Bloomage Biotechnology Corporation Limited(688363) ( Bloomage Biotechnology Corporation Limited(688363) . SH) announced on March 11 that in 2021, the company achieved an operating revenue of 4.948 billion yuan, an increase of 87.93% year-on-year; The net profit attributable to the shareholders of the parent company was 782 million yuan, an increase of 21.13% year-on-year; The net cash flow from operating activities was 1.276 billion yuan, an increase of 80.79% year-on-year.
The reporter of the economic information daily noted that although Bloomage Biotechnology Corporation Limited(688363) last year’s operating revenue hit a record high, due to the sharp increase in operating costs and period expenses, the growth rate of the company’s profit was lower than that of revenue, the gross profit margin of sales decreased by 4.11 percentage points year-on-year, and the net profit margin of sales fell for three consecutive years, reaching a record low.
operating revenue growth hit a record high
Bloomage Biotechnology Corporation Limited(688363) main business is R & D, production and sales of raw materials of bioactive substances such as hyaluronic acid and terminal products of biomedical materials; The company’s main products are sodium hyaluronate, sodium hyaluronate, sodium hyaluronate 1% solution, enzyme oligomeric sodium hyaluronate and other products.
According to the data, the year-on-year growth of Bloomage Biotechnology Corporation Limited(688363) operating revenue and revenue in 2021 reached a record high.
In terms of products, in 2021, Bloomage Biotechnology Corporation Limited(688363) operating revenue mainly comes from raw materials, medical end products and functional skin care products. Overall, the operating revenue of the company’s three major categories of products increased during the period, especially functional skin care products, with an operating revenue of 3.319 billion yuan, a year-on-year increase of 146.57%. During the reporting period, the total operating cost of the company was 4.166 billion yuan, a year-on-year increase of 116.36%, a record high.
However, during the reporting period, the increase in operating costs of the company’s three major categories of products far exceeded the increase in revenue. Among them, the operating costs of raw material products, medical end products and functional skin care products during the period were 252 million yuan, 126 million yuan and 698 million yuan respectively, with a year-on-year increase of 63.23%, 41.22% and 186.20% respectively.
Bloomage Biotechnology Corporation Limited(688363) said that the cost of the company’s main business increased with the increase of sales revenue, and the company did not give a detailed explanation.
Specifically, during the reporting period, the operating cost of the company’s raw materials and products totaled 252 million yuan, a year-on-year increase of 63.23%. The operating cost of raw material products consists of material cost, labor cost, manufacturing cost and freight. The manufacturing cost accounts for the largest proportion, and the material cost increases the most. The material cost corresponding to raw material products is 942692 million yuan, an increase of 86.25% year-on-year.
The total operating cost of functional skin care products during the reporting period was 698 million yuan, with a year-on-year increase of 186.20%. From the perspective of the composition of the operating cost of the product, the manufacturing cost during the period was 189 million yuan, with a year-on-year increase of 188.02%.
Bloomage Biotechnology Corporation Limited(688363) said that during the reporting period, according to the accounting standards, the company adjusted the freight to operating cost accounting from 2021. The freight included in the operating cost in 2021 is 128 million yuan.
net profit margin on sales has declined for three consecutive years
It is worth noting that in 2021, Bloomage Biotechnology Corporation Limited(688363) although the operating revenue hit a record high, the profit growth rate was lower than the revenue growth rate.
The company said that the reason why the profit growth rate was lower than the income growth rate during the reporting period was mainly that the company adhered to the long-term principle and attached great importance to the strategic investment required for long-term sustainable development, including capacity layout, key capacity construction, basic research investment, new business incubation, equity incentive, brand construction and so on. The above strategic investment has little contribution to short-term performance, but it is of great significance for the company to broaden the moat, continuously consolidate its core competitiveness, continuously expand its leading advantages and obtain new strategic opportunities. It will gradually make a direct contribution to the operation in the next 2-5 years.
The reporter of economic information daily noted that while the profit growth rate was lower than the revenue growth rate, the company’s net sales interest rate fell for three consecutive years, reaching a record low of 15.67% in 2021; The gross profit margin of the company’s sales in 2021 was 78.07%, a year-on-year decrease of 4.11 percentage points.
Specifically, in 2021, the company’s raw material products achieved an operating revenue of 905 million yuan, a year-on-year increase of 28.62%, accounting for 18.29% of the company’s main business revenue, with a gross profit margin of 72.19%, a year-on-year decrease of 5.9 percentage points; The operating income of medical terminal products was 700 million yuan, with a year-on-year increase of 21.54%, accounting for 14.15% of the company’s main business income, and the gross profit margin was 82.05%, with a year-on-year decrease of 2.5 percentage points; The operating revenue of functional skin care products was 3.320 billion yuan, a year-on-year increase of 146.57%, and the gross profit margin was 78.98%, a year-on-year decrease of 2.91 percentage points.
sales expenses hit a record high
In terms of period expenses, the company’s period expense rate has shown an upward trend in recent years. According to the data, in 2021, the expense rate of Bloomage Biotechnology Corporation Limited(688363) period reached a new high of 61.10%.
Specifically, the company’s sales expense was 2.436 billion yuan, a year-on-year increase of 121.62%; The company’s administrative expenses were 303 million yuan, an increase of 87.28% year-on-year; Mainly due to the increase of management personnel, resulting in the increase of employee salary; The company implemented the equity incentive plan this year, and the equity incentive fee increased; With the growth of the company’s scale, the daily operating expenses such as office and conference expenses, service expenses and entertainment expenses have increased. The financial expenses of the company are -494700 yuan.
In addition, the company’s R & D expenses were RMB 284 million, an increase of 101.43% over 2020. This is mainly because the number of R & D projects in this period reached 239, an increase of 94.31% over the same period.
The reporter of economic information daily noted that the company’s sales expenses hit a record high. During the reporting period, the company’s sales expenses were mainly used for the advertising expenses and market development expenses of the company’s functional skin care products.
Bloomage Biotechnology Corporation Limited(688363) said that the increase in sales expenses was mainly due to the increase in employee compensation caused by the increase in sales personnel in order to meet the needs of the company’s sales business expansion during the reporting period. At the same time, the sales revenue increased significantly, the performance of functional skin care products increased rapidly, and the performance rewards of sales personnel increased.
According to the data of choice, Bloomage Biotechnology Corporation Limited(688363) has continued to decline since it hit a record high of 314.58 yuan / share on July 5, 2021. By March 11 (closing price of 114.48 yuan / share), it has decreased by 58.95%, 27.40% in the same period and 5.94% in the market.
Bloomage Biotechnology Corporation Limited(688363) said that the company planned to distribute a cash dividend of 4.90 yuan (including tax) to all shareholders for every 10 shares, and the total amount of cash dividend is expected to be 235 million yuan, accounting for 30.06% of the net profit attributable to shareholders of Listed Companies in the consolidated statements of the company in 2021.
