安徽山河药用辅料股份有限公司 2018 年第三季度报告全文 安徽山河药用辅料股份有限公司 2018 年第三季度报告 2018-065 2 安徽山河药用辅料股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 2018 年 10 月 1 安徽山河药用辅料股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人尹正龙、主管会计工作负责人余齐红及会计机构负责人(会计主 管人员)叶娟声明：保证季度报告中财务报表的真实、准确、完整。 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增 | | --- | --- | --- | --- | --- | | | | | | 减 | | 总资产（元） | 673,525,351.69 | | 666,403,829.62 | 1.07% | | 归属于 ...

Financial Performance - Total revenue for the first half of 2018 reached ¥213,891,400.24, an increase of 39.81% compared to ¥152,989,137.31 in the same period last year[20]. - Net profit attributable to shareholders was ¥33,491,008.00, reflecting a growth of 33.20% from ¥25,144,208.77 year-on-year[20]. - Net profit after deducting non-recurring gains and losses was ¥29,867,310.21, up 45.94% from ¥20,465,089.47 in the previous year[20]. - Basic earnings per share increased to ¥0.24, a rise of 33.33% compared to ¥0.18 in the same period last year[20]. - The weighted average return on net assets improved to 7.31%, up from 6.05% year-on-year, an increase of 1.26%[20]. - The company achieved total operating revenue of 213.89 million yuan, a year-on-year increase of 39.81%[31]. - Net profit attributable to shareholders reached 33.49 million yuan, up 33.20% compared to the same period last year[31]. - The net profit after deducting non-recurring gains and losses was 29.87 million yuan, reflecting a growth of 45.94% year-on-year[31]. Assets and Liabilities - Total assets at the end of the reporting period were ¥670,625,372.15, a slight increase of 0.63% from ¥666,403,829.62 at the end of the previous year[20]. - Net assets attributable to shareholders rose to ¥455,759,020.04, marking a 3.24% increase from ¥441,460,030.36 at the end of the last year[20]. - Total liabilities decreased from CNY 166,172,519.25 to CNY 152,494,522.26, a decline of approximately 8.23%[141]. - The company's equity increased from CNY 500,231,310.37 to CNY 518,130,849.89, reflecting a growth of about 3.57%[142]. Cash Flow - The net cash flow from operating activities was ¥17,421,974.82, a decrease of 4.75% compared to ¥18,289,971.53 in the same period last year[20]. - Cash and cash equivalents decreased by 20.01% to $120.27 million, accounting for 17.93% of total assets[40]. - The company reported a total cash inflow from operating activities of ¥203,276,857, compared to ¥133,520,578 in the previous period, marking a significant increase of 52.2%[157]. - The net cash flow from investment activities was -8,058,385.59 CNY, a significant decrease compared to 78,663,168.20 CNY in the previous period, indicating a decline of approximately 110.25%[162]. Investment and Development - The company's construction in progress increased by 95.40% compared to the beginning of the period, mainly due to investments in the second-phase project and the construction of the Qufu Tianli New District[28]. - Research and development expenses rose by 54.49% to 6.15 million yuan, mainly due to the consolidation of Qufu Tianli's R&D expenditures[35]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[170]. Risks and Challenges - The company faces risks related to raw material price fluctuations, acquisition integration, management risks from expansion, and risks associated with internationalization[6]. - The company faces risks from fluctuations in raw material prices, which could impact profit margins, and plans to mitigate this through product upgrades and cost control measures[58]. - Management risks are anticipated due to rapid company expansion, prompting the need for enhanced management practices and talent development[60]. Shareholder and Stock Information - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has committed to stabilizing its stock price and will adhere to the regulations outlined in the stock price stabilization plan[77]. - The company will not transfer its shares during the lock-up period and will adhere to the specified reduction limits post-lock-up[68]. - The company has a lock-up period of 36 months for shares held prior to the IPO, during which no transfer or management by others is allowed[72]. Environmental and Social Responsibility - The company has established a wastewater treatment station with a design capacity of 180 tons per day, operating normally and meeting discharge standards[105]. - The company actively participates in poverty alleviation efforts, providing assistance to impoverished individuals in Huainan City[112]. - Anhui Shanhe Pharmaceutical Auxiliary Co., Ltd. invested over 500,000 RMB to install 6 sets of online monitoring equipment, ensuring pollutant discharge meets national standards[111]. Corporate Governance - The financial report for the first half of 2018 was not audited[137]. - The company did not experience any changes in its board of directors or senior management during the reporting period[132]. - The company has not faced any penalties or rectification issues during the reporting period[87].

