SSSW(SH:688399)2022-04-14 16:00Financial Performance - The company reported a total revenue of RMB 1.5 billion for the year 2021, representing a year-over-year growth of 20%[11]. - The company's operating revenue for 2021 reached ¥2,839,036,343.41, representing a year-on-year increase of 63.19% compared to ¥1,739,680,701.97 in 2020[23]. - The net profit attributable to shareholders for 2021 was ¥1,193,214,259.45, a 45.59% increase from ¥819,567,339.93 in 2020[23]. - The net profit after deducting non-recurring gains and losses was ¥1,139,627,729.29, reflecting a 45.83% increase from ¥781,455,411.27 in the previous year[23]. - The company's total assets increased by 53.64% to ¥3,499,343,610.85 at the end of 2021, up from ¥2,277,673,271.40 at the end of 2020[23]. - The basic earnings per share for 2021 were ¥20.36, a 45.64% increase compared to ¥13.98 in 2020[24]. - The cash flow from operating activities for 2021 was ¥985,522,925.81, a slight increase of 5.30% from ¥935,881,451.61 in 2020[23]. - The company reported a total revenue of 2,839.04 million RMB in 2021, representing a year-on-year growth of 63.19%[33]. - Revenue from COVID-19 nucleic acid testing reagents reached 1,038.76 million RMB, a 96.06% increase compared to the previous year[34]. - The net profit attributable to shareholders for Q1 was 387.39 million RMB, while Q2 was 114.65 million RMB, Q3 was 494.12 million RMB, and Q4 was 197.06 million RMB[27]. Research and Development - The company invested RMB 200 million in R&D for new technologies, focusing on molecular diagnostics and point-of-care testing solutions[11]. - The company's R&D investment reached 106.64 million yuan, a year-on-year increase of 47.97%, accounting for 3.76% of revenue[36]. - The company has established a cross-disciplinary team of 164 R&D personnel, with 32.93% holding master's degrees or higher[36]. - The company has developed over 600 products utilizing its proprietary core technology platforms, including multiplex fluorescent quantitative PCR, dry chemistry, and automation control[50]. - The company is focusing on high-throughput, closed systems, and timely diagnostics as key technological directions in molecular diagnostics, with NGS and CRISPR technologies being prominent[47]. - The company achieved a prototype completion for home testing instruments, addressing the substantial market demand for home and on-site testing[61]. - The company is accelerating the R&D of upstream core raw materials such as enzymes, antigens, and antibodies to form a complete industry chain from raw materials to instruments and services[111]. Market Expansion and Strategy - The company expects a revenue growth guidance of 25% for the next fiscal year, projecting revenues to reach RMB 1.875 billion[11]. - Market expansion efforts included entering three new international markets, aiming for a 30% increase in international sales[12]. - The company plans to continue its integrated development strategy of "core raw materials + reagents + instruments + services" to promote sustainable growth[35]. - The company is exploring acquisition opportunities in the tech sector, with a budget of $100 million allocated for potential deals[126]. - A new strategic partnership has been established with a leading tech firm to co-develop innovative solutions, expected to launch in Q3 2024[126]. - The company aims to enhance its marketing network by optimizing and integrating distributors and improving direct sales to end customers[114]. Corporate Governance and Compliance - The audit report issued by Lixin Certified Public Accountants is a standard unqualified opinion[4]. - The company has not disclosed any special arrangements for corporate governance[5]. - The company has not faced any situations where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report[7]. - The company has established a comprehensive internal governance structure, ensuring effective separation of responsibilities among the shareholders' meeting, board of directors, and supervisory board[161]. - The company has committed to integrating ESG principles into its operations, focusing on environmental protection, social responsibility, and corporate governance[160]. - The company has maintained stable cooperation with suppliers and customers, ensuring mutual benefits and respect for rights[176]. Risk Management - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The company experienced increased competition in the market, leading to a decrease in profit margins for COVID-19 related products despite revenue growth[25]. - The company faces risks in new product development due to long development cycles of 3-5 years and high R&D failure rates[71]. - There is a risk of core technology leakage, as the company has only patented some key technologies and maintains strict confidentiality measures[71]. - The company anticipates intensified market competition and potential price declines for its reagent products due to regulatory changes and increased market supply[73]. Social Responsibility and Community Engagement - The company actively supported pandemic prevention efforts and contributed to COVID-19 testing initiatives, enhancing its reputation and market presence[34]. - The company donated 2 million RMB and testing reagents to support women's welfare projects and 500,000 RMB to marine education initiatives[172]. - The company has actively participated in social welfare projects, particularly in response to the COVID-19 pandemic, demonstrating its commitment to social responsibility[160]. Employee Relations and Development - The company emphasizes employee training, implementing an annual training plan to enhance overall employee skills and capabilities[150]. - The average salary for R&D personnel decreased to 263,406.10 RMB, down from 328,292.73 RMB in the previous year[67]. - The company has a total of 659,152.25 hours of outsourced labor, with total payments amounting to 15,212,925.50[151]. - The company has established a comprehensive compensation policy that includes project bonuses and performance bonuses to motivate employees[149]. Financial Policies and Shareholder Returns - The company plans to distribute a cash dividend of 100.00 RMB (including tax) for every 10 shares, totaling 586,200,000.00 RMB based on a total share capital of 58,620,000 shares as of December 31, 2021[4]. - The company has a cash dividend policy that stipulates a minimum cash distribution of 10% of the distributable profit if there are no major investment plans or cash expenditures[153]. - The company aims to maintain a stable and continuous profit distribution policy while considering the long-term interests of all shareholders[200]. - The company will prioritize cash dividends when conditions are met, with a preference for cash distribution over stock dividends[200].