Work report of the board of directors in 2021
In 2021, the board of directors of Sino Biological Inc(301047) (hereinafter referred to as “the company”) strictly followed the company law of the people’s Republic of China (hereinafter referred to as “the company law”), the securities law of the people’s Republic of China (hereinafter referred to as “the securities law”) and other laws and regulations, as well as the articles of association and other relevant provisions, in order to effectively safeguard the legitimate rights and interests of the company and shareholders, especially minority shareholders, Conscientiously perform their duties, implement the resolutions of the general meeting of shareholders, actively promote the development of the company’s businesses and standardize corporate governance. The work report of the board of directors in 2021 is as follows:
1、 Operation in 2021
In 2021, the global epidemic continued to spread. The company adhered to the consistent down-to-earth and rigorous style, relying on the comprehensive strength of the global layout and the advantages of the core technology platform, carried out various work around the annual business objectives, orderly promoted product R & D and production, actively carried out sales promotion, and continuously optimized cost control. In 2021, the company realized an operating revenue of 965 million yuan, a year-on-year decrease of 39.53%, including 359 million yuan of non covid-19 virus related business revenue, a year-on-year increase of 41.41%; The net profit attributable to shareholders of listed companies was 720 million yuan, a year-on-year decrease of 36.15%; The net cash flow from operating activities was 642617800 yuan, a year-on-year decrease of 41.20%. The overall performance decline of the company in 2021 was mainly due to covid-19 virus related business, which maintained a sustained and rapid growth due to the impact of epidemic changes, prevention and control policies, market competition and other factors.
In 2021, adhering to the business tenet of “adhering to independent development, continuously improving the technical level, providing high-quality reagents and service support for global life science research and biomedical innovation and research, and helping to promote the development of health and benefit mankind”, the company carried out various work around the annual business objectives, orderly promoted product R & D and production, and actively carried out sales promotion, We continued to optimize cost control, non covid-19 virus related businesses continued to grow rapidly, the scale of revenue increased significantly, and maintained a good long-term development trend.
In 2021, the company’s key work is as follows:
(1) Realize the listing of A-share gem
On August 16, 2021, the company successfully landed on the growth enterprise market of Shenzhen Stock Exchange, publicly issued 17 million shares, raised a total of 4.980 billion yuan and a net amount of 4.724 billion yuan, which was used for the biological reagent R & D center project, the global marketing network construction project and supplementing the company’s working capital. Among them, the implementation of biological reagent R & D center project will help to further improve the company’s R & D capacity and improve the richness of product library and product line; The implementation of the global marketing network construction project will help to further enhance the company’s promotion and marketing ability in the global market and improve the comprehensive service ability of customers; The supplementary working capital project will ensure the smooth implementation of the company’s normal operation and business development plan. The company will make full use of the opportunity of listing, further strengthen independent research and development, expand and optimize the existing product line, strengthen the construction of global marketing network, provide overall solutions for the biomedical industry and life science research field, provide customers with more and better products, and build China’s own high-level support platform for biological reagents, Build a world-class biotechnology enterprise.
(2) Set up subsidiaries in Taizhou, Suzhou and Japan
On September 16, 2021, the company signed the admission agreement with the Management Committee of Taizhou pharmaceutical high tech Industrial Park and established a wholly-owned subsidiary Sino Biological Inc(301047) (Taizhou) Technology Co., Ltd. in Taizhou pharmaceutical high tech Industrial Park. It is mainly engaged in the R & D, production and sales of biological reagents represented by culture medium, protein and antibody diagnostic raw materials. On November 23, 2021, the company signed the project investment agreement with the Management Committee of Suzhou New District Hi-Tech Industrial Co.Ltd(600736) Technology Industry Development Zone to establish Sino Biological Inc(301047) (Suzhou) Biotechnology Co., Ltd. it plans to set up a South R & D center and a testing service center focusing on the detection of cell quality and biosafety of biological products in Suzhou New District Hi-Tech Industrial Co.Ltd(600736) zone.
On November 29, 2021, a wholly-owned subsidiary in Japan completed its establishment registration, mainly responsible for the sales of biological reagents in Japan and South Korea, further improving the company’s global marketing network layout and enhancing the company’s market development and service capabilities.
(3) Continue the advantages of R & D and support the global anti epidemic
In order to support the global scientific and technological anti epidemic work, the company has been paying close attention to the variation of covid-19 virus, continuously following up the market demand and developing relevant genes, proteins, antibodies and other biological reagents. In 2021, a total of 323 covid-19 related biological reagents were newly developed and launched, covering 33 major variant strains. The product coverage has always been in a leading position among the world’s mainstream Biological Reagent Suppliers.
For the Omicron mutant strain that triggered a new wave of global epidemic, the company’s team continued to carry forward the fighting spirit of taking the lead in completing the R & D and production of covid-19 virus key protein reagents in 11 days in 2020, give full play to the advantages of its own technical platform and constantly break through the technical limit. In 2021, a series of work from molecular construction to cell culture, protein purification and quality verification were completed in only 6 days, and Omicron was successfully produced
The mutant RBD protein reagent was studied by relevant institutions, which fully demonstrated the technology of the enterprise
Technical platform advantages and social responsibility. After that, the company developed trimeric protein
A series of related biological reagents such as antibodies and Pseudoviruses support global virus research, drugs, vaccines and diagnostic tests
The covid-19 virus key tool reagent made in Beijing, China has once again led the development of covid-19 virus, contributing to global scientific research
Epidemic prevention.
