Company code: Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) company abbreviation: Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should http://www.sse.com.cn. The website carefully reads the full text of the annual report. 2 major risk tips
Please refer to the details of the risks that the company may face in the production process described in Section III and Section IV of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 Dahua Certified Public Accountants (special general partnership) has issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The profit distribution plan for 2021 approved by the board of directors of the company is: the company plans to distribute profits based on the total share capital registered on the date of equity distribution, and plans to distribute cash dividends of RMB 2.65 (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 80000000 shares. Based on this calculation, the total cash dividend to be distributed is 2120000000 yuan (including tax). The company’s cash dividend accounts for 20.06% of the net profit attributable to the shareholders of the parent company in this year. After this profit distribution, the remaining undistributed profits are accumulated and distributed in future years. In 2021, the company did not give bonus shares and did not convert capital reserve into share capital. If the total share capital of the company changes before the date of equity distribution and equity registration, the company plans to keep the total distribution unchanged and adjust the distribution proportion per share accordingly.
The company’s profit distribution plan for 2021 has been deliberated and approved at the 16th meeting of the first board of directors, and needs to be submitted to the company’s 2021 annual general meeting for deliberation and approval. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange and sector stock abbreviation stock abbreviation before stock code change
RMB ordinary shares (A shares) Shanghai Stock Exchange Kechuang board Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) not applicable
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Zhao Lingyang, Wei Liping
Office address: No. 79, Shuangying West Road, science and Technology Park, Changping District, Beijing
Building 7, yard 7, 79 Yingxi Road
Tel: 0106074819901060748199
E-mail ir@sun -novo. com. ir@sun -novo. com.
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
The company is a professional cro of preclinical and comprehensive clinical research and development services of drugs, providing all-round one-stop drug research and development services for China Meheco Group Co.Ltd(600056) enterprises and scientific research institutions, and is committed to assisting China Meheco Group Co.Ltd(600056) manufacturing enterprises to accelerate the realization of import substitution and independent innovation.
The company’s main business covers comprehensive R & D services in innovative drug development, generic drug development and consistency evaluation. The service contents mainly include drug discovery, pharmaceutical research, pharmacological efficacy, clinical research and biological analysis. （2） Main business model
1. Profit model
By accepting the entrustment of customers, the company provides them with services such as drug discovery, pharmaceutical research, pharmacological efficacy, clinical research and biological analysis, cooperates with customers to apply for drug registration in accordance with the national drug registration management regulations, and finally assists customers to complete the development of target drugs. During the research process, the payment is usually collected in stages, and the revenue is recognized according to the research and development progress or when the final deliverables are delivered.
2. Procurement mode
The company’s external procurement mainly includes material procurement and service procurement. The materials purchased by the company mainly include test equipment, raw and auxiliary materials, experimental reagents, impurity reference materials, reference preparations, chromatographic columns, etc. required for pharmaceutical research and biological analysis services. The services purchased by the company mainly include the clinical trial service business, entrusting hospitals and other external institutions to implement the scheme, and also including the outsourcing implementation of a small number of links of pharmaceutical research service business.
3. Service mode
The services provided by the company are mainly divided into drug discovery, pharmaceutical research, pharmacological efficacy, clinical research and biological analysis. For a certain drug, the company can provide customers with comprehensive R & D services including all the above services, as well as one of them. All services of the company are customized.
According to the sources of R & D objects, the company’s projects are divided into customer designated projects and company independent projects. The project designated by the customer refers to the R & D object selected by the customer, and the company accepts the entrustment to provide R & D services for it; Independent project initiation of the company refers to that the company selects the R & D target with good market prospect, makes its own investment in the early stage and counts it into the R & D cost, selects the opportunity to recommend it to the customer after the development reaches a certain stage, and accepts the customer’s entrustment to continue to provide R & D services.
4. Marketing mode
The drug R & D services provided by the company mainly adopt the direct sales business model, which is also the general practice of the industry in which the company is located. The pharmaceutical research, clinical trials and bioanalytical Services engaged by the company are closely related and have a linkage relationship. The marketing of the company adopts the “big business” method to uniformly manage the business of the parent and subsidiary companies, that is, the marketing personnel of the parent and subsidiary companies are uniformly managed by the business Information Center under the company, and the business information center carries out project development and customer relationship maintenance.
The company seeks business cooperation opportunities in various ways. In the customer negotiation stage of the project, the personnel of the business information center are responsible for in-depth contact with potential customers to understand their R & D needs. If necessary, the R & D department will assist in negotiation and provide customized solutions for customers; When the project enters the scheme formulation and quotation stage, the company meets the customized needs of customers through the collaborative work of business information center, project implementation department and technical support department. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
The company’s main business covers the comprehensive R & D services of innovative drug development, generic drug development and consistency evaluation. The service contents mainly include drug discovery, pharmaceutical research, pharmacological efficacy, clinical research and biological analysis. According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the company belongs to “M73 research and experimental development” under “m scientific research and technical service industry”.
As an external resource that can be borrowed by pharmaceutical manufacturing enterprises, cro company can quickly organize a highly specialized and experienced research team in a short time after accepting the entrustment of customers, so as to help pharmaceutical manufacturing enterprises accelerate the progress of drug R & D, reduce drug R & D expenses and realize high-quality research. The complexity, long-term nature and high investment of pharmaceutical R & D activities have led to the rise of cro, an emerging industry. The rapid development of the pharmaceutical industry has accelerated the rapid growth of cro industry.
