11] - The Group expects significant increases in purchase and sales volumes of human albumin in 2022, driven by recovery in plasma collection and new production capacity [32] - The aesthetic medicine market in China is projected to grow from RMB143.6 billion in 2020 to RMB318.5 billion in 2024, with a compound annual growth rate of 17.3% [38] - The non-surgical medical aesthetic market in China is expected to grow from RMB54.5 billion in 2020 to RMB98 billion in 2022, with a compound annual growth rate of 34.1% [40] - The Group initiated the development of the "Girl Needle" project with a planned investment of RMB88.5 million, targeting the non-surgical medical aesthetic market [40] - The Group's projects in the medical aesthetics industry chain have been launched in an orderly manner, anticipated to contribute new profit growth in the near future [43] Operational Efficiency - The Group recorded a cost of sales of RMB1,659.1 million, a decrease of RMB116.9 million or 6.6% compared to RMB1,776.0 million in 2020 [56] - Inventory balances decreased to RMB61.3 million from RMB242.6 million, a reduction of RMB181.3 million, attributed to increased sales of human albumin [73] - Average inventory turnover days decreased by 19 days from 52 days in 2020 to 33 days for the Reporting Period [74] - Trade receivables decreased to RMB213.6 million from RMB578.7 million, a decline of RMB365.1 million, due to enhanced credit term management [75] Cash Flow and Financial Stability - Net cash from operating activities for 2021 was RMB305.7 million, a substantial increase from RMB137.3 million in 2020 [92] - Cash and cash equivalents at the end of 2021 totaled RMB381.1 million, significantly up from RMB143.8 million at the end of 2020 [99] - The gearing ratio at the end of the reporting period was 54.5%, down from 84.8% in 2020, reflecting improved financial stability [88] - Total borrowings as of December 31, 2021, were RMB340.6 million, compared to RMB81.0 million in 2020, indicating a significant increase [86] Marketing and Distribution - The marketing network has expanded to cover key hospitals in major cities and further penetrated into second- and third-tier cities, enhancing market coverage [34] - The Group's marketing strategy focuses on enhancing distributor and promoter management to respond quickly to market changes [119] - The Group's marketing network has been expanded to include provincial, municipal, and county hospitals, improving market penetration [120] - Following the implementation of the "Two-Invoice System" in China, sales channels have become flatter, allowing manufacturers to directly reach end customers [134][135] Research and Development - R&D expenses incurred during the reporting period amounted to RMB25.5 million, reflecting the Group's commitment to innovation and product development [128][130] - The Group is developing "Sinco I," a new realgar-based chemical medicine for treating acute promyelocytic leukemia, currently in pilot experiments, with R&D expenses of RMB0.7 million incurred during the reporting period [128][129] - A collaboration with Beijing Nuokangda is underway to develop a polycaprolactone microsphere facial filler ("Girl Needle"), with total R&D expenses projected at RMB88.50 million and expected completion within 49 months [128][130] Corporate Governance and Compliance - The Group's corporate governance aims to safeguard the interests of investors, staff, suppliers, distributors, and other stakeholders [183] - The Group emphasizes compliance with laws and regulations, enhancing safety management, and actively assuming social responsibility [199] - The Group has complied with all relevant laws and regulations in the jurisdictions it operates in during the reporting period [164] Employee and Supplier Relations - The total staff costs for the Group were RMB 17.6 million in 2021, an increase from RMB 11.7 million in 2020, reflecting a growth of approximately 50.4% [141] - The Group maintains stable relationships with suppliers by providing access to the growing Chinese market, ensuring steady sales growth [151] - The Group's employee remuneration policy considers local market remuneration, industry standards, inflation, and corporate efficiency, with annual performance appraisals influencing salary reviews [141]
兴科蓉医药(06833) - 2021 - 年度财报