BHC(SH:600721)2021-03-30 16:00Financial Performance - The company's net profit for 2020 was -339,536,904.66 RMB, with a cumulative distributable profit of -2,018,041,645.09 RMB, leading to no cash dividend distribution for the year [4]. - The operating revenue for 2020 was 84,530,414.24 RMB, a decrease of 67.74% compared to 262,017,718.33 RMB in 2019 [17]. - The net profit attributable to shareholders for 2020 was -320 million RMB, indicating a shift from profit to loss primarily due to revenue decline and rising costs [40]. - Basic earnings per share for 2020 was -0.8202 CNY, a decrease of 1,053.72% compared to 0.0860 CNY in 2019 [19]. - The weighted average return on equity decreased by 45.26 percentage points to -41.58% in 2020 from 3.68% in 2019 [19]. - The company reported a gross loss of CNY 13.69 million for 2020 [185]. Assets and Liabilities - Total assets decreased by 24.51% to 974,684,317.02 RMB from 1,291,205,717.74 RMB in 2019 [18]. - The net asset attributable to shareholders decreased by 35.13% to 619,263,889.76 RMB from 954,695,566.45 RMB in 2019 [18]. - The company's current assets decreased to CNY 440,459,673.45 from CNY 599,439,079.01, reflecting a reduction of approximately 26.6% [197]. - Total liabilities increased slightly to CNY 350,519,430.13 from CNY 336,510,151.29, indicating a growth of about 4.0% year-over-year [198]. - The total liabilities to total assets ratio stands at approximately 36.0%, indicating a moderate level of leverage [198]. Cash Flow - The company reported a net cash flow from operating activities of -23,281,213.51 RMB, a decline of 242.60% compared to -6,795,414.33 RMB in 2019 [18]. - The company reported a net cash flow from investing activities of ¥33,625,074.48, a significant increase of 176.13% compared to -¥44,167,040.78 in the previous period [75]. - The net cash flow from financing activities decreased compared to the previous year, primarily due to repayment of bank loans [58]. Research and Development - The company has a strong R&D capability with over 700 professional service team members, including 158 with doctoral or master's degrees [37]. - The total R&D expenditure for the year was CNY 6,114,512.78, accounting for 7.23% of the company's revenue [71]. - R&D expenses increased to CNY 6.11 million, reflecting a focus on innovative drug development [57]. - The company is focusing on building a proprietary technology pipeline for innovative drugs, particularly in niche areas, to meet diverse market demands [91]. Market and Industry Trends - The CRO industry is expected to grow significantly, with global outsourcing of pharmaceutical R&D projected to increase from 39.5% in 2019 to 49.3% by 2023 [35]. - The Chinese pharmaceutical R&D service market is forecasted to grow from approximately 20.1 billion USD in 2019 to 43.2 billion USD by 2023, with a compound annual growth rate of about 21.1% [35]. - The pharmaceutical industry is experiencing a shift towards innovative drug development, with over 3,000 companies globally engaged in new drug research, indicating a growing market for CRO services in China [87]. Corporate Governance and Compliance - The company received a standard unqualified audit report from Sigma Accounting Firm [6]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties [5]. - The company has not violated any decision-making procedures for providing guarantees [5]. - The company has committed to avoiding any business activities that compete with its listed company and its subsidiaries [109]. Shareholder and Equity Information - The total share capital at the end of 2020 was 375,134,355 shares, a decrease of 6.31% from 400,386,394 shares in 2019 [18]. - The company did not distribute any cash dividends or stock bonuses in the years 2018, 2019, and 2020, with net losses of RMB 675.29 million, RMB 34.38 million, and RMB 319.77 million respectively [107]. - The total number of ordinary shareholders increased from 9,588 to 10,065 during the reporting period, representing a growth of approximately 5% [140]. Employee and Management Information - The company employed a total of 770 staff, with 42 in the parent company and 728 in major subsidiaries [163]. - The technical personnel accounted for 620 out of the total 770 employees, indicating a strong focus on technical expertise [163]. - The total pre-tax remuneration for the board members during the reporting period amounted to 452.99 million yuan [154]. Risks and Challenges - The company is at risk of delisting as it reported a negative net profit and operating revenue below 100 million RMB, triggering the delisting risk warning as per the Shanghai Stock Exchange regulations [5]. - The company faces competition from both established international players and emerging domestic CRO firms, necessitating a strategic response to maintain its market position [101].