CMC(SH:603122)2022-03-21 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 1.19 billion, representing a year-on-year increase of 9.37% compared to CNY 1.09 billion in 2020[22]. - The net profit attributable to shareholders for 2021 was approximately CNY 80.23 million, an increase of 10.58% from CNY 72.55 million in 2020[22]. - The basic earnings per share for 2021 was CNY 0.27, reflecting a growth of 12.50% compared to CNY 0.24 in 2020[22]. - The weighted average return on equity increased to 10.61% in 2021, up from 9.06% in 2020, marking an increase of 1.55 percentage points[22]. - The company's total assets at the end of 2021 were approximately CNY 1.12 billion, a slight increase of 1.92% from CNY 1.10 billion at the end of 2020[22]. - The net assets attributable to shareholders increased to approximately CNY 795.83 million, representing a year-on-year growth of 10.99% from CNY 717.02 million in 2020[22]. - The company achieved a revenue of RMB 1,191.06 million and a net profit of RMB 80.23 million in 2021[33]. - The company's total revenue reached ¥1,190,736,504.22, representing a year-on-year increase of 9.37%[48]. - The gross margin for the overall business was 21.01%, an increase of 0.38 percentage points compared to the previous year[48]. - Revenue from in vitro diagnostic products was ¥1,096,777,502.85, with a gross margin of 20.04%, reflecting a year-on-year revenue increase of 17.18%[48]. Cash Flow and Dividends - The net cash flow from operating activities for 2021 was CNY 7.01 million, a significant decrease of 90.54% compared to CNY 74.15 million in 2020[22][23]. - The company plans to distribute cash dividends of 0.18 CNY per share, totaling approximately 71.65 million CNY, pending shareholder approval[131]. - The cash dividend policy stipulates that at least 10% of the distributable profit should be distributed as cash dividends if conditions are met[128]. - The company’s cash dividend distribution is subject to the condition of positive net profit and retained earnings[127]. - The company will prioritize cash dividends at a minimum of 80% for mature stages without significant capital expenditures[128]. Corporate Governance and Compliance - The audit report issued by KPMG was a standard unqualified opinion, ensuring the financial report's accuracy and completeness[5]. - The company is committed to maintaining transparency and has ensured that all board members attended the board meeting[4]. - The company has not reported any changes in shareholding for its directors and senior management during the reporting period[104]. - The company has no reported penalties from securities regulatory agencies in the past three years[115]. - The company has not disclosed any major related party transactions during the reporting period[179]. Market Position and Strategy - The company has established long-term cooperative relationships with over 1,000 domestic and foreign reagent and consumable manufacturers, providing nearly 17,000 items of centralized procurement services for in vitro diagnostic products[31]. - The company is positioned to benefit from the trend of hierarchical medical treatment, which is expected to increase demand for point-of-care testing (POCT) in grassroots hospitals[35]. - The company is expanding its product offerings from reagents to a broader range of medical consumables, leveraging its strong reputation and supplier relationships[31]. - The company aims to enhance its service capabilities and expand its customer base by promoting centralized procurement services for in-vitro diagnostic reagents[79]. - The company plans to leverage its 20 years of experience to increase the scale of centralized procurement and expand into the medical consumables sector[79]. Risks and Challenges - The company has outlined potential risks in the "Management Discussion and Analysis" section of the report[8]. - The report emphasizes the importance of understanding the differences between plans, forecasts, and commitments, highlighting investment risks[7]. - The company is addressing risks related to the ongoing COVID-19 pandemic, which could affect the consumption of diagnostic reagents[84]. - The company anticipates intensified market competition in the in vitro diagnostic industry, which may impact its operational performance[83]. Employee and Management Information - The company reported a total of 229 employees, with 194 in the parent company and 35 in major subsidiaries[123]. - The total pre-tax remuneration for the chairman was CNY 1.238 million[104]. - The total pre-tax remuneration for the general manager was CNY 5.157 million[104]. - The company conducted 42 offline training sessions and 28 online training sessions in 2021 to enhance employee skills[126]. - The company emphasizes a fair and efficient compensation system, with sales personnel receiving bonuses based on performance[125]. Shareholder Information - The largest shareholder, HeFu (Hong Kong) Holdings Limited, holds 218,937,885 shares, representing 73.34% of total shares[190]. - The second largest shareholder, Jingzhou Huikang Equity Investment Fund Partnership, holds 19,700,000 shares, accounting for 6.59%[190]. - The company has no major changes in controlling shareholders during the reporting period[195]. - The company has no actual controller due to the dispersed shareholding structure of HeFu Holdings[195]. Legal and Regulatory Matters - The company has no significant litigation or arbitration matters reported for the year[171]. - The company has not reported any significant violations or penalties against its management or controlling shareholders during the reporting period[178]. - The company is actively pursuing the collection of outstanding debts and has made progress in legal actions against defaulting clients[178]. Future Outlook - The company aims to achieve a revenue of 1.45 billion RMB and a net profit of 108 million RMB for the year 2022[83]. - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.8 billion, indicating a potential growth of 10% to 20%[106]. - The company plans to expand its marketing and service network nationwide through strategic partnerships, enhancing its technical service capabilities[80].