Financial Performance - The company's operating revenue for Q1 2023 was CNY 1,300,476,798.62, representing a year-on-year increase of 2.82%[5] - Net profit attributable to shareholders was CNY 146,461,478.20, reflecting a significant increase of 30.92% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 140,905,813.96, up by 40.80% year-on-year[5] - Basic earnings per share were CNY 0.55, an increase of 10.00% year-on-year, while diluted earnings per share also rose by 12.24% to CNY 0.55[5] - Total operating revenue for Q1 2023 was ¥1,300,476,798.62, an increase of 2.1% compared to ¥1,264,804,817.53 in Q1 2022[18] - Net profit for Q1 2023 reached ¥147,985,140.95, a 26.4% increase from ¥117,009,646.57 in Q1 2022[20] - Earnings per share for Q1 2023 were ¥0.55, compared to ¥0.50 in Q1 2022, indicating a growth of 10%[20] - The company reported a total comprehensive income of ¥169,129,872.78 for Q1 2023, compared to ¥117,009,646.57 in Q1 2022, indicating a significant increase[20] Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -205,371,184.05, a decrease of 273.44% compared to the previous year[5] - In Q1 2023, the company's cash inflow from operating activities was CNY 1,397,604,503.80, a decrease of 3.93% compared to CNY 1,454,945,120.54 in Q1 2022[22] - The net cash flow from operating activities was negative at CNY -205,371,184.05, contrasting with a positive CNY 118,412,693.12 in the same period last year[22] - Total cash outflow from operating activities increased to CNY 1,602,975,687.85, up from CNY 1,336,532,427.42 in Q1 2022, marking a rise of 19.9%[22] - The company reported a net cash flow from investing activities of CNY -387,477,924.05, worsening from CNY -232,350,285.63 in Q1 2022[23] - Cash inflow from financing activities was CNY 534,900,000.00, an increase of 37.5% compared to CNY 389,000,000.00 in Q1 2022[23] - The net cash flow from financing activities improved to CNY 474,244,778.31, compared to CNY 131,754,828.90 in the previous year[23] - The ending balance of cash and cash equivalents was CNY 1,933,679,374.82, up from CNY 1,331,217,048.92 in Q1 2022[23] - The company experienced a negative impact of CNY -8,335,479.50 from foreign exchange fluctuations on cash and cash equivalents[23] Assets and Liabilities - Total assets at the end of the reporting period were CNY 8,119,014,236.49, up 2.81% from the end of the previous year[6] - The total liabilities as of Q1 2023 were ¥2,187,697,538.68, slightly up from ¥2,139,939,039.32 in Q1 2022[16] - The total current liabilities increased to RMB 1,292,000,000.00 from RMB 1,200,000,000.00, reflecting a rise of approximately 7.7%[15] - The company's cash and cash equivalents decreased to RMB 1,948,595,711.94 from RMB 2,075,107,919.75, representing a decline of about 6.1%[14] - The company's inventory remained stable at RMB 931,538,922.77, slightly up from RMB 929,587,857.11, indicating a marginal increase[15] - The company's goodwill increased to RMB 577,208,353.10 from RMB 474,485,730.66, showing an increase of about 21.7%[15] - The total equity attributable to shareholders increased to ¥5,716,303,658.29 in Q1 2023, compared to ¥5,541,678,060.39 in Q1 2022, reflecting a growth of 3.2%[16] Business Operations - The company reported a decrease of 22.72% in the main business income from isolation protective products, while excluding this, the main business income increased by 21.54%[8] - Research and development expenses increased to ¥42,093,960.50 in Q1 2023, up from ¥32,913,801.70 in Q1 2022, marking a rise of 27.7%[18] - The company completed the acquisition of 100% equity in Jiangsu Yinbeisi Technology Development Co., Ltd. for RMB 24,330,000, focusing on pre-filled catheter flushing products[13] - The company’s subsidiary, Rocialle Healthcare, acquired 100% of Dene Healthcare Limited for GBP 1,737.16 million, with the transaction completed in January 2023[13] - The company established FULLCARE (KENYA) MEDICAL SEZ LIMITED with a registered capital of 120,000 million Kenyan Shillings, focusing on wound care and surgical infection control products[12] - The company's trading financial assets increased to RMB 255,757,608.95, up from RMB 99,667,468.12, marking a significant increase of approximately 156.5%[14] - The total cash outflow for investing activities was CNY 387,640,364.33, significantly higher than CNY 239,982,604.95 in Q1 2022[23]

证券代码：603301 证券简称：振德医疗 公告编号：2023-015 振德医疗用品股份有限公司关于 召开 2022 年度暨 2023 年第一季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 1、会议召开时间：2023 年 5 月 9 日（星期二）10:00-11:00 2、会议召开地点：上海证券交易所上证路演中心（网址： http://roadshow.sseinfo.com/） 3、会议召开方式：上证路演中心网络互动 4、投资者可于 2023 年 4 月 27 日（星期四） 至 5 月 8 日（星 期一）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目 或通过本公告后附的电话、传真和指定邮箱进行提问。公司将在说明 会上选择投资者普遍关注的问题进行回答。 振德医疗用品股份有限公司（以下简称"公司"）已于 2023 年 4 月 26 日发布公司 2022 年度报告以及 2023 年第一季度报告。为便于 广大投资者更全面深入地了解公司2022 年度和2023 年一季度经营成 果、财 ...

