Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.40 per 10 shares, totaling RMB 44,865,984.00, which represents 69.17% of the net profit attributable to shareholders for the year[6]. - The total share capital of the company is 186,941,600 shares, and the proposed dividend distribution is subject to approval at the shareholders' meeting[5]. - The company distributed cash dividends of RMB 2.40 per 10 shares, totaling RMB 44,865,984.00 (including tax) on October 19, 2020[164]. - In 2020, the cash dividend accounted for 69.17% of the net profit attributable to ordinary shareholders, amounting to RMB 89,731,968.00[166]. - The company plans to maintain a minimum cash dividend ratio of 80% for mature stages without significant capital expenditure, and 40% if there are major expenditures[162]. - The board of directors is required to consider the timing, conditions, and minimum ratio for cash dividends, ensuring independent directors fulfill their responsibilities[163]. - The company has a policy to prioritize cash dividends over stock dividends when conditions allow[162]. - The cash dividend policy must comply with the company's articles of association and shareholder resolutions[163]. - The company has not proposed a cash profit distribution plan during the reporting period despite having positive distributable profits[167]. - The company will actively communicate with minority shareholders regarding cash dividend proposals to ensure their opinions are considered[163]. Financial Performance - The company's operating revenue for 2020 was ¥565,973,500.28, representing a 4.32% increase compared to ¥542,519,478.27 in 2019[21]. - The net profit attributable to shareholders for 2020 was ¥129,717,585.18, which is a 14.88% increase from ¥112,914,539.88 in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥114,098,834.10, up by 3.72% from ¥110,007,550.42 in 2019[21]. - The net cash flow from operating activities for 2020 was ¥117,363,183.77, reflecting a 1.66% increase from ¥115,448,696.06 in 2019[21]. - The total assets of the company reached CNY 1,747.2643 million, with net assets of CNY 1,576.3422 million by the end of 2020[84]. - The gross profit margin for the pharmaceutical manufacturing segment was 88.89%, an increase of 0.67 percentage points compared to the previous year[111]. - The revenue from Licorice Tablets was ¥443,060,314.62, with a gross margin of 93.27%, showing a 9.11% increase in revenue compared to the previous year[111]. - The company reported a decrease in financial expenses due to increased interest income from raised funds[125]. - The company achieved a systematic secondary development of the active pharmaceutical ingredient (API) for Licorice Tablets, improving the raw material content to over 99%[53]. Research and Development - The total R&D investment for the year was approximately ¥33.55 million, representing a 7.67% increase from the previous year, with R&D expenses accounting for 5.93% of total revenue[62]. - The company is actively pursuing various R&D projects, including clinical studies for the antidepressant JJH201501, supported by local government funding[60]. - The company has invested a total of RMB 11,705 million in research and development, with a current period investment of RMB 3,185 million[69]. - The number of R&D personnel has increased to 115, representing 12.60% of the total workforce, up from 11.62% in the previous period[71]. - The company is focusing on innovative drug development, supported by national policies that encourage pharmaceutical innovation and expedite drug approval processes[50]. - The company has developed a unique compound antihypertensive drug, Nigunol Tablets, which is included in the National Basic Medical Insurance Directory (2020) and recommended in multiple hypertension treatment guidelines[32]. - The company is advancing its new antidepressant JJH201501, which has shown significant efficacy and lower side effects compared to first-line treatments, currently in Phase II clinical trials[48]. - The new anti-tumor drug JJH201601 has demonstrated over 99% tumor suppression in preclinical studies, indicating strong potential for future development[48]. - The company has multiple new drugs in development, including JJH201501 (antidepressant) and JJH201601 (anticancer), among others[79]. Market and Competition - The global pharmaceutical market is projected to grow from $1.13 trillion in 2016 to $1.5 trillion in 2021, with a compound annual growth rate (CAGR) of 4% to 7% over five years[44]. - China's pharmaceutical market is expected to reach ¥2.1 trillion by 2023, outpacing global market growth[44]. - The company faces risks related to the potential for major product imitation or substitution, particularly concerning its key product, Likujun[94]. - There are risks associated with the clinical trial approval process for new drugs, which may not meet expectations or regulatory requirements[95][97]. - The company faces risks from intensified market competition, particularly from domestic leaders like Heng Rui Medicine and Yangtze River Pharmaceutical[102]. - There is a potential risk of price reductions due to national drug procurement policies, which could significantly impact revenue and profitability[105]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[7]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[8]. - The company does not have any special arrangements for corporate governance or significant matters that require disclosure[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity and completeness of the annual report[8]. - The company has strengthened its internal control systems and governance structures to enhance operational efficiency and risk management[91]. - The company commits to strictly adhere to relevant laws and regulations, ensuring fair decision-making in related party transactions[197]. - The company guarantees that it will not use related party relationships to illegally occupy company funds or assets[198]. Production and Quality Control - The company employs a "planned production" model, ensuring that production meets market demand while maintaining safety stock levels[40]. - All production processes comply with GMP certification, ensuring that products meet quality standards before reaching the market[40]. - The procurement strategy involves rigorous supplier evaluation and quality control to ensure the safety and quality of raw materials[39]. - The company has maintained stable production operations during the COVID-19 pandemic, effectively minimizing its impact on production and sales[85]. Shareholder Commitments and Restrictions - The controlling shareholder, Zhongtian Investment, committed to not transferring or managing shares for 36 months post-IPO, with a minimum selling price not lower than the issue price after the lock-up period[169]. - The actual controller and chairman, Geng Zhongyi, also pledged not to transfer shares for 36 months post-IPO, with similar conditions regarding the selling price and lock-up extensions[172]. - The company commits to not transferring or managing shares held prior to the IPO for 12 months post-listing, with an automatic extension of the lock-up period by at least 6 months if the stock price falls below the IPO price for 20 consecutive trading days[175]. - The company will not reduce shareholdings during investigations or legal proceedings related to securities violations[170]. - Any violations of these commitments will result in the company bearing all legal responsibilities[172]. - The company will ensure compliance with all relevant laws and regulations during the share repurchase process[185].

