Financial Performance - The company's operating revenue for 2020 was approximately ¥3.36 billion, a decrease of 18.99% compared to ¥4.15 billion in 2019[20]. - Net profit attributable to shareholders for 2020 was approximately ¥728.82 million, an increase of 9.88% from ¥663.31 million in 2019[20]. - The net cash flow from operating activities surged by 307.99% to approximately ¥1.25 billion, compared to ¥305.97 million in 2019[20]. - Basic earnings per share for 2020 were ¥0.72, reflecting a 9.09% increase from ¥0.66 in 2019[20]. - Total assets at the end of 2020 reached approximately ¥4.75 billion, a growth of 13.02% from ¥4.20 billion at the end of 2019[20]. - Net assets attributable to shareholders increased by 13.87% to approximately ¥4.12 billion, up from ¥3.62 billion in 2019[20]. - The company reported a weighted average return on equity of 18.42%, down from 20.22% in the previous year[20]. - The fourth quarter of 2020 saw the highest quarterly revenue of approximately ¥986.79 million[24]. - The net profit attributable to shareholders in the fourth quarter was approximately ¥157.40 million[24]. - The company reported a total of ¥18,495,326.74 in non-recurring gains and losses, a decrease from ¥60,640,785.26 in 2019[26]. Research and Development - The company is committed to significant investment in drug research and development, with a focus on innovation and consistency evaluation of generic drugs, which may involve high costs and long timelines[6]. - The company has over 70 ongoing research projects, with 18 projects undergoing consistency evaluation, including two new specifications for existing products[30]. - There are 39 key generic drug projects in development, with 20 at various stages of research and 19 projects under confidentiality[30]. - The company applied for 65 invention patents during the reporting period, with 30 patents granted, including one awarded the first Xu Zhou Patent Gold Award[30]. - The company has established a comprehensive R&D platform for CNS drugs, with a focus on high-potential and high-barrier products[44]. - The company invested CNY 245,863,036.38 in R&D during the reporting period, representing a 30.10% increase compared to the previous year, enhancing its core competitiveness through the successful development of new products with independent intellectual property rights[46]. - The company has 20 innovative drug projects in progress, with 16 projects at different stages of development[47]. - The company expects to submit IND applications for several new drugs in 2021 and 2022, including NH600001 and NH100, which are classified as innovative drugs[49]. Market Strategy and Expansion - The company is focusing on professionalizing its sales force and adjusting sales strategies to adapt to the centralized procurement model, aiming to increase market share for non-procurement products[34]. - The company aims to maintain stable revenue from procurement products in procurement areas while expanding sales in non-procurement regions[34]. - The company is actively pursuing innovation, with several new drug candidates expected to submit IND applications in 2021 and 2022, reflecting its commitment to R&D[32]. - The company is positioned in a weak cyclical industry, with a strong emphasis on controlling medical insurance costs through centralized procurement, which is reshaping the pharmaceutical landscape[36]. - The company plans to accelerate the internationalization of its raw materials and formulations, while focusing on product structure adjustments[40]. - The company is pursuing international expansion by promoting FDA re-certification and seeking collaborations with foreign pharmaceutical companies[143]. - The company plans to open 10-30 chain psychological clinics nationwide through its subsidiary, enhancing its online medical platform[144]. Risk Management - The company faces risks from industry policy changes, including stricter drug approval and quality regulations, which could impact future operations[4]. - Environmental risks are present due to potential pollution from production processes, necessitating compliance with national environmental policies[6]. - The company acknowledges a risk of talent shortages as it expands, which may affect strategic execution and management[6]. - The company emphasizes the importance of quality control in drug production, as any operational missteps could adversely affect product quality and business performance[4]. - The company is committed to addressing potential risks, including environmental and talent shortages, to ensure the achievement of its 2021 operational goals[155]. - New GMP standards and regulations impose stricter quality control requirements throughout the drug development process, increasing operational risks[155]. Corporate Governance and Compliance - The company has established a comprehensive governance structure to ensure accountability and transparency in its operations[3]. - The company did not experience any changes in its main business or controlling shareholders since its listing[19]. - The company has complied with all regulations regarding the management of raised funds[124]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[172]. - There were no significant accounting errors that required retrospective restatement during the reporting period[182]. Dividend Policy - The company reported a profit distribution plan, proposing a cash dividend of 1 RMB per 10 shares, based on a total of 1,007,588,092 shares[7]. - The total cash dividend, including other methods, amounts to 300,758,707.08 yuan, representing 100% of the distributable profit[165]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during its growth phase with significant capital expenditure plans[165]. - Over the past three years, the company's cash dividend payout ratios have been 13.82% in 2020, 15.36% in 2019, and 11.66% in 2018, reflecting a consistent return to shareholders[164].

