Financial Performance - Net profit attributable to shareholders was ¥24,557,880.26, representing a growth of 60.42% year-on-year[8]. - Operating revenue for the period was ¥116,311,575.91, reflecting a year-on-year increase of 59.41%[8]. - The net profit after deducting non-recurring gains and losses was ¥22,767,213.02, up 95.22% compared to the same period last year[8]. - Basic earnings per share were ¥0.09, a 50.00% increase from the previous year[8]. - The company reported a significant increase in revenue for Q3 2017, reaching a total of 1.2 billion RMB, representing a year-over-year growth of 25%[32]. - The company provided guidance for Q4 2017, expecting revenue to grow by an additional 20% to 1.44 billion RMB[32]. - The total operating revenue for the third quarter was CNY 116,311,575.91, an increase from CNY 72,961,519.43 in the previous period[48]. - The net profit attributable to the parent company was CNY 24,557,880.26, compared to CNY 15,308,091.39 in the same period last year, reflecting a growth of approximately 60.5%[49]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,649,340,237.43, an increase of 0.77% compared to the end of the previous year[8]. - The company's total liabilities increased significantly, with accounts payable rising by 834.98% compared to the end of last year[20]. - Total liabilities decreased to CNY 131,115,017.75 from CNY 158,237,641.81, indicating a reduction of about 17.1%[46]. - The company's equity stood at CNY 1,465,064,655.76, slightly up from CNY 1,435,172,665.67 at the beginning of the period[42]. Cash Flow - The company reported a net cash flow from operating activities of ¥31,751,483.03, an increase of 3.75% year-to-date[8]. - Cash inflows from operating activities totaled CNY 337.28 million, up from CNY 204.26 million year-over-year, representing an increase of about 64.9%[64]. - The cash flow from operating activities showed a net increase of CNY 95.29 million, compared to CNY 19.07 million in the previous year, reflecting a substantial improvement[66]. - The cash and cash equivalents at the end of the period were CNY 225.15 million, down from CNY 477.48 million at the end of the previous year, a decline of approximately 52.8%[65]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,893[11]. - The largest shareholder, Guangdong Zhiguang Biotechnology Co., Ltd., held 20.76% of the shares[11]. - The company has committed to a 36-month lock-up period for shares acquired during the issuance, prohibiting any form of transfer during this time[27]. - The company will allow a partial transfer of shares after fulfilling performance compensation commitments related to the 2016 and 2017 fiscal years[28]. Strategic Acquisitions and Partnerships - The company acquired 53.35% equity stakes in Beijing Wenfeng and Zhonghao Pharmaceutical for 266 million yuan, enhancing its strategic position in the regenerative medicine sector[24]. - The acquisition of Huidiseng Pharmaceutical is part of the company's strategic development plan, aimed at enhancing marketing capabilities in the pharmaceutical sector[26]. - The company is focused on enhancing its overall competitive strength through strategic acquisitions and partnerships in the pharmaceutical industry[26]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for this purpose[32]. Market and Product Development - New product launches included a cutting-edge biotechnology product that is projected to generate 300 million RMB in sales within the first year[32]. - Research and development investments increased by 30% in Q3 2017, totaling 150 million RMB, focusing on innovative technologies[32]. - The company has indicated plans for market expansion and new product development, although specific details were not disclosed in the financial report[57]. Compliance and Regulatory Commitments - The company emphasizes the importance of compliance with regulatory requirements in all its financial activities and commitments[27]. - The company has established strict guidelines for the transfer of shares acquired during the issuance, ensuring that no transfers occur without meeting specific conditions[28]. - The company committed to avoid any business competition with its subsidiaries during the stock holding period[30].

Fundraising and Financial Performance - The company reported a fundraising of 130 million RMB for the regional cell business operation platform project, which integrates cell storage, standardized production, clinical research, customer experience, and marketing [8]. - The company is undergoing a non-public stock issuance for major asset purchases, pending approval from the China Securities Regulatory Commission [11]. - The company will not distribute cash dividends or issue bonus shares for the current period [12]. - Total revenue for the first half of 2017 reached ¥197,930,897.35, representing an increase of 85.32% compared to ¥106,802,851.80 in the same period last year [25]. - Net profit attributable to shareholders was ¥25,698,188.86, up 66.44% from ¥15,439,827.34 year-on-year [25]. - Basic earnings per share rose to ¥0.10, a 66.67% increase from ¥0.06 in the same period last year [25]. - The company's total assets at the end of the reporting period were ¥1,613,412,277.02, a decrease of 1.42% from ¥1,636,692,595.19 at the end of the previous year [25]. - The net cash flow from operating activities was ¥1,072,869.17, a significant decline of 96.40% compared to ¥29,799,141.06 in the same period last year [25]. - The company received government subsidies amounting to ¥8,476,767.88 during the reporting period [29]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2017, representing a 25% year-over-year growth [121]. Research and Development - The company is focusing on research and development in immune cell therapy, establishing a key technology platform to support various project companies and reduce R&D costs [8]. - The company is advancing several key R&D projects, including bone filling materials and artificial corneas, with clinical trials and ethical approvals in progress [70]. - The company is developing advanced technologies such as Tan-CAR and EPS, positioning itself at the forefront of stem cell research and CAR-T cell therapy [38]. - The company has established a comprehensive innovation incubation model, hosting over 50 incubated enterprises, including high-level talent projects in advanced technology fields [55]. - The company is developing a first-in-class 1.1 new drug, which has been submitted for priority review by CFDA, indicating strong future growth potential [52]. Market Strategy and Risks - The company plans to enhance its marketing system by combining academic promotion with product application, aiming to increase market share [7]. - The company emphasizes the importance of adapting to new market conditions and regulatory changes in the medical device industry to mitigate operational risks [6]. - The company is aware of potential risks associated with market environment changes and is taking measures to control these risks through careful selection of acquisition targets and