迪安诊断(300244) - 2021 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides essential preliminary information, including the table of contents and definitions of key terms used throughout the report Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this annual report, with all directors attending the review meeting, and propose a 2021 cash dividend of 1.35 yuan per 10 shares (including tax) - The company's management ensures the truthfulness, accuracy, and completeness of the annual report and assumes corresponding legal responsibilities[5] - The 2021 profit distribution plan proposes a cash dividend of 1.35 yuan per 10 shares (including tax) based on 620,458,296 shares, with no bonus shares or capital reserve conversions[5] Letter to Shareholders Chairman Chen Haibin's letter highlights significant growth in 2021 across COVID-19 response, special testing, proprietary products, and ecosystem collaboration, emphasizing that despite challenges, domestic IVD and ICL sectors offer more opportunities, with 2022 marking the start of international expansion and digital transformation under a "medical diagnostic integrated solution provider" strategy - In 2021, the company achieved high growth in special testing, breakthrough growth in proprietary products, and strong development in ecosystem collaboration businesses like Guanhe Pharma and Deep Sea Cold Chain[8][9] - The company believes opportunities in China's in-vitro diagnostics (IVD) and independent clinical laboratory (ICL) sectors far outweigh challenges, with ICL penetration expected to further increase[10] - As the midpoint of its five-year strategic plan, 2022 will focus on six key initiatives: quality and compliance, strategic business deepening, international business expansion, organizational reform, digital transformation, and leveraging COVID-19 response achievements[10][11][12][14] - 2022 marks the inaugural year for Dian Diagnostics' international business expansion and group-wide digital transformation[13][16] Definitions of Professional Terms This section defines professional terms and company abbreviations used in the report, including industry terms like Independent Clinical Laboratory (ICL), In Vitro Diagnostics (IVD), Next-Generation Sequencing (NGS), Contract Research Organization (CRO), and key subsidiary abbreviations such as Dian Bio and Kailipu - Independent Clinical Laboratory (ICL): A medical testing center legally and operationally independent of medical institutions, providing third-party medical diagnostic services[28] - In Vitro Diagnostics (IVD): External testing of human samples (e.g., body fluids, cells, tissues) used for disease prevention, diagnosis, and treatment monitoring[28] Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information and presents its key financial performance metrics Basic Company Information This section provides the company's basic registration details, contact information, disclosure channels, and details of its accounting firm and sponsor, with the stock ticker "Dian Diagnostics" and code 300244 - The company's stock ticker is “Dian Diagnostics” and its stock code is 300244[37] - The company's appointed accounting firm is Pan-China Certified Public Accountants (Special General Partnership)[42] Key Accounting Data and Financial Indicators In 2021, the company achieved strong performance growth, with operating revenue reaching 13.083 billion yuan, a 22.85% increase, and net profit attributable to shareholders at 1.163 billion yuan, up 44.83%, resulting in basic EPS of 1.8742 yuan/share and a weighted average ROE of 22.06%, with total assets increasing to 15.594 billion yuan by year-end 2021 Annual Key Financial Indicators | Indicator | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 13,082,613,200.18 | 10,649,161,772.92 | 22.85% | | Net Profit Attributable to Shareholders (Yuan) | 1,162,884,346.85 | 802,932,543.96 | 44.83% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (Yuan) | 1,092,785,189.05 | 739,496,807.35 | 47.77% | | Net Cash Flow from Operating Activities (Yuan) | 1,317,918,147.43 | 1,547,226,992.61 | -14.82% | | Basic Earnings Per Share (Yuan/Share) | 1.8742 | 1.2941 | 44.83% | | Weighted Average Return on Net Assets | 22.06% | 18.58% | 3.48% | 2021 Year-End Key Asset and Liability Indicators | Indicator | 2021 Year-End | 2020 Year-End | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 15,594,035,702.21 | 12,398,749,686.11 | 25.77% | | Net Assets Attributable to Shareholders (Yuan) | 5,841,975,826.13 | 4,697,870,632.84 | 24.35% | Quarterly Key Financial Indicators The company's 2021 quarterly operating revenue showed continuous growth, from 2.868 billion yuan in Q1 to 3.744 billion yuan in