Regulatory Approvals and Product Development - The company received a drug registration certificate for Acarbose tablets (50mg) from the National Medical Products Administration (NMPA) on January 30, 2022, which is considered equivalent to passing the consistency evaluation[4]. - Acarbose is effective in delaying carbohydrate absorption, significantly reducing postprandial blood sugar levels, and is widely used in China, where over 60% of type 2 diabetes patients are overweight or obese[5]. - The company and its wholly-owned subsidiary, Nanjing Deyuan, were granted a patent for a method to rapidly separate the racemic mixture of Pioglitazone hydrochloride using supercritical fluid chromatography on April 26, 2022[6]. - The company must complete consistency evaluations for its products, including Mecobalamin capsules and Candesartan tablets, within three years to maintain market competitiveness[15]. - The company has successfully passed the consistency evaluation for its products Metformin Hydrochloride Sustained-Release Tablets (0.5g), Nateglinide Tablets (0.12g), Pioglitazone Tablets (30mg), and Pioglitazone Metformin Tablets (15mg/500mg), showcasing its R&D capabilities[107]. - The company’s product Candesartan Cilexetil Tablets (Bokaiqing) was accepted for consistency evaluation in December 2021, with steady progress reported as of June 2022[107]. - The company decided not to pursue the consistency evaluation for Mecobalamin Capsules due to considerations of R&D costs and the complexity of BE trials, opting instead for an alternative product, Mecobalamin Tablets[108]. Financial Performance - The company's operating revenue for the current period reached ¥309,880,068.38, representing a year-on-year increase of 24.89% compared to ¥248,118,540.53 in the same period last year[29]. - The net profit attributable to shareholders of the listed company was ¥50,739,206.17, up 24.45% from ¥40,771,153.63 in the previous year[29]. - The gross profit margin improved to 80.96%, compared to 78.10% in the previous year[29]. - Total assets increased by 6.31% to ¥890,881,323.39 from ¥838,022,957.26 at the end of the previous year[30]. - The total liabilities rose by 7.79% to ¥157,989,440.13 from ¥146,568,023.42 at the end of the previous year[30]. - The net cash flow from operating activities was ¥55,806,540.82, reflecting a 7.56% increase from ¥51,885,938.84 in the previous year[31]. - The weighted average return on net assets based on net profit attributable to shareholders was 7.09%, down from 7.66% in the previous year[29]. - The company’s basic earnings per share increased to 0.80, an 11.11% rise from 0.72 in the previous year[29]. - The company achieved a sales revenue of 30,988.01 million yuan in the first half of 2022, representing a year-on-year growth of 24.89%[40]. - Operating profit for the same period was 6,327.12 million yuan, up 26.83% year-on-year, while net profit reached 5,073.92 million yuan, an increase of 24.45%[40]. Research and Development - The company invested 3,212.89 million yuan in R&D during the first half of 2022, accounting for 11.79% of total sales revenue[41]. - The company has received a total of 20 authorized patents, including 15 invention patents, enhancing its R&D capabilities[40]. - The company is focusing on drug research and development in the fields of geriatric and chronic diseases to enrich its product portfolio[99]. - The company has established a new product research and development project review system to reduce decision-making risks[99]. - The company is currently undergoing technical reviews for several new products, including Canagliflozin tablets and Phosphate Sitagliptin tablets[42]. Market Competition and Risks - Increased competition in the diabetes medication sector is expected, driven by rising diabetes prevalence and ongoing healthcare reforms, which may pressure the company's market share and profit margins[13]. - The pharmaceutical industry faces significant product development risks due to high investment, long cycles, and the potential for technical errors during research and development[13]. - The company is facing risks related to the shortage of high-level talent, which may impact future production and operations[14]. - Fluctuations in the prices of raw materials, such as Metformin and Candesartan, could affect profitability due to external procurement dependencies[14]. - The company is facing risks related to the supply of raw materials, with measures in place to diversify suppliers and establish long-term partnerships[104]. Talent Management - The company emphasizes the importance of attracting and retaining high-level technical and management talent to support its growth and product development initiatives[13]. - The company is actively working to attract and retain high-level talent through training and incentive mechanisms[102]. - The company has implemented a restricted stock incentive plan to motivate key employees and align their interests with the company's growth[103]. Social Responsibility and Environmental Compliance - The company has implemented a comprehensive wastewater treatment process that ensures treated water meets discharge standards[89]. - The company has established an online monitoring system for wastewater