Financial Performance - In 2020, the company's operating revenue reached RMB 960,249,354.36, representing a 13.40% increase compared to RMB 846,777,962.74 in 2019[19]. - The net profit attributable to shareholders was RMB 108,976,210.90, a 40.16% increase from RMB 77,752,946.19 in the previous year[19]. - The basic earnings per share increased by 37.25% to RMB 0.70 from RMB 0.51 in 2019[19]. - The net cash flow from operating activities surged by 164.82% to RMB 172,997,190.71, compared to RMB 65,327,125.55 in 2019[19]. - The total assets of the company at the end of 2020 were RMB 1,451,467,768.17, a 13.29% increase from RMB 1,281,249,579.06 at the end of 2019[19]. - The company's net assets attributable to shareholders increased by 7.48% to RMB 1,034,123,429.61 from RMB 962,184,729.76 in 2019[19]. - The company reported a 60.00% increase in basic earnings per share after deducting non-recurring gains and losses, reaching RMB 0.56[19]. - The weighted average return on equity rose to 10.92%, an increase of 2.37 percentage points from 8.55% in 2019[19]. Revenue Breakdown - In 2020, the company's operating revenue for Q1, Q2, Q3, and Q4 were CNY 196.42 million, CNY 235.01 million, CNY 261.30 million, and CNY 267.52 million respectively, showing a steady increase throughout the year[22]. - The net profit attributable to shareholders for Q1, Q2, Q3, and Q4 were CNY 21.83 million, CNY 22.13 million, CNY 29.10 million, and CNY 35.92 million respectively, indicating a significant growth in profitability[22]. - The animal health products segment generated CNY 321.91 million in sales, reflecting a growth of 12.57%[49]. - Sales revenue from feed enzymes grew by 38.00% to CNY 223.37 million, while the livestock microecology segment saw a 54.48% increase to CNY 110.54 million[48]. Research and Development - The company invested CNY 79.91 million in R&D, accounting for 8.32% of its revenue, indicating a strong commitment to innovation[39]. - The company has established eight technology centers and two laboratories, employing 216 dedicated R&D personnel to drive continuous product development[30]. - The company holds 252 domestic authorized invention patents and 37 new veterinary drug registration certificates, ranking in the top five in the animal health industry for new drug registrations over the past decade[40]. - The company is developing a series of new products related to disease diagnosis, prevention, and purification, including gene-engineered subunit vaccines and multi-valent vaccines[82]. Market Trends and Opportunities - The enzyme and micro-ecological preparation industry is in a growth phase, benefiting from increasing national emphasis on safety, environmental protection, and food safety[33]. - The demand for enzyme preparations is expected to grow due to rising environmental standards and the need for sustainable solutions in various industries[34]. - The company is positioned to benefit from the national emphasis on green agriculture and environmental protection, which is expected to drive business growth[68]. - The market for plant micro-ecology is projected to maintain a compound annual growth rate of over 10% due to rising food safety awareness and government focus on safe crop cultivation[68]. Corporate Governance and Shareholder Relations - The company has a cash dividend policy, aiming to distribute at least 15% of its distributable profits annually[128]. - The company will prioritize cash dividends, especially in mature stages without major capital expenditures, with a minimum of 80% distribution[129]. - The company will consider shareholder feedback in its profit distribution policy and ensure transparency in decision-making processes[131]. - The company has maintained a consistent cash dividend of 2.00 RMB per 10 shares over the past three years[134]. Environmental and Social Responsibility - The company donated 1 million RMB to the Red Cross Society of Laoshan District and 200,000 RMB worth of probiotics to a local children's hospital during the COVID-19 pandemic[157]. - The company has implemented various employee welfare programs, including health check-ups and educational scholarships, to enhance employee satisfaction[156]. - The company adheres to environmental regulations and has maintained compliance with relevant laws during the reporting period[158]. Strategic Initiatives - The company is actively seeking opportunities for mergers and acquisitions to expand its market presence and improve industry concentration[114]. - The company is enhancing its international cooperation, having established a global strategic partnership with Evonik, a Fortune Global 500 company[120]. - The company plans to invest approximately 594.35 million RMB in the construction of an animal biological product production base, covering an area of 109,272.26 square meters[103].

