Financial Performance - Operating income surged by 111.12% to CNY 776,684,991.71 year-on-year[4] - Net profit attributable to shareholders rose by 41.05% to CNY 152,396,070.06 compared to the same period last year[4] - Basic earnings per share increased by 39.13% to CNY 0.32 compared to the previous year[4] - The diluted earnings per share also increased by 39.13% to CNY 0.32 compared to the same period last year[4] - The company reported a total comprehensive income of ¥146,780,617.07 for Q1 2021, compared to ¥106,631,501.44 in Q1 2020, an increase of 38%[23] - Net profit for Q1 2021 was ¥152,170,016.46, compared to ¥107,857,564.75 in Q1 2020, representing an increase of 41%[23] - Net profit for Q1 2021 reached RMB 190,018,097.99, compared to RMB 96,130,237.23 in Q1 2020, reflecting a 97.5% year-over-year growth[26] Assets and Liabilities - Total assets increased by 5.86% to CNY 6,052,083,651.60 compared to the end of the previous year[4] - Total current assets as of March 31, 2021, amounted to ¥3,611,908,426.03, a slight decrease from ¥3,663,573,835.42 in the previous year[16] - The company's total liabilities amounted to ¥876,111,216.19, up from ¥698,757,707.99, indicating an increase of approximately 25.5%[18] - Current liabilities decreased to ¥508,513,690.23 from ¥552,869,788.62, a decline of about 8.0%[18] - Total liabilities increased to ¥408,107,485.96 in Q1 2021 from ¥234,851,115.61 in Q1 2020, indicating a growth of 74%[21] - Total liabilities amounted to 698,757,707.99 RMB, a decrease of 65,272,309.62 RMB compared to the previous period[33] Cash Flow - Net cash flow from operating activities decreased by 56.16% to CNY 23,706,569.22 year-on-year[4] - The company reported a net cash flow from operating activities of RMB 23.71 million, down 56.16% from RMB 54.08 million in Q1 2020[12] - Cash flow from operating activities generated RMB 23,706,569.22 in Q1 2021, down from RMB 54,075,706.53 in Q1 2020[28] - The net cash flow from operating activities for Q1 2021 was -53,336,051.07 RMB, compared to 51,970,241.89 RMB in Q1 2020, indicating a significant decline[30] Research and Development - R&D expenditure as a percentage of operating income decreased by 2.84 percentage points to 5.01%[4] - Research and development expenses rose by 34.78% to RMB 38.94 million, driven by an increase in R&D personnel and related costs[12] - Research and development expenses for Q1 2021 were ¥38,941,793.02, compared to ¥28,891,796.36 in Q1 2020, marking a 35% increase[22] Shareholder Information - The total number of shareholders reached 26,024 by the end of the reporting period[7] - The largest shareholder, Huaxi Xinyu Investment Co., Ltd., holds 59.06% of the shares[7] Government Subsidies - The company reported a government subsidy of CNY 6,225,633.79 included in the current profit and loss[5] Operating Costs - The operating cost for Q1 2021 was RMB 165.47 million, reflecting a 96.37% increase from RMB 84.27 million in the same period last year[11] - Total operating costs for Q1 2021 were ¥592,233,529.05, up from ¥243,185,850.60 in Q1 2020, reflecting a 144% increase[22] - The total operating costs for Q1 2021 were RMB 156,759,746.43, up from RMB 91,696,361.58 in Q1 2020, indicating a 70.9% increase[25] Investments - The company completed the acquisition of 100% equity in Fost Biotech for RMB 290 million, with the share transfer registration completed on September 18, 2020[13] - The company’s investment income increased by 62.89% to RMB 10.02 million, attributed to returns from idle fund management[12] Employee Compensation - The company reported a significant increase in employee compensation payments, totaling 80,436,804.57 RMB in Q1 2021, compared to 49,621,529.75 RMB in Q1 2020[30]

Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of RMB 645,839,219.95, with a parent company net profit of RMB 633,338,532.60[6]. - The proposed cash dividend for 2020 is RMB 4.10 per 10 shares, totaling an expected distribution of RMB 196,800,000.00, which accounts for 30.47% of the net profit attributable to shareholders[6]. - The company's operating revenue for 2020 was approximately ¥2.63 billion, representing a year-on-year increase of 39.63% compared to ¥1.89 billion in 2019[23]. - Net profit attributable to shareholders for 2020 was approximately ¥645.84 million, a 10.29% increase from ¥585.61 million in 2019[23]. - The cash flow from operating activities for 2020 was approximately ¥705.12 million, showing a significant increase of 93.24% from ¥364.89 million in 2019[23]. - The company's total assets at the end of 2020 were approximately ¥5.72 billion, a 14.99% increase from ¥4.97 billion at the end of 2019[23]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥5.02 billion, a 10.32% increase from ¥4.55 billion at the end of 2019[23]. - The company reported a total of 500 million yuan in revenue from medical hyaluronic acid, with a growth of 119.51% compared to the previous year, establishing a leading position in the domestic market[75]. - The sodium hyaluronate injection (Hailida) generated 800 million yuan in revenue, reflecting a 139.98% increase, marking it as an advanced product in orthopedics[75]. - The HAFG-P product achieved 1 billion yuan in revenue, with a growth rate of 214.24%, positioning