Financial Performance - Revenue for 2021 increased by 63.3% year-on-year, reflecting strong customer service momentum and successful market introduction of key innovative products[7] - In 2021, the company achieved a revenue of RMB 5,213.5 million, representing a 63.3% increase from RMB 3,192.3 million in 2020[11] - The gross profit for 2021 was RMB 2,248.1 million, up 49.5% from RMB 1,503.3 million in the previous year[11] - Net profit attributable to the company's owners reached RMB 2,879.1 million, a 64.4% increase compared to RMB 1,751.3 million in 2020[11] - The company’s adjusted net profit for 2021 was RMB 1,585.3 million, reflecting a 60.6% increase from RMB 987.2 million in 2020[11] - The gross profit margin for 2021 was 43.1%, a decrease of 4.0% from 47.1% in 2020[11] - Other income increased by 103.4% from RMB 145.1 million to RMB 295.2 million, mainly driven by an increase in interest income from bank deposits[40] - Other gains and losses (net) rose by 63.1% from RMB 1,273.6 million to RMB 2,077.2 million, largely due to fair value changes in financial assets[41] - Net profit for the year increased by 67.3% from RMB 2,030.6 million to RMB 3,396.6 million, with profit attributable to owners of the company rising by 64.4% to RMB 2,879.1 million[47] Operational Expansion - The company expanded its global presence with 24 overseas subsidiaries and over 1,000 employees across 52 countries by the end of 2021[10] - The number of ongoing drug clinical research projects increased from 389 as of December 31, 2020, to 567 as of December 31, 2021[16] - The company has 24 overseas subsidiaries and over 1,000 overseas employees across 52 countries as of December 31, 2021[16] - The number of ongoing single-region clinical trials rose from 111 as of June 30, 2021, to 132 as of December 31, 2021[17] - The company served as the leading clinical contract research organization for the Convidecia™ vaccine's multi-center phase III clinical study, contributing to its conditional approval in February 2021[17] - The company established a centralized service center in China to better support global operations, providing various ancillary services for clinical trials conducted overseas[17] - The company operates in 52 countries and regions across five continents, reflecting its global market expansion strategy[19] Client Relationships and Market Position - The company has established a strong and loyal customer base, with 6 out of the top 20 clients being multinational pharmaceutical companies and 16 being listed companies, contributing to significant revenue growth during the reporting period[76] - The company achieved a 100% retention rate among its top ten clients by revenue, indicating strong long-term relationships and stability in future income[76] - The company has successfully helped clients obtain approvals for various milestone drugs in China, showcasing its expertise in the clinical development process[76] - The company is committed to investing in emerging technologies to enhance service efficiency and expand its service range[88] Strategic Acquisitions and Investments - The company completed three acquisitions in 2021 to enhance its laboratory services, including Ocean Ridge Biosciences, Quintara Discovery, and a 70% stake in Wuhan HeYan Biomedical Technology[18] - Strategic acquisitions, including the purchase of DreamCIS and the enhancement of laboratory services through the acquisition of Fangda, have expanded the company's service offerings and geographical reach[77] - The company plans to utilize cash generated from operations and proceeds from its H-share IPO to meet future funding needs[54] - The company plans to continue selective acquisitions and investments to achieve business growth, but may face challenges in identifying suitable targets[99] Employee Growth and Talent Management - In 2021, the total number of employees increased from 6,032 as of December 31, 2020, to 8,326 as of December 31, 2021, representing a growth of approximately 38%[19] - The company expanded its overseas workforce from 854 employees as of June 30, 2021, to 1,026 employees as of December 31, 2021, indicating a growth of about 20%[19] - The company collaborates with over 20 universities to train medical talent, enhancing its talent pool and ensuring a steady supply of qualified professionals[75] - Competitive compensation packages, including long-term equity incentive plans, have strengthened the company's ability to attract and retain top talent[75] - The company emphasizes the importance of attracting top talent to support its global expansion and will enhance employee recruitment and training programs[89] Governance and Compliance - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[108] - The company has adopted corporate governance practices in accordance with the principles and code provisions of the Listing Rules Appendix 14[120] - The company has established an audit committee to oversee financial reporting and internal auditing, ensuring compliance with relevant laws and regulations[161] - The company has implemented strict anti-corruption policies for sales personnel and distributors to ensure compliance with promotional regulations[161] - The company has established a union in China to represent employees in the formulation of company rules and internal regulations[105] Risk Management - The