Financial Performance - The company achieved operating revenue of CNY 665,955,931.75, representing a 48.19% increase compared to CNY 449,392,825.85 in 2019[31]. - The net profit attributable to shareholders for 2020 was CNY 129,386,307.58, a 94.35% increase from CNY 66,573,120.12 in 2019[31]. - The net cash flow from operating activities for 2020 was CNY 207,770,893.19, showing a significant increase of 256.39% compared to CNY 58,299,144.52 in 2019[31]. - The total assets at the end of 2020 were CNY 1,364,323,129.19, a 20.92% increase from CNY 1,128,319,614.99 at the end of 2019[31]. - The net profit after deducting non-recurring gains and losses for 2020 was CNY 123,478,266.11, which is an increase of 111.39% from CNY 58,411,632.24 in 2019[31]. - The company plans to distribute a cash dividend of 6.30 RMB per 10 shares, totaling 39,060,000 RMB (including tax) based on a total share capital of 62,000,000 shares as of December 31, 2020[8]. - The cash dividend represents 30.19% of the net profit attributable to the shareholders of the parent company for the year 2020[8]. Audit and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[7]. - The board of directors and senior management confirm the accuracy and completeness of the annual report[4]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[10]. - There are no violations of decision-making procedures regarding external guarantees[10]. - The company has not experienced any issues with a majority of directors being unable to ensure the authenticity of the annual report[12]. - The report includes forward-looking statements that are subject to uncertainties and do not constitute a substantive commitment to investors[9]. Research and Development - The company’s strategic focus includes expanding its research and development capabilities in drug metabolism and pharmacokinetics[24]. - The company invested 7.05% of its operating revenue in R&D, up by 0.78 percentage points from the previous year[33]. - The average output value per R&D personnel increased to CNY 560,300, a rise of 10.01% year-on-year[33]. - The company is enhancing its R&D capabilities in areas such as PROTAC technology and preclinical safety evaluation for biopharmaceuticals[33]. - The company has established a comprehensive preclinical drug development capability, providing one-stop services from lead compound screening to clinical trial application[61]. - The company has developed advanced technologies in modern synthetic chemistry, drug discovery, and pharmacokinetics, enhancing the efficiency of drug development[61]. - The company has established a PROTAC technology platform that can support over 10 PROTAC research projects annually, enhancing the efficiency of drug development[22]. Market Position and Strategy - The company aims to enhance its market presence through potential mergers and acquisitions in the biopharmaceutical sector[24]. - The company is recognized for its dual reporting capabilities under both Chinese and U.S. GLP standards, which is a significant competitive advantage in the preclinical CRO sector[54]. - The global CRO market is projected to reach $64.58 billion by 2021, with a compound annual growth rate (CAGR) of 12.8% from 2016 to 2021[51]. - China's CRO market size is expected to grow from $6.8 billion in 2019 to $22.2 billion by 2024, with a CAGR of approximately 26.5%[51]. - The company has established a professional service network in major Chinese cities, providing high-quality R&D services to leading domestic pharmaceutical companies[115]. - The company has accumulated a diverse international client base, including renowned pharmaceutical firms such as Takeda, Johnson & Johnson, and GSK, enhancing its global presence[116]. Operational Efficiency - The company has a comprehensive procurement process for laboratory animals, reagents, and equipment, ensuring quality control and compliance with internal regulations[47]. - The company has established three service models: product customization, design and development, and collaborative research, ensuring high-quality and efficient drug development[48]. - The company actively participates in industry exhibitions and academic seminars to expand its client base and enhance its influence in the market[50]. - The company has built a GMP-compliant raw material drug research platform, successfully developing innovative and generic drug raw materials for multiple pharmaceutical companies[63]. Talent and Workforce - The company employs 1,642 staff, with 80.39% holding a bachelor's degree or higher, and 26.67% holding a master's or doctoral degree[54]. - The number of R&D personnel increased to 1,372, representing 83.56% of the total workforce, up from 82.12% in the previous period[107]. - The total compensation for R&D personnel reached 18,148.55 million RMB, with an average salary of 15.28 million RMB, compared to 12,741.83 million RMB and 14.46 million RMB respectively in the previous period[107]. - The company emphasizes talent acquisition, planning to recruit high-level professionals in chemistry, drug formulation, oncology research, pharmacokinetics, and toxicology over the next few years[195]. Future Outlook - The company plans to continue expanding its research and development capabilities to drive future growth[142]. - Future strategies include expanding the PROTAC research team by 50%-100% and establishing a high-standard drug discovery laboratory to serve international clients[192]. - The company intends to invest in advanced equipment and attract experienced talent to strengthen its capabilities in biopharmaceutical research[191]. - The company will enhance its employee training system to improve overall business capabilities and leadership skills among staff and management[195]. - The company is committed to a "people-oriented" development strategy, focusing on talent cultivation and retention[195].