Financial Performance - The company's operating revenue for Q3 2022 reached ¥1,430,511,294.36, representing a year-on-year increase of 50.49%[7] - Net profit attributable to shareholders was ¥183,469,306.96, up 75.86% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥170,655,082.65, reflecting a significant increase of 109.26% year-on-year[7] - Basic earnings per share for the quarter were ¥0.81, an increase of 76.09% from the previous year[10] - Total operating revenue for the first three quarters of 2022 reached CNY 4,197,542,725.56, an increase from CNY 3,862,648,045.72 in the same period of 2021, representing a growth of approximately 8.7%[31] - The net profit for the current period is CNY 462,971,053.32, a decrease of 21% compared to CNY 585,594,652.61 in the previous period[36] - The total profit for the current period is CNY 511,616,644.69, down from CNY 668,071,178.86, reflecting a decline of approximately 23%[36] - The operating profit stands at CNY 517,283,539.26, compared to CNY 668,686,550.96 in the previous period, indicating a decrease of about 23%[36] - The total comprehensive income attributable to the parent company's shareholders is CNY 455,043,460.39, down from CNY 482,529,812.69, reflecting a decrease of about 5.7%[38] - The basic earnings per share for the current period is CNY 2.02, a slight decrease from CNY 2.12 in the previous period[38] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥7,436,622,969.47, marking a 15.81% increase from the end of the previous year[10] - The company's total assets increased to CNY 7,436,622,969.47 from CNY 6,421,676,690.51, marking a growth of about 15.8%[33] - Total liabilities decreased to CNY 1,877,872,137.63 from CNY 1,982,076,740.76, showing a reduction of approximately 5.3%[33] - Accounts receivable reached RMB 827,060,024.40, up from RMB 690,396,879.50 in the previous year[25] Cash Flow - The company reported a net cash flow from operating activities of ¥301,735,384.37 for the year-to-date, which is a decrease of 41.35% year-on-year[10] - The cash flow from operating activities is CNY 301,735,384.37, down from CNY 514,487,076.18, representing a decline of approximately 41%[41] - The cash inflow from operating activities totaled CNY 4,888,908,254.18, an increase from CNY 4,534,671,652.40 in the previous period[41] - The cash flow from investing activities shows a net outflow of CNY 623,768,264.99, compared to a smaller outflow of CNY 37,444,008.64 in the previous period[42] - The cash flow from financing activities resulted in a net inflow of CNY 623,897,439.24, contrasting with a net outflow of CNY 282,031,429.03 in the previous period[42] Shareholder Information - The total number of common shareholders at the end of the reporting period is 22,675, with the largest shareholder, Zhejiang Zhend Medical Holdings Co., Ltd., holding 49.82% of shares[18] - The company completed a private placement of 39,246,466 shares, increasing its registered capital to RMB 266,451,202[24] - The top ten shareholders hold a combined 62.52% of the company's shares, indicating a concentrated ownership structure[18] - The company has no pledged, marked, or frozen shares among its major shareholders[18] - The largest shareholder, Zhejiang Zhend Medical Holdings Co., Ltd., also holds shares in Xuchang Zhend Landscape Engineering Co., Ltd., indicating a potential related party relationship[21] Market Strategy and Future Plans - The company plans to continue expanding its market presence and enhancing brand influence to sustain revenue growth[11] - The company plans to repurchase shares with a total amount between RMB 75 million and RMB 150 million, with a maximum price of RMB 60 per share[24] - The company has repurchased a total of 290,549 shares, representing 0.1090% of the total share capital, with a transaction amount of RMB 13,394,681.62[24] - The company has indicated a focus on strategic acquisitions to enhance its competitive position in the market[31] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[31] Research and Development - Research and development expenses amounted to CNY 160,613,197.60, compared to CNY 105,536,290.91 in the previous year, reflecting a rise of approximately 52.2%[31] Non-Recurring Gains and Losses - Non-recurring gains and losses for the quarter included government subsidies of ¥69,399,111.50, contributing to the overall profit increase[11] - The company experienced a decrease in other comprehensive income, with a net amount of CNY -41,713,592.91 compared to CNY 1,089,635.19 in the previous period[36] Revenue from Specific Products - The revenue from epidemic prevention protective products increased by 98% year-on-year, although it decreased by 27% compared to Q2 2022[11]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥2,767,031,431.20, a decrease of 4.98% compared to ¥2,912,105,568.85 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2022 was ¥271,574,153.43, down 28.19% from ¥378,203,869.98 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥283,036,443.39, a decrease of 16.41% compared to ¥338,605,771.21 in the same period last year[22]. - The net cash flow from operating activities was ¥85,271,465.41, a significant decline of 74.84% from ¥338,953,666.48 in the previous year[22]. - Basic earnings per share for the first half of 2022 were ¥1.21, down 27.11% from ¥1.66 in the same period last year[25]. - The diluted earnings per share were ¥1.20, a decrease of 27.71% compared to ¥1.66 in the previous year[25]. - The weighted average return on net assets was 6.52%, a decrease of 2.31 percentage points from 8.83% in the previous year[25]. - The company's revenue for Q2 2022 was 1.502 billion RMB, an increase of 18.77% compared to Q1 2022[26]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, for Q2 2022 was 183 million RMB, up 82.82% from Q1 2022[26]. - The net profit attributable to the parent company for Q2 2022 was 160 million RMB, an increase of 42.75% compared to Q1 2022[26]. Assets and Liabilities - The total assets at the end of the reporting period were ¥7,125,746,328.34, an increase of 10.96% from ¥6,421,676,690.51 at the end of the previous year[22]. - The net assets attributable to shareholders at the end of the reporting period were ¥4,198,276,902.97, up 3.23% from ¥4,066,740,693.18 at the end of the previous year[22]. - Total liabilities reached RMB 2,732,328,057.94, compared to RMB 1,982,076,740.76, indicating a rise of 37.8%[177]. - Short-term borrowings increased to RMB 904,879,124.47, compared to RMB 660,725,916.67, a growth of 36.8%[175]. - Long-term borrowings rose to RMB 525,505,138.89, compared to RMB 145,155,069.44, representing an increase of 262.5%[175]. Market Position and Strategy - The company has established a marketing network