Financial Performance - The company's operating revenue for the first half of 2022 was ¥680,298,823.07, a decrease of 7.27% compared to ¥733,613,734.30 in the same period last year[21]. - The net profit attributable to shareholders was a loss of ¥18,614,878.56, representing a decline of 159.60% from a profit of ¥31,232,260.25 in the previous year[21]. - The basic earnings per share decreased to -¥0.0600, down 168.10% from ¥0.0881 in the previous year[21]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of ¥20,249,534.57 compared to a profit of ¥30,312,749.21 in the same period last year, a decrease of 166.80%[21]. - The total comprehensive income attributable to the parent company was -¥9,249,759.06, down from ¥27,497,836.51 year-on-year[151]. - The total comprehensive income for the period was -¥38,990,384.33, compared to -¥34,116,475.03 in the same period last year[152]. - The company reported a net profit margin of 8.4% for the current period, down from 9.8% in the previous period[164]. Cash Flow and Investments - The net cash flow from operating activities improved to ¥13,416,869.47, a significant increase of 108.86% compared to a negative cash flow of ¥151,513,138.81 in the same period last year[21]. - The company’s net cash flow from investing activities improved by 62.50%, resulting in a net outflow of 42.12 million yuan[57]. - The cash outflow for repaying debts was 136,619,861.07 CNY in the first half of 2022, an increase from 91,663,354.00 CNY in the same period of 2021[154]. - The company reported a cash flow from investment activities of -42,123,056.26 CNY for the first half of 2022, indicating a negative trend in investment cash flow[154]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,364,814,590.16, a decrease of 4.40% from ¥3,519,721,822.69 at the end of the previous year[21]. - The company's total assets as of June 30, 2022, were CNY 4,781,219,034.93, down from CNY 4,831,731,489.47 at the beginning of the year[144]. - Total liabilities decreased to CNY 128,259,055.75 as of June 30, 2022, from CNY 149,346,960.83 at the start of the year[144]. - Inventory increased to ¥253,128,238, representing a 7.52% share of total assets, up from 6.64% in the previous period[66]. Research and Development - The company’s R&D investment was 60.49 million yuan, a slight decrease of 1.83% from the previous year[57]. - Research and development expenses for the first half of 2022 were CNY 50,945,827.82, a decrease from CNY 60,089,456.59 in the same period last year[147]. - The company plans to enhance its R&D efforts in new technologies and products to drive future growth[160]. Market and Product Development - The company operates in the rapidly growing gene sequencing industry, which is widely applied in agriculture, biology, and medical fields, with a focus on high-throughput sequencing technology[29]. - The company is actively exploring partnerships with pharmaceutical companies to develop innovative treatment methods in the oncology sector[35]. - The company launched new products such as the "Xie Xin An" carrier screening test and is developing single-gene hereditary disease products based on the third-generation sequencing platform[52]. - The company aims to enhance the efficiency and reduce the costs of gene sequencing through innovation in next-generation sequencing technologies[29]. Risks and Challenges - The company has acknowledged potential risks in its future operations, which are detailed in the management discussion section of the report[4]. - Increased competition in the gene sequencing industry is leading to a downward trend in service prices, which may impact the company's market share and future performance if quality and innovation do not improve[77]. - The company faces risks from changing national healthcare policies that could adversely affect operations if strategies are not adjusted accordingly[77]. - The ongoing COVID-19 pandemic has impacted hospital visits and increased operational costs, posing risks to the company's performance[81]. Shareholder and Equity Information - The employee stock ownership plan includes 85 employees holding a total of 2,823,000 shares, representing 0.80% of the company's total equity[88]. - The company reported no changes in the shareholding of directors and senior management during the reporting period, with the largest individual holding being 300,000 shares, or 0.08% of total equity[88]. - The largest shareholder, Chengdu Tianxing Instrument (Group) Co., Ltd., holds 44,002,000 shares, representing 12.41% of total shares[124]. Compliance and Legal Matters - The company has not faced any administrative penalties related to environmental issues during the reporting period, adhering to various environmental protection laws[91]. - There were no significant litigation or arbitration matters reported during the period, indicating a stable legal standing[99]. - The half-year financial report has not been audited, which may affect the reliability of the financial data presented[97].