Financial Performance - Net profit attributable to shareholders of the listed company was ¥74,756,419.87, representing a growth of 60.09% year-on-year[18] - Operating income for the first nine months was ¥432,937,345.40, up 38.25% from the same period last year[18] - The net profit after deducting non-recurring gains and losses was ¥71,707,774.42, up 64.21% year-on-year[18] - Total operating revenue for Q3 2020 reached ¥172,530,624.48, a 50.2% increase from ¥114,856,759.43 in Q3 2019[61] - Net profit attributable to shareholders for the first three quarters of 2020 was ¥168,070,380.64, compared to ¥133,966,856.76 in the same period of 2019, reflecting a growth of 25.5%[61] - The net profit for the first three quarters of 2020 was CNY 77,840,671.33, compared to CNY 47,927,393.22 in the same period of 2019, reflecting a growth of approximately 62.5%[68] Cash Flow - The net cash flow from operating activities for the first nine months was ¥117,265,411.30, a significant increase of 306.93% year-on-year[18] - Cash flow from operating activities netted CNY 117,265,411.30, compared to CNY 28,817,038.90 in the same period last year, indicating a significant improvement[79] - Operating cash inflow for the first three quarters of 2020 reached ¥343,647,695.91, a significant increase of 66% compared to ¥207,097,976.05 in the same period of 2019[81] - Cash and cash equivalents at the end of the period stood at ¥369,841,028.35, down from ¥610,003,246.45 at the beginning of the year, indicating liquidity challenges[83] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,257,669,499.99, an increase of 11.46% compared to the end of the previous year[18] - The company's total liabilities as of September 30, 2020, were approximately RMB 175.6 million, compared to RMB 127.7 million at the end of 2019, representing an increase of about 37.4%[54] - Total assets as of September 30, 2020, were ¥1,101,707,942.83, an increase from ¥1,019,620,702.78 at the end of 2019[61] - Total liabilities as of September 30, 2020, were ¥139,642,018.97, compared to ¥95,447,583.23 at the end of 2019, indicating a rise of 46.2%[61] Research and Development - The R&D investment accounted for 6.99% of operating income, an increase of 1.03 percentage points compared to the previous year[20] - Research and development expenses rose by 61.96% to RMB 30,248,325.68, reflecting the company's commitment to enhancing R&D capabilities[38] - R&D expenses for Q3 2020 amounted to ¥10,976,434.87, a 46.5% increase compared to ¥7,526,132.03 in Q3 2019[61] Shareholder Information - The total number of shareholders at the end of the reporting period was 2,879[30] - The top shareholder, Chen Jinzhan, holds 15.68% of the shares, totaling 9,722,588 shares[30] - The company's equity attributable to shareholders reached approximately RMB 1.07 billion, up from RMB 993 million, reflecting an increase of about 7.9%[54] Operational Costs - The company experienced a 35.36% increase in operating costs, totaling RMB 270,913,523.21, in line with revenue growth[38] - Total operating costs for Q3 2020 were ¥139,897,793.21, up 50.8% from ¥92,720,036.76 in Q3 2019[61] - Operating costs for the first three quarters of 2020 were CNY 190,778,614.24, compared to CNY 140,184,693.12 in the same period of 2019, representing an increase of approximately 36%[71] Acquisitions and Investments - The company completed the acquisition of 100% equity in Meibang Qili Optoelectronics Technology (Shanghai) Co., Ltd., which has been renamed to Meidixi Puhui Pharmaceutical Technology (Shanghai) Co., Ltd., and it is now a wholly-owned subsidiary included in the consolidated financial statements[43] - Cash outflow from investment activities totaled ¥407,565,737.15, compared to ¥46,613,897.79 in the same period last year, reflecting increased investment efforts[81] Tax and Financial Management - The company reported a 52.53% increase in income tax expenses to RMB 9,884,336.98 due to profit growth[42] - The company received CNY 10,829,452.42 in tax refunds, up from CNY 5,367,294.60 in the same quarter last year[79] - The financial expenses for Q3 2020 showed a significant reduction, with interest income recorded at CNY -3,765,936.46 compared to CNY -539,616.90 in Q3 2019, indicating improved financial management[71]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2020, representing a year-on-year increase of 15%[1]. - The company's operating revenue for the first half of 2020 was approximately ¥260.41 million, representing a year-on-year increase of 31.32%[20]. - The net profit attributable to shareholders for the same period was approximately ¥46.68 million, a significant increase of 73.32% compared to the previous year[20]. - The net cash flow from operating activities surged by 390.53% to approximately ¥80.84 million, driven by improved collection of accounts receivable and increased contract prepayments[20]. - A total of 1,500,000 units were allocated for