Group 1: Financial Performance and Investment - The company has seen a 43.76% increase in R&D investment in 2021 compared to the previous year, reflecting its ongoing commitment to research and development [1][2] - The company has not engaged in direct financing since its IPO, relying instead on loans for specific projects, such as the "Hollow Capsule Intelligent Manufacturing New Model" project [1] - The company maintains a low level of interest-bearing debt, benefiting from favorable bank loan rates [1] Group 2: Production Capacity and Market Position - Anhui Huangshan Capsule Co., Ltd. is one of the largest manufacturers of pharmaceutical hollow capsules, with an annual production capacity exceeding 40 billion capsules [2] - The company utilizes advanced intelligent manufacturing technology, allowing for the production of various specifications and customized services [2] Group 3: Shareholder Concerns and Market Performance - The company's stock price has declined significantly from a peak of 83 yuan to below 8 yuan, raising concerns among shareholders about the company's future [2] - The company is focused on steady operations and aims to create sustainable long-term returns for investors despite market fluctuations [2]

Financial Performance - The company's revenue for Q3 2022 was ¥93,656,298.81, representing a 13.10% increase year-over-year[5] - Net profit attributable to shareholders for the same period was ¥16,583,398.01, up by 3.32% compared to the previous year[5] - Total operating revenue for the third quarter of 2022 was CNY 301,178,173.56, an increase of 8.3% compared to CNY 278,105,057.36 in the same period last year[39] - Net profit for the third quarter reached CNY 48,220,190.73, representing a 16.5% increase from CNY 41,406,384.94 in the previous year[40] - Earnings per share (EPS) for the quarter was CNY 0.16, compared to CNY 0.14 in the same quarter last year, indicating a growth of 14.3%[40] - The total equity attributable to shareholders of the parent company was CNY 840,944,224.34, up from CNY 809,694,572.19, reflecting a growth of 3.9%[39] - The total comprehensive income for the quarter was CNY 48,522,337.05, an increase from CNY 41,496,818.78, representing a growth of 17.3%[40] Cash Flow - The operating cash flow net amount for the year-to-date period reached ¥67,058,100.52, showing a significant increase of 111.46%[5] - The net cash flow from operating activities increased by ¥35,345,400, a growth of 111.46%, attributed to higher cash receipts from sales[29] - The net cash flow from operating activities for the period was ¥67,058,100.52, an increase of 111.1% compared to ¥31,712,693.40 in the previous period[41] - Total cash inflow from investment activities was ¥453,876,802.98, significantly higher than ¥5,458,760.93 in the previous period[41] - The net cash flow from investment activities was -¥246,780,048.91, worsening from -¥63,490,876.00 in the previous period[41] - Cash flow from financing activities resulted in a net outflow of -¥22,234,805.05, compared to a net inflow of ¥39,251,572.00 in the previous period[42] - The total cash and cash equivalents at the end of the period stood at ¥142,238,131.71, down from ¥248,958,363.80 at the end of the previous period[42] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,093,508,453.78, reflecting a 3.77% increase from the end of the previous year[5] - The total liabilities increased to CNY 252,101,974.12 from CNY 243,844,826.99, marking a rise of 3.1%[39] - The company’s non-current liabilities decreased to CNY 93,153,737.79 from CNY 97,947,796.63, a decline of 5.0%[39] - The company’s non-current assets total RMB 422,465,387.55 as of September 30, 2022, slightly up from RMB 414,167,687.10 at the beginning of the year[36] Shareholder Information - The total number of common shareholders at the end of the reporting period is 14,622[31] - The largest shareholder, Yu Chunming, holds 38.05% of shares, totaling 113,802,815 shares, with 37,020,000 shares pledged[31] Investments and Expenses - The company reported a 116.08% increase in trading financial assets, amounting to ¥75,617,300, primarily due to investments in bank wealth management products[9] - Research and development expenses for the quarter were CNY 10,418,005.92, slightly down from CNY 11,284,663.73, indicating a decrease of 7.7%[39] - The company reported a financial income of CNY 4,837,532.59, compared to CNY 5,366,642.46 in the previous year, showing a decline of 9.9%[39] Inventory and Receivables - The company’s inventory as of September 30, 2022, is RMB 115,712,327.43, up from RMB 90,742,292.83 at the beginning of the year[36] - The company reported accounts receivable of RMB 103,197,011.65 as of September 30, 2022, an increase from RMB 80,999,747.90 at the beginning of the year[36]