Business Focus and Strategy - The company reported a significant shift in its main business focus from automotive parts to high-throughput sequencing-based genetic testing services and equipment sales since August 10, 2017[19]. - The company is expanding its business model from technology research and development to product application and data accumulation, indicating a shift towards a more mature market[31]. - The company aims to establish a comprehensive genetic disease detection product line covering pre-pregnancy, pregnancy, and newborn stages to reduce birth defect rates[111]. - The company is focusing on the commercialization of new products in the reproductive health sector, aiming to enhance operational performance[113]. - The company is committed to continuous product innovation to meet the evolving demands of the precision medicine market[115]. Financial Performance - The company's operating revenue for 2021 was ¥1,422,180,921.29, a decrease of 7.67% compared to ¥1,540,385,732.47 in 2020[20]. - The net profit attributable to shareholders was -¥110,818,562.80, representing a decline of 152.60% from a profit of ¥210,665,188.77 in 2020[20]. - The total revenue for the reporting period was 1.422 billion yuan, a decrease of 7.67% compared to the same period last year[59]. - Clinical business revenue (medical testing services and reagent sales) was approximately 938 million yuan, down 6.90% year-on-year[59]. - The company reported a total revenue of 9,822.22 million yuan for the year 2021, representing a 100% increase compared to the previous year[180]. Research and Development - The company has a commitment to research and development in new technologies related to gene sequencing[132]. - R&D expenses amounted to CNY 133,265,778.37 in 2021, representing a 3.02% increase from 2020, with R&D investment accounting for 9.37% of total revenue[85]. - The company has established over 40 types of research service products to meet unique experimental requirements in various fields, including human genome sequencing and single-cell research[40]. Market Position and Competition - The gene sequencing industry in China has entered a rapid development phase since the release of the "13th Five-Year Plan for the Development of the Biotechnology Industry" in 2017, with significant growth driven by the COVID-19 pandemic[31]. - The company is facing risks from intensified market competition and declining service prices in the genetic sequencing industry[115]. - The company is exposed to overseas business risks, including changes in regulations and geopolitical tensions that could adversely affect its international operations[117]. Governance and Management - The company maintains a strong governance structure, ensuring independence from its controlling shareholders and compliance with regulatory requirements[122]. - The company has established a robust governance structure with independent directors overseeing key decisions[136]. - The management team has undergone changes, with specific individuals holding significant shares, reflecting their commitment to the company[129]. Employee and Workforce - The company has a low turnover rate among its core team, with 81% of employees holding advanced degrees, ensuring a stable and skilled workforce[54]. - The total number of employees at the end of the reporting period is 1,490, with 1,486 from major subsidiaries[145]. - The employee composition includes 566 production personnel, 382 sales personnel, and 131 R&D personnel[145]. Asset Management and Financial Independence - The company has established a complete and independent asset ownership structure, with clear rights to intellectual property and trademarks, ensuring no potential disputes[125]. - The company has no significant equity investments or securities investments during the reporting period[103][104]. - The company’s main business operations were not dependent on related party transactions, ensuring financial independence[181]. Future Outlook and Plans - The company aims to focus on clinical commercialization, enhance health big data development, and expand its product and service offerings in the upcoming reporting period[50]. - The company is in the process of establishing a big data center industrial park in Fujian to support its data integration efforts[142]. - The company plans to expand its NextSeq CN500 and Sequel II CNDx platforms, focusing on medical device registration and inspection[114]. Risks and Challenges - The company faces risks related to technological iteration, as new sequencing technologies may emerge, potentially leading to a loss of competitive edge if the company cannot adapt quickly[116]. - There is a risk of product quality control, as the company relies on accurate data and testing results for clinical diagnostics, and any fluctuations in service quality could harm its brand image and market competitiveness[116]. - The rapid expansion of the company's operations may lead to management challenges, necessitating a robust operational management model to maintain growth[117].

Financial Performance - The company's revenue for Q1 2022 was ¥313,494,177.23, a decrease of 6.41% compared to ¥334,982,971.78 in the same period last year[3] - The net profit attributable to shareholders was a loss of ¥11,928,399.03, representing a decline of 156.15% from a profit of ¥21,242,485.44 in the previous year[3] - The basic and diluted earnings per share were both -¥0.04, a decline of 156.15% from ¥0.06 in the same period last year[3] - The company reported a net loss of CNY 12,217,400.42, compared to a net profit of CNY 20,948,311.58 in the same period last year[17] Cash Flow - The net cash flow from operating activities improved to -¥50,449,164.21, a 52.68% increase compared to -¥106,619,684.26 in the same period last year[3] - Cash received from operating activities decreased by 89.00% to ¥2,470,774.21, mainly due to last year's receipt of construction deposit from the Fujian Digital Life Industrial Park[6] - The company’s cash inflow from operating activities was CNY 385,442,573.36, while cash outflow was CNY 435,891,737.57[20] - The net cash flow from investment activities was -26,194,475.14 CNY, compared to -81,834,143.25 CNY in the previous year[21] - The cash inflow from financing activities totaled 41,593,432.70 CNY, down from 44,550,616.11 CNY year-over-year[21] - The cash outflow for debt repayment was 37,014,356.61 CNY, significantly lower than 66,343,351.00 CNY in the same period last year[21] - The net increase in cash and cash equivalents was -77,811,207.69 CNY, compared to -214,845,937.29 CNY in the previous year[21] - The ending balance of cash and cash equivalents was 340,078,087.38 CNY, down from 414,462,361.65 CNY year-over-year[21] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,443,319,312.21, down 2.17% from ¥3,519,721,822.69 at the end of the previous year[3] - The equity attributable to shareholders decreased by 0.81% to ¥2,470,145,379.24 from ¥2,490,192,733.55 at the end of the previous year[3] - The company’s total liabilities amounted to CNY 941,664,319.63, with total equity at CNY 2,501,654,992.58[13] - Current assets totaled CNY 1,823,816,977.26, down from CNY 1,906,579,870.07 at the start of the year, reflecting a decrease of approximately 4.3%[11] - Total non-current assets were CNY 1,619,502,334.95, a slight increase from CNY 1,613,141,952.62[12] - Current liabilities totaled CNY 717,179,038.88, down from CNY 768,577,015.73, reflecting a decrease of approximately 6.7%[12] Expenses - Total operating costs increased to CNY 309,299,721.50 from CNY 297,124,426.09, with sales expenses rising to CNY 68,195,926.23[16] - Financial expenses increased by 43.45% to ¥4,032,406.22, primarily due to interest payments on working capital loans[6] - Research and development expenses were CNY 26,127,459.15, down from CNY 31,015,909.78 in the previous period[16] Shareholder Information - The company reported a total of 10 major shareholders, with the largest being Chengdu Tianxing Instrument (Group) Co., Ltd. holding 12.41% of shares[10] Audit Status - The company’s first-quarter report was not audited[22]