Financial Performance - Total revenue for Q1 2018 reached ¥108,544,431.37, an increase of 44.52% compared to ¥75,106,083.28 in the same period last year[8] - Net profit attributable to shareholders was ¥15,829,612.45, up 35.73% from ¥11,662,600.84 year-on-year[8] - Net profit after deducting non-recurring gains and losses was ¥13,394,176.56, reflecting a 31.05% increase from ¥10,220,617.08 in the previous year[8] - Basic earnings per share rose to ¥0.17, a 30.77% increase compared to ¥0.13 in the same period last year[8] - Total profit for Q1 2018 was 21.20 million RMB, reflecting a year-on-year increase of 55.48%, driven by higher sales revenue and Qufu Tianli's profit contribution[23] - The company's operating profit reached CNY 18,854,803.92, which is a 46.2% increase from CNY 12,894,078.44 in the same quarter last year[67] - The total comprehensive income for the period was CNY 17,866,091.69, compared to CNY 11,662,600.84 in the previous year, reflecting a growth of 53.1%[68] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥685,877,416.48, a 2.92% increase from ¥666,403,829.62 at the end of the previous year[8] - The net assets attributable to shareholders increased by 3.56% to ¥457,167,824.95 from ¥441,460,030.36 at the end of the previous year[8] - Total liabilities were reported at CNY 152,484,190.48, slightly up from CNY 150,493,405.96[64] - Owner's equity rose to CNY 445,003,992.56 from CNY 432,102,197.13[64] Cash Flow - The company reported a net cash flow from operating activities of -¥8,910,423.33, a significant decrease of 998.51% compared to ¥991,687.65 in the same period last year[8] - Cash flow from operating activities for Q1 2018 was -8.91 million RMB, a decrease of 998.51% year-on-year, primarily due to increased cash outflows from purchasing and selling activities[24] - The net cash flow from operating activities was -8,910,423.33 CNY, compared to 991,687.65 CNY in the previous period, indicating a decline in operational performance[74] - The ending balance of cash and cash equivalents decreased to 94,473,011.59 CNY from 123,511,689.01 CNY in the previous period, reflecting a decline in liquidity[75] Market and Strategic Focus - The company is focusing on international market expansion as a strategic priority, which may involve various risks including legal and regulatory challenges[12] - The company is actively expanding its market presence and product sales, which have shown stable growth[26] - The company continued to focus on "transformation and upgrading" as part of its annual operational plan, enhancing production and management efforts[28] Shareholder Commitments - The company is committed to maintaining compliance with its commitments regarding shareholding and stock price stability[30] - The company has committed to a 36-month lock-up period for its shares following the IPO, during which no shares will be transferred or managed by others[36] - The company will take necessary measures to ensure that its shares are legally locked up and will not be subject to disputes, pledges, or freezes[40] - The company has stated that any profits gained from violating the lock-up commitments will be returned to the company, and it will compensate investors for any direct losses incurred[37] Investment and Fund Utilization - The total amount of raised funds is 14,868 million CNY, with 745.7 million CNY invested in the current quarter[47] - The cumulative amount of raised funds invested is 14,561.58 million CNY, with a utilization rate of 97.06% for the new drug excipient production line project[47] - The new drug excipient production line project has a total investment of 12,610 million CNY, with 1,434.2 million CNY invested to date[47] - The pharmaceutical excipient engineering research center construction project has an investment of 726.43 million CNY, exceeding the planned investment by 109.63%[47] Operational Challenges - The company faces risks related to fluctuations in raw material prices, which could impact profit margins[11] - The company's board approved a plan to delay the expansion of a new production line for pharmaceutical excipients by 18 months due to underperformance in expected sales volume[49]

Financial Performance - The company's operating revenue for 2017 was CNY 339,358,774.96, representing an increase of 18.49% compared to CNY 286,403,295.82 in 2016[17] - The net profit attributable to shareholders for 2017 was CNY 50,335,766.64, a growth of 3.18% from CNY 48,785,593.61 in the previous year[17] - The net cash flow from operating activities increased by 14.78% to CNY 63,512,143.02, up from CNY 55,334,018.09 in 2016[17] - The total assets at the end of 2017 reached CNY 666,403,829.62, marking a 29.94% increase from CNY 512,849,865.51 at the end of 2016[17] - The basic earnings per share for 2017 was CNY 0.540, reflecting a 1.89% increase from CNY 0.530 in 2016[17] - The company reported a quarterly revenue of CNY 110,640,325.18 in Q4 2017, the highest among the four quarters[19] - The company reported a net profit of CNY 9,582,066.68 in 2017, an increase from CNY 5,582,580.16 in 2016, representing a growth of 71.8%[24] - The total non-recurring gains and losses for the year amounted to CNY 9,582,066.68, with no items classified as recurring losses[24] - Operating profit reached 60.76 million yuan, reflecting a growth of 12.27% year-on-year[36] - The company achieved total operating revenue of 339.36 million yuan, an increase of 18.49% compared to the previous year[36] Dividend Policy - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, with a capital reserve increase of 5 shares for every 10 shares held[6] - The total cash dividend for 2017 amounted to CNY 18,560,000, representing 100% of the distributable profit[101] - The profit distribution plan for 2017 includes a cash dividend of CNY 2.00 per 10 shares and a capital reserve conversion of 5 shares for every 10 shares held[102] - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditure phases[101] - The profit distribution plan for 2017 is subject to approval at the annual shareholders' meeting[102] - The company has consistently increased its cash dividend payouts over the past three years, reflecting a commitment to shareholder returns[103] Market Position and Products - The company specializes in the research, production, and sales of pharmaceutical excipients, ranking among the top suppliers in China for oral solid dosage forms[27] - Key products include microcrystalline cellulose and hydroxypropyl cellulose, which have been recognized as high-tech products in Anhui Province[27] - The company holds a pharmaceutical production license and various national industrial product production licenses for its excipients[27] - The company’s