After nearly 50 years of development, the foreign cro industry has gradually matured, cultivated a large market scale, and formed a complete business process system. Large cro companies such as iqvia, Covance, PPD, Charles Rivers labs and parexel have emerged, It occupies most of the market share of the international cro industry. China’s cro industry rose relatively late, but it has a strong momentum of development in recent years. With the loose policy on innovative drugs, the transfer of international cro demand and other macro environment changes, it has grown rapidly. Local cro companies such as Wuxi Apptec Co.Ltd(603259) , Pharmaron Beijing Co.Ltd(300759) , Hangzhou Tigermed Consulting Co.Ltd(300347) , Boji Medical Technology Co.Ltd(300404) , Shanghai Medicilon Inc(688202) , which were established earlier, have strong market competitiveness in the Chinese market. In the preclinical stage, Wuxi Apptec Co.Ltd(603259) , Pharmaron Beijing Co.Ltd(300759) , Joinn Laboratories (China) Co.Ltd(603127) , Shanghai Medicilon Inc(688202) and other major preclinical cro enterprises have strong strength to directly participate in international competition.
Based on the characteristics that cro enterprises help to improve the success rate of R & D, reduce the R & D cost and shorten the R & D cycle in the R & D of new drugs, the recognition of pharmaceutical enterprises has increased, and the penetration rate of the global cro industry is also steadily increasing; At the same time, the scale of the global pharmaceutical market continues to grow, and the number of new drugs under research continues to grow, which also promotes the rapid expansion of the scale of the global cro industry. According to Sullivan’s data, the global cro market is expected to grow at a compound rate of 64.1% from 2016 to 2021, with a growth rate of 6.8 billion US dollars.
China’s cro industry is an emerging industry developed in recent 20 years. At present, China’s cro industry as a whole presents a multi, small and scattered pattern, and the industry concentration is relatively low. Under the background that China Meheco Group Co.Ltd(600056) policy encourages the development from generic drugs to innovative drugs, China’s regulatory level is in line with international standards, and attracts the transfer of international pharmaceutical R & D demand, the scale of China’s cro market has expanded rapidly. In addition, the China Meheco Group Co.Ltd(600056) industry is in the golden age of independent innovation, and the investment in pharmaceutical R & D continues to increase. According to the data of evaluatepharma, the investment in China Meheco Group Co.Ltd(600056) R & D will reach US $29.2 billion by 2021, with a compound growth rate of about 22.1% from 2016 to 2021, which will continue to drive the rapid development of cro industry. Frost & Sullivan’s report predicts that the size of China’s cro market will rise from US $6.8 billion in 2019 to US $22.2 billion in 2024, with a compound annual growth rate of about 26.5%. In the future, with the accelerated release of China’s demand for innovative drug research and development, the cro industry will usher in a golden opportunity for sustained growth. 2. Analysis of the company’s industry position and its changes
Founded in 2009, the company is one of the first CrO (contract research organization) companies in China to provide drug R & D services.
The company has 36000 square meters of R & D laboratories, of which 18300 square meters have been put into use and 17700 square meters are under construction. The company has internationally advanced instruments and equipment, as well as a number of scientific research backbone and talent teams with rich experience in pharmaceutical R & D at home and abroad, which provide strong support for drug R & D. By the end of the reporting period, the company had 873 employees, including 716 R & D personnel, accounting for 82.02% of the total number of employees; 568 people with bachelor degree or above, accounting for 79.33% of R & D personnel; Among them, there are 111 masters and doctors, accounting for 15.50% of R & D personnel.
After years of continuous investment, integration and development, the company has successively built and established a comprehensive service technology platform integrating compound synthesis, compound activity screening, pharmaceutical research, pharmacodynamic evaluation, pharmacokinetics, clinical trials and biological analysis. The company has gradually developed into a pre clinical and clinical comprehensive R & D service cro with strong market competitiveness in China. 3. Development and future development trend of new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business forms and new models during the reporting period
(1) Drug R & D expenditure continued to increase, and the penetration rate of cro in new drug R & D increased simultaneously
As an industry with rigid demand, the overall global demand for drugs is very strong. Drug R & D is an important driving factor for the development of the pharmaceutical industry. Since the 21st century, pharmaceutical enterprises have been increasing their investment in drug R & D. According to evaluatepharma data, global pharmaceutical R & D expenses will increase from US $165.1 billion in 2017 to US $203.9 billion in 2024, with a compound growth rate of 3.1% China Meheco Group Co.Ltd(600056) industry is in the golden age of independent innovation. The overall scale of pharmaceutical R & D directly affects the development of cro. According to the data forecast of evaluatepharma, China Meheco Group Co.Ltd(600056) R & D investment will grow at a compound rate of about 22.1% from 2016 to 2021, which will continue to drive the rapid development of cro industry.
Based on the characteristics that cro enterprises help to improve the success rate of R & D, reduce the R & D cost and shorten the R & D cycle in new drug R & D, the recognition of pharmaceutical enterprises continues to improve, and the penetration rate of the global cro industry is also steadily increasing. According to Frost & Sullivan’s statistics, the penetration rate of R & D outsourcing services to China’s total R & D expenditure continued to increase from 26.2% in 2014 to 32.3% in 2018, and is expected to increase to 46.7% in 2023.
(2) Pharmaceutical policies encourage the development from generic drugs to innovative drugs, and China’s cro industry ushers in development opportunities
The pharmaceutical industry is characterized by strong policy orientation. In the early China Meheco Group Co.Ltd(600056) market, generic drugs are mainly used, the R & D power of innovative drugs is insufficient, and the demand of cro market is relatively low. In recent years, a series of policies issued at the national level have promoted the research and development of innovative drugs in China, promoted the upgrading of the pharmaceutical industry from imitation to independent innovation, and the rapid increase in the demand for innovative drug services has driven the rapid development of China’s leading cro enterprises. From consistency evaluation
