HitGen(SH:688222)2021-04-28 16:00Financial Performance - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2020, representing a year-over-year increase of 20%[12]. - The company's operating revenue for 2020 was ¥243.6 million, a decrease of 7.80% compared to ¥264.2 million in 2019[23]. - The net profit attributable to shareholders for 2020 was ¥64.0 million, down 46.77% from ¥120.3 million in 2019[23]. - The net cash flow from operating activities was ¥1.6 million, a significant decline of 99.06% compared to ¥168.3 million in 2019[23]. - The company achieved revenue of ¥243,600,479.33, a year-on-year decrease of 7.80% due to the impact of the COVID-19 pandemic[110]. - The net profit attributable to shareholders was CNY 64,023,167.70, down 46.77% year-on-year[133]. - Revenue from the U.S. market decreased by 23.98% to CNY 162,861,701.45, with a gross margin reduction of 2.63 percentage points[137]. - Revenue from the China region reached ¥50,346,892.41, a year-on-year increase of 1,562.11%, accounting for 20.67% of total revenue[110]. Research and Development - The company invested RMB 200 million in R&D for new technologies, focusing on high-throughput screening and structure-based drug design[13]. - The company's R&D expenditure accounted for 41.00% of operating income, an increase of 6.38 percentage points compared to the previous year[25]. - The total R&D investment for the year was ¥99,874,213.34, representing a 9.20% increase from ¥91,461,692.47 in the previous year[91]. - The company has a total of 383 R&D personnel, with 38.64% holding bachelor's degrees and 22.98% holding doctoral degrees[98]. - The company is focused on expanding its product pipeline and enhancing its research capabilities in drug development[22]. - The company has developed a comprehensive drug optimization platform that spans from target gene identification to clinical trial application, integrating multiple technical disciplines[73]. - The company is actively developing nucleic acid drugs, focusing on tumor and autoimmune indications, leveraging its expertise in nucleic acid chemistry[74]. Market Expansion and Strategy - The company is expanding its market presence in Europe, targeting a 30% increase in market share by the end of 2021[12]. - The company provided guidance for 2021, expecting revenue growth of 25% to reach approximately RMB 1.875 billion[12]. - The company plans to expand its marketing service network domestically and internationally to support steady revenue growth[171]. - The company aims to become a global "seed bank" for innovative drugs and a new engine for drug creation, with operations spanning North America, Europe, Asia, and Australia[36]. - The company plans to implement a new strategy for enhancing its intellectual property portfolio, aiming for a 40% increase in patent filings by the end of 2021[13]. Acquisitions and Collaborations - A strategic acquisition of a biotechnology firm was completed, enhancing the company's capabilities in drug development and research[12]. - The company completed the acquisition of Vernalis, a leader in fragment-based drug discovery and design technology, enhancing its drug discovery capabilities[35]. - The company acquired 100% equity of Vernalis for $26,650,459 (approximately RMB 173,045,462.94) on October 11, 2020, completing the transaction by December 2, 2020[100]. - The company has formed deep collaborations with several biopharmaceutical companies and academic partners, enhancing its drug development capabilities[71]. Risks and Challenges - The company emphasizes the importance of investor caution regarding investment risks[6]. - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section[4]. - The company is exposed to risks of new drug development failures, particularly due to the focus on new targets and mechanisms[126]. - The ongoing COVID-19 pandemic poses a risk to the company's main business operations due to potential restrictions on client activities[130]. - The company faces risks from U.S.-China trade tensions and currency fluctuations, which could adversely affect its operations[131]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Deloitte Huayong[5]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company does not have any special arrangements for corporate governance[8]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing[179]. - The company will report any changes in shareholding by its actual controllers and senior management during their tenure[181]. Dividend Policy - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares, totaling 20,034,000 yuan, which accounts for 31.29% of the net profit attributable to shareholders[5]. - The company has a cash dividend policy that protects the rights of minority investors and complies with relevant regulations[175]. - The profit distribution policy emphasizes a minimum annual cash dividend of 10% of the distributable profit for the first three years post-IPO, provided certain financial conditions are met[194].