discharge that is connected to the local environmental authority[89]. - The company has maintained zero safety incidents during the reporting period[85]. - The company emphasizes the importance of social responsibility, aligning its business activities with community welfare initiatives[85]. - The company has developed an emergency response plan for environmental incidents and conducts regular training for employees[86]. Shareholder Commitments and Corporate Governance - The company has committed to fulfilling its obligations related to stock issuance and shareholder communications[127]. - The company has outlined its commitments to shareholders regarding stock price stabilization and compliance with regulatory requirements[126]. - The company will ensure that all commitments made in the public offering documents are being actively pursued and fulfilled[127]. - The company commits to strictly adhere to the lock-up period requirements as per the signed commitments and relevant laws and regulations, ensuring no reduction in shareholdings during this period[149]. - The company will compensate public investors for direct losses incurred due to reliance on commitments, with compensation amounts determined through negotiation or regulatory recognition[158]. Financial Management and Fund Utilization - The company has not engaged in any violations regarding the use of raised funds, ensuring compliance with regulations[182]. - The company has changed the use of part of the raised funds, with CNY 180,000,000 allocated to different purposes[180]. - The company has a significant number of shares pledged, with 18,204,162 shares under pledge among the major shareholders[176]. - The company has raised a total of CNY 308,666,100 through public stock issuance, with a net amount of CNY 284,194,253.77 after deducting issuance costs[181]. - The company has completed the use of 5,419.43 million of the excess fundraising to supplement working capital as of June 30, 2022[185].

Financial Performance - Operating revenue for Q1 2022 was RMB 146.39 million, representing a growth of 24.25% year-over-year[16]. - Net profit attributable to shareholders for Q1 2022 was RMB 21.00 million, a 35.11% increase compared to the same period last year[16]. - The company's overall gross margin improved to 80.53%, up 2.54 percentage points from 77.99% in the previous year[17]. - Cash flow from operating activities for Q1 2022 was RMB 41.67 million, a significant increase of 843.29% year-over-year[18]. - The net profit after deducting non-recurring gains and losses was RMB 16.85 million, reflecting a growth of 16.91% year-over-year[16]. - Total revenue for Q1 2022 reached ¥146,385,175.70, an increase from ¥117,814,952.19 in Q1 2021, representing a growth of approximately 24.3%[95]. - The net profit for Q1 2022 was ¥21,002,890.48, representing a 35% increase from ¥15,545,169.76 in Q1 2021[97]. - The company's total profit for Q1 2022 was ¥25,256,081.75, compared to ¥18,908,857.19 in Q1 2021, marking a 33% increase[96]. - The operating profit for Q1 2022 was ¥25,293,248.56, an increase of 32% from ¥19,069,602.22 in Q1 2021[96]. - The total comprehensive income for Q1 2022 was ¥21,002,890.48, compared to ¥15,545,169.76 in Q1 2021, showing a growth of 35%[97]. Assets and Liabilities - Total assets as of March 31, 2022, reached RMB 886.63 million, an increase of 5.80% compared to the end of 2021[16]. - Total liabilities rose to ¥169,516,543.83, up from ¥146,568,023.42, indicating an increase of approximately 15.6%[89]. - Current liabilities totaled ¥138,626,755.19, compared to ¥115,446,207.16, marking an increase of around 19.9%[89]. - Non-current liabilities decreased slightly to ¥30,889,788.64 from ¥31,121,816.26, showing a decline of about 0.7%[89]. - Shareholders' equity increased to ¥717,114,651.10 from ¥691,454,933.84, reflecting a growth of approximately 3.7%[89]. Shareholder Information - The total number of unrestricted shares increased from 19,847,926 to 43,878,944, representing a growth from 30.40% to 67.21% of total shares[24]. - The total number of restricted shares decreased from 45,438,074 to 21,407,056, changing from 69.60% to 32.79% of total shares[24]. - The largest shareholder, Li Yong'an, holds 6,761,216 shares, accounting for 10.36% of total shares[24]. - The company has 6,494 shareholders as of the end of the reporting period[24]. Cash Flow and Investments - Cash and cash equivalents were reported at ¥410,878,051.29, up from ¥368,291,060.02 at the end of 2021, indicating an increase of about 11.6%[87]. - Cash flow from operating activities for Q1 2022 was CNY 41,667,684.10, a significant increase from CNY 4,417,269.24 in Q1 2021, representing a growth of approximately 841%[101]. - Cash inflow from investment activities in Q1 2022 totaled CNY 31,466,927.14, a substantial rise from CNY 6,755,540.21 in Q1 2021, marking an increase of around 366%[102]. - The ending cash and cash equivalents balance for Q1 2022 was CNY 408,813,822.65, up from CNY 362,587,768.60 in Q1 2021, reflecting an increase of about 13%[102]. Research and Development - Research and development expenses increased to ¥14,753,104.23 in Q1 2022, up from ¥11,845,387.19 in Q1 2021, reflecting a growth of 24%[96]. - The company emphasizes