万泰生物(603392) - 2021 Q4 - 年度财报

Glossary This section provides definitions of key terms used throughout the report Company Profile and Key Financial Indicators This section provides the company's basic information and a summary of its key financial performance and indicators over the past three years Company Basic Information This chapter provides the company's basic business registration information, contact details, stock listing information (Shanghai Stock Exchange: 603392), and details of the accounting firm and sponsor institution serving the company - The company's full Chinese name is "Beijing Wantai Biological Pharmacy Enterprise Co., Ltd.", with stock abbreviation "Wantai Bio" and stock code 603392, listed on the Shanghai Stock Exchange[14][18] - The domestic accounting firm engaged by the company is Rongcheng Certified Public Accountants (Special General Partnership), and the continuous supervision sponsor institution is Guojin Securities Co., Ltd[19][20] Key Financial Data and Indicators The company achieved explosive growth in 2021, with operating revenue increasing by 144.25% and net profit attributable to shareholders increasing by 198.59%, primarily driven by the increased sales of bivalent HPV vaccine and COVID-19 diagnostic reagents, leading to significant improvements in key profitability indicators including earnings per share and return on equity | Key Accounting Data | 2021 | 2020 | Period-on-Period Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,750,329,074.69 Yuan | 2,354,256,829.93 Yuan | 144.25 | 1,183,754,229.77 Yuan | | Net Profit Attributable to Shareholders of Listed Company | 2,021,467,667.66 Yuan | 676,997,342.76 Yuan | 198.59 | 208,864,316.07 Yuan | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 1,945,591,656.31 Yuan | 617,027,072.93 Yuan | 215.32 | 165,109,191.68 Yuan | | Net Cash Flow from Operating Activities | 1,681,947,606.84 Yuan | 468,206,484.40 Yuan | 259.23 | 272,680,549.14 Yuan | | (RMB Yuan) | 2021 Year-End | 2020 Year-End | Year-on-Year Change (%) | 2019 Year-End | | Net Assets Attributable to Shareholders of Listed Company | 4,466,287,176.41 Yuan | 2,553,665,040.75 Yuan | 74.90 | 1,558,819,597.99 Yuan | | Total Assets | 7,045,948,104.34 Yuan | 3,503,678,822.42 Yuan | 101.10 | 2,164,919,516.19 Yuan | | Key Financial Indicators | 2021 | 2020 | Period-on-Period Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 3.33 | 1.15 | 189.57 | 0.38 | | Diluted Earnings Per Share (Yuan/share) | 3.33 | 1.15 | 189.57 | 0.38 | | Weighted Average Return on Net Assets (%) | 55.15 | 32.10 | Increased by 23.05 percentage points | 14.36 | - The primary drivers of performance growth were increased revenue from bivalent HPV vaccine, diagnostic reagents, and active raw materials[23] | 2021 Quarterly Key Financial Data (RMB Yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 824,023,699.18 | 1,139,950,203.38 | 1,632,013,769.84 | 2,154,341,402.29 | | Net Profit Attributable to Shareholders of Listed Company | 289,216,473.07 | 432,292,034.03 | 466,692,496.68 | 833,266,663.88 | - Total non-recurring gains and losses for 2021 amounted to 75.88 million Yuan, primarily consisting of government subsidies totaling 84.97 million Yuan[28][29] Management Discussion and Analysis This section provides management's comprehensive discussion and analysis of the company's operational performance, industry trends, core competencies, and future outlook Discussion and Analysis of Operations In 2021, the company achieved operating revenue of 5.75 billion Yuan (up 144.25% year-on-year) and net profit attributable to shareholders of 2.02 billion Yuan (up 198.59% year-on-year), with core operational highlights including the nine-valent HPV vaccine entering Phase III clinical trials, the bivalent HPV vaccine receiving WHO prequalification, significant export sales of COVID-19 diagnostic reagents driving overseas revenue, an increase in bivalent HPV vaccine annual production capacity to 30 million doses, and continued strengthening of R&D collaborations with institutions like Xiamen University and GSK - R&D Progress: The nine-valent HPV vaccine Phase III clinical trials are progressing smoothly, the bivalent HPV vaccine has passed WHO prequalification, and the nasal spray COVID-19 vaccine has entered international multi-center Phase III clinical trials[35][36] - Marketing Achievements: Annual cumulative sales of the bivalent HPV vaccine exceeded 10 million doses, and COVID-19 antigen test kits were extensively sold to multiple overseas countries after obtaining EU CE self-test certification[39] - Production Capacity: Annual production capacity for the bivalent HPV vaccine increased to 30 million doses, and the commercial production facility for the nine-valent HPV vaccine is under construction and has entered the debugging and validation phase[41] - Quality Control: The bivalent HPV