company recognizes that risk management is crucial for business success, facing operational risks including market conditions and regulatory changes in the global contract research organization market[155] - The company has established a virtual private network between Beijing, Hangzhou, Shanghai, and Jiaxing, and a remote disaster recovery center on Amazon Web Services to enhance data security[156] - The board is responsible for establishing and maintaining an effective internal control system, regularly reviewing and strengthening it during the reporting period[159] - The company faces risks related to the loss of major clients and contracts, which could significantly impact its business and financial performance[98] Future Outlook - The company plans to enhance its service offerings in emerging areas such as pharmacovigilance, real-world research, and early-stage development to capture more market share[87] - The company aims to expand its global presence, particularly in the US, Europe, and major emerging markets, through organic growth and strategic acquisitions[88] - The company anticipates continued increases in recruitment and retention costs due to the competitive market for skilled personnel in the pharmaceutical and medical device sectors[100] - The company’s financial performance may be significantly affected by fluctuations in the fair value of financial assets beyond its control[102]

Financial Performance - The company's operating revenue for Q1 2022 was CNY 1,817,858,958.69, representing a 101.55% increase compared to CNY 901,947,880.46 in the same period last year[4]. - Net profit attributable to shareholders for Q1 2022 was CNY 518,416,798.73, a 13.82% increase from CNY 455,480,291.91 year-on-year[4]. - The net profit from operating activities for Q1 2022 was CNY 378,410,426.28, showing a significant increase of 65.31% compared to CNY 228,909,261.61 in the previous year[4]. - Basic and diluted earnings per share for Q1 2022 were both CNY 0.60, reflecting a 15.38% increase from CNY 0.52 in the previous year[4]. - The net profit for the period was ¥656,002,308.83, down from ¥757,164,023.00 in the previous period, reflecting a decrease of approximately 13.3%[24]. - The net profit attributable to the parent company was approximately 573.97 million, compared to 722.55 million in the previous period, reflecting a decrease of about 20.5%[25]. - The total comprehensive income attributable to the parent company was approximately 517.87 million, up from 457.76 million in the previous period, indicating an increase of about 13.1%[26]. Cash Flow - The net cash flow from operating activities for Q1 2022 was CNY 303,078,662.63, which is a 27.16% increase from CNY 238,339,757.83 in the same period last year[4]. - Cash inflow from operating activities was approximately 1.84 billion, compared to 1.04 billion in the previous period, showing an increase of about 76%[63]. - Cash outflow from investing activities totaled approximately 1.53 billion, resulting in a net cash flow from investing activities of approximately -1.29 billion[69]. - Cash inflow from financing activities was approximately 1.01 billion, while cash outflow totaled approximately 479.01 million, leading to a net cash flow from financing activities of approximately 533.08 million, compared to 82.96 million in the previous period[69]. Assets and Liabilities - Total assets at the end of Q1 2022 were CNY 24,803,252,427.71, a 4.47% increase from CNY 23,741,171,551.32 at the end of the previous year[4]. - The company’s total liabilities increased to ¥3,629,856,135.03 from ¥3,135,974,351.68, reflecting a rise of approximately 15.8%[21]. - Long-term equity investments increased by 64.62% to CNY 1,216,247,844.57 due to increased investments in joint ventures during the reporting period[7]. - Inventory at the end of the period was ¥7,642,168.46, up from ¥6,095,078.95 at the beginning of the year, indicating an increase of approximately 25.4%[18]. Operating Costs and Expenses - Operating costs rose by 132.28% to ¥1,112,011,414.78 from ¥478,741,538.49, mainly due to increased costs associated with COVID-19 vaccine clinical trials[8]. - Management expenses increased by 39.22% to ¥158,946,738.06 from ¥114,168,850.78, attributed to a rise in the number and compensation of management personnel[8]. - The company reported a significant increase in tax expenses by 137.02% to ¥82,031,810.24 from ¥34,609,998.43, driven by profit growth[8]. - Research and development expenses for the period were ¥56,987,790.58, compared to ¥46,970,780.14 in the previous period, an increase of about 21.5%[23]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 49,909[9]. - The largest shareholder, Ye Xiaoping, holds 20.32% of shares, totaling 177,239,541 shares[10]. - The company repurchased shares, resulting in treasury stock increasing by 44.05% to CNY 817,568,540.51[7]. Other Income and Gains - Other income increased by 175.62% to ¥7,197,266.19 from ¥2,611,291.27, mainly due to increased government subsidies received[8]. - Investment income grew by 71.63% to ¥55,553,335.98 from ¥32,367,209.75, resulting from gains from the disposal of long-term assets[8]. - Non-operating income from government subsidies amounted to ¥3,047,160.06 during the quarter[40]. - The company reported a total of ¥140,006,372.45 in non-recurring gains and losses after tax adjustments[40].