thorough due diligence [10]. - The company faces market competition risks from large international pharmaceutical companies, despite having strong product performance and technology [105]. - The company plans to enhance its marketing strategy by expanding its domestic and international sales networks to increase market share and ensure continuous revenue growth [105]. Acquisitions and Goodwill - The company has recognized the risk of goodwill impairment from the acquisition of 100% equity in Zhuhai Xiangle, which could significantly impact future profits if performance does not meet expectations [9]. - The company is focused on integrating business and technology cultures post-acquisition to minimize goodwill impairment risks [112]. - The company is aware of the potential risks of goodwill impairment from the acquisition of 100% equity in Zhuhai Xiangle, which could significantly impact profits if future profits do not meet expectations [112]. Operational Performance - The company's main business focuses on regenerative medicine, expanding into life health-related fields, and developing a "3+1" structure consisting of three core business segments: materials, cells, and pharmaceuticals, along with an incubation platform [32]. - Sales volume of self-produced products decreased by 28.98% to 34,643 units compared to the previous year, while sales volume of agency products surged by 3569.62% to 193,169 units due to the addition of Zhuhai Xiangle sales [32]. - The company’s investment in joint ventures resulted in a loss of 6.86 million yuan, which increased by 416.75% year-on-year [47]. - The company’s eye care segment achieved a revenue of 114.66 million yuan, supported by stable partnerships with core distributors [49]. - The company’s cell business generated a revenue of 3.50 million yuan, despite challenges in fully opening the market [50]. Compliance and Governance - The company has implemented a stock incentive plan to enhance management motivation and align interests among shareholders, the company, and incentive recipients [130]. - The company has not faced any penalties or rectification issues during the reporting period [129]. - The company has clarified media reports regarding its shareholders, confirming no relation to the individuals mentioned in the allegations [128]. - The company has committed to not transferring or entrusting the management of its shares for 36 months after the stock listing, with a maximum of 25% transfer allowed annually thereafter [123]. Future Outlook - The company predicts a cumulative net profit for the period from the beginning of the year to the next reporting period to be between 49.2 million and 58.4 million yuan, representing a growth of 60% to 90% compared to the same period last year [100]. - The estimated net profit for the period from July to September is projected to be between 23.5 million and 32.7 million yuan, indicating a growth of 54% to 114% compared to the same period last year [100]. - The company provided a positive outlook for the second half of 2017, projecting a revenue growth of 20% to 1.44 billion RMB [121].

Financial Performance - Total revenue for Q1 2017 reached ¥86,943,486.01, representing a 76.90% increase compared to ¥49,147,289.80 in the same period last year[7] - Net profit attributable to shareholders was ¥11,770,875.78, up 41.11% from ¥8,341,440.36 year-on-year[7] - Net profit excluding non-recurring gains and losses was ¥10,261,897.69, reflecting a 45.13% increase from ¥7,070,867.87 in the previous year[7] - Basic earnings per share rose to ¥0.04, a 33.33% increase from ¥0.03 in the previous year[7] - The company achieved a revenue of RMB 86.94 million in the reporting period, representing a year-on-year growth of 76.90%[33] - The net profit attributable to shareholders was RMB 11.77 million, an increase of 41.11% compared to the same period last year[33] - The company's consolidated net assets at the end of the reporting period amounted to RMB 1.449 billion, with a debt-to-asset ratio of 10.01%[33] - The company reported a gross profit margin of approximately 28.5%, compared to 15.5% in the previous year[81] Cash Flow and Assets - Net cash flow from operating activities was ¥697,004.78, an increase of 84.37% compared to ¥378,050.05 in the same period last year[7] - Operating cash inflow increased by 96.11% year-to-date compared to the same period last year, primarily due to the consolidation of Zhuhai Xiangle's operating cash inflow[41] - Cash and cash equivalents at the end of the period amount to CNY 299,634,877.40, down from CNY 323,302,942.73 at the beginning of the period[90] - The company reported a decrease in short-term borrowings from RMB 80,000,000.00 to RMB 60,000,000.00 during the reporting period[73] - The company utilized RMB 5,000,000 of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months[66] Investment and Development - The company is focusing on the commercialization of innovative technologies and developing new regenerative medical implant products, which may require significant market investment and longer cultivation periods[10] - The company aims to develop a pipeline of new products through a structured approach to research and development, ensuring a steady flow of innovative offerings to the market[12] - The company plans to raise 130 million yuan through a private placement for the implementation of a regional cell business operation platform project[22] - The company is expanding its business in regenerative medicine, focusing on three main sectors: materials, cells, and pharmaceuticals, along with an innovation incubation platform[33] - The company has incubated over 50 enterprises in the technology park, focusing on high-tech fields such as tumor cell therapy and recombinant proteins[53] Marketing and Brand Strategy - The company is expanding its marketing network both domestically and internationally to enhance brand recognition and market share[13] - The company is implementing a multi-channel marketing system to improve market share while adhering to new regulatory requirements in the medical device industry[21] - The company has established multiple corneal transplant centers and expanded its marketing team, enhancing sales performance in the eye care segment[50] Risk Management - The company is facing risks related to the rapid development of the biomaterials field, including the potential replacement and imitation of its core technologies[18] - The company has established a strict supplier evaluation system to mitigate risks associated with animal epidemics affecting raw material supply[19] - The company plans to enhance its quality management system to mitigate legal risks associated with product quality and safety[11] Shareholder Information - The company has a total of 19,614 common shareholders at the end of the reporting period[25] - The largest shareholder, Guangdong Zhiguang Biotechnology Co., Ltd., holds 20.71% of the shares, amounting to 55,044,822 shares, with 53,941,500 shares pledged[25] Employee and Organizational Development - The company has established a compensation incentive culture focused on "striving for excellence" to enhance employee motivation and creativity[17] - The company is committed to building a multi-level talent team by attracting top professionals globally and collaborating with universities for targeted talent development[17] - The company is adapting its organizational management structure to better align with its rapid expansion and ensure operational efficiency[16] Financial Challenges - Investment losses increased by 440.83% year-on-year, due to ongoing losses from the company's invested joint ventures[40] - Sales expenses grew by 116.29% year-on-year, largely due to the sales expenses of the subsidiary Zhuhai Xiangle[39] - Financial expenses decreased by 53.89% year-on-year, as a result of repaying part of the short-term bank loans, leading to reduced interest expenses[39] Government Support - The company received government subsidies totaling approximately CNY 940,400, including CNY 724,000 for R&D funding from the Guangzhou Finance Bureau[59]

