2021 general manager's work report
1、 Overall operation of the company in 2021
Berry Genomics Co.Ltd(000710) (hereinafter referred to as "the company", " Berry Genomics Co.Ltd(000710) ") is mainly engaged in gene testing services, equipment and reagent sales based on high-throughput sequencing. The price of product testing services in the mature period of the company showed a downward trend. The superposition of covid-19 epidemic repeatedly made the number of hospital diagnosis and treatment unstable. At the same time, the company increased market expansion and internal incentive investment, resulting in the overall pressure on the short-term growth of the company's performance. The company achieved an operating revenue of 1.422 billion yuan, a decrease of 7.67% over the same period of last year, including 314 million yuan from basic scientific research services, a decrease of 24.08% over the same period of last year, and 1.054 billion yuan from medical products and services, a decrease of 3.18% over the same period of last year; During the reporting period, the net profit attributable to the shareholders of the listed company was - 110 million yuan, a decrease of 152.60% over the same period of last year.
2、 Changes in main accounting data and financial indicators
1. Financial status (unit: yuan)
Change range and reasons of the project at the end of 2021 and 2020
Monetary capital 4178892950762930829894 - 33.60% increased sales of sequencers and supporting reagents, resulting from increased stock procurement.
Other working capital 94691415395231925603 is caused by the increase of 80.99% input tax to be deducted.
yield
Fujian Digital Life Industrial Park (phase I) project under construction 267 Hunan Copote Science Technology Co.Ltd(600476) 66375181458703256% (North District) due to the increase of project construction investment.
Deferred income tax credit impairment losses and unrecovered loss assets 63928111852635876701 142.52% resulted from the increase of deductible temporary differences.
Other non current 270456855119 Jiangxi Selon Industrial Co.Ltd(002748) 16 42.33% prepaid wages in Fujian Digital Life Industrial Park, due to the increase of production process and decoration funds.
Short term loans 1905377914512310543903 54.78% due to the increase of bank working capital loans.
Accounts payable 3399289242324328765023 39.72% due to the increase in payment for raw materials such as sequencer and reagent.
Other payables 51814566012575219779 101.20% due to the increase of Fujian project construction deposit and government subsidies to be distributed.
Treasury stock 445195141316041640495 - 72.25% phase I ESOP completed
The non trading transfer of purchased and repurchased shares is caused by the corresponding reduction of treasury shares corresponding to this part of shares.
2. Operating results (unit: yuan)
Proportion of year-on-year increase or decrease in operating revenue from 2021 to 2020
Total 142218092129 100% 154038573247 100% - 7.67%
Sub product
Basic scientific research services 31486622186 22.14% 41474689228 26.92% - 24.08%
Medical testing service 50747567610 35.68% 59840677216 38.85% - 15.20%
Reagent sales 43057458364 30.28% 40913213421 26.56% 5.24%
Equipment sales 11683448314 8.22% 8199879335 5.32% 42.48%
Others 5242995655 3.69% 3610114047 2.34% 45.23%
Year on year increase or decrease in the proportion of operating costs
Total 78597373629 100.00% 72975711225 100.00% 7.70%
Sub product
Basic scientific research services 21185469027 26.95% 15153163393 25.48% 39.81%
Testing service 25182230456 32.04% 26065269966 34.63% - 3.39%
Reagent sales 19790328266 25.18% 12568520864 26.65% 57.46%
Equipment sales 10559950883 13.44% 8608365901 10.01% 22.67%
Others 1879394997 2.39% 484918172 3.23% 287.57%
3. R & D investment (unit: yuan)
R & D investment expensed R & D investment R & D investment R & D investment R & D investment in the current period compared with the amount of R & D investment, the proportion of the capitalized amount in the business revenue and the proportion of the business income in the same period of last year
133265,778.37 128239,895.21 5,025883.16 9.37% 16.96% 3.20%
The total amount of R & D investment and its proportion in operating revenue in this year increased compared with the same period of last year, and the capitalization amount of R & D investment increased by 41.14% compared with the same period of last year, mainly due to the capitalization conditions of projects in clinical trials in the early stage.
3、 Review of operation and management in 2021
(I) overall development
The company's gene sequencing industry is a frontier field of biotechnology. Since the release of the 13th five year plan for the development of biological industry in 2017, China's gene sequencing market has entered a high-speed development track. The continuous spread of covid-19 epidemic has further deepened the whole society's understanding of the importance of gene sequencing, early screening and accurate diagnosis and treatment, and the importance of gene sequencing for accurate diagnosis and treatment of diseases, It presents a trend of focusing on clinical medical application and extending to a wider field of health.