it as an internationally leading product in medical aesthetics[75]. - The company achieved a revenue of 2.633 billion RMB, a year-on-year increase of 39.63%, and a net profit attributable to shareholders of 646 million RMB, up 10.29% year-on-year[97]. Research and Development - R&D investment totaled RMB 141.16 million, a 50.35% increase from RMB 93.89 million in the previous year, representing 5.36% of operating revenue[71][72]. - The company is conducting 123 R&D projects focused on green manufacturing of bioactive substances and applications in various medical and cosmetic fields[73]. - The company has applied for 341 patents as of December 31, 2020, with 85 patents authorized, including 45 Chinese invention patents and 4 foreign invention patents[61]. - The company has established four independent R&D platforms, focusing on microbial fermentation and cross-linking technologies, which are crucial for production efficiency and product quality[49]. - The company has over 120 ongoing R&D projects, focusing on core technologies and new product development in the hyaluronic acid field[179]. - The company’s R&D personnel count reached 377, with expertise across various interdisciplinary fields, supporting its innovation strategy[178]. - The company has established two major R&D centers in Jinan and Shanghai, enhancing its capabilities in fermentation, drug formulation, and biomedical engineering[178]. - The company is actively pursuing research and development initiatives to enhance the performance of its existing product portfolio and explore new market opportunities[171]. Product Development and Innovation - The company launched two new cosmetic-grade raw materials: ultra-high molecular weight sodium polyglutamate and superactive ergothioneine[32]. - The company has developed a series of functional skincare brands targeting different demographics, utilizing B.F.S. technology to produce sterile, small-packaged raw liquid products, enhancing product safety[47]. - The company has developed a series of cross-linked hyaluronic acid soft tissue fillers, with 3 products receiving NMPA approval in the first half of 2020[66]. - The company has developed a series of functional skincare products targeting sensitive skin and other issues, achieving breakthroughs in special efficacy products, with 5 special cosmetic registration certificates obtained[55]. - The company is focusing on expanding its product portfolio with innovative formulations, including a new oral liquid product expected to generate 300 million yuan in revenue[75]. - The company is advancing the development of probiotics instant powder, with a production scale of 250 million units and a revenue of 76.05 million, indicating a 130.65% growth rate[77]. - The company is focusing on the development of cross-linked sodium hyaluronate injection, with a production scale of 1,200 million units and a revenue of 85.62 million, indicating a growth rate of 129.74%[77]. - The company has successfully registered a new medical device, the cross-linked sodium hyaluronate injection, with a production scale of 260 million units and a revenue of 95.32 million, marking it as a domestic advanced product[78]. Market Expansion and Strategy - The company plans to continue expanding its market presence and enhancing brand recognition to drive future growth[25]. - The company plans to expand into personal consumer goods sectors such as food, maternal and child care, and daily consumer products, aiming to build a diverse product matrix[99]. - The company aims to enhance its market presence through strategic product development and technological advancements, ensuring a competitive edge in the industry[75]. - The company has established stable distribution channels in over 40 countries, with more than 2,000 global customers, and has maintained long-term partnerships with clients for over 15 years in some regions[91]. - The company has achieved a 13.13% rapid growth in overseas revenue despite the global pandemic, enhancing its brand influence internationally[93]. - The company is focusing on expanding its market presence through innovative product offerings and strategic partnerships in the functional skincare segment[185]. Risk Management - The company emphasizes that forward-looking statements in the report do not constitute commitments to investors, highlighting investment risks[7]. - The company faces risks related to new product development, including potential failures due to high costs or slow progress, which could impact market competitiveness[120]. - New product registration risks exist, as medical products must undergo rigorous approval processes, and delays could hinder market entry[121]. - The company is at risk of technological obsolescence if it fails to adapt to revolutionary new technologies in the biopharmaceutical sector[122]. - The company emphasizes the importance of retaining core technical personnel to maintain its competitive edge and ensure stable operations[124]. - The company is exposed to risks from improper promotion or misuse of its products by downstream customers, which could harm its brand reputation[129]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm, Deloitte[5]. - The company’s financial report is confirmed to be