Q4, while net profit attributable to shareholders grew steadily in the first three quarters but recorded a 69.85 million yuan loss in Q4, and operating cash flow, negative in Q1, turned positive and improved in subsequent quarters 2021 Quarterly Financial Indicators (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,868,272,037.86 | 2,922,941,583.30 | 3,546,935,832.26 | 3,744,463,746.76 | | Net Profit Attributable to Shareholders | 338,559,466.66 | 388,529,458.52 | 505,643,776.08 | -69,848,354.41 | | Net Cash Flow from Operating Activities | -410,932,425.84 | 530,192,207.80 | 354,358,825.73 | 844,299,539.74 | Non-Recurring Gains and Losses In 2021, the company's non-recurring gains and losses totaled 70.10 million yuan, primarily from 63.49 million yuan in government grants and 96.44 million yuan in fair value changes from financial assets, partially offset by other non-operating income/expenses and non-current asset disposal losses 2021 Non-Recurring Gains and Losses Items (Unit: Yuan) | Item | 2021 Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -15,103,516.13 | | Government Grants Recognized in Current Profit/Loss | 63,485,806.25 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities Held for Trading, etc. | 96,435,894.99 | | Other Non-Operating Income and Expenses | -23,345,767.83 | | Total | 70,099,157.80 | Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, financial condition, and future outlook Industry Overview and Trends In 2021, under the "Healthy China" strategy and normalized epidemic prevention, the independent clinical laboratory (ICL) and in-vitro diagnostics (IVD) industries saw growth opportunities, with DRG/DIP reforms driving hospital-ICL collaborations for cost control, public hospital development creating demand for integrated ICL solutions, COVID-19 accelerating industry evolution, and "import substitution" policies expanding market space for domestic IVD products - DRG/DIP payment reforms are transforming hospital laboratories from profit centers to cost centers, prompting hospitals to actively collaborate with independent clinical laboratories (ICL) for cost control[58] - The Public Hospital High-Quality Development Action (2021-2025) emphasizes strengthening clinical specialties and medical research, creating development opportunities for ICLs that can offer in-hospital co-construction, advanced technology, and quality system integration[59][60] - The COVID-19 pandemic has propelled the third-party medical testing industry's growth, enhancing its brand influence and opening C-end traffic entry points, laying a foundation for post-pandemic business expansion[61][63] - “Import substitution” policies and government procurement requirements are providing domestic IVD manufacturers with market expansion opportunities, particularly in high-tech and high-quality product segments[64] Main Business and Operations Analysis As an integrated medical diagnostic solution provider, the company's core businesses are diagnostic services and products, achieving 13.083 billion yuan in operating revenue (up 22.85%) and 1.163 billion yuan in net profit attributable to shareholders (up 44.83%) in 2021, with diagnostic service revenue at 6.620 billion yuan (up 30.25%, conventional services up 31.97% excluding COVID-19 testing) and diagnostic product revenue at 7.321 billion yuan (up 21.37%, proprietary products up 75.30%) 2021 Annual Operating Performance | Indicator | Amount (Billion Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 130.83 | 22.85% | | Net Profit Attributable to Shareholders | 11.63 | 44.83% | | Net Profit After Non-Recurring Items | 10.93 | 47.77% | 2021 Revenue by Business Segment | Business Segment | Revenue (Billion Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Diagnostic Services | 66.20 | 30.25% | | - Of which: COVID-19 Nucleic Acid Testing | 26.06 | - | | - Conventional Business Excluding COVID-19 | 40.14 | 31.97% | | Diagnostic Products | 73.21 | 21.37% | | - Of which: Proprietary Products | 6.59 | 75.30% | | - Of which: Channel Products | 66.62 | 17.78% | - The company's strategy is steadily advancing, focusing on four major disciplines (oncology, infectious diseases, chronic diseases, maternal and child health), with sustained rapid growth in special testing and accelerated incubation and clinical application of proprietary products[71] - Special testing business (molecular diagnostics, pathological diagnostics, and mass spectrometry) revenue (excluding COVID-19) reached 1.46 billion yuan, a 45.85% year-on-year increase, accounting for over 40% of ICL revenue[75] - The company operates 40 chain laboratories nationwide, with a service network covering over 90% of the