On March 25, Dong-E-E-Jiao Co.Ltd(000423) ( Dong-E-E-Jiao Co.Ltd(000423) ) was released. The 2021 annual report showed that last year, the company achieved a total operating revenue of 3.849 billion yuan, a year-on-year increase of 12.89%, and a net profit attributable to the parent company of 440 million yuan, a year-on-year increase of 917.43%; The non net profit deducted was 352 million yuan, with a year-on-year increase of 391 million yuan; The accumulated net cash flow from operating activities was 2.801 billion yuan, an increase of 2 billion yuan year-on-year. The company plans to distribute a cash dividend of 6.5 yuan (including tax) to all shareholders for every 10 shares.
For the growth of operating revenue, Dong-E-E-Jiao Co.Ltd(000423) said that the sales of the company’s main products rebounded in 2021, and the drug business increased by 510 million yuan year-on-year; Taohuaji’s growth led to a year-on-year increase of 56 million yuan in the revenue of health products of its subsidiary; Affected by the contraction of the scale of breeding trading business, the income of the breeding sector decreased by 118 million yuan year-on-year.
In terms of products, in 2021, Dong-E-E-Jiao Co.Ltd(000423) donkey hide gelatin and series products, other drugs and health products, donkey breeding and sales, and other products accounted for 88.20%, 5.56%, 4.64% and 1.59% of the company’s total revenue respectively.
By region, East China accounted for the largest proportion of revenue in Dong-E-E-Jiao Co.Ltd(000423) in 2021, accounting for 44.60%, followed by South China, central China, Southwest China and North China, accounting for 15.39%, 11.48%, 11.05% and 10.76% respectively.
For the increase in net profit, the company said that it was mainly due to the impact of the parent company’s income growth of 510 million yuan and the increase of gross profit margin by 6.47 percentage points, which affected the increase in net profit of 420 million yuan.
In terms of the increase of operating cash flow, the company’s annual report shows that the sales collection increased by 1.546 billion yuan, mainly due to the increase of collection in 2021 and cross year acceptance in 2020, the cash inflow from operating activities and the decrease of purchase payment funds by 471 million yuan.
It is worth mentioning that in 2021, Dong-E-E-Jiao Co.Ltd(000423) R & D investment was about 148 million yuan, a year-on-year decrease of 3.83% compared with 154 million yuan in the same period of last year. By the end of 2021, the number of R & D personnel of the company had been 301 and 334 in 2020, a year-on-year decrease of 9.88%.
Dong-E-E-Jiao Co.Ltd(000423) said that in 2022, efforts will be made to break through technology research and development, provide solutions to market and customer needs, carry out research on process improvement, standard improvement and clinical re evaluation of exclusive varieties, strengthen classified transformation and academic promotion of R & D achievements, and empower marketing. Strengthen the construction of R & D capacity, strengthen the construction of R & D system, and improve the innovation management mechanism from three aspects: Project closed-loop management, project digital management platform and strengthening accurate incentive. Strengthen cooperation with authoritative scientific research teams, increase the training and introduction of scientific and technological talents, provide solid talent elements to support innovation, and establish a multi-level and multi echelon scientific research talent training system.
In terms of business, Dong-E-E-Jiao Co.Ltd(000423) plans to expand the business layout of “strengthening the foundation, expanding breakthroughs and innovative exploration” in 2022. While ensuring the restorative growth of the cornerstone business, it will actively expand the field of nourishing and health care, expand to the big health industry, and create valuable differentiated services and products.
At the end of the reporting period, the shareholders holding more than Dong-E-E-Jiao Co.Ltd(000423) 5% were China Resources Dong-E-E-Jiao Co.Ltd(000423) Co., Ltd. and China Resources pharmaceutical investment Co., Ltd. Among them, China Resources Dong-E-E-Jiao Co.Ltd(000423) Co., Ltd. holds 151 million shares, accounting for 23.14% of the total share capital of the company; China Resources pharmaceutical investment Co., Ltd. holds 579351 million shares, accounting for 8.86% of the company’s total share capital. China Resources Dong-E-E-Jiao Co.Ltd(000423) Co., Ltd. and China Resources pharmaceutical investment Co., Ltd. are acting in concert, holding 209 million shares, accounting for 32% of the total share capital of the company Dong-E-E-Jiao Co.Ltd(000423) the actual controller is China Resources Co., Ltd.
It is worth mentioning that since 2022, Dong-E-E-Jiao Co.Ltd(000423) senior management has changed frequently. In January this year, Han Yuewei, chairman of Dong-E-E-Jiao Co.Ltd(000423) and Gao Dengfeng, President and legal representative, resigned due to changes in work content. On March 3, according to the official website of China Resources medicine, Dong-E-E-Jiao Co.Ltd(000423) former party secretary and President Qin Yufeng is currently undergoing disciplinary review and supervision investigation by the Discipline Inspection Commission of China Resources medicine Holding Co., Ltd. and the Liaocheng Supervision Commission of Shandong Province due to suspected serious violation of discipline and law. Qin Yufeng was once the soul of the company. After taking office, Qin Yufeng chose the strategic positioning of focusing on the main business of donkey hide gelatin for Dong-E-E-Jiao Co.Ltd(000423) and stripped off other sidelines. At the same time, he began to raise the price of donkey hide gelatin series products with relatively scarce resources step by step, so as to promote the return of donkey hide gelatin industry to value.
