Financial Performance - The net profit attributable to the parent company for 2021 was CNY 1,378,563,889.56, with a total distributable profit of CNY 2,700,547,905.49 after accounting for dividends paid[2]. - The cash dividend for the year accounted for 45.85% of the net profit attributable to shareholders in the consolidated financial statements[2]. - The company plans to distribute a cash dividend of CNY 3.00 per 10 shares (including tax) to all shareholders, totaling CNY 599,876,577.60[2]. - The company reported a net profit of CNY 1,308,254,212.79 for the year, with a significant portion of profits retained for future distribution[2]. - The company's operating revenue for 2021 was CNY 3,267,897,464.66, representing a year-on-year increase of 12.99% compared to CNY 2,892,169,238.81 in 2020[15]. - Net profit attributable to shareholders for 2021 reached CNY 1,308,254,212.79, a significant increase of 40.69% from CNY 929,916,045.06 in 2020[15]. - The total profit reached CNY 1.5344528 billion, reflecting a year-on-year growth of 38.47%[23]. - The net profit attributable to shareholders was CNY 1.3082542 billion, up 40.69% compared to the previous year[23]. - The company’s total assets at the end of 2021 were CNY 6,520,101,831.69, reflecting a growth of 12.35% from CNY 5,803,260,212.00 at the end of 2020[15]. - Basic earnings per share for 2021 were CNY 0.64, an increase of 39.13% compared to CNY 0.46 in 2020[17]. - The weighted average return on equity for 2021 was 22.08%, an increase of 4.36 percentage points from 17.72% in 2020[17]. Research and Development - The company established an innovation drug R&D center in Hangzhou and introduced three new diabetes treatment drugs in 2021[28]. - The company is expanding its treatment portfolio to include new drugs for gout and hyperuricemia, with clinical trials approved for two new drugs[29]. - The company has achieved full coverage in the research and development of insulin analogs, GLP-1 receptor agonists, and high clinical value oral hypoglycemic drugs, accelerating the progress of its R&D pipeline[32]. - The company completed the production of three batches of insulin analog GLP-1RA compound preparations in 2021 and is conducting stability and non-clinical studies[30]. - The company has made significant progress in the clinical trials of rapid-acting insulin and GLP-1 receptor agonists, with liraglutide injection entering the Pre-NDA stage[39]. - The company is actively enhancing its diabetes management platform and POCT project to improve patient care and communication[25]. - The company is focusing on innovative drug development, with significant investments in multi-target diabetes drugs and small molecule drugs[105]. - The company has ongoing clinical trials for multiple diabetes-related drugs, including THDBH110 and THDBH120[100]. - The company aims to enhance its core competitiveness through increased R&D spending in response to market changes[104]. Market and Sales - The company is positioned as a leader in the insulin market, continuously increasing its market share since breaking the foreign monopoly on insulin in China[50]. - The sales revenue of insulin raw materials and injections reached CNY 2.419 billion, a year-on-year increase of 6.83%[26]. - The sales revenue of insulin analogs raw materials and injections surged to CNY 401 million, marking a 204.79% year-on-year growth[26]. - The company’s insulin product sales volume increased by over 200% year-on-year, with successful bidding in over 3,800 hospitals[25]. - The company is actively expanding its product pipeline in the diabetes treatment sector, including long-acting, medium-acting, and rapid-acting insulin products, as well as GLP-1RA formulations[53]. - The company is focusing on expanding its market presence in the diabetes and hyperuricemia treatment sectors, which are expected to grow significantly in the coming years[89]. Corporate Governance - The company held 1 annual general meeting and 2 extraordinary general meetings during the reporting period, complying with relevant regulations[122]. - The board of directors consists of 9 members, including 3 independent directors, and held 13 board meetings during the reporting period[123]. - The supervisory board is composed of 3 members, including 1 employee representative, and held 6 meetings during the reporting period[123]. - The company has established and optimized internal control systems to enhance risk prevention capabilities and operational standards[123]. - The company maintains a commitment to fair treatment of all investors and actively engages in investor relations through various channels[123]. Environmental Responsibility - The company reported a total wastewater discharge of 364,853 m³ for the year 2021, with COD concentration at 24.9875 mg/L, well below the permitted limit of 80 mg/L[171]. - The company generated a total of 45.313 tons of hazardous waste in 2021, all of which was legally disposed of by a licensed hazardous waste management unit[171]. - The company has implemented a comprehensive emergency plan for environmental incidents, which was revised in 2023[179]. - The company has established a stable operation of pollution prevention facilities, achieving over 95% removal efficiency for sulfur dioxide[176]. - The company has invested over 100 million yuan in environmental protection initiatives from 2018 to mid-2022, focusing on wastewater treatment upgrades and waste gas treatment facilities[185]. Employee and Talent Management - The company has a diverse workforce with 1,188 sales personnel and 516 technical staff[154]. - The company emphasizes employee training programs to enhance overall quality and work efficiency[157]. - The company has strengthened its human resources system, introducing key talents such as the Vice President of R&D and Chief Human Resources Officer to enhance overall team capability[45]. - The company is focused on expanding its talent pool and improving employee training to support its rapid growth and enhance overall employee quality[118]. Risk Management - The company faces risks related to industry policy changes, particularly with the implementation of centralized drug procurement, which may impact pricing and profitability[119]. - The company acknowledges potential challenges from rising production costs and stricter environmental regulations, which could affect profitability[119]. - The company is actively addressing R&D risks by focusing on developing diabetes treatment products, which are expected to drive new growth opportunities[119].