Business Focus and Strategy - The company reported a significant shift in its main business focus from automotive parts to high-throughput sequencing-based genetic testing services and equipment sales since August 10, 2017[19]. - The company primarily engages in high-throughput sequencing technology-based gene testing services and equipment sales, establishing a strong position in the medical products and services sector[32]. - The company is expanding its product offerings in the field of reproductive health and genetic disease detection, with a focus on comprehensive prenatal screening and diagnosis[32]. - The company aims to establish a comprehensive genetic disease detection product line covering prenatal, pregnancy, and newborn stages to reduce birth defect rates in China[109]. - The company is focused on integrating clinical business with health big data development, aiming to enhance its product and service offerings in the future[50]. - The company is strategically positioned to leverage advancements in tumor detection and personalized medicine through its investments in related technologies and services[110]. - The company is committed to innovation in genetic testing technologies, focusing on both second and third-generation sequencing platforms to meet evolving market demands[111]. Financial Performance - The company's operating revenue for 2021 was ¥1,422,180,921.29, a decrease of 7.67% compared to ¥1,540,385,732.47 in 2020[6]. - The net profit attributable to shareholders was -¥110,818,562.80, representing a decline of 152.60% from a profit of ¥210,665,188.77 in 2020[6]. - The net profit after deducting non-recurring gains and losses was -¥130,200,103.28, a decrease of 213.70% compared to ¥114,509,221.95 in 2020[6]. - The total assets at the end of 2021 were ¥3,519,721,822.69, an increase of 8.50% from ¥3,243,969,209.24 at the end of 2020[6]. - The gross profit margin for the gene testing industry was 44.73%, down 7.89% compared to the previous year[70]. - The company achieved total revenue of 1.422 billion yuan, a decrease of 7.67% compared to the previous year[67]. - Clinical business revenue was approximately 938 million yuan, down 6.90% year-on-year, primarily due to declining service prices and unstable hospital patient volumes[59]. Research and Development - The company has maintained strong research and development capabilities to adapt to market demands and technological advancements[115]. - R&D investment increased by 3.02% to ¥133,265,778.37 in 2021, accounting for 9.37% of operating revenue[81]. - The company has established over 40 types of research service products to meet unique experimental requirements in various fields, including disease research and single-cell research[40]. - The company has developed the Cruxome exome data analysis system, allowing clients to easily input and analyze years of case data, enhancing database usability with AI-driven features[45]. Market Position and Competition - The gene sequencing industry in China has entered a rapid development phase since the release of the "13th Five-Year Plan for the Development of the Biotechnology Industry" in 2017, with increasing recognition of the importance of gene sequencing for precise diagnosis and treatment of diseases[31]. - Increased competition in the gene sequencing market may lead to price reductions, necessitating continuous improvement in service quality and technological advancements[112]. - The company is leveraging its first-mover advantage in the NIPT project to diversify its gene testing services and products, establishing a competitive edge in the market[32]. Corporate Governance and Management - The company emphasizes the independence of its operations from its controlling shareholders to avoid conflicts of interest and ensure fair business practices[123]. - The company has established a comprehensive gene sequencing solution through self-developed reagents, software, and a direct sales network, positioning itself as a pioneer in the rapidly growing gene sequencing industry[47]. - The company has implemented effective financial supervision and internal control systems, allowing for independent financial decision-making[125]. - The company has a low turnover rate among its core team, with 81% of employees holding advanced degrees, ensuring a stable and skilled workforce[54]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[4]. - The company faces risks related to policy changes in the healthcare sector, which could impact operational strategies and market conditions[112]. - The company is committed to maintaining a strict internal governance structure to manage risks associated with its expanding operational scale[121]. - Accounts receivable are increasing rapidly as the company expands, which may lead to cash flow issues if not managed effectively[115]. Product Development and Innovation - The company launched a new product, "Thalassemia Carrier Screening" using third-generation sequencing technology, which significantly improves the efficiency of controlling severe thalassemia and enhances clinical genetic counseling[32]. - The company has launched the clinical-grade liver cancer early screening product "Liver Screening," transitioning its tumor business from late-stage detection to early detection[37]. - The company is in the clinical trial phase for the Sequel II CNDx platform, which is primarily used for thalassemia gene detection[36]. Shareholder Relations and Dividends - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the year[5]. - The company has not proposed any cash dividend distribution for the reporting period despite having positive distributable profits[147]. Strategic Partnerships and Collaborations - The company has formed strategic partnerships with leading cloud data providers Huawei Cloud and Alibaba Cloud to offer a complete automated delivery solution from sequencing to cloud[38]. - The company has initiated strategic collaborations with major hospitals to create a more efficient network for genetic disease screening and diagnosis[110]. Environmental and Social Responsibility - The company has not faced any administrative penalties related to environmental issues during the reporting period[163]. - There were no significant environmental protection issues reported, and the company is not classified as a key pollutant discharge unit[163].

