Leadman(SZ:300289)2021-04-23 16:00Financial Performance - The company reported a significant impact on its business due to a decrease in routine outpatient testing volumes, particularly in biochemical diagnostics, resulting in a direct effect on revenue [5]. - The company's operating revenue for 2020 was ¥471,510,962.68, a decrease of 8.47% compared to ¥515,143,483.47 in 2019 [26]. - The net profit attributable to shareholders in 2020 was -¥50,983,731.69, representing a decline of 908.09% from a profit of ¥6,309,184.34 in 2019 [26]. - The total assets at the end of 2020 were ¥1,628,633,453.83, down 4.99% from ¥1,714,157,129.69 at the end of 2019 [26]. - The net assets attributable to shareholders decreased by 4.19% to ¥1,261,642,033.09 at the end of 2020, compared to ¥1,316,803,218.91 at the end of 2019 [26]. - The basic earnings per share for 2020 was -¥0.12, a decrease of 700.00% from ¥0.02 in 2019 [26]. - The diluted earnings per share also stood at -¥0.12 for 2020, reflecting the same decline as the basic earnings per share [26]. - The weighted average return on equity was -3.95% in 2020, down 4.43% from 0.48% in 2019 [26]. - The company reported a significant increase in non-operating income, with a total of ¥21,921,183.83 in 2020 compared to ¥17,238,969.47 in 2019 [26]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as the net profit for the last three accounting years has been negative [26]. Research and Development - The company emphasizes the importance of developing new technologies and products to meet increasing market demands, with a focus on accelerating the commercialization of new products [6]. - The company is committed to enhancing its research and development capabilities to maintain a competitive edge in the in vitro diagnostics industry [6]. - The company emphasizes R&D investment and has developed a comprehensive innovation system, enhancing product performance and expanding product variety to meet market demands [47]. - The company has established a complete and efficient R&D, procurement, production, marketing, and service system for in vitro diagnostic products [41]. - The company has 46 ongoing projects in the biochemical reagent field, with 13 products in the registration process and 27 new projects initiated in 2020 [72]. - The company has 75 medical device products under registration, including 2 new product registrations [96]. - The company is committed to enhancing its research and development efforts to introduce new technologies in the medical diagnostics field [97]. - The company is actively pursuing the development of new products, with several kits, such as ß2-Microglobulin (BMG) and C-Reactive Protein (CRP), also in the registration process [98]. Market and Competition - The company highlights the risk of market competition intensifying, which could lead to a slowdown in performance and market share if it fails to diversify effectively [5]. - The domestic in vitro diagnostic market is expected to continue growing due to factors such as an aging population and increased government investment in healthcare, creating significant demand for the industry [45]. - The in vitro diagnostic industry in China is projected to reach a market size of approximately 700 billion yuan, with significant potential for domestic product substitution, particularly in the chemiluminescence sector [47]. - The company is focused on enhancing its market presence by introducing innovative diagnostic solutions, which may lead to increased revenue streams in the future [98]. - The company aims to enhance its market share in high-throughput and high-sensitivity diagnostic products, particularly in the fields of chemiluminescence and molecular diagnostics [133]. Risks and Challenges - The company faces risks related to the collection of accounts receivable, with a high proportion of net accounts receivable relative to total current assets, which may lead to potential bad debt losses [9]. - The company acknowledges the risk of goodwill impairment due to changes in industry policies or competition, which could affect profitability [10]. - The company is closely monitoring the ongoing global COVID-19 pandemic, which poses uncertainties for raw material procurement and overall business operations [12]. - The company is aware of the risks associated with management and operational challenges as it scales up its operations in a competitive environment [11]. - The company has implemented measures to protect its core technologies, but there remains a risk of leakage or theft of proprietary information [8]. Cash Flow and Investments - The net cash flow from operating activities increased by 8.75% to ¥135,559,303.27 in 2020, compared to ¥124,648,403.19 in 2019 [26]. - The total cash inflow from operating activities decreased by 10.43% to ¥598,287,068.08 compared to the previous year [105]. - The total cash outflow from operating activities decreased by 14.83% to ¥462,727,764.81, indicating improved cost management [105]. - The net cash flow from investing activities improved by 8.42%, resulting in a net outflow of ¥23,701,555.42 [105]. - Cash and cash equivalents increased significantly by 308.85% to ¥66,113,335.28, reflecting strong liquidity [105]. Corporate Governance and Compliance - The company has committed to maintaining independent asset management and operational integrity [156]. - The company has established a complete corporate governance structure to ensure independent decision-making [159]. - The company has committed to avoiding competition with its subsidiaries and ensuring fair treatment in related transactions [155]. - The company ensures the independence of its financial department and accounting system, maintaining a separate bank account and independent tax obligations [157]. - The company has pledged to provide fair and transparent procedures for any unavoidable related transactions [158]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies [163]. - The company plans to increase R&D investment in 2021, focusing on opportunities for domestic replacement of chemiluminescence products and expanding its testing menu [134]. - The company is focused on enhancing its governance and internal control systems to reduce operational compliance risks [140]. - The company is actively pursuing market expansion through new product registrations and updates to existing products [102].