customer base primarily consists of pharmaceutical companies, with products also applicable in health supplements and the food industry[27] - The company is positioned as a leading domestic manufacturer of excipients for oral solid dosage forms[38] - The industry is experiencing a shift towards the development of new excipients, which has been prioritized in national technology plans[38] Research and Development - The company invested CNY 8,595,360.36 in R&D, representing 3.06% of the total revenue, with 2 invention patents granted and 3 pending[63] - The company has established a new technology center to enhance its research and innovation capabilities[51] - The company plans to enhance R&D and quality improvement by increasing research funding and recruiting high-level scientific talent, aiming for DMF registration in the US and CEP certification in the EU for some products[93] - Research and development expenditures have increased by 12%, reflecting the company's commitment to innovation and product improvement[190] Acquisitions and Investments - The company acquired a 52% stake in Qufu Tianli, a top three domestic supplier of oral solid dosage pharmaceutical excipients, enhancing its competitive position[41] - The company invested CNY 106 million to acquire a 52% stake in Qufu Tianli Pharmaceutical Excipients Co., which is performing well[51] - The company is actively seeking domestic and international merger and acquisition opportunities, with plans to support the operational management of Qufu Tianli Company and aim for trial production within the year[94] - Strategic acquisitions are planned, with a budget of 300 million CNY allocated for potential mergers and acquisitions in the pharmaceutical sector[190] Risk Management - The company identified risks related to raw material price fluctuations and management challenges due to expansion and internationalization[6] - The company faces risks from fluctuations in raw material prices, which could significantly reduce gross margins and impact cost control[95] - The company acknowledges the risk of acquisition integration and the need to develop high-end or new pharmaceutical excipients to maintain revenue growth[96] - The company is expanding its international market presence, which brings risks related to understanding foreign laws and regulations, currency fluctuations, and talent shortages[96] Corporate Governance and Compliance - The company has committed to a share lock-up period of 36 months from the date of listing, during which no shares will be transferred or managed by others[111] - The company will ensure compliance with the "Stabilization Share Price Plan" and will take necessary actions to fulfill its obligations[110] - The company has established a clear framework for handling stock price stabilization, including measures to address any potential failures in compliance[117] - The company has pledged to compensate investors for any direct losses caused by violations of these commitments[112] Social Responsibility and Environmental Commitment - The company is committed to social responsibility, ensuring environmental protection and community engagement alongside economic growth[92] - The company has actively engaged in charitable activities, including donations to earthquake-stricken areas and support for local charities[145] - The company has a commitment to environmental protection, with no instances of exceeding pollution discharge standards reported[150] - The company has invested over 500,000 RMB in environmental monitoring equipment, installing six sets of online monitoring devices to ensure pollutant discharge meets national standards[159] Employee Welfare and Development - The company has a structured approach to employee welfare, focusing on their health, safety, and overall well-being[145] - The total pre-tax remuneration for directors and senior management during the reporting period amounted to CNY 1,604,294.06[195] - The company has a total of 590 employees who received salaries during the reporting period[196] - Each department develops an annual training plan based on needs assessment and past training feedback, which is then approved by the HR department[198]

Financial Performance - Operating revenue for the reporting period was ¥75,729,312.47, representing a year-on-year growth of 23.21%[7] - Net profit attributable to shareholders was ¥8,950,279.92, a slight increase of 3.13% compared to the same period last year[7] - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,495,997.20, a decrease of 1.48% year-on-year[7] - Basic earnings per share for the reporting period was ¥0.0964, an increase of 3.10% year-on-year[7] - The weighted average return on net assets was 2.11%, a decrease of 0.14% compared to the previous year[7] - The company reported a significant increase in revenue for Q3 2017, with a year-over-year growth of 25%[34] - Net profit for Q3 2017 was CNY 9,596,025.24, up from CNY 8,678,252.75 year-over-year, reflecting a growth of approximately 10.6%[56] - The net profit attributable to shareholders of the parent company was CNY 8,950,279.92, compared to CNY 8,678,252.75 in the previous year[56] - Total operating revenue for Q3 2017 reached CNY 75,729,312.47, an increase from CNY 61,462,397.00 in the same period last year[55] Assets and Liabilities - Total assets at the end of the reporting period reached ¥631,512,359.05, an increase of 23.14% compared to the end of the previous year[7] - The company's total liabilities increased by 60.68% to 49.21 million yuan, primarily due to increased bank acceptance bills for raw material purchases[19] - The company's total liabilities rose from CNY 110,145,147.47 to CNY 150,709,976.18, reflecting an increase of approximately 37%[49] - The equity attributable to shareholders increased from CNY 402,704,718.04 to CNY 439,570,047.69, a growth of about 9%[50] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥16,351,069.52, down 50.74% compared to the previous year[7] - The company's cash and cash equivalents net increase for the first nine months was 11.42 million yuan, a decrease of 47.18% year-on-year, mainly due to cash flow from investment and financing activities[21] - The cash inflow from operating activities totaled CNY 200,295,654.79, an increase of 7.4% compared to CNY 186,227,780.61 in the previous period[71] - The net cash flow from operating activities was CNY 16,351,069.52, down 50.8% from CNY 33,191,936.63 in the same period last year[71] Investments and Acquisitions - The company completed the acquisition of 52% of Qufu Tianli Pharmaceutical Excipients Co., Ltd. for a total cash consideration of 106.12 million yuan, enhancing market share and industry position[22] - The company's investment income