Financial Performance - Operating revenue for the first nine months reached CNY 692,731,084.70, a year-on-year increase of 12.27%[6] - Net profit attributable to shareholders increased by 52.79% to CNY 73,060,721.43 for the first nine months[6] - The company reported a net profit excluding non-recurring gains and losses of CNY 61,558,819.42, representing a 98.15% increase year-on-year[6] - The net profit for Q3 2020 was CNY 33,827,773.36, an increase from CNY 18,645,723.40 in Q3 2019, representing an increase of 81.5%[26] - The total profit for Q3 2020 was CNY 39,913,918.68, compared to CNY 17,891,924.55 in Q3 2019, marking an increase of 122.3%[27] - The net profit attributable to shareholders of the parent company was CNY 29,101,588.69 in Q3 2020, up from CNY 15,271,173.56 in Q3 2019, an increase of 90.6%[27] Cash Flow - Net cash flow from operating activities surged to CNY 82,706,547.97, a significant increase of 2,927.83% compared to the same period last year[6] - Cash generated from operating activities increased by 2,927.83% to ¥82,706,547.97 driven by higher sales revenue[13] - Operating cash inflow for the first three quarters of 2020 reached CNY 254,304,230.00, a significant increase from CNY 133,582,697.66 in the same period of 2019, representing an increase of approximately 90.5%[35] - The net cash flow from operating activities for the first three quarters of 2020 was -CNY 60,370,084.45, an improvement compared to -CNY 103,200,876.15 in the first three quarters of 2019[35] - The company reported a cash inflow from operating activities of CNY 69,456,621.67 in Q3 2020, compared to CNY 40,673,738.98 in Q3 2019, reflecting an increase of approximately 70.7%[35] Assets and Liabilities - Total assets increased by 8.87% to CNY 1,394,835,914.64 compared to the end of the previous year[6] - Total liabilities increased to ¥553,732,594.23 from ¥353,915,510.90 year-over-year, reflecting a growth of 56.5%[23] - The company’s total equity as of September 30, 2020, was ¥709,632,675.19, a decrease from ¥730,884,941.11 in the previous year[23] - Total liabilities amounted to CNY 248,991,945.00, with non-current liabilities totaling CNY 65,214,167.81[39] - The total amount of other payables was CNY 302,595,744.24, including interest payable of CNY 39,875.00[42] Shareholder Information - The total number of shareholders reached 14,239 by the end of the reporting period[9] - The largest shareholder, Qingdao Kangdian Industrial Co., Ltd., holds 51.91% of the shares[9] Earnings Per Share - Basic and diluted earnings per share increased by 46.88% to CNY 0.47[6] - Basic earnings per share for Q3 2020 were CNY 0.19, up from CNY 0.10 in Q3 2019, an increase of 90.0%[27] - Basic earnings per share for Q3 2020 were ¥0.0435, compared to a loss per share of ¥0.0044 in Q3 2019[30] Government Subsidies - The company received government subsidies amounting to CNY 16,637,817.32 for the first nine months, which are closely related to its normal operations[8] Investment Activities - Total cash inflow from investment activities was ¥337,191,779.70 in the first three quarters of 2020, compared to ¥234,195,418.13 in the same period of 2019[33] - The company reported a net cash outflow from investment activities of ¥100,525,999.98 in the first three quarters of 2020, an improvement from ¥257,286,691.01 in the same period of 2019[33] Research and Development - Research and development expenses for Q3 2020 were CNY 22,680,774.40, slightly down from CNY 23,572,967.93 in Q3 2019, a decrease of 3.8%[26] - Research and development expenses increased to ¥2,605,116.86 in Q3 2020, up from ¥1,546,841.78 in Q3 2019, reflecting a focus on innovation[29] Financial Management - Financial expenses increased by 129.73% to ¥2,405,181.52 mainly due to increased exchange losses[12] - Income tax expenses rose by 90.71% to ¥15,707,878.41 as a result of increased profits[12] - The company reported a cash outflow from financing activities of CNY 228,372,898.55 in Q3 2020, compared to CNY 124,203,344.07 in the same quarter of 2019, indicating an increase of approximately 83.9%[36] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[29]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥431.43 million, representing a year-on-year increase of 9.34% compared to ¥394.59 million in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was approximately ¥43.96 million, a 35.06% increase from ¥32.55 million in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥35.46 million, showing a significant increase of 70.97% compared to ¥20.74 million in the same period last year[20]. - The basic earnings per share for the first half of 2020 was ¥0.28, up 27.27% from ¥0.22 in the same period last year[18]. - The weighted average return on net assets decreased by 1.17 percentage points to 4.49% compared to the previous year[18]. - The net cash flow from operating activities was approximately ¥22.72 million, a significant improvement from a negative cash flow of ¥8.74 million in the same period last year[20]. - The total assets at the end of the reporting period were approximately ¥1.30 billion, an increase of 1.26% from ¥1.28 billion at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were approximately ¥975.38 million, reflecting a 1.37% increase from ¥962.18 million at the end of the previous year[20]. Research and Development - The company invested CNY 35.64 million in R&D during the first half of 2020, accounting for 8.26% of its revenue, with enzyme preparation R&D expenses making up 11.75%[35]. - The company has established eight technology centers and two laboratories, employing 195 dedicated R&D personnel, focusing