population, providing services to more than 20,000 medical institutions[65] Core Competencies The company's core competencies include a "service + product" dual-driven business model tailored to the Chinese healthcare market, a unique integrated "R&D-production-sales-testing" industry chain for long-term competitive advantage, technology-driven efficient conversion capabilities with international quality standards, and robust third-party diagnostic platform operation and management expertise, encompassing a leading laboratory network and digital platform - The company pioneered a “service + product” dual-driven model in the industry, evolving into a clinical and disease-oriented integrated solution partnership, enhancing customer stickiness[98] - The company has largely completed its “R&D-production-sales-testing” integrated industry chain transformation, with upstream focus on three proprietary product lines (liquid mass spectrometry, nucleic acid mass spectrometry, molecular diagnostics, and cytopathology), extensive ICL and marketing networks midstream, and 2C health management services downstream[101] - Adhering to the “Technology Leads the Future” strategy, the company has established multiple advanced technology platforms, including high-throughput sequencing and mass spectrometry analysis, holding 43 domestic and international quality certifications[102] - The company operates leading independent clinical laboratories in scale and technology, offering 2,800 testing items to over 20,000 medical institutions, and enhancing operational efficiency through digital platforms and AI technology[104] Financial and Operational Analysis This section details the company's 2021 main business financial performance, showing diagnostic services and product sales as equally significant revenue contributors, with proprietary products exhibiting the fastest growth at 75.30%, and East China being the primary revenue source; expenses like management and R&D grew due to equity incentives and labor costs, with R&D investment increasing to 3.25% of revenue, while operating cash flow slightly decreased and investing cash outflow narrowed Revenue and Cost Analysis In 2021, total revenue reached 13.083 billion yuan, up 22.85%, with diagnostic services contributing 6.620 billion yuan (50.60%) and channel products 6.662 billion yuan (50.92%), while proprietary products grew fastest at 75.30% to 659 million yuan, and gross margins were 48.25% for services and 26.81% for commercial sales 2021 Operating Revenue Composition (By Product) | By Product | Revenue Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Diagnostic Services | 6,619,625,202.23 | 50.60% | 30.25% | | Channel Products | 6,662,255,238.65 | 50.92% | 17.78% | | Proprietary Products | 658,753,704.22 | 5.04% | 75.30% | 2021 Gross Profit Margin by Industry Segment | By Industry Segment | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Gross Profit Margin Change YoY | | :--- | :--- | :--- | :--- | :--- | | Service Industry | 6,208,181,325.20 | 3,212,749,213.90 | 48.25% | -2.58% | | Commercial Business | 7,790,484,915.67 | 5,701,488,596.15 | 26.81% | 0.95% | - In the service industry's operating costs, direct labor wages for laboratories increased by 100.86% year-on-year, primarily due to business expansion and increased headcount[117] Expense Analysis In 2021, all four categories of company expenses increased, with sales expenses up 25.25%, management expenses up 44.74% primarily due to equity incentives and higher labor costs, R&D expenses up 33.11% due to increased labor and material costs, and financial expenses up 11.03% 2021 Period Expenses (Unit: Yuan) | Expense Item | 2021 | 2020 | Year-on-Year Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 1,210,426,244.58 | 966,374,036.11 | 25.25% | - | | Administrative Expenses | 1,108,324,063.12 | 765,741,734.03 | 44.74% | Primarily due to significant increases in equity incentive expenses, labor costs, etc. | | Financial Expenses | 217,478,820.01 | 195,875,064.16 | 11.03% | - | | R&D Expenses | 424,748,904.94 | 319,104,205.42 | 33.11% | Primarily due to significant increases in labor costs, material costs, etc. | R&D Investment In 2021, the company's total R&D investment reached 425 million yuan, a 33.11% increase, raising its proportion of operating revenue from 3.00% to 3.25%, with 915 R&D personnel focusing on projects like high-throughput sequencing for microbial detection, LC-MS rapid bacterial diagnostics, and IrisLIMS to enrich service lines and enhance lab efficiency R&D Investment Over the Past Three Years | Indicator | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | R&D Investment Amount (Yuan) | 424,748,904.94 | 319,256,862.20 | 213,083,005.69 | | R&D Investment as % of Operating Revenue | 3.25% | 3.00% | 2.52% | - Key R&D projects focus on high-throughput sequencing for microbial detection, rapid mass spectrometry diagnostics, Laboratory Information Management System (IrisLIMS), and COVID-19 screening platforms, aiming to build brand, enrich product lines, and enhance efficiency[123] - During the reporting period, the company obtained 1 new Class III medical device registration certificate (COVID-19 nucleic acid test kit) and 5 new Class II certificates[88][131] Cash Flow Analysis In 2021, net cash flow from operating activities was 1.318 billion yuan, a 14.82% year-on-year decrease, mainly due to significantly higher cash payments for employee compensation and taxes; net cash flow from investing activities was -536 million yuan, with outflow narrowing by 34.67% due to a substantial decrease in equity investments; and net cash flow from financing activities was -310 million yuan, with outflow expanding by 20.92% 2021 Cash Flow Statement Key Items (Unit: Yuan) | Item | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,317,918,147.43 | 1,547,226,992.61 | -14.82% | | Net Cash Flow from Investing Activities | -536,220,453.30 | -820,737,575.24 | 34.67% | | Net Cash Flow from Financing Activities | -309,992,744.23 | -256,369,549.03 | -20.92% | | Net Increase in Cash and Cash Equivalents | 467,972,228.76 | 462,488,195.77 | 1.19% | Assets and Liabilities As of year-end 2021, total assets reached 15.594 billion yuan, up 25.77%, with accounts receivable significantly increasing from 35.47% to 40.32% of total assets due to expanded operations; liabilities saw substantial growth in long-term borrowings and accounts payable, reflecting capital structure optimization and business expansion needs - Accounts receivable balance at year-end was 6.288 billion yuan, accounting for 40.32% of total assets, an increase of 4.85 percentage points from the beginning of the year, primarily due to expanded operations and revenue growth during the reporting period[139] - Long-term borrowings increased to 888 million yuan, mainly due to the company's efforts to optimize capital structure, enhance short-term solvency, and reclassify some short-term debts to long-term upon maturity[143] - Accounts payable increased to 1.856 billion yuan, raising its proportion of total assets to 11.90%, primarily due to increased procurement volumes and extended payment terms driven by expanded operations[143] Investment Status In 2021, the company's investment amounted to 388 million yuan, a 21.45% year-on-year decrease, with no significant equity or non-equity investments; regarding raised funds, 1.68 billion yuan of the 10.62 billion yuan from the 2018 non-public offering was used this period, totaling 4.27 billion yuan utilized, and 422 million yuan from terminated projects due to operational adjustments was permanently allocated to working capital - Investment during the reporting period was 388 million yuan, a 21.45% decrease compared to 494 million yuan in the previous year[147] - The total proceeds from the 2018 non-public offering were 1.062 billion yuan, with 213 million yuan remaining unused as of the end of the reporting period; some original fundraising projects (e.g., Kunshan, Foshan projects) were terminated due to early achievement of benefit targets, and the remaining 422 million yuan from these terminated projects was permanently allocated to working capital[150][151][165][166] Major Holding and Participating Companies Core subsidiary Hangzhou Dian Medical Laboratory Co., Ltd. performed exceptionally in 2021, achieving 6.436 billion yuan in operating revenue, 1.440 billion yuan in operating profit, and 1.104 billion yuan in net profit, significantly contributing to the company's overall performance; during the period, the company adjusted its subsidiary structure by establishing 12 new subsidiaries and liquidating 3 Core Subsidiary: Hangzhou Dian Medical Laboratory Co., Ltd. 2021 Performance (Unit: Yuan) | Indicator | Amount | | :--- | :--- | | Total Assets | 6,359,168,870.45 | | Net Assets | 2,725,749,806.47 | | Operating Revenue | 6,436,176,970.04 | | Operating Profit | 1,439,723,380.00 | | Net Profit | 1,104,275,672.10 | - During the reporting period, the company established 12 new subsidiaries, including Shenzhen Dian Huxin Medical Laboratory and Hangzhou Xiaofeijian Health Technology Co., Ltd., and liquidated 3 subsidiaries to optimize its business layout[174] Future Development Outlook The company will continue its five-year strategic plan, positioning itself as an "integrated medical diagnostic solution provider," with 2022 operational plans focusing on six key