Financial Performance - The company's operating revenue for Q3 2021 was ¥73,169,078.08, representing an increase of 86.95% compared to the same period last year[5]. - The net profit attributable to shareholders for the same period was ¥9,034,650.49, with a year-to-date increase of 103.24% to ¥29,692,579.59[5]. - Basic earnings per share for Q3 2021 was ¥0.02, with a year-to-date increase of 75.00% to ¥0.07[6]. - In the first nine months of 2021, the company achieved operating revenue of RMB 227.31 million, representing a year-on-year growth of 80.50%[16]. - The net profit attributable to shareholders increased by 103.24% year-on-year, with a net profit excluding non-recurring gains and losses rising by 15,632.33%[16]. - The total comprehensive income for the third quarter of 2021 was CNY 25,718,921.05, compared to CNY 15,287,160.29 in the same period of 2020, representing a year-over-year increase of approximately 68.5%[27]. - Basic earnings per share increased to CNY 0.07 from CNY 0.04, reflecting a 75% growth in profitability[27]. Research and Development - Total R&D investment for Q3 2021 was ¥17,661,537.97, a decrease of 37.73% compared to the same period last year[6]. - R&D investment as a percentage of operating revenue decreased by 48.33 percentage points to 24.14% in Q3 2021[6]. - The company has established multiple deep collaborations in drug research and development with various biotech firms, including UPPTHERA and BioAge[17]. - A new molecular structure co-developed with FORMA received registration certification from the American Chemical Society[17]. - The company is advancing its research on artificial intelligence applications in drug discovery, collaborating with Tencent AI Lab on a molecular skeleton transition algorithm[17]. Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,673,795,519.04, reflecting a 1.56% increase from the end of the previous year[6]. - Total liabilities increased to ¥387,574,169.88 in the third quarter of 2021, compared to ¥370,075,489.20 in the same period of 2020, marking an increase of about 4.0%[24]. - The company's total assets as of the end of the third quarter of 2021 amounted to ¥1,673,795,519.04, up from ¥1,648,005,753.49 at the end of 2020[25]. - The total equity attributable to shareholders reached ¥1,286,221,349.16, compared to ¥1,277,930,264.29 in the previous year, reflecting a growth of about 0.6%[24]. - The company’s contract assets increased significantly to ¥19,281,743.68 from ¥3,936,460.48, indicating a growth of approximately 389.5%[23]. Cash Flow - Cash flow from operating activities for the year-to-date period was ¥25,186,166.57, indicating an increase due to higher sales receipts[10]. - The company reported a net cash flow from operating activities growth of 162.99% compared to the previous year[16]. - Cash inflows from operating activities for the first three quarters of 2021 amounted to CNY 246,506,997.61, up from CNY 124,316,725.58 in the same period of 2020, indicating a 98.5% increase[29]. - The net cash flow from operating activities for the third quarter was CNY 25,186,166.57, a significant recovery from a negative cash flow of CNY -39,985,974.19 in the previous year[29]. - Cash inflows from investment activities totaled CNY 1,635,409,651.67, compared to CNY 936,525,126.13 in the same period of 2020, marking a 74.5% increase[30]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 10,345[12]. - Major shareholders included JIN LI with 20.43% ownership and 拉萨经济技术开发区华博医疗器械有限公司 with 14.08% ownership[12]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[27].

