Financial Performance - JOINN Laboratories reported a revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-over-year growth of 25%[6]. - The company achieved a net profit of RMB 300 million, which is an increase of 30% compared to the previous year[6]. - Total revenue for 2021 reached RMB 1,516,680,000, a 40.9% increase from RMB 1,075,905,000 in 2020[14]. - Gross profit for 2021 was RMB 735,678,000, resulting in a gross margin of 48.51%[14]. - Net profit attributable to equity shareholders for 2021 was RMB 557,460,000, up from RMB 312,950,000 in 2020, reflecting an increase of 78.5%[14]. - Basic earnings per share for 2021 were RMB 1.51, compared to RMB 0.99 in 2020, representing a 52.5% increase[14]. - The company reported a gross margin of 45%, which is an improvement from 42% in the previous year[6]. - In 2021, the company achieved a revenue growth of approximately 41% year-on-year, with net profit attributable to equity shareholders increasing by about 78%[16]. - The company reported a profit distribution plan for the year ending December 31, 2021, proposing a final dividend of RMB 0.36 per share, up from RMB 0.35 in 2020[73]. - The total amount of the proposed final dividend is approximately RMB 137,248,000, compared to RMB 94,850,000 in 2020[73]. Market Expansion and Strategy - JOINN Laboratories plans to expand its market presence in Europe and North America, targeting a 20% increase in international revenue by 2023[6]. - The company plans to continue expanding its market presence and investing in new product development[12]. - The company aims to enhance its global footprint and service capabilities, leveraging the strategic acquisition of Biomere to upgrade facilities and expand services in the North American pharmaceutical market[48]. - The company is focusing on strategic partnerships with leading pharmaceutical companies to enhance its service offerings[6]. - The company plans to invest in expanding its clinical trial services and strengthen its scientific and regulatory teams to support clinical trial operations[48]. Research and Development - The company is investing RMB 200 million in R&D for new drug development technologies, aiming to launch two new products by the end of 2022[6]. - Research and development efforts are focused on innovative drug discovery and enhancing drug metabolism studies[11]. - The company has established a comprehensive platform for non-clinical evaluation, focusing on innovative drug research and evaluation capabilities across various new technologies and targets[19]. - The company successfully created gene-edited cell lines and animal models for rare disease drug development, enhancing its innovative drug research capabilities[22]. Operational Efficiency - JOINN Laboratories is implementing new operational strategies to improve efficiency, aiming for a 10% reduction in operational costs by 2023[6]. - The company upgraded its laboratory information management system (LIMS) and introduced new document management and employee training systems to enhance operational efficiency[19]. - The company expanded its workforce to over 2,100 professionals by December 31, 2021, enhancing the capabilities of its non-clinical research service team[17]. Acquisitions and Partnerships - JOINN Laboratories has completed the acquisition of Biomedical Research Models, Inc., enhancing its capabilities in preclinical research[6]. - The company is exploring potential mergers and acquisitions to strengthen its market position and capabilities[12]. - The company aims to selectively pursue acquisitions of businesses and assets that complement its growth strategy, particularly in non-clinical research and drug discovery services[52]. Financial Position and Assets - Total assets as of December 31, 2021, amounted to RMB 8,537,077,000, significantly higher than RMB 2,172,902,000 in 2017[15]. - Total liabilities for 2021 were RMB 1,392,641,000, compared to RMB 951,093,000 in 2020[15]. - Net assets for 2021 stood at RMB 7,144,436,000, an increase from RMB 1,221,809,000 in 2017[15]. - Cash and cash equivalents as of December 31, 2021, were RMB 41,541 million, an increase of 1,245.7% from RMB 3,087 million as of December 31, 2020[43]. Risks and Challenges - The company faces regulatory compliance risks due to the need to adhere to multiple laws and regulations across different countries, which could adversely affect its reputation and financial performance[53]. - Talent recruitment risks are heightened as the company expands, necessitating the cultivation and introduction of skilled personnel to meet current and future business needs[54]. - Market competition risks are increasing as competitors expand capacity and facilities, necessitating the company to maintain its core competitive advantages[55]. - The ongoing COVID-19 pandemic poses challenges to daily operations, and future developments in the pandemic could impact business operations depending on national policies[59]. Corporate Governance - The board consists of 10 members, with executive directors having service contracts established in February 2021 for an initial term of three years[83]. - The company has established a framework for maintaining shareholder interests and enhancing corporate value through effective governance practices[152]. - The board of directors held seven meetings during the reporting period, exceeding the minimum requirement of four meetings per year[175]. - The company has adopted a board nomination policy outlining criteria for selecting candidates for appointment or reappointment[166]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations[195]. - Shareholders holding more than 3% of the company's shares can propose temporary motions at least 10 days before the annual general meeting[193]. - The company has established a policy to maintain communication with shareholders, ensuring timely responses to shareholder concerns and suggestions[195]. Employee and Labor Relations - The company has established a union in China to represent employees and ensure compliance with labor laws and regulations[138]. - The employer matches employee contributions to the 401(k) plan up to 4% of eligible wages, providing a safety net for retirement savings[141]. Environmental and Social Responsibility - The company has established detailed internal rules for environmental protection, with no additional costs incurred for compliance as of December 31, 2021[74]. - The company emphasizes compliance with anti-bribery and anti-corruption regulations to mitigate risks associated with bribery and corruption[138]. - The company made donations amounting to RMB 1.2 million during the reporting period[151].