Financial Performance - Net profit attributable to shareholders increased by 6.33% year-over-year, amounting to CNY 78,821,896.76[6] - The company reported a significant increase in investment income, which rose by 929.25% to 2,731,196.59 RMB, primarily due to increased interest income from structured deposits[16] - The company reported a net cash flow from operating activities of 86,452,497.93 RMB, a 43.82% increase compared to the same period in 2019, mainly due to government subsidies related to assets[16] - The company’s net profit for the first three quarters of 2020 reached ¥78,099,968.15, compared to ¥75,416,494.97 in the same period of 2019, showing a growth of about 3.4%[38] - The total profit for Q3 2020 was ¥37,770,191.09, compared to ¥29,793,754.80 in Q3 2019, indicating a year-over-year increase of approximately 26.5%[37] Assets and Liabilities - Total assets increased by 189.76% year-over-year, reaching CNY 1,725,875,235.31[6] - Total liabilities reached CNY 200,443,944.90, up from CNY 125,158,317.20, showing an increase of about 60%[23] - The total assets as of Q3 2020 amounted to ¥1,730,301,751.55, compared to ¥592,720,170.48 in the previous year, showing a significant increase[28] - Total liabilities for Q3 2020 were ¥228,106,395.36, up from ¥144,647,259.63 in Q3 2019, which is an increase of about 57.7%[28] - The company's long-term deferred expenses rose by 104.53% to 4,580,040.69 RMB, driven by increased costs for technical renovations and drug re-registration fees[15] Shareholder Information - Net assets attributable to shareholders rose by 227.46% compared to the previous year, totaling CNY 1,518,587,187.58[6] - The total number of shareholders at the end of the reporting period was 12,444[11] - Shareholders' equity rose to CNY 1,525,431,290.41 from CNY 470,462,545.73, representing a growth of approximately 224%[24] - The total equity attributable to shareholders was ¥463,742,813.63[47] Revenue and Expenses - Operating income for the first nine months remained stable at CNY 402,963,858.69, showing a 0.00% change year-over-year[6] - Total operating revenue for Q3 2020 reached ¥159,892,223.39, an increase from ¥146,939,257.53 in Q3 2019, representing an increase of approximately 8.3%[31] - Total operating costs for Q3 2020 were ¥122,870,951.77, compared to ¥118,545,451.87 in Q3 2019, reflecting an increase of about 2.8%[31] - Research and development expenses accounted for 5.82% of operating income, up by 0.13 percentage points from the previous year[6] - Research and development expenses for Q3 2020 were ¥7,102,847.76, a decrease from ¥12,082,979.08 in Q3 2019, indicating a reduction of about 41.5%[32] Cash Flow - The net cash flow from operating activities for the third quarter of 2020 was CNY 86,452,497.93, up from CNY 60,112,002.08 in Q3 2019, representing a year-over-year increase of approximately 43%[40] - The company raised CNY 1,038,274,635.43 from financing activities in the first three quarters of 2020, with a net cash flow from financing activities of CNY 1,027,240,536.66, a significant improvement from negative cash flow in the previous year[43] - The ending cash and cash equivalents balance for the third quarter of 2020 was CNY 182,835,395.71, compared to CNY 116,546,566.95 at the end of Q3 2019, reflecting a year-over-year increase of approximately 56.7%[41] Changes in Financial Position - The weighted average return on equity decreased by 10.87 percentage points to 8.24%[6] - Basic earnings per share decreased by 7.55% to CNY 0.49[6] - The company has not indicated any significant changes in its profit forecast for the upcoming reporting period[18] - The company implemented a new revenue accounting standard starting January 1, 2020, affecting financial reporting[48]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately RMB 243.07 million, a decrease of 5.06% compared to RMB 256.02 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2020 was approximately RMB 45.50 million, down 6.27% from RMB 48.55 million in the previous year[21]. - The basic earnings per share for the first half of 2020 was RMB 0.31, a decrease of 11.43% compared to RMB 0.35 in the same period last year[21]. - The company's net assets attributable to shareholders increased by 229.95% to approximately RMB 1.53 billion from RMB 463.74 million at the end of the previous year[21]. - Total assets increased by 177.60% to approximately RMB 1.65 billion from RMB 595.62 million at the end of the previous year[21]. - The company's R&D investment as a percentage of operating revenue increased to 6.73%, up 2.50 percentage points from 4.23% in the same period last year[21]. - The net cash flow from operating activities for the first half of 2020 was approximately RMB 43.12 million, an increase of 2.77% compared to RMB 41.95 million in the previous year[21]. - The diluted earnings per share for the first half of 2020 was also RMB 0.31, reflecting the same decrease of 11.43% compared to the previous year[21]. - The company reported a net profit of approximately RMB 45.07 million after deducting non-recurring gains and losses, a decrease of 3.63% from RMB 46.77 million in the same period last year[21]. - The weighted average return on net