包头东宝生物技术股份有限公司 2019 年年度报告全文 包头东宝生物技术股份有限公司 2019 年年度报告 2020-019 2020 年 04 月 1 包头东宝生物技术股份有限公司 2019 年年度报告全文 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人王军、主管会计工作负责人郝海青及会计机构负责人(会计主管 人员)杜丽声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本年度报告中涉及的未来计划等前瞻性陈述，不构成公司对投资者的实质 承诺，投资者及相关人士均应当对此保持足够的风险认识，并且应当理解计划、 预测与承诺之间的差异。 (一)公司明胶和胶原蛋白产能进一步扩大可能导致产品销售风险 截至本报告出具日，公司"年产 3500 吨明胶扩建至 7000 吨明胶项目"和"年 产 2000 吨胶原蛋白项目"已经投产，明胶年产能达 13500 吨，胶原蛋白年产能 达 3000 吨。新增产能对公司的市场开拓能力提出了更高的要求，如果项 ...

Financial Performance - Operating revenue for the reporting period was ¥108,075,675.55, representing a year-on-year increase of 17.32%[8] - Net profit attributable to shareholders of the listed company was ¥6,179,054.09, up 2.90% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥5,500,175.84, a slight increase of 0.83% year-on-year[8] - Basic earnings per share for the reporting period were ¥0.0134, an increase of 3.88% year-on-year[8] - The company achieved a revenue of CNY 339,104,382.18 in the first three quarters of 2019, representing a year-on-year growth of 5.22%[25] - Operating profit for the same period was CNY 27,576,557.83, an increase of 2.67% compared to the previous year[25] - The total profit amounted to CNY 30,073,895.18, reflecting a growth of 12.03% year-on-year[25] - The net profit attributable to shareholders reached CNY 25,872,173.47, marking a 13.55% increase from the previous year[25] - The total operating income for the year-to-date period was ¥339,104,382.18, up from ¥322,296,512.05, indicating a growth of approximately 5.2%[62] - The total operating costs for the year-to-date period were ¥314,894,718.74, compared to ¥296,253,938.21 in the previous year, which is an increase of about 6.3%[62] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,250,215,773.63, an increase of 4.29% compared to the end of the previous year[8] - Net assets attributable to shareholders of the listed company amounted to ¥982,713,675.24, reflecting a growth of 30.88% year-on-year[8] - Total current assets decreased to CNY 466.5 million from CNY 477.2 million, a decline of approximately 1.5%[46] - Total non-current assets increased to CNY 783.71 million from CNY 721.54 million, an increase of approximately 8.6%[46] - Total liabilities decreased to CNY 267.50 million from CNY 447.86 million, a decrease of approximately 40.2%[47] - Total equity increased to CNY 982.71 million from CNY 750.88 million, an increase of about 30.8%[48] - The company reported a total liabilities decrease to CNY 267,204,067.60 from CNY 447,188,265.71 year-over-year[53] - The total assets of the company reached CNY 1,255,289,411.45, compared to CNY 1,207,908,499.37 in the previous year[53] Cash Flow - The net cash flow from operating activities showed a significant decline, amounting to -¥55,624,350.37, a decrease of 405.16% compared to the previous year[8] - Cash flow from operating activities showed a net outflow of ¥55,624,350.37, contrasting with a net inflow of ¥18,228,225.75 in the same period last year[73] - Investment activities resulted in a net cash outflow of ¥133,876,970.61, compared to a smaller outflow of ¥25,829,582.16 in the previous year[73] - Financing activities generated a net cash inflow of ¥189,647,263.66, significantly higher than the previous year's inflow of ¥35,350,255.93[73] - The ending cash and cash equivalents balance was ¥67,295,696.78, down from ¥81,931,267.51 in the previous year[73] Research and Development - The company has established a strong focus on R&D, with 12 research labs dedicated to various aspects of collagen and gelatin applications, resulting in 3 new authorized invention patents in 2019[28] - The purification and separation project for bone collagen peptides has shown promising results, indicating that the isolated small peptides promote the proliferation and differentiation of osteoblasts[29] - The company has confirmed the experimental plan for the second animal trial in the study of the tumor-inhibiting mechanism of bone collagen peptides, with patents granted in both China and the US[30] - The electrospun gelatin fiber hemostatic material project is progressing, with the purification plant completed and product registration preparations underway, aiming for production by the end of the year[31] - The development of ultra-low endotoxin gelatin preparation technology is underway, targeting applications in absorbable hemostatic cotton and tissue engineering scaffolds[32] Market Expansion and Product Development - The company is actively pursuing market expansion in the health and beauty sectors, including the development of collagen-based skincare products[27] - The company has successfully developed a new product, "compound bone collagen," primarily used in the frozen prepared meat processing industry, and has obtained the necessary food production license[36] - The company is committed to high-quality development, focusing on the "medical, food, beauty, and health" sectors to enhance product value and meet market demands[35] - The company has initiated research on the high-tech applications of collagen protein in various fields, including biomedicine and food packaging[33] Financial Management - The company's financial expenses decreased by 77.92% to CNY 387,562.32, attributed to reduced bank loans[21] - The company reported a financial expense of -CNY 44,773.89, a significant improvement from CNY 675,494.83 in the previous period[55] - Financial expenses decreased significantly to -¥33,225.44 from ¥675,963.71, indicating improved financial management[59] - The company has implemented a clear and stable cash dividend policy, ensuring transparency and protecting shareholders' rights[39]