Financial Performance - The company's revenue for Q3 2021 was ¥378,883,684.09, representing a 3.17% increase year-over-year[3] - The net profit attributable to shareholders was a loss of ¥3,187,312.79, a decline of 109.55% compared to the same period last year[3] - The net profit after deducting non-recurring gains and losses was a loss of ¥3,241,730.19, down 110.24% year-over-year[3] - Net profit for the period was CNY 28,086,414.63, a decrease of 80.91% from CNY 146,827,353.17 in the same period last year[17] - Total comprehensive income for the period was CNY 28,086,414.63, down from CNY 146,827,353.17 in the same period last year[18] - Basic and diluted earnings per share were both CNY 0.0791, down from CNY 0.4288 in the previous period[18] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,337,361,142.89, an increase of 2.88% from the end of the previous year[3] - Total current assets as of September 30, 2021, amount to ¥2,014,411,380.53, slightly up from ¥2,008,047,115.30 at the end of 2020[12] - Total assets as of September 30, 2021, are ¥3,337,361,142.89, compared to ¥3,243,969,209.24 at the end of 2020[13] - Total liabilities amounted to CNY 826,316,689.95, slightly up from CNY 821,521,396.88 in the prior period[15] - The total liabilities increased to 821,521,396.88 CNY as of September 30, 2021, from 839,473,203.12 CNY at the beginning of the year[26] Cash Flow - Cash flow from operating activities showed a net outflow of ¥94,466,440.00, a decrease of 172.17% compared to the previous year[3] - Cash inflow from operating activities totaled CNY 1,048,917,634.60, compared to CNY 987,780,042.70 in the prior period[20] - Cash outflow from operating activities was CNY 1,143,384,074.60, an increase from CNY 1,022,486,126.72 in the previous period[20] - The net cash flow from operating activities for Q3 2021 was -94,466,440.00 CNY, compared to -34,706,084.02 CNY in Q3 2020, indicating a significant decline[21] - The net cash flow from investing activities was -268,549,931.64 CNY in Q3 2021, a decrease from -69,788,961.38 CNY in the same period last year[21] - Cash inflow from financing activities totaled 264,326,513.85 CNY in Q3 2021, down from 380,845,754.88 CNY in Q3 2020[21] - The net cash flow from financing activities increased to 106,904,431.52 CNY in Q3 2021, compared to 66,344,168.47 CNY in Q3 2020[21] Shareholder Information - Total number of common shareholders at the end of the reporting period is 29,393[9] - The largest shareholder, Gao Yang, holds 13.20% of shares, totaling 46,810,572 shares, with 36,945,429 shares pledged[9] Inventory and Borrowings - Inventory increased by 32.19% to ¥238,302,819.30, primarily due to increased reagent procurement[6] - The company's short-term borrowings rose by 73.46% to ¥213,536,104.18, attributed to increased working capital loans[6] - Short-term borrowings increased to ¥213,536,104.18 from ¥123,105,439.03[13] Development and Investments - The construction in progress surged by 3736.97% to ¥143,956,028.47, mainly due to investments in the Fujian Digital Life Industry Park project[6] - The company reported a significant decrease in investment income, with a loss of ¥39,152,709.77, a decline of 2000.24% year-over-year[6] - The company has ongoing development expenditures of ¥18,244,337.65, up from ¥16,787,609.94[13] - The company reported a significant increase in research and development expenses, totaling CNY 91,266,348.09, compared to CNY 89,390,991.77 in the previous period[16] Cash and Equivalents - Cash and cash equivalents decreased to ¥372,310,024.48 from ¥629,308,298.94[12] - The company's cash and cash equivalents at the end of Q3 2021 were 372,310,024.48 CNY, a decrease from 373,666,661.53 CNY at the end of Q3 2020[21] Accounting Changes - The company has implemented a new leasing standard starting January 1, 2021, affecting the financial statements[22] - The company recognized a right-of-use asset of ¥17,541,871.39 as of January 1, 2021, following the new lease accounting standard[27] - Lease liabilities were recorded at ¥17,951,806.24 as of January 1, 2021, indicating the company's commitment under the new lease standard[27] Other Financial Adjustments - Deferred tax assets increased from ¥26,358,767.01 to ¥26,477,937.86, reflecting an adjustment of ¥119,170.85[27] - The company's undistributed profits decreased by ¥290,580.34, from ¥1,052,858,965.48 to ¥1,052,568,385.14[27] - The company's surplus reserves showed a minor adjustment, decreasing by ¥183.66, from ¥77,754,929.46 to ¥77,754,745.80[27] Audit Status - The third quarter report for 2021 was not audited, indicating a potential area for further