vaccine passed WHO PQ certification, becoming the first cervical cancer vaccine with full independent intellectual property rights from a developing country to receive international recognition[46] - External Cooperation: The company renewed a 10-year cooperation agreement with Xiamen University, and the collaborative R&D project with GSK for a new generation cervical cancer vaccine is progressing smoothly, with the second milestone payment of 11 million Euro received[51][53] Industry Conditions and Trends The company operates in the rapidly developing in-vitro diagnostics (IVD) and vaccine industries, with the global IVD market exceeding 111.7 billion US dollars in 2021 due to surging demand from the COVID-19 pandemic, and the Chinese market showing particularly significant growth, while the global vaccine market, traditionally dominated by four major players, has seen new opportunities emerge from the pandemic, and the Chinese vaccine market is entering a period of high growth driven by blockbuster domestic products like HPV vaccines - In-vitro Diagnostics (IVD) Industry: The global market size exceeded 111.7 billion US dollars in 2021, and the Chinese IVD market reached 89 billion Yuan in 2020, with a compound annual growth rate of 20.9%, transitioning from the introduction phase to the growth phase[56][57] - Vaccine Industry: The global vaccine market (excluding COVID-19 vaccines) is projected to grow to 56.1 billion US dollars by 2026, while the Chinese vaccine market (excluding COVID-19 vaccines) is expected to reach 207.1 billion Yuan by 2030, with domestic blockbuster products like HPV vaccines continuing to increase sales volume[59][60] Main Business Operations The company's business focuses on the R&D, production, and sales of in-vitro diagnostic reagents, instruments, and vaccines, with the in-vitro diagnostic business benefiting from domestic market recovery and significant exports of COVID-19 testing products, while the vaccine business centers on innovative vaccines, with the bivalent HPV vaccine already launched and WHO PQ certified, and both the nine-valent HPV vaccine and nasal spray COVID-19 vaccine in Phase III clinical trials, demonstrating a comprehensive product pipeline - The company's business is divided into two major areas: in-vitro diagnostics and vaccines[62] - The in-vitro diagnostic business achieved good economic returns due to the large-scale export of COVID-19 diagnostic reagents, and in the vaccine sector, the bivalent HPV vaccine has passed WHO PQ certification, while the nine-valent HPV vaccine is undergoing Phase III clinical trials[62] Analysis of Core Competencies The company's core competencies are evident in four key areas: technologically, it possesses a globally unique E. coli virus-like particle vaccine technology platform with R&D investment accounting for 11.86% of revenue; product-wise, it offers innovative products such as the world's first hepatitis E vaccine and the first domestically produced bivalent HPV vaccine; in terms of raw materials, it has independent R&D and production capabilities for core biological active raw materials; and marketing-wise, it has established a comprehensive network covering the entire nation and over 40 overseas countries and regions - Technical Advantages: The company possesses a globally unique E. coli virus-like particle vaccine development technology platform and collaborates deeply with institutions like Xiamen University, with R&D investment reaching 682 million Yuan in 2021, accounting for 11.86% of total operating revenue[64][65] - Product Advantages: The company has the world's exclusive hepatitis E vaccine and the first internationally recognized domestically produced bivalent HPV vaccine from a developing country, with pipeline products such as the nine-valent HPV vaccine and nasal spray COVID-19 vaccine progressing ahead of schedule[69][70] - Raw Material Advantages: The company possesses complete R&D and production capabilities for core biological active raw materials for diagnostic reagents, including antigens, antibodies, and enzymes, achieving self-sufficiency in raw materials and external sales[71] - Marketing Advantages: The domestic sales network covers the entire country, with products entering over 4,000 Grade II and above hospitals, and the international sales network covers over 40 countries and regions, with the bivalent HPV vaccine having reached approximately 2,500 county-level CDCs and about 18,000 community hospitals nationwide[72] Financial Analysis of Key Operating Performance In 2021, the company's revenue increased by 144.25% to 5.75 billion Yuan, and net profit attributable to shareholders grew by 198.59% to 2.02 billion Yuan, with the vaccine business being the primary growth engine, experiencing a revenue surge of 288.49% to 3.36 billion Yuan with a gross profit margin as high as 