covering over 6,300 hospitals across China, including more than 950 top-tier hospitals[31]. - The company ranks among the top three in China's medical dressing exports for several consecutive years[31]. - The company focuses on medical-grade personal care and family health care products, with a wide range of offerings[31]. - The company has developed efficient business cooperation systems with many well-known foreign medical device brands[31]. - The company’s products are recognized in over 70 countries and regions worldwide, including Europe, North America, and Asia[31]. - The company achieved a nationwide coverage rate of 97% in top 100 chain pharmacies, reaching over 100,000 pharmacy stores and more than 15,000 supermarkets and convenience stores[34]. - The company operates over 10 online stores on platforms like Tmall, JD.com, and Pinduoduo, with a total fan base exceeding 6 million[34]. - The company is focused on expanding its market presence both online and offline, leveraging its brand influence[34]. Research and Development - Research and development expenses increased by 32.99% to ¥98,734,445.53, reflecting the company's commitment to innovation and product development[76]. - The company is focusing on R&D investments, enhancing material analysis capabilities, and developing new products to meet clinical needs, including antimicrobial dressings[69]. - The company has established an independent marketing team for modern wound care products and set up a marketing team overseas to enhance market share[67]. Risks and Challenges - The company faces risks from regulatory changes in the healthcare sector, which could impact operations if not adapted to new policies[5]. - Product quality risks are significant due to the nature of medical supplies, necessitating strict quality control measures to maintain safety and reliability[5]. - Market risks include increased competition in both domestic and international markets, particularly from lower-cost regions[5]. - The company is enhancing its supply chain and quality management systems to mitigate risks associated with product quality and market competition[5]. Corporate Governance and Commitments - The company elected new board members including Wang Jiafen, Ni Ya, Li Shengxiao, and Zhu Chafen as independent directors[101]. - The company did not distribute profits or increase capital reserves, with no dividends or stock bonuses declared[105]. - The company has committed to a gradual reduction plan post-lock-up, limiting annual sales to no more than 5% of the total shares outstanding at the end of the previous year[121]. - The company will ensure that any profits gained from non-compliance with commitments will be returned to the company within five working days[124]. - The company has established measures to extend the lock-up period by three months if any commitments are violated[121]. Environmental and Social Responsibility - The company has not faced any environmental penalties and emphasizes green development and compliance with environmental regulations[112]. - The company has established an ISO system for environmental management and promotes energy-saving and emission-reduction initiatives[115]. - The company has implemented measures to enhance employee environmental awareness and increase investment in environmental protection[115].

2022 年第一季度报告 单位：元 币种：人民币 证券代码：603301 证券简称：振德医疗 振德医疗用品股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示 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、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务报表 信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|------------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期 增减变动幅度 (%) | | 营业收入 | 1,264,804,817.5 ...

Financial Performance - The company's operating revenue for 2021 was ¥5,091,572,447.78, a decrease of 51.04% compared to ¥10,398,545,638.73 in 2020[23]. - Net profit attributable to shareholders was ¥595,861,926.07, down 76.63% from ¥2,549,453,200.21 in the previous year[23]. - The net cash flow from operating activities decreased by 73.80% to ¥817,629,318.83 from ¥3,120,839,894.43 in 2020[23]. - Basic earnings per share fell to ¥2.64, a decline of 78.88% compared to ¥12.50 in 2020[23]. - The weighted average return on equity decreased to 14.22%, down 80.66 percentage points from 94.88% in 2020[23]. - The decline in revenue was primarily due to a decrease in sales of pandemic-related protective products as the domestic pandemic was effectively controlled[24]. - The gross profit margin was negatively impacted by global freight capacity shortages, exchange rate fluctuations, and rising raw material prices[26]. - The company achieved a total revenue of 4.907 billion RMB, a decrease of 52.41% year-on-year, but an increase of 164.43% compared to 2019[35]. - Revenue from epidemic prevention products reached 1.669 billion RMB, while excluding these products, the revenue was 3.238 billion RMB, reflecting a year-on-year growth of 17.87%[35]. - The net profit attributable to the parent company was 596 million RMB, down 76.63% year-on-year, but up 279.80% compared to 2019[35]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 6.00 CNY per 10 shares, totaling 136,322,841.60 CNY (including tax) for the 2021 fiscal year[6]. - The company’s total unallocated profits will be carried forward to the next fiscal year after the dividend distribution[6]. - The company has committed to a three-year shareholder return plan for 2021-2023, emphasizing its focus on shareholder value[177]. - The total number of shares held by directors and senior management decreased from 10,864,525 at the beginning of the year to 10,567,525 at the end of the year, a reduction of 297,000 shares[180]. - The total pre-tax remuneration for directors and senior management during the reporting period amounted to 1,069.82 million yuan[180]. Corporate Governance and Compliance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm for the fiscal year 2021[5]. - The company’s board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[4]. - The company has established a comprehensive internal control system to enhance corporate governance and risk management capabilities[172]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with all shareholders[172]. - The audit committee, nomination committee, and compensation committee are all chaired by independent directors, ensuring a majority of independent oversight[173]. Risk Management - The company has detailed potential risks in the report, which can be found in the section discussing future development[8]. - The company’s future plans and strategic developments are subject to investment risks, as stated in the forward-looking statements[7]. - The company faces risks related to