scrutiny[29]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 733,613,734.30, representing a 1.82% increase compared to CNY 720,515,704.78 in the same period last year[20]. - The net profit attributable to shareholders decreased by 73.41% to CNY 31,232,260.25 from CNY 117,471,830.17 in the previous year[20]. - Basic earnings per share dropped by 73.63% to CNY 0.0881 from CNY 0.3341 in the previous year[20]. - The company reported a significant decrease in net profit after deducting non-recurring gains and losses, down 66.52% to CNY 30,312,749.21 from CNY 90,551,262.91[20]. - The total operating revenue for the first half of 2021 was CNY 733,613,734.30, an increase of 1.52% compared to CNY 720,515,704.78 in the same period of 2020[153]. - Net profit for the first half of 2021 was CNY 31,540,440.67, a decrease of 72.49% compared to CNY 114,488,328.75 in the first half of 2020[155]. - The total comprehensive income for the first half of 2021 was -34,116,475.03 CNY, compared to -7,958,218.97 CNY in the same period of 2020, indicating a significant decline[160]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -151,513,138.81, worsening by 36.85% compared to CNY -110,710,717.58 in the same period last year[20]. - The company's cash and cash equivalents decreased by 438.15% to -¥195,190,438.11, reflecting a challenging liquidity position[58]. - Cash inflow from operating activities totaled 664,354,452.63 CNY, an increase from 593,258,340.79 CNY in the previous year, reflecting a growth of approximately 11.99%[162]. - Cash outflow from operating activities was 815,867,591.44 CNY, compared to 703,969,058.37 CNY in the same period last year, representing an increase of about 15.87%[163]. - The ending balance of cash and cash equivalents was 432,707,909.53 CNY, a decrease from 627,898,347.64 CNY at the beginning of the period[164]. Assets and Liabilities - Total assets increased by 2.73% to CNY 3,332,419,451.05 from CNY 3,243,969,209.24 at the end of the previous year[20]. - Total liabilities decreased to CNY 815,396,914.55 from CNY 821,521,396.88, a reduction of about 0.74%[147]. - The company's equity increased to CNY 2,517,022,536.50 from CNY 2,422,447,812.36, showing an increase of approximately 3.91%[148]. - The proportion of accounts receivable increased to 36.48% of total assets, up from 32.98% in the previous year, indicating potential collection issues[65]. Research and Development - Research and development expenses rose by 9.73% to ¥61,624,271.86, indicating a continued investment in innovation[57]. - The company is focusing on enhancing its research and development capabilities for new products[170]. Market and Industry Position - The company operates in the rapidly growing gene sequencing industry, which is expected to become a significant part of the global market[28]. - The competitive landscape in the gene sequencing industry is intensifying, leading to a decline in service prices, which may impact future performance[81]. - The company is focused on expanding its product offerings and market presence in the clinical gene testing sector, particularly in oncology and genetic disease detection[36]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company aims to establish a complete, standard, and high-quality local database for better clinical and research services[29]. - The company aims to enhance its market presence through strategic collaborations and the development of new technologies in cancer diagnostics[32]. Risks and Challenges - The company acknowledged potential risks in its future operations, which investors should be aware of[5]. - The company faces risks related to changes in national medical reform policies that could adversely affect operations[81]. - The company is experiencing a slowdown in the growth of NIPT testing due to a decrease in birth rates, affecting overall revenue[81]. Shareholder Information - The total number of shares is 354,605,865, with a decrease of 471,124 shares in restricted shares[125]. - The company repurchased a total of 3,907,400 shares, accounting for approximately 1.1018% of the total share capital, with a total transaction amount of 160,386,379.29 RMB[127]. - The largest shareholder, Gao Yang, holds 13.20% of the shares, totaling 46,810,572 shares, with 12,315,143 shares pledged[132]. Financial Reporting and Compliance - The semi-annual financial report was not audited[101]. - The financial statements are prepared based on the going concern principle and the accrual basis of accounting[184]. - The company has confirmed its ability to continue as a going concern for at least 12 months from the reporting date[185].