92.55%, while the in-vitro diagnostic business revenue increased by 58.97%; concurrently with revenue growth, selling expenses increased by 144.66% and R&D expenses rose by 116.91% due to increased vaccine clinical investments, and the company's asset scale doubled, mainly due to increased accounts receivable from vaccine sales and construction in progress | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,750,329,074.69 | 2,354,256,829.93 | 144.25 | | Operating Costs | 817,710,610.15 | 442,141,668.50 | 84.94 | | Selling Expenses | 1,690,472,536.76 | 690,944,300.43 | 144.66 | | Administrative Expenses | 182,201,196.59 | 116,368,575.54 | 56.57 | | R&D Expenses | 681,822,864.24 | 314,332,163.67 | 116.91 | | Net Cash Flow from Operating Activities | 1,681,947,606.84 | 468,206,484.40 | 259.23 | | Main Business by Industry | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Profit Margin (%) | Operating Revenue Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Vaccines | 3,362,692,490.04 | 250,599,358.84 | 92.55 | 288.49 | | In-vitro Diagnostics | 2,339,297,546.39 | 557,547,368.82 | 76.17 | 58.97 | | Key Product Production and Sales Volume | Unit | Production Volume | Sales Volume | Sales Volume Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | | Vaccines | Ten Thousand Doses | 1,668.20 | 1,022.78 | 351.44 | | Immunoassay Reagents | Ten Thousand Person-Doses | 54,953.47 | 56,382.32 | 47.21 | | Active Raw Materials | Ten Thousand Milligrams | 255.96 | 202.29 | 478.62 | | R&D Investment | Amount (Yuan) | | :--- | :--- | | Expensed R&D Investment for the Period | 681,822,864.24 | | Total R&D Investment | 681,822,864.24 | | Total R&D Investment as % of Operating Revenue | 11.86 | - Major Balance Sheet Changes: - Accounts Receivable: Increased by 226.32% year-on-year, primarily due to increased sales of bivalent HPV vaccine[93] - Inventories: Increased by 48.28% year-on-year, mainly due to increased stocking of raw and auxiliary materials for bivalent HPV vaccine and COVID-19 reagents[94] - Construction in Progress: Increased by 299.30% year-on-year, primarily due to expenditures on vaccine base construction in Xiamen and Beijing[95] Outlook on Future Development The company's strategic goal is to become a globally influential enterprise in the vaccine and diagnostic reagent fields, planning to continuously increase R&D investment, expand the international market for its bivalent HPV vaccine, and strive for the orderly launch of products such as the nine-valent HPV vaccine, nasal spray COVID-19 vaccine, new varicella vaccine, and 20-valent pneumonia vaccine within 5-10 years, while also addressing policy, competition, R&D, talent loss, and pandemic-related financial risks with corresponding strategies - Company Strategy: Adhere to technology innovation as the driving force, continuously increase R&D investment, and build Wantai Bio into a globally influential enterprise in the vaccine and diagnostic reagent industries[147] - Vaccine Pipeline Plan: Over the next 5-10 years, strive to gradually achieve the orderly launch of products such as varicella vaccine, nasal spray COVID-19 vaccine, nine-valent HPV vaccine, new varicella vaccine, and 20-valent pneumococcal conjugate vaccine[148] - Operating Plan: In 2022, the company will continue to promote the registration and application of multiple diagnostic reagents; in vaccines, it aims to complete Phase III clinical trials for the nasal spray COVID-19 vaccine and achieve conditional market approval, and initiate clinical trials for the 20-valent pneumonia vaccine[149] - Major Risks: - Policy Risk: Facing policy pressures such as centralized procurement, price linkage, and medical insurance cost control[155] - Competition Risk: Intense competition from domestic and international enterprises in the IVD and vaccine fields, with severe product homogenization[156] - R&D Risk: Product R&D cycles are long, investment is high, and there is a risk of failure[157] - Financial Risk: Risks of inventory impairment, accounts receivable bad debts, and unrecoverable R&D investment for the nasal spray COVID-19 vaccine[160] Corporate Governance This section details the company's corporate governance structure, compliance with regulations, and the independence of its operations Overview of Corporate Governance During the reporting period, the company strictly complied with the "Company Law," "Securities Law," and other regulations, continuously improving its corporate governance structure, establishing a clear, balanced governance framework comprising the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and management, while maintaining independence from its controlling shareholder in personnel, assets, finance, organization, and business, ensuring timely, accurate, and complete information disclosure - The company's corporate governance structure is sound, forming