Financial Performance - The total operating revenue for the reporting period was CNY 231,028,706.63, a 0.37% increase compared to the same period last year [24]. - The net profit attributable to shareholders of the listed company was CNY 19,693,119.38, representing a 17.36% increase year-on-year [24]. - The net cash flow from operating activities was CNY -49,622,167.79, a decrease of 330.35% compared to the previous year [24]. - The total assets at the end of the reporting period amounted to CNY 1,292,473,846.60, an increase of 7.82% from the end of the previous year [24]. - The net assets attributable to shareholders of the listed company reached CNY 976,117,321.15, reflecting a 30.00% increase compared to the previous year [24]. - The company achieved an operating profit of CNY 20,314,562.63, which is a 1.61% increase from the previous year [34]. - The three period expenses (selling, administrative, and financial expenses) decreased by 4.19% to CNY 20,395,594.52 compared to the previous year [34]. - The company reported a total investment of RMB 74,085.8 million in various projects, with RMB 58,448.9 million already utilized, representing a utilization rate of 78.8% [86]. - The total liabilities decreased to CNY 316,356,525.45 from CNY 447,863,704.25, reflecting a reduction of approximately 29.39% [171]. - The total equity increased to CNY 982,591,679.49 in the first half of 2019, compared to CNY 760,720,233.66 in the same period of 2018, marking a growth of 29.2% [176]. Investment and Expansion - The company raised a total of RMB 232.2 million from a private placement, with the net proceeds allocated entirely to investment projects, aiming for an annual production capacity of 13,500 tons of gelatin and 3,000 tons of collagen after project completion [6]. - The expansion project for gelatin production capacity from 3,500 tons to 7,000 tons is nearing completion, with equipment debugging currently underway [6]. - The company is expanding its production capacity with a project to increase gelatin output from 3,500 tons to 7,000 tons and a new collagen protein project with an annual capacity of 3,000 tons [52]. - The company has invested RMB 36,073,000.00 in a collagen project, with 70.00% of the funding utilized as of the reporting period [80]. - The company has a project for a collagen industry demonstration base, with an investment of RMB 8,572,050.00, which is 78.00% funded [80]. - The company plans to accelerate the investment progress of fundraising projects to quickly realize expected benefits [104]. Research and Development - The company is actively investing in R&D, with a focus on new product development and technology innovation to meet market demands [43]. - The company has developed a patented method for producing collagen peptides with anti-cancer properties, which is expected to enhance its position in the pharmaceutical health sector [45]. - The company has made significant progress in R&D, including the development of a new medical cold compress product and advancements in collagen peptide purification [54]. - Research and development investment surged by 176.86% to RMB 11.06 million, reflecting the company's commitment to enhancing its R&D capabilities [65]. - The company is focusing on research and development of new products and technologies to enhance its market position [138]. Market Strategy - The company plans to enhance market expansion efforts, particularly in the rapidly growing health markets, leveraging the high-quality characteristics of its collagen products [7]. - The company aims to strengthen its brand "Yuan Su Bone Peptide" in Inner Mongolia and surrounding areas, while also developing e-commerce and micro-business channels to increase market share [9]. - The company is focusing on expanding its collagen business, particularly in the Hangzhou market, and is actively engaging in resource integration and partnerships [59]. - The company is committed to aligning its development strategy with the growing health market, particularly in small molecule peptide products [51]. - The company is responding to market challenges by expanding its customer base and exploring new application areas for its products [57]. Financial Management - The company does not plan to distribute cash dividends or issue bonus shares, focusing on reinvestment for growth [12]. - The company has established a comprehensive procurement management system to control supplier selection and procurement costs effectively [10]. - The company is actively investing in high-quality bone particle bases to mitigate procurement price volatility risks associated with raw materials [10]. - The company has implemented a centralized procurement management system to ensure product quality and safety [33]. - The company has made commitments to avoid any competition with its own products and businesses [107]. Environmental and Regulatory Compliance - The company has established an environmental protection management committee and implemented comprehensive environmental monitoring and management systems to ensure compliance with environmental regulations [130]. - The company has successfully maintained all pollutant emissions within the approved limits, with no instances of exceeding discharge standards [130]. - The company reported a total COD discharge of 106.559 tons and ammonia nitrogen discharge of 10.603 tons during the reporting period, adhering to the national wastewater discharge standards [129]. - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential pollution accidents [131]. - There were no penalties or rectification measures required during the reporting period, indicating compliance with regulations [116]. Shareholder and Corporate Governance - The company has committed to fulfilling its obligations to minority shareholders, ensuring timely execution of promises made [109]. - The company has made a commitment to not use company assets for investments unrelated to its responsibilities, ensuring the protection of company interests [102]. - The company has successfully fulfilled its commitments related to the non-public offering of shares, which includes a total of 33,600,000 shares [100]. - The company has ensured that its commitments regarding the non-transfer of shares are being executed normally, with no overdue obligations as of the reporting period [100]. - The company has appointed a new financial director, Hao Haiqing, on April 17, 2019, following the resignation of the previous financial director [161].