Financial Performance - The company's operating revenue for Q3 2021 was ¥792,721,687.65, representing an increase of 11.52% compared to the same period last year[4]. - The net profit attributable to shareholders for Q3 2021 was ¥393,760,995.68, showing a significant increase of 83.72% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥245,514,194.92, up by 17.17% from the previous year[4]. - Total operating revenue for the first three quarters of 2021 reached ¥2,455,020,870.24, an increase from ¥2,185,625,572.14 in the same period of 2020, representing a growth of approximately 12.3%[18]. - Net profit for the third quarter of 2021 was ¥1,067,711,602.26, compared to ¥753,236,525.59 in the third quarter of 2020, reflecting a year-over-year increase of about 41.7%[19]. - Operating profit for the third quarter of 2021 was ¥1,259,768,211.82, up from ¥899,188,088.95 in the same quarter of 2020, indicating a growth of approximately 40%[19]. - Basic earnings per share for Q3 2021 were ¥0.52, up from ¥0.37 in Q3 2020, representing a growth of about 40.5%[20]. Assets and Liabilities - The total assets at the end of the reporting period reached ¥6,307,934,587.29, an increase of 8.70% compared to the end of the previous year[5]. - The company's total equity attributable to shareholders was ¥5,979,221,249.25, reflecting a year-on-year increase of 7.66%[5]. - The total liabilities as of September 30, 2021, were RMB 288,527,696.32, compared to RMB 208,182,680.98 at the end of 2020, indicating an increase of approximately 38.6%[16]. - The company's total liabilities increased to ¥323,140,212.08 in Q3 2021 from ¥243,801,452.51 in Q3 2020, marking an increase of about 32.6%[18]. - The total cash and cash equivalents at the end of the period reached CNY 500,072,668.72, up from CNY 267,326,470.10 at the end of the previous year, representing an increase of approximately 87.00%[22]. Cash Flow - The company reported a net cash flow from operating activities of ¥803,693,592.46 for the year-to-date, reflecting a decrease of 5.36% compared to the previous year[5]. - The cash inflow from operating activities for the first three quarters of 2021 was CNY 2,335,164,106.97, an increase from CNY 2,066,756,404.42 in the same period of 2020, representing a growth of approximately 12.97%[21]. - The net cash flow from operating activities decreased to CNY 803,693,592.46 in 2021 from CNY 849,219,226.94 in 2020, reflecting a decline of about 5.36%[21]. - Cash inflow from investment activities significantly increased to CNY 1,093,612,737.31 in 2021, compared to CNY 263,296,122.56 in 2020, marking a growth of approximately 315.56%[22]. - The net cash flow from investment activities improved to -CNY 91,831,570.07 in 2021 from -CNY 339,561,045.03 in 2020, indicating a reduction in losses[22]. - The net cash flow from financing activities was -CNY 603,821,257.47 in 2021, compared to -CNY 539,468,582.68 in 2020, indicating a worsening in financing cash flow[22]. Research and Development - Research and development expenses increased by 44.17% year-on-year due to new projects and increased investment in R&D[7]. - Research and development expenses for the first three quarters of 2021 amounted to ¥118,279,877.05, compared to ¥82,041,684.47 in the same period of 2020, indicating an increase of approximately 44%[18]. Investment and Equity Transactions - The company disposed of part of its equity in Te Bao Bio, resulting in an investment income increase of 514.69%[7]. - The company reported investment income of ¥223,870,818.37 for the first three quarters of 2021, significantly higher than ¥36,419,982.61 in the same period of 2020, showing an increase of approximately 515%[18]. - The company repurchased a total of 11,999,766 shares, accounting for 0.59% of the total share capital, with a total transaction amount of RMB 129,175,483.58[12]. - Tonghua Dongbao plans to sell up to 16,272,000 shares of Xiamen Te Bao Biological Engineering Co., Ltd., which is not more than 4% of Te Bao's total share capital[12].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,662,299,182.59, representing a 12.71% increase compared to CNY 1,474,803,815.08 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was CNY 673,846,812.99, an increase of 24.47% from CNY 541,359,485.77 in the previous year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 655,464,995.89, up 20.93% from CNY 542,040,204.48 in the same period last year[15]. - The total profit for the same period was CNY 793.47 million, reflecting a year-on-year growth of 24.84%[32]. - The company achieved operating revenue of 1,662.30 million RMB, representing a year-on-year growth of 12.71%[24]. - Basic earnings per share for the first half of 2021 were CNY 0.33, an increase of 