Securities code: Cansino Biologics Inc(688185) securities abbreviation: Cansino Biologics Inc(688185) Announcement No.: 2022017 Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) company
Announcement on annual profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Distribution ratio per share: cash dividend of 0.8 yuan (including tax) per a share.
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and make a separate announcement on the specific adjustment.
The cash dividend ratio of this year is less than 30%, mainly because: combined with the industry characteristics, development stage and business model of the company, the company makes a comprehensive judgment based on the development status of its main business and supporting the necessary development needs of the company. The company is in the stage of accelerated promotion, expansion and development, and needs to invest a lot of funds in product R & D and industrialization construction, so as to continuously improve the technical strength and core competitiveness of the company; At the same time, the company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market. The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
1、 Contents of profit distribution plan
Audited by Deloitte Touche Tohmatsu (special general partnership), as of December 31, 2021, the consolidated statements of Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) company (hereinafter referred to as " Cansino Biologics Inc(688185) " and "the company") realized that the net profit attributable to the shareholders of the listed company was 191439 Canny Elevator Co.Ltd(002367) yuan, and the net profit of the parent company was 194857527044 yuan. As of December 31, 2021, the cumulative distributable profit in the consolidated statements of the company is 103130951902 yuan, of which the cumulative distributable profit of the parent company is 106549832963 yuan and the balance of capital reserve of the parent company is 659789811969 yuan. The profit distribution plan is as follows:
In accordance with the provisions of the company law and the articles of association, and taking into account the company's development, operation, industry conditions and possible future capital needs, the company's profit for 2021 is proposed to make the following arrangements:
(1) After making up the accumulated losses of previous years by the net profit realized by the parent company, 10% of the legal accumulation fund is withdrawn, totaling 11838870329 yuan;
(2) No discretionary provident fund shall be withdrawn.
According to the rules on share repurchases of listed companies and other relevant provisions, listed companies do not enjoy the right to profit distribution when repurchasing shares in the special account. The company plans to distribute a cash dividend of 8 yuan (including tax) for every 10 shares to all shareholders of the company. The company does not convert the capital reserve into share capital and does not give bonus shares. As of March 25, 2022, the total share capital of the company is 247449899 shares, and the total number of shares in the repurchase special securities account is 325000 shares. Based on this calculation, the total cash dividend to be distributed is 1976999920 yuan (including tax).
If the distribution plan changes due to the listing of new shares, share repurchase and other matters during the period from the disclosure to the implementation of the distribution plan, the total amount of distribution will be adjusted based on the total share capital on the equity registration date of the future implementation of the distribution plan, and the specific adjustment will be announced separately. The profit distribution plan can be implemented only after being deliberated by the general meeting of shareholders of the company. After this profit distribution, the remaining undistributed profits are accumulated and distributed in subsequent years. 2、 Description of cash dividend ratio less than 30% in this year
Considering the share repurchases in the special account of the listed company, based on the total share capital of the company as of March 25, 2022, the total cash dividend to be distributed by the company in 2021 is 1976991920 yuan (including tax), accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. Based on the comprehensive consideration of the development of the industry, the development stage of the company, its own business model, profitability and capital demand, the main information is as follows:
(I) industry situation and characteristics of the company
The industry of the company is vaccine R & D, production and sales in biomedical related services. At present, biotechnology plays an increasingly prominent strategic role in leading the future economic and social development. A series of important advances and breakthroughs in modern biotechnology are accelerating their penetration into the application field. Biological industry is one of the fastest growing industries today. Since entering the 21st century, technological breakthroughs with molecular design, gene manipulation and genomics as the core have promoted the profound reform of the biological industry supported by life science. Biotechnology has entered a new stage of accelerated development of large-scale industrialization, which will accelerate the survival of the fittest of enterprises in the industry, force biotechnology enterprises to focus on R & D investment in new products and technologies, and improve their core competitiveness and sustainable operation ability.
The vaccine industry is a high-tech and high-risk industry. The R & D cycle of vaccine products is very long. From preclinical research, clinical research, trial production and industrialization to the listing and sales of final products, there are high requirements for the technical reserve, experience accumulation, technical level and comprehensive quality of R & D personnel.