areas: advancing strategic businesses (four major disciplines, proprietary product promotion), international expansion, deepening organizational reform with a matrix management structure, implementing digital intelligence strategy, leveraging COVID-19 experience, and enhancing quality and compliance, while also identifying and addressing potential risks in quality control, management, policy, human resources, and accounts receivable - The company's strategic positioning is an “integrated medical diagnostic solution provider,” aiming to build an integrated service industry chain through technological and model innovation[178] - The 2022 operational plan includes: advancing strategic businesses (four major disciplines, proprietary products), international expansion, deepening organizational reform, implementing digital intelligence, leveraging anti-epidemic experience, and refining quality and compliance[180] - The company faces key risks including quality control, management challenges from scale expansion, healthcare reform policies, competition for high-caliber talent, and accounts receivable management[185][186][187][188][190] Corporate Governance This section outlines the company's corporate governance structure, internal controls, and compliance with relevant regulations Overview of Corporate Governance During the reporting period, the company strictly adhered to laws like the Company Law and Securities Law, continuously improving its corporate governance structure and internal control system, with actual governance practices complying with relevant regulations across shareholder relations, board and supervisory board operations, and information disclosure - The company's actual corporate governance complies with regulations such as the Guidelines for Corporate Governance of Listed Companies and the Shenzhen Stock Exchange ChiNext Listing Rules, with no significant discrepancies[194][197] Directors, Supervisors, and Senior Management This section details the basic information, shareholding changes, professional experience, and compensation of the company's directors, supervisors, and senior management, noting internal reassignments for the CFO and Board Secretary, Chairman Chen Haibin's sale of 18,314,505 shares, and total executive compensation of 40.1359 million yuan - During the reporting period, Chairman Chen Haibin reduced his holdings by 18,314,505 shares, with his year-end shareholding at 163,658,933 shares[204] - The company's CFO changed from Shi Yupeng to Yao Zhen, and the Board Secretary from Shen Lijun to Tao Jun, both being internal reassignments, with former executives remaining employed by the company[208][209] Total Pre-Tax Compensation for Selected Directors, Supervisors, and Senior Management in 2021 (Unit: 10,000 Yuan) | Name | Position | Total Compensation | | :--- | :--- | :--- | | Chen Haibin | Chairman | 549.49 | | Huang Baixing | Director, General Manager | 908.80 | | Guo Sanhui | Director, Deputy General Manager | 440.01 | | Total | -- | 4,013.59 | Employee Information As of the reporting period end, the company had 11,123 employees, with technical personnel comprising the largest group at 4,826, followed by sales at 2,247, and over 85% of employees holding college degrees or higher; the company implements a performance and capability-linked compensation system and a comprehensive employee training and development framework Employee Count and Professional Composition (As of 2021 Year-End) | Category | Number of People | | :--- | :--- | | Total Employees | 11,123 | | Professional Composition | | | Technical Personnel | 4,826 | | Sales Personnel | 2,247 | | Administrative Personnel | 2,047 | | Delivery Personnel | 1,501 | | Production Personnel | 67 | | Financial Personnel | 435 | Profit Distribution Policy The board approved the 2021 profit distribution plan, proposing a cash dividend of 1.35 yuan per 10 shares (including tax) to all shareholders based on a total share capital of 620,458,296 shares, totaling 83,761,869.96 yuan, which aligns with the articles of association and awaits shareholder approval 2021 Annual Profit Distribution Plan | Item | Content | | :--- | :--- | | Dividend per 10 shares (Yuan) (incl. tax) | 1.35 | | Share Capital Base for Distribution Plan (Shares) | 620,458,296 | | Cash Dividend Amount (Yuan) (incl. tax) | 83,761,869.96 | | Cash Dividend as % of Total Profit Distribution | 100.00% | Equity Incentive The company launched a restricted stock incentive plan in 2020, and in October 2021, granted 2.008 million reserved restricted shares to 78 grantees at 24.72 yuan/share; as of the reporting period end, the first tranche of restricted shares initially granted in 2020 met