Financial Performance - The company's operating revenue for 2016 was ¥312,789,660.41, representing a 38.30% increase compared to ¥226,172,526.18 in 2015[18]. - The net profit attributable to shareholders for 2016 was ¥65,371,072.14, a 3.16% increase from ¥63,366,042.79 in 2015[18]. - The total assets at the end of 2016 reached ¥1,636,692,595.19, showing a significant increase of 102.81% from ¥807,023,693.10 in 2015[18]. - The net assets attributable to shareholders at the end of 2016 were ¥1,388,145,390.63, up 138.91% from ¥581,044,881.83 in 2015[18]. - The company achieved a revenue of CNY 31,278.97 million in 2016, representing a growth of 38.30% compared to the previous year[54]. - The net profit attributable to shareholders was CNY 6,537.11 million, an increase of 3.16% year-on-year[54]. - The company reported a total of RMB 613.36 million in surplus funds from the marketing network expansion project[115]. - The company reported a net profit from the investment in Zhuhai Xiangle of ¥52,108,971.24 during the reporting period[106]. Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.8 RMB per 10 shares (including tax) based on a total of 265,155,701 shares[5]. - The proposed profit distribution for 2016 is RMB 0.80 per 10 shares, totaling RMB 21,212,456.08, based on a total share capital of 265,155,701 shares[152]. - The cash dividend for 2016 represents 32.45% of the net profit attributable to shareholders, compared to 0% in 2015[153]. - The company will not distribute profits or issue bonus shares for the 2015 fiscal year, with a total cash dividend of 21,212,456.08 yuan planned for 2016, representing 100% of the profit distribution[148]. Strategic Development - The company has established a five-year strategic development plan, detailing potential risks and countermeasures in its future outlook section[5]. - The company emphasizes the importance of risk awareness for investors regarding the differences between plans, forecasts, and commitments[5]. - The company aims to enhance its brand advantage and occupy a leading position in the regenerative implantable medical device sector through increased R&D investment and international publication of research findings[137]. - The company’s strategic plan for 2016-2020 emphasizes innovation in regenerative medicine and aims to enhance core competitiveness[120]. Research and Development - The company is focusing on developing new products around its two major technology platforms in regenerative medicine[27]. - The company continues to invest in R&D for stem cell applications and has formed a partnership with Peking University to enhance its capabilities in this area[58]. - Research and development (R&D) expenses amounted to CNY 18,964,372.19, representing 6.06% of total revenue, down from 10.98% in 2015[99]. - The company plans to increase R&D investment in 2017, focusing on new projects in corneal, hyaluronic acid, bone repair, and PEEK materials[121]. Mergers and Acquisitions - The company completed the acquisition of Zhuhai Xiangle, contributing a consolidated profit of ¥21,050,000, enhancing its marketing capabilities in ophthalmology[28]. - The company is actively pursuing mergers and acquisitions in the regenerative medicine sector to facilitate external expansion and product development[27]. - The company is in the process of a private placement to acquire 100% of Huide Pharmaceutical, which produces a highly effective antibiotic, Laxacillin Sodium[30]. - The company completed the acquisition of 100% equity in Zhuhai Xiangle Medical Equipment Co., Ltd. for ¥599,999,994.21, with an expected return of ¥52,000,000.00[106]. Market and Sales Performance - The sales volume of self-produced products reached 114,431 units, an increase of 5.54% compared to the same period last year[29]. - The sales volume of agency products surged to 148,237 units, reflecting a significant increase of 2325.74% due to the addition of new agency products[29]. - The company’s revenue from medical devices reached ¥301,084,078.17, representing a year-on-year increase of 135.80%[80]. - The gross margin for medical devices was 80.34%, which is a decrease of 3.35% compared to the previous year[80]. Risk Management - The company emphasizes strict quality control to mitigate legal risks associated with its medical implant products, ensuring compliance with internal management standards[130]. - The company faces market risks due to the long market cultivation period required for its innovative products, which may necessitate greater investment compared to traditional products[129]. - The company has established a strict supplier evaluation system and maintains good relationships with qualified suppliers across multiple locations to mitigate the risk of animal epidemic affecting raw material sourcing[138]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The company has established a three-tier team structure to strengthen management and internal controls[122]. - The company has implemented a stock incentive plan to enhance long-term motivation and governance structure, aiming to attract and retain key management and technical personnel[170]. Investor Relations - The company actively engaged in investor relations, responding to over 700 inquiries and participating in 23 investor strategy analysis meetings[74]. - The company is committed to maintaining long-term shareholder interests through sustainable development strategies[151]. - The company is currently undergoing a non-public stock issuance for major asset purchases, pending approval from the China Securities Regulatory Commission[143]. Innovation and Technology - The company has established a health technology park to incubate innovative companies in the regenerative medicine sector[196]. - The company launched the world's first biological cornea for restoring vision, benefiting many blind patients[195]. - The company is actively developing a cell therapy technology platform to promote tumor cell immunotherapy, establishing a unique "front store and back factory" model to enhance its market presence[126].

