Business Overview - The company is a provider of innovative blood purification products, specializing in the research, development, production, and sales of blood perfusion-related products [3] - Products include single-use blood perfusion devices, single-use plasma bilirubin adsorbers, DNA immunoadsorption columns, and blood purification equipment, widely used in treating uremia, poisoning, severe liver diseases, autoimmune diseases, multiple organ failure, and ICU cases [3] - Blood purification technology is increasingly used as a third treatment option alongside surgery and medication [3] - The company's products are available in over 3,600 hospitals nationwide, with growing brand influence and rapid sales growth [3] Financial Performance - In 2017, the company achieved revenue of 718,491,131.27 yuan, a year-on-year increase of 32.16%, and net profit attributable to shareholders of 284,413,992.87 yuan, a year-on-year increase of 40.72% [3] - Key financial indicators for 2017 include a gross margin of 84.14%, net margin of 39.59%, operating cash flow of 304 million yuan, ROE of 22.21%, and debt-to-asset ratio of 18.26% [3] - In Q1 2018, revenue reached 207 million yuan, a year-on-year increase of 39.60%, and net profit attributable to shareholders was 89,976,900 yuan, a year-on-year increase of 50.89% [4] Core Competencies - A competitive talent team that shares in the company's growth [4] - Leading R&D capabilities and technological advantages [4] - Advanced marketing methods and a well-structured marketing organization [4] Future Development Plans - Focus on the blood purification field, deepen the domestic market, and expand overseas markets [4] - Develop new products to meet clinical needs and seek high-quality M&A targets to enhance product lines and technological capabilities [4] - Aim to build a comprehensive blood purification value chain and become a world-class high-tech medical technology enterprise group [4] Sales and Marketing - The company employs a buyout sales model through distributors, who then sell to hospital terminals [4] - Marketing strategies include demand stimulation, product promotion, and brand enhancement, supported by a self-built marketing team [4] - As of the end of 2017, the company had over 600 marketing personnel, with plans to expand the team in 2018 [5] Pricing and Technology - In 2017, the company reduced the price of HA130 from 680 yuan to 599 yuan, with no further price reduction plans [5] - The company holds relevant product patents and has mastered key technologies such as carrier synthesis, pore formation, activation, ligand grafting, and bio-film production [5] - The production process involves over 20 steps, each with strict control procedures to ensure product effectiveness, safety, and stability [5] Investor Communication - The company ensured transparent and fair communication with investors, adhering to information disclosure regulations and signing the required commitment letter [6]

Group 1: Impact of Policies on Products - The company's main product, disposable blood perfusion devices, is currently not included in the "centralized procurement" scope, and it is expected that it will not be included in the short term due to its low clinical usage and procurement volume [2][3] - The blood perfusion device does not meet the characteristics required for centralized procurement, such as high clinical usage, high procurement amounts, and maturity in clinical use [2][3] - If the product is included in centralized procurement in the future, sales are expected to increase significantly, enhancing the company's market share and profitability [3] Group 2: DRGs and Company Operations - The DRG (Diagnosis-Related Group) system is primarily applicable to acute inpatient cases and is not suitable for outpatient cases, which is relevant for the company's blood perfusion devices used in outpatient settings [3][4] - Most patients using the company's blood perfusion devices are outpatients, making them ineligible for DRG classification [3] Group 3: Business Development and Future Plans - The company is optimistic about its liver disease business, which has shown recovery in the second half of 2020 after the initial impact of COVID-19 [4] - Future development will focus on leveraging experience from the kidney disease sector to enhance the liver disease business [4] - The company plans to promote new products like dialysis machines and dialysis solutions through existing customer networks, emphasizing high-quality products and competitive pricing [4][5] Group 4: Long-term Strategy and Market Positioning - Over the next five years, the company aims to deepen its focus on kidney and liver disease, developing a comprehensive blood purification industry chain that includes medical devices, consumables, and services [5] - The company has initiated insurance products for kidney disease patients, enhancing customer loyalty and expanding its service offerings [5] - Future strategies include utilizing capital market resources and potential acquisitions to strengthen the company's unique blood purification industry chain [5]