Group 1: Event Details - Anhui Huangshan Capsule Co., Ltd. will participate in the "2022 Anhui Listed Companies Investor Collective Reception Day" [2] - The event will be held online on September 7, 2022, from 16:00 to 17:30 [2] - Investors can join via the "Panorama Roadshow" website, WeChat public account, or the Panorama Roadshow APP [2] Group 2: Communication Objectives - Company executives will discuss the 2022 semi-annual report, including company performance, governance, development strategy, operational status, and sustainable development [2] - The event aims to enhance interaction and communication with investors [2] Group 3: Assurance of Information - The company and its board guarantee the announcement's content is true, accurate, and complete, with no false records or significant omissions [2]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥207,521,874.75, representing a 6.26% increase compared to ¥195,297,816.23 in the same period last year[22]. - The net profit attributable to shareholders was ¥31,515,861.09, an increase of 18.22% from ¥26,657,994.57 in the previous year[22]. - Basic and diluted earnings per share increased by 22.22% to ¥0.11, compared to ¥0.09 in the previous year[22]. - The company achieved a revenue of 207.52 million yuan in the first half of 2022, an increase of 6.26% compared to the same period last year[34]. - The net profit attributable to shareholders was 31.52 million yuan, up 18.22% year-on-year[34]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 24.27 million yuan, an increase of 7.98% year-on-year[34]. - The gross profit margin for the reporting period was impacted by increased costs, with operating cash flow decreasing by 24.11% to ¥23,293,267.85[45]. - The company's revenue for the pharmaceutical hollow capsule manufacturing industry reached ¥207.52 million, an increase of 6.26% compared to the same period last year, while the gross margin decreased by 2.03% to 27.75%[49]. - The net profit for the first half of 2022 was CNY 31,474,542.80, up from CNY 25,670,833.48 in the previous year, indicating a growth of approximately 22.5%[126]. - The total comprehensive income for the first half of 2022 was CNY 31,481,808.87, showing a significant increase compared to the previous year[144]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 24.11% to ¥23,293,267.85, down from ¥30,694,740.20 in the same period last year[22]. - The company faced a decrease in cash flow from operating activities, indicating potential challenges in maintaining liquidity[22]. - Cash and cash equivalents decreased by 16.14% to ¥176.88 million, representing 16.53% of total assets, down from 32.67%[50]. - The cash flow from operating activities generated a net amount of CNY 23,293,267.85, down from CNY 30,694,740.20 in the first half of 2021, indicating a decrease of 24.2%[132]. - The company reported a decrease in cash flow from financing activities, with a net outflow of CNY 19,923,044.79 compared to a net inflow of CNY 39,668,892.33 in the first half of 2021[134]. - The cash flow from investment activities was not detailed, but the overall cash position indicates challenges in liquidity management[136]. Market and Product Development - The company focuses on the research, production, and sales of gelatin hollow capsules and enteric-coated gelatin hollow capsules, which are essential for packaging sensitive pharmaceuticals[32]. - The company is actively expanding its market presence, particularly in the traditional Chinese medicine sector, to ensure continuous sales growth[33]. - The company is investing in technological upgrades and diversifying its product offerings to capture more market share[33]. - The company has established a robust marketing network, serving over 30 provinces and regions across China, enhancing its industry recognition[36]. - The company plans to launch two new products in Q3 2022, aiming to capture a larger segment of the market[92]. - The company is focusing on strategic acquisitions to enhance its competitive position in the market[93]. - The company plans to continue its market expansion strategy, focusing on increasing its production capacity and enhancing product offerings[94]. Risk Management - The company has outlined risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[4]. - The company faces risks from regulatory