证券代码：300239 证券简称：东宝生物 公告编号：2019-046 包头东宝生物技术股份有限公司 关于参加"2019 年内蒙古辖区上市公司投资者网上集体 接待日活动"的公告 本公司及董事会全体成员保证信息披露内容的真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 为便于广大投资者更深入全面地了解公司生产经营等情况，进一步加强公司 与投资者的互动交流工作，公司定于2019年7月10日（星期三）下午15:00-17:00 参加"2019 年内蒙古辖区上市公司投资者网上集体接待日活动"，现将有关事 项公告如下： 本次投资者网上集体接待日活动将在深圳市全景网络有限公司提供的网上 平台采取网络远程方式举行，投资者可登录"全景•路演天下（http://rs.p5w.net） 参与本次互动交流。 出席本次投资者网上集体接待日活动的人员有：总经理王丽萍女士，副总经 理、董事会秘书刘芳先生、财务总监郝海青先生。 欢迎广大投资者积极参与。 特此公告。 包头东宝生物技术股份有限公司 董事会 2019 年 7 月 5 日 ...

Financial Performance - The company's operating revenue for 2018 was CNY 452.75 million, an increase of 27.09% compared to CNY 356.24 million in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 33.98 million, representing a growth of 51.57% from CNY 22.42 million in 2017[22]. - The net cash flow from operating activities reached CNY 60.00 million, a significant increase of 2,024.98% compared to a negative cash flow of CNY 3.12 million in 2017[22]. - The total assets at the end of 2018 amounted to CNY 1.20 billion, reflecting a growth of 23.39% from CNY 971.54 million at the end of 2017[22]. - The company reported a basic earnings per share of CNY 0.0737, up 51.65% from CNY 0.0486 in the previous year[22]. - Operating profit reached 39.20 million yuan, up 48.18% compared to the previous year[36]. - The company achieved total operating revenue of ¥452,748,251.38 in 2018, representing a year-on-year increase of 27.09% compared to ¥356,244,410.51 in 2017[74]. - The company reported a gross profit margin of 21.54% for its biological and biochemical products, with a slight increase from the previous year[76]. Production Capacity Expansion - The company raised 232 million RMB through a private placement to expand gelatin and collagen production capacity, aiming for an annual production capacity of 13,500 tons of gelatin and 3,000 tons of collagen[6]. - The company is currently completing the expansion of its gelatin production from 3,500 tons to 7,000 tons, with equipment debugging in progress, while the collagen project has completed most of its construction[6]. - The company plans to expand gelatin production capacity from 10,000 tons to 13,500 tons per year and collagen capacity to 3,000 tons per year[42]. - The company has ongoing construction projects, including a new collagen production facility, which is expected to enhance future production capacity[96]. - The company has officially launched a new production line for 3,500 tons of gelatin, further solidifying its leading position in the gelatin industry[115]. Market Strategy and Development - The company plans to enhance its market presence by targeting the health market, particularly focusing on the elderly demographic, leveraging the health benefits of collagen[8]. - The company aims to develop its retail collagen brand "Yuan Su Bone Peptide" and has already penetrated the elderly and female markets with various products[9]. - The company is actively developing new markets for gelatin and collagen, focusing on high-end peptide powder markets to enhance profitability[56]. - The company is focused on establishing a world-class modern collagen biotechnology enterprise, enhancing upstream and downstream industry collaboration, and expanding raw material bases[66]. - The company aims to improve user service management and enhance user loyalty through comprehensive service capabilities and participation in industry exhibitions[69]. Research and Development - The company emphasizes R&D in new technologies and processes, maintaining a leading position in the industry[44]. - The company currently holds 18 authorized patents, including 10 Chinese invention patents and 1 utility model patent, which supports its long-term development in new technologies and products[46]. - The company has made significant advancements in the pharmaceutical health sector, particularly with a patent for a collagen peptide preparation method that inhibits cancer cell proliferation, marking a breakthrough in technology innovation[46]. - The company has published numerous research papers related to gelatin and collagen peptides, indicating its active engagement in scientific research and innovation[47]. - Research and development expenses increased by 30.46% to ¥7,794,456.53, reflecting the company's commitment to enhancing R&D efforts[85]. Financial Management and Shareholder Returns - The company has proposed a profit distribution plan, offering a cash dividend of 0.30 RMB per 10 shares to all shareholders[11]. - In 2018, the company distributed cash dividends of 0.3 RMB per 10 shares, totaling 13,826,223.24 RMB, based on a total share capital of 460,874,108 shares[135]. - The proposed cash dividend for 2018 is 0.3 RMB per 10 shares, amounting to 15,719,823.24 RMB, with a total share capital of 523,994,108 shares[139]. - The company aims to enhance shareholder returns and reduce the risk of dilution for existing shareholders[146]. - The company has committed to strictly adhere to its dividend policy to ensure shareholder returns[145]. Corporate Governance and Compliance - The company appointed Dahua Certified Public Accountants (Special General Partnership) for audit services, with a fee of 330,000 RMB, and has maintained this auditor for 7 years[153]. - The company did not engage in any related party transactions during the reporting period[160]. - The company has committed to not infringe on company interests and to ensure proper management of assets during the reporting period[142]. - The company has established a comprehensive environmental protection management system, ensuring compliance with national wastewater discharge standards without exceeding