a governance framework where the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and management perform their respective duties, mutually check and balance, and operate efficiently[161] - The company maintains independence from its controlling shareholder in terms of personnel, assets, finance, organization, and business, with no instances of the controlling shareholder illegally occupying company funds[163] Directors, Supervisors, and Senior Management This chapter details the personal information, terms of office, shareholding changes, and remuneration of current and former directors, supervisors, and senior management during the reporting period, noting a change in the company's chairman from Zhong Shanshan to Qiu Zixin, and the completion of the re-election of the Board of Directors and Board of Supervisors | Name | Position | Total Pre-tax Remuneration from Company (Ten Thousand Yuan) | | :--- | :--- | :--- | | Qiu Zixin | Chairman, General Manager | 165.74 | | Ye Xiangzhong | Director, Deputy General Manager | 103.18 | | Li Yimin | Chief Engineer | 119.71 | | Li Shayan | Deputy General Manager | 129.13 | | Zhao Yiyong | Financial Controller | 94.13 | | Zhong Shanshan | Chairman (Resigned) | 0 | | Total | / | 975.19 | - During the reporting period, the company's chairman changed, with Mr. Zhong Shanshan resigning due to personal reasons and Mr. Qiu Zixin being elected as the new chairman[179] Environmental and Social Responsibility (ESG) This section outlines the company's commitment and actions regarding environmental protection and social responsibility initiatives Environmental Information (E) The company highly values environmental protection, with dedicated personnel responsible for environmental work, addressing major pollution sources including atmospheric pollutants from gas boilers, production and domestic wastewater, equipment noise, and solid waste through measures such as using low-nitrogen burners, building wastewater treatment systems, and compliant disposal of hazardous waste, ensuring all pollutants meet discharge standards, and regularly commissioning third-party environmental monitoring - The company's main environmental pollution sources are air (gas boilers), water (production and domestic wastewater), noise (power equipment), and solid waste (domestic waste, general industrial solid waste, and hazardous waste)[206][207][208] - The company has adopted effective pollution prevention and control measures, including using low-nitrogen burners, constructing wastewater treatment plants, and entrusting hazardous waste to qualified units for disposal, and conducts regular environmental monitoring to ensure compliance with discharge standards[209] Social Responsibility (S) The company actively fulfills its social responsibilities by partnering with organizations like the China Women's Development Foundation to donate 8.55 million Yuan worth of bivalent HPV vaccines to impoverished areas and conduct public education, while also safeguarding employees' legitimate rights and interests, providing comprehensive welfare benefits, consistently supporting public welfare initiatives such as voluntary blood donation, and contributing to poverty alleviation and rural revitalization through purchasing poverty alleviation products and donating funds - The company actively engages in social welfare, donating 8.55 million Yuan worth of bivalent HPV vaccines to impoverished areas in Guangxi, Jiangxi, Henan, and Sichuan, and conducting over 120 public education activities[212] - The company prioritizes employee rights, providing "five social insurances and one housing fund" along with supplementary medical insurance and critical illness insurance, and actively fosters harmonious labor relations[212] - The company actively participates in rural revitalization, donating 20 thousand Yuan in poverty alleviation funds to Sansui County, Guizhou Province, and purchasing 95.2 thousand Yuan worth of poverty alleviation products[214] Significant Matters This section covers important events and commitments, including the fulfillment of promises, related party transactions, and major contracts Fulfillment of Commitments During the reporting period, the company's actual controller, shareholders, and the company itself strictly fulfilled all commitments made during the initial public offering and refinancing processes, including share lock-up, avoidance of horizontal competition, shareholding and reduction intentions, share price stabilization plans, and measures to mitigate dilution of immediate returns, with no violations of commitments occurring - Controlling shareholder Yangshengtang and actual controller Zhong Shanshan committed not to transfer their pre-IPO shares for 36 months from the date of the company's stock listing[217][218] - Controlling shareholder Yangshengtang and actual controller