Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd
Work report of the board of directors in 2021
In 2021, the board of directors of Changchun High And New Technology Industries (Group) Inc(000661) technology industry (Group) Co., Ltd. (hereinafter referred to as “the company”) strictly complied with the company’s justice, securities law and other laws and regulations and the articles of association in the face of the severe impact of the intensive introduction of pharmaceutical and real estate adjustment and reform policies and the alternating outbreak of covid-19 pneumonia, Focusing on the company’s medium and long-term development plan and annual business objectives, strictly perform the responsibilities entrusted by the general meeting of shareholders, diligently carry out various work of the board of directors, deepen corporate governance, standardize the company’s operation, effectively safeguard the legitimate rights and interests of the company and all shareholders, and ensure the good operation and sustainable development of the company. The main work of the board of directors in 2021 is reported as follows:
1、 Overall operation of the company during the reporting period
In 2021, the company adhered to the innovation driven industrial development strategy dominated by biomedicine, and adhered to the business principle of “sufficient stock and fine increment”. Its business performance improved steadily and grew against the trend, and its revenue exceeded 10 billion for the first time; International projects have been implemented, the construction of multiple production bases has been fully started, R & D investment has been continuously increased, and breakthroughs have been made in multiple products under research Changchun Bcht Biotechnology Co(688276) successfully landed on the science and innovation board, creating a new model for the company’s capital operation.
(I) operating performance
During the reporting period, the company and its subsidiaries operated steadily, the internal management level reached a new level, and the income and net profit of key pharmaceutical enterprises continued to grow. The company achieved an operating revenue of 10.747 billion yuan, an increase of 25.30% over the same period last year; The net profit attributable to shareholders of listed companies was 3.757 billion yuan, a year-on-year increase of 23.33%.
The subsidiary kinsay pharmaceutical achieved a revenue of 8.198 billion yuan and a net profit of 3.684 billion yuan attributable to the owner of the parent company in the reporting period. During the reporting period, kinsay pharmaceutical focused on the core business of Pediatrics, focusing on growth and development, with a comprehensive layout, including height management, sexual development, immunity, newborn, child protection, child neuropsychiatry and other pediatric fields; At the same time, combined with the existing product layout, we will strengthen the incubation of non growth hormone products and new business development, and actively promote the R & D of new projects and new products such as recombinant human follicle stimulating hormone CTP fusion protein injection, IL-2 (recombinant human interleukin-2 mutant), eg017 (selective androgen receptor regulator), neonatal EEG, diagnosis and drugs for Alzheimer’s disease Introduce progress and strive to expand the fields of tumor immunity, gynecology, senile diseases and so on
The subsidiary Changchun Bcht Biotechnology Co(688276) realized a revenue of 1.202 billion yuan and a net profit of 244 million yuan attributable to the owner of the parent company during the reporting period. During the reporting period, covid-19 epidemic and covid-19 vaccination had a certain impact on the vaccination rate of other vaccine products. Especially in the second half of 2021, on the basis of continuous covid-19 vaccination for people over the age of 18, covid-19 virus vaccination for people aged 3-17 has been launched all over the country, which has greatly affected the promotion and vaccination of Changchun Bcht Biotechnology Co(688276) main products live attenuated varicella vaccine and freeze-dried nasal spray live attenuated influenza vaccine in the short term. The more prominent impact is the promotion and vaccination of influenza vaccine. The vaccination of influenza vaccine has a strong seasonality, and the applicable population of nasal spray influenza vaccine in Changchun Bcht Biotechnology Co(688276) is 3-17 years old, which highly coincides with the key population of covid-19 vaccination in the same period, resulting in a great impact on the vaccine promotion in the overall influenza season.
The subsidiary Huakang pharmaceutical achieved a revenue of 642 million yuan and a net profit of 43 million yuan attributable to the owner of the parent company during the reporting period. During the reporting period, the price system and recruitment criteria of Huakang pharmaceutical’s core products continued to remain stable, two pharmaceutical varieties entered the medical insurance catalogue, Yinhua Biyanling tablet won the second prize of provincial scientific and technological progress award, and completed the change of marketing license holders of 8 products such as Xiaoer jianweining oral liquid, Shenjin tablet, Kangxin oral liquid and compound Chuangui tincture, It has promoted the implementation of investment related to Ruilong pharmaceutical, continuously enriched the types of traditional Chinese medicine products of the company, and created good conditions for the development of the whole industrial chain.
The subsidiary hi tech real estate realized an income of 663 million yuan and a net profit of 86 million yuan in the reporting period. During the reporting period, affected by the overall inflection point of the real estate market, the commercial sales of the real estate industry were blocked. In order to overcome the impact of relevant adverse factors, high tech real estate strives to improve owner satisfaction, adhere to the self-development path of market differentiation, continue to transform to high-end brands, accelerate the construction, sales and leasing of residential and office buildings in Hairong Plaza, and strive to ensure stable and orderly production and operation.