limits[179]. - The company has received honors for its contributions to social welfare, including participation in disaster relief efforts[175]. Environmental Responsibility - The company has established a comprehensive environmental risk emergency response plan to efficiently handle pollution incidents, ensuring safety and prevention as primary principles[180]. - The emergency response organization is led by the general manager and includes various specialized teams for effective incident management[180]. - The company conducts annual emergency drills related to environmental incidents to enhance the preparedness of all employees[180]. - The environmental self-monitoring program has been effectively implemented, ensuring compliance with environmental regulations[181]. - The main pollutants from the company are COD and ammonia nitrogen, with actual discharge concentrations and amounts within the approved standards[179].

Financial Performance - Total revenue for Q1 2019 was CNY 113,291,169.46, an increase of 14.44% compared to CNY 98,999,088.24 in the same period last year[9] - Net profit attributable to shareholders was CNY 7,612,512.42, up 10.52% from CNY 6,888,130.65 year-on-year[9] - Net cash flow from operating activities reached CNY 25,732,244.52, a significant increase of 366.99% compared to a negative cash flow of CNY -9,637,852.63 in the previous year[9] - Basic earnings per share for the period were CNY 0.0165, representing a 10.74% increase from CNY 0.0149 in the same period last year[9] - The company reported a gross profit margin of approximately 19.1% for Q1 2019, compared to 10.5% in Q1 2018[65] - The net profit for Q1 2019 reached CNY 7,612,512.42, up 10.5% from CNY 6,888,130.65 in the same period last year[67] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,392,384,929.41, reflecting a growth of 16.15% from CNY 1,198,743,162.74 at the end of the previous year[9] - Total liabilities decreased to CNY 413,038,328.78 from CNY 447,863,704.25, indicating a reduction of approximately 7.8%[58] - The company's equity increased to CNY 979,346,600.63 from CNY 750,879,458.49, showing a growth of about 30.4%[58] - Total assets as of March 31, 2019, amounted to CNY 1,400,108,541.55, compared to CNY 1,207,908,499.37 at the end of 2018, reflecting a growth of 15.9%[64] - Total liabilities decreased to CNY 412,614,833.90 from CNY 447,188,265.71, a reduction of 7.7%[63] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 19,554[13] - The largest shareholder, Inner Mongolia Dongbao Trade Co., Ltd., held 28.46% of the shares, amounting to 149,143,800 shares[13] - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[14] Research and Development - Research and development expenses rose to ¥2,149,549.44, an increase of ¥591,019.93 or 37.92% year-on-year, reflecting higher investment in R&D[21] - Research and development expenses for Q1 2019 were CNY 2,149,549.44, an increase of 37.9% compared to CNY 1,558,529.51 in Q1 2018[65] - The company is advancing the industrialization of the medical collagen project, which has significant market potential in plasma substitutes[24] - The project for the purification and separation of bone collagen peptides has completed core technology verification, paving the way for biological testing[25] Investment and Expansion - The company raised CNY 222,200,000.00 through a non-public issuance of shares[23] - The company plans to expand its production capacity to 13,500 tons of gelatin and 3,000 tons of collagen protein following the completion of fundraising projects[28] - The company has allocated 25,357.3 million CNY for the new gelatin project, with 90.77% of the investment already utilized[49] - The company has also initiated a project to produce 2,000 tons of collagen protein, with 21.19% of the investment completed as of the report date[49] Market Strategy - The company is focusing on high-value markets such as food new materials, health products, and functional foods to increase profit margins[29] - The company aims to establish its collagen product as a leading brand in the market, targeting the elderly and female demographics[38] - The company plans to enhance its e-commerce and micro-business channels, aiming to establish a strong brand image as "China's Good Collagen" and improve customer repurchase rates[39] Financial Management - The company has established a comprehensive procurement management system to control costs and enhance supply chain efficiency[40] - The company is facing procurement price volatility risks due to increased production costs from upstream suppliers amid a recovering domestic economy[39] - The company incurred financial expenses of ¥755,987.33, which is an increase of 61.6% compared to ¥467,516.30 in the previous year[69] Cash Flow - Cash and cash equivalents increased to ¥274,323,770.97, up by ¥175,899,316.87 or 178.72% compared to the beginning of the year due to funds raised from a private placement[20] - The net cash flow from operating activities for Q1 2019 was ¥29,840,366.14, a significant improvement compared to a net outflow of ¥9,621,017.59 in Q1 2018[78] - Total cash inflow from financing activities reached ¥260,715,457.02, compared to ¥25,000,000.00 in the same period last year[79]