vesting conditions but had not yet completed vesting - On October 22, 2021, the company granted 2.008 million reserved restricted shares to 78 incentive recipients at an exercise price of 24.72 yuan/share[263] Environmental and Social Responsibility This section details the company's commitment to environmental protection and its initiatives in social responsibility Social Responsibility and Rural Revitalization The company is not a key polluting entity and received no environmental administrative penalties during the reporting period; it actively fulfills social responsibilities by providing quality medical testing services to remote and impoverished areas through its national laboratory network and co-construction model, supporting health poverty alleviation and rural revitalization, with detailed information available in its 2021 ESG Report - The company provides health poverty alleviation by collaborating with medical institutions in impoverished or remote areas, such as Dancheng County in Henan Province, Chuxiong Yi Autonomous Prefecture in Yunnan Province, and the Third People's Hospital of Tibet Autonomous Region, to enhance local testing technology and quality standards[282] - Detailed information on the company's social responsibility practices is disclosed in its 2021 Environmental, Social, and Governance (ESG) Report[281] Significant Matters This section covers various significant events and developments that occurred during the reporting period Fulfillment of Commitments During the reporting period, the company's actual controller, shareholders, and other related parties strictly fulfilled all commitments, including share lock-ups, avoiding horizontal competition, and regulating related-party transactions, with no breaches observed - The company's actual controller, Mr. Chen Haibin, strictly fulfilled his long-term commitments regarding share lock-ups, avoiding horizontal competition, and regulating related-party transactions[285] Changes in Consolidation Scope In 2021, the company's consolidated financial statement scope changed, with 12 new subsidiaries established for business development, including Zhejiang Dian Jianshi Technology Co., Ltd. and Hangzhou Yice Technology Co., Ltd., while 3 subsidiaries completed liquidation and deregistration - During the reporting period, the company established 12 new subsidiaries and included them in the consolidation scope, while 3 subsidiaries were liquidated and no longer consolidated[293][294][296] Significant Contracts and Guarantees During the reporting period, the company had no significant custodianship, contracting, or leasing matters; regarding significant guarantees, the company primarily provided guarantees for its subsidiaries and one associate (Hangzhou Quancheng Health Medical Clinic Co., Ltd.), with actual external guarantees totaling 430 million yuan and guarantees for subsidiaries totaling 1.155 billion yuan as of the period end Guarantees at Period End (Unit: 10,000 Yuan) | Guarantee Type | Actual Guarantee Balance at Period End | | :--- | :--- | | External Guarantees (to Associates) | 430 | | Guarantees to Subsidiaries | 115,515.71 | | Total | 115,945.71 | Other Significant Matters During the reporting period, significant matters included: 1) Actual controller Mr. Chen Haibin's stock pledge renewals and supplementary pledges, with cumulative pledges reaching 29.21% of his holdings at period end; 2) Termination of some 2017 refinancing projects, with 432 million yuan permanently allocated to working capital; 3) Granting of 2.008 million reserved restricted shares to incentive recipients; and 4) Controlling subsidiary Kailipu completing a 150 million yuan capital increase, attracting investors like Hillhouse - Actual controller Mr. Chen Haibin and his concerted parties' cumulative pledged shares accounted for 29.21% of their total holdings at the end of the reporting period[359] - The company terminated some fundraising projects and permanently allocated 432 million yuan of the remaining raised funds to working capital[359] - Controlling subsidiary Kailipu completed a 150 million yuan capital increase, attracting investment institutions such as Hillhouse, Defu Yuean, and Songhe[361] Share Changes and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders Share Changes As of year-end 2021, the company's total share capital remained unchanged at 620,458,296 shares, with restricted shares decreasing by 26,386,190 shares due to the lifting of lock-ups on some senior management shares, and unrestricted shares increasing by the same amount - During the reporting period, the company's total share capital remained unchanged at 620,458,296 shares, with changes in