Financial Performance - Revenue for the six months ended June 30, 2021, reached RMB 2,056.4 million, a 41.6% increase from RMB 1,452.0 million in the same period of 2020[9] - Net profit for the same period was RMB 1,594.2 million, reflecting a 52.0% increase compared to RMB 1,049.0 million in the prior year[9] - Gross profit for the six months was RMB 966.9 million, up 38.5% from RMB 698.1 million in the same period last year[9] - The adjusted net profit attributable to the company’s owners was RMB 692.1 million, a 69.8% increase from RMB 407.7 million in the prior year[9] - Profit for the period increased by 52.0% year-on-year to RMB 1,594.2 million, with profit attributable to owners rising by 24.5% to RMB 1,259.9 million[39] - The effective tax rate decreased from 7.9% to 6.1%, primarily due to changes in other income items and deferred tax expenses[38] - Other income increased by 362.1% year-on-year to RMB 147.4 million, primarily due to interest income rising from RMB 22.5 million to RMB 134.4 million[32] - The company reported a total comprehensive income of RMB 1,550,156 thousand for the period, compared to RMB 1,075,233 thousand in 2020, marking a substantial increase[147] Revenue Breakdown - Revenue from clinical trial technical services generated revenue of RMB 1,033.6 million, a year-on-year increase of 45.4%[11] - Revenue from clinical trial-related services and laboratory services amounted to RMB 1,022.8 million, with a year-on-year growth of 38.0%[11] - Revenue generated in China grew by 31.3% to RMB 1,110.8 million, benefiting from effective COVID-19 control measures[18] - Overseas revenue surged by 56.0% to RMB 945.6 million, driven by increased demand for multi-regional clinical trials[18] - Revenue from clinical trial technology services was RMB 1,033,554 thousand, while revenue from clinical trial-related services and laboratory services was RMB 1,022,821 thousand, showing strong growth compared to RMB 711,035 thousand and RMB 740,959 thousand in 2020 respectively[163] Operational Growth - New order amount during the reporting period was RMB 5,074.8 million, representing a significant growth of 150.8% year-on-year[11] - The number of employees increased to 7,208 as of June 30, 2021, up from 6,032 at the end of 2020[11] - The number of ongoing drug clinical research projects increased from 389 to 491, with 351 in China and 140 overseas as of June 30, 2021[20] - The company expanded its single-region clinical trials from 95 to 111 during the reporting period, and the number of multi-region clinical trials increased from 20 to 29[13] - The global project management team grew from 31 to 43 members, enhancing support for overseas clinical trials[13] Acquisitions and Investments - Two acquisitions were completed to enhance laboratory services, including the acquisition of Ocean Ridge Biosciences, Inc. and Quintara Discovery, Inc.[13] - The company successfully acquired DreamCIS, a leading clinical contract research organization in South Korea, marking its first acquisition in developed markets and enhancing its expertise to meet global client needs[69] - The acquisition of 方达 (Fangda) improved the company's laboratory service capabilities, while the acquisition of 泰州泰格捷通医药科技有限公司 enhanced its medical device clinical trial capabilities[69] - The company has invested in innovative biopharmaceutical and medical device startups, aiming to establish long-term partnerships and promote innovation in the biopharmaceutical industry globally[69] Financial Position - The company's trade receivables and other receivables increased by 8.7% to RMB 694.0 million, driven by an increase in trade receivables from third parties from RMB 490.9 million to RMB 563.4 million[46] - The company's contract assets rose by 31.0% to RMB 1,080.2 million, attributed to an increase in total contract amounts with clients[49] - The company's property, plant, and equipment increased by 32.8% to RMB 532.0 million, mainly due to investments in laboratory facilities and office expansions[50] - The financial assets measured at fair value increased by 32.9% to RMB 7,086.4 million, driven by fair value increases and ongoing investment activities[53] - The company had no outstanding borrowings as of June 30, 2021, resulting in a debt-to-equity ratio of zero[58] Employee and Management Initiatives - The company has a team of over 800 professionals operating in 39 countries, providing various clinical trial and laboratory services[64] - The company collaborates with 21 universities