Securities code: Jinhe Biotechnology Co.Ltd(002688) securities abbreviation: Jinhe Biotechnology Co.Ltd(002688) Announcement No.: 2022009 Jinhe Biotechnology Co.Ltd(002688) 2021 annual report summary
1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. In addition to the following directors, other directors attended the meeting of the board of directors to consider the annual report in person
Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person
Tips on non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of common shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable whether to convert accumulation fund into share capital □ yes √ no
The company’s profit distribution plan for ordinary shares reviewed and approved by the board of directors is: take 780422398 as the base, distribute cash dividend of 0.00 yuan (including tax) to all shareholders for every 10 shares, send bonus shares of 0 share (including tax), and do not use the accumulation fund to increase the share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Jinhe Biotechnology Co.Ltd(002688) stock code Jinhe Biotechnology Co.Ltd(002688)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name has a long way to go
Office address: No. 84, Xing’an North Road, Xincheng District, Hohhot, Inner Mongolia
22 / F, dingshenghua Century Plaza office building
Fax 04713291625
Tel: 04713291630
E-mail [email protected].
2. Introduction to main business or products during the reporting period
(I) main business and products
The company is a high-tech enterprise specializing in the production, sales, R & D and service of animal health products. It is a leading enterprise in the veterinary aureomycin industry. The existing businesses include animal health products, environmental protection sewage treatment and corn processing. The product types include veterinary chemicals, veterinary vaccines, animal nutrition, corn starch and industrial sewage treatment services.
Jinhe Biotechnology Co.Ltd(002688) the company’s corporate vision is to become a leading dynamic insurance company and provide high-quality products and services to customers all over the world. In order to achieve this goal, the company actively arranges new varieties and fields such as veterinary chemical drugs (doxycycline hydrochloride), veterinary vaccines (Brucellosis of cattle and sheep, foot-and-mouth disease vaccine, etc.), pet drugs, etc.
(II) business model
1. Dynamic insurance business
(1) Veterinary chemicals
Veterinary chemical drugs mainly include aureomycin, other veterinary drugs and preparation products. The company purchases and produces them in strict accordance with GMP and FDA quality management specifications. The sales market covers China and the international market. The United States is the main and high-end market of aureomycin, and other countries have market shares of different sizes. Customers in the Chinese market include terminal breeding plants and channel dealers. Due to the adjustment of veterinary drug regulatory regulations and policies of the Ministry of agriculture and rural areas and the change of medication methods, the market customers of aureomycin are mainly terminal breeding plants. (2) Veterinary vaccine
Veterinary vaccines mainly include pig blue ear, pig ring and porcine Mycoplasma vaccine. The company purchases and produces them in strict accordance with GMP quality management specifications. The sales market covers China and international markets. The sales methods are key customer sales, market-oriented sales and government bidding procurement.
(3) Animal nutrition
The main products of animal nutrition are microcapsule multidimensional, microcapsule zinc oxide, kallikrein, microcapsule benzoic acid and sorbic acid, microcapsule choline chloride and other vitamins. The main customers are Chinese feed enterprises, which are sold through direct sales and channel dealers to provide nutritional solutions for animals and ensure animal health.
2. Corn processing
The corn processing products are mainly corn starch, combined products and liquid sugar. As the supporting department of Jinhe Biotechnology Co.Ltd(002688) support, the corn processing project provides the main raw material for the production of Jinhe Biotechnology Co.Ltd(002688) main product chlortetracycline – corn starch, and the surplus starch products, combined products and liquid sugar are sold to the outside world.
3. Environmental protection business
The environmental protection business is mainly industrial sewage treatment. As the supporting department of Jinhe Biotechnology Co.Ltd(002688) antibiotic sewage treatment, the environmental protection business project provides solutions for Jinhe Biotechnology Co.Ltd(002688) antibiotic sewage treatment, as well as sewage treatment solutions for enterprises in industrial parks and other regions. The zero discharge of wastewater, reclaimed water reuse project and solid waste landfill project will be launched in 2020, which increases the ability of environmental protection companies to provide solutions for environmental pollution control.
(III) industry development
1. Animal protection industry
(I) impact of social and economic development on veterinary drug industry
With the sustained development of China’s social economy and the rapid improvement of people’s consumption capacity and consumption level, the demand for livestock products and meat consumption structure have changed significantly. First, the consumption of livestock products has increased steadily. According to statistics, in 2020, China’s total output of meat was 76.39 million tons, eggs 34.68 million tons and milk 34.4 million tons. With the liberalization of the national fertility policy and the growth of the population, the consumption demand for meat food will continue to rise. Second, the demand for meat quality has changed. From simple quantity type to quality priority, the market demand for high-quality, safe and brand meat food has increased significantly in recent years. In recent years, the global total meat consumption and per capita consumption have increased rapidly. The growth of consumption mainly comes from the growth of pig and poultry meat. Although the growth of pork is slow, it is still the main meat consumption variety. Driven by the continuous growth of the global population’s demand for meat, the market scale of the global veterinary medicine industry has grown steadily, with chemicals accounting for the largest market share. In the future, driven by the continuous growth of meat consumption and the growth of people’s health awareness, the global veterinary drug market will grow steadily.
In addition, the rapid development of companion animal breeding and the rapid rise of urban pet breeding have promoted the development and growth of related industries, including pet medicine. The market scale of dog and cat drugs approved for listing in China accounts for a certain proportion, and the main products are vaccines, insect repellents and antibiotics.
