2020 年第一季度报告 公司代码：603127 公司简称：昭衍新药 北京昭衍新药研究中心股份有限公司 2020 年第一季度报告 1 / 26 2020 年第一季度报告 一、 二、 11Í 四、 目录 | --- | |----------------| | | | 重要提示 . | | 公司基本情况 . | | 重要事项 . | | 附录 . | 2 / 26 2020 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人冯宇霞、主管会计工作负责人于爱水及会计机构负责人（会计主管人员）于爱水 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |-------------------------------------------------|--------- ...

Dividend and Capital Reserve Distribution - The company plans to distribute a cash dividend of 3.4 yuan per 10 shares and issue a capital reserve of 4 shares per 10 shares[4] - In 2019, the company distributed a cash dividend of RMB 54,983,752.8, accounting for 30.82% of the net profit attributable to ordinary shareholders[105] - In 2018, the cash dividend amounted to RMB 34,498,380, representing 31.82% of the net profit attributable to ordinary shareholders[105] - In 2017, the cash dividend was RMB 24,641,700, which was 32.23% of the net profit attributable to ordinary shareholders[105] Corporate Governance and Shareholder Commitments - The company has no non-operational fund occupation by controlling shareholders or related parties[4] - The company has no violations of decision-making procedures for external guarantees[4] - The company's controlling shareholders, Feng Yuxia and Zhou Zhiwen, committed to avoiding同业竞争 and have strictly adhered to this commitment since August 25, 2017[107] - Feng Yuxia and Zhou Zhiwen pledged not to transfer or entrust others to manage their shares for 36 months following the company's listing[107] - 28 other shareholders, including Zuo Conglin and Sun Yunxia, also committed to not transferring or entrusting others to manage their shares for 36 months post-listing[108] - Directors, supervisors, and senior management are restricted from transferring more than 25% of their directly or indirectly held shares annually after the lock-up period[108] - Senior management and directors are required to maintain a减持 price not lower than the IPO price for two years post-lock-up[108] - Feng Yuxia, Zhou Zhiwen, and other key individuals have expressed long-term holding intentions, with减持 limits of 2% and 5% of their holdings in specific periods post-lock-up[108] - The company has committed to stabilizing its stock price by repurchasing shares if the stock price falls below the net asset value per share for 20 consecutive trading days[109] - The company will use its own funds for share repurchases, with the total amount not exceeding the funds raised from the initial public offering[110] - The company's share repurchase plan requires approval from more than half of the board members and two-thirds of the shareholders[110] - The company's single repurchase amount should be between 10% and 20% of the previous year's net profit attributable to the parent company[110] - The company's single repurchase amount should not exceed 2% of the total shares[110] - The total repurchase amount in a fiscal year should not exceed 30% of the previous year's net profit attributable to the parent company[110] - The controlling shareholders will increase their holdings if the stock price remains below the net asset value per share for 10 consecutive trading days after the repurchase plan expires[111] - The controlling shareholders' increase in holdings should not exceed 2% of the total shares within 12 months[112] - The company's directors and senior management will increase their holdings if the stock price remains below the net asset value per share for 10 consecutive trading days after the controlling shareholders' increase in holdings[112] - The company's directors and senior management will use their personal funds to increase their holdings, with the amount not exceeding their total salary from the previous year[113] - The company's controlling shareholders, Feng Yuxia and Zhou Zhiwen, have committed to fulfilling their obligations to stabilize the stock price and will publicly apologize and compensate investors if they fail to do so, unless due to force majeure[116] - The company's directors and senior management have also committed to stabilizing the stock price and will publicly apologize and compensate investors if they fail to fulfill their obligations, unless due to force majeure[117] Subsidiaries and Business Operations - The company's subsidiaries include JOINN Laboratories (Delaware) Corporation and Biomedical Research Models, Inc[7] - The company operates in the contract research organization (CRO) sector, providing preclinical research services[7] - The company holds a 91% stake in Beijing JOINN Mingxun Pharmaceutical Technology Co., Ltd[7] - The company's subsidiaries are located in Beijing, Suzhou, Chongqing, Guangzhou, and Wuzhou[7] - The company is involved in pharmacology, toxicology, and dose-response relationship studies[8] - The company's core business is drug preclinical research services, including non-clinical safety evaluation, pharmacodynamics, animal pharmacokinetics, and drug screening[26] - The company established two GLP laboratories in Beijing and Suzhou for preclinical evaluation, adhering to strict GLP regulations[29] - The company's preclinical research services include safety pharmacology, single-dose toxicity, repeated-dose toxicity, toxicokinetics, reproductive toxicity, genotoxicity, carcinogenicity, local toxicity, and immunogenicity tests[27] - The company's pharmacodynamics research services focus on studying drug mechanisms, dose-response relationships, and PD/PK trials to support clinical trials[28] - The company's subsidiaries, Suzhou Zhaoyan Medicine and Beijing Zhaoyan Medicine, provide early-stage clinical trial services, including regulatory/registration, medical writing, clinical monitoring/auditing, data management, and statistical services[28] - The company's drug safety monitoring services include pharmacovigilance system setup, quality management, case report processing, safety summary report writing, signal and risk management, and safety research[28] - The company's experimental animal supply includes mice, rats, and non-human primates, primarily for internal use and domestic industry demand[29] - The company has established a systematic preclinical drug evaluation technology platform and GLP quality management system, passing GLP certification or inspection in China and multiple countries[30] - The company's core business is providing technical services for drug preclinical evaluation, generating revenue through research service fees[30] - The company expanded its sales team, leading to a significant increase in new clients, strategic partnerships, and order volume[33] - The clinical business focuses on early-stage clinical trials (Phase I and BE trials), offering a one-stop service from preclinical evaluation to clinical trials[33] - The company is developing a leading, efficient, and stable experimental animal genetic resource and gene engineering technology platform, focusing on creating animal disease models for new drug R&D[35] - The company's preclinical research services are driven by increased domestic and international drug R&D investments and the "4+7" volume-based procurement policy, boosting demand for preclinical CRO services[36] - Subsidiary Suzhou Zhaoyan has expanded experimental facilities and increased technical teams to address