22.22% compared to CNY 0.27 in the same period last year[16]. - The weighted average return on net assets was 11.69%, an increase of 1.17 percentage points from 10.52% in the previous year[16]. - The company reported a net cash flow from operating activities of ¥595,120,151.69, a slight decrease of 0.69% from ¥599,283,637.94 in the previous period[63]. - The total cash inflow from operating activities for the first half of 2021 was CNY 1,561,240,880.34, an increase from CNY 1,336,882,642.06 in the same period of 2020, representing a growth of approximately 16.7%[126]. - The net cash flow from financing activities was negative at CNY -463,821,257.47, compared to CNY -135,814,971.57 in the first half of 2020, reflecting increased cash outflows for debt repayment and dividends[130]. Revenue Breakdown - Revenue from human insulin raw materials and injection products was 1,279.91 million RMB, an increase of 5.92% compared to the previous year[24]. - Revenue from insulin analog raw materials and injection products surged to 158.75 million RMB, marking a significant growth of 291.87% year-on-year[24]. - The revenue from traditional Chinese medicine reached ¥41,099,216.69, reflecting a year-over-year increase of 119.51% and a gross margin of 61.86%, which is an increase of 3.63 percentage points[66]. Research and Development - Research and development expenses rose by 44.33% to ¥74,537,981.34, reflecting new R&D projects and increased investment compared to ¥51,642,892.66 in the previous year[63]. - The company is actively expanding its research pipeline, including the development of additional third-generation insulins and GLP-1 receptor agonists, to meet diverse patient needs[30]. - The company has developed a diabetes management platform that integrates blood glucose monitoring and patient-doctor interaction, enhancing patient care[34]. - The company is advancing its oral hypoglycemic agents, with several products undergoing clinical trials and bioequivalence studies, including empagliflozin and its combination with metformin[51][52]. Market Position and Strategy - The company operates in the pharmaceutical industry, primarily focusing on diabetes and endocrine treatments, with a product line that includes various insulin products[20]. - The company has established a specialized sales team to enhance market coverage and brand building in the diabetes sector[23]. - The diabetes medication market in China is projected to grow significantly, with the number of diabetes patients expected to rise from 116 million in 2019 to 140 million by 2030, driven by aging population and urbanization trends[27]. - The company is committed to continuous improvement in product quality and market strategy to maintain competitive advantage[24]. - The company has been optimizing sales strategies and enhancing channel promotion, focusing on both online and offline academic activities[24]. Environmental Responsibility - The company is not a key pollutant discharge unit, and all wastewater is treated at the Jilin Hengde Environmental Protection Co., Ltd. wastewater treatment station[81]. - The company’s wastewater discharge meets the standard with COD at 36.76 mg/L and ammonia nitrogen at 0.32 mg/L, both below the permitted levels of 80 mg/L and 10 mg/L respectively[82]. - The company has invested over 51 million yuan in environmental protection initiatives from 2018 to the first half of 2021, focusing on wastewater treatment upgrades and air pollution control[93]. - The wastewater treatment capacity has been upgraded from 1,000 tons per day to 2,000 tons per day, with 24-hour online monitoring implemented[92]. - The company has implemented effective pollution control facilities, achieving over 95% removal efficiency for sulfur dioxide[85]. Shareholder Information - The total number of common shareholders reached 105,786 by the end of the reporting period[105]. - Dongbao Industrial Group Co., Ltd. holds 591,699,387 shares, accounting for 29.09% of total shares[106]. - The top ten shareholders include Abu Dhabi Investment Authority with 31,836,912 shares, which is 1.57% of total shares[106]. - The company reported no changes in total shares and capital structure during the reporting period[105]. - The company has a public shareholding of 236,545,920 shares, representing 64.18% of the total share capital[157]. Risks and Challenges - The company reported no significant risks that could materially affect its operations during the reporting period[4]. - The company faces risks related to industry policy changes, which could impact drug pricing and market dynamics[73]. - The industry is undergoing significant changes due to the "Three Medical Linkage" reform, impacting the pharmaceutical market dynamics[25].