changes in the pharmaceutical industry, which could impact market competition and product quality[58]. - Rising prices of raw materials, particularly gelatin for capsules, pose a risk to the company's cost structure and profit margins[58]. - The company plans to enhance its product structure and market expansion efforts to mitigate risks associated with price competition in the pharmaceutical sector[58]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has established a profit distribution policy and a three-year shareholder return plan to ensure reasonable returns for shareholders[68]. - The company reported a profit distribution of CNY 17,091,324.00 to shareholders, indicating a commitment to returning value to investors[145]. - The total equity attributable to shareholders at the end of the reporting period was 765.1 million yuan, showing a slight increase from the previous period[141]. Research and Development - Research and development investment rose by 4.12% to ¥7,269,786.64, up from ¥6,982,110.93, reflecting the company's commitment to innovation[45]. - The company is focusing on research and development of new technologies to drive future growth and innovation[145]. - New product development initiatives are underway, with an investment of 500 million CNY allocated for R&D in innovative technologies[92]. Environmental and Regulatory Compliance - The company emphasizes environmental protection and sustainable development, aligning with national policies and regulations[69]. - The company strictly adheres to laws and regulations, ensuring timely and accurate information disclosure to protect the rights of shareholders and creditors[68]. - The company has not faced any significant legal disputes or administrative penalties during the reporting period[79]. Financial Management and Accounting - The company adheres to the enterprise accounting standards, ensuring that its financial statements accurately reflect its financial position and operating results[153]. - The company has established specific accounting policies and estimates for financial instruments, fixed asset depreciation, and revenue recognition[152]. - Financial instruments are subject to impairment measurement based on expected credit losses, with loss provisions recognized for various financial assets[178].

Financial Performance - The company's revenue for Q1 2022 was ¥101,310,277.27, a decrease of 2.68% compared to ¥104,095,453.39 in the same period last year[3] - Net profit attributable to shareholders increased by 29.36% to ¥13,969,880.23 from ¥10,799,475.10 year-on-year[3] - Net profit for Q1 2022 reached ¥13,929,428.55, representing an increase of 36.5% from ¥10,244,482.70 in Q1 2021[18] - The total comprehensive income for the parent company attributable to owners was CNY 13,960,700.25, compared to CNY 10,813,442.19 in the previous period, reflecting an increase of approximately 28.5%[19] Cash Flow - The net cash flow from operating activities rose by 59.19% to ¥23,600,068.31, compared to ¥14,824,838.69 in the previous year[3] - The cash inflow from operating activities totaled CNY 73,910,120.63, while cash outflow was CNY 50,310,052.32, resulting in a net cash flow of CNY 23,600,068.31[21] - The net cash flow generated from operating activities was CNY 23,600,068.31, up from CNY 14,824,838.69 in the previous period, indicating a growth of about 59.8%[21] - The net increase in cash and cash equivalents decreased by 2405.69% to a net decrease of ¥11,378.32 million, primarily due to reduced cash flows from investing and financing activities[8] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,084,560,420.74, reflecting a 2.92% increase from ¥1,053,820,293.60 at the end of the previous year[3] - Total assets as of the end of Q1 2022 were ¥1,084,560,420.74, an increase from ¥1,053,820,293.60 at the beginning of the year[14] - Total liabilities increased to ¥260,667,000.55 from ¥243,844,826.99 at the beginning of the year, reflecting a rise of 6.9%[15] Earnings and Profitability - Basic earnings per share increased by 40.00% to ¥0.07 from ¥0.05 in the same period last year[3] - Basic and diluted earnings per share were both CNY 0.07, an increase from CNY 0.05 in the previous period, representing a growth of 40%[19] - The company reported a gross profit margin of approximately 12.3% for Q1 2022, compared to 10.5% in the same period last year[18] Investment and Expenditures - The company reported a significant increase in trading financial assets, which rose by 193.17% to ¥12,583.14 million due to investments in bank