Business Focus and Strategy - The company reported a significant shift in its main business focus from automotive parts to high-throughput sequencing-based genetic testing services and equipment sales since August 10, 2017[17]. - The company operates in the genetic testing industry, providing both medical products and services based on gene sequencing technology, with a focus on clinical applications and project-based development[38]. - The company plans to focus on the fastest-growing segments of genetics and oncology, aiming for complete control over genetic diseases and extending oncology diagnostics from late-stage to early screening[68]. - The company is focusing on the development of tumor early screening and diagnosis products based on core patented technologies[117]. - The company is expanding its business into oncology, particularly in liquid biopsy and immune gene testing for late-stage tumors[119]. Financial Performance - The company's operating revenue for 2020 was ¥1,540,385,732.47, a decrease of 4.78% compared to 2019[19]. - The net profit attributable to shareholders for 2020 was ¥210,665,188.77, down 46.07% from the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥114,509,221.95, a decline of 61.03% year-over-year[19]. - The basic earnings per share for 2020 was ¥0.60, a decrease of 45.45% compared to ¥1.10 in 2019[19]. - The company achieved a total revenue of approximately CNY 1.47 billion, with a net profit of CNY 204.43 million, reflecting a significant growth in performance[113]. Investments and Assets - The total assets at the end of 2020 were ¥3,243,969,209.24, reflecting a growth of 5.71% from the end of 2019[20]. - The company has increased its stake in Fujian Huirui from 19.412% to 20.956% after acquiring 1.544% equity for RMB 1,034,480[47]. - The company reported a total investment of 53,815,000.00 yuan, with 61.85% in cash and bank deposits[104]. - The company has guaranteed a total of 10,000 million CNY for its subsidiaries, which represents 4.19% of the company's net assets[177]. Research and Development - The company has established strategic partnerships with 10x Genomics and New Gen Yuan to expand its research service offerings, now totaling over 40 types of research service products[51]. - The company has published 339 SCI articles with a cumulative impact factor exceeding 2544, showcasing its strong clinical research capabilities[52]. - R&D investment amounted to ¥129,357,051.73, representing 8.40% of operating revenue[88]. - The number of R&D personnel decreased by 2.94% to 132 in 2020, accounting for 8.73% of total employees[87]. Market Position and Competition - The company has established a strong market position in genetic testing, leveraging its first-mover advantage and continuously innovating products and channels to drive revenue growth[41]. - The company experienced a significant drop in the weighted average return on equity, which fell to 8.64% from 18.35% in 2019[19]. - The company faced risks from intensified market competition and declining service prices in the gene sequencing industry, which could negatively impact future performance if service quality and technology do not improve[126]. Compliance and Governance - The company operates under the supervision of the China Securities Regulatory Commission and adheres to the regulations set forth by the Shenzhen Stock Exchange[10]. - The company has established a strict internal governance system, but the expansion of operations may increase management challenges and risks[125]. - The company has maintained compliance with all regulatory requirements and has not faced any administrative penalties or major civil litigation in the last five years[143]. Shareholder and Equity Information - Major shareholder Gao Yang holds 13.89% of the shares, totaling 49,260,572, with 36,945,429 shares under lock-up conditions[197]. - The company has seen a total of 56,798,839 shares added to the restricted shares during the reporting period[196]. - The company has implemented a share repurchase plan in accordance with the established guidelines, ensuring compliance with regulatory requirements[192]. - The controlling shareholder, Gao Yang, is a recognized expert in the field of genomics and serves as the chairman and CEO of the company[200]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report, indicating potential future challenges[4]. - The company reported a potential risk of declining gross margins due to industry regulation uncertainties and increased market competition, which could significantly affect profit levels[126]. - The company’s ability to manage accounts receivable effectively is crucial to avoid liquidity issues as sales scale expands[127].

Financial Performance - The company's operating revenue for Q1 2021 was ¥334,982,971.78, a decrease of 9.46% compared to ¥369,973,449.87 in the same period last year[7] - The net profit attributable to shareholders for Q1 2021 was ¥21,242,485.44, down 65.95% from ¥62,393,298.10 in the previous year[7] - Basic earnings per share for Q1 2021 were ¥0.0599, a decline of 66.08% from ¥0.1766 in the previous year[7] - The estimated net profit for the period from the beginning of the year to the next reporting period is projected to be between 40 million and 60 million yuan, representing a decrease of 65.95% compared to the same period last year, which was 117.47 million yuan[24] - Basic earnings per share are expected to decline to between 0.1128 and 0.1692 yuan per share, down 65.95% from 0.3313 yuan per share in the same period last year[24] - Total comprehensive income for the first quarter was CNY 20,948,311.58, compared to CNY 60,048,341.05 in the previous period[45] Cash Flow and Liquidity - The net cash flow from operating activities was -¥106,619,684.26, an improvement of 29.92% compared to -¥152,146,155.23 in the same period last year[7] - Cash and cash equivalents decreased by 34.14% to 414.46 million yuan, primarily due to payments for raw materials and fixed asset purchases[16] - The company received 22.47 million yuan in cash related to operating activities, a 1719.10% increase, mainly from the recovery of performance guarantees[16] - Cash flow from operating activities generated a net outflow of CNY 106,619,684.26, compared to a net outflow of CNY 152,146,155.23 in the previous period[52] - Cash and cash equivalents at the end of the period totaled CNY 414,462,361.65, down from CNY 629,308,298.94 at the beginning of the period[53] - The ending balance of cash and cash equivalents was 1,840,630.30 yuan, down from 4,288,037.44 yuan in the previous period[56] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,175,283,029.22, a decrease of 2.12% from ¥3,243,969,209.24 at the end of the previous year[7] - The company's total