Financial Performance - Net profit attributable to shareholders rose by 21.33% to CNY 336,658,081.42 year-on-year[7] - Operating revenue grew by 14.52% to CNY 822,877,442.06 compared to the same period last year[7] - Basic earnings per share increased by 21.43% to CNY 0.17 per share[7] - Total operating revenue for Q1 2021 was ¥822,877,442.06, an increase of 14.6% compared to ¥718,550,953.33 in Q1 2020[39] - Net profit for Q1 2021 reached ¥336,685,623.32, representing a 21.5% increase from ¥277,081,601.81 in Q1 2020[40] - Total profit for Q1 2021 was ¥401,861,778.47, an increase of 23.5% compared to ¥325,189,481.92 in Q1 2020[40] - Operating profit for Q1 2021 was ¥404,173,396.17, up 21.7% from ¥332,097,782.80 in Q1 2020[40] Assets and Liabilities - Total assets increased by 5.66% to CNY 6,131,589,002.63 compared to the end of the previous year[7] - Current liabilities rose to CNY 308,666,204.53 from CNY 208,182,680.98, marking an increase of about 48.3%[29] - The total liabilities increased to CNY 343,949,557.47 from CNY 243,801,452.51, showing an increase of about 41.2%[31] - The company's total assets as of March 31, 2021, amounted to CNY 2,203,154,396.97, compared to CNY 1,922,421,300.76 at the end of 2020[28] - The total equity attributable to shareholders increased to CNY 5,782,142,570.88 from CNY 5,553,989,427.11, indicating a rise of about 4.1%[31] Cash Flow - Net cash flow from operating activities was CNY 371,302,361.29, up 3.85% year-on-year[7] - The net cash flow from operating activities for Q1 2021 was ¥371.30 million, compared to ¥357.55 million in Q1 2020, indicating an increase of approximately 3.9%[49] - The cash inflow from financing activities in Q1 2021 was ¥77.44 million, down from ¥275 million in Q1 2020[50] - The net cash flow from financing activities was negative at ¥44.57 million in Q1 2021, compared to a positive net flow of ¥272.43 million in Q1 2020[50] Shareholder Information - The total number of shareholders reached 101,632 by the end of the reporting period[11] - The largest shareholder, Dongbao Industrial Group Co., Ltd., holds 29.09% of the shares, with 429,819,472 shares pledged[11] - The company completed a share buyback of 9,999,979 shares, accounting for 0.49% of total share capital, with a total payment of CNY 120,624,391.56[24] - The company plans to utilize the repurchased shares for equity incentives and/or employee stock ownership plans[24] Research and Development - The company’s R&D expenses rose by 70.03% to CNY 37,980,616.37, reflecting an intensified investment in research and development[19] - Research and development expenses increased to ¥37,980,616.37 in Q1 2021, up 70.5% from ¥22,336,977.46 in Q1 2020[39] Non-Recurring Gains and Losses - Non-recurring gains and losses included government subsidies of CNY 765,255.52 and investment income from idle funds of CNY 665,372.70[10] - The company reported a total of CNY 52,313.46 in other non-recurring gains and losses after tax adjustments[11] Inventory and Prepayments - Prepayments increased by 213.16% to CNY 107,561,857.58, attributed to higher material payments during the reporting period[17] - The company's inventory decreased to CNY 497,368,800.70 from CNY 537,578,254.49, indicating a reduction in stock levels[28] - The company's inventory decreased to CNY 282,112,630.73 from CNY 314,723,187.96, a decline of approximately 10.4%[34] Financial Expenses - The financial expenses showed a significant decrease of 235.65%, resulting in a net financial income of CNY -2,140,759.25[19] - The company reported a financial expense of -¥2,140,759.25 in Q1 2021, a significant improvement from ¥1,578,173.82 in Q1 2020[39] Future Plans - The company plans to continue expanding its market presence and investing in new product development, although specific figures were not disclosed in the report[38] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[41]

Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 929,916,045.06 yuan, representing a 14.63% increase compared to 811,206,148.03 yuan in 2019[5]. - The company's total revenue for 2020 was 2,892,169,238.81 yuan, reflecting a 4.14% growth from 2,777,148,879.86 yuan in 2019[23]. - The net profit after deducting non-recurring gains and losses was 954,990,467.13 yuan, an 18.00% increase from 809,336,530.97 yuan in the previous year[23]. - The company's cash flow from operating activities amounted to 1,192,286,108.30 yuan, up 3.48% from 1,152,169,735.74 yuan in 2019[23]. - The total assets of the company at the end of 2020 were 5,803,260,212.00 yuan, an 8.47% increase from 5,349,909,572.36 yuan at the end of 2019[23]. - The company's net assets attributable to shareholders increased to 5,553,989,427.11 yuan, marking an 11.07% rise from 4,724,291,512.88 yuan in the previous year[23]. - Basic earnings per share increased by 15.00% to CNY 0.46 in 2020 compared to CNY 0.40 in 2019[24]. - The weighted average return on equity rose by 1.14 percentage points to 17.72% in 2020 from 16.58% in 2019[24]. - The total profit for 2020 was 1,108.13 million yuan, reflecting a growth of 16.34% compared