wealth management products[6] - The company incurred a cash outflow of CNY 236,249,003.97 for investment activities, compared to CNY 39,326,110.73 in the previous period, reflecting a strategic increase in capital expenditures[23] - The company reported a net cash outflow from investing activities of CNY -130,754,044.31, compared to CNY -36,398,597.41 in the previous period, showing a significant increase in investment expenditures[23] - The total cash inflow from investment activities was CNY 105,494,959.66, significantly higher than CNY 2,927,513.32 in the previous period, indicating a substantial increase in investment returns[22] Operational Efficiency - The company's government subsidies recognized in the current period amounted to ¥3,613,420.79, contributing to the increase in other income[5] - The company experienced a 30.91% increase in accounts receivable, totaling an increase of ¥2,503.32 million, indicating delayed collection of receivables[6] - Accounts receivable increased to ¥106,032,972.69, up 30.5% from ¥80,999,747.90 at the beginning of the year[13] - Research and development expenses for Q1 2022 were ¥3,869,928.41, compared to ¥3,602,953.61 in Q1 2021, indicating an increase of 7.4%[18] Future Outlook - The company plans to continue expanding its market presence and invest in new product development to drive future growth[18]

Financial Performance - The company's operating revenue for 2021 was CNY 379,891,008.70, representing an increase of 18.93% compared to CNY 319,426,287.89 in 2020[18]. - The net profit attributable to shareholders for 2021 was CNY 56,887,811.36, up 25.70% from CNY 45,255,710.15 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 48,301,265.66, reflecting a growth of 32.54% from CNY 36,442,844.58 in 2020[18]. - The net cash flow from operating activities increased by 37.28% to CNY 86,089,406.99, compared to CNY 62,711,557.61 in 2020[18]. - The total assets at the end of 2021 reached CNY 1,053,820,293.60, a 15.07% increase from CNY 915,812,091.29 at the end of 2020[18]. - The net assets attributable to shareholders were CNY 809,694,572.19, which is a 6.30% increase from CNY 761,707,349.51 in 2020[18]. - The basic earnings per share for 2021 were CNY 0.27, up 28.57% from CNY 0.21 in the previous year[18]. - The weighted average return on equity for 2021 was 7.25%, an increase from 6.10% in 2020[18]. Cash Flow and Investments - The net cash flow from operating activities improved by 37.28% to ¥86,089,406.99[60]. - The net cash flow generated from financing activities increased by CNY 36.76 million, a growth rate of 334.32%, primarily due to an increase in borrowings[61]. - The net increase in cash and cash equivalents was CNY 102.40 million, a rise of 195.87%, attributed to the increase in net cash flow from operating and financing activities[61]. - As of the end of 2021, cash and cash equivalents amounted to CNY 344.29 million, representing 32.67% of total assets, up from 26.43% at the beginning of the year[63]. - The company invested CNY 13.44 million in R&D, completing 9 technical innovations and filing 7 invention patents during the reporting period[44]. Market and Sales Performance - Domestic sales accounted for 96.90% of total revenue, while international sales surged by 360.62% to CNY 11.79 million[47]. - The company’s gelatin hollow capsules generated CNY 312.63 million in revenue, representing 82.29% of total sales, with a year-on-year growth of 20.59%[47]. - The sales volume of gelatin hollow capsules increased by 19.84% to 2,834,163.14 million units, while production volume rose by 30.81%[50]. - The company is actively expanding its market presence and strengthening cooperation with clients in the chemical drug procurement sector[34]. Research and Development - The company is committed to increasing R&D investment to enhance its competitive edge in the pharmaceutical technology service sector[41]. - The total number of R&D personnel increased by 18.06% to 85, enhancing the company's innovation capacity[58]. - The company has developed core technologies in enteric coating materials and hollow capsule production, securing several patents and industry recognitions[40]. Governance and Management - The company’s governance structure is in accordance with the requirements set by the China Securities Regulatory Commission, with independent operations of the board of directors and supervisory board[80]. - The company has established an independent financial department and accounting system, ensuring autonomous financial decision-making and compliance with