to train medical talent, enhancing its talent pool for clinical trial operations[66] - The company has launched stock option plans and share incentive programs to provide competitive compensation to its employees[66] - The company emphasizes the importance of retaining experienced management and technical personnel to support ongoing business growth and development of new services and products[89] Market Outlook and Strategy - The company aims to become the largest clinical contract research organization in China, leveraging its extensive clinical trial center network and strong track record[74] - The global clinical contract research organization industry is expected to continue growing, driven by increased R&D spending, cost-saving measures, and the emergence of new biotechnologies[74] - The company plans to enhance its service offerings in the clinical contract research market to capture more market share and new business opportunities[75] - The company aims to expand its global business, particularly in the US and Western Europe, through organic growth and strategic acquisitions[76] Risks and Challenges - Risks include potential impacts from the COVID-19 pandemic on business operations and financial performance[78] - A decline in demand for biopharmaceutical research services could significantly affect the company's business and financial outlook[79] - The company must adapt to regulatory changes to avoid negative impacts on its operations and financial performance[80] - The company faces increasing competition in the global pharmaceutical contract research organization market, impacting pricing and potentially reducing revenue and profitability[81] Compliance and Governance - The company is committed to maintaining compliance with the applicable disclosure requirements of the stock exchange[158] - The company's independent auditor confirmed that the financial statements complied with applicable accounting standards and regulations[144] - The company reminded all directors of the importance of complying with the standard code for securities trading to prevent future violations[138]

Financial Performance - In 2020, the company's revenue increased by 13.9% year-on-year, reaching RMB 5,536.5 million[9]. - Revenue for the year ended December 31, 2020, was RMB 3,192.3 million, representing a year-on-year increase of 13.9% from RMB 2,803.3 million in 2019[12]. - Net profit attributable to the company's owners reached RMB 1,751.3 million, a significant increase of 108.2% compared to RMB 841.2 million in 2019[12]. - The company achieved a gross profit of RMB 1,503.3 million, reflecting a 16.4% increase from RMB 1,291.9 million in the previous year[12]. - The gross margin improved to 47.1% in 2020, compared to 46.1% in 2019, indicating enhanced profitability[12]. - The adjusted net profit attributable to the company's owners was RMB 987.2 million, a 36.9% increase from RMB 721.0 million in 2019[12]. - The company's cash and cash equivalents increased by 396.3% to RMB 9,960.0 million from RMB 2,006.9 million in 2019[13]. - Other income increased by 126.4% to RMB 145.1 million, primarily due to interest income rising from RMB 26.8 million to RMB 114.1 million[38]. - The company reported a significant increase in revenue, achieving a total of 750,000 A-shares pledged as collateral for personal financial arrangements by the general manager, which occurred during a prohibited trading period[129]. Operational Highlights - New orders grew by 30.9% year-on-year, totaling RMB 5,536.5 million[9]. - The contracted future revenue rose by 44.9% year-on-year, amounting to RMB 7,260.3 million as of December 31, 2020[9]. - The company provided services to over 2,000 clients in 2020, enhancing its customer relationships[10]. - The company secured over RMB 300 million in new orders for multi-regional clinical trials in 2020[9]. - The company focused on expanding into new markets in South Asia, Latin America, and Africa strategically[9]. - The company contributed to the successful launch of multiple innovative drugs and medical devices in 2020[9]. - The company actively participated in clinical trials for COVID-19 treatments, including leading a multi-center phase III clinical study for the Ad5-nCoV vaccine[9]. - The number of ongoing drug clinical research projects increased from 287 to 389, with 274 projects in China and 115 overseas[28]. - The company expanded its medical device clinical research services to include in vitro diagnostic (IVD) development services and risk