Revenue and Profit - The company's revenue for Q3 2022 was ¥471,416,012.01, a decrease of 20.58% compared to the same period last year[3] - Net profit attributable to shareholders for Q3 2022 was ¥125,294,456.51, down 48.43% year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥120,418,512.92, a decrease of 47.86% compared to the previous year[3] - The company's basic earnings per share for Q3 2022 was ¥0.17, down 43.33% year-on-year[3] - Total operating revenue for the current period reached ¥2,025,701,872.97, an increase of 13.7% compared to ¥1,781,805,266.01 in the previous period[18] - Operating profit for the current period was ¥1,021,591,465.64, slightly up from ¥1,013,971,252.26 in the previous period, reflecting a growth of 0.1%[19] - Net profit attributable to shareholders of the parent company was ¥873,450,879.06, compared to ¥863,085,578.68 in the previous period, indicating a growth of 1.4%[19] - Basic earnings per share increased to ¥1.10 from ¥1.08 in the previous period, while diluted earnings per share rose to ¥1.08 from ¥1.07[20] Assets and Liabilities - The total assets at the end of Q3 2022 reached ¥5,144,905,239.58, an increase of 6.96% from the end of the previous year[3] - As of September 30, 2022, the total assets amounted to approximately CNY 5.14 billion, an increase from CNY 4.81 billion at the beginning of the year[15] - The total liabilities as of September 30, 2022, were approximately CNY 1.53 billion, compared to CNY 1.43 billion at the beginning of the year, indicating an increase of about 7.7%[16] - The company's equity attributable to shareholders rose to approximately CNY 3.59 billion from CNY 3.36 billion, marking an increase of about 6.9%[17] Cash Flow - The cash flow from operating activities for the year-to-date was ¥525,086,171.92, a decrease of 21.17% compared to the previous year[3] - Cash flow from operating activities generated a net amount of ¥525,086,171.92, down from ¥666,139,337.01 in the previous period, a decrease of 21.2%[21] - Cash inflow from investment activities totaled ¥2,113,400,711.80, compared to ¥2,330,043,064.21 in the previous period, reflecting a decrease of 9.3%[21] - The net cash flow from investing activities was -254,490,340.21 CNY, an improvement from -1,329,117,858.58 CNY in the previous year[22] - Total cash inflow from financing activities was 179,546,337.73 CNY, down from 1,192,629,344.86 CNY year-over-year[22] - The net cash flow from financing activities was -545,642,142.51 CNY, contrasting with a positive flow of 371,088,002.33 CNY in the previous year[22] - The cash and cash equivalents at the end of the period totaled 2,040,617,963.33 CNY, an increase from 1,278,225,616.54 CNY year-over-year[22] - The net decrease in cash and cash equivalents was -273,801,552.29 CNY, slightly better than -291,823,998.55 CNY in the previous year[22] Expenses and Costs - Research and development expenses increased by 68.86% year-on-year, totaling ¥162,284,135.93[8] - Total operating costs for the current period were ¥1,065,873,628.42, up from ¥821,488,233.10, representing a growth of 29.8%[18] - The company reported a tax expense of ¥146,865,226.90, slightly up from ¥146,513,524.66 in the previous period[19] Shareholder Information - The total number of ordinary shareholders reached 49,514, with the largest shareholder holding 43.97% of the shares[11] - The company’s largest shareholder, Dong Fan, holds 355,131,867 shares, representing a significant portion of the total equity[11] Inventory and Prepayments - The company reported a significant increase in inventory, which rose by 59.55% due to preparations for annual sales growth[6] - The inventory increased to approximately CNY 313.59 million from CNY 196.55 million, reflecting a growth of about 59.6%[15] - The company has seen a 101.71% increase in prepayments, primarily due to increased procurement prepayments[6] Other Financial Metrics - The weighted average return on equity was 3.62%, down 3.68% from the previous year[3] - The company received a VAT refund of approximately CNY 10.84 million, a significant increase of 3001.52% compared to the same period last year[9] - Cash paid for purchasing goods and services decreased by 30.76% to CNY 72.69 million, primarily due to a reduction in government subsidies received[9] - Cash paid to employees increased by 60.31% to CNY 478.19 million, attributed to an increase in employee count and average salary[9] - Total cash outflow from operating activities rose by 34.10% to CNY 1.72 billion, driven by increased procurement costs and employee compensation[9] - Cash inflow from financing activities decreased by 84.95% to CNY 179.55 million, mainly due to the absence of convertible bond issuance this year[10] - The company paid dividends amounting to CNY 720 million, reflecting a 35.59% increase compared to the previous year[10] Stock Options - The company has 243,016 stock options available for exercise in 2022, with 226,877 options exercised during the reporting period, leaving 16,138 options unexercised[14] Audit Status - The third quarter report was not audited, which may affect the perception of financial reliability[23]

