Securities code: Shanghai Rightongene Biotechnology Co.Ltd(688217) securities abbreviation: Shanghai Rightongene Biotechnology Co.Ltd(688217) Announcement No.: 2022020 Shanghai Rightongene Biotechnology Co.Ltd(688217)
Announcement on 2021 profit distribution plan
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:
1. Shanghai Rightongene Biotechnology Co.Ltd(688217) (hereinafter referred to as “the company”) will not distribute profits, distribute cash dividends, give bonus shares or convert capital reserve into share capital in 2021.
2. The company will not distribute profits in 2021, taking full account of industry development, company development stage, R & D projects, expansion of business scale, large capital demand and other factors.
3. The company’s 2021 annual profit distribution plan has been deliberated and approved at the fourth meeting of the second board of directors and the fourth meeting of the second board of supervisors, and needs to be submitted to the company’s 2021 annual general meeting for deliberation. 1、 Contents of profit distribution plan
Audited by Zhonghui Certified Public Accountants (special general partnership), the net profit attributable to the owner of the parent company in 2021 was 473326 million yuan, the net profit realized by the parent company was 100481 million yuan, and the undistributed profit of the parent company was -167715 million yuan.
Fully considering that the company is currently in a period of rapid development, the continuous expansion of R & D projects, fixed asset investment and marketing network and the large capital demand, in order to better safeguard the long-term interests of all shareholders and ensure the sustainable development and capital demand of the company, the company plans not to distribute cash dividends, bonus shares, transfer capital reserve into share capital and other forms of distribution in 2021, and the remaining undistributed profits will be accumulated to the next year.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of no profit distribution in 2021
No profit will be distributed in 2021, taking full account of the development of the industry, the development stage of the company, the expansion of R & D projects and business scale, large capital demand and other factors.
1. Industry situation and characteristics of the company
The company’s in vitro diagnosis industry is a technology and capital intensive industry, involving many fields such as molecular biology, biochemistry, immunology and genetics. It is a comprehensive application of interdisciplinary knowledge and has a certain threshold for technology research and development.
2. Development stage of the company and its own business model
The company is a life science enterprise with its own brand of molecular diagnostic products. Its main business is the R & D, production, sales, scientific research and testing services of in vitro diagnostic products. It mainly provides molecular accurate testing for patients with blood diseases (leukemia, lymphoma), solid tumors (lung cancer, colorectal cancer, melanoma, etc.) and infectious diseases (hepatitis B, rubella, herpes simplex, etc.), and provides risk assessment, disease typing To provide basis for the formulation of individualized treatment schemes such as targeted drug selection and efficacy monitoring.
The in vitro diagnosis industry has a clear and considerable market prospect in the whole course of the disease, such as tumor diagnosis, auxiliary diagnosis, concomitant diagnosis, recurrence and metastasis monitoring, judgment of curative effect and so on. It is an important development direction of the pharmaceutical industry. The in vitro diagnosis industry is highly competitive. There are many enterprises outside China. The company needs to face the competition of many peer companies. Although the company also continues to expand its production capacity, as the in vitro diagnosis industry is a capital intensive, technology intensive and talent intensive industry, and the new products with the class III medical device registration certificate need to go through the approval processes such as registration inspection, clinical trial, obtaining the acceptance number, the expert meeting of the food and drug administration, supplementing materials according to the opinions of the expert meeting, and finally obtaining the approval, the application for registration cycle is generally three to five years or more, Large capital and personnel investment. Therefore, although the company has maintained steady development and expanded in scale in recent years, it is still restricted by capital, progress of R & D projects and registration of new products. In the next few years, the company will face new product R & D, capacity expansion and other tasks. The company needs a lot of capital investment in equipment purchase, R & D investment and market expansion. The company’s business vision is to become the most trusted gene company by users and protect more people from cancer. Looking forward to 2022, the company needs to maintain sufficient funds to ensure R & D investment, improve product quality and production capacity, continuously introduce high-end talents and improve market popularity, so as to consolidate and strengthen its competitiveness in the industry. 3. Profitability and capital demand of the company
In 2021, the net profit attributable to the owner of the parent company was 473326 million yuan, the net profit realized by the parent company was 100481 million yuan, and the undistributed profit of the parent company was -167715 million yuan. The IVD industry is developing rapidly. In order to maintain the company’s competitive advantage, the company needs more funds to invest in digital PCR and ngs R & D projects, the construction of Lingang LANWAN plot and the upgrading of marketing network, so as to ensure the healthy and sustainable development of the company.
4. Reasons for not paying cash dividends
Taking full account of the development of the industry, the development stage of the company, the expansion of R & D projects and business scale, the large demand for funds and other factors, in order to better safeguard the long-term interests of all shareholders and ensure the sustainable and steady development of the company, no cash dividend will be paid this year.
5. The exact purpose of the retained undistributed profits of the company and the estimated income
At the end of 2021, the retained undistributed profits of the company will be accumulated and rolled over to the next year for the implementation of R & D project investment, fixed asset investment and marketing network upgrading. The income level related to undistributed profits of the company is affected by many factors, such as macroeconomic situation, changes in asset quality, asset utilization level and so on. The company will continue to actively implement the company’s profit distribution policy in strict accordance with the requirements of relevant laws and regulations, the articles of association and other relevant provisions, and in combination with the company’s development stage, operation, cash flow and other factors, share the achievements of the company’s development with investors, and better safeguard 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 fourth meeting of the second board of directors on April 18, 2022, and considered and approved the proposal on the company’s profit distribution plan in 2021. Under the condition of fully considering the production and operation needs such as the company’s R & D project investment, fixed asset investment and marketing network upgrading, as well as the future development fund demand and other comprehensive factors, the board of directors considered that the proposal was consistent with the company’s development plan, It is conducive to the normal operation and healthy development of the company, has legitimacy, compliance and rationality, and is in line with the interests of the company and all shareholders. Agree to this profit distribution plan and submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
The profit distribution plan comprehensively considers the company’s industry characteristics, development stage, its own business model, profitability and future development fund demand, which is in line with the company’s reality; The deliberation and voting procedures of the board of directors of the company for the plan comply with the relevant provisions of the company law and the articles of association, and there is no situation that damages the interests of the company and minority shareholders; Agree to the profit distribution plan for 2021 and agree to submit it to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The company held the fourth meeting of the second board of supervisors on April 18, 2022, which deliberated and approved the proposal on the company’s profit distribution plan for 2021. The company’s profit distribution plan for 2021 complies with relevant laws and regulations and the relevant provisions on profit distribution in the articles of association, and fully takes into account the company’s current industry development, the company’s development stage, R & D projects and business scale, capital demand and other factors, Meet the development needs of the company.
4、 Relevant risk tips
1. 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 affect the company’s normal operation and long-term development.
2. The company’s 2021 profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Shanghai Rightongene Biotechnology Co.Ltd(688217) board of directors April 20, 2022
