SINOMED(SH:688108)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥327.42 million, a decrease of 24.89% compared to ¥435.91 million in 2019[21]. - The net profit attributable to shareholders of the listed company was approximately ¥22.49 million, down 75.02% from ¥90.04 million in the previous year[21]. - The net cash flow from operating activities was approximately ¥70.51 million, a decline of 48.76% from ¥137.61 million in 2019[21]. - The company's revenue for 2020 was ¥327,419,971.68, a decrease of 24.89% compared to the previous year, primarily due to a significant decline in sales of coronary stent products caused by the COVID-19 pandemic and centralized procurement policies[23]. - Net profit attributable to shareholders was ¥22,493,245.66, down 75.02% year-on-year, mainly due to decreased sales volume and increased R&D expenses[24]. - Basic and diluted earnings per share were both ¥0.05, representing a decline of 79.17% compared to the previous year, primarily due to the substantial drop in net profit[26]. - The cash flow from operating activities was ¥70,512,754.42, a decrease of 48.76% year-on-year, attributed to a significant drop in revenue and delayed payments from some customers[25]. - The weighted average return on equity was 2.07%, a decrease of 9.22 percentage points year-on-year, primarily due to the sharp decline in net profit[26]. - The net profit after deducting non-recurring gains and losses was ¥11,049,691.71, down 87.36% year-on-year, mainly due to a significant drop in net profit and an increase in government subsidies and investment income[25]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥1.22 billion, an increase of 0.99% from ¥1.21 billion at the end of 2019[22]. - The net assets attributable to shareholders of the listed company were approximately ¥1.08 billion, a decrease of 1.88% from ¥1.10 billion at the end of 2019[22]. - The company’s total assets reached 1.217 billion yuan and net assets were 1.078 billion yuan as of December 31, 2020[102]. - The company reported a 128.60% increase in estimated liabilities to CNY 27,442,944.09, influenced by provisions for sales returns[153]. Research and Development - The company has emphasized the importance of product research and development funding due to its current stage and future development needs[7]. - The company's R&D expenditure accounted for 48.62% of operating revenue, an increase of 4.46 percentage points compared to the previous year[23]. - The company invested 159 million yuan in R&D, accounting for 48.62% of its 2020 revenue, an increase of 4.46 percentage points year-on-year[104]. - The company achieved a 21.37% increase in expense-based R&D investment, totaling approximately ¥108.73 million, due to new projects and rising costs[65]. - The company has a total of 311 patent applications, with 204 patents granted, including 32 new invention patent applications in the reporting period[63]. - The company holds 9 invention patents in the structural heart disease field, focusing on a new minimally invasive treatment for severe mitral regurgitation[59]. - The company is focused on developing breakthrough technologies and products to meet unmet clinical needs in the cardiovascular and cerebrovascular intervention fields[170]. Market Dynamics - The centralized procurement policy is expected to increase industry concentration, benefiting leading companies with competitive advantages in capital and product quality[54]. - The average price reduction for coronary stents in the centralized procurement policy implemented in January 2021 reached 93%, significantly impacting market dynamics[53]. - The company highlighted the significant growth potential in the cardiovascular intervention market, with only 542 PCI procedures per 1 million people in China compared to over 2,000 in Japan and 3,000 in the U.S.[167]. - The intracranial intervention market is projected to grow at a sustainable rate of 20-30% annually, indicating a broad application prospect for the company's products[78]. Strategic Initiatives - The company plans to obtain regulatory approvals for its products in the US and Japan in 2021 and 2022, respectively[42]. - The company aims to enhance its international market presence to balance domestic operational risks amid the evolving procurement landscape[54]. - The company is exploring the use of its patented coating technology in neurointerventional applications, which could significantly enhance treatment outcomes for ischemic strokes[75]. - The company plans to maintain high R&D investment, focusing on innovative product development in cardiovascular and cerebrovascular intervention fields[170]. - The company is committed to providing internationally standardized products and technologies to enhance patient access to modern medical advancements[175]. Dividend Policy - The company will not distribute cash dividends for the 2020 fiscal year, considering the significant adverse impact of the centralized procurement policy on its external operating environment[7]. - The company has established a cash dividend policy that stipulates a minimum cash distribution of 10% of the distributable profit when conditions allow, with higher percentages based on the company's development stage and capital expenditure needs[178]. - Due to the significant adverse impact of the national volume-based procurement policy on the external operating environment, the company decided not to distribute cash dividends for 2020, prioritizing funds for product research and development[184]. Risks and Challenges - The company has outlined various risks and corresponding measures in its report, urging investors to be cautious about investment risks[5]. - The company faces risks from the impact of COVID-19 and centralized procurement policies, which may lead to significant declines in sales revenue and profits in 2021[116]. - The company is at risk of losing core competitiveness due to potential talent attrition and challenges in meeting high regulatory standards for new product approvals[118].