capacity constraints, gradually releasing production capacity[37] - The company has enhanced its service capabilities, particularly in evaluating innovative drugs, such as ophthalmic drugs and inhalation route administration, strengthening its industry competitiveness[37] - The company's facilities cover approximately 75,000 square meters, with 67,000 square meters in use, including 32,000 square meters for animal housing[50] - The company employs over 1,100 professionals, capable of handling nearly 1,000 experimental projects simultaneously[52] - The company has established an advanced laboratory information management system (LIMS) to enhance data reliability and operational efficiency[52] - The company has accumulated over 20 years of experience in preclinical drug research, conducting nearly 1,200 preclinical studies and evaluation tests from 2017 to 2019[53] - From 2017 to 2019, the company added 598 biologics, 505 chemical drugs, and 35 traditional Chinese medicine drugs to its preclinical research portfolio[53] - The company has conducted over 100 major innovative drug projects supported by national programs and evaluated more than 200 antibody drugs[54] - In the past 3 years, the company completed over 300 international registration projects for drugs entering or about to enter clinical trials abroad[54] - The company passed FDA GLP inspections in 2009 and 2013, becoming one of the first CROs in China to achieve this[55] - The company obtained AAALAC certification in 2008, with subsequent inspections in 2011, 2014, and 2017[55] - The company plans to build a 565-acre primate breeding base in Guangxi with a capacity of 15,000 animals[57] - As of 2019, the company has a professional service team of over 1,100 people[59] - The company implemented a restricted stock and stock option incentive plan in July 2019 to expand employee coverage and motivation[59] - The company completed the renovation of the small animal facility in June 2019, significantly alleviating facility supply constraints. The subsidiary Suzhou Zhaoyan also began using Animal Building 3 and 7 in July 2019, greatly increasing service throughput and capacity. Additionally, a 3,500 square meter functional laboratory, including molecular biology, pathology, biosafety level 2 (P2), and clinical sample analysis labs, was completed and gradually put into use in November 2019[60] - In 2019, the company assisted clients in completing IND applications for over 230 large-molecule innovative drugs, with 60 approvals. The company also established a radioactive isotope laboratory, which, once completed, will enable independent animal PET-CT and other advanced detection technologies[60] - Suzhou Zhaoyan Medicine, established in 2018, has signed contracts with multiple municipal-level hospitals to jointly build early clinical centers. By 2019, two Phase I clinical research centers had completed hardware, team, and quality system construction and began undertaking clinical trial projects[61] - Zhaoyan Mingxun, focusing on drug safety monitoring, has established partnerships with over 50 companies since its inception in 2018, including drug license holders, R&D firms, manufacturers, and CROs. The company also developed a one-stop drug safety management platform, iPVMAP, and a device vigilance platform[62] - The company's subsidiary Suzhou Qichen, established in 2019, has built high-standard cell and molecular biology labs and established a stable large-animal somatic cell experimental system. It is currently working on creating humanized animal models for ophthalmology, oncology, and immunology[63] - As of the end of 2019, the company's backlog of orders was approximately 1.04 billion yuan, a 30% increase year-over-year, providing a solid foundation for future performance growth[64] - In 2019, the company's contract value increased by over 50% compared to 2018, maintaining rapid growth. The company also participated in multiple international academic conferences, significantly enhancing its industry reputation, particularly in ophthalmology drug evaluation[65] - In December 2019, the company completed the acquisition of BIOMERE, a U.S.-based preclinical CRO, marking its first international M&A. This acquisition expands the company's U.S. market presence and enhances its brand influence in overseas markets[66] - The company plans to expand production facilities, aiming to double production capacity within the next 3 years[87] - The company is focusing on building a full-chain service capability, including drug discovery, clinical research, and product sales[88] - The company aims to enhance international service capabilities and establish overseas branch service institutions[88] - The company is developing new technologies and methods to meet the needs of innovative drugs[90] - The company plans to increase investment in international markets and expand its presence in the U.S. and Europe[91] - The company is building a clinical sample bioanalysis laboratory to enhance clinical sample analysis services[92] - The company is creating an international first-class primate research platform through international and domestic cooperation[93] - The company's internationalization strategy for preclinical CRO business is progressing from Phase 2 (domestic clients with international applications) to Phase 3 (international clients with international applications), with the acquisition of Biomere accelerating this transition[95] - Biomere's preclinical business focuses on drug screening and efficacy, and the acquisition enhances the company's integrated service capabilities, facilitating international client expansion[95] - The company plans to expand Biomere's business from the US East Coast to the West Coast, leveraging existing market presence in California[95] - The company aims to increase preclinical business revenue and expand innovative business growth, with a focus on new areas such as antibody targets, nucleic acid vaccines, stem cells, gene therapy, and UCAR[96] - The company plans to expand marketing efforts internationally, increase marketing personnel, and adjust sales incentive policies to drive new business market development[96] - In 2020, the company plans to renovate 5,400 square meters of animal facilities and 4,400 square meters of laboratories in Suzhou to prepare for growing business orders[98] - The company will continue to build new drug evaluation centers in Guangzhou and Chongqing in 2020[98] - The company aims to complete the construction of the Taicang clinical trial base and ensure full operational capability in the second half of 2020[99] - The company plans to expand the clinical CRO team and build capabilities to handle international projects internally without subcontracting[99] - The company will invest in expanding Biomere's facilities, equipment, and personnel to enhance capacity, technical capabilities, and profitability[100] Financial Performance and Metrics - Revenue in 2019 increased by 56.40% year-on-year to RMB 639,379,338.02[17] - Net profit attributable to shareholders of the company in 2019 increased by 64.64% year-on-year to RMB 178,372,735.97[19] - Basic earnings per share in 2019 increased by 65.67% year-on-year to RMB 1.11[20] - Weighted average return on equity in 2019 increased by 6.36 percentage