Balance Medical(SH:688198)2022-04-21 16:00Financial Performance - The company plans to distribute a cash dividend of 5.00 CNY per 10 shares, totaling 48,219,154.00 CNY, which represents 94.18% of the net profit attributable to the parent company [7]. - The company has not achieved profitability since its listing [5]. - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-over-year growth of 15% [21]. - The net profit for the year was RMB 300 million, which is an increase of 20% compared to the previous year [21]. - The company's operating revenue for 2021 was CNY 251.82 million, an increase of 38.42% compared to CNY 181.92 million in 2020 [29]. - Net profit attributable to shareholders was CNY 51.20 million, a decrease of 9.42% from CNY 56.53 million in 2020 [29]. - The net profit after deducting non-recurring gains and losses was CNY 35.71 million, down 12.98% from CNY 41.04 million in 2020 [29]. - The net cash flow from operating activities increased by 50.69% to CNY 76.49 million from CNY 50.76 million in 2020 [29]. - The company's total assets at the end of 2021 were CNY 1,030.96 million, an increase of 18.31% from CNY 871.44 million at the end of 2020 [29]. - The overall gross margin for the company was 91.07%, an increase of 0.53 percentage points compared to the previous year [157]. Research and Development - The company is investing RMB 100 million in R&D for new technologies in the cardiovascular treatment sector [21]. - The R&D expenditure accounted for 23.39% of operating revenue, up 7.58 percentage points from 15.81% in 2020 [29]. - The company increased its R&D investment by 104.73% year-on-year, totaling ¥58,900,391.29, primarily due to extensive clinical trials for three key products: the interventional valve-in-valve, transcatheter aortic valve replacement (TAVR), and interventional pulmonary valve [115]. - The company has filed for 13 new invention patents this year, bringing the total to 42 applications, with 20 patents granted [112]. - The company has established a robust platform for the research and development of artificial biological heart valve devices, supported by extensive clinical application practices [86]. Market Expansion and Strategy - The company has outlined potential risk factors in its operations [5]. - Market expansion plans include entering three new provinces in China, aiming for a 30% increase in market share [21]. - The company is considering strategic acquisitions to enhance its product portfolio and market presence [21]. - The company is focusing on the development of innovative products for interventional aortic valves and other cardiac valve treatments, anticipating a shift towards a coexistence of surgical and interventional treatments [83]. - The company is actively expanding its product layout to include innovative solutions for comprehensive treatment of valvular diseases across all age groups [49]. Corporate Governance - The board of directors and management have confirmed the accuracy and completeness of the annual report [4]. - The company has strengthened its governance structure and internal control systems, ensuring compliance with relevant laws and regulations, with no issues requiring rectification by regulatory authorities as of the end of the reporting period [185]. - The independent directors actively participated in decision-making and did not raise objections to any board meeting resolutions during the reporting period, contributing to the improvement of the corporate governance system [188]. - The company has maintained a high standard of information disclosure, ensuring that all disclosures are truthful, accurate, complete, and timely, with no incidents of insider trading or information leakage reported [188]. Product Development - The company has developed various occluders for congenital heart defects, including atrial septal defect and ventricular septal defect occluders, which are used in interventional treatments [60]. - The company is expanding its product line to include new technologies such as a minimally invasive expandable aortic valve and a new tricuspid/mitral valve ring, currently under registration review and product testing [61]. - The company has developed a new type of artificial biological aortic valve and a one-way limit expandable artificial heart valve, with applications submitted for patent approval [115]. - The company has launched the world's first single-leaf patch for right ventricular outflow tract repair, which is expected to meet the growing market demand due to its low cost and ability to use self-growing tissue [121]. Operational Efficiency - The implementation of the "Two Invoice System" is expected to streamline operations and reduce costs by 10% [21]. - The company has maintained a strong cash position with RMB 500 million in cash reserves, ensuring financial stability for future investments [21]. - The company follows a sales-driven production model, ensuring timely supply based on customer demand and inventory levels [67]. - The company has a strict procurement process for raw materials, primarily sourced from domestically raised and slaughtered animals, ensuring quality and compliance with medical device production standards [65]. Risks and Challenges - The company faces risks related to the declining competitiveness of existing surgical valve products as interventional valve applications expand [142]. - Regulatory risks are heightened due to strict oversight of Class III medical devices, which could impact product sales and financial performance if compliance is not met [144]. - The ongoing COVID-19 pandemic continues to pose uncertainties for the company's short-term operational performance [147].