Group 1: Event Details - The company will participate in the "2019 Inner Mongolia Listed Companies Investor Online Reception Day" on July 10, 2019, from 15:00 to 17:00 [2] - The event will be held online via the platform provided by Shenzhen Qianjing Network Co., Ltd. [2] - Investors can log in to "Qianjing Roadshow World" (http://rs.p5w.net) to participate in the interactive session [2] Group 2: Company Representatives - Attendees from the company include General Manager Ms. Wang Liping, Deputy General Manager and Board Secretary Mr. Liu Fang, and Chief Financial Officer Mr. Hao Haiqing [2] - The company encourages investors to actively participate in the event [2] Group 3: Assurance of Information Disclosure - The company and its board members guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions [2]

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 - 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 - 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].

Financial Performance - Operating revenue for the reporting period was ¥80,316,462.53, representing an 18.91% increase year-on-year[8] - Net profit attributable to shareholders decreased by 26.81% to ¥3,436,230.73 for the reporting period[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 14.91% to ¥2,635,901.21[8] - Basic earnings per share were ¥0.0075, down 26.47% compared to the same period last year[8] - The weighted average return on net assets was 0.48%, a decrease of 0.18% year-on-year[8] - Total operating revenue for the third quarter reached CNY 80,316,462.53, an increase from CNY 67,545,342.61 in the previous period, representing a growth of approximately 18.5%[51] - Net profit for the period was CNY 3,436,230.73, a decrease from CNY 4,694,768.29, reflecting a decline of approximately 26.8%[52] - Basic and diluted earnings per share decreased to CNY 0.0075 from CNY 0.0102, a decline of approximately 26.5%[53] - The total profit for the third quarter was approximately ¥18.52 million, an increase from ¥16.14 million in the same period last year, representing a growth of about 14.8%[64] - The net profit for the third quarter reached ¥15.68 million, compared to ¥13.69 million in the previous year, marking an increase of approximately 14.5%[64] - Basic and diluted earnings per share for the quarter were both ¥0.0340, up from ¥0.0297 in the same quarter last year, reflecting a growth of about 14.5%[64] Cash Flow and Liquidity - The net cash flow from operating activities showed a significant decline, with a net outflow of ¥24,456,863.38, a decrease of 316.46%[8] - Cash and cash equivalents decreased by 81.47%, from CNY 142,181,239.36 to CNY 26,349,299.05, primarily due to expenditures related to the Binhe New District project[19] - Cash flow from operating activities decreased by 93.03%, from CNY 13,125,018.26 to CNY 914,987.82, mainly due to the previous year's employee stock ownership plan receipts[22] - Cash inflow from operating activities totaled ¥121.94 million, a decrease from ¥132.13 million year-over-year, indicating a decline of approximately 7.5%[67] - Cash outflow from operating activities was ¥146.40 million, compared to ¥120.83 million in the previous year, representing an increase of about 21.2%[67] - The net cash flow from operating activities was negative at ¥24.46 million, contrasting with a positive cash flow of ¥11.30 million in the same quarter last year[67] - The ending cash and cash equivalents balance was ¥26.35 million, a significant decrease from ¥135.13 million at the end of the same quarter last year[68] Assets and Liabilities - Total assets at the end of the reporting period reached ¥878,931,471.15, an increase of 5.50% compared to the previous year[8] - Cash and cash equivalents decreased significantly to CNY 26,159,112.02 from CNY 142,134,000.94, a decline of about 81.6%[47] - Total liabilities increased by 59.83%, with accounts payable rising from CNY 75,353,510.84 to CNY 120,441,029.05, driven by increased construction costs and raw material procurement[20] - The total liabilities increased to CNY 155,964,176.40 from CNY 114,252,133.18, marking an increase of approximately 36.5%[49] - The company's total equity increased to CNY 737,265,605.39 from CNY 733,110,282.06, a slight increase of about 0.6%[49] Investments and Projects - The company plans to continue investing in the Binhe New District project and expects further increases in production capacity and operational efficiency in the upcoming quarters[19] - The company is actively developing new applications for gelatin in baking, meat products, and candies, expanding its market reach[29] - The company plans to officially launch its 3,500-ton new process gelatin project by the end of November, following the completion of necessary production permits[25] - The company is collaborating with the Institute of Physics, Chinese Academy of Sciences, to establish a collagen industry research institute, enhancing its technological capabilities[26] - The company is advancing its non-public stock issuance project to support the expansion of its gelatin production capacity from 3,500 tons to 7,000 tons annually[29] - The company has achieved significant progress in its R&D projects, including the development of medical collagen hydrolysate and bone collagen peptides, with plans for industrialization[30] - The company signed an exclusive agency agreement with Pureorg for collagen peptides in North America, indicating a strategic move to expand its international market presence[28] - The clinical research project on "Oral Collagen Peptide Combined with Calcium D for Osteoporosis Treatment" has entered the final application research stage, with promising results and related papers being drafted[31] - The company plans to increase its annual production capacity of gelatin from 3,500 tons to 7,000 tons and establish a 2,000-ton collagen protein project, with a total fundraising target of up to 365.27 million yuan[34] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,329[12] - The largest shareholder, Inner Mongolia Dongbao Trade Co., Ltd., held 32.36% of the shares, amounting to 149,143,800 shares[12] - The company’s cash dividend distribution for the 2016 fiscal year was 0.25 yuan per share, totaling 11.52 million yuan distributed to shareholders[37] - The company has no overdue commitments from controlling shareholders or related parties during the reporting period[35] Operational Costs - Operating costs amounted to CNY 77,174,472.95, up from CNY 64,742,599.45, indicating an increase of about 19.1%[51] - Total operating costs amounted to CNY 226,946,025.66, a rise of 3.5% from CNY 220,168,114.40 in the previous period[58] - Sales expenses decreased to CNY 11,344,132.29, down 22.5% from CNY 14,545,084.75 in the previous year[58] - Management expenses increased slightly to CNY 21,275,872.65, compared to CNY 20,916,033.49 in the previous period[58]