points year-on-year to 24.35%[20] - Total assets at the end of 2019 increased by 24.22% year-on-year to RMB 1,417,837,791.63[19] - Revenue in the fourth quarter of 2019 was RMB 290,924,164.59, the highest among all quarters[22] - Net profit attributable to shareholders of the company in the fourth quarter of 2019 was RMB 101,889,622.52, the highest among all quarters[22] - Government subsidies in 2019 amounted to RMB 10,601,975.01, an increase from RMB 9,199,659.17 in 2018[23] - The company's equity increased by 26.90% year-on-year to RMB 826,518,653.14 at the end of 2019[19] - Cash flow from operating activities in 2019 decreased by 15.89% year-on-year to RMB 148,092,126.18[19] - The company's derivative financial assets had an ending balance of 50,119,315.07 yuan, with a holding period return of 119,315.07 yuan[25] - The company's fund products had an ending balance of 80,581,275.45 yuan, with a holding period return of 581,275.45 yuan[25] - The company's transaction financial assets increased by 100% year-over-year due to increased investment in financial products[48] - Accounts receivable grew by 174.56% year-over-year, driven by increased service provision[48] - Fixed assets increased by 46.05% year-over-year, primarily due to the acquisition of BIOMERE and the transfer of construction in progress to fixed assets[49] - Intangible assets grew by 121.51% year-over-year, mainly due to the acquisition of BIOMERE[49] - Overseas assets amounted to 355,931,801.03 RMB, accounting for 25.10% of total assets[49] - The company's transaction financial assets increased to 1.307 billion yuan, accounting for 9.22% of total assets, primarily due to the reclassification under new accounting standards and increased purchase of financial products with idle funds[79] - Accounts receivable surged by 174.56% to 1.064 billion yuan, driven by increased service provision[79] - Inventory rose by 75% to 2.005 billion yuan, mainly due to increased raw materials and unresolved research projects[79] - Fixed assets grew by 46.05% to 4.183 billion yuan, largely due to the completion of construction projects and the acquisition of BIOMERE[79] - Intangible assets increased by 121.51% to 1.066 billion yuan, primarily due to the acquisition of BIOMERE[79] - Long-term equity investments reached 429.12 million yuan, up from 159.87 million yuan last year, mainly due to the acquisition of BIOMERE for $27.28 million[81][82] - The company invested 64.04 million yuan in the preclinical research base project, with a total investment of 175.79 million yuan by the end of 2019, and the project is expected to be operational by the end of 2020[83] - The experimental animal base project in Wuzhou has a total investment of approximately 400 million yuan, with 11.67 million yuan invested by the end of 2019[83] - Deferred tax assets increased by 257.49% to 260.05 million yuan, mainly due to share-based payments and deductible losses from the BIOMERE acquisition[79] - Deferred tax liabilities surged by 796.33% to 206.44 million yuan, driven by the BIOMERE acquisition and tax benefits on fixed assets[80] - Suzhou Zhaoyan's total assets decreased to 621.46 million yuan in 2019 from 666.17 million yuan in 2018[86] - Suzhou Zhaoyan's net income increased to 134.09 million yuan in 2019 from 81.49 million yuan in 2018[86] - Suzhou Zhaoyan's revenue grew to 394.14 million yuan in 2019 from 250.69 million yuan in 2018[86] - Revenue for the reporting period reached 639.38 million yuan, a year-on-year increase of 56.40%, with net profit attributable to shareholders of 178.37 million yuan, up 64.64% year-on-year[67] - Gross profit margin for the main business was 52.81%, a slight decrease of 0.26 percentage points compared to the same period last year[69] - Revenue from preclinical research services increased by 56.23% to 628.84 million yuan, with a gross margin of 53.31%[70] - Sales expenses increased by 88.24% to 12.47 million yuan, primarily due to increased employee compensation and business volume[75] - R&D investment totaled 39.63 million yuan, accounting for 6.20% of total revenue, with 98 R&D personnel making up 8.31% of the company's total workforce[75] - Net cash flow from operating activities decreased by 15.89% to 148.09 million yuan, mainly due to delayed payments, increased employee compensation, and higher procurement costs[77] - Net cash flow from investing activities increased by 62.12% to -102.09 million yuan, driven by the recovery of short-term cash management principal[77] - The top five

Financial Performance - Net profit attributable to shareholders rose by 33.66% to CNY 76,483,113.45 year-to-date[6] - Operating revenue for the first nine months increased by 42.95% to CNY 348,455,173.43 compared to the same period last year[6] - Total operating revenue for Q3 2019 reached ¥147,591,290.64, a 36% increase from ¥108,635,875.59 in Q3 2018[25] - Net profit for Q3 2019 was ¥36,082,118.04, compared to ¥34,758,065.96 in Q3 2018, reflecting a 4% increase[28] - The total comprehensive income attributable to the parent company for Q3 2019 was CNY 37,389,315.57, compared to CNY 36,212,602.06 in Q3 2018, indicating a slight increase of approximately 3.2%[29] Assets and Liabilities - Total assets increased by 16.58% to CNY 1,330,611,638.65 compared to the end of the previous year[6] - Total liabilities rose to ¥615,970,500.76 from ¥489,888,909.10, marking an increase of around 25.8%[21] - Current assets totaled ¥811,871,659.77, compared to ¥689,899,815.86, reflecting an increase of about 17.7%[20] - Non-current assets amounted to ¥518,739,978.88, up from ¥451,509,885.16, indicating a growth of approximately 14.9%[20] - Total liabilities as of Q3 2019 were ¥276,633,197.29, up from ¥239,915,890.76 in the previous year[25] Cash Flow - Net cash flow from operating activities decreased by 20.11% to CNY 97,256,435.71 year-to-date[6] - The company's cash flow from operating activities for the first nine months of 2019 was CNY 414,445,908.96, compared to CNY 349,546,851.86 in the same period of 2018, representing a growth of approximately 18.5%[33] - The net cash flow from operating activities for Q3 2019 was ¥97,256,435.71, a decrease of 20% compared to ¥121,738,047.54 in Q3 2018[34] - Total cash inflow from investment activities was ¥879,340,955.42, significantly higher than ¥455,265,824.53 in the same quarter last year, marking an increase of approximately 93%[34] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,600[10] - The largest shareholder, Feng Yuxia, holds 28.38% of the shares, with 19,865,952 shares pledged[10] - The total number of shareholders with priority shares is not applicable, indicating no priority shares were issued[12] Expenses - Research and development expenses increased by 51.50%, amounting to RMB 26,744,387.51, compared to RMB 18,188,639.43 in the previous year[15] - The company reported a significant increase in sales expenses by 90.44%, totaling RMB 8,055,995.42, compared to RMB 4,230,193.92 in the previous year[15] - Total operating costs for Q3 2019 were ¥107,617,425.80, up 44% from ¥74,695,943.92 in Q3 2018[27] Equity and Earnings - The weighted average return on equity increased by 1.38 percentage points to 11.26%[6] - Basic and diluted earnings per share decreased by 6.00% to CNY 0.47[7] - Earnings per share for Q3 2019 were ¥0.22, compared to ¥0.21 in Q3 2018[28] - Shareholders' equity increased to ¥714,641,137.89, compared to ¥651,520,791.92, showing a growth of about 9.7%[21] Government Support - The company received government subsidies amounting to CNY 6,844,161.76 year-to-date, which are closely related to its normal business operations[8] Market Strategy - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[22]

