Operating Performance To A New Level--both Revenue And Net Profit Of Dongbao Bio-tech Hit A Record High in The First Half Of The Year

On the evening of August 28, 2022, the semi-annual report disclosed by Dongbao Bio-tech showed that the company's operating performance had reached a new level, and the first half of the year's revenue and net profit both hit a record high in the same period: the revenue was 476 million yuan, a year-on-year increase of 72.18%; The profit was 57.9749 million yuan, a year-on-year increase of 667.73%; non-net profit was 55.4039 million yuan, a year-on-year increase of 3096.24%; the net cash flow from operating activities was 108 million yuan, a year-on-year increase of 1721.51%.

As the only A-share enterprise focusing on the whole industrial chain of natural collagen, in the first half of the year, Dongbao Bio-tech continued to carry out strategic layout around "collagen+", continued to increase efforts to promote the launch of new terminal series products, and focused on foreign investment to improve brand and channel construction, the establishment of a three-dimensional sales promotion network, and achieved a new breakthrough in terminal business. The company said that in the future, it will continue to focus on the collagen industry and build the No.1 collagen brand in China.

It is reported that in the first half of the year, the company's gelatin series products and by-product calcium hydrogen phosphate developed steadily, and the market demand was improving. The operating income was 288 million yuan, a year-on-year increase of 12.35%; the gross profit was 79.4689 million yuan, a year-on-year increase of 203.54%; the gross profit rate reached 27.58 %, an increase of 17.37 percentage points year-on-year, and the profitability has been significantly enhanced.

In terms of collagen, the company continued to promote the "collagen +" layout, fully promoted the market promotion of terminal series products, and quickly cultivated terminal business into a new business growth point. In the first half of the year, the operating revenue of collagen series products reached 36.9665 million yuan, a year-on-year increase of 102.20%; gross profit reached 9.5775 million yuan, with a year-on-year increase of 105.4%; gross profit rate reached 25.91%, an increase of 0.41% year-on-year.

In terms of product structure, the company has successively launched a series of Ballensce brand of bovine bone collagen peptide powder (instant type), compound probiotics, meal replacement milkshake, collagen hydrating mask (new style), etc.. Bird's nest collagen peptide liquid drink, collagen brightening mask , Passion fruit enzyme powder will be on the market in September.

In terms of channel construction, the company has steadily promoted the construction of sales channels for terminal series products. On the one hand, it has increased the promotion of the original online and offline channels, on the other hand, it has built its own private e-commerce platform TO C end in Hangzhou, Qingdao and other Internet developed areas. At present, two companies, Guoen Jingtao and Dongbao Ballensce, have been set up on the platform, and new products of the " Ballensce " series have been launched simultaneously through multiple channels such as Tmall, JD.com, and Pinduoduo.

In addition, under the background that Dongbao Bio-tech and its controlling shareholder Guoen share promote industrial integration and coordinated development, Yiqing Biology, which is mainly engaged in the medical hollow capsule business, has become a 60% subsidiary of Dongbao Bio-tech and also played a role in enhancing the operating performance of Dongbao Bio-tech. In the first half of this year, capsule products of Dongbao Bio-tech achieved an operating revenue of 149 million yuan, a gross profit of 33.3278 million yuan, and a gross profit rate of 22.36%.