Keqian Biology(SH:688526)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 increased by 66.15% compared to the previous year, reaching approximately ¥843.23 million, driven by the recovery of the downstream pig farming industry and market expansion [25]. - Net profit attributable to shareholders increased by 84.55% year-on-year, amounting to approximately ¥447.80 million, while the net profit after deducting non-recurring gains and losses rose by 108.07% to approximately ¥431.20 million [25]. - The net cash flow from operating activities surged by 158.34% year-on-year, totaling approximately ¥400.14 million, due to a significant increase in cash received from sales [25]. - Total assets grew by 126.83% year-on-year, reaching approximately ¥3.11 billion, while net assets attributable to shareholders increased by 142.05% to approximately ¥2.71 billion, primarily due to the issuance of 105 million new shares in 2020 [25]. - Basic earnings per share rose by 73.13% year-on-year to ¥1.16, attributed to a 29.17% increase in share capital and a substantial rise in net profit [26]. - The company achieved operating revenue of 843.23 million yuan, a year-on-year increase of 66.15%, and a net profit attributable to the parent company of 447.80 million yuan, up 84.55% year-on-year [146]. R&D and Innovation - The company invested over 150 million yuan in R&D over the past three years, with 50 ongoing projects in 2020, including significant progress on the "Pig δ Coronavirus Inactivated Vaccine (CHN-HN-2014 strain)" [86]. - The total R&D expenditure for 2020 was approximately 59 million yuan, representing a 24.73% increase from the previous year, with R&D expenses accounting for 7.01% of operating revenue [90]. - The company has established a comprehensive industrial chain for veterinary biological products, covering R&D, production, sales, and animal epidemic prevention technology services [86]. - The company has established multiple core technology platforms, including pathogen and epidemiology research, gene editing, and high-efficiency expression technology, enhancing its R&D capabilities over the past 20 years [77]. - The company is focusing on developing multivalent vaccines to improve immunization efficiency and reduce the number of vaccinations required [76]. - The company has made advancements in modern biotechnology vaccines, with a growing number of vaccines developed using gene engineering and cell engineering techniques [72]. Market Position and Strategy - The company ranks second in the non-mandatory immunization veterinary biological products market and first in the non-mandatory immunization pig biological products market as of 2019 [67]. - The company has maintained a leading position in the pig pseudorabies vaccine market for four consecutive years, with a market share of 16% [68]. - The company has a strong market presence and innovation capability, which supports its continuous and stable profitability [46]. - The company aims to build a "Chinese animal vaccine national brand" and improve its market risk resistance through strategic management and product structure optimization [146]. - The marketing strategy employs a "direct sales + distribution" model, effectively expanding the marketing service radius and enhancing market influence [137]. Risks and Challenges - The company faces risks related to the loss of technical talent, which could impact its R&D capabilities and continuous profitability [156]. - The ongoing African swine fever epidemic poses a risk to the company’s performance, as approximately 95% of its revenue comes from pig vaccines [163]. - The company is exposed to operational risks due to the need for administrative licenses and product approval numbers, which must be renewed every five years [157]. - The company's market position is threatened by increasing competition from both domestic and international firms in the veterinary biological products sector [161]. Corporate Governance and Transparency - The company received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of the financial report [6]. - The company has a commitment to transparency, with all board members present at the board meeting to ensure the integrity of the annual report [5]. - The company has established a clear communication channel for investors through designated representatives and contact information [19]. Production and Supply Chain - The company has a comprehensive procurement management system to ensure the stability and reliability of its supply chain, focusing on key raw materials such as serum and adjuvants [47]. - The production model combines "sales-driven production + safety stock," ensuring production plans align with sales targets and seasonal disease prevention needs [48]. - The company has established a specialized diagnostic center to provide professional animal epidemic prevention technical services, enhancing customer loyalty and enabling timely adjustments to research and production strategies [142].