Financial Performance - The company reported a total revenue of 200 million RMB for the first half of 2019, representing a year-on-year increase of 15%[12]. - The net profit attributable to shareholders for the same period was 50 million RMB, up 20% compared to the previous year[12]. - The company's operating revenue for the first half of the year reached ¥200,863,882.79, representing a 48.65% increase compared to ¥135,124,241.44 in the same period last year[14]. - Net profit attributable to shareholders was ¥40,136,252.50, up 78.86% from ¥22,439,702.47 year-on-year[14]. - The net profit after deducting non-recurring gains and losses was ¥28,633,219.01, reflecting an 87.21% increase from ¥15,295,065.85 in the previous year[14]. - The net cash flow from operating activities was ¥73,732,570.01, a 28.43% increase compared to ¥57,412,675.75 last year[14]. - Basic earnings per share increased to ¥0.25, up 78.57% from ¥0.14 in the same period last year[15]. - The weighted average return on net assets rose to 6.13%, an increase of 2.18 percentage points compared to 3.95% last year[15]. - The total assets at the end of the reporting period were ¥1,248,670,594.17, a 9.40% increase from ¥1,141,409,701.02 at the end of the previous year[14]. Research and Development - Research and development expenses accounted for 30% of total revenue, reflecting the company's commitment to innovation[12]. - The company has seen a significant increase in new customers, strategic partnerships, and order volume, indicating a growing market presence[25]. - The company focuses on preclinical research services, which include non-clinical safety evaluation and pharmacodynamics research[19]. - The company aims to provide a one-stop high-quality service chain for drug safety evaluation and monitoring throughout the drug lifecycle[19]. - The company has implemented a cash dividend distribution plan, distributing ¥3 per 10 shares to all shareholders[16]. - The company has invested in over 1,000 advanced equipment and software systems to meet various testing requirements[43]. - The company has established a breeding base for non-human primates in Guangxi Wuzhou, covering 565 acres, with a capacity to raise 15,000 primates, enhancing its animal supply capabilities[49]. - The company has passed multiple GLP certifications, including from the FDA and OECD, ensuring compliance with international standards for preclinical safety evaluations[47]. Market Expansion and Strategy - The company plans to launch three new products in the second half of 2019, aiming for a 25% increase in market share[12]. - The management provided a revenue guidance of 450 million RMB for the full year 2019, indicating a growth target of 18%[12]. - The company is exploring potential acquisitions to enhance its service offerings and expand its market presence[12]. - The company is set to acquire 100% of BIOMERE for approximately $27.28 million, marking its first international acquisition to enhance its presence in the U.S. market[57]. - The company is actively expanding its facilities and equipment to meet the increasing demand for non-clinical evaluations, positioning itself at the forefront of industry capacity expansion[50]. - The company has established two Phase I clinical research centers, expected to commence operations by the end of 2019, further expanding its clinical trial services[53]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and has implemented a comprehensive environmental management system, including regular inspections and third-party assessments of wastewater, noise, and emissions[87]. - The company reported water resource usage of 10,907 cubic meters and electricity consumption of 2,582,805 kWh for the first half of 2019[88]. - The company has achieved 100% compliance in its environmental performance, ensuring that all pollutants are discharged within the standards[87]. - The company has signed waste recovery agreements with professional third-party service companies for the disposal of medical and hazardous waste, ensuring proper handling and compliance[88]. - The company reported a total of 12 tons of medical waste and 10 tons of hazardous waste disposed of in the first half of 2019, with no exceedances of discharge standards[88]. Shareholder and Stock Management - The total number of shares increased from 114,994,600 to 161,334,460 after the implementation of the 2018 annual equity distribution plan, which included a cash dividend of 3 yuan per 10 shares and a capital reserve conversion of 4 shares for every 10 shares[90]. - The company plans to repurchase shares using its own funds, with the repurchase price not exceeding the latest audited net asset value per share[74]. - The total amount used for share repurchase will not exceed 30% of the net profit attributable to shareholders of the parent company from the previous fiscal year[76]. - The controlling shareholders are required to increase their holdings if the stock price remains below the audited net asset value per share for 10 consecutive trading days after the repurchase plan expires[76]. - The company completed its stock repurchase plan and will announce the changes in shareholding within 2 working days after implementation[78]. Financial Management and Accounting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the accuracy and completeness of financial reporting[134]. - The company recognizes revenue based on specific accounting policies tailored to its operational characteristics[133]. - The company recognizes goodwill when the acquisition cost is less than the fair value of identifiable net assets acquired[139]. - The company assesses control over subsidiaries based on the ability to influence returns through participation in relevant activities[140]. - The company recognizes expected credit losses for accounts receivable based on the simplified approach, measuring losses over the entire duration[151]. - The company applies a percentage-based provision for accounts receivable aging, with 5% for within 1 year and 100% for over 5 years[153]. - The company measures cash-settled share-based payments based on the fair value of the liability at each reporting date, with changes recognized in profit or loss[184]. Challenges and Risks - The company faces significant talent acquisition challenges due to the expansion of its business scale and the increasing demand for management, technical, and marketing personnel[66]. - The company is experiencing intensified market competition within the clinical pre-CRO industry, which may impact profitability if it fails to maintain its competitive advantages and complete its fundraising projects[66]. - The company is entering new fields such as clinical CRO and drug vigilance, facing risks related to market expansion capabilities and project management experience due to its relatively short establishment period[67].