the importance of R&D investment and market expansion to enhance competitiveness and sustainable profitability, focusing on endocrine therapy drug development[50]. Corporate Governance and Compliance - The company has not faced any litigation or arbitration matters during the reporting period[28]. - The company has committed to avoiding any business activities that directly compete with its existing products, ensuring no conflicts of interest with its controlling shareholders[78]. - The controlling shareholders have pledged to minimize and regulate related party transactions, ensuring that any unavoidable transactions adhere to market principles and fair pricing[80]. - The company will strictly fulfill all public commitments made during this issuance and actively accept social supervision[72]. Profit Distribution and Shareholder Returns - The company has committed to a profit distribution policy that ensures cash dividends will not be less than 20% of the distributable profits for the year, with a cumulative cash distribution of at least 60% of the average annual distributable profits over the last three years[56]. - The company plans to review its shareholder dividend return plan at least every three years after listing on the selected tier, considering feedback from shareholders, independent directors, and external supervisors[57]. - The company has a strong profitability and capital management capability, allowing it to provide stable and reasonable returns to shareholders[57]. - The company emphasizes a cash dividend as the primary method of profit distribution, maintaining a focus on shareholder returns[56]. Future Commitments and Plans - The company plans to invest up to 100 million RMB of idle funds in low-risk financial products within 12 months to enhance fund utilization efficiency[31]. - The company intends to use up to 284.19 million RMB of idle raised funds to purchase principal-protected bank products, also within a 12-month period[32]. - The company signed an agreement to acquire a 55% stake in Tongli Haiyuan Biotechnology Co., Ltd. for 155 million RMB, which was approved by the shareholders' meeting[33].

Financial Performance - The company's operating revenue for 2021 was CNY 513,824,638.88, representing a 29.56% increase compared to CNY 396,602,667.36 in 2020[39]. - The net profit attributable to shareholders for 2021 was CNY 77,890,698.51, which is a 21.67% increase from CNY 64,020,505.23 in 2020[39]. - The total assets increased by 92.06% to CNY 838,022,957.26 at the end of 2021, compared to CNY 436,336,503.79 at the beginning of the year[41]. - The company's total liabilities at the end of 2021 were CNY 146,568,023.42, a 40.60% increase from CNY 104,245,605.74 at the beginning of the year[41]. - The weighted average return on equity based on net profit attributable to shareholders was 13.02% in 2021, down from 21.09% in 2020[39]. - The net cash flow from operating activities for 2021 was CNY 91,040,912.13, a 65.64% increase from CNY 54,964,047.39 in 2020[43]. - The gross profit margin for 2021 was 78.21%, down from 82.54% in 2020[39]. - The company's total revenue for 2021 was CNY 513,824,638.88, with a net profit attributable to shareholders of CNY 79,895,126.27, reflecting a decrease of 2.51% compared to the preliminary report[48]. - The net profit after deducting non-recurring gains and losses was CNY 70,826,123.99, down 3.25% from the preliminary report[49]. - The company achieved a basic earnings per share of CNY 1.34, which is a decrease of 2.24% compared to the preliminary report[49]. Share Issuance and Capital Structure - The company successfully issued 16,867,000 shares at a price of 18.30 CNY per share, raising a net amount of 284.19 million CNY[4]. - The company has been approved for the issuance of up to 17,476,550 new shares, with the approval valid for 12 months from the date of issuance[4]. - The total share capital of the company is 65,286,000 shares, traded on the Beijing Stock Exchange[30]. - The company's total share capital increased to 65,286,000 shares by the end of 2021, up 43.20% from 45,591,000 shares at the beginning of the year[46]. - The company completed the issuance of shares to unspecified qualified investors, increasing its share capital by 1,969.50 million yuan and capital reserves by 30,904.30 million yuan[82]. Product Development and R&D - The company has over 20 products in various stages of research and development, focusing on diabetes, hypertension, and other metabolic diseases[18]. - The company has established a stable R&D team, but competition for talent may lead to the loss of core technical personnel, impacting long-term development[21]. - The company is committed to enhancing its R&D capabilities, which are seen as a core competitive advantage, despite the associated short-term financial strain[69]. - The company is focusing on expanding its presence in the biopharmaceutical sector, particularly in diabetes treatment, through strategic investments and collaborations[116]. - The company plans to maintain its investment in R&D, targeting new product approvals each year, with a goal to complete the consistency evaluation of its product Canagliflozin Hydrochlorothiazide in 2022[158][159]. Market and Competition - The pharmaceutical industry is experiencing intensified competition, particularly in the diabetes medication sector, which is expected to continue growing due to rising patient awareness and treatment rates[15]. - The company is adapting to the new market environment driven by the normalization of centralized procurement and the need for quality improvement[151]. - The focus on high-quality, cost-effective therapeutic products will benefit companies that can control costs effectively[151]. - The company is committed to enhancing product quality and market promotion to improve market share amidst increasing competition[175]. - The company is experiencing rising production costs due to increased safety and environmental regulations, as well as significant price hikes in raw materials[70]. Regulatory and Compliance - The company is subject to significant regulatory risks, including the potential failure of clinical trials or bioequivalence studies, which could adversely affect research and development progress[19]. - The pharmaceutical industry is highly regulated, and changes in policies could adversely affect the company's operations if it fails to adapt[20]. - The company is actively investing in environmental protection measures to comply with increasingly stringent regulations, which may lead to higher operational costs[16]. - The company has implemented an environmental self-monitoring plan in accordance with the pollutant discharge permit requirements[140]. - The company has established an emergency response plan for environmental incidents, which was approved by experts and filed with the local ecological environment bureau[146]. Sales and Marketing - The company’s marketing strategy emphasizes academic promotion to enhance product recognition among healthcare professionals and patients[58]. - The revenue from diabetes products increased by 24.20% compared to the previous year, driven by enhanced sales efforts and the successful promotion of key products like the sustained-release metformin tablets, which saw significant sales growth of 82.44%[99]. - Major customers accounted for 53.84% of total sales, with the largest customer, China National Pharmaceutical Group, contributing 23.02%[103]. - The company is focusing on optimizing its product sales structure, with significant growth in key promoted products[60]. - The company plans to continue promoting new products to drive sales growth and increase profit margins[58]. Environmental Responsibility - The company is committed to enhancing its environmental protection efforts in response to increasing regulatory requirements and public awareness[179]. - The company’s COD emissions were recorded at 1.784 tons, significantly below the discharge standard of 500 mg/L[141]. - The company’s ammonia nitrogen emissions were 0.2892 tons, well within the limit of 45 mg/L[141]. - The company’s total nitrogen emissions were 0.1704 tons, below the discharge standard of 70 mg/L[141]. - The company’s total phosphorus emissions were 0.0196 tons, significantly lower than the limit of 8 mg/L[141]. Social Responsibility - The company provided RMB 15,000 in aid to 20 underprivileged families before the 2021 Spring Festival, contributing to social responsibility efforts[139]. - The company actively supports local education by providing RMB 6,000 scholarships to five new college students in 2021[139]. - The company emphasizes a harmonious work environment and comprehensive employee benefits, including full coverage of social insurance[138]. - The company has not reported any major safety incidents during the reporting period, but continues to invest in safety and environmental protection measures[178]. Talent Management - The company is focused on enhancing its talent pool to support future growth, although it currently faces challenges in attracting and retaining high-level technical and management personnel[16]. - The company implemented a restricted stock incentive plan in 2021, granting 2,828,000 shares to 128 core employees and senior management to enhance employee motivation and retention[176]. - There is a risk of talent shortages in the company, which is crucial for sustaining growth and innovation in the technology-intensive pharmaceutical sector[175]. - The total number of R&D personnel increased from 96 to 128, with the proportion of R&D staff to total employees rising from 12.00% to 14.22%[123]. Future Outlook - The company anticipates long-term growth in the pharmaceutical industry supported by rising consumer spending and an aging population, despite short-term adjustment pressures[68]. - Future product launches are expected to provide new profit growth points, contributing to the company's long-term competitiveness[128]. - The company aims to establish itself as a leading pharmaceutical enterprise in the endocrine field, focusing on product marketing and research and development[156]. - The company faces significant uncertainties in achieving its 2022 operational plan, particularly due to the evolving nature of local procurement rules and the impact of centralized procurement policies[171]. - The integration of Tongli Haiyuan is critical for future growth, with risks related to business synergy and operational alignment[172].