(II) product development
During the reporting period, the company actively promoted scientific and technological innovation R & D projects and made efforts to improve the company’s innovation ability. The existing growth hormone products of kinsay pharmaceutical, a subsidiary, have been added to several product specifications for children’s short stature caused by Noonan syndrome, children’s short stature or growth disorder caused by shox gene defect, children’s short stature caused by achondroplasia, and girls’ growth disorder caused by gonadal hypoplasia (Turner syndrome) Indications such as adult short bowel syndrome for nutritional support, indications for the treatment of idiopathic short stature (ISS) and Prader Willi syndrome (PWS) have been included in the list of priority reviewed varieties by the State Food and Drug Administration and are expected to be approved in 2022; Kintolizumab injection reported by both China and the United States has been recognized as an orphan drug by FDA; The subsidiary Changchun Bcht Biotechnology Co(688276) continued to increase R & D investment, completed the clinical research of live attenuated herpes zoster vaccine, obtained the clinical approval and started the clinical research of nasal influenza vaccine (liquid preparation), started the clinical research of acellular DPT (three component) combined vaccine, and accelerated the R & D Progress of key projects under research such as all human anti rabies monoclonal antibody.
(III) project construction
During the reporting period, the company actively coordinated and promoted the construction of relevant projects of its subsidiaries. The main body of some individual buildings in the construction project of jinshai Pharmaceutical International Industrial Park has been capped, and the capacity improvement of relevant workshops of Jilin jinpaige Pharmaceutical Co., Ltd. has been continuously promoted Changchun Bcht Biotechnology Co(688276) fund raising construction projects have been carried out in an orderly manner, and the construction of live attenuated varicella vaccine with an annual output of 20 million people, live attenuated herpes zoster vaccine project, adsorbed acellular DPT (three component) combined vaccine project with an annual output of 6 million people, and live attenuated influenza nasal spray vaccine (liquid preparation) project with an annual output of 10 million people have been completed; The construction of rabies vaccine and Hib vaccine projects with an annual output of 3 million copies of rabies vaccine and 3 million copies of Hib vaccine will be completed as planned; The construction project of kemes chemical base was officially started, and the warm closure was basically completed; The construction of Anwo hi tech antibody drug R & D and production base is continuously promoted, the pilot workshop is initially qualified to undertake technology transfer, and the technical documents are in the process of transfer; Shanghai Ruizhou has completed the construction of pilot workshop near the port, laying the foundation for the follow-up research and development of relevant products; The construction of Guangzhou sianxin pilot workshop is smooth, and relevant key product research and development has been started.
(IV) capital operation
During the reporting period, the subsidiary Changchun Bcht Biotechnology Co(688276) was officially listed on the science and Innovation Board of Shanghai Stock Exchange on June 25, 2021, and successfully raised 1.5 billion yuan for innovation and R & D, plant construction, etc., opening up a new path for the company’s capital operation, realizing capital accumulation and fission effect, which will help the later development of the enterprise and improve the comprehensive strength of the enterprise.
During the reporting period, according to the proposal of the controlling shareholder of the company, and based on the confidence in the future development prospect of the company and the basic judgment on the internal value of the company, the company launched and completed the stock repurchase in the secondary market; At the same time, the company has made it clear that the repurchase will be used for equity incentive of core and backbone employees, further establish and improve the company’s long-term incentive mechanism, fully mobilize the enthusiasm of the company’s employees, effectively combine the interests of shareholders, the company and employees’ personal interests, and promote the healthy and sustainable development of the company.
(V) Investor Relations
During the reporting period, the company further strengthened the management of investor relations, and transmitted the company’s development strategy, market expansion, production and operation and other basic information to investors through regular online performance briefing, investor collective reception day, investor research, participation in institutional investment strategy meeting, anti roadshow and other forms, Timely conduct full and efficient communication on issues concerned by investors. During the reporting period, China fund news won the annual award of the most valuable investment company and the most favored public offering listed company in the selection of the first China listed company Jinglun Award; Won the top 100 high growth enterprise award, top 100 enterprise award and China moral enterprise award in the top 100 Summit Forum of Chinese listed companies.
2、 Daily work of the board of directors
(I) meetings of the board of directors during the reporting period
In 2021, the board of directors of the company convened and held 14 meetings of the board of directors in strict accordance with relevant laws and regulations, the articles of association and other relevant provisions, and deliberated on matters related to periodic reports, profit distribution, general election, provision of guarantees for subsidiaries and so on The voting results and the contents of the resolution comply with the relevant provisions of laws and regulations and the articles of association.
At the same time, in accordance with the requirements of relevant laws, regulations, rules and the articles of association, the board of directors of the company gave full play to its initiative and effectiveness, deliberated on the key issues of the company’s operation and development, fulfilled the decision-making responsibilities of the board of directors on the company’s foreign investment, salary incentive, share repurchase and other matters, and timely fulfilled the obligation of information disclosure in accordance with the regulations.