Financial Performance - Operating revenue rose by 44.13% to CNY 74,419,029.40 year-on-year[4] - Net profit attributable to shareholders increased by 37.27% to CNY 12,039,643.64 compared to the same period last year[4] - Basic earnings per share improved by 25.00% to CNY 0.10 per share[4] - Total profit increased by 42.47% to ¥15,502,789.44 from ¥10,881,453.60, mainly due to increased service income and investment returns[12] - Net profit increased by 35.64% to ¥11,895,439.90 from ¥8,770,089.85, attributed to higher service income and investment returns[12] - The company reported a total comprehensive income of 11,373,658.31 for Q1 2019, compared to 8,312,664.70 in Q1 2018, an increase of 37.8%[21] - The company’s total comprehensive income for Q1 2019 was CNY 7.71 million, compared to CNY 3.14 million in Q1 2018, reflecting a strong performance[24] Cash Flow - Net cash flow from operating activities surged by 132.02% to CNY 16,246,365.85 year-to-date[4] - The net cash flow from operating activities for Q1 2019 was RMB 13,141,363.53, a significant increase of 153.5% compared to RMB 5,194,914.96 in Q1 2018[28] - Cash flow from operating activities increased to CNY 16.25 million in Q1 2019, compared to CNY 7.00 million in Q1 2018, marking a 132.5% rise[26] - The cash flow from operating activities showed a strong performance, contributing positively to the overall financial health of the company[28] Assets and Liabilities - Total assets increased by 3.69% to CNY 1,183,561,255.07 compared to the end of the previous year[4] - Total liabilities increased to CNY 553,426,160.01, up from CNY 489,888,909.10, which is a growth of around 12.9%[17] - Current liabilities rose to CNY 472,432,062.72 from CNY 409,192,384.01, indicating an increase of approximately 15.4%[16] - Non-current assets totaled CNY 469,407,405.67, compared to CNY 451,509,885.16, reflecting an increase of about 4.0%[16] - The company reported a total asset value of ¥1,141,409,701.02, indicating a strong asset base[33] Shareholder Information - The total number of shareholders at the end of the reporting period was 7,440[7] - Major shareholder Feng Yuxia holds 28.44% of the shares, with 16,189,966 shares pledged[7] Investment and Income - Investment income surged by 428.51% to ¥6,155,611.39 from ¥1,164,710.96, driven by increased returns from financial products[11] - The company is focusing on expanding its investment activities, as evidenced by the significant increase in cash inflow from investments[29] Expenses - Research and development expenses for Q1 2019 were 7,383,085.52, up from 5,734,005.24 in Q1 2018, marking a 29.0% increase[20] - The company incurred research and development expenses of CNY 2.28 million in Q1 2019, slightly up from CNY 2.23 million in Q1 2018[23] Tax and Subsidies - The company reported government subsidies recognized in the current period amounting to CNY 2,589,676.25[5] - The company reported a 49.41% decrease in taxes payable to ¥4,813,238.55 from ¥9,513,495.30, as initial tax payments were made[10] Financial Standards - The company implemented new financial instrument standards starting January 1, 2019, affecting the presentation of financial assets[39] - The cumulative impact of the new standards was adjusted in the financial statements for the year 2019[39] - The company did not retrospectively adjust comparative financial statements under the new financial instrument standards[39]

[Important Notes](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Board of Directors' Statement](index=3&type=section&id=1.1%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%A3%B0%E6%98%8E) The Board confirms the report's integrity and notes that it is unaudited - All company directors attended the board meeting to review this quarterly report[3](index=3&type=chunk) - The company's first quarter 2019 report is **unaudited**[3](index=3&type=chunk) [Basic Company Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) The company reported significant growth in revenue and net profit, though profit excluding non-recurring items declined Key Financial Indicators for Q1 2019 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 74,419,029.40 | 51,632,742.35 | 44.13% | | Net Profit Attributable to Shareholders (Yuan) | 12,039,643.64 | 8,770,910.55 | 37.27% | | Net Profit Attributable to Shareholders excl. Non-recurring Items (Yuan) | 4,567,832.10 | 5,579,552.35 | -18.13% | | Net Cash Flow from Operating Activities (Yuan) | 16,246,365.85 | 7,002,165.63 | 132.02% | | Basic Earnings Per Share (Yuan/Share) | 0.10 | 0.08 | 25.00% | | Weighted Average Return on Equity | 1.83% | 1.56% | Increase of 0.27 percentage points | Non-recurring Gains and Losses for Q1 2019 | Item | Current Period Amount (Yuan) | | :--- | :--- | | Gains/Losses from Entrusted Investments or Asset Management | 6,155,611.39 | | Government Subsidies | 2,589,676.25 | | Gains/Losses from Fair Value Changes of Financial Instruments | -349,005.47 | | Income Tax Impact | -923,142.48 | | **Total** | **7,471,811.54** | [Shareholder Information](index=5&type=section&id=2.2%20%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) The company's shareholder base is concentrated, with the top two related shareholders holding a significant stake - As of the end of the reporting period, the total number of shareholders was **7,440**[7](index=7&type=chunk) - Key shareholder relationships: Feng Yuxia and Zhou Zhiwen are a married couple; Gu Meifang and Gu Xiaolei are aunt and nephew[8](index=8&type=chunk) Top 10 Shareholders | Shareholder Name | Number of Shares | Shareholding Ratio (%) | | :--- | :--- | :--- | | Feng Yuxia | 32,703,300 | 28.44 | | Zhou Zhiwen | 17,994,340 | 15.65 | | Gu Xiaolei | 10,080,840 | 8.77 | | Gu Meifang | 6,909,840 | 6.01 | | Zuo Conglin | 5,136,600 | 4.47 | [Significant Matters](index=6&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) The company experienced significant changes across financial items, driven by business growth and investment activities [Analysis of Balance Sheet Item Changes](index=6&type=section&id=3.1.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE%E5%8F%98%E5%8A%A8%E5%88%86%E6%9E%90) Balance sheet changes were driven by increased cash from operations and redemption of wealth management products Key Balance Sheet Item Changes | Item | Period-End Balance (Yuan) | Beginning Balance (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash Funds | 253,907,397.62 | 148,692,597.57 | 70.76% | Increased cash collection from labor services and redemption of wealth management products | | Interest Receivable | 3,925,446.56 | 1,688,630.14 | 132.46% | Increased income from wealth management products | | Other Current Assets | 178,239,859.74 | 267,311,021.10 | -33.32% | Redemption of idle funds used for purchasing wealth management products | | Dividends Payable | 34,498,380.00 | - | N/A | Accrued but unpaid cash dividends for the current period | [Analysis of Income Statement Item Changes](index=7&type=section&id=3.1.2%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E5%8F%98%E5%8A%A8%E5%88%86%E6%9E%90) The income statement reflects strong growth in both operating revenue from