Zhong Shanshan have issued a "Commitment Letter to Avoid Horizontal Competition," pledging that they and other controlled entities will not engage in businesses that compete with Wantai Bio[220] Significant Related Party Transactions During the reporting period, the company's related party transactions primarily involved routine operational purchases and sales of goods, provision and acceptance of services, and property leasing with related parties, in addition to technology transfer and licensing cost sharing with controlling shareholder Yangshengtang and its subsidiaries; the company's proposed non-public issuance of shares also involves related party transactions with controlling shareholder Yangshengtang, with all transactions adhering to market pricing principles - Routine related party transactions include procurement of raw materials and acceptance of technical services from Otsuka Electronics Co., Ltd. Japan, as well as sales of goods, technical services, and property leasing with parent company Yangshengtang and its subsidiaries[244] - The company entered into multiple technology transfer and licensing agreements with controlling shareholder Yangshengtang and its subsidiaries, including obtaining CHOZN® ZFN-modified cell line technology and transferring U-2 OS cell culture technology[251] - The company plans a non-public issuance of shares, with controlling shareholder Yangshengtang committing to subscribe for no more than 10% of the total issuance, constituting a related party transaction[268] Major Contracts and Their Performance During the reporting period, the company signed several major contracts, including a renewed 10-year "Cooperative Research Agreement" with Xiamen University, continued smooth progress with GSK on a new generation cervical cancer vaccine, receiving a second milestone payment of 11 million Euro, and the termination of a rotavirus vaccine cooperation agreement with Sanofi Pasteur by the latter party, which does not affect the 10 million US dollars advance payment already received; additionally, the company signed a licensing agreement to acquire the rights to Jiangsu Kunli PCV20 vaccine in mainland China - The company renewed a new 10-year "Cooperative Research Agreement" with Xiamen University, continuing to deepen industry-university-research collaboration[261][262] - In cooperation with GSK to develop a new generation cervical cancer vaccine, the company received the second milestone payment of 11 million Euro in June 2021[264] - The cooperation agreement with Sanofi Pasteur regarding a new rotavirus vaccine was terminated by the counterparty, but the 10 million US dollars advance payment already received does not need to be refunded[265] - The company signed an agreement to obtain exclusive production, manufacturing, and sales rights for Jiangsu Kunli PCV20 vaccine in mainland China, and has paid the initial licensing fee and milestone payments[266][267] Share Changes and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders and actual controller Changes in Share Capital During the reporting period, the company's total share capital increased from 433.6 million shares to 607.04 million shares due to the implementation of a profit distribution plan of "4 bonus shares for every 10 shares," while 64.12 million shares of initial public offering restricted shares became tradable on April 29, 2021, causing the proportion of unrestricted tradable shares to rise from 10.06% to 24.84% - Due to the implementation of a profit distribution plan of 4 bonus shares for every 10 shares, the company's total share capital increased from 433.6 million shares to 607.04 million shares[272][273] - During the reporting period, 64.12 million initial public offering restricted shares became tradable, increasing the proportion of unrestricted shares from 10.06% to 24.84%[271][273] Shareholders and Actual Controller Information As of the end of 2021, the company had 18,711 shareholders, with Yangshengtang Co., Ltd. as the controlling shareholder holding 56.98% of shares, and Mr. Zhong Shanshan as the actual controller, holding a combined 75.15% of the company's shares directly and indirectly; among the top ten shareholders, besides the controlling shareholder and actual controller, all others were natural person shareholders or institutional investors (Hong Kong Securities Clearing Company Limited) | Shareholder Name | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yangshengtang Co., Ltd. | 345,905,000 | 56.98 | Domestic Non-State-Owned Legal Person | | Zhong Shanshan | 110,320,725 | 18.17 | Domestic Natural Person | | Qiu Zixin | 22,092,000 | 3.64 | Domestic Natural Person | | Ding Jinglin | 11,456,645 | 1.89 | Domestic Natural Person | - The company's controlling shareholder is Yangshengtang Co., Ltd., and the actual controller is Mr. Zhong Shanshan[284][285] Preferred