the establishment of a gout model in rats, enhancing drug efficacy evaluation capabilities[49]. - The company reported a total of 2,120 million in net asset value for various investment funds[191]. - The company reported a total investment fund value of 2,120 million for multiple mixed securities, indicating a consistent investment strategy across various funds[194]. Research and Development - The company has invested RMB 30 million in R&D for new technologies, focusing on improving drug efficacy and safety[1]. - The total R&D expenditure for the period was approximately ¥19.27 million, accounting for 7.40% of the company's operating revenue[43]. - The company has developed comprehensive preclinical drug R&D capabilities, providing one-stop services from lead compound screening to new drug clinical application submissions[37]. - The company has established a comprehensive technology platform for drug discovery, pharmaceutical research, and preclinical studies, positioning itself as a leader in the domestic CRO market[25]. - The company is establishing a PROTAC platform for targeted small molecule research, enhancing the ability to study previously undruggable targets[40]. - The company has developed a virtual screening platform using computer biology and molecular modeling techniques[40]. - The company is focused on expanding its market presence through continuous development of innovative drug evaluation models[49]. Market Expansion and Strategy - The company is expanding its market presence in Europe, targeting a 25% increase in market share by the end of 2021[1]. - The company has signed new orders amounting to 530 million yuan during the reporting period, reflecting a year-on-year increase of 106.41%[79]. - The company has established a professional service network in major cities, enhancing its capability to provide high-quality R&D services to domestic pharmaceutical companies[75]. - The company has a strong focus on innovation in drug development, leveraging its experience with international pharmaceutical companies to serve domestic clients[25]. - The company actively participates in various industry exhibitions and academic seminars to expand its client base and enhance its influence[32]. Operational Efficiency - The company has maintained a strong cash position, with cash reserves amounting to RMB 200 million as of June 30, 2020[1]. - The company continues to optimize its customer and business structure, contributing to sustained growth in market orders[20]. - The company has implemented advanced screening methods for small molecules targeting STING pathways, enhancing its drug development capabilities[61]. - The company has achieved GLP certification from NMPA and meets FDA standards, allowing it to conduct eight types of research projects[82]. - The company has built a comprehensive research quality control system that aligns with international standards, ensuring compliance with both domestic and international regulatory requirements[72]. Risks and Challenges - The management highlighted potential risks related to regulatory changes that could impact future operations[1]. - The company faces risks related to raw material supply and price volatility, which could adversely affect business performance[88]. - Future R&D investment by pharmaceutical companies may decline due to macroeconomic factors, impacting the demand for CRO services[88]. Shareholder and Governance - The company has committed to various shareholding restrictions, ensuring long-term stability and commitment from major shareholders[116]. - The actual controllers of the company, including CHUN-LIN CHEN, committed to a 36-month lock-up period for shares held prior to the IPO, prohibiting transfer or management delegation[120]. - The company will adjust the issuance price in case of dividends, stock splits, or capital increases during the lock-up period[124]. - The company has made commitments to avoid any direct or indirect competition with its subsidiaries during the restriction period[155]. Environmental Management - The company has established internal environmental management systems for waste management, water pollution control, and air pollution control[168]. - Wastewater treatment facilities include secondary biological treatment and disinfection pools, ensuring compliance with Shanghai's wastewater discharge standards[168]. - The company conducts quarterly monitoring of wastewater, air emissions, and noise levels, with third-party testing conducted by Shanghai Weizheng Testing Technology Co., Ltd.[177]. Employee and Workforce - The company has a total of 1,246 R&D personnel, accounting for 83.40% of the total workforce[64]. - The total compensation for R&D personnel is approximately ¥81.52 million, with an average salary of ¥72,527.45[64]. - The company's workforce increased to 1,494 employees, a year-on-year growth of 41.75%, with 82.06% holding a bachelor's degree or higher[79].