Financial Performance - The company's operating revenue for 2021 was approximately ¥1.52 billion, representing a 40.97% increase compared to ¥1.08 billion in 2020[17]. - The net profit attributable to shareholders for 2021 was approximately ¥557.46 million, a 76.96% increase from ¥315.01 million in 2020[17]. - The cash flow generated from operating activities in 2021 was approximately ¥685.66 million, up 60.06% from ¥428.39 million in 2020[17]. - The total assets at the end of 2021 were approximately ¥8.54 billion, a 305.02% increase from ¥2.11 billion at the end of 2020[17]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥7.14 billion, reflecting a 482.60% increase from ¥1.22 billion at the end of 2020[17]. - The basic earnings per share for 2021 were ¥1.51, a 51.00% increase compared to ¥1.00 in 2020[18]. - The diluted earnings per share for 2021 were ¥1.50, representing a 51.52% increase from ¥0.99 in 2020[18]. - The weighted average return on equity for 2021 was 9.42%, down 21.36% from 30.78% in 2020[18]. - The company achieved a revenue of CNY 1,516.68 million in 2021, representing a year-on-year growth of 40.97%[64]. - The net profit attributable to shareholders was CNY 557.82 million, reflecting a year-on-year increase of 77.08%[64]. Investments and Capital Structure - The company plans to distribute a cash dividend of 3.6 CNY per 10 shares (including tax) and to increase capital by converting 4 shares for every 10 shares held[3]. - The company made strategic investments in Changchun Baike Biotechnology Co., Ltd. and Beijing Zhaoyan Biotechnology Co., Ltd., with total investments of ¥4,362 million and ¥5,000 million respectively, enhancing business cooperation and market competitiveness[78]. - The fair value of financial products increased to ¥605,533,634.18, up from ¥238,902,999.99 in the previous period, reflecting a strong growth in investment performance[80]. - The company reported a total of 1,135,000,000 RMB in entrusted financial management, with an outstanding balance of 600,000,000 RMB[160]. - The total number of shares increased from 227,454,729 to 381,246,492 shares due to various stock options and capital increases[162][164][166]. Operational Developments - The company expanded its workforce to over 2,100 professionals by the end of 2021, enhancing its service capabilities[24]. - A new 7,500 square meter breeding facility was completed and put into use by the end of 2021, supporting increased operational capacity[25]. - The company is constructing an additional 20,000 square meters of facilities to meet growing experimental demands, expected to be operational in the second half of 2022[25]. - Approximately 6,000 square meters of new experimental facilities were renovated in California to alleviate capacity constraints at the overseas subsidiary BIOMERE[26]. - The company has established a competitive compensation scheme, including stock incentives, to enhance employee motivation and retention[24]. Market Position and Strategy - The company achieved a total order amount of approximately RMB 29 billion in 2021, providing a solid foundation for future performance[33]. - The company signed orders exceeding RMB 28 billion in 2021, with domestic orders amounting to over RMB 25.5 billion, representing a year-on-year growth of approximately 65%[34]. - The overseas subsidiary BIOMERE secured orders of about RMB 2.8 billion in 2021, reflecting a year-on-year increase of approximately 75%[36]. - The company is focused on expanding its market presence through strategic partnerships and investments in biotechnology, aiming for long-term growth[109]. - The company plans to expand its market presence and is focusing on new product development and technological advancements[107]. Governance and Compliance - The financial report has been audited by KPMG Huazhen, which issued a standard unqualified opinion[2]. - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report[2]. - The company maintained independent operations and governance, ensuring no interference from controlling shareholders during the reporting period[100]. - The company has implemented measures to maintain independence in assets, personnel, and operations from controlling shareholders[101]. - The company has not faced any penalties from securities regulatory authorities in the past three years[114]. Research and Development - The company is committed to adhering to Good Laboratory Practice (GLP) standards in its research activities[7]. - The company has established a complete cell testing system in 2021, addressing the quality inspection needs for cell lines and cell banks, which is expected to become a new growth point[31]. - The company’s clinical sample testing segment has expanded to include a wide range of innovative drugs, significantly reducing method transfer time for clients[29]. - The company has developed specialized evaluation techniques for various innovative biopharmaceuticals, including gene drugs and complex antibody drugs, creating new competitive advantages[55]. - The company is investing in research and development to innovate new products, aiming to launch at least three new products in the next fiscal year[107]. Environmental Responsibility - The company emphasized the importance of environmental protection and sustainable development in its operational policies[140]. - The company has established a comprehensive environmental management system and conducts regular checks on its environmental performance[140]. - The company has committed to improving its wastewater treatment facilities to meet higher standards[143]. - The company implemented