liabilities as of March 31, 2021, were approximately 731.64 million yuan, down from approximately 821.52 million yuan at the end of 2020[36] - Total liabilities decreased to CNY 109,134,746.38 from CNY 148,113,528.38[40] - The equity attributable to shareholders of the parent company was CNY 4,527,857,606.37, down from CNY 4,563,057,644.73[40] - The company's retained earnings stood at 1,052,858,965.48 yuan, contributing to the total equity attributable to shareholders of 2,388,438,682.50 yuan[62] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,030[10] - The largest shareholder, Gao Yang, held 13.89% of the shares, amounting to 49,260,572 shares, with 36,945,429 shares pledged[10] - The company repurchased a total of 3,907,400 shares, accounting for approximately 1.1018% of the total share capital, with a total transaction amount of 160.39 million yuan[19] Government and Regulatory Matters - The company received government subsidies amounting to ¥422,389.51 during the reporting period[8] - The company has terminated the review of its non-public offering of A-shares by the China Securities Regulatory Commission, which did not significantly impact its financial status[17] - The company has revised its employee stock ownership plan to utilize 3.9 million repurchased shares, aligning with its long-term strategic development[20] Future Outlook and Strategy - The company anticipates a slowdown in the growth rate of medical product and service testing due to a continuous decline in birth rates, leading to a decrease in overall gross profit margin[24] - The company plans to accelerate product iteration and upgrade to improve the proportion of high-margin products and services, aiming to enhance overall gross profit margin levels[24] - Recent central bank statements on fertility issues are expected to stimulate market demand for prenatal testing products, which the company aims to leverage through its first-mover and technological advantages[24] Research and Development - Research and development expenses for Q1 2021 were CNY 31,015,909.78, compared to CNY 29,580,787.68 in the previous year[43] - The company reported an investment loss of CNY 10,069,473.09, an improvement from a loss of CNY 13,836,212.07 in the previous period[43] Miscellaneous - The first quarter report for 2021 was not audited, indicating potential limitations in financial assurance[67] - The company has not disclosed any new product developments or market expansion strategies in the current report[68] - There were no adjustments made for the new leasing standards in the financial statements[66]

Financial Performance - Operating revenue for the reporting period was ¥367,249,676.64, a decrease of 12.78% year-on-year[7]. - Net profit attributable to shareholders was ¥33,360,093.21, down 47.68% compared to the same period last year[7]. - The company reported a net profit of ¥150,831,923.37 for the year-to-date, a decrease of 51.87% compared to the same period last year[7]. - Basic earnings per share were ¥0.0941, a decrease of 47.66% year-on-year[7]. - The company reported a net profit margin decline, with undistributed profits at CNY 1,017,491,330.25 compared to CNY 866,659,406.87 in the previous period[35]. - The net profit for the third quarter of 2020 was CNY 146,827,353.17, a decrease of 52.7% compared to CNY 310,545,632.88 in the same period last year[49]. - The total profit for the third quarter was CNY 185,096,532.36, down from CNY 360,700,576.93, reflecting a decline of 48.7% year-over-year[49]. - The company reported a comprehensive income total of CNY 32,339,024.42 for the quarter, reflecting a decrease of 48.54% compared to CNY 62,899,802.09 in the previous year[43]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,221,700,435.41, an increase of 4.98% compared to the end of the previous year[7]. - Current liabilities rose to CNY 551,915,642.36, up from CNY 449,718,880.72, indicating an increase of approximately 23%[34]. - Non-current liabilities increased to CNY 329,687,437.50 from CNY 272,111,362.93, marking a rise of around 21%[34]. - Total liabilities reached CNY 721,830,243.65, with current liabilities at CNY 449,718,880.72 and non-current liabilities at CNY 272,111,362.93[65]. - Owner's equity totaled CNY 2,347,046,643.19, including share capital of CNY 354,605,865.00 and retained earnings of CNY 866,659,406.87[65]. Cash Flow - The net cash flow from operating activities was ¥76,004,633.30, an increase of 36.52% compared to the previous year[7]. - The net cash flow from operating activities was -34,706,084.02 CNY, a decrease from 87,352,689.69 CNY in the previous period[56]. - Total cash inflow from operating activities was 987,780,042.70 CNY, compared to 1,106,323,154.00 CNY in the same period last year, indicating a decline of approximately 10.7%[56]. - Cash outflow from operating activities totaled 1,022,486,126.72 CNY, slightly increased from 1,018,970,464.31 CNY[56]. - The net cash flow from investing activities was -69,788,961.38 CNY, compared to -320,555,611.94 CNY in the previous period, showing an improvement[57]. - Cash inflow from financing activities was 380,845,754.88 CNY, up from 176,760,105.60 CNY in the previous period, representing a significant increase of approximately 115.5%[57]. Shareholder Information - The total number of shareholders at the end of the reporting period was 18,739[11]. - The largest shareholder, Gao Yang, holds 13.89% of the shares, amounting to 49,260,572 shares, with a portion pledged[11]. Investments and Expenses - Research and development expenses increased to CNY 33,230,928.07, up 14.83% from CNY 29,009,576.30 year-over-year[41]. - Financial expenses increased by 8054.65% to RMB 9,442,539.82, primarily due to increased loan interest expenses[15]. - The company has ongoing investments in fixed assets totaling CNY 506,778,116.04, down from CNY 541,996,643.13, reflecting a decrease of approximately 6%[33]. - The company recorded a net loss from joint ventures and associates of CNY 28,239,541.49, worsening from a loss of CNY 42,374,451.19 in the previous year[49]. Other Key Information - Non-recurring gains and losses totaled ¥34,693,319.08, primarily from the disposal of non-current assets and government subsidies[8]. - The company plans to implement an employee stock ownership plan with a capital scale not exceeding RMB 39 million, involving the repurchase of 3,900,000 shares[17]. - The company expects to engage in related transactions with Fujian He Rui for tumor-related products and services, estimating a total transaction amount of RMB 10 million[17]. - The company has no overdue commitments from major shareholders or related parties during the reporting period, indicating stable governance[20]. - The third quarter report has not been audited[71].