to the previous year[50]. - The net profit attributable to the parent company was 929.92 million yuan, marking a 14.63% increase year-on-year[50]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 2.10 yuan per 10 shares, amounting to a total of 425,037,592.98 yuan, which represents 45.71% of the net profit attributable to shareholders[6]. - The company did not propose any stock bonus or capital reserve transfer to share capital for the year[6]. - The cash dividend for 2019 represented 49.75% of the net profit attributable to ordinary shareholders, while the 2020 cash dividend represents 45.71%[158]. - The company completed a share buyback of 9,999,979 shares during the period from February 5, 2021, to March 31, 2021[157]. - The company executed a share buyback plan from December 26, 2019, to February 20, 2020, repurchasing 16,100,000 shares for a total of 200,457,967.43 CNY[162]. Research and Development - The company is engaged in the research, production, and sales of pharmaceuticals, focusing on diabetes and endocrine treatments[31]. - The company has been recognized as a high-tech enterprise and a national technology innovation demonstration enterprise[31]. - Research and development expenses rose by 37.01%, totaling CNY 106,926.06 million, indicating a strong focus on innovation[91]. - The company has made significant progress in GLP-1 receptor agonists, with projects including Liraglutide, Dulaglutide, and Semaglutide initiated since 2014[65]. - The company is actively developing insulin analogs, with the approval of glargine insulin and ongoing progress for other products[56]. - The company has submitted clinical trial applications for multiple insulin products, including Insulin Aspart Injection and Insulin Lispro Injection, aimed at treating diabetes[130]. - The company has several products in the research phase, including Regaglitazone and its combination formulations, targeting Type 2 diabetes[129]. - The company's R&D investment for the reporting period was CNY 243.12 million, an increase of 22.17% compared to the previous year[137]. - Major R&D projects include the development of insulin products, with specific investments of CNY 49.65 million for insulin raw materials and CNY 48.53 million for GLP-1 analog injections[139]. Market Position and Strategy - The company holds over 34% market share in the recombinant human insulin market, ranking second after foreign enterprises[39]. - The company has developed a comprehensive product line including second-generation and third-generation insulins, with the third-generation insulin (insulin glargine) recently approved for sale[39]. - The company is actively expanding its market presence in grassroots healthcare settings, focusing on diabetes education and training for primary care physicians[38]. - The company has strengthened its sales team and improved performance management, enhancing the motivation of sales personnel[54]. - The company has established a specialized sales team to promote its diabetes-related products, enhancing market coverage and penetration[140]. Operational Efficiency and Cost Management - The company reduced its operating costs by 18.45%, with costs amounting to CNY 588,376.62 million in 2020[91]. - The company reported a decrease in operating costs for the pharmaceutical sector, totaling CNY 529,655,136.51, down 13.18% from the previous year[99]. - The company enhanced its procurement capabilities, leading to improved cost control and a stronger bargaining position[101]. - The company plans to optimize its supply chain management to lower production and operational costs[150]. Environmental and Compliance Management - The company has established and implemented quality, environmental, and occupational health safety management systems to ensure effective product quality and employee health[186]. - The company is not classified as a key pollutant discharge unit and has met the discharge standards for wastewater and emissions[188]. - The company achieved a COD concentration of 24.31 mg/L in wastewater discharge, well below the permitted level of 80 mg/L[189]. - The company has received a pollution discharge permit in August 2020, ensuring compliance with environmental regulations[189]. - The company has established an emergency response plan for environmental incidents, which was approved by experts in November 2020[193]. Risk Management - There were no significant risks that materially affected the company's production and operations during the reporting period[9]. - The company faces risks from industry policy changes, including increased regulatory scrutiny and potential price reductions due to centralized procurement[151]. - The company will actively respond to the challenges posed by the COVID-19 pandemic while ensuring employee safety and health[152]. Corporate Governance - The company has no major litigation or arbitration matters during the reporting period[172]. - The company has no unfulfilled court judgments or significant overdue debts as of the end of the reporting period[172]. - The company has engaged Zhongzhun Accounting Firm for 27 years, with an audit fee of 80 million RMB for the current period[170]. - The company has not faced any risks of suspension or termination of listing during the reporting period[172].