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

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

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

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

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

Financial Performance - The company's operating revenue for 2017 was CNY 301,278,957.58, representing a 24.60% increase compared to CNY 241,805,209.69 in 2016[23]. - The net profit attributable to shareholders for 2017 was CNY 76,446,395.86, a 47.89% increase from CNY 51,692,493.83 in 2016[23]. - The net cash flow from operating activities for 2017 was CNY 120,006,161.05, showing a slight increase of 1.00% from CNY 118,822,186.54 in 2016[23]. - The total assets at the end of 2017 were CNY 940,874,158.76, a 57.58% increase from CNY 597,062,330.28 at the end of 2016[23]. - The basic earnings per share for 2017 was CNY 1.12, up 33.33% from CNY 0.84 in 2016[24]. - The weighted average return on equity for 2017 was 20.57%, a decrease of 1.53 percentage points from 22.10% in 2016[24]. - The company reported a net profit of CNY 41,786,636.82 in Q4 2017, following net losses in the first three quarters[28]. - Non-recurring gains and losses totaled CNY 10,498,209.74 for 2017, compared to CNY 7,152,910.24 in 2016[31]. - The company's net assets attributable to shareholders at the end of 2017 were CNY 557,436,824.30, a 114.54% increase from CNY 259,832,442.25 at the end of 2016[23]. - The company achieved a revenue of CNY 301.28 million in 2017, representing a year-on-year growth of 24.60%[68]. - The net profit attributable to shareholders was CNY 76.45 million, reflecting a significant increase of 47.89% compared to the previous year[68]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 3.00 CNY per 10 shares (including tax) based on a total of 81.8 million shares as of December 31, 2017, and to increase capital reserves by converting 4 shares for every 10 shares held[5]. - The company has not implemented any profit distribution in 2017, with a cash dividend policy that respects minority shareholders' rights[120]. - The company has not distributed any dividends in 2016 and 2015, maintaining a focus on reinvestment[121]. - The company has outlined a plan for the distribution of ordinary share dividends, although specific figures were not disclosed in the provided content[122]. - There are no plans for cash profit distribution for ordinary shares during the reporting period, as the company did not propose a cash distribution plan[122]. - The company has established measures to ensure that any business opportunities that may compete with its operations will be directed to the company[123]. - The commitments made by the actual controllers and shareholders are legally binding and can result in penalties if violated[124]. - The company has established a plan to stabilize its stock price if it falls below the net asset value per share for 20 consecutive trading days[125]. - The total amount used for share repurchase cannot exceed 30% of the previous year's audited net profit attributable to shareholders[127]. - The controlling shareholders are required to 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[128]. Operational and Business Overview - The core business of the company is preclinical drug research services, which includes non-clinical safety evaluation, pharmacodynamics research, and animal pharmacokinetics research[36]. - The company operates a wholly-owned subsidiary, Suzhou JOINN, which is involved in drug research[11]. - The company has established two GLP centers in Beijing and Suzhou, enhancing its capabilities in preclinical evaluation services[38]. - The company has over 20 years of experience in drug evaluation, establishing a strong brand image in the industry[38]. - The marketing department has strengthened promotional activities in the US, Japan, Taiwan, and Hong Kong, focusing on new technologies and capabilities[40]. - The company has seen a significant increase in the number of new clients and order volume, as well as strategic partnerships[40]. - The company’s revenue model is based on charging research service fees for preclinical evaluation services, which are essential for drug development[38]. - The company emphasizes quality and efficiency in its services, adhering to strict regulatory requirements and quality management systems[39]. - The company has implemented a rigorous procurement process to ensure the quality of experimental animals and other materials needed for research[39]. - The company has introduced new technologies such as inhalation toxicology evaluation and CAR-T product evaluation to enhance its service offerings[40]. Market and Industry Insights - The global CRO market size reached $43.09 billion in 2017, with a projected growth rate of over 10% annually for the next five years[42]. - The domestic CRO market size exceeded 50 billion RMB in 2017, with an expected growth rate of 20%-25% from 2017 to 2022[42]. - The company operates the largest non-clinical drug evaluation CRO facilities in China, with a total area of approximately 75,000 square meters[49]. - The company has received multiple GLP certifications, including from AAALAC, CFDA, and FDA, ensuring high service quality and international recognition[50]. - The company has established comprehensive evaluation platforms for inhalation drugs, ophthalmic drugs, and central nervous system drugs, enhancing its service capabilities[50]. - The global CRO market is expected to grow rapidly due to increasing outsourcing of R&D work by pharmaceutical companies, driven by stricter FDA approval processes[45]. - The pharmaceutical industry is projected to grow at a compound annual growth rate (CAGR) of 4%-7% from 2017 to 2021, reaching a market size of $1.5 trillion by 2021[93]. - China's pharmaceutical sales revenue grew from approximately $12,072.7 million in 2010 to $29,635.86 million in 2016, with a CAGR of 16.15%[94]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, with a focus on sustainable development and pollution prevention[153]. - Water resource usage for the year was reported at 24,916 cubic meters, while electricity consumption was 5,408,730 kWh[154]. - The annual solid waste production was recorded at 27 tons, with specific waste management protocols in place[155]. - The company has established a comprehensive environmental management system, including regular inspections and third-party assessments[153]. - The company has not been listed as a severely polluting enterprise by national environmental authorities[153]. - The company has implemented measures to ensure 100% compliance with environmental regulations and stable pollutant discharge standards[153]. - The company has signed waste disposal agreements with certified companies for the management of hazardous and medical waste[155]. Governance and Compliance - The company received a standard unqualified audit report from Ruihua Certified Public Accountants[4]. - The company emphasizes the importance of accurate and complete financial reporting, with all board members present at the board meeting[8]. - The company has established multiple governance policies to enhance operational standards and protect shareholder rights[192]. - There were no penalties imposed by securities regulatory authorities in the past three years[186]. - The company maintains independence from its controlling shareholders in terms of operations and decision-making[194]. - The company ensures timely and accurate information disclosure in compliance with regulatory requirements[197]. - The board held a total of 9 meetings during the year, with 2 in-person meetings and 1 conducted via communication methods[199]. - There were no objections raised by independent directors regarding company matters during the reporting period[200]. Human Resources and Talent Management - The company has a workforce of nearly 700 employees, with most core technical personnel having over 10 years of experience[49]. - The company has 145 employees with a master's degree or above, representing approximately 21.5% of the total workforce[187]. - The company reported a significant increase in human resource costs due to talent competition and rising living costs, prompting a commitment to invest in talent acquisition and training[100]. - The company aims to improve its workforce by increasing recruitment and enhancing employee training to address talent shortages[113]. - The company conducted 127 training sessions in 2017, with a total of 2,416 employee training completions[190]. - The remuneration policy for management is based on annual salary systems linked to the company's annual performance[188]. - The total remuneration for executives during the reporting period amounted to 503.11 million CNY[177]. Future Plans and Strategic Initiatives - The company plans to increase production capacity and enhance self-sufficiency in non-human primates and rodents to avoid supply chain disruptions[101]. - The company aims for a contract value and revenue growth of no less than 20%, with innovative business growth exceeding traditional business growth[111]. - The company will enhance its international market presence by increasing marketing personnel in active R&D areas in the U.S. and participating in more drug development conferences[110]. - The company plans to expand its service offerings to include drug screening, clinical trial services, and evaluations for medical devices and veterinary products[109]. - The company will enhance its technical capabilities in bioanalysis and general toxicology, focusing on new technologies and proprietary methods in 2018[113]. - The company plans to establish a modern monkey breeding facility in southern China to improve production and quality[116]. - The company will introduce equity incentives in 2018 to boost employee motivation and business efficiency[114].