share structure primarily due to the lifting of lock-ups on senior management shares[366] Shareholders and Actual Controller As of year-end 2021, the company had 35,753 common shareholders, with Mr. Chen Haibin as the controlling shareholder and actual controller, who, along with concerted party Hangzhou Dian Holding Co., Ltd., collectively held 28.09% of the company's shares; Hong Kong Securities Clearing Company Limited was the second largest shareholder with 11.78% - As of the end of the reporting period, the company had a total of 35,753 shareholders[371] Top Three Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Chen Haibin | 26.38% | 163,658,933 | | Hong Kong Securities Clearing Company Limited | 11.78% | 73,061,029 | | China Huarong Asset Management Co., Ltd. | 3.68% | 22,847,326 | - The company's controlling shareholder and actual controller is Mr. Chen Haibin, who, along with concerted party Hangzhou Dian Holding Co., Ltd., acts in concert[378][383] Financial Report This section presents the company's audited financial statements and related notes for the reporting period Audit Report Pan-China Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements, affirming that they fairly present the company's financial position, operating results, and cash flows in all material respects, prepared in accordance with enterprise accounting standards, with key audit matters including goodwill impairment, revenue recognition, and accounts receivable - The auditing firm, Pan-China Certified Public Accountants, issued a standard unqualified audit opinion[396][398] - Key audit matters include goodwill impairment, revenue recognition, and accounts receivable[400][401] Financial Statements This section presents the company's 2021 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, with data indicating growth in both asset size and profitability Consolidated Balance Sheet Summary (Unit: Yuan) | Item | December 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 15,594,035,702.21 | 12,398,749,686.11 | | Total Liabilities | 8,118,148,058.94 | 6,369,960,305.25 | | Total Equity Attributable to Parent Company Owners | 5,841,975,826.13 | 4,697,870,632.84 | Consolidated Income Statement Summary (Unit: Yuan) | Item | 2021 Annual | 2020 Annual | | :--- | :--- | :--- | | Total Operating Revenue | 13,082,613,200.18 | 10,649,161,772.92 | | Total Operating Costs | 11,084,409,362.86 | 8,862,647,995.30 | | Total Profit | 1,790,996,654.86 | 1,317,395,409.16 | | Net Profit | 1,483,601,123.12 | 1,069,934,110.51 | | Net Profit Attributable to Parent Company Shareholders | 1,162,884,346.85 | 802,932,543.96 | Significant Accounting Policies and Estimates This section details the accounting policies and key estimates used in preparing the company's financial statements, noting that as of January 1, 2021, the company first adopted the new lease standards, retrospectively adjusting relevant financial statement items, primarily impacting "right-of-use assets" and "lease liabilities" - The company adopted the newly revised “Enterprise Accounting Standard No. 21 – Leases” effective January 1, 2021, and adjusted relevant financial statement items at the beginning of the year[638][639] - Revenue recognition policy: The company recognizes revenue when the customer obtains control of the related goods or services; for product sales, revenue is typically recognized upon customer acceptance or after installation and debugging; for diagnostic services, it is recognized after the report is issued and confirmed by the client[605][608] Notes to Consolidated Financial Statement Items This section provides detailed notes and explanations for key items in the consolidated financial statements, including the composition, changes, and impairment tests for accounts such as cash and cash equivalents, accounts receivable, inventories, fixed assets, goodwill, borrowings, revenue and costs, various expenses, and investment income - As of the period end, the book balance of accounts receivable was 6.598 billion yuan, with an allowance for doubtful accounts of 310 million yuan, resulting in a carrying value of 6.288 billion yuan; approximately 90.5% of accounts receivable were within one year of aging[709][713] - As of the period end, the original book value of goodwill was 2.014 billion yuan, with an impairment provision of 735 million yuan, resulting in a carrying value of 1.279 billion yuan; no new goodwill impairment provision was made during the current period[767][774][787] - Total government grants recognized in current profit or loss in 2021 amounted to 63.49 million yuan, primarily comprising various tax rebates, industrial support funds, and R&D subsidies[875][967]