Balance Medical(SH:688198)2021-04-21 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2020, representing a year-over-year growth of 15%[22]. - The net profit for the year was RMB 300 million, which is an increase of 20% compared to the previous year[22]. - The company's operating revenue for 2020 was ¥181,917,903.34, representing a 24.57% increase compared to ¥146,033,296.55 in 2019[23]. - The company achieved a total revenue of 181.92 million yuan in 2020, representing a year-on-year growth of 24.57%[91]. - The net profit attributable to the parent company was 56.53 million yuan, a decrease of 10.40% year-on-year, but excluding share-based payment impacts, the net profit for the second half of the year was 54.16 million yuan, showing a growth of 75.54%[91]. - The company reported a decrease in operating profit to RMB 67.19 million, down 7.93% year-on-year, indicating challenges in maintaining profitability amidst rising costs[108]. - The operating cash flow net amount was RMB 50.76 million, a decline of 20.53% compared to the previous year, suggesting potential liquidity concerns[108]. Research and Development - Research and development expenses increased by 30% to RMB 150 million, focusing on innovative medical technologies[22]. - The company increased its R&D investment as a percentage of operating revenue to 15.81%, up by 5.44 percentage points from 10.37% in 2019[23]. - The company reported a total R&D investment of ¥28,769,950.83, representing an increase of 89.91% compared to the previous year, with R&D expenses accounting for 15.81% of operating revenue, up 5.44 percentage points[69]. - The company has developed a strong R&D team with over 10 products currently under development, including interventional valves and ocular biological patches[89]. - The company is committed to leading innovation in animal-derived implant materials and enhancing its R&D capabilities[136]. - The company aims to strengthen its core competitiveness by continuously enriching and improving its product line through R&D efforts[171]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, aiming for a 15% market share by 2023[22]. - A strategic acquisition of a local competitor is planned, which is expected to enhance the company's product offerings and market reach[22]. - The company is focusing on expanding its market presence with new product offerings and technological advancements, particularly in the field of pediatric and adolescent valve products[83]. - The company plans to improve operational efficiency and reduce costs to enhance business performance, focusing on internal control and effective execution[174]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm[5]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[5]. - The company has not disclosed any special arrangements for corporate governance[5]. - The company is committed to enhancing its compliance with regulatory standards, ensuring all products meet the latest safety requirements[22]. - The company has committed to reducing related party transactions and ensuring transparency in all dealings, with a focus on fair pricing based on market standards[156]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of 2 CNY per 10 shares, totaling 19,200,000 CNY, which represents 33.97% of the net profit attributable to the parent company[5]. - The cash dividend policy was established in March 2019, aiming to provide stable returns to shareholders and maximize company value[141]. - The company has maintained a consistent cash dividend policy over the past three years, with the highest payout ratio being 74.85% in 2018[141]. - The company plans to carry forward any undistributed profits to the next fiscal year[141]. Risks and Challenges - The company has outlined potential risks in its operations, which can be found in the "Discussion and Analysis of Operating Conditions" section[5]. - The company faces risks related to the competitive landscape, as its existing surgical valve products may lose competitiveness if the development of interventional valve products does not meet expectations[98]. - The company is navigating market development risks for innovative products, which may face challenges in adoption due to entrenched clinical practices[102]. - The company is exposed to regulatory risks due to the strict oversight of Class III medical devices, which could impact product sales if compliance issues arise[103]. Product Development and Innovation - The company has ongoing research and development for new products, including a minimally invasive aortic valve and a new tricuspid/mitral valve ring, currently undergoing registration review and product testing[43]. - The company has registered 13 Class III medical devices, with the core product, the artificial biological heart valve, being the only domestically produced product with original technology and long-term clinical data comparable to imported mainstream products[82]. - The company has achieved significant breakthroughs in core technologies, particularly in animal tissue engineering and chemical modification processes, enhancing the manufacturing of animal-derived implantable medical devices[60]. - The company has successfully developed a heart-lung support system that can partially or fully replace cardiac and pulmonary functions, marking a breakthrough in domestic technology[19]. Financial Position and Assets - The total assets at the end of 2020 were ¥871,435,092.75, reflecting a 10.55% increase from ¥788,291,723.90 at the end of 2019[23]. - The company reported a financial product and structured deposit amounting to ¥612,335,869.73, with a fair value change income of ¥335,869.73[129]. - The total liabilities included accounts payable of 10.25 million RMB, reflecting a 130.54% increase compared to the previous period[125].