on continuous investment in new product development[26]. - The company has achieved significant breakthroughs in core technologies related to enzyme preparations, positioning itself as a leader in the domestic enzyme preparation industry[33]. - The company has built a strong talent pool with 26 PhDs and 195 dedicated R&D personnel, ensuring a stable and professional team for ongoing development[38]. - The company is focusing on antibiotic alternatives, developing a comprehensive service system linking feed, breeding, and food sectors to enhance food safety[41]. Product Offerings - The company focuses on the research, production, and sales of enzyme preparations, micro-ecological preparations, and animal health products, aiming to provide core technology support for biomanufacturing and clean energy solutions for traditional industries[23]. - Enzyme preparations include feed enzymes, industrial enzymes, food enzymes, and biocatalysts, with applications in agriculture, food safety, and environmental protection[23]. - The feed enzymes are designed to maximize animal feed utilization, reducing nitrogen, phosphorus, and carbon dioxide emissions, thus minimizing environmental pollution[23]. - Micro-ecological preparations are utilized in various sectors including feed, agriculture, food, healthcare, and pharmaceuticals, promoting gut health and enhancing nutrient absorption in animals[25]. - The company’s products are aimed at reducing reliance on antibiotics in livestock, providing necessary solutions for low-antibiotic farming[25]. - The industrial enzymes significantly lower energy and water consumption while reducing environmental pollution in industries such as textiles and cleaning[24]. - The animal health products include biological products and veterinary medicines, contributing to animal health and food safety[23]. Market Outlook and Strategy - The enzyme and micro-ecological agents industry is in a growth phase, benefiting from increasing government focus on safety and environmental protection, with a broad market outlook[28]. - The company anticipates a growing demand for micro-ecological agents and enzyme preparations as alternatives to antibiotics, driven by rising food safety concerns[29]. - The animal health industry faces challenges such as overcapacity and product homogeneity, leading to industry consolidation, where companies with technological and brand advantages are expected to grow[31]. - The Ministry of Agriculture and Rural Affairs' announcement in July 2019 will phase out growth-promoting feed additives, favoring the market for traditional Chinese veterinary medicine and micro-ecological agents[32]. - The company is expanding its market presence by developing new products and technologies to meet the growing demand in various industries[23]. - Future outlook includes continued investment in R&D to enhance product offerings and market expansion strategies[23]. Financial Management and Risks - The company faces market competition risks in the enzyme preparation, micro-ecology, and animal protection industries, which could lead to performance declines if it fails to innovate[60]. - The company is exposed to risks from livestock epidemics and natural disasters, which can significantly impact the demand for feed enzymes and animal micro-ecology products[61]. - The company has reported a potential risk from raw material price fluctuations, which could increase production costs and reduce profitability[61]. - The company has established a joint fund with the Qingdao Science and Technology Bureau, contributing 12 million RMB to support applied research in the bio-manufacturing industry[58]. Shareholder and Corporate Governance - The company has conducted two shareholder meetings in 2020, with key decisions published on the Shanghai Stock Exchange website[64]. - The company has committed to not engaging in any business that competes with its operations, ensuring no direct or indirect competition from controlled entities[66]. - The lock-up period for shares held by major shareholders is set for 36 months, with restrictions on transferring shares during this time[67]. - Major shareholders are limited to transferring no more than 25% of their shares annually after the lock-up period[67]. - The company will comply with all relevant regulations regarding share transfers and management of shares held by directors and senior management[67]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern assumption, with no significant doubts regarding the company's ability to continue operations for the next 12 months[143]. - The company adheres to the accounting policies and estimates that reflect its operational characteristics, including fixed asset depreciation and revenue recognition[144]. - The company's functional currency for accounting purposes is Renminbi (RMB)[148]. - The group recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[151]. - The group recognizes assets and liabilities related to joint operations based on their share in the arrangement[157]. Inventory and Asset Management - The group classifies inventory into raw materials, semi-finished products, finished goods, turnover materials, and goods issued[190]. - Inventory is valued at actual cost upon acquisition, with a weighted average method used for issuing raw materials and finished goods[190]. - The group recognizes impairment losses for inventory when its cost exceeds its net realizable value as of the balance sheet date[190]. - Long-term equity investments are accounted for using the cost method or equity method depending on the level of control over the investee[194].