Financial Performance - Operating income for the period was ¥105,877,593.97, representing a year-on-year increase of 20.38%[12] - Net profit attributable to shareholders was ¥15,258,015.35, reflecting a growth of 30.17% compared to the same period last year[12] - The company reported a net profit margin improvement, with retained earnings rising to ¥174.38 million from ¥160.43 million, an increase of 8.67%[39] - Total operating revenue for Q1 2020 reached ¥105,877,593.97, a 20.3% increase from ¥87,951,646.98 in Q1 2019[50] - Net profit for Q1 2020 was ¥15,465,601.25, representing a 32.5% increase compared to ¥11,697,541.44 in Q1 2019[52] - The total profit for Q1 2020 was ¥18,211,426.17, up from ¥13,386,845.32 in Q1 2019[52] - Total comprehensive income for Q1 2020 was ¥13,02 million, compared to ¥11,99 million in Q1 2019, indicating a growth of 8.6%[57] Cash Flow - The net cash flow from operating activities increased by 24.01% to ¥5,077,601.59[12] - The company reported cash inflows from operating activities totaling 79,617,531.27 RMB, compared to 60,569,054.03 RMB in the same period last year, representing a year-over-year increase of approximately 31.4%[62] - Cash flow from operating activities for Q1 2020 was 3,627,233.92 RMB, a significant improvement from -947,980.25 RMB in Q1 2019, indicating a positive cash flow trend[62] - Cash inflow from investment activities was ¥71.65 million, with a net cash flow from investment activities of ¥47.08 million, a significant recovery from a negative cash flow in Q1 2019[60] - The company’s cash flow from financing activities showed a net outflow of 1,900,000.00 RMB, indicating a reduction in financing activities compared to previous periods[64] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,142,494,649.52, an increase of 1.26% compared to the end of the previous year[12] - Current assets totaled approximately ¥873.87 million, an increase of 9.35% from ¥799.02 million in the previous year[34] - Non-current assets amounted to ¥268.63 million, down from ¥329.30 million, indicating a decrease of 18.38%[37] - Total liabilities were approximately ¥126.44 million, a decrease of 1.01% from ¥127.73 million[39] - Current liabilities decreased to ¥100.36 million from ¥114.07 million, a reduction of 12.06%[39] - The company’s total liabilities decreased to ¥93,555,392.99 from ¥95,447,583.23 year-over-year[48] Shareholder Information - The total number of shareholders at the end of the reporting period was 3,485[22] - The top shareholder, Chen Jinzhan, holds 15.68% of the shares, totaling 9,722,588 shares[22] - Total equity reached ¥1,000,588,211.68, including ¥62,000,000.00 in paid-in capital and ¥755,736,482.19 in capital reserve[70] Research and Development - Research and development expenses accounted for 8.21% of operating income, an increase of 2.46 percentage points from the previous year[15] - Research and development expenses rose by 71.89% to RMB 8,696,529.27, attributed to increased investments in self-developed projects[28] - R&D expenses in Q1 2020 amounted to ¥8,696,529.27, a significant increase of 72.1% from ¥5,059,238.06 in Q1 2019[50] Government Subsidies and Deferred Income - The company received government subsidies amounting to ¥493,582.91 during the reporting period[15] - The deferred income increased significantly to ¥26.08 million from ¥13.66 million, marking a growth of 91.00%[39] - The deferred income increased significantly to ¥21,887,827.85 in Q1 2020 from ¥10,586,565.89 in Q1 2019[48]

Financial Performance - The company's operating revenue for 2019 was approximately ¥449.39 million, representing a 38.30% increase compared to ¥324.94 million in 2018[19]. - The net profit attributable to shareholders for 2019 was approximately ¥66.57 million, a 9.54% increase from ¥60.77 million in 2018[19]. - The net profit after deducting non-recurring gains and losses was approximately ¥58.41 million, reflecting a 10.34% increase from ¥52.94 million in 2018[19]. - The cash flow from operating activities for 2019 was approximately ¥58.30 million, a decrease of 18.01% compared to ¥71.11 million in 2018[19]. - The total assets at the end of 2019 were approximately ¥1.13 billion, a 136.20% increase from ¥477.70 million at the end of 2018[19]. - The net assets attributable to shareholders at the end of 2019 were approximately ¥993.05 million, a significant increase of 185.59% from ¥347.72 million at the end of 2018[19]. - The company's operating revenue increased by 38.30% year-on-year, driven by continuous improvement in service capabilities and an optimized customer and business structure[21]. - The net cash flow from operating activities decreased by 18.01% year-on-year due to slower customer payments[21]. - The basic earnings per share for 2019 was CNY 1.36, a 3.82% increase compared to CNY 1.31 in 2018[20]. - The weighted average return on equity decreased by 5.21 percentage points to 13.94% in 2019 from 19.15% in 2018[20]. - Research and development expenses accounted for 6.27% of operating revenue, an increase of 1.19 percentage points from 5.08% in 2018[20]. Corporate Governance - The company received a standard