tax obligations[86]. - The company has appointed independent directors with extensive backgrounds in finance and pharmaceuticals, enhancing governance[96]. - The company has a diverse board with members having backgrounds in engineering, economics, and pharmaceuticals, which supports its strategic direction[95]. Shareholder Engagement and Dividends - The company plans to distribute a cash dividend of CNY 0.80 per 10 shares, with a capital reserve conversion of 4 shares for every 10 shares held[4]. - The company implemented a cash dividend policy, distributing a total of 17,091,324.00 CNY, which represents 30.04% of the total profit distribution[118]. - The company’s profit distribution policy emphasizes reasonable, continuous, and stable returns to shareholders while considering long-term interests[116]. Risks and Challenges - The company faces risks related to regulatory changes in the pharmaceutical industry and fluctuations in raw material prices, particularly for gelatin used in capsules[75]. - The pharmaceutical industry is facing significant risks of product price reductions due to policies such as consistency evaluation of generic drugs and national volume-based procurement, leading to a decline in gross margins and increased competition[76]. Internal Controls and Compliance - The company reported no major or important internal control deficiencies during the reporting period, indicating effective internal control systems[122][124]. - The company has established a comprehensive internal control system that complies with relevant regulations and has been effectively implemented[122]. - The company maintained a continuous relationship with Tianjian Accounting Firm for 13 years, with an audit fee of 500,000 RMB for the current period[142]. Social Responsibility - The company actively engages in social responsibility initiatives, donating RMB 154,000 to charitable causes during the reporting period[131]. - The company has invested in environmental protection technologies, including a supercritical carbon dioxide system and a catalytic combustion system, to reduce emissions and energy consumption[131].

Revenue and Profit - Revenue for Q3 2021 reached ¥82,807,241.13, an increase of 14.96% year-over-year, while year-to-date revenue was ¥278,105,057.36, up 29.28% compared to the same period last year[3] - Net profit attributable to shareholders for Q3 2021 was ¥16,051,184.94, reflecting an 11.98% increase year-over-year, with year-to-date net profit at ¥42,709,179.51, up 27.03%[3] - The net profit for the third quarter of 2021 was CNY 41,406,384.94, an increase of 27.4% compared to CNY 32,497,215.85 in the same period last year[18] - The total comprehensive income for the third quarter was CNY 41,496,818.78, up from CNY 32,497,215.85, reflecting a growth of 27.7%[18] - Operating profit for the period was RMB 46,105,482.36, an increase of 20.5% from RMB 38,282,503.48 in the previous year[16] Earnings Per Share - The basic earnings per share for Q3 2021 was ¥0.08, a 14.29% increase compared to the same period last year, while year-to-date earnings per share was ¥0.20, up 25.00%[3] - Basic earnings per share for the quarter were CNY 0.20, compared to CNY 0.16 in the previous year, representing a 25% increase[19] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥981,243,823.86, representing a 7.14% increase from the end of the previous year[3] - The company's total assets as of September 30, 2021, were RMB 981,243,823.86, compared to RMB 915,812,091.29 at the end of 2020, reflecting a growth of 7.1%[14] - The company's total liabilities increased to RMB 183,237,603.32, compared to RMB 150,662,349.53 at the end of 2020, marking a rise of 21.6%[15] - The equity attributable to shareholders of the parent company reached RMB 795,668,518.91, up from RMB 761,707,349.51, reflecting a growth of 4.5%[15] Cash Flow - Cash flow from operating activities for the year-to-date period decreased by 5.03% to ¥31,712,693.40[3] - Cash flow from operating activities generated a net cash inflow of CNY 31,712,693.40, slightly down from CNY 33,391,452.32 in the previous year[21] - Cash and cash equivalents stood at RMB 249,503,797.18, showing an increase from RMB 242,007,755.38 at the end of 2020[13] - Total cash and cash equivalents at the end of the period amounted to CNY 248,958,363.80, an increase from CNY 234,888,104.96 at the end of the previous year[22] - Cash inflows from operating activities totaling CNY 233,627,129.34, compared to CNY 176,154,017.30 in the same period last year, marking a growth of 32.6%[21] - Cash