Financial Performance - Total revenue for Q1 2020 was RMB 196,422,352.85, representing a 13.23% increase compared to RMB 173,470,991.55 in the same period last year[6] - Net profit attributable to shareholders reached RMB 21,826,805.47, a significant increase of 109.76% from RMB 10,405,521.22 year-on-year[6] - The net profit excluding non-recurring gains and losses was RMB 17,552,107.20, up 329.25% from RMB 4,088,988.77 in the previous year[6] - Basic and diluted earnings per share both stood at RMB 0.14, doubling from RMB 0.07 in the previous year[6] - Net profit for Q1 2020 reached CNY 25,022,767.55, representing a significant increase of 104.3% from CNY 12,251,238.34 in Q1 2019[23] - The company reported a total comprehensive income of CNY 25,138,991.90 for Q1 2020, compared to CNY 11,773,155.88 in Q1 2019, an increase of 113.5%[24] Assets and Liabilities - Total assets at the end of the reporting period were RMB 1,382,342,256.62, a 7.89% increase from RMB 1,281,249,579.06 at the end of the previous year[6] - The company's current assets reached CNY 791,556,108.74, up from CNY 705,905,071.54, indicating an increase of about 12.1%[16] - The total liabilities stood at CNY 327,305,630.66, compared to CNY 248,991,945.00 at the end of 2019, reflecting a rise of approximately 31.4%[18] - Total liabilities as of Q1 2020 amounted to CNY 445,547,493.11, compared to CNY 353,915,510.90 in the previous year, indicating a rise of 26.0%[21] - The company's equity attributable to shareholders reached CNY 984,092,892.28, an increase from CNY 962,184,729.76, reflecting a growth of about 2.9%[18] Cash Flow - Cash flow from operating activities showed a net outflow of RMB -9,357,936.57, an improvement from RMB -23,372,643.57 in the same period last year[6] - The company experienced a net cash outflow from operating activities of CNY -9,357,936.57, an improvement from the previous year's outflow of CNY -23,372,643.57, representing a reduction of about 60%[30] - Investment activities generated a net cash inflow of CNY 8,284,673.56, a significant recovery from a net outflow of CNY -197,173,779.44 in Q1 2019[30] - The cash inflow from financing activities was 179,900,000.00 RMB, while cash outflow for financing activities totaled 103,031,833.54 RMB, resulting in a net cash flow of 76,868,166.46 RMB[34] Expenses - Total operating costs for Q1 2020 were CNY 173,212,986.82, up from CNY 166,237,935.37 in Q1 2019, reflecting a growth of 4.9%[23] - Research and development expenses for Q1 2020 were CNY 15,549,323.01, a decrease of 5.9% from CNY 16,521,013.01 in Q1 2019[23] - The company paid CNY 61,293,943.94 to employees in Q1 2020, a decrease from CNY 63,316,173.02 in Q1 2019, reflecting a reduction of about 3.2%[30] Investments - The company reported a 280.38% increase in investment income, reaching RMB 1,420,057.41 compared to RMB 373,325.84 in the previous year[10] - The company received CNY 181,000,000.00 from other investment activities, which was not reported in the previous year[30] Other Information - The company made a cash donation of RMB 1,000,000 to the Red Cross for pandemic prevention efforts, contributing to a 1092.72% increase in other expenses[10] - The company has implemented new revenue and lease standards starting from 2020, which may impact future financial reporting[34] - The company adopted new revenue and leasing standards effective January 1, 2020, impacting financial reporting[41]

Financial Performance - The company's operating revenue for 2019 was approximately RMB 846.78 million, representing a 4.03% increase compared to RMB 813.97 million in 2018[21]. - The net profit attributable to shareholders for 2019 was approximately RMB 77.75 million, a decrease of 6.75% from RMB 83.38 million in 2018[21]. - The net profit after deducting non-recurring gains and losses was approximately RMB 53.32 million, down 25.10% from RMB 71.18 million in the previous year[21]. - The net cash flow from operating activities was approximately RMB 65.33 million, a decline of 23.82% compared to RMB 85.75 million in 2018[21]. - The total assets at the end of 2019 were approximately RMB 1.28 billion, an increase of 35.54% from RMB 945.32 million at the end of 2018[21]. - The net assets attributable to shareholders increased by 68.90% to approximately RMB 962.18 million from RMB 569.69 million in 2018[21]. - The basic earnings per share for 2019 were RMB 0.51, down 29.17% from RMB 0.72 in 2018[22]. - The weighted average return on equity decreased to 8.55%, down 7.00 percentage points from 15.55% in 2018[22]. Revenue Breakdown - The company's total operating revenue for the year was approximately RMB 846 million, with a quarterly breakdown of RMB 173.47 million in Q1, RMB 221.12 million in Q2, RMB 222.45 million in Q3, and RMB 229.74 million in Q4[27]. - The net profit attributable to shareholders for the year was approximately RMB 77.77 million, with quarterly figures of RMB 10.41 million in Q1, RMB 22.14 million in Q2, RMB 15.27 million in Q3, and RMB 29.93 million in Q4[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 53.39 million for the year, with quarterly figures of RMB 4.09 million in Q1, RMB 16.65 million in Q2, RMB 10.33 million in Q3, and RMB 22.25 million in Q4[27]. - The net cash flow from operating activities for the year was RMB 65.33 million, with a significant increase in Q4 to RMB 62.60 million, compared to negative cash flow in Q1[27]. Research and Development - The company invested CNY 74.998 million in R&D in 2019, accounting for 8.86% of its revenue, which is a year-on-year increase of 7.61%[43]. - The company has established eight technology centers and two new laboratories, employing 196 dedicated R&D personnel to drive innovation and product development[33]. - The company is focused on the research and development of enzyme preparations, micro-ecological preparations, and animal health products, aiming to provide clean and energy-saving technologies for various industries[30]. - The company has formed partnerships with over 20 research institutions and 60 large and medium-sized enterprises to enhance product development and technology transfer[33]. Product Development and Market Expansion - The company is expanding its market presence in agriculture, food safety, and health sectors, leveraging its core technology support for bio-manufacturing[30]. - The company aims to enhance its product offerings and market reach through continuous innovation and strategic