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,474,803,815.08, representing a 2.80% increase compared to CNY 1,434,663,884.88 in the same period last year[14]. - The net profit attributable to shareholders was CNY 541,359,485.77, which is a 1.73% increase from CNY 532,144,473.71 year-on-year[14]. - The net cash flow from operating activities reached CNY 599,283,637.94, up by 3.71% from CNY 577,830,029.31 in the previous year[14]. - The total profit for the same period was CNY 635.57 million, up by 2.76% year-on-year, while the net profit attributable to shareholders was CNY 541.36 million, reflecting a 1.73% increase[22]. - The company reported a total comprehensive income of CNY 540,524,651.76 for the first half of 2020, compared to CNY 530,655,630.89 in the same period of 2019, indicating a growth of about 1.6%[99]. - The basic earnings per share for the first half of 2020 was CNY 0.27, which is a 3.85% increase compared to CNY 0.26 in the same period last year[14]. - The total operating profit for the first half of 2020 was CNY 642,427,078.91, up from CNY 597,258,994.51 in the previous year[100]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,675,912,589.03, reflecting a 6.09% increase from CNY 5,349,909,572.36 at the end of the previous year[14]. - The total liabilities increased to CNY 597,193,377.64 from CNY 341,098,913.76, reflecting a growth of about 75.3%[93]. - The total equity attributable to shareholders increased to CNY 5,071,138,289.30 from CNY 5,000,394,902.50, showing a growth of approximately 1.4%[93]. - Current liabilities rose to CNY 558,077,144.67, compared to CNY 304,847,302.44, indicating an increase of approximately 82.8%[92]. - The company's retained earnings rose to CNY 1,668,893,006.79 from CNY 1,531,111,224.42, representing an increase of approximately 9.0%[93]. Research and Development - Research and development expenses increased by 46.16% to ¥51,642,892.66, reflecting the initiation of new R&D projects[47]. - The company is advancing the research and development of degludec insulin and semaglutide to expand its product pipeline in the diabetes treatment field[24]. - The company has a strong focus on innovation, with multiple awards for its research and development efforts in insulin production[20]. - The company has initiated the development of Somaglutide, a long-acting GLP-1 receptor agonist, with preliminary process development completed and key parameter screening ongoing[36]. Market Position and Products - The company has a market share of over 25% for its recombinant human insulin injection (brand name: Gan Shulin), ranking second in the market[19]. - The company has launched its long-acting insulin injection (brand name: Chang Shulin), becoming the third company in China to do so, which is expected to strengthen its market position[19]. - The company is actively expanding its product line, including second and third-generation insulin products, with plans for future fourth-generation insulin[19]. - The company’s recombinant human insulin production technology is at an advanced level, with the largest fermentation system among domestic producers[20]. Corporate Governance and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period[4]. - The company has no major litigation or arbitration matters during the reporting period[68]. - The company has not changed its accounting firm during the reporting period, continuing with Zhongjun Accounting Firm for the 2020 financial report audit[66]. - The company has completed the application for the pollutant discharge permit by June 20, 2020, and is currently under review[72]. Environmental and Social Responsibility - The company is actively investing in environmental protection efforts to become a resource-saving and environmentally friendly enterprise[78]. - The company has installed an online monitoring system for wastewater and emissions, which is connected to the environmental protection department's platform for continuous compliance[72]. - The average concentration of COD in wastewater discharge was 12.66 mg/L, well below the permitted concentration of 80 mg/L[73]. - The company has developed emergency response plans for sudden environmental incidents, which have been approved and filed with relevant authorities[77]. Shareholder Information - The largest shareholder, Dongbao Industrial Group Co., Ltd., holds 774,758,354 shares, accounting for 38.09% of total shares[81]. - The company has a total of CNY 616,816,520.81 in surplus reserves at the end of the reporting period[120]. - The company has undergone multiple increases in share capital through stock bonuses and private placements, reflecting a strategy of enhancing shareholder value and expanding its capital base[161]. - The company has a history of consistent profit distribution, with cash dividends and stock bonuses being issued to shareholders over the years[127].

