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

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

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

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

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]