SHENGDA BIO-PHARM(SH:603079)2022-04-28 16:00Financial Performance - The company achieved a net profit of ¥39,592,789.63 in 2021, with a distributable profit of ¥339,980,794.17 after accounting for reserves and previous distributions[6]. - The company's operating revenue for 2021 was approximately ¥789.73 million, a decrease of 8.95% compared to ¥867.31 million in 2020[24]. - The net profit attributable to shareholders of the listed company was approximately ¥75.76 million, down 61.63% from ¥197.44 million in the previous year[24]. - The basic earnings per share for 2021 was ¥0.44, a decrease of 62.39% from ¥1.17 in 2020[25]. - The total revenue for the company was approximately $788.50 million, a decrease of 8.34% compared to the previous year[63]. - The gross profit margin for the main business was 28.84%, which represents a decrease of 26.03 percentage points year-over-year[63]. - The company reported a significant decline in the sales revenue of its main product, biotin, which was the primary reason for the decrease in financial metrics[25]. - The company's revenue for the reporting period was 789.73 million RMB, a decrease of 8.95% compared to the previous year, primarily due to a decline in biotin product sales prices[57][61]. Dividend and Profit Distribution - A cash dividend of ¥1.40 per 10 shares (including tax) is proposed for distribution to shareholders, pending approval at the annual general meeting[6]. - In 2021, the company distributed a total profit of 59,916,135.30 CNY, with a cash dividend of 3.50 CNY per 10 shares[158]. - The company has a three-year shareholder dividend return plan for 2021-2023, which was approved in April 2021[157]. Risks and Challenges - The company faces significant risks including product price fluctuations, raw material price volatility, high customer concentration, exchange rate fluctuations, and external shocks from the pandemic[9]. - The global commodity price surge has increased production costs, impacting the overall profitability of the industry[39]. - The company is expected to face competitive pressure due to complex changes in the vitamin supply landscape in 2022[40]. - The company faces risks related to product price fluctuations due to market supply changes and raw material price volatility, which it aims to mitigate through increased environmental investment and capacity supply[122]. Market and Sales Performance - The quarterly revenue for Q4 2021 was approximately ¥210.02 million, showing a slight recovery compared to previous quarters[28]. - The sales volume of biotin increased by 30.02% year-on-year, and folic acid sales volume increased by 20.61%, marking the highest sales growth in five years[36]. - The lactic acid bacterium sales volume grew by 43.15%, with sales revenue increasing by 32.77%, while lysine sales volume surged by 90.47% and sales revenue rose by 44.93%[36]. - The domestic market achieved a main business revenue of 433 million RMB, an increase of 15.83% year-on-year, while the international market revenue was 355 million RMB, a decrease of 26.93%[57]. Research and Development - R&D investment increased by over 11% year-on-year, focusing on green catalytic technology and synthetic biology technology[37]. - The company invested ¥39,643,000 in R&D during the reporting period, with 42 ongoing projects and 6 patents granted, including 4 invention patents[92]. - The total R&D investment accounted for 5.02% of operating revenue, with no capitalized R&D expenditures[73]. - The company is focusing on technological innovation through collaboration with universities and research institutions, enhancing its competitive edge in the industry[91]. Supply Chain and Operational Efficiency - The company optimized its supply chain and production capacity, significantly increasing market share and brand influence despite challenges from raw material supply and price hikes[36]. - The company has adopted a "sales-driven production" model, optimizing procurement and production processes through digital transformation[50]. - The company is leveraging a digital supply chain and business intelligence systems to enhance decision-making and operational efficiency[51]. - The company reported a 24% reduction in logistics costs for Shengda Bio and a 13% reduction for New Silver Elephant through digital management and logistics control[37]. Environmental Responsibility - The company has established a robust framework for environmental responsibility, aligning with regulatory requirements and enhancing its operational practices[168]. - The company reported wastewater emissions of 98,519 tons in 2021, an increase from 87,334 tons in 2020, indicating a rise of approximately 13.4%[168]. - The company has implemented a comprehensive self-assessment and evaluation of its governance status, leading to improved operational awareness and governance levels[166]. - The company has established a complete wastewater treatment system that meets standards before discharging into the county's wastewater treatment plant[191]. Governance and Management - The company has maintained a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability in operations[128]. - The independent directors have played a significant role in overseeing major company decisions, contributing to sound corporate governance practices[128]. - The company has established a performance evaluation and incentive mechanism for senior management, promoting transparency and fairness in management practices[128]. - The company has committed to timely and accurate information disclosure, ensuring all shareholders have equal access to company information[129].