labor services and investment income Key Income Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 74,419,029.40 | 51,632,742.35 | 44.13% | Increased revenue from providing external labor services | | Operating Costs | 35,226,496.69 | 23,354,436.39 | 50.83% | Corresponding cost increase due to revenue growth | | Selling Expenses | 2,161,549.85 | 1,152,986.19 | 87.47% | Increased personnel costs and office expenses | | Investment Income | 6,155,611.39 | 1,164,710.96 | 428.51% | Increased income from wealth management products | | Operating Profit | 15,504,117.59 | 10,382,528.60 | 49.33% | Increased revenue from labor services and wealth management income | [Analysis of Cash Flow Statement Item Changes](index=8&type=section&id=3.1.3%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E5%8F%98%E5%8A%A8%E5%88%86%E6%9E%90) Cash flow improved significantly due to increased collections from business growth and redemption of investments Key Cash Flow Statement Item Changes | Item | Jan-Mar 2019 (Yuan) | Jan-Mar 2018 (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16,246,365.85 | 7,002,165.63 | 132.02% | Increased cash collection due to business growth | | Net Cash Flow from Investing Activities | 29,371,122.24 | -10,077,903.85 | N/A | Redemption of idle funds used for purchasing wealth management products | | Net Cash Flow from Financing Activities | 700,000.00 | 9,597,090.00 | -92.71% | Decrease in cash received from investments | [Appendix](index=9&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) [Financial Statements](index=9&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This appendix contains the unaudited Q1 2019 consolidated and parent company financial statements [Consolidated Balance Sheet](index=9&type=section&id=4.1.1%20%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) The consolidated balance sheet shows total assets of ¥1.18 billion and total liabilities of ¥0.55 billion as of March 31, 2019 Consolidated Balance Sheet Summary (As of March 31, 2019) | Item | Period-End Balance (Yuan) | Prior Year-End Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,183,561,255.07 | 1,141,409,701.02 | | Total Liabilities | 553,426,160.01 | 489,888,909.10 | | Total Equity Attributable to Parent Company | 629,377,945.66 | 651,319,438.78 | | Total Equity | 630,135,095.06 | 651,520,791.92 | [Consolidated Income Statement](index=14&type=section&id=4.1.2%20%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) The company achieved Q1 2019 consolidated revenue of ¥74.42 million and net profit of ¥12.04 million Consolidated Income Statement Summary (Q1 2019) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 74,419,029.40 | 51,632,742.35 | | III. Operating Profit | 15,504,117.59 | 10,382,528.60 | | IV. Total Profit | 15,502,789.44 | 10,881,453.60 | | V. Net Profit | 11,895,439.90 | 8,770,089.85 | | Net Profit Attributable to Parent Company Shareholders | 12,039,643.64 | 8,770,910.55 | | Basic Earnings Per Share (Yuan/Share) | 0.10 | 0.08 | [Consolidated Cash Flow Statement](index=17&type=section&id=4.1.3%20%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2019 operating cash flow was ¥16.25 million, a significant increase from the prior year period Consolidated Cash Flow Statement Summary (Q1 2019) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 16,246,365.85 | 7,002,165.63 | | Net Cash Flow from Investing Activities | 29,371,122.24 | -10,077,903.85 | | Net Cash Flow from Financing Activities | 700,000.00 | 9,597,090.00 | | Net Increase in Cash and Cash Equivalents | 45,214,800.05 | 5,536,446.68 | | Period-End Balance of Cash and Cash Equivalents | 193,907,397.62 | 260,153,729.94 | [Parent Company Financial Statements](index=11&type=section&id=4.1.4%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The report provides parent company financial statements for an independent analysis of its financial position - The report provides the Parent Company Balance Sheet (starting page 11), Income Statement (starting page 16), and Cash Flow Statement (starting page 19) for an independent analysis of the parent company's financial condition and operating results[17](index=17&type=chunk)[22](index=22&type=chunk)[27](index=27&type=chunk)

Financial Performance - The company's operating revenue for 2018 was RMB 408.80 million, representing a 35.69% increase compared to RMB 301.28 million in 2017[17]. - The net profit attributable to shareholders for 2018 was RMB 90.29 million, up 36.92% from RMB 65.95 million in 2017[17]. - The net cash flow from operating activities for 2018 was RMB 176.08 million, an increase of 43.25% compared to RMB 122.92 million in 2017[17]. - The total assets at the end of 2018 were RMB 1.14 billion, reflecting a 21.31% increase from RMB 940.87 million at the end of 2017[17]. - The basic earnings per share for 2018 was RMB 0.94, a 17.50% increase from RMB 0.80 in 2017[18]. - The weighted average return on equity for 2018 was 17.99%, a decrease of 2.58 percentage points from 20.57% in 2017[18]. - The total non-recurring gains and losses for 2018 amounted to RMB 18.04 million, compared to RMB 10.50 million in 2017[21]. - The company's net assets attributable to shareholders at the end of 2018 were RMB 651.32 million, a 16.84% increase from RMB 557.44 million at the end of 2017[17]. - The company achieved operating revenue of CNY 408.80 million, a year-on-year increase of 35.69%[63]. - The net profit attributable to shareholders was CNY 108.34 million, reflecting a year-on-year growth of 41.72%[62]. - The gross profit margin for the main business was 53.07%, a decrease of 3.42 percentage points compared to the previous year[64]. Investment and Growth Strategies - The company plans to continue expanding its market presence and investing in new product development to drive future growth[20]. - The company aims to expand its market share in preclinical pharmacology and toxicology evaluation services, focusing on innovative drug demands and new technologies[87]. - The company plans to increase its international market presence by enhancing marketing efforts in the US and Europe, including hiring more personnel with overseas experience[88]. - The company intends to enhance its production capacity through mergers, acquisitions, and joint ventures to establish new profit growth points[88]. - The company is exploring potential acquisitions to further enhance its product portfolio and market presence[140]. - The company plans to invest in new business capabilities, particularly in bioanalysis and general toxicology, to enhance its drug evaluation capabilities[92]. Research and Development - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product safety and efficacy[140]. - The R&D department completed over 50 studies in 2018, contributing to a 25% increase in the pipeline of drug candidates[141]. - The company has established a breeding base for non-human primates in Guangxi Wuzhou, covering 565 acres, with a capacity to raise 15,000 primates, enhancing supply during commercial shortages[56]. - The company has invested in over 1,000 advanced equipment and software systems to meet various testing requirements[50]. Market