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching RMB 500 million, representing a 25% year-over-year growth[1]. - Revenue for the first half of 2021 reached $500 million, representing a 15% increase year-over-year[14]. - The company achieved revenue of 154.14 million yuan, a year-on-year increase of 77.60%, with domestic customer revenue reaching 22.66 million yuan, up 1,362%, accounting for 14.70% of total revenue[101]. - The net profit attributable to shareholders for the first half of 2021 was approximately ¥20.66 million, up 33.88% from ¥15.43 million in the previous year[24]. - The net profit after deducting non-recurring gains and losses was approximately ¥11.73 million, reflecting a 26.51% increase from ¥9.27 million in the previous year[24]. - The company's operating revenue for the first half of 2021 was approximately ¥154.14 million, representing a 77.60% increase compared to ¥86.79 million in the same period last year[23]. - The company reported a significant increase in user data, with a 25% growth in active users compared to the previous year[13]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in the first half of 2021, representing a year-over-year growth of 25%[169]. User Growth - User data showed an increase in active users, with the total number of users growing to 1.2 million, up 30% compared to the same period last year[1]. - User data showed a growth in active users, reaching 10 million, which is a 15% increase compared to the previous period[169]. Future Outlook - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 30% based on current market trends and product demand[1]. - Future guidance indicates an expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[14]. - The company provided a positive outlook for the next quarter, projecting revenue growth of B% and an expected increase in user engagement metrics[160]. - The company plans to invest $50 million in R&D for the development of novel drug candidates over the next year[14]. - New product launches are expected to contribute an additional 300 million in revenue by the end of the year[169]. Market Expansion - The company is expanding its market presence, targeting international markets with a focus on North America and Europe, aiming for a 15% increase in market share by the end of 2022[1]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[14]. - Market expansion strategies include entering E new geographical markets, which are expected to contribute an additional F million in revenue[158]. - The company has plans to enter three new international markets by Q4 2021, aiming for a 10% market share in each[169]. Research and Development - New product development efforts have led to the successful launch of three new drug candidates, which are expected to enter clinical trials by Q4 2021[1]. - The company is investing in new technologies, with a budget of RMB 100 million dedicated to R&D for innovative drug delivery systems[1]. - The company has initiated the development of new mRNA-based therapeutics, aiming to enter clinical trials by Q4 2022[14]. - The company plans to invest heavily in R&D, with a budget allocation of 200 million for new technologies and product development[169]. - The company has approximately 20 internal new drug projects, with 4 projects having received clinical trial approval and currently in different stages of clinical and preclinical trials[32]. Acquisitions and Partnerships - Strategic acquisitions are being considered to enhance the company's research capabilities, with a budget of RMB 200 million allocated for potential mergers and acquisitions in 2021[1]. - A strategic acquisition of a biotech firm was completed, enhancing the company's capabilities in drug discovery and development[14]. - The acquisition of Vernalis (R&D) has positioned the company as a leader in FBDD/SBDD technology, with over 20 years of experience in drug discovery[48]. - The company has established partnerships with leading research institutions to bolster its drug development pipeline, aiming to accelerate time-to-market for new therapies[1]. Risk Management - The management highlighted the importance of risk management strategies in navigating potential market fluctuations and regulatory changes[1]. - The company faces risks related to technology substitution in drug screening methods and the potential for new drug development failures due to the innovative nature of its projects[110]. - The company faces risks related to high customer concentration, which could adversely affect business operations and financial conditions if major clients experience difficulties[112]. Compliance and Governance - The board of directors emphasized the commitment to maintaining transparency and accuracy in financial reporting, ensuring compliance with regulatory standards[1]. - The company has committed to maintaining transparency and accountability in its operations, adhering to all relevant regulations[169]. - The company has not reported any significant violations or penalties against the company or its executives during the period[169]. Environmental Responsibility - The company has established a comprehensive environmental protection system to ensure compliance with regulations during its operations[136]. - The company implemented energy-saving measures, including regulating air conditioning temperatures to reduce electricity consumption[139]. - The company committed to using eco-friendly materials and promoting the use of reusable materials and packaging[139].