Financial Performance - Operating revenue for the period reached ¥92,121,615.41, reflecting a growth of 14.70% year-on-year[9] - Net profit attributable to shareholders was ¥6,004,834.15, marking a significant increase of 74.75% compared to the same period last year[9] - The net profit after deducting non-recurring gains and losses was ¥5,455,022.34, up 106.95% year-on-year[9] - Basic earnings per share rose to ¥0.0129, an increase of 72.00% compared to the same period last year[9] - The weighted average return on net assets was 0.82%, up from 0.34% in the previous year[9] - The company's operating revenue for Q3 2018 was CNY 322,296,512.05, an increase of 32.89% compared to CNY 242,527,130.13 in the same period last year[23] - Net profit for the third quarter was CNY 4,454,080.01, up 29% from CNY 3,442,673.87 year-over-year[58] - Basic and diluted earnings per share increased to CNY 0.0096 from CNY 0.0075, reflecting a growth of 28%[58] - The net profit for Q3 2018 was CNY 21,123,998.79, an increase of 34.5% compared to CNY 15,677,175.63 in the same period last year[65] - Operating profit for Q3 2018 reached CNY 25,198,515.31, up from CNY 18,542,981.59, reflecting a growth of 36.0% year-over-year[65] Assets and Liabilities - Total assets increased to ¥1,128,510,188.44, a rise of 16.16% compared to the end of the previous year[9] - Cash and cash equivalents increased by 87.80% to ¥102,131,267.51, primarily due to increased sales revenue from gelatin, calcium hydrogen phosphate, and collagen products, as well as a loan of ¥37.5 million from a shareholder[22] - Total current assets increased to 435,668,829.51 yuan from 312,850,730.42 yuan, reflecting a significant growth in liquidity[44] - Total liabilities increased to 388,350,166.34 yuan from 241,780,572.75 yuan, showing a rise in the company's financial obligations[46] - The company's total assets reached 1,128,510,188.44 yuan, up from 971,535,396.60 yuan, indicating overall growth in asset base[46] Cash Flow - Cash flow from operating activities for the year-to-date reached ¥18,228,225.75, a substantial increase of 174.53%[9] - Cash received from sales of goods and services increased by 50.96% to CNY 182,697,338.26, driven by higher sales of gelatin and calcium hydrogen phosphate products[26] - Cash flow from operating activities generated a net amount of CNY 18,228,225.75, a significant recovery from a net outflow of CNY 24,456,863.38 in the previous year[66] - Financing activities generated a net cash inflow of CNY 35,350,255.93, a recovery from a net outflow of CNY 7,210,742.66 in the same period last year[72] Investments and Projects - Long-term equity investments increased by 73.43% to ¥6,944,110.37, reflecting investments in raw material base construction according to the company's overall strategic plan[22] - The company plans to continue expanding its production capacity and investing in new technologies to enhance its market position[20] - The company plans to expand its production capacity from 3,500 tons to 7,000 tons of new process gelatin as part of its non-public stock issuance plan approved by the China Securities Regulatory Commission[28] - The company has received approval for its non-public stock issuance, with a total fundraising target of CNY 36,526.58 million to support its expansion projects[29] - The company is expanding its gelatin production capacity from 3,500 tons to 7,000 tons, with construction nearing completion and equipment installation in the commissioning phase[31] - The collagen project is progressing, with the main construction of the production workshop completed and major equipment being ordered[31] Government Subsidies - The company received government subsidies totaling ¥2,394,868.17, primarily related to asset-related government grants[10] - The company received government subsidies of ¥8.8 million related to assets during the reporting period[22] - The company was awarded 5 million yuan in major special funds for science and technology from the autonomous region[34] Shareholder Information - The total number of shareholders at the end of the reporting period was 20,723[13] - The largest shareholder, Inner Mongolia Dongbao Trade Co., Ltd., holds 32.14% of the shares, totaling 149,143,800 shares[13] - The total number of restricted shares for executives and other shareholders amounted to 19,067,768 shares, with a three-year unlocking schedule[18] - Cash dividends of 13,826,223.24 yuan were distributed as part of the 2017 profit distribution plan, aligning with the company's dividend policy and shareholder meeting resolutions[38] Inventory and Costs - Inventory rose by 35.28% to ¥209,399,263.71, mainly due to the increase in products, semi-finished products, and finished products following the commissioning of the Binhe New District construction project[22] - Operating costs amounted to ¥85,881,267.45, up from ¥77,174,472.95, indicating an increase of about 11.0%[51] - The company reported a significant increase in inventory stock due to the implementation of an equity incentive plan, totaling CNY 8,455,200.00[23] Research and Development - Research and development expenses were ¥2,095,477.85, down from ¥2,584,482.31, indicating a decrease of about 18.9%[51] - Research and development expenses for the quarter were CNY 5,519,916.44, slightly up from CNY 5,004,085.36 year-over-year[60] Other Financial Metrics - Financial expenses surged by 1267.18% to CNY 1,755,562.62, primarily due to increased bank loans and corresponding interest expenses[23] - The company reported a 100% decrease in investment income, with no income generated from idle funds in the current period[23] - The company recorded investment income of CNY 7.07, a significant decrease from CNY 303,453.69 in the previous year[60] Audit and Future Outlook - The report for Q3 2018 was not audited, indicating that the figures may be subject to change upon final review[73] - Future outlook and strategic initiatives were not detailed in the provided content, suggesting a focus on current performance metrics[60]