(II) development stage of the company and its own business model
The company is an innovative vaccine enterprise committed to R & D, production and commercialization in line with Chinese and international standards. After more than ten years of research, the company has gradually established five leading core technology platforms in the field of vaccine R & D and production: (1) based on virus vector technology; (2) Synthetic vaccine technology; (3) Protein structure design and recombination technology; (4) MRNA technology; (5) Preparation and administration technology. With the above technology platform, the company has gradually developed 17 innovative vaccine products for the prevention of Ebola virus disease, meningitis, COVID-19 pneumonia, DPT, pneumonia, tuberculosis, herpes zoster and 12 indications.
Due to the difficulty of new vaccine research and development, it is difficult for enterprises lacking corresponding technical capacity to maintain sustainable competitiveness, so the vaccine industry has formed high technical barriers. In order to ensure the company's long-term competitive advantage, a large amount of funds need to be invested in the research and development of new products and technologies, capacity construction, and commercialization layout of domestic and foreign markets. (III) profitability and capital demand of the company
In 2021, the company realized an operating revenue of 429970226423 yuan; The net profit attributable to the shareholders of the listed company was 191439 Canny Elevator Co.Ltd(002367) yuan; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 179703773746 yuan.
In 2022, the company's continuous R & D investment and industrialization construction will bring the demand for working capital. At the same time, the company will continue to attract and train talents to improve R & D innovation ability and product competitiveness.
At the same time, in order to adapt to the rapid development of business scale, the company will further improve the level of quality control and internal management, continue to be bigger and stronger, and create a better return on investment for all shareholders.
(IV) reasons why the company's cash dividend ratio is lower than 30%
The main reason is that combined with the industry characteristics, development stage and business model of the company, the company makes a comprehensive judgment based on the development status of its main business and supporting the necessary development needs of the company. The company is in the stage of accelerating promotion, expansion and development, and needs to invest a lot of funds in product R & D and industrialization construction, so as to continuously improve the technical strength and core competitiveness of the company. At the same time, the company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and the unpredictability of the market.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
At the end of 2021, the retained undistributed profits of the company will be transferred to the next year to meet the capital needs brought by the growth of business scale. The income level related to the undistributed profits of the company is affected by many factors, such as the macroeconomic situation, changes in asset quality, asset interest rate and so on.
The cash dividend ratio of the company in 2021 is less than 30%, which is conducive to providing the company with necessary and sufficient funds, improving financial stability and anti risk ability, ensuring the company's normal production and operation and sustainable development in the future, and better safeguarding the long-term interests of all shareholders.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 8th meeting of the second board of directors on March 25, 2022, deliberated and adopted the proposal on profit distribution plan for 2021, with 12 affirmative votes, 0 negative votes and 0 abstention votes, and agreed to submit the profit distribution plan to the general meeting of shareholders for deliberation.
(II) opinions of independent directors
In order to realize the sustainable, stable and healthy development of the company and better safeguard the long-term interests of all shareholders, the annual profit distribution plan for 2021 prepared by the board of directors is in line with the actual operation and financial situation of the company and does not violate the company law, the securities law Guidelines for the supervision of listed companies No. 3 - cash dividends of listed companies and other laws, regulations and relevant provisions of the articles of association. Therefore, we agree to the proposal on profit distribution plan for 2021 and agree to submit the proposal to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The company held the 11th meeting of the second board of supervisors on March 25, 2022, deliberated and passed the proposal on the profit distribution plan for 2021. The board of supervisors held that the profit distribution plan for 2021 fully considered the company's profitability, cash flow status and capital demand plan, combined with the current development stage, long-term development plan and reasonable return plan for shareholders, and there was no situation damaging the interests of shareholders, It is conducive to the sustainable and stable development of the company and complies with the provisions of relevant laws, regulations and the articles of association. The board of supervisors agreed to submit the proposal to the general meeting of shareholders for deliberation.
4、 Relevant risk tips
This profit distribution plan combines the company's profitability, future capital demand and other factors, and will not cause the company's shortage of working capital, have a significant impact on the company's operating cash flow, and have an adverse impact on the company's normal operation and long-term development.
The profit distribution plan must be submitted to the general meeting of shareholders for deliberation. Please pay attention to the investment risks. It is hereby announced.
Cansino Biologics Inc(688185) Jinyu Bio-Technology Co.Ltd(600201) board of directors March 28, 2022