Financial Performance - Operating revenue rose by 56.79% to CNY 69,164,316.00 year-on-year[5] - Net profit attributable to shareholders decreased by 33.85% to CNY 5,781,934.11 compared to the same period last year[5] - Basic earnings per share dropped by 50.00% to CNY 0.01 compared to the previous year[5] - Net profit increased by 61.99% to CNY 5,781,934.11 compared to the same period last year, despite the negative impact from the integration of two new UK subsidiaries[15] - Comprehensive income for Q1 2021 totaled CNY 11,129,768.46, compared to CNY 8,364,450.33 in Q1 2020, reflecting an increase of 32.9%[25] - Net profit for Q1 2021 was CNY 5,781,934.11, a decrease of 33.5% from CNY 8,740,267.66 in Q1 2020[25] Cash Flow - The net cash flow from operating activities was CNY 14,094,598.87, a significant improvement from a negative cash flow of CNY -1,897,162.63 in the previous year[5] - Cash flow from operating activities reached CNY 14,094,598.87, a significant improvement from a negative cash flow of CNY -1,897,162.63 in Q1 2020[15] - Cash flow from financing activities improved to CNY -745,785.04 from CNY -5,224,241.78 in Q1 2020, reflecting reduced IPO-related payments[15] Assets and Liabilities - Total assets increased by 2.89% to CNY 1,695,639,358.72 compared to the end of the previous year[5] - The total assets as of March 31, 2021, amounted to CNY 1,695,639,358.72, up from CNY 1,648,005,753.49 at the end of 2020[18] - The total liabilities increased to CNY 407,695,135.23 from CNY 370,075,489.20 at the end of 2020[18] - The company's deferred tax assets decreased by 61.59% to RMB 1,414,997.46, mainly due to profits in Q1 2021 offsetting previously recognized losses[13] - The accounts payable increased by 56.06% to RMB 14,609,507.20, primarily due to increased technical service fees owed by Vernalis[13] Shareholder Information - The total number of shareholders at the end of the reporting period was 7,696[10] - The top shareholder, JIN LI, holds 20.43% of the shares, totaling 81,876,948 shares[11] Research and Development - R&D investment as a percentage of operating revenue decreased by 30.09 percentage points to 20.63%[5] - Research and development expenses decreased by 36.22% to RMB 14,270,243.49, reflecting a shift in focus away from self-developed projects[14] - Research and development expenses for Q1 2021 were CNY 14,270,243.49, down 36.3% from CNY 22,375,778.77 in Q1 2020[24] Operating Costs - Operating costs surged to RMB 35,783,045.16, a 322.85% increase from RMB 8,462,383.89 in the previous year, attributed to a shift towards commercial projects and lower gross margins from Vernalis[14] - Total operating costs for Q1 2021 were CNY 68,611,515.30, up 96.7% from CNY 34,858,761.09 in Q1 2020[24] Other Income and Expenses - Non-recurring gains and losses totaled CNY 2,928,158.85 for the period[9] - The company recognized other income of RMB 3,054,359.81, an 85.87% increase, mainly due to government subsidies received by Vernalis during the reporting period[14] - The financial expenses for Q1 2021 showed a notable increase in interest expenses, which reached RMB 896,516.99, a 506.13% rise compared to RMB 147,907.32 in the previous year[14] Equity - The company's equity attributable to shareholders rose to CNY 1,287,944,223.49, compared to CNY 1,277,930,264.29 at the end of 2020[18]

Financial Performance - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2020, representing a year-over-year increase of 20%[12]. - The company's operating revenue for 2020 was ¥243.6 million, a decrease of 7.80% compared to ¥264.2 million in 2019[23]. - The net profit attributable to shareholders for 2020 was ¥64.0 million, down 46.77% from ¥120.3 million in 2019[23]. - The net cash flow from operating activities was ¥1.6 million, a significant decline of 99.06% compared to ¥168.3 million in 2019[23]. - The company achieved revenue of ¥243,600,479.33, a year-on-year decrease of 7.80% due to the impact of the COVID-19 pandemic[110]. - The net profit attributable to shareholders was CNY 64,023,167.70, down 46.77% year-on-year[133]. - Revenue from the U.S. market decreased by 23.98% to CNY 162,861,701.45, with a gross margin reduction of 2.63 percentage points[137]. - Revenue from the China region reached ¥50,346,892.41, a year-on-year increase of 1,562.11%, accounting for 20.67% of total revenue[110]. Research and Development - The company invested RMB 200 million in R&D for new technologies, focusing on high-throughput screening and structure-based drug design[13]. - The company's R&D expenditure accounted for 41.00% of operating income, an increase of 6.38 percentage points compared to the previous year[25]. - The total R&D investment for the year was ¥99,874,213.34, representing a 9.20% increase from ¥91,461,692.47 in the previous year[91]. - The company has a total of 383 R&D personnel, with 38.64% holding bachelor's degrees and 22.98% holding doctoral degrees[98]. - The company is focused on expanding its product pipeline and enhancing its research capabilities in drug development[22]. - The company has developed a comprehensive drug optimization platform that spans from