Production Capacity and Expansion - The company has expanded its production capacity to 13,500 tons/year of gelatin and 3,000 tons/year of collagen, following the completion of a 3,500 tons gelatin production line[7]. - The company has initiated a refinancing project to expand its gelatin production from 3,500 tons to 7,000 tons and establish a new 2,000 tons collagen production line[11]. - The company’s gelatin production capacity has reached 10,000 tons following the launch of a new 3,500-ton production project, with plans to expand to 13,500 tons annually[44]. - The company is actively preparing for the industrialization of its blood plasma gelatin project, marking a significant breakthrough in research and development[48]. - The company has initiated the first phase of industrialization for the electrospun gelatin fiber hemostatic material project, with new sanitary-grade industrial equipment design completed and production preparations underway[61]. Market Strategy and Product Development - The company aims to enhance its market share by optimizing product quality and reducing costs, with a focus on high-value applications in sectors such as baking, meat products, and pet food[9]. - The company plans to launch new collagen products targeting the female market, including collagen peptide powder and various functional facial masks, in the second half of the year[9]. - The company is actively seeking partnerships with well-known health brands and network marketing companies to enhance its sales channels and boost revenue from terminal products[14]. - The company is focusing on developing local markets, particularly in Hohhot and Ordos, to leverage its brand influence and increase sales[14]. - The company is committed to becoming a leading brand in the collagen market, with significant investments in brand and channel development[12]. Financial Performance - Total revenue for the first half of 2018 reached ¥230,174,896.64, an increase of 41.90% compared to ¥162,210,667.60 in the same period last year[30]. - Net profit attributable to shareholders was ¥16,779,947.34, up 38.21% from ¥12,140,956.28 year-on-year[30]. - Net profit after deducting non-recurring gains and losses was ¥15,207,079.87, reflecting a 45.76% increase from ¥10,433,237.74 in the previous year[30]. - Operating cash flow net amount surged to ¥17,742,294.83, a significant increase of 1,456.91% compared to ¥1,139,582.22 in the same period last year[30]. - Basic earnings per share rose to ¥0.0364, a 38.40% increase from ¥0.0263[30]. Raw Material Management and Supply Chain - The company is facing risks related to raw material procurement costs due to increased demand and environmental regulations, and is taking measures to secure quality raw materials through strategic partnerships[15]. - The company is enhancing its supply chain management to mitigate risks associated with raw material price fluctuations[16]. - The company implements a centralized procurement management system to ensure the quality and safety of raw materials[38]. - The company is focusing on strategic planning and construction of raw material bases to ensure quality raw material supply, enhancing overall operational efficiency[65]. Cash Flow and Liquidity - The company’s cash and cash equivalents grew by 56.55% compared to the beginning of the period, driven by increased sales of gelatin, calcium hydrogen phosphate, and collagen products[43]. - The company’s cash flow from sales increased due to higher sales volumes, with accounts receivable rising by 70.28%[43]. - The company reported a significant increase in cash and cash equivalents, contributing to improved liquidity[175]. - The ending cash and cash equivalents balance was CNY 64,938,099.11, a significant increase from CNY 23,202,332.50 at the end of the previous period, representing a growth of approximately 179%[184]. Shareholder and Equity Management - The company does not plan to distribute cash dividends or issue bonus shares this year[17]. - The company plans to grant 3,120,000 restricted stocks to 33 incentive objects, accounting for 0.68% of the total share capital of 460,874,108 shares[116]. - The stock incentive plan allows executives to unlock 25% of their shares annually during their tenure[142]. - The company completed the registration of 3.12 million restricted stock grants under the 2018 equity incentive plan, increasing total shares from 460,874,108 to 463,994,108[139]. - The company will actively promote profit distribution to shareholders under the premise of meeting profit distribution conditions[106]. Environmental and Social Responsibility - The company has maintained compliance with environmental regulations, with COD and ammonia nitrogen emissions within approved limits[128]. - The company has established an environmental risk emergency response plan and conducts annual emergency drills[129]. - The company has actively promoted poverty alleviation efforts, assisting impoverished households in developing livestock farming[131]. - The company continues to implement targeted poverty alleviation programs, enhancing its corporate social responsibility initiatives[133]. Corporate Governance and Compliance - The company has not undergone any bankruptcy reorganization during the reporting period[113]. - There are no major litigation or arbitration matters during the reporting period[114]. - The company has no penalties or rectification situations during the reporting period[115]. - The company has fulfilled its commitments regarding shareholding reduction by major shareholders[110]. - The company has no significant omissions or misleading statements in its disclosures[110].