outflows from operating activities were CNY 201,914,435.94, up from CNY 142,762,564.98, indicating a 41.4% increase[21] - Investment activities resulted in a net cash outflow of CNY 63,490,876.00, compared to a net outflow of CNY 213,104.06 in the previous year[22] - Financing activities generated a net cash inflow of CNY 39,251,572.00, reversing from a net outflow of CNY 5,162,183.38 in the same period last year[22] Research and Development - Research and development expenses increased by ¥4,945,300, a growth of 78.01% year-over-year, indicating increased investment in R&D[8] - Research and development expenses increased significantly to RMB 11,284,663.73, a rise of 77.5% compared to RMB 6,339,384.34 in the previous year[16] Inventory and Borrowings - The company experienced a 51.57% increase in inventory, amounting to an increase of ¥36,618,900, primarily due to increased stockpiling[7] - Inventory levels rose to RMB 107,628,406.18, up from RMB 71,009,457.51, indicating a 51.5% increase year-on-year[14] - The company reported a significant increase in long-term borrowings, which rose by ¥47,542,800, a growth of 342.92% compared to the beginning of the year[7] Return on Equity - The company’s weighted average return on equity was 2.04% for Q3 2021, reflecting a 5.70% increase compared to the same period last year[3]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥195,297,816.23, representing a 36.50% increase compared to ¥143,079,710.90 in the same period last year[19]. - The net profit attributable to shareholders was ¥26,657,994.57, up 38.21% from ¥19,288,313.54 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥22,474,953.20, reflecting a 48.28% increase from ¥15,157,070.55 in the previous year[19]. - The net cash flow from operating activities was ¥30,694,740.20, an increase of 81.02% compared to ¥16,956,958.62 in the same period last year[19]. - Basic earnings per share rose to ¥0.12, a 33.33% increase from ¥0.09 in the previous year[19]. - The company achieved a revenue of 195.30 million yuan in the first half of 2021, representing a year-on-year growth of 36.50%[30]. - The net profit attributable to shareholders was 26.66 million yuan, an increase of 38.21% compared to the previous year[30]. - The company reported a significant increase in revenue, achieving a total of 500 million CNY for the first half of 2021, representing a 20% year-over-year growth[68]. - The net profit for the first half of 2021 was CNY 27,759,533.88, an increase of 37.5% compared to CNY 20,170,486.61 in the same period of 2020[133]. - Operating profit rose to CNY 30,426,248.27, up 28.4% from CNY 23,736,168.45 year-on-year[133]. Assets and Liabilities - Total assets at the end of the reporting period were ¥981,483,411.97, a 7.17% increase from ¥915,812,091.29 at the end of the previous year[19]. - The total assets at the end of the reporting period were ¥980,000,000, with cash and cash equivalents amounting to ¥249,149,973.17, representing 25.39% of total assets[46]. - The company's total assets increased to CNY 985,944,054.77, compared to CNY 916,054,167.26 at the end of the previous period, reflecting a growth of 7.6%[126]. - The total liabilities increased to CNY 199,415,974.65 from CNY 150,662,349.53, reflecting a rise of approximately 32.3%[121]. - The company's total liabilities rose to CNY 198,359,473.45, up from CNY 147,488,693.92, indicating a 34.5% increase[126]. - The company's cash and cash equivalents were CNY 249,149,973.17 as of June 30, 2021, compared to CNY 242,007,755.38 at the end of 2020, showing a slight increase of about 2.4%[119]. - The company's equity attributable to shareholders reached CNY 779,614,748.56, up from CNY 761,707,349.51, indicating an increase of approximately 2.5%[122]. - The company's total equity totaled CNY 787,584,581.32, a slight increase from CNY 768,565,473.34, showing a growth of 2.1%[126]. Operational Strategy - The company focuses on the research, production, and sales of gelatin hollow capsules and enteric-coated gelatin hollow capsules, which are essential pharmaceutical excipients[30]. - The company has established a centralized procurement model to manage production materials and reduce costs effectively[28]. - The company maintains a production model based on sales forecasts, ensuring a balance between production and inventory levels[28]. - The company emphasizes innovation in marketing strategies to enhance brand recognition and expand market share[33]. - The company invests in R&D to develop new products and improve production processes, holding