During the reporting period, the national "14th five year plan for universal medical security" and "14th five year plan for the construction of high-quality and efficient medical and health service system" and other heavy policies were issued, which further strengthened the dominant position of public medical institutions, and put forward guidance on increasing the supply of high-quality medical resources in obstetrics and Gynecology and pediatrics, focusing on strengthening prenatal screening and diagnosis and birth defect prevention and control, It has played a positive role in promoting the gene testing business in the field of genetics. At the same time, with the liberalization of China's "three child" fertility policy, the revision of the regulations on the supervision and administration of medical devices, the launch of industrial consensus such as the consensus of experts on neonatal disease tandem mass spectrometry screening technology, and the inclusion of "prenatal screening of fetal free DNA in maternal peripheral blood" into the payment catalogue of class a medical insurance in Beijing, the gene sequencing industry has witnessed the continuous standardization of product application and the continuous improvement of market penetration, The comprehensive prevention and control system of birth defects has been continuously improved. As a whole, it has entered the stage of product model and data accumulation from technology research and development. The industry has obvious weak cyclical characteristics.
With the innovative technology independently developed as the core, the company has developed gene sequencing products and services suitable for genetics and oncology, and developed a sequencing platform suitable for hospitals to independently carry out testing services (including sequencer, supporting reagents and analysis software). The tumor early screening product "lesning" of Fujian Herui Gene Technology Co., Ltd., a joint-stock subsidiary of the company, has entered the stage of commercial layout. At the same time, the company uses a comprehensive sequencing platform to provide high-quality scientific and technological services for scientific research institutions, colleges and universities and medical institutions at home and abroad. The company is actively expanding its business to include the analysis and application of gene big data and the transformation of data, constantly reserving testing services, constantly enriching the product line, actively arranging the genome database, continuing to establish a digital life science park and building a new gene industry ecosystem covering the four sectors of industry, science, research and capital under the background of the accelerated development of big data.
(II) operation during the reporting period
1. Operating results
On the revenue side, the company achieved an overall operating revenue of 1.422 billion yuan, a decrease of 7.67% over the same period last year. Among them, 1) the revenue from clinical business (medical testing services and Reagent Sales) was about 938 million yuan, a decrease of 6.90% over the same period of last year, mainly due to: 1) the price of product testing services in the mature stage of the company showed a downward trend, and the repeated covid-19 epidemic caused the number of hospital diagnosis and treatment to return to instability; 2) The company's covid-19 testing service business in this period contracted compared with the same period last year.
2) The revenue from basic scientific research services was about 314 million yuan, a decrease of 24.08% over the same period of last year, mainly because the company provided solutions for basic scientific research customers (including but not limited to universities, research institutes and clinical institutions) with "personalized customized services". With the conclusion of customers' preliminary research projects, the procurement of phased scientific research services decreased.
3) The sales of equipment was about 116 million yuan, an increase of 42.48% over the same period of the previous year, mainly because the company nextseqcn500 (second-generation gene sequencing platform), as an ngs universal platform suitable for large-scale clinical gene testing, achieved strategic sales results of biotechnology companies in the field of Microbiology in this period.
4) The revenue from other businesses was about 52 million yuan, an increase of 45.23% over the same period last year, mainly due to the increase in the revenue from providing corresponding services to the outside world by virtue of the company's technical strength and medical device registration experience.
On the cost side, the company's overall operating cost increased by 7.70% over the same period last year, mainly due to: 1. The demand for testing services driven by covid-19 epidemic has led to a general rise in the prices of upstream testing raw materials; 2. Domestic and foreign trade turbulence and exchange rate fluctuations have led to instability in the price of equipment parts purchased overseas by the company.
On the expense side, due to the market layout and the implementation of equity incentive, the sales expenses and management expenses increased by 11.82% and 17.78% respectively over the same period of last year.
2. Assets and liabilities
1) The increased investment in the construction of Fujian Digital Life Industrial Park (phase I) (North District) led to a 33.60% decrease in monetary funds at the end of the period compared with the beginning of the year.
2) The company moderately increased the flow of loans and increased the efficiency of capital utilization. The short-term loans at the end of the period increased by 54.78% compared with the beginning of the year.
3) By the end of the period, the asset liability ratio of the company was 28.30%, and the overall asset liability level was low.
At present, the coverage rate of monetary funds to short-term loans is 219.32%. In the future, the company will gradually improve the efficiency of fund utilization and ensure the safety of funds.
3. Cash flow
Net cash flow from operating activities
