March 10,Bloomage BioPublish the 2021 annual report.During the reporting period, the company achievedOperating income4.948 billion yuan, attributable to listed companiesshareholderofnet profit782 million yuan, a year-on-year increase of 87.93% and 21.13% respectively, and both revenue and net profit hit new highs.
According to the annual report, the main reason for the substantial increase in revenue is that the company will continue to increase market development efforts based on its main business segment in 2021, and continue to launch products that are in demand in the market. The sales revenue of functional skin care products has increased by 1.973 billion yuan over the previous year, an increase of 1.973 billion yuan. up to 146.57%. The sales revenue of raw material products and medical terminal products also continued to grow, up 28.62% and 21.54% year-on-year respectively.
Also, it is worth noting that in 2021Bloomage BioNet operating cash flow was 1.276 billion yuan, a year-on-year increase of 80.97%. Corporate cash flow is an important indicator of corporate business development. Under the environment of unstable factors such as the epidemic,Bloomage BioIt still maintains high cash flow growth, which confirms the development strength of the company.
Four major business lines “blooming”
In 2021, Bloomage Bio’s business model will be officially upgraded to a “four-wheel drive” model of bioactive raw materials, medical terminals, functional skin care products and functional foods, opening up new room for strategic growth. The annual report shows that the company’s business operations have achieved good results during the reporting period.
In terms of raw material business, while overseas business was still greatly affected by the epidemic, the company actively explored the domestic market, and the overall revenue reached 905 million yuan, a year-on-year increase of 28.62%, and the growth rate far exceeded that of the same period last year. The company actively carried out product innovation, and other raw materials other than hyaluronic acid achieved a 120% revenue growth, and the company pattern of biological actives platform was further formed. With the further release of the company’s production capacity and the planning of high-end production capacity (sterile products), the competitive advantage and market share of the company’s raw material business will continue to expand.
In terms of medical terminal business, the revenue will be 700 million yuan in 2021, a year-on-year increase of 21.54%. The sales channels of orthopedic products have been further expanded and have grown steadily; PRP products have achieved explosive growth and are expected to become the next popular products with the development of application scenarios in the future.
In terms of the functional skin care products business, the growth rate on the basis of a relatively large business volume exceeded that of the same period of the previous year. In 2021, the revenue will be 3.320 billion yuan, a year-on-year increase of 146.57%. The four major brands (Runbaiyan, Quadi, Mibel , BM muscle activity) have passed the initial growth period of the brand and entered the stage of large-scale, and for the first time, the annual revenue of a single brand (Runbaiyan) has exceeded 1 billion yuan. The four major brands have all formed large single products and differentiated advantageous categories. The development task has changed from prioritizing the pursuit of scale growth, and gradually upgraded to scale growth while improving revenue quality, improving operational efficiency, digging deep into target users, optimizing market channels, and deepening the brand. The refined operation stage of the foundation.
In terms of functional food business, 2021 is the first year for the development of the company’s functional food business. The company has launched three major brands, including the hyaluronic acid water brand “Shui Jiquan”, the hyaluronic acid food brand “Black Zero” and the hyaluronic acid fruit brand. The beverage brand “Xuxiang Corner”, the brand pattern was initially opened, and the functional food business got a good start.
Emphasis on sustainable strategic investment
While vigorously developing its main business, Bloomage Bio will adhere to long-termism in 2021 and attach great importance to the strategic investment required for long-term sustainable development, including pre-production capacity layout, key capacity building, investment in basic research, incubation of new businesses, and equity incentives , brand building, etc.
In terms of research and development, in 2021, Bloomage Bio will adhere to long-termism, strengthen basic research and applied basic research, continue scientific and technological innovation with research and development strength, build high competition barriers and widen the moat. During the reporting period, R&D investment reached 284 million yuan, a year-on-year increase of 101.43%; the number of R&D personnel was 571, a year-on-year increase of 194; there were 239 research projects, an increase of 116 year-on-year; 89 invention patents have been authorized, an increase of 40 year-on-year. The company continues to strengthen its core scientific and technological capabilities and continues to lead the independent innovation of the biotechnology industry.12 new certifications and registration results for the company’s raw materials, newly obtainedmedical instruments2 items were registered, and 8 items of special cosmetics administrative licenses were newly obtained.
It is worth noting that Bloomage Bio will also focus on the deployment of cutting-edge biotechnology in 2021.”synthetic biologyScience” field. “Bioactives in Shandong Provincesynthetic biology“Key Laboratory of Science and Technology” was recognized by the Shandong Provincial Department of Science and Technology in December 2021. It is built by combining the company’s own advantages.synthetic biologyTechnology International Innovationnew industry“Base” has settled in Beijing Daxing Biomedical Base and will be put into use soon. The synthetic biology research and development team has been initially established and the technology platform has been established.
In 2021, the company will further consolidate the company’s development logic of “science → technology → product → brand”, and will carry out new production capacity and new platform layout for the future, including Tianjin factory, Huaxi Bio (Haikou) Science and Technology Industrial Park, Dongying Aseptic Workshop, etc. Taking Industry 4.0 as the starting point, it is carrying out digital fine management, reducing costs and increasing efficiency, and realizing digital industrial upgrading.
According to the company, these measures will be of great significance for the company to widen its moat, continuously consolidate its core competitiveness, continue to expand its leading edge and acquire new strategic opportunities, and will gradually produce direct contributions to its operations in the next 2-5 years.
The annual report shows that in the future, Bloomage Bio will adhere to the innovative development law of scientific discovery, technological invention, industrial development and ecological optimization. The results are quickly transformed into industrialization, fully empowering the development of the industry, and embarking on a high-quality development path with the characteristics of scientific and technological innovation.
(Article source: ChinasecuritiesReport · China Securities Network)