measures to reduce carbon emissions, including the use of energy-efficient LED lights and electric vehicles[144]. - The company conducted regular third-party inspections to ensure compliance with environmental discharge standards[143]. Risks and Challenges - The company faces risks from fluctuating international economic conditions and potential reductions in pharmaceutical innovation investments due to the ongoing COVID-19 pandemic[96]. - The company acknowledges the challenges posed by the COVID-19 pandemic and its potential impact on business operations, despite current control measures[98]. - The company is committed to maintaining its core competitive advantages amid increasing market competition in the non-clinical CRO industry[97]. - The company is focused on developing new technical methods to adapt to industry trends and maintain its leading position in the market[98].

Financial Performance - Q3 2021 revenue reached ¥322,247,927.52, an increase of 37.62% year-over-year[2] - Net profit attributable to shareholders was ¥94,271,234.99, up 76.76% compared to the same period last year[2] - Net profit excluding non-recurring gains and losses for the period was ¥87,962,581.12, reflecting a 94.72% increase year-over-year[2] - Basic earnings per share for Q3 2021 was ¥0.36, up 111.76% from the previous year[3] - Total operating revenue for the first three quarters of 2021 reached ¥856,804,399.15, a 35.7% increase from ¥631,513,285.48 in the same period of 2020[15] - Net profit for the third quarter of 2021 was ¥247,009,521.78, compared to ¥142,479,212.65 in the same quarter of 2020, representing a 73.2% increase[17] - The net profit attributable to shareholders of the parent company for the third quarter of 2021 was ¥248,006,161.31, up from ¥143,556,153.79 in the previous year[19] - Basic earnings per share for the third quarter of 2021 were ¥0.95, compared to ¥0.45 in the same quarter of 2020[19] Cash Flow and Investments - Cash flow from operating activities for the year-to-date period was ¥463,447,574.19, showing a 106.82% increase[3] - The company reported a significant increase in cash flow due to higher sales collections resulting from business growth[7] - The net cash flow from operating activities for the first three quarters of 2021 was CNY 463,447,574.19, a significant increase of 106.7% compared to CNY 224,084,428.91 in the same period of 2020[20] - Total cash inflow from investment activities was CNY 404,057,385.13, up from CNY 331,436,170.51 in the previous year, while cash outflow for investment activities surged to CNY 2,290,934,619.51 from CNY 508,987,148.73[21] - The cash flow from investment activities showed a net outflow of CNY 1,886,877,234.38, compared to a net outflow of CNY 177,550,978.22 in the previous year, indicating increased investment activities[21] - The company’s cash inflow from financing activities was primarily driven by CNY 5,407,415,864.64 received from investments, a significant increase from CNY 32,872,124.88 in the previous year[21] Assets and Liabilities - Total assets at the end of the reporting period were ¥8,201,780,654.41, a 289.11% increase from the previous year[3] - The total assets of the company as of September 30, 2021, amount to 8,201,780,654.41 RMB, compared to 2,107,821,636.06 RMB at the end of 2020[13] - The total liabilities of the company as of September 30, 2021, are 1,237,063,156.75 RMB, compared to 760,042,162.51 RMB at the end of 2020[13] - Total liabilities as of the end of the third quarter of 2021 amounted to ¥1,388,193,843.40, significantly higher than ¥883,657,479.78 at the end of the third quarter of 2020[17] - Total current assets as of the end of the reporting period were CNY 1,182,910,934.76, slightly down from CNY 1,182,686,692.14 at the beginning of the year[23] - Total liabilities decreased to $883,657,479.78 from $951,093,100.06, representing a reduction of about 7%[24] - Non-current liabilities decreased significantly from $176,785,397.88 to $123,615,317.27, a drop of around 30%[24] Shareholder Information - The total number of common shareholders at the end of the reporting period is 25,231[8] - The largest shareholder, Feng Yuxia, holds 89,702,855 shares, representing 23.57% of the total shares[9] - Total equity attributable to shareholders of the parent company reached ¥6,815,318,386.55, compared to ¥1,224,899,092.29 in the previous year[17] Business Growth and Orders - The increase in revenue and net profit was primarily driven by business growth and interest income from raised funds[6] - The company has secured over 3 billion RMB in orders as of the end of the reporting period, reflecting a year-on-year increase of over 70% in new orders[10] Research and Development - Research and development expenses for the third quarter of 2021 were ¥35,019,894.79, a decrease from ¥48,885,489.44 in the same period of 2020[17] Accounting and Financial Reporting - The company has implemented revised accounting standards for leases effective January 1, 2021, impacting financial reporting[26]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2021, representing a year-on-year increase of 25%[1]. - The net profit attributable to shareholders was 300 million RMB, up 30% compared to the same period last year[1]. - The company's operating revenue for the first half of the year reached ¥534,556,471.63, representing a 34.53% increase compared to ¥397,354,998.31 in the same period last year[14]. - The net profit attributable to shareholders was ¥153,734,926.32, a significant increase of 70.39% from ¥90,223,461.98 in the previous year[14]. - The net cash flow from operating activities