Financial Performance - Total assets increased to ¥1,717,649,595.92, a growth of 112.84% compared to the previous year[8] - Net profit attributable to shareholders reached ¥15,308,091.39, up by 9.30% year-on-year[8] - Total operating revenue for the period was ¥72,961,519.43, representing a 34.94% increase compared to the same period last year[8] - The company reported a net cash flow from operating activities of ¥30,605,158.52, down by 9.33% year-to-date[8] - The company achieved a revenue of 179.76 million yuan, representing a year-on-year growth of 27.76%[39] - The net profit attributable to shareholders was 30.75 million yuan, a slight decrease of 1.01% from the previous year[40] - The company reported a significant increase in revenue for Q3 2016, with a year-over-year growth of 25%[58] - The net profit for the third quarter reached CNY 14,649,992.18, compared to CNY 13,778,987.52 in the same period last year, reflecting a growth of approximately 6.3%[84] - The total profit for the third quarter was CNY 17,368,632.18, slightly up from CNY 17,105,600.63 in the previous year[84] Research and Development - The company is focusing on the development of innovative medical implant devices using advanced bio-materials, which may require significant market investment and longer cultivation periods[11] - The company plans to enhance its research and development efficiency by implementing project-based management to accelerate product development[11] - The company plans to enhance R&D investment to maintain its competitive edge in the rapidly evolving biomaterials sector, aiming to publish research results internationally[18] - The company is conducting clinical trials for several key projects, including bone filling materials and artificial corneas, with significant progress reported[35][37] - The R&D budget has been increased by 30% to support the development of innovative technologies and products[58] Market Expansion and Strategy - The company aims to expand its marketing network both domestically and internationally to increase market share and brand recognition[14] - The company aims to strengthen its marketing strategy through academic promotion and a multi-channel distribution model to increase market share[21] - The company is actively expanding its market presence, having trained nearly 100 doctors for corneal transplant surgeries across multiple provinces[40] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2017[58] - The company is exploring partnerships with international firms to enhance its global reach and distribution channels[58] Acquisitions and Investments - The company completed the acquisition of Zhuhai Xiangle Medical Co., Ltd., incurring merger costs of 5.37 million yuan[40] - The company is planning a non-public stock issuance to raise funds for significant asset acquisitions, pending shareholder and regulatory approvals[22] - The acquisition of 100% equity in Zhuhai Xianle Pharmaceutical Co., Ltd. has been completed for a cash consideration of 245 million RMB, representing 81.67% of the total investment[62] - The company has committed to increase its shareholding in Guanhao Biological, with a total investment of no less than 100 million RMB planned within six months after the stock resumes trading[59] Legal and Compliance - The company has identified potential legal risks associated with product quality control, which could impact operations if not managed properly[12] - The company is committed to maintaining strict quality management to mitigate legal risks related to product liability[12] - The company has committed to not providing financial assistance or loans to incentive recipients under the incentive plan since October 2013, and is strictly adhering to this commitment[53] - The company has emphasized the importance of adhering to regulatory requirements regarding share transfer restrictions[53] Financial Management - The company has established a comprehensive organizational management system to adapt to rapid expansion, focusing on improving governance structure and financial systems[17] - The company has a strict supplier evaluation system to mitigate risks associated with animal epidemics, ensuring stable sourcing of raw materials[19] - The company has reported a total of CNY 625,525,817.18 in current assets as of September 30, 2016, compared to CNY 389,660,217.25 at the beginning of the period[75] - The total amount of raised funds utilized by the company has reached 262.76 million RMB as of the reporting period[62] Shareholder Relations - The company emphasizes investor relations, responding to over 640 inquiries and maintaining communication through multiple platforms, including investor hotlines and online meetings[51] - A total of 1,676,098 shares will not be transferred for 12 months post-issuance, with a potential 50% transfer allowed after fulfilling 2016 performance compensation commitments[54] - The company has established a clear timeline for the release of shares based on performance metrics, enhancing accountability among shareholders[54] Operational Efficiency - The company has implemented new strategies to improve operational efficiency, aiming for a 15% reduction in costs by the end of 2016[58] - The company has reported a decrease in sales expenses to CNY 43,248,420.87 from CNY 47,209,793.69, reflecting a reduction of about 8.0% year-over-year[94] - The company incurred financial expenses of CNY 4,687,656.53, compared to a financial income of CNY 1,293,975.95 in the previous year, indicating a significant shift in financial performance[94]

Financial Performance - The company reported a revenue of RMB 100 million for the first half of 2016, representing a year-on-year increase of 20% compared to the same period in 2015[17]. - The gross profit margin for the first half of 2016 was 60%, which is an improvement from 55% in the same period last year[17]. - The company reported a net profit of RMB 30 million for the first half of 2016, up 30% from the same period last year[17]. - Total revenue for the reporting period reached ¥106,802,851.80, an increase of 23.28% compared to the same period last year[18]. - Net profit attributable to ordinary shareholders decreased by 9.48% to ¥15,439,827.34, while the net profit after deducting non-recurring gains and losses fell by 34.45% to ¥9,438,629.20[18]. - The company achieved operating revenue of 106.80 million yuan in the first half of 2016, representing a year-on-year growth of 23.28% due to a significant increase in agency product revenue[37]. - The net profit attributable to shareholders was 15.44 million yuan, a decrease of 9.48% compared to the same period last year, primarily due to expenses related to a major asset restructuring and increased financial costs[37]. - Operating costs rose by 82.87% to 24.45 million yuan, mainly driven by increased costs associated with agency products and cell business production[39]. - The company reported a total comprehensive income of CNY 14,742,988.53, compared to CNY 16,673,155.37 in the previous year, reflecting a decline of 11.6%[151]. - Basic earnings per share decreased to CNY 0.06 from CNY 0.07, indicating a reduction in profitability per share[151]. Investment and Development - The company plans to invest RMB 50 million in research and development for new medical products in the upcoming year[17]. - The company is focused on developing new regenerative medical implant products using advanced original technology, which may require significant market investment and longer cultivation periods[24]. - The company plans to enhance its research and development efficiency by implementing project-based management and various incentive mechanisms[24]. - The company aims to leverage its national engineering laboratory to increase R&D investment and maintain its competitive edge in the regenerative implant medical device sector[31]. - The company is actively pursuing partnerships with top industry professionals and academic institutions to build a multi-tiered talent pool[30]. - The company is developing a product pipeline strategy to ensure a steady flow of new products from development to market launch[27]. Market Expansion - The company has set a revenue target of RMB 250 million for the full year of 2016, which would represent a 25% growth from 2015[17]. - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of 2017[17]. - The company aims to expand its marketing network both domestically and internationally to increase market share and ensure continuous revenue growth[28]. - The company is implementing a multi-channel marketing strategy to improve market share and ensure compliance with evolving regulatory frameworks in the medical device industry[34]. - The company is actively expanding its market presence with new product developments and collaborations in clinical applications[57]. Regulatory and Compliance - The company has identified potential legal risks associated with product quality control, which could significantly impact operations and