Endovastec(SH:688016)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥470.25 million, representing a 40.91% increase compared to ¥333.73 million in 2019[27]. - The net profit attributable to shareholders for 2020 was approximately ¥214.61 million, a 51.40% increase from ¥141.76 million in 2019[27]. - The net profit after deducting non-recurring gains and losses was approximately ¥190.93 million, reflecting a 57.37% increase from ¥121.32 million in 2019[27]. - The company's total assets at the end of 2020 were approximately ¥1.38 billion, a 19.07% increase from ¥1.16 billion at the end of 2019[27]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.23 billion, a 15.76% increase from ¥1.07 billion at the end of 2019[27]. - The basic earnings per share for 2020 were ¥2.98, up 29.00% from ¥2.31 in 2019[27]. - The company generated a net cash flow from operating activities of approximately ¥217.44 million in 2020, a 51.84% increase from ¥143.20 million in 2019[27]. - Operating profit reached 249.93 million yuan, reflecting a growth of 52.15% compared to the previous year[88]. - The company achieved total operating revenue of ¥470,252,334.82, representing a year-on-year growth of 40.91%[109]. - The net cash flow from operating activities increased by 51.84% to ¥217,439,812.91 compared to ¥143,202,857.00 in the same period last year, driven by growth in business scale and sales revenue[128]. Research and Development - The R&D investment as a percentage of operating revenue was 17.72% in 2020, a slight decrease of 0.47 percentage points from 18.19% in 2019[27]. - The company achieved a total R&D investment of ¥83,318,885.43, representing a 37.29% increase compared to the previous year[70]. - The company submitted a total of 64 patent applications during the reporting period, with 15 patents granted, bringing the total to 111 authorized patents[69]. - The company has developed a unique mechanical transmission design for its balloon dilation catheter, enhancing overall push performance and passability[68]. - The company has a robust R&D mechanism that focuses on market demand, with new product development cycles ranging from 5 to 10 years[45]. - The company increased its R&D personnel to 157, representing 31.27% of total employees, up from 24.55% in the previous year[79]. - The company’s innovative technologies include the world's first approved branched product for treating aortic dissection, ensuring safety while isolating lesions[66]. - Research and development expenses increased by 47.07%, amounting to ¥73,005,039.43[110]. Market Position and Strategy - The company aims to become a global leader in the field of aortic and peripheral vascular intervention technology[37]. - The company has successfully expanded its product offerings, including drug-coated balloon dilation catheters and peripheral vascular stent systems[39]. - The company ranks second in the aortic vascular interventional medical device market in China, with the highest market share among domestic brands[61]. - The company has developed the first domestically produced abdominal aortic stent and the only approved intraoperative stent system for thoracic aortic dissection surgery in China[36]. - The company has established a comprehensive procurement, production, research and development, sales, and service system to enhance operational efficiency[42]. - The company’s market expansion strategy includes participation in academic promotion meetings and industry exhibitions to enhance product visibility[44]. - The company aims to enhance its competitive advantage in the aortic vascular intervention field while expanding its peripheral vascular intervention product line[147]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the report[4]. - The company faces risks related to technological updates and the potential loss of core technical personnel, which could impact its competitive advantage[100][101]. - The competitive landscape is intensifying with the entry of numerous domestic and international players, potentially affecting market share and profit margins[101]. - The company is exposed to risks from fluctuations in raw material prices and potential supply chain disruptions due to reliance on foreign suppliers[105]. Corporate Governance and Compliance - The company has reported a standard unqualified audit opinion from KPMG Huazhen[6]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has stated that there are no violations of decision-making procedures for external guarantees[10]. - The company has ensured that all board members attended the board meeting, affirming the integrity of the report[5]. - The company has not disclosed any special arrangements for corporate governance[10]. Dividend Policy - The company plans to distribute a cash dividend of RMB 9.00 per 10 shares for the year 2020, totaling RMB 64,780,332.30, which is 30.18% of the net profit attributable to ordinary shareholders[163]. - The company maintains a cash dividend policy where at least 20% of distributable profits must be allocated as cash dividends if conditions are met[163]. - The company has committed to a stable profit distribution policy, emphasizing reasonable returns to investors while ensuring sustainable development[159]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[164]. Employee and Operational Metrics - The workforce increased to 502 employees, a net growth of 115 people or 29.72% year-on-year, with R&D personnel making up 31.27% of the total[95]. - The company reported a 66.39% increase in employee compensation payable, rising to ¥46,600,713.82 from ¥28,006,973.29, due to increased salary accruals[130]. Product Development and Innovation - The company has initiated the development of several products in the peripheral venous field, including the iliac vein stent system, which is currently in clinical stages[65]. - The company aims to complete its product layout in the peripheral venous field by obtaining product registration certificates for related products between 2023 and 2025[65]. - The company has developed the Castor branched stent system, the first of its kind approved for treating aortic arch lesions, and the Minos abdominal aortic stent, which has the smallest delivery system diameter in the domestic market[62].