Financial Performance - Operating revenue for the first quarter was CNY 718,550,953.33, a slight increase of 0.60% year-on-year[6] - Net profit attributable to shareholders rose by 1.40% to CNY 277,469,039.47 compared to the same period last year[6] - Basic earnings per share increased by 7.69% to CNY 0.14 per share[6] - Total operating revenue for Q1 2020 was CNY 718,550,953.33, a slight increase from CNY 714,283,193.94 in Q1 2019, representing a growth of 0.38%[31] - Operating profit for Q1 2020 was CNY 332,097,782.80, compared to CNY 319,032,066.56 in Q1 2019, reflecting an increase of 4.3%[32] - Net profit for Q1 2020 reached CNY 277,081,601.81, up from CNY 273,388,540.53 in the same period last year, indicating a growth of 1.27%[32] - Total profit for Q1 2020 was CNY 325,189,481.92, slightly up from CNY 319,054,870.06 in Q1 2019, representing an increase of 1.8%[32] - Total comprehensive income for Q1 2020 was approximately CNY 278.32 million, compared to CNY 260.07 million in Q1 2019, representing an increase of about 7.5%[36] Cash Flow - The net cash flow from operating activities decreased by 8.53% to CNY 357,547,826.84 compared to the previous year[6] - Cash inflow from operating activities in Q1 2020 was CNY 674.99 million, a decrease of 3.5% from CNY 698.61 million in Q1 2019[38] - Net cash flow from operating activities for Q1 2020 was CNY 357.55 million, down from CNY 390.89 million in Q1 2019, reflecting a decline of 8.5%[38] - Cash outflow from investing activities in Q1 2020 totaled CNY 235.24 million, compared to CNY 226.47 million in Q1 2019, showing an increase of 3.3%[39] - Net cash flow from financing activities for Q1 2020 was CNY 272.43 million, an increase from CNY 242.37 million in Q1 2019, representing a growth of 12.4%[43] - Cash inflow from financing activities in Q1 2020 was CNY 275 million, down from CNY 400 million in Q1 2019, reflecting a decrease of 31.25%[39] - Cash outflow for taxes paid in Q1 2020 was CNY 66.14 million, compared to CNY 42.85 million in Q1 2019, which is an increase of 54.5%[38] Assets and Liabilities - Total assets increased by 9.10% to CNY 5,836,597,143.69 compared to the end of the previous year[6] - Current assets reached ¥2,015,654,439.78, compared to ¥1,670,322,540.72 in the previous year, reflecting a growth of approximately 20.6%[27] - Total liabilities amounted to ¥551,220,409.84, up from ¥278,536,010.56, indicating a year-over-year increase of approximately 97.7%[28] - Shareholders' equity totaled ¥5,214,762,782.54, compared to ¥5,003,484,818.13, representing an increase of about 4.2%[29] - The company’s total liabilities and shareholders' equity reached ¥5,765,983,192.38, up from ¥5,282,020,828.69, indicating overall growth[29] - Total liabilities were CNY 341,098,913.76, with current liabilities at CNY 304,847,302.44[47] Shareholder Information - The total number of shareholders at the end of the reporting period was 103,194[10] - The largest shareholder, Dongbao Industrial Group Co., Ltd., held 38.09% of the shares[10] Expenses - The company reported a significant increase in other expenses due to donations related to COVID-19[17] - Research and development expenses rose to CNY 22,336,977.46 from CNY 19,617,998.63, an increase of 8.74% year-over-year[31] - Sales expenses increased to CNY 183,298,008.65 from CNY 156,686,534.00, reflecting a rise of 16.9%[31] - Financial expenses decreased by 75.64% to ¥1,578,173.82 from ¥6,478,628.44 year-on-year[16] Other Financial Metrics - The weighted average return on equity decreased by 0.18 percentage points to 5.45%[6] - Non-recurring gains and losses included government subsidies of CNY 2,562,473.95[8] - The company completed a share buyback of 16,100,000 shares, accounting for 0.79% of total share capital, with a total payment of ¥200,457,967.43[19] - Other income surged by 1,267.76% to ¥2,402,723.95 from ¥175,668.59 year-on-year[16]

Financial Performance - The company achieved a net profit attributable to shareholders of 811,206,148.03 CNY in 2019, a decrease of 3.27% compared to 2018[4]. - Total operating revenue for 2019 was 2,777,148,879.86 CNY, representing a year-on-year increase of 3.13%[16]. - The total profit for 2019 was CNY 952.50 million, a decrease of 2.56% compared to the previous year[28]. - The net profit attributable to shareholders was CNY 811.21 million, down 3.27% year-on-year[28]. - Basic earnings per share for 2019 was CNY 0.40, a decrease of 2.44% compared to 2018[17]. - The company achieved a weighted average return on equity of 16.58% in 2019, down 1.05 percentage points from 2018[17]. - The total amount of non-recurring gains and losses in 2019 was CNY 1,869,617.06, significantly lower than CNY 24,284,551.05 in 2018[19]. - The company reported a net cash flow from operating activities of CNY 1,152,169,735.74, an increase of 31.39% from the previous year[57]. - The company’s total assets as of the end of 2019 were 5,349,909,572.36 CNY, a decrease of 2.08% from the previous year[16]. - The net assets attributable to