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 1.5 billion RMB, representing a year-on-year growth of 15%[1]. - The net profit attributable to shareholders for the same period was 300 million RMB, an increase of 20% compared to the previous year[1]. - The company's operating revenue for the reporting period reached ¥1,865,023,379.80, representing a 25.81% increase compared to ¥1,482,401,437.22 in the same period last year[22]. - Net profit attributable to shareholders was ¥410,905,547.89, up 16.46% from ¥352,815,134.46 year-on-year[22]. - The net profit after deducting non-recurring gains and losses was ¥416,285,999.28, reflecting a 17.50% increase from ¥354,271,558.63 in the previous year[22]. - The company achieved operating revenue of ¥1,865,023,379.80, representing a year-on-year growth of 25.81%[29]. - The net profit attributable to shareholders reached ¥410,905,547.89, an increase of 16.46% compared to the same period last year[29]. - The company reported a total of ¥17,369,293.56 in investment income from financial products, which is considered a recurring gain due to its frequency and relevance to normal business operations[26]. - The company received government subsidies amounting to ¥678,000.00, which are closely related to its business operations[26]. - The company expects a net profit for the period from January to September 2021 to be between ¥628,562,000 and ¥742,846,000, representing a growth of 10.00% to 30.00% compared to the previous year[86]. - Basic earnings per share are projected to be between ¥0.62 and ¥0.73, reflecting an increase of 10.71% to 30.36% year-on-year[86]. Research and Development - The company plans to invest 200 million RMB in research and development for new drug innovations and consistency evaluations in the upcoming year[1]. - The company has over 70 ongoing research projects, including 19 projects for consistency evaluation[32]. - There are 38 key generic drug projects under research, with 15 innovative drug projects also in progress[32]. - The company applied for 17 invention patents during the reporting period, with 5 patents granted[32]. - The company invested approximately 157 million yuan in R&D during the reporting period, representing a 53.94% increase compared to the same period last year[44]. - Research and development expenses rose by 53.94% to ¥156,570,685.07, reflecting increased investment in product development during the reporting period[64]. - The company has built a comprehensive R&D platform for innovative drugs, particularly in the field of psychotropic and analgesic drugs[57]. - The company is focusing on enhancing its research and development efforts to drive innovation and market competitiveness[193]. Market Expansion and Strategy - Future outlook includes a projected revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[1]. - The company is actively expanding its market presence despite increased competition and regulatory challenges in the pharmaceutical industry[29]. - The strategic focus remains on technological innovation and internal management enhancement to ensure sustainable development[29]. - The company aims to expand the sales scale of non-centralized procurement products and maintain stable revenue for centralized procurement products in their respective regions[40]. - The company is actively pursuing the development of innovative drugs, with several products expected to submit IND applications in 2022[39]. - The company is committed to increasing its investment in innovative drugs and high-barrier generic drugs[31]. - The company aims to accelerate the internationalization of its raw materials and formulations while focusing on high-potential and high-barrier products[46]. Environmental Compliance - Environmental compliance measures are being prioritized to mitigate risks associated with production waste and pollution[1]. - The company invested approximately 70 million RMB in upgrading VOCs collection and treatment projects, which were completed and put into operation by the end of June 2021[51]. - The company has implemented a comprehensive environmental monitoring plan, with all monitored parameters meeting regulatory requirements in the first half of 2021[107]. - The company has strengthened its sales team and adjusted sales strategies to enhance market share, particularly for non-collection products[46]. - The company has established a charity fund, donating a total of 782,800 RMB to assist socially disadvantaged families over the past five years[109]. Shareholder and Corporate Governance - No cash dividends or stock bonuses