and Industry Trends - The domestic CRO market is expected to grow continuously due to increased investment in drug research and development, supported by national policies[36]. - The implementation of a 60-day review and approval system for drug clinical trials is anticipated to lead to a surge in demand for early clinical services over the next 3-5 years[37]. - The global CRO market size reached $43.09 billion in 2017, with a projected growth rate of over 10% for the next five years[40]. - The domestic CRO market size exceeded RMB 50 billion in 2017, with an expected growth rate of 20%-25% from 2017 to 2022[42]. Corporate Governance and Compliance - The company has committed to avoiding competition with its controlling shareholders and their affiliates, ensuring no direct or indirect competition with its business activities[100]. - The company has implemented an employee stock option and restricted stock incentive plan, which has been approved by the board and supervisory committee[111]. - The company has not reported any significant deficiencies in its internal control systems for the reporting period[161]. - The company maintains a strict governance structure, with a board of nine directors, including three independent directors, and four specialized committees[156]. Environmental Responsibility - The company emphasizes the importance of environmental protection and sustainable development in its operations[119]. - The company aims for 100% compliance in environmental performance and pollutant discharge standards[120]. - The company has implemented a comprehensive environmental management system with regular third-party inspections[119]. - The company has not been listed as a serious polluter by national environmental authorities[119]. Shareholder Information - The total number of ordinary shares increased from 81.8 million to 114.99 million, reflecting a change of 33.19 million shares[123]. - The top shareholder, Feng Yuxia, holds 32.7033 million shares, representing 28.44% of the total shares, with 16.1899 million shares pledged[131]. - The company has committed to a 36-month lock-up period for shares held by major shareholders after listing[134]. - The company’s stock price was set at 28.31 RMB during the issuance of A shares on April 19, 2018[128]. Financial Management - The company has a total of 418,600 shares granted under stock incentives, which will be unlocked in three phases after the lock-up period[128]. - The company reported a total of 336 million in self-owned funds for the year, with a return rate of 5.25%[117]. - The company achieved a revenue of 73.972 million with a fundraising agreement at a rate of 4.50%[118]. - The company plans to continue its wealth management strategy, with various products maturing in 2019[116].

Financial Performance - Operating income for the first nine months reached CNY 243,760,117.03, a growth of 43.58% compared to the same period last year[6] - Net profit attributable to shareholders increased by 65.10% to CNY 57,222,539.23 year-on-year[6] - Basic earnings per share rose by 28.21% to CNY 0.50[6] - Total operating revenue for the first nine months of 2018 reached RMB 243,760,117.03, a 43.5% increase compared to RMB 169,771,067.73 in the same period last year[26] - Operating profit for Q3 2018 was RMB 40,977,348.05, up 55.2% from RMB 26,415,684.26 in Q3 2017[27] - Net profit attributable to the parent company for the first nine months of 2018 was RMB 57,222,539.23, representing a 65.0% increase from RMB 34,659,759.04 in the previous year[28] - The total profit for the first nine months of 2018 was RMB 68,824,068.37, a 71.5% increase from RMB 40,091,883.79 in the same period last year[27] Cash Flow - Net cash flow from operating activities surged by 76.78% to CNY 121,738,047.54 compared to the same period last year[6] - Cash inflow from operating activities totaled CNY 354,503,510.40, compared to CNY 246,738,591.20 in the previous year, indicating a year-over-year increase of about 43.6%[33] - The net cash flow from operating activities was CNY 121,738,047.54, up from CNY 68,862,535.31, reflecting an increase of approximately 76.7%[33] - Total cash outflow from investing activities was CNY 676,598,682.52, leading to a net cash flow from investing activities of -CNY 221,332,857.99, compared to -CNY 14,494,945.58 last year[34] - The company reported cash inflow from sales of goods and services of CNY 349,546,851.86, compared to CNY 244,547,797.80 in the same period last year, marking an increase of about 42.9%[33] Assets and Liabilities - Total assets increased by 16.74% to CNY 1,098,333,994 compared to the end of the previous year[6] - Total liabilities grew to CNY 499,781,992.69 from CNY 383,084,840.96, marking an increase of around 30.6%[20] - Current assets rose to CNY 700,694,058.91, up from CNY 597,449,179.92, indicating an increase of about 17.25%[18] - Inventory increased significantly to CNY 129,874,750.97 from CNY 92,236,632.38, reflecting a growth of approximately 40.8%[18] - The company’s total equity increased by 40.58% to RMB 114,994,600.00, mainly due to equity incentives and stock dividends received[14] Shareholder Information - The total number of shareholders reached 6,569[11] - The largest shareholder, Feng Yuxia, holds 28.44% of the shares, with 14,252,000 shares pledged[11] Expenses - Operating costs increased by 54.45% to RMB 113,848,500.97, corresponding to the rise in service income[15] - Management expenses grew by 45.01% to RMB 53,273,288.35, mainly due to higher labor costs[15] - Research and development expenses for the first nine months of 2018 amounted to RMB 18,188,639.43, slightly down from RMB 19,059,981.71 in the previous year[27] Other Financial Metrics - The weighted average return on equity decreased by 1.62 percentage points to 9.88%[6] - Government subsidies related to normal business operations amounted to CNY 8,112,861.58 for the year-to-date[8] - The company reported a significant increase in other receivables by 311.17% to RMB 4,736,936.03, due to increased deposits and interest receivables[14] - Prepayments rose by 54.09% to RMB 7,698,495.57, attributed to increased procurement[14]

