HitGen(688222)2022-04-28 16:00Financial Performance - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares, totaling 20,034,000 CNY, which represents 31.61% of the net profit attributable to shareholders[5]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development[4]. - The audit report from Deloitte Huayong confirms the accuracy and completeness of the financial statements[5]. - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-over-year growth of 25%[12]. - The net profit attributable to shareholders for 2021 was approximately ¥63.38 million, a slight decrease of 1.00% from ¥64.02 million in 2020[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥23.30 million, down 45.74% from ¥42.94 million in 2020[23]. - The company's operating revenue for 2021 was approximately ¥311.06 million, representing a 27.69% increase compared to ¥243.60 million in 2020[23]. - The total assets at the end of 2021 were approximately ¥1.71 billion, reflecting a 3.99% increase from ¥1.65 billion at the end of 2020[23]. - The net cash flow from operating activities for 2021 was approximately ¥43.50 million, a significant increase of 2,643.40% compared to ¥1.59 million in 2020[23]. - The company achieved operating revenue of 311.06 million yuan, a year-on-year increase of 27.69%[35]. - The net cash flow from operating activities increased by 2,643.40% to ¥43,496,009.09 compared to the previous period, primarily due to the acquisition of Vernalis in December 2020, which significantly expanded the scope of operations[152]. Research and Development - The company invested RMB 200 million in R&D, focusing on protein degradation technologies and high-throughput screening methods[12]. - The company is focused on expanding its research and development capabilities, particularly in high-throughput sequencing and drug discovery technologies[15]. - The company has synthesized over 1 trillion structurally diverse DNA-encoded compounds, demonstrating its capability in identifying lead compounds for known and emerging biological targets[39]. - The company has developed a robust nucleic acid drug research platform, leveraging its expertise in RNA interference (RNAi) technology and nucleic acid chemistry[76]. - The company has established a comprehensive nucleic acid drug development platform, enhancing its capabilities in RNA interference technology and drug delivery systems[115]. - The company has completed screening for 47 different target types, including challenging targets, showcasing its advanced capabilities in drug discovery[112]. - The company has developed a one-stop drug optimization system covering various technical aspects, including recombinant protein expression and pharmacokinetics[82]. - The company has established partnerships with two leading research institutions to accelerate innovation and product development[200]. Market Expansion and Strategy - The company is expanding its market presence in Europe, targeting a 30% increase in market share by 2023[12]. - The company is actively pursuing market expansion in Southeast Asia, targeting a 30% increase in market share within the next two years[194]. - The company plans to enhance its core technologies, including expanding the DEL library and improving the efficiency of small molecule screening, to maintain its industry-leading position[174]. - The company aims to construct a high-standard new drug R&D platform to accelerate the clinical advancement of new drug projects and increase revenue through project transfers[176]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 1 billion RMB earmarked for potential deals[200]. - A strategic acquisition of a biotech firm was completed, enhancing the company's capabilities in mRNA drug development[13]. - A strategic acquisition was announced, with the company acquiring a competitor for $200 million, expected to enhance its product offerings[192]. Risks and Compliance - The company has detailed various operational risks and corresponding mitigation strategies in the report[4]. - The company has a comprehensive risk statement regarding forward-looking statements, highlighting potential discrepancies due to various factors[6]. - The company has no non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company faces risks related to new drug development failures, particularly with projects targeting new biological targets[123]. - The company is exposed to foreign exchange risks due to a high proportion of revenue from overseas, primarily in USD and EUR[127]. Human Resources and Governance - The company employs 391 R&D personnel, with 96.42% holding a bachelor's degree or higher, including 86 PhDs and 133 master's degree holders[37]. - The company has established a governance structure that includes a board of directors, supervisory board, and management team, ensuring clear responsibilities and effective operations[182]. - The total remuneration for the chairman and general manager, Jin Li, was reported at 335.38 million CNY for the reporting period[188]. - The average age of the key executives is 46 years, suggesting a balance of experience and innovation[190]. - The company has seen a delay in the appointment of several key positions, which may impact future operations[190]. Future Outlook - The company provided a forward-looking guidance of 20% revenue growth for the next fiscal year, projecting revenues to reach RMB 1.44 billion[12]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[200]. - The company plans to implement new marketing strategies aimed at increasing customer engagement by 40%[192]. - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 20% over the next three years[193].