shareholders reached 5,000,394,902.50 CNY, reflecting a growth of 5.84% year-on-year[16]. Dividend Distribution - The company plans to distribute a cash dividend of 2 CNY per 10 shares, totaling 403,577,703.40 CNY, which is 74.46% of the net profit attributable to shareholders[4]. - In 2019, the company distributed a cash dividend of 2 RMB per 10 shares, totaling 403,577,703.40 RMB, which represents 49.75% of the net profit attributable to ordinary shareholders[109]. - The cash dividend for 2019 was RMB 200,457,967.43, which is 24.71% of the net profit, compared to RMB 299,848,545.13 and 35.76% in 2018[113]. - The company distributed cash dividends amounting to RMB 403,577,703.40, with retained earnings of RMB 1,127,533,521.02 for future distribution[112]. Market Position and Product Development - The company has a market share of over 25% for its main product, recombinant human insulin injection (brand name: Gan Shulin), ranking second in the market[23]. - The company focuses on diabetes treatment and has developed a rich product line, including second and third-generation insulin products[23]. - The company launched its glargine insulin injection in December 2019, becoming the third company in China to obtain registration approval for this product[25]. - The company is actively developing third-generation insulin analogs and has partnered with France's Adocia to advance fourth-generation insulin research[25]. - The company aims to expand its market presence in diabetes treatment through continuous investment in R&D and product innovation[40]. - The company is focusing on the development of high-value generics and innovative drugs to capture a larger market share[103]. Research and Development - Total R&D investment reached ¥199,001,551.98, accounting for 7.17% of operating revenue, with 60.78% of R&D costs capitalized[67]. - The company’s total R&D expenditure in 2019 was 19,900 thousand RMB, with 7,804 thousand RMB as expense and 12,096 thousand RMB as capitalized expenditure[84]. - The company has ongoing clinical trials for several insulin products, including Liraglutide and Insulin Glargine, with cumulative R&D investments of 9,123 million RMB and 7,397 million RMB respectively[89]. - The company is conducting further research for the oral hypoglycemic agent projects, including regaglinide tablets, with plans to complete bioequivalence testing in 2020[44]. - The company aims to develop 8-10 classic formulations within three years and modern improved traditional Chinese medicine new drugs based on Zhennaoning capsules within five years, leveraging existing patents and clinical approvals[48]. Operational Efficiency and Risk Management - The company is enhancing its internal control mechanisms to improve risk management and ensure stable business development[55]. - The company is committed to enhancing its management and supervision mechanisms, aiming for a more systematic and scientific approach to management and performance evaluation[106]. - The company faces risks related to industry policies, including increased regulatory scrutiny and changes in drug approval processes, which could impact future growth[107]. - The company has a strategy to mitigate risks associated with new drug development, focusing on diabetes treatment products to create new growth points[107]. Environmental Responsibility - The company is committed to environmental protection and safety, adhering to relevant laws and regulations, and implementing energy-saving and emission-reduction measures[54]. - The company has implemented environmental protection measures, including the installation of online monitoring systems for wastewater discharge, ensuring compliance with pollution discharge standards[133]. - The company completed the renovation of its coal-fired boiler flue gas treatment facilities in July 2019, ensuring stable compliance with emission standards[137]. - The company has established emergency response plans for environmental incidents, which have been reviewed and filed with the local environmental protection bureau[139]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[175]. - The company held 1 annual general meeting and 1 extraordinary general meeting during the reporting period, ensuring compliance with regulations[175]. - The remuneration and assessment committee is responsible for evaluating the performance of directors and senior management based on annual operational goals[184]. - The independent directors have extensive academic and professional backgrounds, contributing to the company's governance[163]. Shareholder Information - The total number of ordinary shares is 2,033,988,517, with 96.054% being freely tradable shares[144]. - Dongbao Industrial Group holds 784,216,781 shares, accounting for 38.56% of the total share capital[150]. - The company has 102,684 ordinary shareholders as of the end of the reporting period[149]. - The first major shareholder, Dongbao Group, reduced its holdings by 8,081,444 shares from October 22, 2019, to December 31, 2019[154].