several patents for advanced technologies[34]. - The company aims to become a leading pharmaceutical technology service platform in China by enhancing R&D investment and innovation capabilities[36]. - The company has established strong partnerships with major pharmaceutical enterprises, ensuring a broad customer base across over 30 provinces in China[33]. Market Performance - Domestic sales accounted for 97.18% of total revenue, amounting to ¥189,781,627.70, with a year-on-year growth of 32.68%[43]. - The company reported a significant increase in foreign sales, which rose to ¥5,516,188.53, marking a staggering growth of 12,380.60% compared to the previous year[43]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[73]. Risks and Challenges - The company faces regulatory risks due to the lack of a comprehensive management system in the pharmaceutical capsule industry, which may lead to market competition challenges and product quality discrepancies[53]. - The price of gelatin, the main raw material for capsules, is subject to significant fluctuations, which could impact procurement costs and gross margins; the company plans to optimize procurement processes and conduct market research to mitigate this risk[53]. - The company anticipates risks related to product price reductions due to ongoing policies such as consistency evaluation for generic drugs and centralized procurement, which may lead to decreased profit margins in the pharmaceutical industry[54]. - The company is expanding its human resources management system to address potential talent shortages as it scales operations, focusing on attracting and retaining high-quality professionals[54]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company did not distribute cash dividends or issue bonus shares for the half-year period, nor did it convert capital reserves into share capital[59]. - The largest shareholder, Yu Chunming, holds 38.05% of the shares, totaling 81,287,725 shares, with 43,500,000 shares pledged[106]. - The second-largest shareholder, Yu Chaobiao, holds 3.46% of the shares, totaling 7,395,000 shares, with 1,848,750 shares released from restrictions[106]. - The company has a total of 10 major shareholders, with the top two controlling over 41.51% of the total shares[106]. Compliance and Governance - The company has committed to maintaining transparency and compliance with regulatory requirements, ensuring no violations occurred during the reporting period[72]. - The financial report for the first half of 2021 has not been audited yet, which is standard practice for this reporting period[75]. - The company has not engaged in any significant litigation or arbitration matters during this period[76]. - The company has no significant related party transactions during the reporting period[78]. - The company has not initiated any poverty alleviation or rural revitalization efforts during the reporting period[64]. Financial Management - The company reported a total of 9,800,000 CNY in entrusted financial management, with an occurrence amount of 200,000 CNY[90]. - The company has no overdue receivables or impairment provisions related to entrusted financial management[92]. - The company has no major contracts or guarantees in place during the reporting period[88]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[79]. - The company has no significant daily operational contracts during the reporting period[93]. - The company has no major related party debts or financial transactions[81]. - The company has not experienced any significant changes in shareholding or shareholder structure during the reporting period[96]. - The company has no major matters requiring explanation during the reporting period[94]. - The company has no significant joint external investments during the reporting period[80]. Accounting Policies - The financial statements prepared by the company comply with the requirements of the accounting standards, reflecting the financial position, operating results, and cash flows accurately[159]. - The company uses Renminbi as its functional currency for domestic operations, while its overseas subsidiary uses the currency of its primary economic environment[162]. - The company follows specific accounting policies for financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition[158]. - The company consolidates all subsidiaries under its control in the consolidated financial statements, based on the financial statements of the parent and its subsidiaries[164]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[163].