regulatory changes in the healthcare industry, which could impact its operations if it fails to adapt to new policies[162]. - The company is experiencing increased competition in the medical dressing export market due to geopolitical uncertainties and rising domestic labor costs[165]. - The company is actively managing risks associated with fluctuations in exchange rates, raw material prices, and shipping costs through strategic pricing mechanisms and forward contracts[165]. Research and Development - The company invested in various information technology systems to enhance operational efficiency and support business development[43]. - The company is committed to increasing its research and development investment, focusing on surgical infection control materials and ostomy wound care technologies[153]. - The company has established a quality management system certified by ISO13485 and has passed multiple inspections by the FDA and local drug regulatory authorities, ensuring product quality[74]. - The company holds 51 invention patents and 486 utility model patents, along with 93 Class II and 9 Class III medical device registrations, enhancing its innovation capabilities[74]. - The company is focused on continuous innovation in product design and technology to meet the evolving needs of the healthcare market[64]. Market Expansion and Strategy - The company aims to become a leading healthcare enterprise with a target of reaching a market value of 100 billion RMB through a multi-channel marketing strategy focused on "medical + health"[146]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[186]. - The company plans to enhance its digital marketing efforts, aiming for a 50% increase in online sales[186]. - The company is actively pursuing market expansion through acquisitions, as evidenced by the acquisition of Anhui Lanxin and Shanghai Yao, which has broadened its product portfolio[122]. - The company plans to strengthen its regulatory compliance and monitoring mechanisms to ensure product quality and safety throughout the product lifecycle[122]. Operational Efficiency - The company implemented significant organizational and talent development initiatives to support rapid growth and improve operational efficiency[41]. - The company achieved a gross margin improved to 45%, up from 40% in the previous year, indicating better cost management[186]. - The company aims to improve production efficiency and product quality through lean management practices and automation upgrades[158]. - The company has emphasized lean manufacturing and has optimized its production processes, leading to improved supply chain efficiency and cost reduction[74]. - The company plans to enhance its digital infrastructure, including the completion of the second phase of its CRM system to improve operational management capabilities[154]. Acquisitions and Investments - The company acquired 100% equity of Shanghai Yaoao and Nantong Zhend, and increased its stake in Anhui Lanxin to 60% during the reporting period[96]. - The company approved an investment of approximately CNY 650 million for the construction of a new medical device production base and research institute in Shaoxing, Zhejiang Province, with land acquisition costs of CNY 45.13 million for 66,852 square meters[137]. - The company is in the process of expanding its surgical infection control production line with a total investment of CNY 845 million, which is currently under construction[137]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach[186]. - The company has proposed a non-public issuance of A-shares for 2021, with a feasibility analysis report on the use of raised funds[198].

Financial Performance - Revenue for Q3 2021 was CNY 950,542,476.87, a decrease of 77.88% compared to the same period last year[7] - Net profit attributable to shareholders for Q3 2021 was CNY 104,325,942.71, down 90.59% year-on-year[7] - Basic earnings per share for Q3 2021 was CNY 0.46, a decline of 91.40% compared to the previous year[9] - Revenue for the year-to-date period was CNY 3,862,648,045.72, down 52.41% year-on-year[7] - Net profit attributable to shareholders for the year-to-date period was CNY 482,529,812.69, a decrease of 77.00% compared to the previous year[7] - Total operating revenue for the first three quarters of 2021 was CNY 3,862,648,045.72, a decrease from CNY 8,116,660,488.11 in the same period of 2020, representing a decline of approximately 52.3%[26] - Net profit for the first three quarters of 2021 was CNY 585,594,652.61, compared to CNY 2,409,971,170.87 in 2020, reflecting a decrease of approximately 75.7%[33] - The total comprehensive income attributable to the parent company for the first three quarters of 2021 is CNY 482,529,812.69, compared to CNY 2,097,753,320.69 in the same period of 2020, indicating a significant decrease[35] Assets and Liabilities - Total assets as of the end of Q3 2021 were CNY 6,782,938,953.56, an increase of 5.98% from the end of the previous year[9] - The company's total assets as of September 30, 2021, are approximately ¥6.78 billion, compared to ¥6.40 billion at the end of 2020[24] - The company's total liabilities amounted to CNY 2,465,310,794.24, an increase from CNY 1,933,193,883.17 in the previous year, showing a growth of about 27.5%[26] - The total liabilities increased to approximately ¥2.10 billion from ¥1.74 billion year-over-year[24] - Current liabilities reached approximately $1.74 billion, remaining unchanged from the previous period[47] - Total liabilities were approximately $1.93 billion, down by $62.66 million compared to the previous period[47] Cash Flow - Cash flow from operating activities for the year-to-date period decreased by 80.76% to CNY 514,487,076.18[9] - Net cash flow from operating activities for the first three quarters of 2021 is CNY 514,487,076.18, a decrease from CNY 2,673,731,914.25 in the same period of 2020[39] - Cash inflow from operating activities totaled CNY 4,534,671,652.40 in the first three quarters of 2021, compared to CNY 8,968,332,752.97 in the same period of 2020[39] - The company reported a net increase in cash and cash equivalents of CNY 190,195,182.89 for the first three quarters of 2021, compared to an increase of CNY 1,321,802,813.74 in the same period of 2020[39] Shareholder Information - The total number of common shareholders at the end of the reporting period is 46,055[15] - Zhejiang Zhend Medical Holdings Co., Ltd. holds 48.06% of the shares, making it the largest shareholder[15] - The top ten shareholders collectively hold 83.50% of the shares, indicating a high level of concentration[17] - The company has no preferred shareholders with restored voting rights[15] Operational Costs and Expenses - Total operating costs for