(II) implementation of resolutions of the general meeting of shareholders by the board of directors
In 2021, the board of directors actively promoted the important decisions made by the general meeting of shareholders in accordance with the requirements of the company law, the securities law and other relevant laws and regulations and the articles of association, and effectively protected the legitimate rights and interests of shareholders. The board of directors of the company convened five general meetings of shareholders. The general meeting of shareholders adopted the combination of on-site voting and online voting, and counted the votes of small and medium-sized investors separately, ensuring the participation and decision-making rights of small and medium-sized investors. The matters submitted by the board of directors to the general meeting of shareholders for deliberation were adopted.
(III) performance of special committees under the board of directors during the reporting period
The board of directors of the company has established four special committees: strategic decision-making committee, audit committee, nomination committee and salary and assessment committee, and formulated the implementation rules of each committee. During the reporting period, the responsibilities of each committee were clear and the overall operation was good, ensuring the efficient operation and scientific decision-making of the board of directors without other important opinions and suggestions.
(IV) performance of duties of independent directors during the reporting period
During the reporting period, the independent directors of the company performed their duties honestly, diligently and independently in strict accordance with relevant laws and regulations, the articles of association and the company’s working system for independent directors, actively attended the meetings of the board of directors and the general meeting of shareholders, carefully considered various proposals of the board of directors, and paid great attention to the company’s regular reports, foreign investment, related party transactions, salary incentives He expressed independent opinions on major issues such as share repurchase and actively and effectively performed the duties of independent directors. At the same time, independent directors give full play to their professional advantages, continuously improve the company’s supervision mechanism, further promote the standardized operation of the company, play a positive role in the scientific and objective decision-making of the board of directors and the benign development of the company, and play an important role in effectively safeguarding the legitimate rights and interests of the company and all shareholders.
3、 Future development plan of the company
(I) prospect of the company’s future development
In the face of the new situation and challenges such as Centennial changes and covid-19 epidemic, the company will unswervingly adhere to the industrial development strategy dominated by biomedicine, take the future sustainable and healthy development as the goal, comprehensively consolidate the foundation, accumulate development momentum, and adhere to scientific and technological innovation and model innovation to promote industrial development; Carry out project cooperation from an international perspective and based on the frontier field of pharmacy, and actively improve the construction of existing platforms; Based on the fundamental principle of “sufficient stock and fine increment”, continue to increase investment in scientific and technological innovation and build a scientific and reasonable industrial layout; Constantly improve and optimize the governance system, promote standardized operation, implement talent reserve, do a good job in echelon construction, strive to improve the quality of development, improve business efficiency, and realize the continuous growth of enterprise scale and comprehensive strength.
1. Focus on the main business and cultivate new economic growth points
The company will focus on the layout of genetic engineering drugs, biological vaccines, antibody drugs, high-end chemical drugs and modern traditional Chinese medicine, consolidate the market foundation, improve operation efficiency, tap the potential of existing leading products, deepen product coverage, expand product brand, market and technical advantages, increase the proportion of income of high-end products, and increase new indications such as adult growth hormone deficiency and medical devices Promote new products such as women’s health, children’s nutrition, wound healing and vaccines, strive to cultivate new economic growth points, and ensure the steady growth of enterprise benefits.
2. Innovation driven, leading the high-quality development of enterprises
The company will be guided by market demand, adhere to innovation driven, continue to increase R & D investment, actively promote the process of research projects in new fields, do a good job in the development of old varieties and new indications, upgrade the R & D of alternative products, improve R & D efficiency, and speed up the development of live attenuated herpes zoster vaccine, freeze-dried human rabies vaccine (Vero cells) Research and development progress of nasal spray live attenuated influenza vaccine (liquid dosage form), adsorbed acellular DPT (three component) combined vaccine, rituximab injection, rituximab injection, ginazumab for injection and other products at various stages; Increase investment in frontier areas of scientific and technological innovation, and promote the high-quality development of the company through internal R & D and external introduction of two wheel drive.
3. Optimize the layout and continue to promote the project construction
The company will actively carry out the design, construction and technology transfer of Kinsey Pharmaceutical Industrial Park project, Changchun Bcht Biotechnology Co(688276) vaccine Industrial Park and production base project, kemes high-end chemical drug base project, Ruizhou biological vaccine base project and Anwo high tech antibody drug base project, and continue to promote the smooth transformation of international project products, Scientific planning of production capacity; On the premise of conforming to the overall strategic policy, we will integrate internal resources and optimize the allocation to ensure the landing and transformation efficiency of projects and products; We will actively expand project cooperation channels, enrich the group’s strategic platform, strengthen project post investment management, continuously pay attention to the project progress, evaluate the achievement of the project, and strive to ensure the expected investment benefits.
4. Mechanism innovation to ensure the realization of long-term goals
The company will continue to implement a comprehensive market-oriented management system, respect and follow the development law of market economy, give play to the leading role of the market, and stimulate organizational vitality, improve combat effectiveness and increase enterprise vitality with good system design; We will adhere to the market-oriented employment system with equal emphasis on incentives and constraints, and establish and improve it