for the first nine months was 3.38 million yuan, an increase of 43.33% year-on-year, due to higher returns from financial products[20] - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,388[11] - The largest shareholder, Yin Zhenglong, holds 26.69% of the shares, totaling 24,769,556 shares[11] - Future guidance includes maintaining a stable dividend payout ratio of 40% of net profits, ensuring shareholder returns while reinvesting in growth initiatives[31] - The company has committed to a share buyback program, aiming to repurchase up to 5% of its outstanding shares over the next 12 months[30] Market and Growth Strategies - User data indicates a growth in active users by 15% compared to the previous quarter, reaching 1.2 million active users[28] - The company expects a revenue growth forecast of 25% for Q4 2017, driven by new product launches and market expansion strategies[29] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[31] - Research and development investments increased by 40% in 2017, focusing on innovative drug formulations[39] Operational Efficiency - The gross margin for Q3 2017 was reported at 35%, a slight improvement from 33% in Q2 2017[28] - A new strategic partnership was announced, aimed at improving supply chain efficiency and reducing costs by 15%[36] - The company has implemented a cash dividend policy, distributing at least 20% of the distributable profits when there are no significant capital expenditure plans[41]

Financial Performance - Total revenue for the first half of 2017 was CNY 152,989,137.31, an increase of 7.39% compared to CNY 142,466,764.35 in the same period last year[19]. - Net profit attributable to shareholders was CNY 25,144,208.77, a decrease of 7.88% from CNY 27,294,041.51 year-on-year[19]. - Net profit after deducting non-recurring gains and losses was CNY 20,465,089.47, down 16.64% from CNY 24,549,882.42 in the previous year[19]. - Basic earnings per share decreased by 6.90% to CNY 0.27 from CNY 0.29 year-on-year[19]. - The company achieved total operating revenue of CNY 152.99 million, a year-on-year increase of 7.39%[40]. - The net profit attributable to shareholders was CNY 25.14 million, a decrease of 7.88% compared to the same period last year[40]. - The net profit after deducting non-recurring gains and losses was CNY 20.47 million, down 16.64% year-on-year[40]. - Operating profit for the first half of 2017 was CNY 26,587,565.53, down 5.3% from CNY 30,191,069.03 in the previous year[143]. - The total profit for the first half of 2017 was CNY 29,404,102.98, down 7.9% from CNY 31,917,717.51 year-on-year[144]. Cash Flow and Investments - Net cash flow from operating activities was CNY 18,289,971.53, a decline of 41.89% compared to CNY 31,473,334.19 in the same period last year[19]. - Total cash inflow from investment activities reached CNY 368,489,832.21, significantly up from CNY 148,918,412.16, marking an increase of 147.5%[151]. - The net cash flow from investment activities was CNY 78,670,614.44, compared to CNY 19,872,911.65 in the previous period, reflecting a growth of 295.5%[151]. - Cash and cash equivalents at the end of the period amounted to CNY 199,824,681.96, up from CNY 151,622,590.70, indicating a 31.7% increase[152]. - The company received CNY 365,000,000.00 from investment recoveries, a substantial increase from CNY 145,000,000.00 in the prior period, representing a growth of 151.7%[153]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 526,639,838.42, an increase of 2.69% from CNY 512,849,865.51 at the end of the previous year[19]. - Total liabilities amounted to CNY 112,346,775.75, compared to CNY 110,145,147.47, showing a growth of about 2%[135]. - Owner's equity reached CNY 414,293,062.67, up from CNY 402,704,718.04, marking an increase of approximately 2.9%[136]. - Current assets totaled CNY 348,905,820.71, slightly down from CNY 349,060,330.93, indicating a decrease of about 0.04%[134]. - Non-current assets rose to CNY 177,734,017.71 from CNY 163,789,534.58, reflecting an increase of approximately 8.5%[134]. Research and Development - The company has obtained 9 patents and 25 non-patented technologies that constitute its core technology, which is widely applied in its main business and major products[30]. - The company has successfully applied several proprietary technologies, including the preparation method of sodium starch glycolate, which is domestically leading[31]. - The company has a total of 18 proprietary technology preparation methods that are either successfully applied or in pilot production, all of which are domestically leading[33]. - The company emphasizes increasing R&D efforts and collaboration with universities and research institutions to enhance product development capabilities[69]. Market and Business Strategy - The company continues to focus on the research, production, and sales of pharmaceutical excipients, with no significant changes in its main business operations[26]. - The company is actively expanding its international market presence, which will be a strategic focus for future development, while facing risks related to political, economic, and cultural differences in various countries[70]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[143]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance structure and an independent operational system to meet current management needs, with plans to enhance talent training and recruitment[70]. - The company confirmed that the use of raised funds was reasonable, compliant, and disclosed in a timely and accurate manner[57]. - The company has not engaged in derivative investments or entrusted loans during the reporting period[62][63]. - There were no significant penalties or rectification situations reported during the period[96]. Shareholder Information - The total number of shares is 92,800,000, with 54.56% being restricted shares[114]. - The largest shareholder, Yin Zhenglong, holds 24,769,556 restricted shares, which will be released on May 15, 2018[116]. - The company has no foreign shareholding, with all shares held by domestic investors[114]. - The company plans not to distribute cash dividends or issue bonus shares during the reporting period[6]. Financial Reporting and Accounting - The financial report for the first half of 2017 was not audited[131]. - The accounting policies and estimates are based on the enterprise accounting standards, ensuring compliance and accuracy[173]. - The company has included its subsidiary, Hefei Shanhe Pharmaceutical Technology Co., Ltd., in the consolidated financial statements[170]. - The company assesses the fair value of financial assets and liabilities using the most advantageous market prices when a primary market is not available[196].