reputation if not managed properly[25]. - The company is committed to strict quality management and adherence to quality control systems to mitigate product-related legal risks[25]. - The company has received conditional approval from the China Securities Regulatory Commission for its asset purchase and fundraising plan[44]. - The company has not reported any non-standard audit opinions for the current reporting period[84]. - The company has committed to not engaging in any competitive activities that may affect its operations and development[112]. Financial Management - The company plans to enhance its governance structure and improve financial systems to adapt to rapid expansion and mitigate management risks[30]. - The company has implemented a stock incentive plan to enhance the long-term motivation of management and key personnel, aiming to align interests among shareholders and incentivize performance[93]. - The company has not engaged in any major non-fundraising investment projects during the reporting period[79]. - The company has not reported any major operational changes or strategic shifts during the reporting period[106]. - The company has committed to not providing financial assistance or guarantees for the rights obtained by incentive objects under the stock incentive plan[111]. Shareholder Information - The total number of shareholders at the end of the reporting period is 17,471[128]. - Guangdong Zhiguang Biotechnology Co., Ltd. holds 24.01% of shares, totaling 59,244,822 shares, with a decrease of 12,677,178 shares during the reporting period[128]. - The top ten unrestricted shareholders include Huaron International Trust Co., Ltd. with 5,587,066 shares and Guangdong Zhiguang Biotechnology Co., Ltd. with 5,303,322 shares[129]. - The total number of shares decreased from 246,995,000 to 246,768,126 due to the repurchase and cancellation of 226,874 restricted stocks[121]. - The company plans to unlock 25% of the remaining restricted shares annually at the beginning of each year[126]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period amount to ¥202,610,452.51, down from ¥288,428,492.92 at the beginning of the period, representing a decrease of approximately 29.8%[140]. - The company reported a cash flow from operating activities of 29.80 million yuan, a 7.02% increase year-on-year[39]. - The cash flow from financing activities showed a net outflow of -150,317,963.55 CNY, worsening from -24,944,738.60 CNY, indicating a decline of approximately 503%[161]. - The company’s cash and cash equivalents decreased by 42,858,459.88 CNY during the period, compared to a decrease of 15,047,756.30 CNY in the previous period, reflecting a decline of about 185%[161]. Research and Clinical Trials - The company completed clinical trials for the drug Fenemod, which is expected to be submitted for new drug application soon, showing good efficacy and low recurrence rates[45]. - The company is currently conducting clinical trials for bone filling materials, with the enrollment phase nearing completion[57]. - The company has obtained ethical approval from three clinical institutions for its hyaluronic acid project, which is now in the postoperative follow-up stage[57]. - The company has successfully completed three clinical enrollments for its artificial cornea project and is currently in the postoperative observation period[57]. - The company’s subsidiary, Yudeking, has successfully performed 7 surgeries using its decellularized corneal implant, with all patients showing improvement after one month[58]. Government Support and Subsidies - The company received a total of 8.8441 million RMB in government subsidies during the reporting period, including 2 million RMB for the construction of the "Crown Life and Health Maker Space"[49]. - The company has received a total of ¥60.10 million in various subsidies and grants from local government and research institutions[60]. Industry Outlook - The medical device industry in China is projected to grow from 2 trillion RMB to over 8 trillion RMB by 2020, benefiting from national health service policies[63]. - The medical device market in China was approximately 308 billion RMB in 2015, with an 18-fold increase over 15 years, indicating significant growth potential[64]. - The market for tumor immunotherapy drugs is expected to reach $35 billion within the next decade[68].

Financial Performance - Total revenue for Q1 2016 was ¥49,147,289.80, representing a 24.43% increase compared to ¥39,497,184.85 in the same period last year[8] - Net profit attributable to shareholders decreased by 7.39% to ¥8,341,440.36 from ¥9,006,850.48 year-on-year[8] - Net cash flow from operating activities dropped significantly by 96.77% to ¥378,050.05 from ¥11,713,450.05 in the previous year[8] - Operating revenue increased by 24.43% year-on-year, mainly due to revenue of RMB 6.84 million from products represented by the subsidiary Shanghai Guanhao[34] - Operating costs increased by 107.07% year-on-year, driven by revenue growth and lower average gross margins on represented products[34] - Sales expenses grew by 33.43% year-on-year, reflecting ongoing market investments in cell projects[34] - Financial expenses surged by 236.59% year-on-year, primarily due to interest expenses from a short-term loan of RMB 100 million[34] - Total profit for the period was ¥8,259,119.67, down from ¥10,314,334.78, indicating a decrease of approximately 20.0% year-over-year[75] - The company reported a net profit of CNY 65,276,569.50 for the year 2015, with a distributable profit of CNY 223,279,108.29 after accounting for statutory reserves and previous distributions[59] Assets and Liabilities - Total assets increased by 1.65% to ¥820,357,876.58 compared to ¥807,023,693.10 at the end of the previous year[8] - Total current assets decreased from 389,660,217.25 to 282,554,095.18, a decline of approximately 27.4%[66] - Non-current assets rose from 417,363,475.85 to 537,803,781.40, an increase of approximately 28.8%[67] - Total liabilities increased from 186,406,295.91 to 190,862,327.31, a rise of approximately 2.4%[68] - Owner's equity increased from 620,617,397.19 to 629,495,549.27, showing an increase of about 1.4%[69] Cash Flow - Cash and cash equivalents decreased by 39.83% compared to the end of last year, primarily due to a payment of RMB 50 million for the investment in a fund and another RMB 50 million for establishing a bio-industry investment fund[32] - Cash flow from operating activities increased to ¥58,855,298.17 from ¥51,283,306.64, showing a growth of approximately 14.5% year-over-year[81] - The net cash flow from operating activities was negative at -31,606,046.23 RMB, compared to a positive 2,979,565.66 RMB in the previous period[85] - Total cash outflow from investing activities amounted to 119,639,589.84 RMB, significantly higher than 6,738,397.92 RMB in the previous period[82] - The company’s cash and cash equivalents decreased by 114,885,060.05 RMB during the period, contrasting with an increase of 39,832,546.93 RMB in the previous period[83] Research and Development - The company is focused on developing innovative medical implant products using advanced original technology, which may require greater market investment and longer cultivation periods[10] - The company plans to enhance its research and development efficiency by implementing project-based management to accelerate product development[10] - The company is advancing several key R&D projects, including clinical trials for bone filling materials and artificial corneas, with the latter having completed two clinical enrollments[36] - The subsidiary, Youdeqing, received regulatory approval for its decellularized corneal patch, which is expected to enhance the company's product offerings and market competitiveness[38] - The company has established a strong R&D team in regenerative medicine, collaborating with renowned universities and clinical institutions on eight PI projects, focusing on biocompatibility and immune evaluation of regenerative materials[39] Market Strategy - The company aims to expand its marketing network both domestically and internationally to increase market share and ensure continuous revenue growth[13] - The company will focus on academic promotion as a core marketing strategy, combining academic conferences with product applications to increase market share[20] - The company plans to acquire 100% of Zhuhai Xiangle Pharmaceutical Co., Ltd. to strengthen its position in the ophthalmology sector and enhance its marketing channels[39] - The company aims to enhance its market competitiveness in the ophthalmology field through the acquisition of Zhuhai Xiangle Pharmaceutical Co., Ltd.