target gene identification to clinical trial application, integrating multiple technical disciplines[73]. - The company is actively developing nucleic acid drugs, focusing on tumor and autoimmune indications, leveraging its expertise in nucleic acid chemistry[74]. Market Expansion and Strategy - The company is expanding its market presence in Europe, targeting a 30% increase in market share by the end of 2021[12]. - The company provided guidance for 2021, expecting revenue growth of 25% to reach approximately RMB 1.875 billion[12]. - The company plans to expand its marketing service network domestically and internationally to support steady revenue growth[171]. - The company aims to become a global "seed bank" for innovative drugs and a new engine for drug creation, with operations spanning North America, Europe, Asia, and Australia[36]. - The company plans to implement a new strategy for enhancing its intellectual property portfolio, aiming for a 40% increase in patent filings by the end of 2021[13]. Acquisitions and Collaborations - A strategic acquisition of a biotechnology firm was completed, enhancing the company's capabilities in drug development and research[12]. - The company completed the acquisition of Vernalis, a leader in fragment-based drug discovery and design technology, enhancing its drug discovery capabilities[35]. - The company acquired 100% equity of Vernalis for $26,650,459 (approximately RMB 173,045,462.94) on October 11, 2020, completing the transaction by December 2, 2020[100]. - The company has formed deep collaborations with several biopharmaceutical companies and academic partners, enhancing its drug development capabilities[71]. Risks and Challenges - The company emphasizes the importance of investor caution regarding investment risks[6]. - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section[4]. - The company is exposed to risks of new drug development failures, particularly due to the focus on new targets and mechanisms[126]. - The ongoing COVID-19 pandemic poses a risk to the company's main business operations due to potential restrictions on client activities[130]. - The company faces risks from U.S.-China trade tensions and currency fluctuations, which could adversely affect its operations[131]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Deloitte Huayong[5]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company does not have any special arrangements for corporate governance[8]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing[179]. - The company will report any changes in shareholding by its actual controllers and senior management during their tenure[181]. Dividend Policy - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares, totaling 20,034,000 yuan, which accounts for 31.29% of the net profit attributable to shareholders[5]. - The company has a cash dividend policy that protects the rights of minority investors and complies with relevant regulations[175]. - The profit distribution policy emphasizes a minimum annual cash dividend of 10% of the distributable profit for the first three years post-IPO, provided certain financial conditions are met[194].

Financial Performance - Operating revenue decreased by 19.06% to CNY 125,929,094.01 for the first nine months compared to the same period last year[6]. - Net profit attributable to shareholders decreased by 80.34% to CNY 14,609,816.84 for the first nine months compared to the same period last year[6]. - The weighted average return on net assets decreased by 15.82 percentage points to 1.59%[6]. - Basic earnings per share decreased by 80.95% to CNY 0.04[7]. - Other income fell by 69.39% to RMB 14,725,962.60, as there were no significant government grants in 2020 compared to the previous year[17]. - The net profit attributable to shareholders for the first three quarters of 2020 was RMB 14,609,816.84, a decrease of 80.34% compared to RMB 74,309,852.71 in the same period of 2019[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 82,255.94, down 99.75% from RMB 33,471,642.35 in the previous year[18]. - The company's operating revenue for the first three quarters of 2020 was RMB 125,929,100, a year-on-year decrease of 19.06% due to the impact of the global pandemic[18]. - The net profit for Q3 2020 was ¥2,305,880.94, compared to a net profit of ¥20,024,870.72 in Q3 2019, indicating a significant decline[35]. - The total profit for Q3 2020 was reported at -¥2,742,232.92, contrasting with a profit of ¥20,967,450.38 in Q3 2019[35]. Assets and Liabilities - Total assets increased by 106.07% to CNY 1,309,248,582.95 compared to the end of the previous year[6]. - Total liabilities decreased to RMB 83,397,570.68 from RMB 123,581,043.87 in the previous year[24]. - The total equity attributable to shareholders increased to RMB 1,225,851,012.27 from RMB 511,772,243.86 at the end of 2019[24]. - Total assets as of September 30, 2020, reached CNY 1,345,270,024.87, a significant increase from CNY 661,373,096.91 as of December 31, 2019[27]. - Total liabilities decreased to CNY 69,191,037.64 from CNY 109,804,355.96, indicating improved financial stability[28]. - The company's equity