partnerships in the biotechnology sector[30]. - The company is focusing on the development of new veterinary drugs, with 36 new veterinary drugs under research and registration, which is crucial for future revenue growth[88]. - The company is actively expanding into new markets, including industrial enzymes and biocatalysis, while maintaining its leadership in feed enzymes[45]. Environmental and Social Responsibility - The company’s biomanufacturing products achieve energy savings and emissions reductions of 30%-50% compared to petrochemical routes, with future potential reaching 50%-70%[176]. - The company has committed to a stable profit distribution policy, prioritizing cash dividends to ensure reasonable returns for investors[140]. - The company has donated ¥1,000,000 to the Red Cross and ¥200,000 in probiotics to a local children's hospital during the COVID-19 pandemic[178]. - The company emphasizes a "people-oriented" talent philosophy, providing various training programs and a supportive work environment[177]. Shareholder and Corporate Governance - The company maintains a cash dividend policy ensuring at least 15% of the distributable profits are allocated as cash dividends annually[143]. - The board of directors must propose the annual profit distribution plan based on the company's profitability and funding needs, requiring approval from more than half of the board members[145]. - The company has not reported any breaches of these commitments during the reporting period[154]. - The company has outlined measures to prevent competition if it expands its business scope in the future[154]. Market Trends and Industry Outlook - The market for probiotics is expanding, particularly among consumers interested in health and wellness, with a growing focus on applications beyond gut health[36]. - The veterinary pharmaceutical industry in China achieved a total sales revenue of 458.97 billion yuan in 2018, with biological products contributing 132.92 billion yuan and chemical products 326.05 billion yuan[83]. - The global probiotic products market is growing at a rate of approximately 10%-15%, with the Asia-Pacific region accounting for 47% of global consumption, indicating a robust market potential for probiotics in China[113]. - The company is positioned to benefit from national policies promoting green agriculture and environmental protection, which are expected to drive growth in its plant micro-ecological products[74].

Financial Performance - Operating income for the first nine months increased by 4.46% to CNY 617,042,843.63 compared to the same period last year[6]. - Net profit attributable to shareholders decreased by 8.59% to CNY 47,818,977.70 year-on-year[6]. - The company reported a net profit of ¥23,580,696.24 for the first three quarters of 2019, down from ¥55,100,434.40 in the same period of 2018[18]. - The net profit for Q3 2019 was CNY 18,645,723.40, compared to CNY 20,328,817.75 in the same period last year, reflecting a decrease of approximately 8.3%[22]. - The total profit for Q3 2019 was CNY 17,891,924.55, down from CNY 25,595,834.95 in Q3 2018, indicating a decline of about 30.3%[23]. - The company's operating profit for Q3 2019 was CNY 17,903,074.47, a decrease from CNY 25,785,901.98 in Q3 2018, indicating a decline of approximately 30.6%[23]. - The total comprehensive income for Q3 2019 was CNY 19,331,768.78, compared to CNY 20,328,817.75 in Q3 2018, reflecting a decrease of about 4.9%[22]. Assets and Liabilities - Total assets increased by 32.38% to CNY 1,251,389,104.55 compared to the end of the previous year[6]. - Total liabilities decreased to ¥247,961,928.89 from ¥313,944,300.80, indicating improved financial health[15]. - The total assets as of September 30, 2019, were ¥1,011,778,694.08, a significant increase from ¥698,953,536.66 at the end of 2018, marking a growth of about 45%[17]. - The total liabilities as of September 30, 2019, were ¥306,098,163.56, slightly down from ¥309,280,437.92 at the end of 2018[17]. - The total assets as of the end of the reporting period were ¥945.3 million, unchanged from the previous year[32]. - The total liabilities remained stable at ¥313.9 million, indicating no significant changes in the company's debt structure[33]. Shareholder Information - Net assets attributable to shareholders rose by 64.03% to CNY 934,468,460.14 year-on-year[6]. - The number of shareholders reached 17,243, with the top ten shareholders holding a combined 70.70% of shares[9]. - Shareholders' equity increased to ¥1,003,427,175.66 from ¥631,376,900.01, demonstrating robust growth in the company's net worth[15]. - Shareholders' equity totaled $389,673,098.74, with paid-in capital at $116,000,000.00 and retained earnings of $55,100,434.40[37]. Cash Flow - Net cash flow from operating activities improved significantly, reaching CNY 2,731,543.34, a 121.42% increase compared to the previous year[6]. - Cash inflow from operating activities for the first nine months of 2019 was 649,320,523.31 RMB, up from 586,770,584.63 RMB in the same period of 2018, representing an increase of approximately 10.6%[26]. - The net cash flow from operating activities for the first nine months of 2019 was 2,731,543.34 RMB, a significant recovery from -12,754,718.72 RMB in the same period of 2018[26]. - The net cash flow from financing activities increased by 620.76% to ¥235,008,113.03 from a negative cash flow of ¥45,127,933.02, mainly due to new stock issuance[11]. - Cash flow from financing activities generated a net inflow of ¥239.0 million, compared to a net outflow of -¥7.1 million in the previous year, showing improved financing conditions[29]. Investment and R&D - R&D expenses for Q3 2019 amounted to ¥23,572,967.93, compared to ¥18,390,272.46 in Q3 2018, reflecting a growth of approximately 28%[20]. - The company plans to continue investing in R&D and market expansion to drive future growth[20]. - The company has made significant investments in new technologies and products, with cash outflows for investments totaling ¥428.0 million[29]. Financial Ratios - The weighted average return on equity decreased by 4.19 percentage points to 5.38%[6]. - Basic and diluted earnings per share fell by 28.89% to CNY 0.32[6]. - The basic and diluted earnings per share for Q3 2019 were both CNY 0.10, down from CNY 0.15 in Q3 2018, representing a decrease of 33.3%[22]. - The total liabilities to equity ratio stands at approximately 0.79, indicating a balanced capital structure[37].