unqualified audit report from the accounting firm[5]. - The board of directors and senior management confirmed the accuracy and completeness of the annual report[4]. - The company does not have any special arrangements for corporate governance[5]. - The company has established a governance structure to enhance management efficiency and ensure compliance with legal and regulatory standards[184]. - The company has committed to a 36-month lock-up period for shares held by major shareholders starting from November 5, 2019[152]. - The actual controller, CHUN-LIN CHEN, and other key shareholders have agreed not to transfer or manage their shares during the lock-up period[157]. - The company has confirmed that all commitments made by shareholders are being fulfilled as of the reporting date[153]. - The company has established a long-term commitment to maintain transparency regarding shareholding changes by its directors and senior management[155]. Market Position and Industry Trends - The global CRO market size is projected to grow from $31.85 billion in 2015 to $64.58 billion by 2021, with a compound annual growth rate (CAGR) of 12.8%[37]. - The domestic drug discovery market in China is expected to increase from $11 million in 2016 to $41 million in 2021, reflecting a CAGR of 30.1%[38]. - The domestic preclinical research market is anticipated to rise from $500 million in 2016 to $2.6 billion in 2021, with a CAGR of 21.1%[38]. - The CRO industry in China is experiencing rapid growth, with a projected market size of USD 12.3 billion by 2021, reflecting a compound annual growth rate of 20%[136]. - The top 10 CRO companies in China hold only 40% of the market share, indicating a low industry concentration[137]. Research and Development - The company achieved a total R&D investment of ¥28,187,885.48, which accounts for 6.27% of its operating revenue[57]. - The company has successfully developed approximately 300 mature pharmacodynamic models for drug efficacy evaluation[55]. - A total of 17 new drug and generic drug projects have been approved by CFDA/NMPA for clinical trials during the reporting period[55]. - The company has established a comprehensive platform for new drug clinical research applications (IND) and has formed distinctive features in modern synthetic chemistry and pharmacokinetics[59]. - The company is developing a DNA-encoded small molecule compound library screening technology, allowing simultaneous interaction of over 100 million compounds with targets[53]. - The company has developed a comprehensive preclinical drug R&D capability, offering one-stop services from lead compound screening to clinical application[52]. - The company has established advanced systems such as Provantis GLP Tox software and EMPOWER data management systems to ensure compliance with FDA requirements, enhancing its competitive edge[42]. Financial Management - The company reported no profit distribution or capital reserve transfer to share capital for the fiscal year 2019[5]. - The company has not proposed a profit distribution plan for 2019, as it plans to use profits for acquiring 100% equity of Meibang Qili, which exceeds 30% of its total assets[147]. - The company reported no cash dividends for the years 2017, 2018, and 2019, with net profits of 41.62 million, 60.77 million, and 66.57 million RMB respectively[149]. - The company received government subsidies amounting to RMB 9.47 million, accounting for 12.21% of the total profit for the period[99]. - The company’s overseas business revenue constituted 27.40% of its main business income, exposing it to foreign exchange risks[97]. Operational Risks - The company faces various operational risks, which are detailed in the risk factors section of the report[4]. - The company faces risks related to talent retention and market competition, particularly from large multinational CROs and domestic competitors[91][93]. Employee and Workforce - As of the end of the reporting period, 79.57% of the company's 1,219 employees hold a bachelor's degree or higher, with 29.94% holding master's or doctoral degrees, indicating a highly qualified workforce[41]. - The average salary of R&D personnel is 14.46 million RMB, with a total R&D personnel salary of 12,741.83 million RMB[73]. - The workforce increased to 1,219 employees, a growth of 29.82%, with 79.57% holding a bachelor's degree or higher[86]. Customer and Market Expansion - The company provided drug development services to nearly 600 clients, with over 220 new clients added during the reporting period[86]. - The company has established a professional service network in major cities, enhancing its market presence in the domestic innovative drug market[82]. - The company signed new orders worth 616 million yuan during the reporting period, reflecting a growth rate of 46.49%[85]. Compliance and Legal Matters - There are no significant lawsuits or arbitration matters reported for the year[197]. - The company has not disclosed any significant related party transactions during the reporting period[199]. - The company has not faced any situations that would lead to delisting or bankruptcy restructuring[197].