Keqian Biology(SH:688526)2022-04-18 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥1.10 billion, representing a year-on-year increase of 30.81% due to the expansion of customer operations and increased demand for pig vaccines[26]. - The net profit attributable to shareholders for 2021 was approximately ¥570.74 million, reflecting a year-on-year growth of 27.45%[26]. - The net cash flow from operating activities increased by 32.77% year-on-year, amounting to approximately ¥531.27 million, primarily due to increased cash receipts from sales[29]. - The company's total assets at the end of 2021 were approximately ¥3.73 billion, a 19.75% increase compared to the end of 2020[26]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥3.15 billion, showing a growth of 16.43% year-on-year[26]. - Basic earnings per share for 2021 were ¥1.23, an increase of 6.03% compared to 2020[26]. - The company reported a significant increase in sales revenue from pig vaccines, reaching CNY 1,056,889,522.94, a year-on-year growth of 29.85%[177]. - The company achieved operating revenue of CNY 1,103,021,004.82, a year-on-year increase of 30.81%[168]. - The net profit attributable to the parent company was CNY 570,741,300, representing a year-on-year growth of 27.45%[168]. Research and Development - The R&D expenditure as a percentage of operating revenue was 7.25%, an increase of 0.24 percentage points from the previous year[26]. - The company increased its R&D expenditure to 80.00 million RMB, a growth of 35.42% year-on-year, supporting ongoing innovation and product development[42]. - The company has invested over 180 million yuan in R&D over the past three years, with 52 ongoing projects in 2021, including significant progress in the development of vaccines for porcine circovirus type 2 and Actinobacillus pleuropneumonia[96]. - The R&D team consists of 284 professionals covering fields such as preventive veterinary medicine, animal medicine, and microbiology, providing a strong foundation for continuous innovation and development[137]. - The company has established a high-level R&D center and a complete technology innovation platform, recognized by multiple government departments, including the establishment of a postdoctoral research workstation in September 2015[130]. - The company has established a CRISPR/Cas9 gene editing technology platform, with a genetically engineered vaccine for PRV already approved for safety evaluation[92]. - The company has developed a multi-valent vaccine technology platform, allowing for the prevention of multiple diseases with a single vaccine, thus reducing immunization frequency and costs[92]. - The company has filed a total of 112 national invention patent applications, with 46 granted as of December 2021[96]. Market Position and Strategy - The company is focused on developing high-quality and high-value-added animal biological products, with a completed product layout in poultry vaccines, pet vaccines, and diagnostic reagents[52]. - The company has established a specialized technical service team to drive sales through technology and service, maintaining a high gross margin[62]. - The company has achieved a leading position in the domestic market for several of its new veterinary drugs and vaccines, indicating strong growth potential[112]. - The company has established long-term stable cooperative relationships with universities and research institutes, enhancing the efficiency of technology industrialization[135]. - The company is actively expanding into new business sectors, including pet biological products and micro-ecological preparations, achieving good results[47]. - The company has developed multiple innovative products, including the HB-98 strain live vaccine and HB2000 strain heat-resistant live vaccine, which are more suitable for China's local pig farming industry[138]. - The company has launched the WH-1 strain and AJ1102 strain dual inactivated vaccine, which is the first officially approved variant strain vaccine for porcine epidemic diarrhea in China[139]. Operational Efficiency - The company has implemented a stock incentive plan for 168 employees, accounting for 19.81% of the total workforce, granting 3.71 million shares to enhance employee motivation[41]. - The company completed 12 process improvement projects and implemented 5 product transitions, further enhancing product quality stability[38]. - The annual procurement timeliness rate reached 91.23%, ensuring the orderly supply of epidemic prevention and production materials[40]. - The company has a robust procurement system to ensure the stability and reliability of its supply chain, adhering to GMP standards[63]. - The production model is based on "sales-driven production + safety stock," ensuring product quality and availability[64]. Risks and Challenges - The company faces risks related to technological innovation and potential talent loss, which could impact its R&D capabilities and market position[150]. - The company is at risk of performance decline due to fluctuations in the pig farming industry, which is influenced by cyclical price changes and disease outbreaks[158]. - The company is exposed to tax policy risks, as it benefits from a reduced corporate income tax rate of 15% as a high-tech enterprise, which is subject to change[157]. - The company may experience adverse effects on its operations if key researchers from Huazhong Agricultural University cease their collaboration[164]. - The company faces potential risks if it cannot renew its veterinary drug GMP certificates and production licenses, which are valid for five years[151]. Corporate Governance - The audit report issued by Huaxing Accounting Firm was a standard unqualified opinion[7]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[10]. - There are no violations of decision-making procedures regarding external guarantees[10]. - The company has not disclosed any special arrangements for corporate governance[12].