Financial Performance - Total revenue for Q1 2017 was ¥75,106,083.28, an increase of 7.29% compared to ¥70,002,490.85 in the same period last year[9] - Net profit attributable to shareholders decreased by 7.31% to ¥11,662,600.84 from ¥12,582,906.96 year-on-year[9] - Basic earnings per share decreased by 7.14% to ¥0.13 from ¥0.14 in the same period last year[9] - The company achieved total operating revenue of RMB 75.11 million in Q1 2017, representing a year-on-year increase of 7.29%[25] - The net profit attributable to shareholders was RMB 11.66 million, a decrease of 7.31% compared to the same period last year[25] - The net profit after deducting non-recurring gains and losses was 10.22 million RMB, down 8.55% year-on-year[28] - Operating profit decreased to ¥12,993,822.17 from ¥14,367,259.33, reflecting a decline of approximately 9.5%[49] - Net profit for the period was ¥11,662,600.84, down from ¥12,582,906.96, which is a decrease of about 7.3%[49] Cash Flow and Assets - Net cash flow from operating activities dropped significantly by 88.53% to ¥991,687.65 compared to ¥8,643,824.27 in the previous year[9] - The company’s cash and cash equivalents net increase was RMB 6.13 million, a decrease of 94.07% year-on-year[24] - Cash flow from operating activities was ¥57,328,145.39, compared to ¥51,828,177.65 in the previous period, indicating an increase of about 10.5%[56] - The net cash flow from operating activities for Q1 2017 was ¥991,687.65, a decrease of 88.5% compared to ¥8,643,824.27 in Q1 2016[57] - Cash and cash equivalents at the end of the period amounted to ¥123,511,689.01, down from ¥212,548,787.28 at the end of Q1 2016[58] - The total current assets increased to CNY 356,248,567.15 from CNY 349,060,330.93, representing a growth of approximately 2.3%[40] - Total assets at the end of the reporting period were ¥523,914,474.19, reflecting a 2.16% increase from ¥512,849,865.51 at the end of the previous year[9] Liabilities and Equity - Total liabilities decreased slightly to CNY 109,476,694.14 from CNY 110,145,147.47, a reduction of about 0.6%[42] - The total equity attributable to shareholders increased to CNY 414,437,780.05 from CNY 402,704,718.04, reflecting a growth of approximately 2.4%[43] - The total liabilities stood at ¥106,257,573.99, a decrease from ¥108,568,684.91[49] - The company's equity increased to ¥408,874,023.86 from ¥397,551,693.27, showing a growth of approximately 2.9%[49] Investments and Projects - The company has invested a total of 639.94 million RMB from the raised funds in the current quarter, with a cumulative investment of 1,169.34 million RMB[31] - The project for expanding the production line for new pharmaceutical excipients has been delayed by 18 months due to market conditions and strategic considerations[32] - The new pharmaceutical excipients technology renovation project has a completion rate of 99.19%[31] - The company has not changed the purpose of the raised funds, with no funds being used for bank loan repayment or to supplement working capital[32] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,695[15] - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling 13.92 million RMB, to shareholders[34] Market and Strategic Focus - The company faces risks from fluctuations in raw material prices, which could significantly impact profit margins[12] - The company is focusing on international market expansion as a strategic priority, which may introduce various risks including legal and regulatory challenges[12] - The company has established an international trade department and is actively seeking international certifications to mitigate potential risks[13] - Future outlook remains cautiously optimistic, with management indicating potential for market expansion and strategic initiatives[38] Receivables and Expenses - Accounts receivable at the end of the reporting period amounted to RMB 42.10 million, an increase of 57.49% from the beginning of the period, primarily due to sales growth[22] - Other receivables increased by 181.82% to RMB 0.43 million, mainly due to an increase in cash reserves and guarantees[22] - The company reported a decrease in financial expenses by 502.65% to RMB -0.55 million, attributed to increased bank deposit interest[23] - The company paid ¥10,930,467.05 in employee compensation, which increased from ¥9,035,391.38 in the previous year[57] Supplier and Customer Concentration - The top five suppliers accounted for 42.89% of the total procurement amount, up from 38.92% in the same period last year[27] - The top five customers contributed 9.20% to the total sales, down from 13.12% in the previous year[27] - The company has not experienced any adverse effects from changes in its top five suppliers or customers during the reporting period[27] Research and Development - The company is currently engaged in ongoing research and development for new products and technologies, although specific details were not disclosed in the report[38]