true, accurate, and complete by its responsible persons[6]. - The company has established a comprehensive quality management system certified by ISO standards and has high-standard production lines compliant with international regulations[88]. - The company has obtained 7 domestic registration qualifications and 23 international registration qualifications, including in the EU, the US, South Korea, Canada, Japan, Russia, and India[53]. - The company has achieved HALAL certification for its hyaluronic acid products and COSMOS certification for its mushroom extract product during the reporting period[181]. Operational Efficiency - The company primarily adopts a sales-driven production model, preparing safety stock based on market forecasts, with most products produced in-house and a small portion of skincare products outsourced[37]. - The company has a strict supplier management system, conducting annual evaluations of qualified suppliers to ensure material quality and timely delivery[35]. - The company’s production processes adhere to strict quality management systems, including GMP for pharmaceuticals and ISO22716 for functional skincare products, ensuring product safety and reliability[37]. - The company has established a joint venture with Guangdong Zhongxiang Future Network Technology Co., Ltd., holding a 51% stake in the new entity[196]. Marketing and Brand Development - The company’s advertising expenses totaled 125 million CNY, reflecting strategic brand investments to enhance brand recognition[102]. - The "润百颜" brand generated revenue of 565 million RMB, up 65.29% year-on-year, while the "夸迪" brand saw revenue soar by 513.29% to 391 million RMB[107]. - The company launched the "娃娃针" product in the second half of 2020, featuring micro-crosslinking technology and lidocaine sustained-release technology, which has strong market competitiveness[106]. - The company opened the world's first "Hyaluronic Acid Museum" in June 2020, showcasing the strength of the hyaluronic acid industry and promoting its cultural significance[116].

Financial Performance - Operating income for the first nine months rose by 23.96% to CNY 1,596,437,349.97 year-on-year[5] - Net profit attributable to shareholders increased by 5.12% to CNY 437,565,648.99 compared to the same period last year[5] - Net cash flow from operating activities surged by 84.29% to CNY 381,319,230.93 year-to-date[5] - Total operating revenue for Q3 2020 reached ¥649,160,397.14, a 35.7% increase from ¥478,549,257.07 in Q3 2019[26] - Net profit for Q3 2020 was ¥170,421,327.08, up 12.5% from ¥150,920,125.91 in Q3 2019[27] - Total comprehensive income for the first nine months of 2020 was ¥456.17 million, compared to ¥405.75 million in the same period of 2019, marking a 12.4% increase[32] Assets and Liabilities - Total assets increased by 6.75% to CNY 5,307,334,724.12 compared to the end of the previous year[5] - The company’s total assets as of September 30, 2020, amounted to ¥3,654,311,560.54, a slight decrease from ¥3,770,683,144.66 as of December 31, 2019[21] - Total liabilities increased to ¥492,275,717.01 from ¥422,105,730.03, representing a growth of about 16.6%[23] - Current liabilities decreased to ¥345,267,972.04 from ¥365,695,722.26, a reduction of approximately 5.88%[22] - Non-current assets totaled ¥961,202,769.76, including long-term equity investments of ¥695,182,456.85 and fixed assets of ¥109,852,500.96[43] Cash Flow - Cash flow from operating activities for the first nine months of 2020 was ¥1.88 billion, compared to ¥1.33 billion in the same period of 2019, indicating a growth of 41.4%[33] - The net cash flow from operating activities for the first three quarters of 2020 was ¥307,182,223.59, compared to ¥91,441,801.13 in the same period of 2019, representing a significant increase[36] - Total cash inflow from operating activities reached ¥1,102,299,211.09, up from ¥788,479,061.11 year-over-year, indicating a growth of approximately 40%[35] - The net cash flow from investment activities was -¥699,144,062.39, worsening from -¥238,706,164.17 in the same period last year[36] Research and Development - R&D expenditure as a percentage of operating income increased by 1.68 percentage points to 5.98%[7] - Research and development expenses rose by 72.65% to ¥95,517,491.18, driven by an increase in R&D personnel and project development costs[15] - Research and development expenses for Q3 2020 amounted to ¥35,808,951.34, a significant increase from ¥17,869,651.66 in Q3 2019[26] Shareholder Information - The total number of shareholders at the end of the reporting period was 12,818[10] - The largest shareholder, Huaxi Xinyu Investment Co., Ltd., holds 59.06% of the shares[10] - Shareholders' equity rose to ¥4,815,059,007.11, compared to ¥4,549,554,137.63, an increase of approximately 5.85%[23] Other Income and Expenses - Government subsidies recognized in the current period amounted to CNY 24,183,107.10[8] - The company reported a significant increase of 362.68% in other income to ¥51,168,877.60, primarily due to increased government subsidies received during the period[15] - The company’s financial expenses included interest payments of ¥7.93 million in Q3 2020, compared to a negative interest expense of -¥11.04 million in Q3 2019[30]