increased to CNY 1,276,078,987.23 from CNY 551,568,740.95, reflecting a strong capital position[28]. Cash Flow - The company reported a net cash flow from operating activities of CNY -39,985,974.19 for the first nine months, a decrease of 127.77% compared to the same period last year[6]. - Cash flow from operating activities for the first three quarters of 2020 was CNY 124,316,725.58, down 55.6% from CNY 279,979,552.98 in the same period of 2019[39]. - Net cash flow from operating activities was negative at CNY -39,985,974.19, contrasting with a positive CNY 143,996,728.00 in the prior year[39]. - Cash inflow from investment activities totaled CNY 936,525,126.13, a substantial increase from CNY 505,561,822.64 in the previous year[39]. - Cash outflow for investment activities was CNY 1,403,497,527.91, compared to CNY 575,917,339.50 in the same period last year[40]. - Net cash flow from investment activities was negative at CNY -466,972,401.78, worsening from CNY -70,355,516.86 in 2019[40]. - Cash flow from financing activities generated CNY 766,971,607.68, with a net cash flow of CNY 696,631,154.92 after outflows[40]. Research and Development - R&D expenses accounted for 59.46% of operating revenue, an increase of 21.9 percentage points compared to the previous year[7]. - Research and development expenses increased by 28.11% to RMB 74,873,400 in the first three quarters of 2020[18]. - R&D expenses for the first three quarters of 2020 totaled CNY 74,873,434.98, up 28.4% from CNY 58,443,094.96 in the same period of 2019[30]. - Research and development expenses increased to ¥26,272,231.73 in Q3 2020, up from ¥18,710,133.90 in Q3 2019, reflecting a 40% increase[35]. Shareholder Information - The total number of shareholders reached 7,763 by the end of the reporting period[12]. - The largest shareholder, LI.JIN, holds 20.43% of the shares, totaling 81,876,948 shares[12]. Inventory and Prepayments - Prepayments surged by 410.58% to RMB 14,457,675.81, primarily due to increased advance payments for materials and outsourced services[16]. - Inventory rose by 78.83% to RMB 23,413,236.77, attributed to higher raw material purchases[16]. - Inventory levels rose to CNY 23,413,236.77 from CNY 13,092,557.77, indicating increased production or stockpiling[26]. Compliance and Accounting Standards - The company implemented new revenue and leasing standards starting January 1, 2020, affecting the financial statements[47]. - The company is focused on adjusting financial reporting in compliance with new accounting standards, enhancing transparency and accuracy[47]. - The company adopted new revenue recognition standards starting January 1, 2020, impacting financial reporting[52]. - The company is committed to compliance with updated accounting standards as of 2020[52].

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 20%[1]. - The company's operating revenue for the first half of 2020 was ¥86,789,952.44, a decrease of 18.85% compared to ¥106,951,252.81 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2020 was ¥15,430,296.71, down 74.14% from ¥59,672,513.79 in the previous year[22]. - The net cash flow from operating activities was -¥28,180,575.74, a decline of 142.23% compared to ¥66,733,861.55 in the same period last year[22]. - The company's basic earnings per share for the first half of 2020 were ¥0.04, a decrease of 76.47% from ¥0.17 in the same period last year[23]. - The decline in revenue was primarily due to a decrease in screening income, impacted by global pandemic-related delays and laboratory closures[22]. - The company reported a significant increase in prepayments, which rose to RMB 8,594,689.38 from RMB 2,831,609.24, reflecting a growth of about 203.5%[168]. - The company reported a decrease in profit distribution amounting to CNY -50,085,000.00 for the current period[197]. Research and Development - New product development includes a pipeline of 5 innovative drugs currently in clinical trials, with expected market launch in 2021[1]. - The proportion of R&D investment to operating revenue increased by 18.94 percentage points to 53.59% from 34.65% in the previous year[23]. - The total R&D investment for the reporting period was ¥46,508,575.10, accounting for 53.59% of the total revenue[66]. - The company has developed over 20 new drug projects at different preclinical stages and successfully advanced the HDAC I/IIb project to clinical phase I[30]. - The company is focusing on early pharmacology research platforms, including in vivo and in vitro efficacy studies related to tumors and inflammation[61]. - The company is committed to increasing the success rate and efficiency of its innovative drug development through advanced platforms and methodologies[60][61]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[1]. - The company is enhancing its market presence in North America through a wholly-owned subsidiary dedicated to business promotion and client engagement[42]. - The company aims to become a global "seed bank" for innovative drugs and a new engine for drug creation, leveraging its core DEL technology[31]. - The company has a diverse client base, including