Financial Performance - The company's operating revenue for the first half of 2019 was approximately CNY 394.59 million, representing a 2.48% increase compared to CNY 385.04 million in the same period last year[16]. - The net profit attributable to shareholders of the listed company decreased by 6.69% to CNY 32.55 million from CNY 34.88 million year-on-year[16]. - The net profit after deducting non-recurring gains and losses fell by 28.11% to CNY 20.74 million compared to CNY 28.85 million in the previous year[16]. - Basic earnings per share decreased by 26.67% to CNY 0.22 from CNY 0.30 in the same period last year[17]. - The weighted average return on net assets decreased by 0.93 percentage points to 5.66% compared to 6.59% in the previous year[17]. - The company reported a net cash flow from operating activities of CNY -8.74 million, an improvement from CNY -13.32 million in the same period last year[16]. - The company achieved a revenue of CNY 394.59 million in the first half of 2019, representing a year-on-year growth of 2.48%[43]. - The net profit for the same period was CNY 38.02 million, showing a decline of 4.84% compared to the previous year[38]. - The company reported a total comprehensive income of CNY 37,906,232.95 for the first half of 2019, compared to CNY 39,956,264.67 in the same period of 2018[96]. - The company reported a net loss of CNY 60,670,000.00 for the first half of 2019, which includes a loss of CNY 58,000,000.00 attributed to shareholders[112]. Assets and Liabilities - The company's total assets increased by 27.93% to CNY 1.21 billion from CNY 945.32 million at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company rose by 62.63% to CNY 926.50 million from CNY 569.69 million at the end of the previous year[16]. - Total assets increased to ¥1,209,378,282.52, up from ¥945,321,200.81, representing a growth of approximately 27.9% year-over-year[91]. - Total liabilities decreased to ¥219,800,614.92 from ¥313,944,300.80, a reduction of about 30%[90]. - The company's total liabilities at the end of the reporting period were 420,476,443.85[111]. Research and Development - The company has established eight technology centers and employs 195 dedicated R&D personnel, emphasizing a "technology-driven development" strategy[24]. - The company’s R&D expenses accounted for 9.05% of revenue in the first half of 2019, with enzyme preparation R&D expenses at 13.88%[32]. - R&D investment reached CNY 35.70 million, accounting for 9.05% of total revenue, with a year-on-year increase of 9.88%[38]. - The company is committed to continuous investment in new product development to ensure sustainable growth and market competitiveness[24]. Product and Market Focus - The company focuses on the research, production, and sales of enzyme preparations, micro-ecological preparations, and animal health products, aiming to provide core technology support for biological manufacturing and clean energy solutions for traditional industries[21]. - The main products include feed enzymes, industrial enzymes, food enzymes, and biological catalysts, with applications in animal feed, textile, food, and oil processing industries[22]. - The company’s animal health products include vaccines, veterinary medicines, and disinfectants, aimed at disease prevention and treatment in livestock[24]. - The micro-ecological preparations are used to improve gut microbiota balance, enhance immunity, and promote nutrient absorption in livestock, thereby reducing reliance on antibiotics[23]. - The company aims to reduce feed costs and environmental pollution through the use of enzyme preparations that enhance nutrient absorption and reduce phosphorus and calcium additives[21]. Financial Management - The company’s financial expenses decreased by 30.58% due to a reduction in borrowings[43]. - The net cash flow from financing activities surged by 653.49% due to funds raised from stock issuance[43]. - Accounts receivable decreased by 55.60% to 4,362,480.02, attributed to a reduction in customer settlement notes[45]. - Prepayments increased by 76.84% to 36,399,497.34, mainly due to increased outsourcing research and development expenses[45]. - Other current assets surged by 7,615.85% to 199,013,326.44, driven by an increase in funds raised for financial management[45]. Corporate Governance - The company continued to engage Ruihua Certified Public Accountants for the 2019 financial report and internal control audit[61]. - The company has appointed Jiang Yong as the new board secretary following the resignation of Cao Cheng[83]. - The company has seen a change in its supervisory board with the appointment of Chu Jianlei as a non-employee representative supervisor[84]. - The company has not reported any changes in its controlling shareholder or actual controller[80]. Market Outlook and Strategy - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million earmarked for potential targets[54]. - Market expansion plans include entering three new international markets by Q4 2019, aiming for a 10% market share in each[56]. - The company provided guidance for the next quarter, expecting revenue to be between 1.6 billion and 1.8 billion, indicating a potential growth of 20% to 30%[56]. Risks and Challenges - The company faces risks from market competition, disease outbreaks in livestock, and fluctuations in raw material prices[49]. - The animal health industry is undergoing consolidation due to overcapacity and regulatory pressures, favoring companies with technological and brand advantages[27]. Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the accuracy and completeness of its financial reporting[126]. - The financial statements are prepared based on the assumption of going concern, indicating no significant doubts about the company's ability to continue operations[124]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[132]. - The company assesses expected credit losses based on the credit risk of financial assets since initial recognition, with a loss provision for significant increases in credit risk[154].