[21] Corporate Governance - The company has not faced any product liability claims or related legal disputes since its establishment, but it remains vigilant about potential legal risks[11] - The company is committed to improving its quality management system to ensure product safety and compliance with regulatory standards[11] - The company recognizes the need to adapt its management structure to support rapid growth and expansion, ensuring operational efficiency and profitability[15] - The company plans to establish a scientific performance evaluation and compensation incentive mechanism to enhance employee motivation and create a unique corporate culture[16] - The company has a non-competition agreement in place with its major shareholders to avoid conflicts of interest[52] Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 23,923, with the top 10 shareholders holding a combined 37.74% of shares[25] - Guangdong Zhiguang Biological Technology Co., Ltd. holds 29.15% of shares, with 61,441,500 shares pledged[25] - The controlling shareholders committed to not transferring their shares for six months after the increase[53] Fundraising and Investments - Total fundraising amount reached CNY 247.26 million in the first quarter[55] - Cumulative investment of raised funds amounted to CNY 95.41 million, representing 38.54% of the total[55] - The company is actively pursuing external investments and has made significant progress in acquiring Zhuhai Xiangle, which is expected to meet the standards for major asset restructuring[42] - The company utilized CNY 4,150.00 million from excess raised funds for permanent working capital, with CNY 3,651.18 million accounting for 26.18% of the total excess funds[56] Compliance and Risk Management - The company has not reported any violations regarding external guarantees during the reporting period[61] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[62] - The company is exposed to risks from policy changes in the medical device industry, which could affect product sales regions and prices[19]

Financial Performance - The company's operating revenue for 2015 was ¥226,172,526.18, representing an increase of 18.82% compared to 2014[20]. - The net profit attributable to shareholders for 2015 was ¥63,366,042.79, reflecting a growth of 26.47% year-over-year[20]. - The net cash flow from operating activities for 2015 was ¥67,865,962.76, which is a 3.69% increase from the previous year[20]. - The total assets at the end of 2015 amounted to ¥807,023,693.10, marking a 30.26% increase compared to the end of 2014[20]. - The company achieved a basic earnings per share of ¥0.260 in 2015, up 30.00% from ¥0.20 in 2014[20]. - The weighted average return on equity for 2015 was 11.44%, an increase of 1.44% from the previous year[20]. - The company reported a total net profit of ¥10,003,546.33 from non-recurring gains and losses in 2015, compared to ¥7,086,397.42 in 2014[26]. - Total revenue for 2015 reached ¥226,172,526.18, an increase of 18.82% compared to ¥190,356,664.64 in 2014[58]. - Revenue from the medical device sector was ¥221,718,751.62, accounting for 98.03% of total revenue, with a year-on-year growth of 17.16%[58]. - The company reported a net profit of CNY 65,276,569.50 for the year 2015, with a legal surplus reserve of CNY 6,527,656.95 deducted, resulting in a distributable profit of CNY 223,279,108.29[134]. Profit Distribution - Guanhao Biotech reported a profit distribution plan for 2015, stating that the undistributed profits will not be allocated, and no bonus shares will be issued[6]. - The company decided not to distribute profits or issue bonus shares for the year 2015, opting to retain all undistributed profits for operational and developmental purposes[135]. - The independent directors agreed with the decision to not distribute profits in 2015, emphasizing the focus on operational and developmental needs[137]. - The company's cash dividend for 2014 was set at CNY 1.00 per 10 shares, with a total cash dividend amounting to CNY 12,340,000[130]. - The company's cash dividend policy has shifted significantly, with no dividends declared in 2015 despite positive earnings[140]. Strategic Development - The company emphasized that the strategic development plan for the next five years does not constitute a substantive commitment to investors, highlighting the need for risk awareness[6]. - The company plans to expand its product reach to more county-level hospitals, building on its existing presence in major city hospitals[29]. - The company aims to strengthen R&D investment in 2016 to improve product development efficiency and meet strategic needs[105]. - The company plans to expand its product line, seeking breakthroughs in products like pleura, wound dressings, and breast patches while enhancing its cell storage business[107]. - The company will enhance channel construction in neurosurgery, orthopedics, ophthalmology, and plastic surgery, aiming to increase market coverage and penetration[108]. - The company is focused on integrating external resources and technologies to enhance product competitiveness and innovation[105]. - The company is actively pursuing mergers and acquisitions in the regenerative medicine sector to enhance its product line and market capabilities, aiming to create new profit growth points[110]. Market Position and Competition - The company holds approximately 40% market share in the domestic hard dura mater repair market, with annual sales growth of ¥20-30 million since 2007[29]. - The company is exposed to market competition risks from large international pharmaceutical companies, despite having strong product performance and technological advantages[116]. - The Chinese medical device market has grown from 65.9 billion RMB in 2008 to 255.6 billion RMB in 2014, with a compound annual growth rate of 25.35%[100]. - The Chinese cell therapy market is expected to see significant breakthroughs in the next decade, with a large patient base for conditions like corneal transplants and severe liver disease[103]. Research and Development - The company has applied for a total of 100 patents, with 89 already granted, including 70 invention patents and 19 utility model patents[50]. - The company's R&D investment for 2015 amounted to ¥24,839,752.65, representing 10.98% of total revenue, a decrease from 15.73% in 2014[74]. - The number of R&D personnel increased to 49, accounting for 15.00% of the total workforce, down from 16.00% in 2014[74]. - The company has made progress in various R&D projects, including the completion of animal experiments for its shaping pad and improvements in the nasal bridge prosthesis[73]. Acquisitions and Investments - The company acquired 80% equity in Mingxing Biotechnology through capital increase and equity transfer, enhancing its influence in the cell therapy field[41]. - The company invested RMB 15 million to acquire 80% equity in Shenyou Medical, which specializes in the industrialization of human allogeneic decellularized cartilage scaffolds[42]. - The company increased its investment in Youdeqing Biotechnology by RMB 30 million, raising its equity stake to 33.33%[43]. - The company acquired 60.21% equity in Wuhan Beidu through a share transfer and capital increase, enhancing its product line and market competitiveness[45]. - The company has completed the construction of two standardized human cell production platforms, covering approximately 1,200 square meters, and obtained GMP certification[31]. Risk Management - The company faces market risks due to the long market cultivation period required for its innovative products, which may necessitate greater market investment compared to traditional products[113]. - Legal risks are present due to the strict quality control requirements for medical implant devices, which could significantly impact the company's operations if quality issues arise[114]. - The lengthy process for obtaining product registration certificates poses a risk to the launch of new products, potentially affecting future business performance[115]. - The company has established a strict supplier evaluation system and maintains good relationships with qualified suppliers in multiple locations to mitigate risks from potential animal epidemics[121]. Corporate Governance - The company has established a restrictive stock incentive plan to enhance the motivation and creativity of its management and technical personnel[149]. - The company has appointed new independent directors, Wei Jianguo and Fu Qilin, effective May 15, 2015[198]. - The company’s management team remains stable, with no significant changes in executive positions reported[198]. - The company has not faced any major litigation or arbitration matters during the reporting period[146]. Shareholder Information - The total number of shareholders at the end of the reporting period was 15,471, with the largest shareholder, Guangdong Zhiguang Biotechnology Co., Ltd., holding 29.12% of the shares[186]. - The top ten shareholders included various entities, with Guangdong Zhiguang Biotechnology Co., Ltd. holding 71,922,000 shares and accounting for 29.12% of the total shares[186]. - The company’s controlling shareholder is Guangdong Zhiguang Biotechnology Co., Ltd., which focuses on research and consulting in biomedical materials and health food[189].