Financial Performance - The company reported a total revenue of RMB 200 million for the first half of 2018, representing a year-on-year increase of 25%[10]. - The net profit attributable to shareholders for the same period was RMB 50 million, up 30% compared to the previous year[10]. - The company's revenue for the first half of the year reached ¥135,124,241.44, representing a 42.21% increase compared to the same period last year[17]. - Net profit attributable to shareholders was ¥22,439,702.47, an increase of 84.17% year-over-year[17]. - The basic earnings per share (EPS) was ¥0.20, up 42.86% from ¥0.14 in the same period last year[18]. - The net cash flow from operating activities was ¥57,412,675.75, reflecting a 61.33% increase compared to the previous year[17]. - The company reported a significant increase in other income, totaling ¥2,814,054.13, compared to ¥3,372,046.17 in the previous year[115]. - The company reported a total comprehensive income of CNY 10,140,930.12 for the first half of 2018, compared to CNY 2,323,411.11 in the previous year[117]. Business Expansion and Strategy - The company has expanded its user base by 15%, reaching a total of 1.5 million active users by the end of June 2018[10]. - The company plans to launch two new drug research projects in the second half of 2018, focusing on oncology and autoimmune diseases[10]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its service offerings[10]. - The company has established a new research center in Suzhou to support its expansion strategy[10]. - The company has enhanced its evaluation capabilities for innovative drugs, including monoclonal antibodies, vaccines, and gene therapies, thereby increasing its industry competitiveness[31]. - The company has seen a notable increase in new clients, strategic partnerships, and order volume due to the expansion of its sales team and improved training[30]. Research and Development - The company has invested RMB 30 million in R&D for new technologies and product development in the first half of 2018[10]. - The company continues to focus on preclinical drug research services and the breeding and sales of laboratory animals, which are its core business areas[24]. - The company is actively engaged in the development of new drug evaluation services, including safety pharmacology and toxicology studies[25]. - The company has established a breeding base for non-human primates, with an annual output of about 1,000 to 1,500 monkeys, ensuring supply during commercial shortages[48]. Financial Position - The total assets at the end of the reporting period were ¥1,008,989,329.49, a 7.24% increase from the end of the previous year[17]. - The company's total liabilities increased to CNY 449,163,205.95 from CNY 383,084,840.96, reflecting a growth of approximately 17.2%[109]. - The total equity attributable to the owners of the parent company was CNY 559,474,180.38, slightly up from CNY 557,436,824.30, indicating a marginal increase of 0.4%[109]. - Cash and cash equivalents decreased to CNY 197,439,605.11 from CNY 404,617,283.26, representing a decline of approximately 51.2%[107]. - Inventory increased significantly to CNY 118,629,707.12 from CNY 92,236,632.38, marking an increase of about 28.7%[107]. Shareholder and Stock Information - The company has implemented a profit distribution plan, distributing cash dividends of ¥3 per 10 shares to all shareholders[19]. - The company completed the registration of stock options and restricted stock on April 19, 2018, marking a significant step in its incentive plan[89]. - The company has a commitment to lock up shares for 36 months for major shareholders like Feng Yuxia and Zhou Zhiwen[96]. - The total number of ordinary shareholders reached 6,805 by the end of the reporting period[93]. - The company has no preferred shareholders with restored voting rights as of the end of the reporting period[93]. Environmental and Social Responsibility - The company achieved 100% compliance in environmental performance, ensuring stable pollutant discharge standards[84]. - The company emphasizes the importance of environmental protection and sustainable development, implementing a comprehensive environmental management system[82]. - The company has a commitment to building an environmentally friendly community and promoting ecological diversity[82]. - The company has implemented noise reduction measures, ensuring compliance with noise emission standards[84]. Risk Management and Compliance - The company emphasizes the importance of risk management in its forward-looking statements regarding future plans and strategies[10]. - The company has made commitments to avoid competition with its controlling shareholders and related parties, ensuring no direct or indirect competition with the company's business[67]. - The company has no major litigation or arbitration matters during the reporting period[78]. - The company has not reported any changes in accounting policies or prior period error corrections during this reporting period[130].

Financial Performance - Operating revenue surged by 172.69% to CNY 51,632,742.35 from CNY 18,934,728.57 in the same period last year[6] - Net profit attributable to shareholders reached CNY 5,579,552.35, a significant recovery from a loss of CNY 8,355,932.20 in the previous year[6] - Cash flow from operating activities improved to CNY 7,002,165.63, compared to a negative cash flow of CNY -5,839,970.38 in the same period last year[6] - Basic and diluted earnings per share were both CNY 0.11, recovering from a loss of CNY -0.11 per share in the previous year[6] - Operating profit reached CNY 10,382,528.60, a significant improvement from a loss of CNY 8,850,513.90 in the previous year[15] - Net profit for the period was CNY 8,770,089.85, compared to a loss of CNY 6,917,137.68 in the same period last year[15] - The gross profit for Q1 2018 was CNY 8,338,964.44, compared to CNY -9,885,519.22 in Q1 2017, showing a turnaround in profitability[25] - The total profit for Q1 2018 was CNY 3,796,779.04, compared to a loss of CNY 5,097,331.22 in the same period last year, showcasing a strong recovery in financial performance[27] Shareholder Information - The total number of shareholders reached 8,626 by the end of the reporting period[11] - The largest shareholder, Feng Yuxia, holds 28.56% of the shares, with a total of 23,359,500 shares, of which 10,180,000 are pledged[11] Asset and Liability Changes - Total assets increased by 4.03% to CNY 978,805,027 compared to the end of the previous year[6] - The total liabilities as of March 31, 2018, were CNY 436,387,154.50, an increase from CNY 383,084,840.96 at the beginning of the year, reflecting a growth of approximately 14%[20] - The total equity attributable to shareholders decreased to CNY 542,066,199.70 from CNY 557,436,824.30, reflecting a decrease of approximately 3%[20] Cash Flow Analysis - Cash inflows from operating activities totaled CNY 89,128,667.67, up from CNY 56,973,203.65 in the previous year, reflecting strong operational cash generation[31] - The net cash flow from operating activities was 7,002,165.63 RMB, a significant improvement compared to the previous year's negative cash flow of -5,839,970.38 RMB[32] - The net cash flow from financing activities was 9,597,090.00 RMB, an increase from 6,691,061.04 RMB in the previous year[33] Other Financial Metrics - The company reported non-recurring gains of CNY 3,191,358.20, which included government subsidies and other income[8] - The company's cash and cash equivalents decreased to CNY 245,383,740.84 from CNY 260,470,057.10, a decline of approximately 6%[21] - The company incurred management expenses of CNY 8,521,343.12, slightly down from CNY 9,339,573.50 in the previous year, indicating improved cost management[27] - The company recorded other income of CNY 488,747.88 in Q1 2018, down from CNY 766,223.72 in the same period last year[27] Market Strategy - The company has a strong focus on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[6] - The report indicates a commitment to maintaining financial transparency and accuracy, with all board members present for the review[6]