Bloomage Biotech(SH:688363)2021-03-30 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of RMB 645,839,219.95, with a parent company net profit of RMB 633,338,532.60[6]. - The proposed cash dividend for 2020 is RMB 4.10 per 10 shares, totaling an expected distribution of RMB 196,800,000.00, which accounts for 30.47% of the net profit attributable to shareholders[6]. - The company's operating revenue for 2020 was approximately ¥2.63 billion, representing a year-on-year increase of 39.63% compared to ¥1.89 billion in 2019[23]. - Net profit attributable to shareholders for 2020 was approximately ¥645.84 million, a 10.29% increase from ¥585.61 million in 2019[23]. - The cash flow from operating activities for 2020 was approximately ¥705.12 million, showing a significant increase of 93.24% from ¥364.89 million in 2019[23]. - The company's total assets at the end of 2020 were approximately ¥5.72 billion, a 14.99% increase from ¥4.97 billion at the end of 2019[23]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥5.02 billion, a 10.32% increase from ¥4.55 billion at the end of 2019[23]. - The company reported a total of 500 million yuan in revenue from medical hyaluronic acid, with a growth of 119.51% compared to the previous year, establishing a leading position in the domestic market[75]. - The sodium hyaluronate injection (Hailida) generated 800 million yuan in revenue, reflecting a 139.98% increase, marking it as an advanced product in orthopedics[75]. - The HAFG-P product achieved 1 billion yuan in revenue, with a growth rate of 214.24%, positioning it as an internationally leading product in medical aesthetics[75]. - The company achieved a revenue of 2.633 billion RMB, a year-on-year increase of 39.63%, and a net profit attributable to shareholders of 646 million RMB, up 10.29% year-on-year[97]. Research and Development - R&D investment totaled RMB 141.16 million, a 50.35% increase from RMB 93.89 million in the previous year, representing 5.36% of operating revenue[71][72]. - The company is conducting 123 R&D projects focused on green manufacturing of bioactive substances and applications in various medical and cosmetic fields[73]. - The company has applied for 341 patents as of December 31, 2020, with 85 patents authorized, including 45 Chinese invention patents and 4 foreign invention patents[61]. - The company has established four independent R&D platforms, focusing on microbial fermentation and cross-linking technologies, which are crucial for production efficiency and product quality[49]. - The company has over 120 ongoing R&D projects, focusing on core technologies and new product development in the hyaluronic acid field[179]. - The company’s R&D personnel count reached 377, with expertise across various interdisciplinary fields, supporting its innovation strategy[178]. - The company has established two major R&D centers in Jinan and Shanghai, enhancing its capabilities in fermentation, drug formulation, and biomedical engineering[178]. - The company is actively pursuing research and development initiatives to enhance the performance of its existing product portfolio and explore new market opportunities[171]. Product Development and Innovation - The company launched two new cosmetic-grade raw materials: ultra-high molecular weight sodium polyglutamate and superactive ergothioneine[32]. - The company has developed a series of functional skincare brands targeting different demographics, utilizing B.F.S. technology to produce sterile, small-packaged raw liquid products, enhancing product safety[47]. - The company has developed a series of cross-linked hyaluronic acid soft tissue fillers, with 3 products receiving NMPA approval in the first half of 2020[66]. - The company has developed a series of functional skincare products targeting sensitive skin and other issues, achieving breakthroughs in special efficacy products, with 5 special cosmetic registration certificates obtained[55]. - The company is focusing on expanding its product portfolio with innovative formulations, including a new oral liquid product expected to generate 300 million yuan in revenue[75]. - The company is advancing the development of probiotics instant powder, with a production scale of 250 million units and a revenue of 76.05 million, indicating a 130.65% growth rate[77]. - The company is focusing on the development of cross-linked sodium hyaluronate injection, with a production scale of 1,200 million units and a revenue of 85.62 million, indicating a growth rate of 129.74%[77]. - The company has successfully registered a new medical device, the cross-linked sodium hyaluronate injection, with a production scale of 260 million units and a revenue of 95.32 million, marking it as a domestic advanced product[78]. Market Expansion and Strategy - The company plans to continue expanding its market presence and enhancing brand recognition to drive future growth[25]. - The company plans to expand into personal consumer goods sectors such as food, maternal and child care, and daily consumer products, aiming to build a diverse product matrix[99]. - The company aims to enhance its market presence through strategic product development and technological advancements, ensuring a competitive edge in the industry[75]. - The company has established stable distribution channels in over 40 countries, with more than 2,000 global customers, and has maintained long-term partnerships with clients for over 15 years in some regions[91]. - The company has achieved a 13.13% rapid growth in overseas revenue despite the global pandemic, enhancing its brand influence internationally[93]. - The company is focusing on expanding its market presence through innovative product offerings and strategic partnerships in the functional skincare segment[185]. Risk Management - The company emphasizes that forward-looking statements in the report do not constitute commitments to investors, highlighting investment risks[7]. - The company faces risks related to new product development, including potential failures due to high costs or slow progress, which could impact market competitiveness[120]. - New product registration risks exist, as medical products must undergo rigorous approval processes, and delays could hinder market entry[121]. - The company is at risk of technological obsolescence if it fails to adapt to revolutionary new technologies in the biopharmaceutical sector[122]. - The company emphasizes the importance of retaining core technical personnel to maintain its competitive edge and ensure stable operations[124]. - The company is exposed to risks from improper promotion or misuse of its products by downstream customers, which could harm its brand reputation[129]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm, Deloitte[5]. - The company’s financial report is confirmed to be true, accurate, and complete by its responsible persons[6]. - The company has established a comprehensive quality management system certified by ISO standards and has high-standard production lines compliant with international regulations[88]. - The company has obtained 7 domestic registration qualifications and 23 international registration qualifications, including in the EU, the US, South Korea, Canada, Japan, Russia, and India[53]. - The company has achieved HALAL certification for its hyaluronic acid products and COSMOS certification for its mushroom extract product during the reporting period[181]. Operational Efficiency - The company primarily adopts a sales-driven production model, preparing safety stock based on market forecasts, with most products produced in-house and a small portion of skincare products outsourced[37]. - The company has a strict supplier management system, conducting annual evaluations of qualified suppliers to ensure material quality and timely delivery[35]. - The company’s production processes adhere to strict quality management systems, including GMP for pharmaceuticals and ISO22716 for functional skincare products, ensuring product safety and reliability[37]. - The company has established a joint venture with Guangdong Zhongxiang Future Network Technology Co., Ltd., holding a 51% stake in the new entity[196]. Marketing and Brand Development - The company’s advertising expenses totaled 125 million CNY, reflecting strategic brand investments to enhance brand recognition[102]. - The "润百颜" brand generated revenue of 565 million RMB, up 65.29% year-on-year, while the "夸迪" brand saw revenue soar by 513.29% to 391 million RMB[107]. - The company launched the "娃娃针" product in the second half of 2020, featuring micro-crosslinking technology and lidocaine sustained-release technology, which has strong market competitiveness[106]. - The company opened the world's first "Hyaluronic Acid Museum" in June 2020, showcasing the strength of the hyaluronic acid industry and promoting its cultural significance[116].