Financial Performance - The company's operating revenue for 2016 was CNY 286,403,295.82, representing a 10.61% increase compared to CNY 258,919,172.48 in 2015[17] - The net profit attributable to shareholders for 2016 was CNY 48,785,593.61, which is a 10.19% increase from CNY 44,272,969.65 in 2015[17] - The net cash flow from operating activities increased by 29.72% to CNY 55,334,018.09 in 2016, up from CNY 42,657,407.59 in 2015[17] - The total assets at the end of 2016 were CNY 512,849,865.51, an increase of 11.96% from CNY 458,062,181.66 at the end of 2015[17] - The net assets attributable to shareholders at the end of 2016 were CNY 402,704,718.04, reflecting a 10.88% increase from CNY 363,199,124.43 at the end of 2015[17] - The basic earnings per share for 2016 was CNY 0.53, a 6.00% increase compared to CNY 0.50 in 2015[17] - The company reported a quarterly revenue of CNY 82,474,134.47 in Q4 2016, which was the highest among the four quarters[19] - The weighted average return on equity for 2016 was 12.74%, down from 15.73% in 2015[17] - The company reported a net profit of ¥3,474,185.80 in 2016, a decrease of 21% compared to ¥4,400,545.81 in 2015[23] - The total non-operating income for 2016 was ¥3,357,116.46, which is a significant increase of 50.7% from ¥2,228,321.49 in 2015[23] Dividend Policy - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares to all shareholders[6] - The company distributed a cash dividend of RMB 1.50 per share (including tax), totaling RMB 13,920,000.00 for the year 2016, which represents 28.53% of the net profit attributable to ordinary shareholders[85] - The company plans to distribute at least 20% of the distributable profits as cash dividends in the future, contingent on the absence of significant capital expenditure arrangements[84] - The cash dividend policy is aligned with the company's articles of association and has been approved by the shareholders' meeting[83] Research and Development - The company is focused on the research and development of pharmaceutical excipients, with several products recognized for their quality and innovation[27] - The company has received two invention patents and two science and technology progress awards during the reporting period[44] - Research and development expenses amounted to ¥7,984,433.70, accounting for 3.07% of the company's revenue[57] - The company is actively involved in the development of new pharmaceutical excipients, including projects for silica and cross-linked carboxymethyl cellulose sodium[171] - The company has a strong focus on R&D, with several patents filed for new excipient formulations, enhancing its competitive edge in the pharmaceutical industry[171] Market Position and Strategy - The company maintains a leading position in the domestic oral solid dosage pharmaceutical excipients market[37] - The industry is experiencing a shift towards the development of new pharmaceutical excipients, which are prioritized in national technology support programs[37] - The company aims to leverage its expertise in pharmaceutical excipients to capture a larger market share in the industry[163] - The company is expanding its market presence through strategic partnerships and investments in health management services[172] Operational Efficiency - The company implements strict supplier selection standards to ensure quality and stability in raw material procurement[32] - The production process adheres to GMP standards, ensuring effective and stable product quality control[33] - The sales model primarily involves direct sales to downstream enterprises, enhancing customer loyalty through technical support and solutions[35] - The company achieved total operating revenue of CNY 286.40 million in 2016, representing a year-on-year growth of 10.61%[43] - Operating profit for the year was CNY 53.83 million, an increase of 12.84% compared to the previous year[43] Corporate Governance - The company has established a sound corporate governance structure to support its operational needs despite the expansion[77] - The governance structure includes a shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant laws and regulations[182] - The company has implemented an internal control system to enhance governance and operational efficiency[187] - The audit committee reviewed quarterly audit reports and monitored the use of raised funds[193] Employee Management - The total number of employees in the company is 574, with 373 in production, 77 in sales, 66 in technical roles, 8 in finance, and 50 in administration[177] - The company has established a salary policy that aligns with job value and differentiates based on technical and professional capabilities[178] - The company emphasizes employee training and development, enhancing their capabilities to promote faster corporate growth[134] Risks and Challenges - The company faces risks from fluctuations in raw material prices, which could impact profit margins[76] - The traditional or low-end drug excipient market is expected to slow down, necessitating the development of mid-to-high-end products[76] - The company faced risks related to international expansion, including legal and regulatory challenges, currency fluctuations, and talent shortages[77] - Management risks have arisen due to rapid company growth, necessitating higher standards in management, human resources, and market development[77] Shareholder Information - The total share capital increased to 92,800,000 shares after a capital reserve conversion, with a bonus share distribution of 10 shares for every 10 shares held[81] - The largest shareholder, Yin Zhenglong, holds 26.69% of the shares, totaling 24,769,556 shares[147] - The company has a total of 14,555,000 shares held by independent directors, with no changes reported[158] - The company has no preferred shares during the reporting period[155] Compliance and Legal Matters - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[110] - There were no significant lawsuits or arbitration matters during the year[114] - The company did not experience any penalties or rectification situations during the reporting period[115] - There were no significant contracts or leasing situations reported[123]