Financial Performance - The company's operating revenue for 2018 was approximately CNY 813.97 million, representing a 1.82% increase compared to CNY 799.44 million in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 83.38 million, a decrease of 2.62% from CNY 85.63 million in 2017[22]. - The basic earnings per share for 2018 was CNY 0.72, down 2.70% from CNY 0.74 in 2017[22]. - The net cash flow from operating activities decreased by 29.65% to CNY 85.75 million in 2018 from CNY 121.90 million in 2017[22]. - The total assets at the end of 2018 were CNY 945.32 million, an increase of 6.99% from CNY 883.55 million at the end of 2017[22]. - The company's net assets attributable to shareholders increased by 4.67% to CNY 569.69 million at the end of 2018 from CNY 544.26 million at the end of 2017[22]. - The total non-recurring gains and losses for 2018 amounted to CNY 12.21 million, a decrease from CNY 17.08 million in 2017[25]. - The company achieved a main business revenue of ¥792,540,181.75, an increase of 1.91% compared to the previous year, while the main business cost rose by 6.79% to ¥406,517,550.65[47]. - The gross profit margin decreased by 2.34 percentage points to 48.71%, with the food manufacturing sector showing a gross margin of 48.40%, down 1.60 percentage points, and the pharmaceutical manufacturing sector at 49.29%, down 3.55 percentage points[49][50]. - The revenue from microbial ecological preparations increased by 18.94%, driven by favorable national policies, although the sales price decreased, leading to a decline in gross margin[50]. Research and Development - The company’s R&D focuses on enzyme preparations, micro-ecological preparations, and animal health products, aiming to provide clean and energy-saving technologies[28]. - The company has established eight technology centers and employs 172 R&D personnel, emphasizing a "technology-driven development" strategy[31]. - R&D expenses accounted for 8.56% of operating revenue in 2018, indicating a strong commitment to innovation[38]. - The company holds 65 invention patents related to animal health products and has been recognized as a leading enterprise in the enzyme preparation industry[37]. - The company is focusing on the development of industrial enzymes, which have a broader market potential compared to feed enzymes, and has launched new products in this area[40]. - The company has ongoing research and development for 34 new veterinary drug products, focusing on disease diagnosis, prevention, and purification[71]. - The company is in the initial stage of developing vaccines for African swine fever in collaboration with the Harbin Veterinary Research Institute[70]. - The company is focusing on the development of various injectable solutions and premixes, with several products expected to be launched in 2019[76]. Market and Industry Trends - The animal health industry is experiencing a trend towards reducing and limiting the use of antibiotics, with a growing emphasis on traditional veterinary medicines and biological products[35]. - The market for enzyme preparations and micro-ecological products is expected to grow due to increasing government and consumer focus on food safety[34]. - The overall trend in the veterinary drug market indicates a shift towards sustainable and organic solutions, which aligns with the company’s strategic focus on micro-ecological products[65]. - The company’s enzyme preparations and micro-ecological preparations are positioned as alternatives to antibiotics in animal feed, aligning with national policies to reduce antibiotic use in livestock[65]. - The company is expected to benefit from the national policy promoting the reduction of antibiotic use in animal husbandry, which will positively impact its feed enzyme preparations and veterinary traditional Chinese medicine business[65]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Ruihua Certified Public Accountants[7]. - The company emphasizes the importance of accurate and complete financial reporting, ensuring accountability from its board and management[7]. - The company has not reported any significant deficiencies in internal controls during the reporting period[179]. - The audit report issued on April 23, 2019, provided a standard unqualified opinion on the financial statements[181]. - The company maintains strict independence from its controlling shareholder, ensuring no interference in financial activities[172]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of RMB 2 per 10 shares, totaling RMB 30.93 million, based on a total share capital of 154.67 million shares as of March 31, 2019[4]. - The company has a cash dividend policy that mandates a minimum of 15% of the distributable profit to be distributed as cash dividends annually, with higher percentages for mature stages without major capital expenditures[110]. - In 2018, the company distributed a cash dividend of 5.00 RMB per 10 shares, totaling 58,000,000 shares, which accounted for 69.56% of the net profit attributable to ordinary shareholders[117]. - The company emphasizes the importance of independent directors in the decision-making process for profit distribution and ensuring shareholder interests are protected[113]. Employee Development and Structure - The company has implemented various employee development programs, including the "Technical Merchant" and "Gold Medal Blue Collar Plan," to enhance employee satisfaction and growth[144]. - The company has conducted over 60 training sessions for partners and employees, providing learning opportunities for approximately 2,438 individuals[145]. - The total number of employees in the parent company is 81, while the main subsidiaries employ 1,273, resulting in a total of 1,354 employees[168]. - The company has established a salary management system and performance management system, linking employee performance to total annual income[169]. Future Outlook and Strategic Initiatives - The company has outlined its future plans and strategies, although these do not constitute binding commitments to investors[5]. - The company plans to continue expanding its R&D efforts in enzyme and micro-ecological products to capture a larger market share and break international monopolies[92]. - The company is constructing its first overseas industrial base in Vietnam, expected to be operational in 2019, while also exploring opportunities in Southeast Asia, Russia, and Africa[98]. - The company is actively pursuing new product registrations and clinical trials to enhance its market position in the veterinary pharmaceutical industry[81].