the first three quarters of 2021 were CNY 3,257,979,534.49, down from CNY 5,206,925,389.74 in 2020, indicating a reduction of about 37.4%[29] - Research and development expenses for the first three quarters of 2021 were CNY 105,536,290.91, compared to CNY 166,626,599.77 in 2020, a reduction of about 36.6%[29] - The company reported a profit from operations of CNY 668,686,550.96, significantly lower than CNY 2,899,823,827.82 in the same period of 2020, a decline of approximately 77.0%[31] - The company’s financial expenses decreased to CNY 5,716,071.15 from CNY 48,082,599.43, a reduction of approximately 88.1%[29] Market Conditions - The decline in revenue and profit was attributed to the normalization of prices for pandemic-related protective products and increased shipping costs due to global supply chain issues[11] Other Financial Metrics - The weighted average return on equity decreased by 34.76 percentage points to 2.63% in Q3 2021[9] - The company's cash and cash equivalents as of September 30, 2021, amount to approximately ¥1.95 billion, an increase from ¥1.81 billion at the end of 2020[21] - Total current assets decreased to approximately ¥3.73 billion from ¥4.35 billion year-over-year[21] - Short-term borrowings increased to approximately ¥646.84 million from ¥358.37 million year-over-year[24] - The company reported a decrease in inventory to approximately ¥821.55 million from ¥1.08 billion year-over-year[21] - The company’s deferred income tax liabilities increased to CNY 37,619,757.21 from CNY 7,855,497.98, indicating a growth of about 377.5%[26] - The company adopted new leasing standards effective January 1, 2021, impacting the accounting treatment of lease liabilities and right-of-use assets[48]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥2,912,105,568.85, a decrease of 23.76% compared to ¥3,819,840,910.57 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was ¥378,203,869.98, down 61.74% from ¥988,568,649.97 in the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥338,605,771.21, a decrease of 65.60% compared to ¥984,201,245.76 in the same period last year[25]. - The net cash flow from operating activities was ¥338,953,666.48, down 85.11% from ¥2,276,369,995.53 in the previous year[25]. - Basic earnings per share decreased to CNY 1.66, down 67.06% compared to the same period last year[26]. - Diluted earnings per share also fell to CNY 1.66, a decrease of 62.70% year-over-year[26]. - The weighted average return on equity dropped to 8.83%, a decrease of 44.52 percentage points compared to the previous year[26]. - The company achieved a total revenue of 2,907.10 million yuan in the first half of 2021, a decrease of 23.79% compared to the same period last year, but an increase of 284.72% compared to the first half of 2019[50]. - The net profit attributable to the parent company was 378.20 million yuan, down 61.74% year-on-year, but up 529.24% compared to the first half of 2019[50]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,492,339,601.75, an increase of 1.44% compared to ¥6,400,086,700.05 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company at the end of the reporting period were ¥3,905,266,172.22, a decrease of 6.63% from ¥4,182,785,620.66 at the end of the previous year[25]. - The company's total equity was CNY 4,264,976,257.12, down from CNY 4,466,892,816.88, a decrease of 4.52%[172]. - Total liabilities amounted to CNY 2,227,363,344.63, an increase of 15.23% compared to CNY 1,933,193,883.17 from the previous period[172]. - The company's cash and cash equivalents increased by 25.95% to CNY 2,278,426,000, representing 35.09% of total assets[65]. Sales and Market Strategy - The company has established a marketing network covering over 5,600 hospitals across China, including nearly 900 top-tier hospitals[34]. - The company has over 10 online stores on major e-commerce platforms, with a total fan base exceeding 5 million[34]. - The company focuses on expanding its product lines in both medical and health sectors, including personal care and family health products[34]. - The company is expanding its professional sales and channel teams in the domestic hospital market, aiming to improve sales efficiency and market penetration by over 20%[50]. - The company has achieved a 43.16% year-on-year increase in domestic hospital line sales, reaching 307.74 million yuan, compared to a growth of 81.21% from the first half of 2019[53]. Research and Development - The company is investing in research and development for innovative healthcare solutions, including advanced wound dressings and antiseptic products[39]. - The company has established a comprehensive quality management system certified by ISO13485, enhancing its market competitiveness[46]. - The company launched 4 invention patents and 63 utility model patents during the reporting period, enhancing its technological and competitive edge[56]. - The company reported R&D expenses of CNY 74,240,498.22, slightly up from CNY 73,200,102.13 in the first half of 2020[184]. Risks and Challenges - The company has detailed potential risks in the report, which can be found in the "Management Discussion and Analysis" section[8]. - The company faces risks related to regulatory changes in the medical device industry, which could impact operations if not adapted to timely[81]. - Product quality risks are significant due to the nature of the medical products, and the company is enhancing its quality management systems to mitigate these risks[81]. - The company is exposed to market risks, including increased competition and fluctuating demand for medical products, particularly in the context of global health crises[81]. Strategic Initiatives - The company plans to enhance its market presence through strategic partnerships and potential acquisitions in the healthcare sector[39]. - The company approved a share repurchase plan with a total fund of no less than RMB 120 million and no more than RMB 160 million, with a maximum repurchase price of RMB 90 per share[84]. - The company plans to acquire 30% of Suzhou Medis Medical Sports Goods Co., Ltd. for a total transaction amount of RMB 87 million, which will make Medis a wholly-owned subsidiary[84]. - The company aims to enhance its brand image through a new logo and digital marketing strategies, focusing on consumer interaction and brand loyalty[56]. Environmental and Compliance Commitments - The company emphasized its commitment to environmental protection and green development during its operations[100]. - The company committed to strict adherence to pre-IPO promises, including timely disclosure of any failures to fulfill commitments and compensation for investor losses[111]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[100].