Group 1: Event Details - The company will participate in the "2021 Anhui Listed Companies Investor Collective Reception Day" [2] - The event is organized by the Anhui Securities Regulatory Bureau, Anhui Listed Companies Association, and Shenzhen Panorama Network Co., Ltd. [2] - The event will be held online on May 18, 2021, from 14:00 to 17:30 [2] Group 2: Participants - Attendees include the company's director, deputy general manager, and board secretary, Mr. Xiang Xianli [2] - The financial director, Ms. Dong Xue, and securities affairs representative, Ms. Wang Baozhen, will also be present [2] Group 3: Investor Engagement - The company aims to enhance communication with investors and improve transparency and governance [2] - Investors are encouraged to actively participate in the event [2]

Financial Performance - The company's operating revenue for Q1 2021 was ¥104,095,453.39, representing a 48.14% increase compared to ¥70,266,086.21 in the same period last year[7]. - The net profit attributable to shareholders was ¥10,799,475.10, up 19.76% from ¥9,017,259.94 year-on-year[7]. - The net profit after deducting non-recurring gains and losses was ¥8,727,524.14, reflecting a 16.93% increase from ¥7,463,846.01 in the previous year[7]. - The company reported a net profit margin improvement, with undistributed profits rising to CNY 341,651,516.17 from CNY 330,852,041.07, an increase of about 3.5%[47]. - Total comprehensive income for the first quarter was CNY 10,261,941.56, compared to CNY 8,704,549.13, marking an increase of approximately 17.9%[55]. - Operating profit for the first quarter was CNY 11,590,470.33, compared to CNY 10,316,722.66 in the previous period, showing an increase of about 12.3%[54]. - Net profit for the first quarter reached CNY 10,244,482.70, up from CNY 8,704,549.13, indicating a growth of approximately 17.7% year-over-year[54]. Cash Flow - The net cash flow from operating activities decreased by 33.52% to ¥14,824,838.69 from ¥22,298,376.00 in the same period last year[7]. - Net cash flow from operating activities decreased by CNY 7,473,500, a decline of 33.52% year-on-year, mainly due to increased cash payments for goods and services[30]. - Net cash flow from investing activities decreased by CNY 22,639,300, a decline of 164.54% year-on-year, primarily due to increased cash payments for the purchase of fixed assets, intangible assets, and other long-term assets[30]. - Net cash flow from financing activities increased by CNY 26,345,900, a growth rate of 48,972.63% year-on-year, mainly due to an increase in borrowings[30]. - The net increase in cash and cash equivalents decreased by CNY 3,756,200, a decline of 44.26% year-on-year, primarily due to reduced net cash flow from operating and investing activities despite increased financing cash flow[30]. - Cash inflow from operating activities amounted to CNY 78,514,426.76, an increase from CNY 60,921,525.98 in the previous period, reflecting a growth of approximately 28.8%[61]. - Cash outflow for the acquisition of fixed assets was CNY 36,355,474.13, compared to CNY 9,849,680.39 in the previous period, indicating increased capital expenditures[66]. Assets and Liabilities - Total assets at the end of the reporting period were ¥973,707,066.87, a 6.32% increase from ¥915,812,091.29 at the end of the previous year[7]. - The company's total liabilities reached CNY 198,295,383.55, compared to CNY 150,662,349.53 in the previous period, marking an increase of about 31.6%[46]. - Total liabilities increased by 325.80% to ¥651,600.00, mainly due to an increase in short-term borrowings[20]. - Non-current liabilities increased to CNY 56,778,836.53 from CNY 35,921,906.76, reflecting a rise of approximately 58%[50]. - Long-term borrowings increased significantly to CNY 33,991,846.98 from CNY 13,864,052.92, representing an increase of approximately 145%[50]. - The company's equity attributable to shareholders reached CNY 772,520,791.70, compared to CNY 761,707,349.51 in the previous period, reflecting a growth of about 1.1%[47]. Operational Costs and Expenses - The company reported a 71.43% increase in operating costs, amounting to ¥7,628,000.00, primarily due to increased sales and the inclusion of shipping costs in operating expenses[22]. - The company experienced a 506.82% increase in taxes and surcharges, totaling ¥626,000.00, due to the expiration of tax relief policies from the previous year[23]. - The company incurred a tax expense of CNY 1,337,857.63, slightly down from CNY 1,379,726.97 in the previous period[54]. - The company's R&D expenses increased by 35.37% to ¥341,130.00, driven by increased investment in R&D projects[24]. - Research and development expenses increased to CNY 3,602,953.61 from CNY 2,661,619.82, reflecting a rise of about 35.3%[53]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 14,546, with the largest shareholder holding 38.05% of the shares[11]. - Basic and diluted earnings per share were both CNY 0.07, an increase from CNY 0.06 in the same period last year[55].