Financial Performance - Net profit attributable to shareholders decreased by 49.83% to CNY 4,088,988.77 compared to the same period last year[6]. - Operating revenue decreased by 3.49% to CNY 173,470,991.55 compared to the previous year[6]. - The company’s basic earnings per share decreased by 22.22% to CNY 0.07[6]. - Total revenue for Q1 2019 was ¥173,470,991.55, a decrease of 3.5% compared to ¥179,741,149.13 in Q1 2018[29]. - The company's operating revenue for Q1 2019 was ¥13,139,969.84, a decrease of 34.5% compared to ¥20,055,706.67 in Q1 2018[32]. - Net profit for Q1 2019 reached ¥12,251,238.34, an increase of 8.2% from ¥11,317,401.13 in Q1 2018[30]. - The net profit for Q1 2019 was ¥1,774,087.09, a significant improvement from a net loss of ¥3,566,918.08 in Q1 2018[33]. - The total comprehensive income for Q1 2019 was ¥1,774,087.09, recovering from a total comprehensive loss of ¥3,566,918.08 in the same period last year[33]. Assets and Liabilities - Total assets increased by 30.43% to CNY 1,232,970,147.89 compared to the end of the previous year[6]. - The total assets as of March 31, 2019, amounted to 1,232,970,147.89, compared to 945,321,200.81 on December 31, 2018[22]. - The company's total assets as of March 31, 2019, amounted to ¥1,040,175,139.83, up from ¥698,953,536.66 at the end of 2018[27]. - Total current assets increased to ¥698,729,219.01 in Q1 2019, compared to ¥357,157,174.84 in Q4 2018[26]. - The total liabilities decreased from 313,944,300.80 to 237,110,001.20, reflecting a reduction in short-term borrowings[22]. - Total liabilities decreased to ¥293,421,785.50 in Q1 2019 from ¥309,280,437.92 in Q4 2018[27]. - Total equity reached CNY 631,376,900.01, including CNY 418,862,039.71 in undistributed profits[43]. - The total equity attributable to shareholders of the parent company was CNY 569,693,159.34[43]. Cash Flow - Cash flow from operating activities improved by 60.79%, reaching CNY -23,372,643.57[6]. - The net cash flow from operating activities improved by 60.94%, increasing from -59,836,256.01 to -23,372,643.57[15]. - The net cash flow from investing activities surged by 1350.60%, from -13,592,555.60 to -197,173,779.44, primarily due to increased investment of idle funds[15]. - The net cash flow from financing activities increased significantly by 668.14%, from -53,716,793.73 to 305,184,148.91, mainly due to funds raised from new stock issuance[15]. - Cash flow from operating activities showed a net outflow of ¥23,372,643.57 in Q1 2019, an improvement from a net outflow of ¥59,612,256.01 in Q1 2018[34]. - The company reported cash inflow from financing activities of ¥363,183,534.80 in Q1 2019, compared to ¥28,500,000.00 in Q1 2018[35]. - The net cash flow from financing activities was CNY 307,780,226.61, a substantial improvement from -CNY 26,277,100.00 in the previous year[38]. Expenses - The company’s gross profit margin was impacted by a 1.07% increase in operating costs, totaling CNY 93,705,617.64[13]. - Management expenses increased by 11.14%, from 18,454,614.46 to 20,510,271.91, mainly due to costs related to new stock issuance[14]. - Financial expenses decreased by 31.41%, from 2,046,391.96 to 1,403,528.11, primarily due to reduced foreign exchange losses[14]. - Research and development expenses for Q1 2019 were ¥16,521,013.01, slightly up from ¥16,352,269.11 in Q1 2018[30]. - The company incurred a total operating cost of ¥8,312,600.46 in Q1 2019, down from ¥15,342,093.28 in Q1 2018[32]. Shareholder Information - The number of shareholders reached 21,321, with the largest shareholder holding 51.91% of the shares[10]. - The company received government subsidies amounting to CNY 8,507,624.21, closely related to its normal business operations[7]. - Other income rose by 43.21%, from 2,449,218.86 to 3,507,624.21, attributed to government listing incentives received[14]. - The company plans to continue expanding its market presence and investing in new product development[28]. Accounting Standards - The company adopted new financial instrument standards effective January 1, 2019, impacting the classification and measurement of financial assets[16]. - The company adopted new financial accounting standards effective January 1, 2019, impacting the reporting of financial instruments[43].