Financial Performance - Total operating revenue for the reporting period was ¥54,070,411.65, reflecting a year-on-year growth of 19.05%[7] - Net profit attributable to shareholders was ¥14,005,589.46, up 13.03% from the same period last year[7] - Basic earnings per share decreased by 40.00% to ¥0.06, while diluted earnings per share also fell by 40.00% to ¥0.06[7] - The company reported a weighted average return on equity of 2.60%, a slight increase of 0.14% compared to the previous year[7] - Total operating revenue for the current period reached ¥54,070,411.65, an increase of 18.3% compared to ¥45,417,336.00 in the previous period[66] - Total operating costs amounted to ¥39,429,701.72, up 23.2% from ¥31,989,123.98 in the prior period[67] - Operating profit for the current period was ¥13,901,015.70, reflecting a growth of 7.5% from ¥12,924,060.00 in the previous period[68] - Net profit for the current period was ¥13,778,987.52, an increase of 11.2% compared to ¥12,390,757.33 in the prior period[68] - The total profit for the period was CNY 36,044,946.08, which is a 4.3% increase from CNY 34,554,758.17 in Q3 2014[75] Assets and Liabilities - Total assets at the end of the reporting period reached ¥714,278,591.93, an increase of 15.29% compared to the previous year[7] - The total current assets increased to CNY 326,492,982.17 from CNY 285,327,215.26, representing a growth of approximately 14.5%[58] - The total non-current assets increased to CNY 387,785,609.76 from CNY 334,209,865.31, reflecting a growth of around 16.0%[59] - Current liabilities increased to CNY 68,866,126.98 from CNY 30,299,050.48, showing a significant rise of about 127.5%[60] - The total liabilities rose to CNY 123,216,988.43 from CNY 87,924,847.51, which is an increase of approximately 40.0%[60] - The equity attributable to the parent company increased to CNY 552,121,970.46 from CNY 531,612,233.06, reflecting a growth of about 3.9%[61] Investment and Acquisitions - The company is pursuing a significant asset acquisition in the ophthalmology field, with preliminary agreements already in place, although uncertainties remain[21] - The company has completed the payment of 13.58 million yuan for the equity transfer of Mingxing Biotechnology, now holding 80% of its shares[40] - The company plans to invest 36 million yuan to acquire an additional 16% stake in Youdeqing, increasing its ownership to 49.33%[41] - The company intends to acquire a stake in Wuhan Beidu Biotechnology for 44.055 million yuan, aiming to hold 60.21% of the company post-investment[41] - The company has successfully completed 24 patient surgeries using engineered cartilage transplantation technology and 16 clinical treatments using in-situ tissue regeneration technology, totaling 40 patients treated[40] Research and Development - The company is focused on developing innovative medical implant products using advanced biocompatible materials, which may require significant market investment and longer cultivation periods[10] - The company plans to enhance its research and development efficiency by implementing project-based management to accelerate product development timelines[10] - The company is committed to developing new products that meet regulatory requirements, with a focus on market research to ensure successful product launches[12] - The company has developed a series of leading domestic products through its proprietary core technologies and aims to maintain its competitive edge in the rapidly evolving biomaterials sector[17] Marketing and Sales - The company aims to expand its marketing network both domestically and internationally to increase market share and brand recognition[14] - The company is focusing on academic promotion as a core marketing strategy to increase market share and improve product application among healthcare professionals[20] - Sales volume of self-produced medical devices reached 70,401 units, a 6.81% increase year-on-year[33] - Sales volume of agency products surged by 706.26% year-on-year, reaching 3,862 units, driven by increased sales of agency products[33] - The company is preparing to enter the public hospital market for breast patches and is about to commence sales[38] Financial Management - The company has not made any adjustments to its profit distribution policy during the reporting period, ensuring the interests of all shareholders are protected[53] - The company has ensured that the use of fundraising is reasonable, compliant, and disclosed in a timely and accurate manner[51] - The total amount of raised funds is 247.26 million RMB, with 14.95 million RMB invested in the current quarter[49] - Cumulative investment of raised funds reached 95.41 million RMB, achieving 90.07% of the planned investment for the regenerative medical implant project[49] - The company has utilized surplus funds from various projects, including 613.36 million RMB from the marketing network expansion project and 377.50 million RMB from the national engineering laboratory project[51] Shareholder Information - The total number of shareholders at the end of the reporting period was 14,451, indicating a broad base of ownership[23] - The largest shareholder, Guangdong Zhiguang Biotechnology Co., Ltd., holds 29.12% of shares, amounting to 71,922,000 shares, with a significant portion pledged[23] - The company has a diverse shareholder base, with the top ten shareholders collectively holding a substantial percentage of the company's equity[24] - The company has not engaged in any repurchase transactions among its top shareholders during the reporting period[24] Legal and Compliance - The company has identified potential legal risks associated with product quality control, emphasizing the importance of maintaining strict quality management systems[11] - The company has signed a non-competition agreement with its controlling shareholders to avoid engaging in competing businesses[46] - The company has a commitment to ensure that any legal issues related to patents will be fully borne by the actual controllers[46] Operational Efficiency - The company plans to enhance its governance structure and financial systems to adapt to rapid expansion, ensuring operational efficiency and profitability[16] - The company has established a strict supplier evaluation system to mitigate risks associated with potential animal epidemics affecting raw material supply[18] - Changes in medical device procurement regulations could impact the company's sales in certain regions, highlighting the need for adaptability to new policies[19] Investor Relations - The company maintains active communication with investors, having responded to over 1,100 inquiries and received more than 70 investor hotline calls[43] - The controlling shareholder, Zhu Weiping, plans to increase holdings of the company's shares by no less than 100 million RMB within six months after the stock resumes trading[47] - Zhu Weiping and Xu Guofeng committed to not transferring their shares within six months after the completion of the share increase[47] - The company is actively responding to market fluctuations to protect investor interests and enhance confidence in its future development[46]