assets decreased by 6.01 percentage points to 6.93% compared to 12.94% in the same period last year[21]. Corporate Governance - The board of directors confirmed that the financial report is true, accurate, and complete, ensuring accountability for any misrepresentation[5]. - The board meeting was attended by all directors, indicating a unified approach to governance[4]. - The company does not have any special arrangements for corporate governance[6]. - The company has a robust governance structure in place, enhancing internal control and risk management across key operational areas[78]. - The company has committed to addressing any potential conflicts of interest and related party transactions[98]. Risk Management - The report emphasizes the importance of risk factors in the company's operations, urging investors to be aware of potential investment risks[3]. - The company has outlined various risks faced during production and operations in the report[3]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors[6]. - The half-year report has not been audited, which may affect the reliability of the financial data presented[4]. - The company is facing risks from national drug procurement policies that may lead to significant price reductions for its main products[79]. - The company faces risks related to the approval of new drug applications, which may not meet expectations due to stringent regulatory requirements[83]. Research and Development - The company has established a comprehensive drug research and development system supported by a new drug R&D technology platform, focusing on compound formulations, deuterated drugs, and liposome drugs[32]. - The company has increased R&D investment, focusing on innovative drug development, including JJH201501 (an antidepressant) which is currently in Phase II clinical trials[75]. - The total R&D investment for the reporting period was ¥16,362,354.21, representing 6.73% of total revenue[52]. - The company has developed advanced liposome technology, significantly improving drug encapsulation rates and therapeutic efficacy[48][54]. - The company is focusing on expanding its R&D in antidepressants and antitumor drugs, with ongoing projects in various stages of development[49]. Product Portfolio - The company is a national high-tech enterprise specializing in drug research, production, and sales, focusing on innovative drugs for diseases such as depression, tumors, and gastric diseases[26]. - The main products include tablets, capsules, and eye drops, with key products being Likujun tablets and Niqunlor tablets, both included in the National Basic Medical Insurance Directory[27][28]. - Likujun tablets are the only product in the market for treating leukopenia and have been widely sold in thousands of hospitals across China[27]. - Niqunlor tablets are the first compound antihypertensive drug in China, recommended in multiple hypertension treatment guidelines, and are exclusively produced by the company[28]. - The company’s capsule products include Yipingfeng capsules and Yiganling capsules, both of which are included in the National Basic Medical Insurance Directory[30]. - The eye drop products include Gatifloxacin eye drops and Lomefloxacin hydrochloride eye drops, both of which are classified as national second-class new drugs[31]. Market and Financial Position - The global pharmaceutical market is projected to grow from $1.13 trillion in 2016 to $1.5 trillion by 2021, with a compound annual growth rate (CAGR) of 4% to 7%[39]. - By 2020, China's pharmaceutical market is expected to account for 11% of the global market, while the U.S. will hold 42%[39]. - The company reported a total revenue of 77,925,000 RMB for the first half of 2020, with a gross profit of 9,300,250 RMB, indicating a gross margin of approximately 11.94%[55]. - Cash and cash equivalents increased by 125.58% to 436,235,221 RMB as of June 30, 2020, primarily due to funds raised from the initial public offering[59]. - The company has established a comprehensive marketing network covering 16 regions and 56 offices, effectively reaching thousands of hospitals across the country[63]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of RMB 2.40 per 10 shares, totaling RMB 44,865,984.00 based on a total share capital of 186,941,600 shares[5]. - The company has committed to a profit distribution policy to protect shareholder interests, adhering to the regulations set forth in the "Three-Year Dividend Return Plan" after its IPO[122]. - The company has committed to not reducing its shareholdings during the lock-up period of 36 months post-IPO, during which major shareholders cannot transfer their shares[99]. Compliance and Legal Matters - The company has ensured compliance with all legal and regulatory requirements regarding shareholder meetings and resolutions[95]. - The company has maintained a good integrity status, fulfilling its duties diligently and honestly according to relevant laws and regulations[129]. - There are no significant litigation or arbitration matters reported during the reporting period[129]. - The financial statements were approved by the board on August 25, 2020, ensuring compliance with regulatory standards[199].