Financial Performance - Operating revenue for the first nine months reached CNY 169,771,067.73, a growth of 44.38% year-on-year[6] - Net profit attributable to shareholders surged by 189.64% to CNY 34,659,759.04 for the first nine months[6] - Basic and diluted earnings per share improved by 175.00% to CNY 0.55[6] - Total operating revenue for Q3 2017 reached ¥74,755,962.29, an increase of 53.4% compared to ¥48,761,011.74 in Q3 2016[27] - Net profit for the first nine months of 2017 was ¥169,771,067.73, a 44.4% increase from ¥117,583,688.86 in the same period last year[27] - The net profit for Q3 2017 reached CNY 7,733,565.26, representing a growth of 200.5% from CNY 2,574,279.05 in Q3 2016[32] - The total profit for the first nine months of 2017 was CNY 11,095,409.34, up 65.5% from CNY 6,697,149.52 in the same period last year[32] - The total comprehensive income attributable to the parent company for Q3 2017 was CNY 22,163,885.35, reflecting a substantial increase from CNY 5,166,547.17 in Q3 2016[29] Assets and Liabilities - Total assets increased by 50.15% year-on-year to CNY 896,473,066.48[6] - The company’s total assets reached ¥896,473,066.48, up from ¥597,062,330.28 at the beginning of the period[19] - Total current liabilities as of September 30, 2017, amounted to ¥308,324,135.77, compared to ¥252,215,906.22 at the beginning of the year, reflecting a 22.3% increase[22] - The company’s total liabilities as of September 30, 2017, were ¥380,307,384.35, compared to ¥336,877,346.36 at the beginning of the year, showing an increase of 12.9%[21] Shareholder Information - The total number of shareholders reached 14,568 by the end of the reporting period[9] - The top shareholder, Feng Yuxia, holds 28.56% of the shares, totaling 23,359,500 shares[9] - The total equity attributable to shareholders reached ¥515,813,505.66, compared to ¥259,832,442.25 at the beginning of the year, marking a 98.7% increase[21] Cash Flow - Cash flow from operating activities for the first nine months was CNY 68,862,535.31, up 44.01% year-on-year[6] - Net cash flow from operating activities for the first nine months was ¥68,862,535.31, up from ¥47,817,078.12 year-over-year, representing a growth of approximately 43.9%[36] - Cash inflow from operating activities totaled ¥246,738,591.20, compared to ¥190,158,672.35 in the same period last year, indicating a year-over-year increase of about 29.7%[36] - Cash outflow from operating activities was ¥177,876,055.89, an increase from ¥142,341,594.23, reflecting a rise of approximately 25%[36] - Net cash flow from financing activities was ¥223,768,823.06, compared to a negative cash flow of ¥375,930.16 in the previous year, showing a substantial turnaround[37] Inventory and Receivables - Inventory increased by 57.93% to ¥101,667,023.91, primarily due to unfinished service projects[13] - Accounts receivable notes rose by 83.89% to ¥3,493,130.81, primarily from increased service revenue collections[12] - Other receivables rose by 53.07% to ¥924,811.64, mainly due to an increase in petty cash[12] Financial Expenses and Income - The company reported a significant increase in financial expenses by 41.03% to -¥413,109.81, mainly due to higher deposit interest[14] - The company reported non-recurring gains of CNY 2,427,072.54 for the current period[10] - The company reported other income of CNY 549,891.77 in Q3 2017, contributing to the overall profitability[32] Future Outlook - The company has plans for market expansion and new product development, as indicated by the increase in operating revenue and net profit[32]