Financial Performance - Total revenue for the first quarter reached ¥98,999,088.24, an increase of 28.76% compared to ¥76,889,222.52 in the same period last year[7] - Net profit attributable to shareholders was ¥6,888,130.65, reflecting a growth of 20.44% from ¥5,718,914.70 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥6,022,934.61, up 28.71% from ¥4,679,378.61 in the previous year[7] - Operating profit reached CNY 8,329,392.75, reflecting a growth of 23.13% compared to the previous year[25] - The company achieved total operating revenue of CNY 98,999,088.24, an increase of 28.76% year-on-year[25] - The company reported a gross profit of CNY 7,352,271.51 for Q1 2018, up from CNY 5,560,979.17 in the previous year[65] - The company's total comprehensive income for Q1 2018 was ¥6,937,672.38, compared to ¥5,772,032.20 in Q1 2017, showing overall growth[70] Cash Flow and Liquidity - The company reported a negative net cash flow from operating activities of ¥13,437,852.63, worsening by 103.10% compared to a negative cash flow of ¥6,616,371.51 last year[7] - The operating cash flow for Q1 2018 was negative at -¥13,437,852.63, worsening from -¥6,616,371.51 in Q1 2017[73] - The cash inflow from operating activities totaled ¥46,899,193.50 in Q1 2018, up from ¥29,580,745.86 in Q1 2017[73] - The total cash and cash equivalents at the end of Q1 2018 amounted to ¥63,867,245.26, an increase from ¥112,854,693.13 at the end of Q1 2017[74] - Cash inflow from financing activities amounted to 28,800,000.00, with a net cash flow from financing activities of 27,487,811.10, reflecting a positive financing position[78] Shareholder Information - The total number of common shareholders at the end of the reporting period is 20,307[16] - The largest shareholder, Inner Mongolia Dongbao Economic and Trade Co., Ltd., holds 32.36% of shares, totaling 149,143,800 shares, with 107,077,400 shares pledged[16] - The top ten shareholders collectively hold significant stakes, with the first three shareholders alone accounting for over 36% of total shares[16] - The company has a total of 15,947,843 shares under lock-up, with a maximum of 25% eligible for release each year for executives[19][20] - The company maintains a stable shareholder structure with no significant changes in the number of restricted shares during the reporting period[18] Production and Market Strategy - The production capacity for gelatin and collagen is expected to reach 13,500 tons and 3,000 tons per year, respectively, following the completion of the new production line[9] - The company plans to enhance its market presence in the collagen sector by implementing a "partner mechanism" to improve brand marketing and resource allocation[10] - The company is focused on expanding its market share in the collagen segment, particularly through the promotion of its brand "Yuan Su Bone Peptide" and exploring new sales channels[12] - The company aims to mitigate raw material procurement risks by establishing strategic partnerships with quality suppliers and optimizing its supply chain management[14] - The company is actively pursuing refinancing projects to support the expansion of gelatin and collagen production, with the projects currently under review by the China Securities Regulatory Commission[11] Research and Development - The company is developing a low-endotoxin gelatin production process, with successful preliminary results from laboratory tests[26] - The project for promoting bone collagen peptides is progressing well, with high-activity components identified through rigorous testing[27] - The company received government subsidies of CNY 3,800,000.00 for a new technology gelatin project, marking a new source of funding[24] - The company's collagen peptide demonstrated significant inhibitory effects on ovarian cancer cells in vitro, with further animal studies planned to confirm efficacy in vivo[29] - The company received 12 million RMB in support funds from the national "new kinetic energy" initiative to enhance its R&D capabilities[36] Governance and Compliance - The company has not reported any new product launches or technological advancements in this quarter[22] - There are no indications of market expansion or mergers and acquisitions mentioned in the report[22] - The company has not disclosed any future performance guidance or outlook for the upcoming quarters[22] - The report indicates that there are no financing or margin trading activities involving shareholders[17] - The company did not undergo an audit for the first quarter report, which may affect the reliability of the financial data presented[79]

Production Capacity and Expansion - The company has expanded its production capacity to 13,500 tons/year of gelatin and 3,000 tons/year of collagen, following the launch of a new gelatin production line[5]. - The company initiated a refinancing project in September 2017 to support the expansion of gelatin production from 3,500 tons to 7,000 tons and to establish a new collagen production line of 2,000 tons[7]. - The company plans to expand its gelatin production capacity from 10,000 tons to 13,500 tons per year and collagen protein capacity to 3,000 tons per year[41]. - The company successfully completed the construction design for the project to expand gelatin production from 3,500 tons to 7,000 tons, which is expected to significantly enhance production scale and profitability[57]. - The new gelatin production project is expected to achieve an annual net profit of RMB 42.08 million once fully operational, with a projected utilization rate of 60% in the first year[90]. - The company has officially