monitoring services[28]. - The company has established a comprehensive biopharmaceutical R&D service system since its inception in 2004, benefiting from recent regulatory reforms and industry growth[90]. Employee and Talent Management - The number of employees increased to 6,032 by December 31, 2020, up from 4,959 at the end of 2019[19]. - The company had a total of 6,032 employees as of December 31, 2020, with competitive compensation and incentive plans to attract and retain talent[112]. - The company invests in continuous education and training programs for employees to enhance their skills and knowledge[112]. - The company has established a robust talent management and training system specifically for cross-border and multi-regional R&D projects[93]. - The company is committed to attracting top talent, particularly those with global experience and technical expertise, to support global expansion efforts[95]. Strategic Acquisitions and Investments - The company completed several acquisitions, including Shanghai Mosi Medical Technology Co., Ltd. and Biotranex, LLC, to enhance service offerings[21]. - The strategic acquisition of DreamCIS, a leading clinical contract research organization in South Korea, marks the company's first acquisition in developed markets, enhancing its expertise to meet global client needs[82]. - The acquisition of Frontage Laboratories Inc. aims to expand capabilities in organic synthesis, pharmaceutical chemistry, and process development, contributing to growth in drug discovery and early development services[85]. - The company plans to enhance its service offerings and expand its market share in the clinical contract research organization sector, focusing on advanced drug targets and gene and cell therapies[93]. - The company continues to focus on long-term value creation through selective minority investments in the healthcare sector and partnerships with investment funds[62]. Governance and Compliance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[114]. - The company has a strong governance structure with independent directors and committees focusing on audit, remuneration, and strategic development[125]. - The company is committed to maintaining high levels of corporate governance and will continue to review and monitor its governance practices[128]. - The board confirmed the effectiveness and adequacy of the group's risk management and internal control systems as of December 31, 2020[167]. - The company has established an internal audit function to assess and improve the effectiveness of risk management and internal control systems[167]. Financial Position and Cash Flow - The net cash generated from operating activities for the year ended December 31, 2020, was RMB 892.4 million, an increase of 66.0% compared to RMB 537.6 million for the year ended December 31, 2019[51]. - The net cash used in investing activities for the year ended December 31, 2020, was RMB 2,231.3 million, a significant increase of 266.1% from RMB 609.4 million for the year ended December 31, 2019[51]. - The net cash generated from financing activities for the year ended December 31, 2020, was RMB 9,339.5 million, a substantial increase of 590.4% compared to RMB 1,352.8 million for the year ended December 31, 2019[52]. - The company's goodwill increased by 24.8% from RMB 1,157.8 million as of December 31, 2019, to RMB 1,444.5 million as of December 31, 2020, primarily due to acquisitions[57]. - The company's intangible assets increased by 58.4% from RMB 78.8 million as of December 31, 2019, to RMB 124.8 million as of December 31, 2020, mainly due to software procurement and customer relationships acquired through acquisitions[58]. Risks and Challenges - The business operations and financial performance have been adversely affected by the COVID-19 pandemic, with potential ongoing impacts from future outbreaks[96]. - A decline in demand for biopharmaceutical research and development services poses a significant risk, particularly if clients reduce their spending on services[97]. - Increased competition in the global pharmaceutical contract research organization market may negatively impact the company's business and financial performance[98]. - The company must obtain and maintain various regulatory approvals, licenses, and certifications to operate, with potential disruptions if these are not secured[101]. - The company is at risk of losing major clients or contracts, which could significantly impact its business and financial performance[103].