Financial Performance - Total revenue for the reporting period was ¥86,630,919.16, an increase of 8.86% compared to the same period last year[18]. - Net profit attributable to ordinary shareholders was ¥17,056,145.82, reflecting a growth of 6.42% year-over-year[18]. - Net cash flow from operating activities increased significantly by 81.30% to ¥27,844,336.17[18]. - Basic earnings per share rose by 16.67% to ¥0.07[18]. - Total assets at the end of the reporting period reached ¥656,202,127.65, up 5.92% from the previous year[18]. - The company achieved operating revenue of 86.63 million yuan, an increase of 8.86% compared to the same period last year[41]. - The net profit attributable to shareholders was 17.06 million yuan, reflecting a growth of 6.42% year-on-year, primarily due to enhanced market channel optimization and internal management[41]. - The company reported a significant increase in cash flow from operating activities, amounting to 27.84 million yuan, which is an 81.30% increase driven by higher sales collection[43]. - The sales volume of self-produced medical devices reached 47,969 units, up 11.10% year-on-year, while agency product sales surged by 90.71% to 513 units[44]. Research and Development - The company is focused on developing innovative medical implant products using advanced original technology, which may require greater market investment and longer cultivation periods[25]. - The company plans to enhance its research and development efficiency by implementing project-based management to accelerate product development[26]. - The company aims to leverage its national engineering laboratory to increase R&D investment and maintain its competitive edge in the regenerative medical device sector[33]. - Research and development expenses decreased by 7.32% to 12.74 million yuan, indicating a focus on cost management[43]. - The company has built a medical biological material technology platform and is developing a cell therapy technology platform, focusing on regenerative medicine[46]. Market Expansion and Strategy - The company aims to expand its marketing network both domestically and internationally to increase market share and ensure continuous revenue growth[30]. - The company has established a multi-channel marketing system to improve market share, combining academic promotion with product application[37]. - The company is actively seeking suitable partners for market expansion, having signed an agency agreement with Hunan Haojiya Health Management Co., Ltd. for exclusive distribution of immune cell storage products in Hunan Province[45]. - The company is pursuing a major asset acquisition in the ophthalmology field to strengthen its market position, although this initiative remains uncertain[38]. Financial Management and Governance - The company plans to enhance its governance structure and improve financial systems to adapt to rapid business growth and mitigate management risks[32]. - The company has not made any retrospective adjustments or restatements to previous accounting data due to changes in accounting policies or corrections of accounting errors[17]. - The company’s fundraising usage was reported as reasonable and compliant, with timely and accurate disclosures[83]. - The company has committed to strict quality control to mitigate risks associated with product safety and compliance with regulatory standards[27]. Shareholder and Equity Information - The company implemented a profit distribution plan, distributing 1.00 RMB per 10 shares in cash and increasing the total share capital to 246,995,000 shares through a capital reserve conversion[92]. - The company’s total share capital after the capital increase will be 246,995,000 shares, reflecting a significant expansion of its equity base[130]. - The total number of shareholders at the end of the reporting period was 16,688[138]. - The company’s major shareholders have committed to not transferring or managing their shares for specified periods, ensuring stability in shareholding[117]. Legal and Compliance - The company has not faced any product liability claims or related legal disputes since its establishment, but it remains vigilant about potential legal risks[28]. - There were no significant litigation or arbitration matters during the reporting period[96]. - The company did not engage in any major non-fundraising investment projects during the reporting period[85]. Operational Updates - The company has successfully completed 32 surgeries using human cell cartilage repair technology, achieving high patient satisfaction and recognition from treatment experts[48]. - The company has completed the registration of breast patches, with the registration number 20153460482, and submitted applications for expanding the clinical use of thoracic repair membranes[54]. - Clinical trials for the bone filling material are ongoing, with 107 cases enrolled[64]. - The company has completed clinical trials for the biological artificial cornea, showing excellent treatment effects for infectious keratitis[66]. Financial Position and Assets - The company's cash and cash equivalents increased to ¥249,203,981.66 from ¥226,855,629.50, representing an increase of approximately 9.3%[150]. - Total current assets rose to ¥309,320,800.63 from ¥285,327,215.26, marking an increase of approximately 8.4%[151]. - Total liabilities decreased to ¥84,403,452.25 from ¥87,924,847.51, a reduction of about 4.8%[152]. - The company's equity attributable to shareholders rose to ¥536,732,593.91 from ¥531,612,233.06, an increase of approximately 1.4%[153]. Challenges and Market Conditions - The company faces challenges from foreign companies dominating the high-end market, with multinational corporations like Johnson & Johnson and Medtronic controlling a significant share[72]. - The domestic medical device market is projected to exceed 340 billion RMB by 2015, with a compound annual growth rate of 20%-30%[70]. - The company is positioned to benefit from the supportive policies for the medical device industry, which is expected to continue its rapid growth[70].