multinational pharmaceutical companies, biotech firms, and some non-pharmaceutical entities, with a focus on expanding market reach[41]. Financial Position and Assets - The company's net assets attributable to shareholders increased by 139.30% to ¥1,224,685,285.12 from ¥511,772,243.86 at the end of the previous year[22]. - Total assets rose by 113.68% to ¥1,357,613,540.57 from ¥635,353,287.73 at the end of the previous year[22]. - Cash and cash equivalents increased by 166.84% compared to the beginning of the year, primarily due to funds raised from the initial public offering[72]. - The total liabilities as of June 30, 2020, were RMB 132,928,255.45, compared to RMB 123,581,043.87 at the end of 2019, showing a slight increase of about 2.2%[170]. Risks and Challenges - The company is facing potential risks related to regulatory changes, which could impact future product approvals[1]. - The company faced significant delays in receiving imported screening materials due to customs regulations and international flight suspensions[22]. - The company is exposed to foreign exchange risks, as a significant portion of its revenue is denominated in USD and EUR, making it vulnerable to fluctuations in the RMB exchange rate[89]. - The ongoing COVID-19 pandemic has caused delays in logistics and project execution, impacting the company's ability to deliver services on time[90]. Shareholder Commitments and Governance - The company commits to a 36-month lock-up period for shares held by controlling shareholder JIN LI, during which no transfers or management delegation of shares will occur[111]. - The company will report any changes in shareholdings by its directors and senior management during their tenure[116]. - The company guarantees to strictly fulfill all public commitments made during the issuance and listing process, and will take responsibility for any failures to do so[140]. - The controlling shareholder has pledged to ensure the company maintains independence in business, assets, finance, and personnel[139]. Operational Efficiency - The company has invested RMB 50 million in new technology for drug discovery, aiming to improve efficiency by 30%[1]. - The company reported a decrease in management expenses to ¥17,220,942.59 from ¥20,315,301.72 in the previous year, reflecting a cost control strategy[180]. - The company has established a fundraising management system to ensure effective use of raised funds for project construction[128]. - The company plans to optimize product and production processes to reduce operational costs and improve efficiency[128].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Management Statement](index=3&type=section&id=Item%201.1%20The%20Company%27s%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Guarantee%20the%20Truthfulness%2C%20Accuracy%2C%20and%20Completeness%20of%20the%20Quarterly%20Report%20Content) The company's management guarantees the truthfulness and completeness of this unaudited quarterly report, assuming full legal responsibility - The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report[5](index=5&type=chunk) - This company's Q1 2020 report is unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) [Key Financial Data](index=3&type=section&id=Item%202.1%20Key%20Financial%20Data) Q1 2020 saw significant declines in revenue and net profit, with operating cash flow turning negative, despite an increase in R&D investment as a percentage of revenue Key Financial Indicators for Q1 2020 | Indicator | Current Reporting Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 44,112,298.63 | 50,753,027.36 | -13.08% | | Net Profit Attributable to Listed Company Shareholders (Yuan) | 8,740,267.66 | 44,423,346.20 | -80.33% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) (Yuan) | 7,322,862.37 | 8,661,384.83 | -15.45% | | Net Cash Flow from Operating Activities (Yuan) | -1,897,162.63 | 44,898,574.81 | -104.23% | | Basic Earnings Per Share (Yuan/Share) | 0.02 | 0.12 | -80.33% | | Weighted Average Return on Net Assets (%) | 1.69% | 10.79% | Decreased by 9.10 percentage points | | R&D Investment as % of Operating Revenue (%) | 50.72% | 37.16% | Increased by 13.56 percentage points | - Total non-recurring gains and losses for the period amounted to **1.42 million yuan**, primarily comprising **1.64 million yuan** in government subsidies[8](index=8&type=chunk)[9](index=9&type=chunk) [Shareholder Holdings](index=5&type=section&id=Item%202.