Financial Performance - The company's operating revenue for 2020 increased by 66.15% compared to the previous year, reaching approximately ¥843.23 million, driven by the recovery of the downstream pig farming industry and market expansion [25]. - Net profit attributable to shareholders increased by 84.55% year-on-year, amounting to approximately ¥447.80 million, while the net profit after deducting non-recurring gains and losses rose by 108.07% to approximately ¥431.20 million [25]. - The net cash flow from operating activities surged by 158.34% year-on-year, totaling approximately ¥400.14 million, due to a significant increase in cash received from sales [25]. - Total assets grew by 126.83% year-on-year, reaching approximately ¥3.11 billion, while net assets attributable to shareholders increased by 142.05% to approximately ¥2.71 billion, primarily due to the issuance of 105 million new shares in 2020 [25]. - Basic earnings per share rose by 73.13% year-on-year to ¥1.16, attributed to a 29.17% increase in share capital and a substantial rise in net profit [26]. - The company achieved operating revenue of 843.23 million yuan, a year-on-year increase of 66.15%, and a net profit attributable to the parent company of 447.80 million yuan, up 84.55% year-on-year [146]. R&D and Innovation - The company invested over 150 million yuan in R&D over the past three years, with 50 ongoing projects in 2020, including significant progress on the "Pig δ Coronavirus Inactivated Vaccine (CHN-HN-2014 strain)" [86]. - The total R&D expenditure for 2020 was approximately 59 million yuan, representing a 24.73% increase from the previous year, with R&D expenses accounting for 7.01% of operating revenue [90]. - The company has established a comprehensive industrial chain for veterinary biological products, covering R&D, production, sales, and animal epidemic prevention technology services [86]. - The company has established multiple core technology platforms, including pathogen and epidemiology research, gene editing, and high-efficiency expression technology, enhancing its R&D capabilities over the past 20 years [77]. - The company is focusing on developing multivalent vaccines to improve immunization efficiency and reduce the number of vaccinations required [76]. - The company has made advancements in modern biotechnology vaccines, with a growing number of vaccines developed using gene engineering and cell engineering techniques [72]. Market Position and Strategy - The company ranks second in the non-mandatory immunization veterinary biological products market and first in the non-mandatory immunization pig biological products market as of 2019 [67]. - The company has maintained a leading position in the pig pseudorabies vaccine market for four consecutive years, with a market share of 16% [68]. - The company has a strong market presence and innovation capability, which supports its continuous and stable profitability [46]. - The company aims to build a "Chinese animal vaccine national brand" and improve its market risk resistance through strategic management and product structure optimization [146]. - The marketing strategy employs a "direct sales + distribution" model, effectively expanding the marketing service radius and enhancing market influence [137]. Risks and Challenges - The company faces risks related to the loss of technical talent, which could impact its R&D capabilities and continuous profitability [156]. - The ongoing African swine fever epidemic poses a risk to the company’s performance, as approximately 95% of its revenue comes from pig vaccines [163]. - The company is exposed to operational risks due to the need for administrative licenses and product approval numbers, which must be renewed every five years [157]. - The company's market position is threatened by increasing competition from both domestic and international firms in the veterinary biological products sector [161]. Corporate Governance and Transparency - The company received a standard unqualified audit report from its accounting firm, ensuring the accuracy and completeness of the financial report [6]. - The company has a commitment to transparency, with all board members present at the board meeting to ensure the integrity of the annual report [5]. - The company has established a clear communication channel for investors through designated representatives and contact information [19]. Production and Supply Chain - The company has a comprehensive procurement management system to ensure the stability and reliability of its supply chain, focusing on key raw materials such as serum and adjuvants [47]. - The production model combines "sales-driven production + safety stock," ensuring production plans align with sales targets and seasonal disease prevention needs [48]. - The company has established a specialized diagnostic center to provide professional animal epidemic prevention technical services, enhancing customer loyalty and enabling timely adjustments to research and production strategies [142].

Financial Performance - Net profit attributable to shareholders reached ¥319,739,673.87, up 67.48% year-on-year[18] - Operating income for the first nine months was ¥604,280,090.12, reflecting a 55.37% increase from the same period last year[18] - Basic earnings per share rose to ¥0.87, representing a 64.15% increase compared to the previous year[20] - The weighted average return on equity improved to 23.97%, an increase of 4.32 percentage points[20] - The company reported a net profit of ¥884,011,265.56 for the first three quarters of 2020, compared to ¥566,649,076.25 in the same period of 2019, representing an increase of approximately 55.9%[51] - Net profit for the first three quarters of 2020 reached CNY 135.45 million, up from CNY 35.61 million in 2019, indicating a growth of approximately 280%[64] Cash Flow - Net cash flow from operating activities increased by 183.09% to ¥358,922,241.68[18] - Cash flow from operating activities for the first three quarters of 2020 was CNY 632.25 million, compared to CNY 383.91 million in 2019, showing an increase of approximately 65%[66] - Cash inflow from financing activities amounted to $1.19 billion, with a net cash flow of $1.19 billion, contrasting with a net outflow of $85.75 million last year[73] Assets and Liabilities - Total assets increased to ¥3,024,316,354.94, a growth of 120.52% compared to the end of the previous year[18] - The total liabilities of the company as of September 30, 2020, are ¥443,862,520.99, compared to ¥252,477,161.39 in the previous year[43] - The company reported a total equity of ¥2,580,453,833.95 as of September 30, 2020, up from ¥1,118,981,322.58 in the previous year[43] - The total liabilities amounted to CNY 251,480,188.10, with current liabilities at CNY 206,309,286.51[86] Shareholder Information - The company reported a total of 19,550 shareholders at the end of the reporting period[22] - Major shareholder Wuhan Huazhong Agricultural Assets Management Co., Ltd. held 16.78% of shares, totaling 78,004,310 shares[22] Research and Development - Research and development expenses accounted for 6.75% of operating income, down 2.49 percentage points from the previous year[20] - The company obtained 32 new veterinary drug registration certificates, including 27 in collaboration with Huazhong Agricultural University[30] - The company is in the process of developing multiple new vaccines and diagnostic kits, with several projects in the new veterinary drug registration review stage[32] Revenue Growth - Total revenue for Q3 2020 reached ¥249,168,813.90, a significant increase from ¥102,222,090.40 in Q3 2019, representing a growth of approximately 144.3%[52] - The company reported a total revenue of CNY 612.02 million from sales and services in the first three quarters of 2020, compared to CNY 362.25 million in 2019, marking an increase of approximately 69%[66] Investment Activities - Total cash flow from investment activities resulted in a net outflow of CNY 745.80 million in 2020, compared to a net inflow of CNY 7.12 million in 2019[70] - The company has invested a total of ¥2,841,584.56 in the inactivated vaccine for Duck Tembusu virus (DF2 strain) and is currently in the new veterinary drug registration review stage[32] Market Expansion Plans - The company plans to continue expanding its market presence and investing in new product development to sustain growth in the upcoming quarters[61] - The company has plans for market expansion and new product development, although specific figures were not disclosed in the report[86]