will be distributed to shareholders for this period, as the company aims to reinvest profits into growth initiatives[1]. - The company held its annual general meeting on April 2, 2021, with an investor participation rate of 2.01%[89]. - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual period[91]. - The company completed the repurchase and cancellation of 414,000 restricted shares from 17 former employees, reducing total shares from 1,020,015,711 to 1,019,601,711[92]. - The company has maintained its independent operational status and will not engage in transactions that could harm the interests of shareholders[114]. - The company has ensured that any business opportunities that could compete with its operations will be directed to the company itself[113]. - The company has established a three-year agreement among its major shareholders to maintain consistent actions regarding shareholding[115]. Risks and Challenges - The company acknowledges the risk of high-end talent shortages as it scales operations and expands its business[1]. - The company faces risks related to industry policy changes, quality control, and the need for high-end talent as it expands its operations[54]. - The company reported no violations regarding external guarantees during the reporting period[118]. - The company did not experience any penalties or rectification situations during the reporting period[122]. - The company has not engaged in any related party transactions during the reporting period[123].

Financial Performance - The company's operating revenue for 2020 was approximately ¥3.36 billion, a decrease of 18.99% compared to ¥4.15 billion in 2019[20]. - The net profit attributable to shareholders for 2020 was approximately ¥728.82 million, an increase of 9.88% from ¥663.31 million in 2019[20]. - The net cash flow from operating activities surged by 307.99% to approximately ¥1.25 billion in 2020, compared to ¥305.97 million in 2019[20]. - The basic earnings per share for 2020 was ¥0.72, reflecting a 9.09% increase from ¥0.66 in 2019[20]. - Total assets at the end of 2020 reached approximately ¥4.75 billion, a 13.02% increase from ¥4.20 billion at the end of 2019[20]. - The net assets attributable to shareholders increased by 13.87% to approximately ¥4.12 billion at the end of 2020, compared to ¥3.62 billion at the end of 2019[20]. - The company reported a weighted average return on equity of 18.42% for 2020, down from 20.22% in 2019[20]. - The fourth quarter of 2020 saw an operating revenue of approximately ¥986.79 million, contributing to a total annual revenue decline[24]. - The net profit attributable to shareholders in the fourth quarter was approximately ¥157.40 million, showing a decrease compared to previous quarters[24]. - The company reported a total of ¥18,495,326.74 in non-recurring gains and losses, a decrease from ¥60,640,785.26 in 2019[26]. Research and Development - The company must invest substantial funds annually in drug research and development, with the risk of extended development cycles or failures due to stringent regulatory requirements[6]. - The pharmaceutical industry is characterized by high investment and long development cycles, with new products taking over 10 years to reach the market[6]. - The company has 39 key generic drug projects in development, with 20 at various stages of research and 19 projects under confidentiality[30]. - A total of 65 invention patents were applied for during the reporting period, with 30 patents granted, including one that received the first Xu Zhou Patent Gold Award[30]. - The company is actively involved in the development of new drugs for Alzheimer's and Parkinson's diseases, with several projects in the pipeline[32]. - The company has established two subsidiaries focused on innovative drug research in Shanghai and Suzhou, emphasizing sustainable development in innovative pharmaceuticals[46]. - The company has 18 ongoing innovative drug projects, with 2 in Phase I clinical trials[92]. - The company plans to submit IND applications for 5 innovative drugs in 2021 and 2022, including NH600001 and NH100, focusing on anesthesia and pain relief[32]. - The company is focused on developing new specifications for existing products, with significant progress in consistency evaluations for key medications[47]. Market and Industry Trends - The Chinese pharmaceutical market is projected to grow significantly, becoming the second-largest drug consumption market globally, with over 1.3 billion people covered by basic medical insurance[129]. - The central nervous system drug market