Dividend and Share Capital - The company plans to distribute a cash dividend of 23.00 CNY per 10 shares (including tax), totaling approximately 517.74 million CNY based on 225,104,736 shares after excluding repurchased shares[8]. - The company reported a total share capital of 227,204,736 shares as of the report date, with 2,100,000 shares held in the repurchase account not participating in the dividend distribution[8]. - The company's net profit attributable to ordinary shareholders for 2020 was RMB 2,549,453,200.21, with a dividend payout ratio of 20.31%[179]. - The cash dividend policy aims to provide continuous and stable cash dividends while ensuring the company's operational growth[176]. - The company completed its share repurchase ahead of schedule due to business needs and operational conditions[174]. - The company repurchased a total of 2,100,000 shares, accounting for 0.92% of the total share capital, with a total transaction amount of RMB 133,344,319.82[174]. Financial Performance - The company's operating revenue for 2020 reached ¥10,398,545,638.73, a significant increase of 456.75% compared to ¥1,867,727,915.16 in 2019[29]. - Net profit attributable to shareholders was ¥2,549,453,200.21, up 1,524.99% from ¥156,890,061.60 in the previous year[29]. - The net cash flow from operating activities increased to ¥3,120,839,894.43, representing a growth of 1,478.07% compared to ¥197,762,736.75 in 2019[29]. - Basic earnings per share rose to ¥12.50, a 1,462.50% increase from ¥0.80 in 2019[29]. - The weighted average return on equity increased to 94.88%, up 81.6 percentage points from 13.28% in 2019[29]. - The company's net assets attributable to shareholders grew to ¥4,182,785,620.66, a 207.83% increase from ¥1,358,786,069.59 at the end of 2019[29]. - Total assets increased to ¥6,400,086,700.05, reflecting a growth of 139.77% compared to ¥2,669,238,311.75 in 2019[29]. Risk Management and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[10]. - The company has not violated decision-making procedures for external guarantees[10]. - The company has maintained the accuracy and completeness of the annual report as confirmed by its board of directors and management[5]. - The company has not reported any instances of more than half of the directors being unable to guarantee the authenticity of the annual report[10]. - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors, highlighting potential investment risks[9]. - The company has detailed potential risks in the "Discussion and Analysis of Operating Conditions" section of the report[12]. Market and Sales Strategy - The increase in revenue was primarily driven by a surge in sales of pandemic-related protective products and the consolidation of Rocialle Healthcare Limited's financials following the acquisition of a 55% stake[30]. - The company has established a marketing network covering over 5,300 hospitals in China, including more than 800 top-tier hospitals[43]. - The company has a 95% coverage rate in the top 100 chain pharmacies across the country, totaling over 70,000 pharmacy stores[43]. - The company operates over 10 online stores on platforms like Tmall, JD, and Pinduoduo, with a total fan base exceeding 5 million[43]. - The company ranks among the top three in China's medical dressing exports for several consecutive years[43]. Research and Development - The company has invested a total of ¥40,052.70 million from its IPO proceeds into fundraising projects, ensuring production capacity for its wound care and surgical infection control products[89]. - Research and development expenses surged by 409.70% to ¥259,712,735.22, up from ¥50,953,817.91 in the previous year[91]. - The company is focusing on enhancing its R&D capabilities, with several projects in clinical trials and product registration stages, including a dermal substitute and a skin cell enrichment device[135]. - The company has recognized the need for continuous improvement in its supply chain and quality management systems to mitigate product quality risks[167]. Acquisitions and Investments - The company acquired 70% equity of Suzhou Medis for a total transaction amount of CNY 104.16 million, with payments of CNY 62.50 million made in early 2019 and CNY 20.83 million during the reporting period[141]. - The company invested CNY 30 million to subscribe for additional capital of CNY 3.15 million in Stanger, acquiring a total of 60% equity after a cash purchase of CNY 45 million[141]. - The company acquired 65% equity of Hangzhou Xindong for CNY 1.95 million, completing the registration procedures during the reporting period[141]. - The company approved an investment of approximately CNY 360 million for the relocation and expansion of production lines for wound care products and surgical control products, with partial completion by the end of the reporting period[142]. Operational Efficiency - The company implemented lean manufacturing and smart factory initiatives to enhance operational efficiency and supply chain responsiveness[81]. - The company aims to strengthen its strategic partnerships with international and regional clients to further develop new product lines and increase market share[158]. - The company plans to gradually reduce shareholdings after the lock-up period, with annual reductions not exceeding 5% of the total share capital at the end of the previous year[191]. Future Outlook - The company aims to become a leading healthcare enterprise with a market value of over 100 billion RMB by focusing on "medical + health" sectors and enhancing digital operations and continuous R&D[154]. - The company plans to invest approximately RMB 12,000 million in a medical protective gear R&D and industrialization project, which is yet to commence[174]. - The company will enhance its digital marketing capabilities and improve operational efficiency through the integration of online and offline channels in the retail market[158]. - The company is actively seeking strategic acquisition opportunities in niche markets and key technologies globally[164].