Financial Performance - The total operating revenue for the reporting period was CNY 162,210,667.60, an increase of 0.64% compared to the same period last year [26]. - The net profit attributable to shareholders of the listed company was CNY 12,140,956.28, representing a growth of 45.43% year-on-year [26]. - The net profit after deducting non-recurring gains and losses was CNY 10,433,237.74, up 119.60% from the previous year [26]. - The net cash flow from operating activities was CNY 1,139,582.22, a significant improvement of 111.40% compared to a net outflow of CNY 9,996,485.73 in the same period last year [26]. - The basic earnings per share were CNY 0.0263, reflecting a 45.30% increase year-on-year [26]. - Operating profit reached CNY 14,542,276.61, reflecting a significant increase of 78.92% year-on-year [52]. - The total profit amounted to CNY 14,379,511.36, which is a 45.20% increase compared to the previous year [52]. - The company reported a decrease in net cash and cash equivalents by 69.54%, totaling -¥118,978,906.86, attributed to increased dividend payments and unredeemed financial products [70]. Investment and R&D - The company is focusing on developing gelatin and collagen protein extension products to increase product added value and create new profit points [7]. - The company is investing in high-quality bone particle bases and forming strategic partnerships with key suppliers to control raw material costs and mitigate procurement risks [12]. - The R&D center has commenced operations, focusing on production process innovation to improve product quality and reduce costs, while also pursuing various certification qualifications [55]. - Research and development expenses surged by 95.60% to ¥6,427,871.18, primarily due to increased investment in new projects and collaborations [70]. - The company has 15 authorized patents, including 9 invention patents, with ongoing efforts in technology development and intellectual property protection [44]. Market Strategy and Expansion - The company aims to establish "Yuan Su Bone Peptide" as a leading brand in the collagen protein industry and will actively expand the market through brand promotion and developing distributor resources [8]. - The company is leveraging the "Healthy China" initiative to accelerate the development of the collagen protein market and increase market share [8]. - The company acknowledges the risk of mismatched returns on investments during market expansion efforts in the collagen protein sector [8]. - The company achieved significant growth in collagen protein product sales, indicating a strong market expansion potential [37]. - The company is expanding its gelatin production capacity and exploring new application fields to capture market opportunities and enhance profitability [53]. Financial Management - The company has committed to an investment project with a total investment amount of RMB 25,357.3 million, of which RMB 19,199.8 million has been invested, achieving a progress rate of 75.72% [86]. - The total investment amount for the reporting period reached CNY 101,887,196.92, representing an increase of 66.56% compared to the previous year [80]. - The company has temporarily supplemented working capital with RMB 30 million of idle raised funds, which has been returned within 12 months [87]. - The company reported a total of 25,720 in financial products, with a principal amount of 19,220 and a return of 77.24% [1]. - The company plans to use up to 70 million yuan of temporarily idle raised funds to purchase principal-protected, liquid short-term bank financial products, with an investment period not exceeding 12 months [1]. Corporate Governance and Compliance - The company did not distribute cash dividends or issue bonus shares for the half-year period [99]. - The company has no major litigation or arbitration matters during the reporting period [104]. - The company has no significant related party transactions during the reporting period [107]. - The company’s half-year financial report was not audited [101]. - The financial statements prepared by the company comply with the requirements of the accounting standards, accurately reflecting its financial position, operating results, and cash flows [191]. Environmental Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities [120]. - The company has a total COD discharge limit of 86.96 tons, with actual discharge levels below the regulatory standards [121]. - The company has established an environmental protection management committee to oversee compliance and risk management [121]. - The company has a wastewater treatment facility that operates in compliance with national standards [121]. Shareholder Information - The total number of shareholders at the end of the reporting period is 18,494 [132]. - The largest shareholder, Inner Mongolia Dongbao Economic and Trade Co., Ltd., holds 32.36% of shares, totaling 149,143,800 shares [132]. - The company has a total of 15,947,844 restricted shares, with 1 share released during the reporting period [130]. - The executives' shares are subject to a 25% annual unlock limit during their tenure [129]. - The company did not experience any changes in its controlling shareholder during the reporting period [134].