was ¥202,465,705.85, up 31.18% from ¥154,344,394.21 year-on-year[14]. - The total assets of the company increased to ¥7,869,165,124.10, reflecting a 273.33% growth compared to ¥2,107,821,636.06 at the end of the previous year[14]. - The net assets attributable to shareholders surged to ¥6,610,662,672.42, marking a 439.69% increase from ¥1,224,899,092.29 at the end of last year[14]. - Basic earnings per share rose to ¥0.60, a 50.00% increase from ¥0.40 in the same period last year[15]. - The diluted earnings per share increased to ¥0.59, up 47.50% from ¥0.40 year-on-year[15]. - The company reported a weighted average return on equity of 3.17%, down 6.96 percentage points from 10.13% in the previous year[15]. Market Expansion and Client Growth - The company expanded its client base by 20%, reaching a total of 200 clients in the first half of 2021[1]. - The company aims to enter two new international markets by the end of 2022, focusing on Europe and North America[1]. - The company’s orders in the first half of 2021 reached approximately RMB 400 million, a year-on-year increase of over 150%[51]. - The overseas subsidiary BIOMERE secured orders of approximately USD 21.5 million, reflecting a year-on-year growth of over 60%[57]. - The company’s domestic orders from overseas clients reached approximately RMB 73 million, a year-on-year increase of over 80%[57]. Research and Development - The number of new drug development projects increased by 15%, with a total of 50 active projects as of June 30, 2021[1]. - The company plans to invest 200 million RMB in R&D for new technologies and products in the next fiscal year[1]. - The company is enhancing its service capabilities and applying new technologies, particularly in the evaluation of innovative drugs, which supports future business expansion[27]. - The company is focusing on developing a leading, efficient, and stable genetic resource and gene engineering technology platform for experimental animals, particularly for new drug development[25]. - The company has established a unique golden industrial chain for preclinical research services, clinical trials, and related services, ensuring high-quality service for clients[18]. Operational Efficiency and Compliance - The company ensures compliance with regulatory requirements and quality management standards in all its services, thereby reducing the risk and increasing the efficiency of drug development for clients[22]. - The company has established a strict procurement process, ensuring effective control over procurement applications, approvals, inquiries, supplier selection, and payments[25]. - The company has implemented a laboratory information management system (LIMS) to improve work efficiency and ensure compliance with GLP regulations, significantly increasing data reliability and integrity[40]. - The company has optimized its organizational structure and compensation system to enhance employee engagement and improve service efficiency[48]. Financial Position and Assets - The company's total assets increased to CNY 115,943.39 million as of June 30, 2021, compared to CNY 79,488.33 million in the same period of 2020, representing a growth of 46.0%[69]. - The total liabilities increased to approximately ¥1.10 billion from ¥760.04 million, reflecting a growth of about 45%[107]. - The company's long-term equity investments increased to approximately ¥102.44 million from ¥64.44 million, showing a growth of about 59%[107]. - The total current assets as of June 30, 2021, amounted to approximately ¥5.37 billion, a significant increase from ¥1.18 billion as of December 31, 2020, reflecting a growth of about 354%[106]. - Cash and cash equivalents increased to approximately ¥4.20 billion from ¥308.69 million, representing a growth of over 1,260%[106]. Risks and Challenges - The company has identified potential risks related to regulatory changes and market competition, which may impact future performance[1]. - Intense market competition in the preclinical CRO industry poses risks, with competitors expanding capacity and facilities, potentially impacting profitability if the company fails to maintain its competitive edge[72]. - The company faces talent recruitment risks due to the urgent need for management, technical, and marketing personnel as business scales and expands[71]. - The COVID-19 pandemic has posed operational challenges, although its overall impact on production has been limited; future developments remain uncertain[76]. Environmental and Social Responsibility - Environmental management practices are in place, with a focus on pollution prevention and sustainable development, including regular third-party inspections of emissions[84]. - The company has implemented measures to reduce carbon emissions, including the use of energy-efficient LED lighting and electric vehicles[89]. - The company has established a wastewater treatment facility that meets the standards for discharge into public systems[88]. - The company has engaged third-party testing to ensure compliance with environmental discharge standards[88]. Shareholder and Corporate Governance - The company reported a total share count of 270,820,329 after the issuance of 43,365,600 new shares, representing a 19.1% increase in total shares[96]. - The company has committed to avoiding any competition with its controlling shareholders and related parties, ensuring compliance with competitive regulations[90]. - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[80]. - The company has not reported any violations or penalties related to its directors, supervisors, or controlling shareholders[94].