launched 3,500 tons of new process gelatin, which is expected to significantly enhance overall profitability and core competitiveness once full capacity is reached[120]. Financial Performance - The company's operating revenue for 2017 was RMB 356,244,410.51, representing a 12.52% increase compared to RMB 316,593,978.88 in 2016[23]. - The net profit attributable to shareholders for 2017 was RMB 22,416,637.11, up 16.59% from RMB 19,226,957.17 in 2016[23]. - The net profit after deducting non-recurring gains and losses was RMB 18,962,735.02, a significant increase of 53.76% from RMB 12,333,050.97 in 2016[23]. - The total assets at the end of 2017 reached RMB 971,535,396.60, marking a 16.61% increase from RMB 833,132,333.54 at the end of 2016[23]. - The basic earnings per share for 2017 was RMB 0.0486, reflecting a 16.55% increase from RMB 0.0417 in 2016[23]. - Operating profit reached CNY 26,453,608.15, reflecting a growth of 47.40% compared to the previous year[50]. - The company achieved quarterly revenues of RMB 113,717,280.38 in Q4 2017, the highest among the four quarters[25]. Market Development and Strategy - The company plans to implement a "partner mechanism" to enhance marketing resources and optimize its equity structure, aiming for diversified marketing strategies[10]. - The company is actively seeking to develop local markets, particularly in Hohhot and Ordos, to leverage its brand influence and improve sales[10]. - The company is positioned as a leading player in the domestic gelatin industry, with a focus on expanding its market share in the collagen protein sector[37]. - The company is developing targeted marketing strategies to capture new markets in gelatin and collagen, aiming for significant breakthroughs in 2018[111]. - The company plans to focus on developing downstream derivative products based on gelatin and collagen, targeting markets such as hemostatic products and anti-cancer health products[101]. Research and Development - The company holds 15 authorized patents, including 9 invention patents, with 3 new invention patents granted in 2017[45]. - The company has established a stable technical team and ranks among the top in the industry for R&D investment[43]. - The establishment of a research and development center has laid a solid foundation for developing new products and enhancing customer satisfaction[55]. - The company is actively developing new products in the medical collagen field, targeting high-value applications such as blood plasma substitutes and biological hemostatic materials[74]. - The company has invested a total of ¥14,400,074.20 in R&D for 2017, representing 4.04% of its operating revenue[77]. Environmental Responsibility - The company is committed to environmental protection and is classified as a key pollutant discharge unit by environmental authorities[171]. - The company reported a total discharge of 86.5 tons/year for COD and 5.45 tons/year for ammonia nitrogen, adhering to the national wastewater discharge standards[173]. - The company has established an Environmental Protection Management Committee and implemented comprehensive environmental management systems to ensure compliance and effective pollution control[173]. - The company has conducted annual emergency drills for environmental incidents to enhance response capabilities and ensure staff preparedness[173]. - The company has obtained environmental impact assessment approvals for all construction projects, ensuring compliance with environmental regulations[173]. Shareholder Returns and Dividends - The company plans to distribute cash dividends of 0.30 yuan per 10 shares to all shareholders, with no bonus shares issued[12]. - The net profit attributable to the parent company for 2017 was RMB 22,416,637.11, with a cash dividend payout ratio of 61.68%[132]. - The company has established a three-year shareholder dividend return plan, ensuring clear standards and procedures for cash dividends to protect the rights of all shareholders, especially minority shareholders[125]. - The cash dividend for 2017 represents a 17.39% increase compared to the previous year's dividend of RMB 0.25 per 10 shares[130]. - The company has maintained a cash dividend policy that aligns with its articles of association and shareholder resolutions[127]. Financial Management and Fundraising - The company has initiated a non-public offering project to raise funds for expanding production capacity and enhancing liquidity[37]. - The company committed to accelerate the investment progress of fundraising projects to achieve expected benefits as soon as possible[136]. - The company plans to enhance the management of raised funds to improve capital utilization efficiency and operational profitability[136]. - The company has a strong asset quality with normal operations across various assets, a low debt-to-asset ratio, and a healthy liquidity position, ensuring robust operational capital turnover[119]. - The company has pledged three land use rights as collateral for a loan of up to RMB 35 million to build a new facility with an annual production capacity of 3,500 tons of new process gelatin[86]. Corporate Governance and Compliance - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[141]. - There were no significant litigation or arbitration matters during the reporting period[148]. - The company has not made any asset or equity acquisitions or sales during the reporting period[152]. - The company has not faced any penalties or rectification situations during the reporting period[149]. - The company has not undergone any bankruptcy restructuring during the reporting period[147].