Financial Performance - Total revenue for the reporting period was CNY 61,462,397.00, reflecting a year-on-year growth of 7.35%[8] - Net profit attributable to shareholders decreased by 17.20% to CNY 8,678,252.75 compared to the same period last year[8] - The company reported a net profit excluding non-recurring gains and losses of CNY 7,608,266.67, an increase of 10.72% year-on-year[8] - The company achieved total operating revenue of 203.93 million yuan for the first nine months of 2016, an increase of 7.70% compared to the same period last year[23] - The net profit attributable to shareholders for the same period was 35.97 million yuan, reflecting a growth of 16.44% year-on-year, while the net profit after deducting non-recurring gains and losses was 32.16 million yuan, up 19.30% year-on-year[23] - The net profit for the current period was ¥8,453,273.56, down from ¥10,082,187.80 in the previous period, indicating a decrease of about 16.1%[68] - The total comprehensive income for the current period was ¥8,678,252.75, down from ¥10,481,598.46 in the previous period, a decrease of about 17.2%[68] - The total profit amounted to ¥40,607,423.74, up 17.5% from ¥34,475,703.95 in the previous period[76] Assets and Liabilities - Total assets increased by 6.48% to CNY 487,725,424.73 compared to the end of the previous year[8] - Total assets reached CNY 478,824,111, an increase from CNY 453,414,170 at the beginning of the period, representing a growth of 5.6%[60] - The company's total liabilities were CNY 93,478,087, slightly down from CNY 93,699,959, indicating a decrease of 0.2%[61] - Accounts receivable at the end of the reporting period amounted to 35.42 million RMB, an increase of 54.19% compared to the beginning of the period, primarily due to sales growth[20] - Inventory at the end of the reporting period was 20.08 million RMB, an increase of 34.92% compared to the beginning of the period, driven by sales growth and increased stock of goods and raw materials[20] - The company's capital stock increased to 92.80 million RMB, a 100% increase from the beginning of the period, due to a capital reserve conversion[20] - The accounts receivable increased to approximately 35.42 million RMB from 22.97 million RMB, indicating a rise in sales or credit terms[55] - The inventory level rose to approximately 20.09 million RMB from 14.89 million RMB, reflecting increased production or stockpiling[55] Cash Flow - The company’s cash flow from operating activities increased by 47.31% to CNY 33,191,936.63 year-to-date[8] - Net cash flow from operating activities for the first nine months was 33.19 million RMB, an increase of 47.31% year-on-year, mainly due to increased cash receipts from sales[22] - The net cash flow from operating activities was CNY 34,977,826.98, an increase of 56.5% compared to CNY 22,370,201.45 in the same period last year[83] - The cash flow from financing activities resulted in a net outflow of ¥9,334,511.77, compared to a net inflow of ¥144,477,359.00 in the same period last year[80] - The ending balance of cash and cash equivalents was CNY 127,292,613.71, up from CNY 88,592,455.75 at the end of the same quarter last year[84] - The company reported a cash balance of approximately 130.87 million RMB at the end of the reporting period, an increase from 109.24 million RMB at the beginning of the period[55] Investment and Expansion - The design annual production capacity for microcrystalline cellulose will increase from 2,000 tons to 7,000 tons post-IPO fundraising projects[11] - The new pharmaceutical excipient production line expansion project has a total investment of 126.10 million RMB, with 72.72% of the investment completed[46] - The magnesium stearate and silica production line renovation project has a total investment of 21.055 million RMB, with 37.84% of the investment completed[46] - Investment income for the first nine months of 2016 was 2.36 million yuan, a significant increase of 89.69% year-on-year, primarily due to higher returns from financial products[23] - The company received CNY 245,000,000.00 from investment recoveries, a substantial increase from CNY 133,000,000.00 in the previous year[83] Risk Factors and Compliance - The company faces risks from fluctuations in raw material prices, which could impact profit margins and working capital[12] - The company has identified important risk factors that may adversely affect future operations and is taking measures to address these challenges[25] - There were no violations regarding external guarantees or non-operating fund occupation by major shareholders during the reporting period[50][51] - The company has committed to a share lock-up period of 36 months from the date of listing, during which no shares will be transferred or managed by others[34] - The company will publicly announce any share reduction plans three trading days in advance, and the reduction will be conducted through recognized methods[35] - The company will ensure that any reduction in shareholding will not occur until the lock-up period has expired[34] Shareholder Commitments - The company has pledged to compensate investors for any direct losses caused by violations of commitments related to share transfers[37] - The company will take necessary measures to ensure compliance with the commitments made regarding share transfers and price stabilization[36] - If the company fails to fulfill the obligations under the "Stabilizing Stock Price Plan," it will publicly explain the reasons and apologize to shareholders and the public investors[40] - The company has confirmed that all commitments to minority shareholders have been fulfilled on time[44]