Financial Performance - Net profit attributable to shareholders was RMB 93.36 million, up 388.07% year-on-year[4] - Operating revenue for the period was RMB 200.99 million, representing a growth of 29.91% compared to the same period last year[4] - Basic earnings per share rose to RMB 0.39, a 333.33% increase from RMB 0.09 in the previous year[4] - Excluding the impact of foreign exchange gains, net profit growth rate was 85.44%[4] - The company reported a total comprehensive income of ¥62,388,926.44 for Q1 2021, compared to ¥22,630,107.43 in Q1 2020[23] - The company's net profit for Q1 2021 was CNY 56,060,823.09, a significant increase compared to CNY 934,455.09 in Q1 2020, reflecting a growth of approximately 5,900%[25] - Total revenue from operating activities reached CNY 334,525,902.11, up from CNY 232,670,305.50 in the same period last year, indicating a growth of about 43.8%[27] Assets and Liabilities - Total assets reached RMB 7.63 billion, an increase of 262.17% compared to the end of the previous year[4] - Total liabilities increased to ¥1,037,666,885.26, up from ¥883,657,479.78, representing a growth of approximately 17.5% year-over-year[16] - Current liabilities totaled ¥875,120,280.13, compared to ¥760,042,162.51, indicating an increase of about 15.1%[16] - Non-current liabilities rose to ¥162,546,605.13 from ¥123,615,317.27, reflecting a growth of approximately 31.5%[16] - Total equity attributable to shareholders reached ¥6,597,313,422.62, significantly up from ¥1,224,899,092.29, marking an increase of around 438.5%[17] - Total assets of the company reached ¥7,633,988,121.93, a substantial increase from ¥2,107,821,636.06, reflecting overall growth in the company's financial position[15] - Total liabilities amounted to ¥883,657,479.78, a decrease of ¥67,435,620.28 compared to the previous period[33] Cash Flow - The company reported a net cash flow from operating activities of RMB 34.48 million, a slight increase of 0.49% year-on-year[4] - Cash and cash equivalents increased significantly to ¥5,657,723,895.31 from ¥308,689,959.55, a change of 1732.82% due to funds raised from the Hong Kong stock market[9] - The net cash flow from financing activities was ¥5,312,443,354.88, a dramatic increase of 331480.4% compared to ¥1,602,158.28 in the previous period, mainly due to funds raised from the Hong Kong stock market[12] - Cash inflow from operating activities totaled CNY 127,310,706.37, a significant increase of 86% compared to CNY 68,375,500.49 in Q1 2020[30] - The net increase in cash and cash equivalents was CNY 5,365,357,040.52, compared to a decrease of CNY 6,288,742.53 in the previous year[31] Shareholder Information - The number of shareholders reached 21,198 by the end of the reporting period[7] - The top shareholder, Feng Yuxia, holds 23.66% of the shares, totaling 64,073,468 shares[8] Other Financial Metrics - The weighted average return on equity increased by 0.80 percentage points to 3.08%[4] - The company completed its H-share listing on February 26, 2021, raising HKD 6.373 billion, with a foreign exchange gain impacting net profit by RMB 57.89 million[4] - The company incurred financial expenses of CNY 67,971,575.70, compared to CNY 45,241.27 in the previous year, indicating a rise in financial costs[25] - Research and development expenses for Q1 2021 were ¥9,878,808.23, a decrease of 16% from ¥11,760,553.48 in Q1 2020[22]

Financial Performance - In 2020, the company's operating revenue reached approximately CNY 1.08 billion, representing a year-on-year increase of 68.27%[17]. - The net profit attributable to shareholders was approximately CNY 291.92 million, an increase of 78.91% compared to the previous year[17]. - The basic earnings per share for 2020 was CNY 1.40, up 68.67% from CNY 0.83 in 2019[18]. - The total assets of the company at the end of 2020 were approximately CNY 2.11 billion, a 45.97% increase from the previous year[17]. - The company reported a net cash flow from operating activities of approximately CNY 428.39 million, a significant increase of 189.27% year-on-year[17]. - The weighted average return on equity for 2020 was 30.78%, an increase of 5.28 percentage points compared to 2019[18]. - The company achieved a quarterly revenue of CNY 444.39 million in Q4 2020, contributing to a total annual revenue of CNY 1.08 billion[21]. - The company reported a significant increase in clinical services revenue, which grew by 327.49% year-on-year[59]. - The company reported a total comprehensive income of 342,139,007.58 CNY, up from 185,892,576.85 CNY, which is an increase of approximately 84.0%[196]. Shareholder Information - The company plans to distribute a cash dividend of 3.5 yuan (including tax) for every 10 shares, and