I. Important Notice The company's management assures the truthfulness and completeness of this quarterly report, taking full legal responsibility - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibilities[8](index=8&type=chunk) - This company's Q1 2021 report is unaudited[11](index=11&type=chunk) II. Company Profile This section provides an overview of the company's key financial performance and shareholder structure [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2021, the company achieved explosive growth with revenue up 181.26% and net profit attributable to shareholders up 195.85%, driven by increased sales of epidemic prevention products and strong growth in conventional business Key Financial Data for Q1 2021 | Indicator | Current Period | Prior Year Same Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,994,536,800.50 | 709,139,585.11 | 181.26% | | Net Profit Attributable to Shareholders (Yuan) | 254,172,328.25 | 85,912,862.61 | 195.85% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 236,981,089.46 | 87,300,052.13 | 171.46% | | Net Cash Flow from Operating Activities (Yuan) | 229,569,623.19 | 197,190,457.14 | 16.42% | | Basic Earnings Per Share (Yuan/share) | 1.12 | 0.44 | 154.55% | | Weighted Average Return on Net Assets (%) | 5.96% | 6.13% | Decrease of 0.17 percentage points | - Revenue growth was primarily driven by a significant increase in sales of epidemic prevention products (masks, protective suits, isolation gowns) and growth in non-epidemic related businesses, with main business revenue reaching **1.991 billion Yuan**, a **181.59% year-on-year increase**[15](index=15&type=chunk) - Excluding epidemic prevention products, the company's main business revenue was **993 million Yuan**, a **119.49% year-on-year increase** on a comparable basis, demonstrating strong organic growth in core businesses[15](index=15&type=chunk) - Total non-recurring gains and losses for the reporting period amounted to **17.19 million Yuan**, primarily from government subsidies and gains/losses from entrusted investments or asset management[16](index=16&type=chunk)[19](index=19&type=chunk) [2.2 Total Number of Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Non-Restricted Shareholders) as of the End of the Reporting Period](index=5&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20%28or%20Non-Restricted%20Shareholders%29%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 48,091 shareholders, with Zhejiang Zhende Holding Co Ltd as the controlling shareholder at 48.06%, and the actual controllers being Mr. Lu Jianguo and Ms. Shen Zhenfang - As of the end of the reporting period, the company had **48,091 shareholders**[19](index=19&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Zhejiang Zhende Holding Co Ltd | 109,191,600 | 48.06 | | Shen Zhenfang | 9,310,000 | 4.10 | | Lou Zhangdian | 2,101,600 | 0.92 | | Zhende Medical Products Co Ltd Repurchase Special Securities Account | 2,100,000 | 0.92 | | Lu Zhiying | 1,896,000 | 0.83 | - The shares held by controlling shareholder Zhejiang Zhende Holding Co Ltd and one of the company's actual controllers, Shen Zhenfang, are restricted shares; Lu Jianguo holds **83.50%** of Zhejiang Zhende, and he and Shen Zhenfang are a married couple, serving as the company's joint actual controllers[22](index=22&type=chunk) III. Significant Events This section details major financial changes, progress on significant matters, and commitments [3.1 Significant Changes in Major Accounting Statement Items and Financial Indicators of the Company and Their Reasons](index=6&type=section&id=3.1%20Significant%20Changes%20in%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20of%20the%20Company%20and%20Their%20Reasons) During the reporting period, several financial statement items showed significant changes due to business expansion and accounting standard changes, with revenue, costs, and expenses increasing substantially, and new right-of-use assets and lease liabilities recognized under new leasing standards, alongside a **246.98% increase in R&D expenses** Significant Changes in Consolidated Income Statement Items | Item | Current Period Amount (Yuan) | Prior Year Same Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,994,536,800.50 | 709,139,585.11 | 181.26% | Sales of epidemic prevention products and growth in conventional business | | Operating Cost | 1,242,954,241.51 | 410,733,839.84 | 202.62% | Increased proportionally with revenue growth | | Selling Expenses | 178,043,461.88 | 79,674,592.83 | 123.46% | Increase in sales service fees and personnel salaries | | Administrative Expenses | 155,995,087.59 | 82,925,774.64 | 88.11% | Increase in management personnel and salaries, and project investments | | R&D Expenses | 50,728,197.29 | 14,619,882.05 | 246.98% | Increase in R&D investment | | Financial Expenses | 2,128,390.55 | 8,705,805.55 | -75.55% | Impact of convertible bond redemption in prior year | | Non-controlling Interests | 56,148,766.13 | 643,229.40 | 8,629.20% | Significant increase in net profit of UK subsidiary Rocialle Healthcare | Significant Changes in Consolidated Balance Sheet Items | Item | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 77,060,007.25 | 0 | - | Implementation of new leasing standards | | Intangible Assets | 332,248,036.72 | 225,622,351.56 | 47.26% | Prepaid land payments transferred in | | Lease Liabilities | 63,614,691.58 | 0 | - | Implementation of new leasing standards | | Long-term Borrowings | 0 | 95,117,562.50 | -100.00% | Repayment of long-term borrowings | Significant Changes in Consolidated Cash Flow Statement Items | Item | Current Period Amount (Yuan) | Prior Year Same Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | 215,158,415.67 | -255,684,540.55 | - | Redemption of wealth management products increased cash inflow | | Net Cash Flow from Financing Activities | -231,357,023.08 | 106,802,902.84 | -316.62% | Repayment of long-term borrowings and share repurchases increased cash outflow | [3.2 Analysis and Explanation of Progress, Impact, and Solutions for Significant Matters](index=8&type=section&id=3.2%20Analysis%20and%20Explanation%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) During the reporting period, the company completed its share repurchase plan, repurchasing **2.1 million shares** (0.92% of total capital), while Suzhou Medis fulfilled its two-year performance commitments, and the company invested in Baoma Medical, acquiring a **4.95% stake** to expand into minimally invasive surgical consumables - The company completed its share repurchase plan, cumulatively repurchasing **2,100,000 shares**, accounting for **0.92%** of the total share capital, with a total value of **133 million Yuan**, and the repurchased shares will be used for equity incentive plans[30](index=30&type=chunk) - Suzhou Medis Medical Sports Products Co Ltd, acquired by the company, has fulfilled its performance commitments for 2019 and 2020, and related goodwill has been tested and found not to be impaired[30](index=30&type=chunk) - The company invested **49.5 million Yuan** in Baoma Medical Technology (Wuxi) Co Ltd through capital increase and equity acquisition, holding a **4.95% stake** post-transaction, aiming to expand into the field of minimally invasive surgical consumables[30](index=30&type=chunk)[33](index=33&type=chunk) [3.3 Unfulfilled Commitments Beyond Due Date During the Reporting Period](index=9&type=section&id=3.3%20Unfulfilled%20Commitments%20Beyond%20Due%20Date%20During%20the%20Reporting%20Period) During the reporting period, the company had no unfulfilled commitments beyond their due date - The company had no unfulfilled commitments beyond their due date during this reporting period[34](index=34&type=chunk) [3.4 Warning and Explanation Regarding Potential Cumulative Net Profit Loss or Significant Change Compared to the Same Period Last Year from the Beginning of the Year to the End of the Next Reporting