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥720.52 million, a decrease of 4.34% compared to ¥753.24 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was approximately ¥117.47 million, down 53.17% from ¥250.83 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥90.55 million, a decrease of 41.56% compared to ¥154.95 million in the same period last year[18]. - The net cash flow from operating activities was negative at approximately -¥110.71 million, a decline of 449.46% compared to ¥31.68 million in the previous year[18]. - The basic earnings per share were ¥0.3341, down 52.76% from ¥0.7073 in the same period last year[18]. - The total comprehensive income for the first half of 2020 was -7,958,218.97 CNY, compared to -34,162,152.24 CNY in the same period of 2019, showing an improvement[188]. - The company reported a net loss of 2,658.72 million in the current period, indicating a challenging financial environment[200]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥3.41 billion, an increase of 11.14% from ¥3.07 billion at the end of the previous year[18]. - The company's net assets attributable to shareholders decreased by 1.20% to CNY 2,300,505,168.96 as of the end of the reporting period[60]. - Total liabilities increased to CNY 1,094,510,904.33, up 51.7% from CNY 721,830,243.65[175]. - The total assets of the company reached 14,073.54 million, showing a stable asset base despite the losses[200]. Research and Development - Research and development expenses rose by 5.09% to ¥56.16 million, compared to ¥53.44 million in the previous year[66]. - The company has developed core technologies including PCR-free technology and cSMART liquid biopsy technology, which are widely applied in various fields of genetic testing[49]. - The company is focusing on market expansion and new product development strategies to enhance growth prospects[177]. - Research and development efforts are focused on new product innovations to capture market share[199]. Market and Product Development - The main business focuses on high-throughput sequencing technology for genetic testing and sales of related equipment and reagents[26]. - The company aims to enhance clinical and research services by establishing high-quality local databases for clients[26]. - The company launched the "Liver Screening" product, which can detect early-stage liver cancer 6-12 months in advance, significantly improving treatment opportunities for patients[31]. - The company is actively expanding its business into tumor early screening and gene big data analysis, continuously enriching its product line[59]. - The company aims to expand its early screening capabilities to other cancer types based on the success of the liver cancer screening product[31]. Strategic Partnerships and Collaborations - The company has established partnerships with over 80% of research institutions and universities in China, supporting over 10,000 research projects and providing more than 200,000 research samples[45]. - The company has established strategic partnerships with 10x Genomics and NewGen, enhancing its platform resources and contributing to over 100 publications in high-impact journals[50]. - The company’s reagents are developed in collaboration with Illumina, ensuring high performance and accuracy in sequencing applications[34]. Risks and Challenges - The company faces risks from potential changes in national medical reform policies that could impact the healthcare market[95]. - Increased market competition and declining service prices in the gene sequencing industry pose risks to the company's future performance[96]. - The company must accelerate its research and development efforts to avoid risks associated with technological and product innovation lagging behind market demands[97]. - The company is exposed to foreign business risks, including potential legal and regulatory changes in overseas markets that could adversely affect operations[102]. Shareholder and Equity Information - The company has not distributed cash dividends or bonus shares for the half-year period, indicating a focus on reinvestment[112]. - The total number of shares remains at 354,605,865, with no new shares issued or other changes affecting the total[147]. - The company has a significant number of restricted shares, with a total of 212,889,076 shares at the end of the reporting period[153]. - The company’s stock repurchase is expected to positively impact financial indicators such as basic earnings per share and diluted earnings per share[149]. Operational Performance - The company has maintained a strong operational performance without reliance on significant sales returns, showcasing resilience in its business model[121]. - The company reported a significant increase in financial expenses by 513.17% due to increased long-term borrowings and exchange rate losses[66]. - The company is transitioning its service model towards product sales, enhancing customer stickiness and driving revenue growth[41].