to increase capital by converting 4 shares for every 10 shares held[4]. - The total number of ordinary shares increased from 161,716,920 to 227,454,729 after the implementation of the 2019 annual equity distribution plan[134]. - The top shareholder, Feng Yuxia, holds 64,073,468 shares, representing 28.17% of the total shares[143]. - The second-largest shareholder, Zhou Zhiwen, has 34,568,986 shares, accounting for 15.20%[143]. - The third-largest shareholder, Gu Xiaolei, owns 16,078,455 shares, which is 7.07% of the total[143]. - The total number of shares held by the top ten shareholders is significant, with the largest four shareholders alone holding over 50% of the total shares[143]. - The report indicates that there are no known relationships or concerted actions among the top shareholders, except for familial ties between some[144]. Corporate Governance - The company has received a standard unqualified audit report from KPMG Huazhen[3]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[3]. - The company has established a rigorous governance structure to protect the rights of all shareholders, including minority shareholders[171]. - The company maintains independence from its controlling shareholders, ensuring no interference in decision-making or operations[171]. - The company has not reported any major differences in governance practices compared to the requirements set by the China Securities Regulatory Commission[172]. - The company has a board of directors consisting of ten members, including four independent directors, and has established four specialized committees[171]. Market and Industry Outlook - The domestic CRO market is expected to grow due to rising investment in drug development and the increasing internationalization of domestic CRO capabilities[34]. - The global CRO market size was approximately $62.6 billion in 2019 and is expected to reach $96 billion by 2024, with a CAGR of about 8.9% from 2019 to 2024[38]. - The Chinese CRO market size was around $6.8 billion in 2019, projected to grow to $22.2 billion by 2024, reflecting a CAGR of 26.5%[38]. - The company aims to expand its market share in preclinical pharmacology and toxicology evaluation services, while also enhancing clinical CRO and drug safety services[81]. - The company plans to enhance its international service capabilities and is currently transitioning to the third phase of its internationalization strategy, focusing on international client submissions[84]. Research and Development - The company is investing 10% of its revenue into R&D for new technologies and drug evaluation methods[153]. - The company has expanded its professional service team to nearly 1,500 members by December 31, 2020, improving technical capabilities in preclinical research services[45]. - The company aims to enhance its pharmacology and toxicology research capabilities in 2021, ensuring compliance with regulatory requirements[90]. - The company focuses on drug preclinical research services, which include non-clinical safety evaluation and pharmacodynamics research, essential for drug development[26]. Compliance and Risk Management - The company emphasizes the uncertainty of future plans and development strategies, warning investors of potential risks[5]. - The company faces risks related to regulatory compliance, talent recruitment, and market competition, which could impact its operational performance[92][93][94]. - The company has committed to avoiding competition with its controlling shareholders and related parties, ensuring no direct or indirect business activities that compete with the company[102]. Environmental and Social Responsibility - The company has implemented a comprehensive environmental management system, ensuring 100% compliance in pollutant discharge standards[130]. - The company emphasizes the importance of environmental protection and sustainable development in its operational strategy[129]. - The company has established a waste disposal agreement with a third-party service provider for medical and hazardous waste, with annual disposal amounts of 49.87 tons and 19.344 tons respectively[131]. Employee and Management Information - The total number of employees in the parent company is 423, while the total number of employees in major subsidiaries is 1,060, resulting in a combined total of 1,483 employees[164]. - The company has 1,088 technical personnel, which constitutes the majority of its workforce[165]. - The remuneration policy for management is based on an annual salary system linked to the company's annual performance[166]. - The company conducted a total of 6,557 training sessions in 2020, representing a 7% increase in training participation compared to 2019[167].