Financial Performance - Total revenue for the first half of 2016 was CNY 142,466,764.35, representing a 7.85% increase compared to CNY 132,094,836.61 in the same period last year[18]. - Net profit attributable to ordinary shareholders was CNY 27,294,041.51, a 33.72% increase from CNY 20,410,760.30 year-on-year[18]. - Net cash flow from operating activities reached CNY 31,473,334.19, up 74.20% from CNY 18,066,959.35 in the previous year[18]. - Basic earnings per share increased by 5.36% to CNY 0.59 from CNY 0.56 in the same period last year[18]. - The net profit after deducting non-recurring gains and losses was CNY 24,549,882.42, reflecting a 22.23% increase from CNY 20,084,234.38 in the previous year[18]. - The total comprehensive income for the period was CNY 26,458,538.57, compared to CNY 19,590,764.17 in the previous period, representing an increase of approximately 35.5%[133]. - The total comprehensive income for the current period is 27,294,041.51 CNY, reflecting a significant increase compared to the previous period[142]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 484,753,556.12, a 5.83% increase from CNY 458,062,181.66 at the end of the previous year[18]. - The total liabilities of the company at the end of the reporting period were CNY 103,540,390.18, compared to CNY 94,863,057.23 at the beginning, reflecting an increase of about 9.8%[122]. - The company's equity attributable to shareholders increased to CNY 381,213,165.94 from CNY 363,199,124.43, showing a growth of approximately 5.0%[122]. - The company's total current assets reached CNY 327,605,446.00, up from CNY 301,626,724.75, indicating an increase of about 8.6%[120]. - Cash and cash equivalents increased to CNY 151,622,590.70 from CNY 109,241,165.67, representing a growth of approximately 38.8%[119]. - The total number of restricted shares at the end of the period is 26,186,448[105]. Production Capacity and R&D - The design annual production capacity for microcrystalline cellulose will increase from 2,000 tons to 7,000 tons post-expansion[25]. - The design annual production capacity for hydroxypropyl cellulose will rise from 400 tons to 1,500 tons after the project completion[25]. - Research and development investment amounted to 4.1 million yuan, a slight decrease of 0.86% year-on-year[31]. - The company obtained 2 new invention patents during the reporting period, reflecting its commitment to R&D[29]. - The company is focusing on high-value product sales and has adjusted its product structure to improve profitability[34]. Cash Flow and Investments - Cash flow from operating activities increased by 74.20% to 31.47 million yuan, primarily due to increased sales receipts[31]. - The company reported a cash inflow from financing activities of CNY 155,559,200.00, with a net cash outflow of CNY 8,964,820.81, compared to a net inflow of CNY 145,277,359.00 in the previous period[137]. - The company recovered CNY 145,000,000.00 from investments, compared to CNY 13,000,000.00 in the prior period, reflecting a substantial increase of 1,015.4%[140]. Shareholder Information - The total number of shareholders at the end of the reporting period is 9,612[107]. - The largest shareholder, Yin Zhenglong, holds 26.69% of the shares, totaling 24,769,556 shares[107]. - The company reported a total share capital increase from 46,400,000 shares to 92,800,000 shares due to a rights distribution plan[102]. - The rights distribution plan included a cash dividend of 2.00 RMB per 10 shares and a bonus issue of 10 shares for every 10 shares held[102]. Compliance and Governance - The company confirmed compliance with all necessary procedures regarding cash asset management[80]. - The company did not experience any changes in its board of directors, supervisors, or senior management during the reporting period[114]. - The half-year financial report for the company has not been audited[96]. - There were no significant litigation or arbitration matters during the reporting period[66]. Market Strategy - The company plans to enhance its marketing efforts targeting top domestic pharmaceutical companies and foreign joint ventures[29]. - The company is actively participating in international industry exhibitions to expand its market presence[44]. - The pharmaceutical excipients industry is experiencing stable growth, with a 10.4% year-on-year increase in revenue for large-scale pharmaceutical enterprises in the first four months of the year[41]. Financial Management - The company’s financial expenses showed a net income of CNY -1,247,216.37, compared to CNY -251,529.70 in the previous period, indicating improved financial management[129]. - The company has assessed its ability to continue as a going concern since the end of 2015 and found no issues affecting this capability[156]. - The financial statements prepared by the company comply with the requirements of the enterprise accounting standards, accurately reflecting the financial position as of June 30, 2016, and the operating results for the first half of 2016[158].