(4) Continuously expand the field of technical service business and maintain rapid growth
In 2021, the company will further strengthen R & D and market promotion, expand the field of technical service business, and
While holding the previous main protein and antibody expression service business, it also focuses on antibody development, virus clearance verification and cell
The technical service success rate and customer satisfaction represented by the library testing business have been continuously improved, and the business has shown rapid growth,
The overall cro service increased by 73.69% year-on-year, and some businesses increased by more than 100%, which is important for better meeting market needs
The company has laid a good foundation for supporting the long-term sustainable development of the company.
(5) Continuously build a high-quality and large-scale technical and management team
As of December 31, 2021, the company has 495 employees, including master’s degree and doctoral degree
There are 157 employees, including 15 employees represented by Dr. Yang Jiahui, head of R & D, who were selected in Beijing in 2021
Leading talents, high skilled talents and excellent talents in the economic and Technological Development Zone. The company has established an overseas high-level team
R & D and management with rich experience, reasonable structure and strong professional and technical ability as the core
The company’s sustainable development is guaranteed by a strong team of talents.
2、 Daily work of the board of directors in 2021
(I) convening of the board of directors
During the reporting period, the board of directors of the company held 6 meetings, with 9 board members, including independent directors
All three attended all the meetings of the board of directors in person and raised no objection to the proposal submitted to the board of directors for deliberation. Dong
All directors of the board of directors were diligent and conscientious, and earnestly performed the duties entrusted by the company law and the articles of association.
During the reporting period, the board of directors of the company held a meeting of the board of directors. The specific contents are as follows:
No. date of convening session resolution
The first director 1 Deliberated and passed the proposal on Sino Biological Inc(301047) 2018 annual audit report, 2019 annual audit report and 2020 annual audit report of the seventh session of the general meeting in March 2021;
February 12 Deliberated and passed the proposal on Sino Biological Inc(301047) internal control assurance report “;
1. Deliberated and passed the proposal on the prediction of daily connected transactions in 2021;
2. Deliberated and adopted the proposal on the work report of the board of directors in Sino Biological Inc(301047) 2020;
3. Deliberated and adopted the proposal on the work report of the first board of directors of Sino Biological Inc(301047) 2020 general manager;
2. The eighth meeting of the conference in June 2021 4 Deliberated and passed the proposal on the financial 10 day resolution report of Sino Biological Inc(301047) 2020;
5. Deliberated and passed the proposal on Sino Biological Inc(301047) 2021 annual financial budget report;
6. Deliberated and passed the proposal on Sino Biological Inc(301047) 2020 profit distribution plan;
7. The proposal on convening the 2020 annual general meeting of shareholders of the company was deliberated and adopted.
1. The proposal on extending the validity period of the proposal on the company’s application for initial public offering of RMB common shares and listing of the first directors (A shares) on gem on June 11, 2021 was deliberated and adopted;
The 9th meeting of the 3rd meeting The proposal on extending the authorization period of the general meeting of shareholders to authorize the board of directors and its staff to handle matters related to the company’s initial public offering of RMB common shares (A shares) and listing on the gem was deliberated and adopted.
August 2021 the first director 1 The proposal on Sino Biological Inc(301047) the report of the 10th meeting of the semi annual meeting on April 26, 2021 and the summary of the semi annual report of Sino Biological Inc(301047) 2021 were deliberated and adopted.
1. Deliberated and adopted the proposal on using some over raised funds to permanently supplement working capital; 2. Deliberated and passed the proposal on using raised funds to replace self raised funds that have been invested in raised investment projects in advance and paid issuance expenses;
3. Deliberated and adopted the proposal of the first board of directors in September 2021 on the use of some temporarily idle raised funds for cash management;
May 13 11th meeting 4 Deliberated and passed the proposal on changing the company’s registered capital, company type, amending the articles of association, and handling the industrial and commercial change registration and the filing of the articles of Association;
5. Deliberated and approved the proposal on signing the admission agreement with Taizhou pharmaceutical high tech Industrial Park and establishing a wholly-owned subsidiary in the park;
6. The proposal on convening the second extraordinary general meeting of shareholders in 2021 was considered and adopted.
October 2021 the first director 1 Deliberated and passed the proposal on the company’s report for the third quarter of 2021;
The 12th meeting on June 26 Deliberated and passed the parliamentary bill on increasing the implementation subject and place of some raised investment projects.
(II) implementation of resolutions of the general meeting of shareholders by the board of directors
During the reporting period, the company held three general meetings of shareholders, and the board of directors of the company in accordance with the company law and the securities law
And other laws and regulations and the articles of association, perform their duties in strict accordance with the resolutions and authorizations of the general meeting of shareholders
All proposals at the shareholders’ meeting shall be fully considered and implemented to ensure that all proposals are fully implemented
The legitimate rights and interests of shareholders. The details are as follows:
No. date of convening