Period](index=9&type=section&id=3.4%20Warning%20and%20Explanation%20Regarding%20Potential%20Cumulative%20Net%20Profit%20Loss%20or%20Significant%20Change%20Compared%20to%20the%20Same%20Period%20Last%20Year%20from%20the%20Beginning%20of%20the%20Year%20to%20the%20End%20of%20the%20Next%20Reporting%20Period) The company has not issued any warnings regarding potential cumulative net profit loss or significant year-on-year changes from the beginning of the year to the end of the next reporting period - The company has not issued any forecast warnings regarding significant changes or losses in cumulative net profit from the beginning of the year to the end of the next reporting period[34](index=34&type=chunk) IV. Appendix This section includes the unaudited financial statements for the reporting period [4.1 Financial Statements](index=9&type=section&id=4.1%20Financial%20Statements) This section provides the company's unaudited consolidated and parent company financial statements for Q1 2021, including the balance sheet, income statement, and cash flow statement, comprehensively reflecting the financial position, operating results, and cash flows for the period [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, the company's total assets were **6.579 billion Yuan**, a **2.80% increase** from the end of the prior year, with net assets attributable to shareholders at **4.301 billion Yuan**, up **2.83%** Key Items from Consolidated Balance Sheet (March 31, 2021) | Item | Amount (Yuan) | | :--- | :--- | | **Assets** | | | Cash and Cash Equivalents | 1,852,822,693.31 | | Accounts Receivable | 659,817,933.00 | | Inventories | 1,066,089,686.26 | | **Total Assets** | **6,579,297,872.18** | | **Liabilities** | | | Short-term Borrowings | 350,356,736.11 | | Accounts Payable | 682,751,907.00 | | **Total Liabilities** | **1,937,100,394.35** | | **Shareholders' Equity** | | | Equity Attributable to Parent Company Owners | 4,301,318,433.74 | | **Total Shareholders' Equity** | **4,642,197,477.83** | [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2021, the parent company's total assets were **4.306 billion Yuan**, total liabilities were **1.361 billion Yuan**, and the asset-liability ratio was **31.61%** Key Items from Parent Company Balance Sheet (March 31, 2021) | Item | Amount (Yuan) | | :--- | :--- | | **Assets** | | | Cash and Cash Equivalents | 857,283,091.17 | | Prepayments | 851,291,004.33 | | **Total Assets** | **4,306,246,005.78** | | **Liabilities** | | | Short-term Borrowings | 250,255,902.78 | | Other Payables | 555,975,788.99 | | **Total Liabilities** | **1,361,343,181.42** | | **Shareholders' Equity** | | | **Total Owners' Equity** | **2,944,902,824.36** | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, the company achieved total operating revenue of **1.995 billion Yuan**, up **181.26%** year-on-year, and net profit attributable to parent company shareholders of **254 million Yuan**, up **195.85%**, significantly enhancing profitability Key Items from Consolidated Income Statement (Q1 2021) | Item | Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Total Operating Revenue | 1,994,536,800.50 | +181.26% | | Total Operating Cost | 1,643,851,870.78 | +173.38% | | Operating Profit | 363,940,889.03 | +248.11% | | Total Profit | 364,628,010.00 | +251.47% | | Net Profit | 310,321,094.38 | +258.54% | | Net Profit Attributable to Parent Company Shareholders | 254,172,328.25 | +195.85% | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2021, the parent company achieved operating revenue of **1.125 billion Yuan**, up **160.79%** year-on-year, and net profit of **50.66 million Yuan**, a **50.05% year-on-year decrease** Key Items from Parent Company Income Statement (Q1 2021) | Item | Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 1,125,254,949.67 | +160.79% | | Operating Profit | 60,170,929.05 | -49.08% | | Total Profit | 60,991,666.93 | -48.08% | | Net Profit | 50,663,402.91 | -50.05% | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2021, net cash flow from operating activities was **230 million Yuan**, up **16.42%** year-on-year, while net cash flow from investing activities turned positive to **215 million Yuan** from **-256 million Yuan** due to wealth management product redemptions, and net cash outflow from financing activities was **231 million Yuan** for debt repayment and share repurchases Key Items from Consolidated Cash Flow Statement (Q1 2021) | Item | Amount (Yuan) | Last Year Same Period (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 229,569,623.19 | 197,190,457.14 | | Net Cash Flow from Investing Activities | 215,158,415.67 | -255,684,540.55 | | Net Cash Flow from Financing Activities | -231,357,023.08 | 106,802,902.84 | | Net Increase in Cash and Cash Equivalents | 214,305,361.38 | 34,328,432.93 | [Parent Company Cash Flow Statement](index=19&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2021, the parent company's net cash flow from operating activities significantly increased to **362 million Yuan** from **47.08 million Yuan** in the prior year, with net cash flow from investing activities turning positive, and net cash outflow from financing activities at **231 million Yuan** Key Items from Parent Company Cash Flow Statement (Q1 2021) | Item | Amount (Yuan) | Last Year Same Period (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 361,754,948.26 | 47,084,029.09 | | Net Cash Flow from Investing Activities | 324,342,635.98 | -246,306,352.10 | | Net Cash Flow from Financing Activities | -231,379,353.81 | 106,802,902.84 | | Net Increase in Cash and Cash Equivalents | 442,061,249.87 | -109,241,990.17 | [4.2 Information on Adjustments to Financial Statements at the Beginning of the First Year of Adoption of New Lease Standards from 2021](index=21&type=section&id=4.2%20Information%20on%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Lease%20Standards%20from%202021) The company adopted new lease standards from January 1, 2021, retrospectively adjusting opening financial statements to recognize **76.78 million Yuan** in right-of-use assets and **62.66 million Yuan** in lease liabilities on the consolidated balance sheet, while reducing prepayments by **14.12 million Yuan**, using a simplified approach without restating comparative periods - The company began implementing the revised 'Accounting Standard for Business Enterprises No 21 – Leases' issued by the Ministry of Finance on January 1, 2021[79](index=79&type=chunk) - Under the new standards, the company applies the same accounting treatment to all leases (except short-term and low-value leases), recognizing right-of-use assets and lease liabilities[79](index=79&type=chunk) Major Impact of New Lease Standards Adoption on Opening Consolidated Financial Statements | Item | Before Adjustment (Yuan) | Adjustment Amount (Yuan) | After Adjustment (Yuan) | | :--- | :--- | :--- | :--- | | Prepayments | 140,822,929.78 | -14,122,198.59 | 126,700,731.19 | | Right-of-Use Assets | 0 | +76,783,070.98 | 76,783,070.98 | | Lease Liabilities | 0 | +62,660,872.39 | 62,660,872.39 | [4.4 Audit Report](index=26&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - This quarterly financial report is unaudited[87](index=87&type=chunk)