Bloomage Biotech(SH:688363)2022-03-10 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of RMB 782,334,573.48, while the parent company reported a net profit of RMB 997,745,285.98[5]. - The proposed cash dividend for 2021 is RMB 4.90 per 10 shares (including tax), totaling an estimated cash dividend of RMB 235,200,000.00, which accounts for 30.06% of the net profit attributable to shareholders[5]. - The company's operating revenue for 2021 reached CNY 4.95 billion, representing an increase of 87.93% compared to 2020[22]. - Net profit attributable to shareholders was CNY 782.33 million, a year-on-year growth of 21.13%[22]. - The net cash flow from operating activities increased by 80.97% to CNY 1.28 billion, driven by timely collection of receivables[24]. - Total assets grew by 31.26% to CNY 7.50 billion, influenced by increased sales and inventory levels[24]. - The company achieved a basic earnings per share of CNY 1.63, up 20.74% from the previous year[23]. - The overall gross margin for the raw material business was 72.19%, with the pharmaceutical-grade hyaluronic acid (HA) maintaining a high gross margin of 87%[40]. - The gross profit margin for the company was 78.06%, with a slight decrease of 3.34 percentage points compared to the previous year[180]. Research and Development - Research and development expenses accounted for 5.75% of operating revenue, an increase from 5.36% in 2020[23]. - Research and development investment exceeded 280 million RMB, a year-on-year increase of over 100%, with 571 R&D personnel and 239 ongoing projects[36]. - The company invested 28,433.80 million yuan in R&D during the reporting period, a year-on-year increase of 101.43%[69]. - The number of R&D personnel increased to 571, reflecting a growth of 51.46% compared to the end of 2020[69]. - The company conducted 239 R&D projects in various medical and functional food sectors, a 94.31% increase from the previous year[68]. - The company has applied for a total of 525 patents, including 422 invention patents, with 166 patents granted as of December 31, 2021[112]. - The company has received multiple awards for its food-grade hyaluronic acid products, including the "Innovation Technology Award" and "Product Innovation Award" in 2021[75]. - The company has established strategic partnerships with several institutions, including Shandong University and the Chinese Academy of Sciences, to enhance research and development in synthetic biology and biomanufacturing[121]. Product Development and Innovation - The company launched approximately 309 new skincare products in 2021, an increase of about 80 compared to the previous year, and obtained 8 new special use cosmetic administrative licenses[57]. - The company is focusing on expanding its international market presence and enhancing local management for its raw material business[42]. - The company launched the "Yuling Twin Needle" product in May 2021, achieving sales of over 250,000 units by the end of the year and establishing partnerships with over 1,000 medical beauty institutions[48]. - The company has developed a series of functional skincare products targeting sensitive skin and acne, achieving breakthroughs in special efficacy products such as sun protection and whitening, with 13 special cosmetic registration certificates obtained[106]. - The company is advancing the industrialization of a new product, PI-002, with a trial production output of 1,200 units and a revenue of $132.90 million, maintaining its leadership in the domestic market for cosmetic raw materials[139]. - The company has launched a new food-grade hyaluronic acid, which has passed safety tests and established an international standard for food safety and quality control, marking a new era for domestic hyaluronic acid in food applications[122]. Market and Sales Performance - The company achieved a revenue of 4.95 billion RMB in 2021, representing a year-on-year growth of 87.93%[176]. - Functional skincare products generated revenue of 3.32 billion RMB, with a growth rate of 146.57% year-on-year[181]. - The overseas sales revenue accounted for 10.70% of total revenue in 2021, with potential risks from global economic downturns and trade tensions[174]. - The company has been increasing its marketing efforts on e-commerce platforms, leading to significant growth in direct sales revenue[181]. - The top five customers contributed CNY 363.35 million, representing 7.34% of total annual sales, with new customers entering the top five list[191]. - The company's sales expenses amounted to RMB 243,617.46 million, representing a 121.62% increase compared to 2020, primarily due to an increase in sales personnel and promotional investments on e-commerce platforms like Tmall and Douyin[198]. Risks and Challenges - The company has not experienced any significant risks that could materially affect its operations during the reporting period[4]. - The company faces risks related to the loss of core technical personnel, which is crucial for maintaining its competitive edge and stability in R&D and production[166]. - There is a risk of new product market promotion failure if the company fails to adapt its marketing strategies to meet market demands[168]. - The company is exposed to risks related to the registration and regulatory compliance of its products in various countries, which may affect market entry[165]. - The company’s net profit margin may decline due to increased strategic investments in brand building and talent acquisition, despite efforts to control expenses[170]. Strategic Initiatives - The company plans to continue expanding its market presence and product offerings in the coming years[24]. - The company aims to deepen its "facial rejuvenation" product system and enhance its market share in the medical aesthetics sector[47]. - The company is actively pursuing brand differentiation and positioning, enhancing market recognition and user engagement across its various sub-brands[37]. - The company has implemented its first equity incentive plan, incentivizing a total of 339 executives and key employees[39]. - The company is focusing on the development of second-generation products based on micro-crosslinking technology, which are set to enter clinical trials soon[48].