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Shareholders%20with%20Non-Restricted%20Shares%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the reporting period end, the company had 13 shareholders, with the top ten holding significant restricted stakes, led by JIN LI (Li Jin) - As of the end of the reporting period, the company had **13 shareholders**[11](index=11&type=chunk) Top Five Shareholder Holdings | Shareholder Name | Number of Shares Held (Shares) | Proportion (%) | | :--- | :--- | :--- | | JIN LI (Li Jin) | 81,876,948 | 22.744 | | Lhasa Economic and Technological Development Zone Huabo Medical Devices Co., Ltd. | 59,153,274 | 16.431 | | Chengdu Juzhi Kechuang Biotechnology Partnership (Limited Partnership) | 38,651,163 | 10.737 | | Lhasa Economic and Technological Development Zone Dongfang Jiayu Investment Partnership (Limited Partnership) | 37,667,721 | 10.463 | | Shenzhen Juntian Investment Enterprise (Limited Partnership) | 24,059,859 | 6.683 | - Shareholder JIN LI (Li Jin) and Chengdu Juzhi Kechuang Biotechnology Partnership (Limited Partnership) are parties acting in concert[13](index=13&type=chunk) [Significant Events](index=7&type=section&id=Item%20III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Items](index=7&type=section&id=Item%203.1%20Significant%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20of%20the%20Company) Significant changes in financial items include increased receivables and inventory, negative finance expenses due to exchange rates, sharp declines in other income and sales expenses, and a 104% drop in operating cash flow Changes and Reasons for Key Accounting Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | **Balance Sheet** | | | | Other Receivables | 67% | Primarily due to IPO issuance expenses advanced by the company using its own funds | | Inventory | 41% | Primarily due to increased raw material procurement | | **Income Statement** | | | | Selling Expenses | -31% | Primarily due to decreased market expansion and legal service fees caused by the global pandemic | | Finance Expenses | -260% | Primarily due to fluctuations in the RMB to USD exchange rate | | Other Income | -96% | Primarily due to the absence of significant one-time operating-related government subsidies in this period | | **Cash Flow Statement** | | | | Net Cash Flow from Operating Activities | -104% | Primarily due to the absence of significant one-time operating-related government subsidies and increased raw material procurement in this period | [Progress of Significant Events](index=8&type=section&id=Item%203.2%20Analysis%20and%20Explanation%20of%20the%20Progress%2C%20Impact%2C%20and%20Solutions%20of%20Significant%20Events) The company had no significant events requiring disclosure during the reporting period - Not applicable[14](index=14&type=chunk) [Performance Forecast and Warning](index=9&type=section&id=Item%203.4%20Warning%20and%20Explanation%20of%20Reasons%20for%20Potential%20Cumulative%20Net%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 performance forecasts or warnings regarding cumulative net profit - Not applicable[15](index=15&type=chunk) [Appendix](index=9&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=9&type=section&id=Item%204.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2020, serving as the source for all reported financial data [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, total assets were 634.17 million yuan, total liabilities 113.08 million yuan, and parent company equity 521.09 million yuan Key Items from Consolidated Balance Sheet (March 31, 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 634,167,874.02 | | Total Liabilities | 113,076,032.51 | | Total Equity Attributable to Parent Company Owners | 521,091,841.51 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) Q1 2020 saw total operating revenue of 44.11 million yuan, with R&D expenses exceeding 50% of revenue, leading to a net profit of 8.74 million yuan Key Items from Consolidated Income Statement (Q1 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 44,112,298.63 | | Total Operating Costs | 34,858,761.09 | | Including: R&D Expenses | 22,375,778.77 | | Total Profit | 10,921,073.17 | | Net Profit | 8,740,267.66 | [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2020 operating cash flow was -1.90 million yuan, with significant outflows from investing and financing activities, and period-end cash balance of 297.10 million yuan Key Items from Consolidated Cash Flow Statement (Q1 2020) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -1,897,162.63 | | Net Cash Flow from Investing Activities | -33,424,459.92 | | Net Cash Flow from Financing Activities | -5,224,241.78 | | Cash and Cash Equivalents at Period End | 297,098,724.92 | [Changes and Adjustments to Accounting Standards](index=21&type=section&id=Item%204.2%20Information%20on%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Implementation%20of%20New%20Revenue%20Recognition%20Standards%20and%20New%20Lease%20Standards%20from%202020) The company adopted new revenue recognition standards from January 1, 2020, reclassifying certain balance sheet items without impacting net assets or net profit - The company adopted new revenue recognition standards from January 1, 2020, adjusting financial statement items at the beginning of 2020 based on cumulative impact, without adjusting comparable period data[36](index=36&type=chunk)[41](index=41&type=chunk) Key Consolidated Balance Sheet Adjustment Items (January 1, 2020) | Item | Before Adjustment (Yuan) | Adjustment Amount (Yuan) | After Adjustment (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 33,108,079.00 | -5,658,736.70 | 27,449,342.30 | | Contract Assets | 0 | 5,658,736.70 | 5,658,736.70 | | Prepayments | 35,269,606.50 | -35,269,606.50 | 0 | | Contract Liabilities | 0 | 35,269,606.50 | 35,269,606.50 |