Market Expansion and Strategy - The company focuses on gelatin and collagen products, which are in high demand due to increasing health awareness and supportive national policies, leading to a rapidly expanding market capacity [6]. - The company plans to enhance its market presence by promoting its collagen peptide brand, Yuan Su Bone Peptide, and expanding into new markets, although there may be risks of mismatched returns on investment [7]. - The company aims to maintain its leading position in the modern collagen field by leveraging diverse application areas and expanding into emerging markets [7]. - The company is participating in various professional exhibitions to promote its products and develop distributor resources to increase market share [7]. - The company is focusing on expanding its market presence through participation in major trade exhibitions and enhancing brand visibility [54]. - The company plans to focus on export business, specifically in the sales of bone gelatin and collagen-related products, and will completely abandon any business that competes with the company after its listing [136]. - The company aims to establish itself as a leading brand in the collagen industry by enhancing its marketing efforts for terminal collagen products and developing its own brand products [112]. - The company plans to continue expanding its market presence and invest in new product development [1]. Financial Performance - The company's operating revenue for 2016 was ¥316,593,978.88, representing an increase of 8.45% compared to ¥291,916,097.74 in 2015 [22]. - The net profit attributable to shareholders in 2016 was ¥19,226,957.17, a significant increase of 226.46% from ¥5,889,584.53 in 2015 [22]. - The basic earnings per share rose to ¥0.0417 in 2016, up 187.59% from ¥0.0145 in 2015 [22]. - The company reported a total of ¥7,131,038.57 in government subsidies for 2016, compared to ¥3,801,438.62 in 2015 [28]. - The company achieved operating profit of CNY 17,976,818.28, a significant increase of 380.92% year-on-year [36]. - The company’s gelatin and collagen product sales increased due to rising market demand, with a notable decrease in production costs for gelatin [36]. - The company’s total revenue for 2016 was approximately CNY 316.59 million, representing an increase of 8.45% compared to CNY 291.92 million in 2015 [65]. - The company reported a net profit of CNY 19,974,342.53 for 2016, from which 10% was allocated to statutory surplus reserves [129]. Research and Development - The company has a strong focus on R&D, with significant investments in technology development and partnerships with institutions like the Chinese Academy of Sciences [43]. - The company launched 8 independent R&D projects in 2016, enhancing production processes and supporting cost reduction and quality improvement [57]. - The company completed several R&D projects, including the development of a collagen hydrolysate preparation process and the purification of bone collagen peptides [75][76]. - The research and development center is nearing completion, aimed at establishing a domestic collagen results transformation platform [52]. - The company is committed to improving management levels and preparing talent in sales, production, and procurement to meet the challenges of expanded capacity [8]. Operational Challenges and Management - The company is currently in the trial production phase of its fundraising projects, which will further expand its business scale and may pose management and operational challenges [8]. - Fixed asset depreciation costs are expected to increase significantly after the completion of fundraising projects, potentially leading to risks of not meeting expected benefits if production capacity is not fully utilized [9]. - The company is enhancing its human resources management to build a talent pipeline and optimize performance management systems, aiming to improve operational capabilities [121]. - The company is focusing on improving user service management by transitioning from a product supplier to a solution provider, aiming to enhance user loyalty and service response [117]. Shareholder and Dividend Information - The profit distribution plan includes a cash dividend of 0.25 RMB per 10 shares, with no bonus shares issued, based on a total of 460,874,108 shares [10]. - The total cash dividend distributed in 2016 was CNY 11,521,852.70, accounting for 100% of the distributable profit [126]. - The company had a distributable profit of CNY 82,361,925.61 as of December 31, 2016, after accounting for previous dividends and reserves [129]. - The company has committed to maintaining its dividend policy to ensure shareholder returns [133]. Environmental and Social Responsibility - The company has established an environmental protection management committee and implemented a comprehensive environmental management system to ensure compliance with national standards [169]. - The total approved discharge amount for COD is 86.96 tons, with actual emissions within the regulatory limits [169]. - The company has not reported any instances of exceeding discharge standards, maintaining compliance with the "Comprehensive Wastewater Discharge Standards" (GB8978-1996) level one standard [169]. - The company has established a charity fund for joint health, contributing products and funds to local welfare institutions [167]. - The company emphasizes employee welfare by providing health check-ups and training to enhance employee skills [167]. Strategic Goals and Future Outlook - The company aims to become a core supplier of raw materials in the collagen biotechnology field, focusing on market expansion and brand building in 2017 [111]. - The company is committed to enhancing its brand competitiveness and resource integration capabilities to achieve its strategic goal of becoming a world-class modern collagen biotechnology enterprise [108]. - The biopharmaceutical industry is projected to experience rapid growth due to favorable policies and increasing health awareness among the population [103]. - The company plans to build a domestic collagen results transformation platform to accelerate technology upgrades and enhance profitability through internal and external R&D collaborations [115].