Shares Information This section confirms the company has no preferred shares related information during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares related information Bonds Information This section confirms the company has no bond-related information during the reporting period Bonds Information During the reporting period, the company had no information related to corporate bonds, company bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds Financial Report This section presents the company's audited financial statements, including the audit report, balance sheets, income statements, cash flow statements, and notes on significant accounting policies Audit Report Rongcheng Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements, concluding that the financial statements fairly present the company's financial position and operating results in all material respects, with "revenue recognition" and "inventory impairment provision" identified as key audit matters - The auditing firm issued a standard unqualified audit report[289] - Key audit matters are: - Operating Revenue: Due to operating revenue being a significant component of the income statement, its authenticity and cut-off may contain potential misstatements[291][292] - Inventory Impairment Provision: Given the significant amount and timeliness of inventory, the determination of its impairment provision involves significant management judgment[293] Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the year 2021, with data showing substantial growth in the company's asset size, revenue, and profit, reflecting strong operating performance during the reporting period - Provides consolidated and parent company balance sheets as of December 31, 2021[299][302] - Provides consolidated and parent company income statements for the year 2021[305][309] - Provides consolidated and parent company cash flow statements for the year 2021[311][313] - Provides consolidated and parent company statements of changes in owners' equity for the year 2021[316][322] Significant Accounting Policies and Estimates This chapter details the significant accounting policies and estimates followed by the company in preparing its financial statements, noting that during the reporting period, the company began implementing new lease standards and made corresponding adjustments to its accounting policies, and also changed its accounting estimates for drug R&D projects, clarifying the criteria for distinguishing between research and development phases, with this change effective from January 1, 2022 - The company began implementing new lease standards from January 1, 2021, and made adjustments to operating leases prior to the initial implementation date in accordance with transitional provisions, recognizing right-of-use assets and lease liabilities[395][396] - The company changed its accounting estimates for drug R&D, clarifying that the start of Phase III clinical trials is the commencement point for development stage expenditures, with prior expenditures accounted for as research stage expenditures; this change is applied prospectively from January 1, 2022[399] - Revenue recognition policy: Revenue from domestic sales is recognized upon customer acceptance of goods; revenue from export sales (FOB) is recognized when products are declared, bills of lading are obtained, and goods pass the ship's rail; technical service revenue is recognized upon completion of milestones[386] Notes to Consolidated Financial Statement Items This chapter provides detailed notes on key items in the consolidated financial statements, highlighting that the year-end balance of accounts receivable significantly increased to 2.38 billion Yuan, primarily consisting of amounts due within 1 year, and construction in progress rose to 924 million Yuan, mainly invested in vaccine production bases in Xiamen and Beijing; selling expenses and R&D expenses also substantially increased to 1.69 billion Yuan and 682 million Yuan respectively, aligning with business expansion and R&D investments - The year-end book balance of accounts receivable was 2.38 billion Yuan, with 98.47% being current (within 1 year) receivables[419][420] - The year-end balance of construction in progress was 924 million Yuan, with major projects including the R&D and Production Base - Bio-Port (466 million Yuan), Innovation Drug Base (125 million Yuan), and Nasal Spray COVID-19 Vaccine Industrialization Project (161 million Yuan)[460][461] - Selling expenses amounted to 1.69 billion Yuan, primarily comprising business expenses of 1.31 billion Yuan and employee compensation of 222 million Yuan[516] - R&D expenses amounted to 682 million Yuan, primarily consisting of testing and processing fees of 281 million Yuan, employee compensation of 141 million Yuan, and outsourced development expenses of 114 million Yuan[519]