is expanding due to an increasing number of patients with mental illnesses, with over 100 million patients in China, of which only 20% receive timely treatment[132]. - National policies in mental health have been implemented, including the Mental Health Law and various public health service projects, which will enhance the consumption of central nervous system drugs[133]. - The introduction of new medical reform policies and the inclusion of severe mental illnesses in major illness insurance will significantly reduce patients' financial burdens and increase drug consumption[134]. - The company is focusing on the internet healthcare sector, having established a platform for mental health services, which is expected to create new business growth opportunities[135]. Risk Management - The company faces risks from industry policy changes, including stricter drug approval and quality regulations, which could significantly impact future operations[4]. - Environmental risks are present due to potential pollution from production processes, which could lead to compliance issues with national environmental policies[6]. - The company acknowledges a risk of talent shortages as it expands, which may affect strategic execution and management capabilities[6]. - The company emphasizes the importance of quality control in drug production, as any operational missteps could adversely affect product quality and business performance[4]. - The company is committed to addressing potential risks proactively to ensure the achievement of its 2021 operational goals[6]. Corporate Governance - The company has a comprehensive governance structure, with all board members present for the report's approval, ensuring accountability[3]. - The company is committed to avoiding any business activities that compete with its main operations, ensuring independent management and decision-making[165]. - The commitments made by the actual controllers and shareholders are being strictly adhered to during the reporting period[166]. - The company will respect the independent legal status of its operations and ensure compliance with relevant laws and regulations[167]. Dividend Policy - The company reported a profit distribution plan, proposing a cash dividend of 1 RMB per 10 shares based on a total of 1,007,588,092 shares[7]. - The total cash dividend distributed amounts to ¥100,758,809.20, representing a cash dividend of ¥1.00 per 10 shares[164]. - The cash dividend policy has been strictly followed, with a total cash dividend of 100,758,809.20 yuan distributed in 2020, representing 13.82% of the net profit attributable to shareholders[162]. - The company has maintained a consistent cash dividend distribution over the past three years, with the 2019 dividend amounting to 101,912,591.10 yuan, or 15.36% of net profit[163]. - The retained undistributed profit after the dividend distribution is ¥2,652,503,720.16, which will be carried forward for future distribution[164]. Strategic Initiatives - The company aims to achieve a revenue of 10 billion yuan by the end of 2025[138]. - In 2021, the company expects a revenue growth of approximately 10%, total profit growth of about 20%, and net profit growth of around 20% compared to 2020[139]. - The company plans to accelerate the development of 3-4 products for consistency evaluation and aims to obtain production licenses for 6 products within the year[140]. - The company will continue to enhance its marketing team and adjust sales strategies to increase market share, especially for non-bid products[141]. - The company is pursuing international expansion by promoting FDA re-certification and seeking collaborations with foreign pharmaceutical companies[142]. Compliance and Accounting - The company implemented the new revenue recognition standard starting January 1, 2020, resulting in an increase in contract liabilities by ¥41,132,974.71 and a decrease in advance receipts by the same amount as of December 31, 2020[171]. - The company reported a significant adjustment in its financial statements due to the new revenue standard, with a total adjustment of ¥28,267,376.03 for contract liabilities and ¥3,601,367.41 for other current liabilities[175]. - The company’s financial condition and operating results were not significantly impacted by the implementation of the new accounting standards[172]. - The company’s board and supervisory board confirmed that there were no non-standard audit reports for the reporting period[171]. - The company has not made any significant changes to accounting estimates during the reporting period[175].