KEXING BIOPHARM CO.(SH:688136)2021-04-25 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 139,137,168.72 RMB, with the parent company reporting a net profit of 91,445,955.05 RMB[5]. - The company's operating revenue for 2020 was approximately ¥1.22 billion, representing a year-on-year increase of 2.48% compared to ¥1.19 billion in 2019[20]. - The net profit attributable to shareholders for 2020 was approximately ¥139.14 million, a decrease of 12.94% from ¥159.81 million in 2019[20]. - The net cash flow from operating activities surged to approximately ¥105.93 million, reflecting a significant increase of 1,916.17% compared to ¥5.25 million in 2019[22]. - The total assets at the end of 2020 reached approximately ¥2.37 billion, a substantial increase of 100.56% from ¥1.18 billion at the end of 2019[20]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.83 billion, marking a 162.82% increase from ¥696.34 million at the end of 2019[20]. - Basic earnings per share for 2020 were ¥0.93, down 13.08% from ¥1.07 in 2019[21]. - The gross profit margin for the pharmaceutical manufacturing sector was 79.99%, a decrease of 1.54 percentage points from the previous year[90]. - The company achieved total revenue of CNY 1,220.29 million in 2020, a year-on-year increase of 2.48%[65]. - The net profit attributable to the parent company was CNY 139.14 million, a decrease of 12.94% compared to the previous year[65]. Dividend Policy - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares (including tax) based on the total share capital as of the dividend distribution date[5]. - The total distributable profit for 2020 after statutory surplus reserve allocation is 82,301,359.54 RMB, with cumulative distributable profits amounting to 116,634,652.50 RMB[5]. - The proposed cash dividend is ¥0.80 per 10 shares (including tax), which has been approved by the board and is pending shareholder approval[154]. - The company plans to maintain a cash dividend ratio of at least 80% for mature stages without significant capital expenditure, and at least 40% with significant capital expenditure[154]. - The company emphasizes shareholder returns while balancing industry characteristics and operational needs, ensuring stable development in R&D, technology, and market expansion[155]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 4.93%, up 1.05 percentage points from 3.88% in 2019[21]. - The company achieved a total R&D investment of ¥60,110,738.77, representing a 30.20% increase compared to the previous year[49]. - R&D investment accounted for 4.93% of the company's operating income during the reporting period[123]. - The company received 14 new patent applications and 12 granted patents during the reporting period, bringing the cumulative total to 60 applications and 38 granted patents[48]. - The company is currently developing seven projects with total expected investments of ¥482,000,000, of which ¥36,000,000 has been invested in the reporting period[51]. - The company has established a comprehensive biopharmaceutical R&D system covering drug discovery to industrialization, enhancing its core competitiveness[118]. - The company is focusing on biopharmaceutical innovation, with 3 biopharmaceutical innovation drugs currently in development, aiming to enhance its overall R&D competitiveness[60]. - The company has initiated a new long-acting growth hormone project, utilizing the latest generation of modified single-domain Fc fusion protein technology, which effectively extends the half-life of growth hormone and reduces ADCC and CDC effects[53]. Market Position and Strategy - The company focuses on the research, production, and sales of recombinant protein drugs and micro-ecological preparations, with a stable development supported by policy and marketing channels[29]. - The company exports products to over 30 countries, including Brazil, the Philippines, and Indonesia[37]. - The company has established a robust marketing network covering over 16,000 terminals, including more than 6,000 hospitals, and has successfully entered over 30 international markets[62]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22]. - The company aims to enhance its R&D capabilities in recombinant proteins and nucleic acid drugs, targeting unmet clinical needs in areas such as antiviral, oncology, and immunology[140]. Compliance and Governance - The company has received a standard unqualified audit report from Da Hua Certified Public Accountants[4]. - The company emphasizes compliance with all relevant laws and regulations regarding shareholding and transfers[164]. - The company has committed to a lock-up period of 36 months for major shareholders post-IPO, ensuring stability in shareholding[160]. - The company will ensure compliance with regulations and provide timely explanations and apologies if any commitments regarding return measures are violated[173]. - The company has established a clear legal framework for enforcing these commitments, allowing for legal action in case of violations[164]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the report's section on risk factors[4]. - The company is facing risks related to core talent retention and potential supply chain disruptions due to reliance on overseas suppliers[74][77]. - The company is adapting to regulatory changes in the biopharmaceutical sector, which may increase operational costs but also present new development opportunities[137]. - The company will publicly explain any failure to fulfill commitments at shareholder meetings and through designated media[177].