Financial Performance - Operating income rose by 81.23% to CNY 631,513,285.48 for the period from January to September[5] - Net profit attributable to shareholders increased by 53.19% to CNY 118,284,074.34 year-on-year[5] - The company reported a net profit of CNY 98,563,700.71 after deducting non-recurring gains and losses, up 61.34% year-on-year[5] - The company's net profit for the first nine months increased to RMB 473,508,745.76, a rise of 46.08% from RMB 324,137,555.97 in the same period last year[13] - The company's net profit attributable to shareholders for Q3 2020 was ¥42,619,280.03, compared to ¥36,788,021.80 in Q3 2019, representing an increase of approximately 5.5% year-over-year[26] - The net profit for the first nine months of 2020 was ¥28,424,089.87, compared to ¥26,861,994.36 for the same period in 2019, indicating a year-over-year increase of about 5.8%[29] Assets and Liabilities - Total assets increased by 26.93% to CNY 1,799,715,350.10 compared to the end of the previous year[5] - Current assets totaled RMB 897,743,517.80, up from RMB 640,664,749.31, indicating a year-over-year increase of about 40.0%[17] - Non-current assets reached RMB 901,971,832.30, compared to RMB 777,173,042.32, marking an increase of around 16.0%[17] - The total liabilities were RMB 829,538,902.47, compared to RMB 590,574,295.61, which is an increase of approximately 40.5%[18] - The company's total liabilities and equity amounted to RMB 1,799,715,350.10, consistent with the total assets, indicating a balanced financial position[19] - Total liabilities increased from RMB 590,574,295.61 to RMB 649,326,786.00, an increase of RMB 58,752,490.39[37] Shareholder Information - The total number of shareholders reached 17,882 by the end of the reporting period[9] - The top two shareholders, Feng Yuxia and Zhou Zhiwen, hold 28.27% and 15.55% of the shares, respectively[9] Cash Flow - Net cash flow from operating activities surged by 130.41% to CNY 224,084,428.91 for the first nine months[5] - The cash inflow from sales of goods and services of CNY 869,407,470.07 in the first three quarters of 2020, compared to CNY 414,445,908.96 in 2019, marking an increase of approximately 109.0%[31] - The ending cash and cash equivalents balance as of the end of the third quarter of 2020 was CNY 196,270,339.84, up from CNY 164,338,229.94 at the end of the same period in 2019, reflecting an increase of about 19.4%[32] Research and Development - Research and development expenses increased by 82.79% to RMB 48,885,489.44, reflecting the company's commitment to innovation[14] - Research and development expenses for Q3 2020 were ¥20,830,792.95, compared to ¥10,783,682.98 in Q3 2019, indicating an increase of approximately 93.5%[25] - Research and development expenses for Q3 2020 were ¥10,253,341.98, significantly higher than ¥3,655,808.20 in Q3 2019, reflecting an increase of approximately 180.5% year-over-year[28] Other Income and Comprehensive Income - Non-operating income for the period included government subsidies amounting to CNY 8,130,270.12[8] - The company experienced a significant increase in other comprehensive income, which rose by 1163.35% to RMB 34,753,662.75, mainly due to foreign currency translation differences[12] - The total comprehensive income for the first nine months of 2020 was ¥68,660,057.84, compared to ¥26,861,994.36 in the same period of 2019, indicating a substantial increase[30] Inventory and Accounts Receivable - Accounts receivable increased by 262.25% to RMB 1,745,407.70, primarily due to increased service payments during the period[11] - Inventory rose by 57.36% to RMB 343,881,218.15, mainly due to an increase in raw materials and unfinished projects[11] - Accounts receivable decreased by RMB 10,892,224.89, from RMB 106,368,459.63 to RMB 95,476,234.74[35] Goodwill and Intangible Assets - The acquisition of BIOMERE contributed to goodwill of RMB 130,772,418.07 and intangible assets of RMB 124,973,332.30[12] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[15]

Financial Performance - The company reported a total revenue of 200 million RMB for the first half of 2020, representing a year-on-year increase of 15%[7]. - The net profit attributable to shareholders for the same period was 50 million RMB, up 20% compared to the previous year[7]. - The company's operating revenue for the first half of 2020 reached ¥397,354,998.31, representing a 97.82% increase compared to ¥200,863,882.79 in the same period last year[13]. - Net profit attributable to shareholders was ¥75,664,794.31, up 87.17% from ¥40,424,948.34 year-on-year[13]. - The net cash flow from operating activities was ¥154,344,394.21, reflecting a 109.33% increase from ¥73,732,570.01 in the previous year[13]. - The management has provided a revenue guidance of 450 million RMB for the full year 2020, indicating a growth target of 12.5%[7]. - The company reported a significant increase in unallocated profits to approximately 430.89 million, up from 287.79 million year-over-year, representing a growth of about 49.6%[65]. - The company reported a net profit for the first half of 2020 of approximately 5.06 million, compared