At present, there is a shortage of pet drugs, and the variety and quantity of imported pet drugs are increasing year by year.
To sum up, based on the current annual market scale of 50 billion yuan, the veterinary drug industry will have great development space, the pet drug market has great potential, and the research and development prospects of new products and new dosage forms are broad.
(II) the impact of animal infectious disease prevention and control policy, that is, the national compulsory immunization plan, on the veterinary drug industry
In order to ensure the safety of animal breeding, animal food safety and human health, the state has always attached great importance to the prevention and control of animal diseases, adhered to the principles of “prevention first” and “strengthening leadership and close cooperation, relying on scientific and legal prevention and control, mass prevention and mass control and decisive disposal”, and continuously strengthened the prevention and control work, improved work efficiency and achieved remarkable results through a series of measures such as system design, policy formulation and technology improvement. In 2012, the general office of the State Council issued the national medium and long term animal disease prevention and control plan (20122020), which established the guiding ideology, basic principles and prevention objectives of animal disease prevention and control, and focused on the prevention and control strategies of major animal diseases and key zoonotic diseases, That is to say, “control, purify and eliminate in a planned way the key diseases that do great harm to animal husbandry and public health safety, so as to lay a foundation for realizing immune and non immune epidemic free. Based on the dynamic changes of epidemic diseases, scientifically select the technical route of prevention and control. The adjustment of compulsory immunization and compulsory culling of diseases shall be carried out in accordance with the provisions of relevant laws and regulations”. With the continuous strengthening of national animal disease prevention and control, the development and progress of veterinary drug products closely related to disease prevention and control policies have been promoted. At the same time, the epidemic trend of animal diseases and the prevention and control measures taken by the government determine the changes in the market demand and product structure of veterinary drugs. Among them, the implementation of compulsory immunization policy for animal diseases such as foot-and-mouth disease and highly pathogenic avian influenza has directly affected the change of veterinary drug market demand and veterinary drug industry, which is specifically reflected in the increase of output, the growth of market scale, the increase of R & D investment, the continuous improvement of product quality and the increase of the number of approved new products.
(III) industry outlook
Development trend: the market capacity has increased steadily and the sales volume has increased significantly; Affected by the epidemic, the sales volume of biological products fluctuated, the sales volume of chemical preparations was stable, and the sales volume of antibiotics decreased slightly; There is a slight increase in Chinese veterinary drugs, active research and development of new veterinary drugs, and market demand for imported products.
Environmental factors: African swine plague, avian influenza and other major animal diseases, feed “Prohibition” and breeding “reduction”, the implementation of the new version of veterinary drug GMP, the implementation of the new version of veterinary drug code, the competition of international animal protection giants and other factors.
Market demand: waterfowl, pet medicine (US $12.5 billion in the global market), aquatic animal, economic animal products and diagnostic products; Drugs for cattle, sheep and laying hens; Chinese Veterinary Medicine (improving function), drugs for small and medium-sized livestock and poultry such as pigs and poultry.
Jinhe animal protection industry occupies a place in the industry, in which aureomycin products occupy a dominant position, and vaccines and animal nutrition products are constantly making efforts. With the implementation of Jinhe’s new strategy, Jinhe will accelerate its progress under the background of the development of animal protection industry, and its industry position will be continuously consolidated and improved.
(Note: the above data are from the development report of China’s veterinary drug industry in 2020)
2. Environmental protection industry
Under the macro background of accelerating the construction of a new development pattern of “double cycle”, the high-quality development of the environmental protection industry will usher in major opportunities. It is understood that from ministries and commissions to local governments, and then to enterprises, they are ready to strengthen around a new round of development of the environmental protection industry. The Ministry of ecological environment will increase capital investment and, together with relevant departments, issue and implement preferential support policies related to ecological and environmental protection, such as finance, taxation, price, finance and trade.
With the continuous strengthening of ecological and environmental protection and governance, the market space for the development of China’s environmental protection industry has been accelerated, and its strategic position in the national economy has been continuously improved. Jinhe environmental protection company focuses on the development strategy of highly difficult pharmaceutical and chemical industrial wastewater treatment and municipal sewage treatment, and continues to strengthen the ability of technological development and scientific and technological innovation. Under the background of strengthening the development of environmental protection industry, Jinhe environmental protection company will accelerate the expansion of business area and mode and enter the track of high-speed development. 3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years □ yes √ no
Unit: Yuan
By the end of 2021, by the end of 2020, by the end of 2019 compared with the end of last year
reduce
Total assets 406452585970337686719400 20.36% 334427881541
218948848% of the net assets attributable to the listed company’s shareholders
20212020 year-on-year increase or decrease 2019
Operating income 207798873016181463896554 14.51% 178236408184
The net profit attributable to the shareholders of the listed company is 9399238084 117324,525. 93 -19.89% 184938,644.89
Deduction attributable to shareholders of listed companies is not 8004188487 100055,200.95 -20.00% 145831,108.52
Net profit of recurring profit and loss
Net cash flow from operating activities 1529785055725807996072 – 40.72% 28218599703
Basic earnings per share (yuan / share) 0.14 0.18 – 22.22% 0.29
Diluted earnings per share (yuan / share) 0.14 0.18 – 22.22% 0.29
Weighted average return on net assets 4.81%
