CABIO(SH:688089)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 323,460,668.81, representing a 3.82% increase compared to CNY 311,547,812.06 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 130,585,376.79, which is a 10.50% increase from CNY 118,173,427.66 in 2019[20]. - The net cash flow from operating activities for 2020 was CNY 145,882,192.43, up by 10.56% from CNY 131,947,334.97 in 2019[20]. - The company's total assets at the end of 2020 were CNY 1,382,820,690.79, reflecting a 6.55% increase from CNY 1,297,831,523.59 at the end of 2019[20]. - The basic earnings per share for 2020 decreased to CNY 1.09, down 16.79% from CNY 1.31 in 2019[21]. - The company's main business revenue for the reporting period was CNY 323,255,196.35, with a gross profit margin of 55.02%, reflecting a year-on-year increase of 3.83%[130]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 25% year-over-year growth[171]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 6.30% in 2020, up from 6.01% in 2019[21]. - The company achieved a total R&D investment of ¥20,384,052.34, representing an 8.86% increase compared to the previous year[64]. - The company filed 33 new invention patents during the year, bringing the total number of patents to 176, with 60 patents granted[62]. - The company is focusing on the development of microbial oil production technology, which is expected to enhance resource efficiency and reduce waste emissions[69]. - The company is actively developing new products, including algal DHA and natural β-carotene, to enhance its competitive edge in the market[87]. - The company plans to strengthen its research and development efforts by collaborating with leading universities and research institutions to advance its technology platform[150]. Market and Product Development - The company’s main business includes the R&D, production, and sales of polyunsaturated fatty acids and natural β-carotene, widely used in infant formula and dietary supplements[29]. - The global dietary supplement market exceeds $100 billion, with North America and Europe accounting for approximately 70% of consumption[40]. - The company is exploring the application of sialic acid in treating metabolic disorders related to Alzheimer's disease, showcasing its research in neuroprotective solutions[59]. - The company aims to enhance its core technology innovation by focusing on high-throughput screening, intelligent fermentation control, and product purification, which will improve production efficiency and reduce costs[146]. - The company plans to expand its product application areas, targeting human nutrition, animal nutrition, cosmetics, and pharmaceuticals, to create a comprehensive application system[147]. Corporate Governance and Compliance - The company emphasizes the importance of accurate financial reporting and governance practices[4]. - The company has received a standard unqualified audit report from Da Xin Certified Public Accountants[4]. - The company has a clear and compliant decision-making process for profit distribution, ensuring transparency and accountability in the distribution of dividends[154]. - The company has maintained a robust compliance framework for its dividend policy, ensuring that all procedures are followed diligently[154]. - The company has committed to ensuring that related party transactions with Jia Biyou are conducted fairly and in accordance with market standards to protect the interests of shareholders, especially minority shareholders[182]. Risk Factors - The report highlights various risk factors including core competitiveness risk, operational risk, industry risk, and macroeconomic risk[4]. - The company faced risks related to raw material and energy price fluctuations, which could adversely affect production costs and profitability[90]. - The company is exposed to potential risks from the agreement with DSM, including the possibility of reduced net profit if DSM fails to comply with the contract[89]. Shareholder Relations and Dividends - The company plans to distribute a cash dividend of 3.30 CNY per 10 shares, totaling approximately 39.6 million CNY, which represents 30.32% of the net profit attributable to shareholders for 2020[5]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[156]. - The company has committed to a stable and continuous cash dividend policy to ensure reasonable returns for investors[163]. - The company will enhance its investor relations management to ensure timely, accurate, and complete information disclosure, thereby maintaining investor trust[150]. Strategic Partnerships and Collaborations - The company has formed long-term partnerships with major clients such as Cargill and Feihe, enhancing its brand reputation and customer base[81]. - The company collaborates with well-known enterprises in the infant formula sector, distributing products to over 30 countries and regions[45]. - The company invested a total of $3.06 million in the second phase of its investment in Pharmaco, holding a 14.46% stake, to develop a global supply chain[84]. Future Outlook - The company anticipates a significant increase in consumer demand for preventive health foods, with 45% of European consumers increasing nutritional elements in their diets due to the pandemic[145]. - The company plans to continue investing in R&D to maintain its competitive edge in the nutrition and health food industry[54]. - The company is actively involved in national and provincial technology projects, enhancing its competitive edge in the industry[76].