to 2.73 million in the same period of 2019, indicating an increase of about 85.2%[71]. Research and Development - Research and development expenses increased by 25% year-on-year, reflecting the company's commitment to innovation[7]. - The R&D expenses for the first half of 2020 were approximately RMB 28.05 million, a 75.77% increase from the previous year, reflecting increased investment in research and development[62]. - The company has established a new research center in Suzhou, which is expected to enhance its R&D capabilities significantly[7]. - The company aims to reduce the risks of drug development for clients while improving the efficiency of the drug development process[22]. - The company is enhancing its service capabilities and applying new technologies to improve evaluation capabilities for innovative drugs, including monoclonal antibodies and gene therapies[29]. Market Expansion and Strategy - The company has expanded its user base by 10% in the first half of 2020, reaching a total of 1 million active users[7]. - The company plans to launch two new products in Q3 2020, aiming to capture an additional 5% market share[7]. - The company is exploring potential acquisitions to enhance its service offerings and expand its market presence[7]. - The company has seen a significant increase in new clients, strategic partnerships, and order volume due to the expansion of its sales team and enhanced training[24]. - The order backlog at the end of the reporting period was approximately RMB 1.4 billion, an increase of about 40% compared to the same period last year, providing a solid foundation for future growth[59]. Operational Capacity and Facilities - The company has established two GLP laboratories in Beijing and Suzhou, with a total construction area of approximately 75,000 square meters and usable facility area of about 67,000 square meters[42]. - The company has completed the construction of an 10,800 square meter animal facility in Suzhou, which significantly increased animal breeding capacity and service efficiency[53]. - The company is expanding its experimental facilities and technical teams to address order fulfillment and capacity constraints, leading to economies of scale[29]. - The company has invested in over 1,500 advanced equipment and software systems to meet various testing requirements, enhancing its comprehensive service capabilities[44]. Compliance and Risk Management - The report highlights potential risks related to market competition and regulatory changes that could impact future performance[3]. - The company is committed to meeting regulatory requirements for drug safety monitoring and has established a comprehensive drug safety monitoring system[30]. - The company has a strict procurement management system to ensure the quality of experimental animals and related supplies, adhering to GLP standards[23]. - The company has a dedicated drug safety team to provide customized services based on client needs, ensuring compliance with national regulations[26]. Environmental and Social Responsibility - The company emphasizes a 100% compliance rate for its environmental performance and aims for continuous improvement in pollution prevention measures[93]. - The company has implemented a clean production initiative and energy-saving measures to enhance its environmental sustainability[93]. - The company reported a total pollutant discharge of 8,725 cubic meters of wastewater, complying with the national discharge standards[94]. - The company has signed agreements with third-party service providers for the disposal of medical and hazardous waste, ensuring proper handling and compliance[94]. Shareholder and Equity Management - The total number of ordinary shareholders reached 18,665 by the end of the reporting period[99]. - The top ten shareholders held a total of 64,098,468 shares, representing 28.28% of the total shares[100]. - The company has committed to a 36-month lock-up period for newly listed shares, affecting multiple shareholders[102]. - The company will take measures to stabilize the stock price if the stock price falls below the audited net asset value due to non-force majeure factors[82]. Financial Position and Assets - The company's total assets increased by 21.38% to ¥1,720,969,150.90 from ¥1,417,837,791.63 at the end of the previous year[13]. - The company's total liabilities increased to RMB 794,182,603.01, up from RMB 590,574,295.61, indicating an increase of approximately 34.5%[113]. - The company's equity attributable to shareholders was RMB 695,040,382.13, up from RMB 666,472,162.81, reflecting a growth of about 4.3%[116]. - The company’s financial assets measured at fair value increased to approximately 150.64 million from 130.70 million, reflecting a growth of about 15.3%[69]. Corporate Governance - The company appointed a new Chief Financial Officer, Yu Aishui, on April 10, 2020, replacing Gao Dapeng[109]. - The company has no major litigation or arbitration matters during the reporting period[88]. - The company has committed to compensating investors for losses caused by non-compliance with stock price stabilization commitments[86].