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 20%[23] - The net profit attributable to shareholders was RMB 100 million, up 15% compared to the same period last year[23] - The company's revenue for the reporting period reached ¥1,554,285,860.96, representing a 30.80% increase compared to ¥1,188,254,809.14 in the same period last year[33] - Net profit attributable to shareholders was ¥748,156,422.55, up 20.64% from ¥620,140,698.34 year-on-year[33] - The net profit after deducting non-recurring gains and losses was ¥698,925,841.27, reflecting a 19.52% increase from ¥584,793,617.60 in the previous year[33] - The company achieved a revenue of 1.554 billion yuan in the first half of 2022, representing a year-on-year growth of 30.80%[76] - The net profit attributable to shareholders reached 748 million yuan, an increase of 20.64% compared to the same period last year[76] Market Expansion and Strategy - The company plans to launch two new products in Q4 2022, focusing on advanced blood purification technologies[23] - Future guidance indicates a projected revenue growth of 25% for the full year 2022[23] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[23] - A strategic acquisition of a local competitor is expected to be finalized by Q1 2023, enhancing the company's product portfolio[23] - The company has established partnerships with over 80 large hospitals for clinical research[66] - The company has ongoing major non-equity investments, including a blood dialysis product production base project with an investment of ¥3,890,352.25, which is 98% complete[118] Research and Development - The company has allocated RMB 50 million for R&D in new technologies for blood purification systems[23] - The company invested 99.8231 million yuan in R&D, a 95.09% increase, accounting for 6.42% of total revenue[66] - The company employs a combined research and development model, focusing on independent and collaborative R&D to enhance core technology and efficiency[50] - The company has a total of 288 authorized patents, including 59 invention patents[66] - The company has received 24 authorized patents in 2022, including 6 invention patents, bringing the total to 288 patents[90] Product Development and Innovation - The company has expanded its product offerings to include kidney nutrition products as part of its business development strategy[32] - The company launched a new product, the cytokine adsorption column, specifically designed for sepsis patients, which was officially marketed in December 2021[44] - The Future F20 blood purification device received its Class III medical device registration in 2020 and EU CE certification in January 2021, supporting multiple blood adsorption treatment modes[48] - The HA130 multi-center RCT study published in August 2022 demonstrated that the HP (HA130) + LFHD group had a 63% reduction in itching scores, while the HP (HA130) + HFHD group had a 51% reduction, indicating significant efficacy in treating uremic pruritus[77] - The expert consensus on hemoperfusion in maintenance hemodialysis patients was published, recommending hemoperfusion treatment for patients with severe uremic-related symptoms, providing a standardized clinical application guideline[78] Financial Management and Investments - No cash dividends will be distributed for the current fiscal year, as the company focuses on reinvestment[6] - The total investment during the reporting period was ¥158,782,343.43, a decrease of 32.23% compared to the same period last year[113] - The company has established a special fund for artificial liver treatment, supporting 58 research projects nationwide[86] - The company reported a total of 180 million yuan in entrusted financial management, with actual returns of 1,198.53 million yuan during the reporting period[136] Operational Efficiency and Challenges - The net cash flow from operating activities decreased by 8.87% to ¥448,667,761.61 from ¥492,315,765.05 in the previous year[33] - The company's weighted average return on equity was 20.69%, down from 22.94% in the previous year, indicating a decline in profitability[33] - The company faces risks from increasing competition in the blood perfusion market, which may lead to price reductions and impact future profitability[146] - The company is subject to regulatory risks, as changes in national policies could alter the competitive landscape of the medical device industry[146] Social Responsibility and Community Engagement - The company made charitable donations totaling ¥710,000 in the first half of 2022, contributing to various social responsibility initiatives[96] - The company donated a total of 7.9 million CNY for social welfare, including 3.72 million CNY in medical supplies to Xi'an[164] Corporate Governance and Shareholder Information - The company held its first extraordinary general meeting of 2022 on February 11, with an investor participation rate of 49.76%[151] - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual period[153] - The total number of shares increased from 805,497,338 to 805,497,338, with a net increase of 3,184,940 restricted shares[193] - The chairman and CEO, Dong Fan, increased his shareholding by 4,303,095 shares, amounting to 199,994,176.14 CNY during the reporting period[193]

健帆生物科技集团股份有限公司 2022 年第一季度报告全文 1 证券代码：300529 证券简称：健帆生物 公告编号：2022-044 债券代码：123117 债券简称：健帆转债 健帆生物科技集团股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导 性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、误导性陈述或重大遗 漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|------------------- ...

Dividend Distribution - The company plans to distribute a cash dividend of 9.00 RMB per 10 shares (including tax) to all shareholders, with no bonus shares issued[2]. - The proposed cash dividend for the 2021 fiscal year is 9.00 CNY per 10 shares, with a total distribution amounting to 716,985,376.20 CNY (including tax)[130][131]. - The cash dividend accounted for 100% of the total profit distribution amount[130]. Financial Performance - The company's operating revenue for 2021 was CNY 2,675,454,460.17, representing a 37.15% increase compared to CNY 1,950,780,490.05 in 2020[13]. - The net profit attributable to shareholders for 2021 was CNY 1,196,813,354.44, a 36.74% increase from CNY 875,240,536.84 in 2020[13]. - The net cash flow from operating activities for 2021 was CNY 1,249,414,597.21, up 30.49% from CNY 957,488,770.47 in 2020[13]. - The total assets at the end of 2021 were CNY 4,810,102,120.72, reflecting a 48.76% increase from CNY 3,216,670,261.94 at the end of 2020[13]. - The basic earnings per share for 2021 was CNY 1.49, a 35.45% increase compared to CNY 1.1 in 2020[13]. - The company reported a total of CNY 51,698,972.77 in government subsidies for 2021, compared to CNY 47,566,742.06 in 2020[15]. Market Expansion and Strategy - The company has a comprehensive strategy for future development, including potential market expansions and new product launches[2]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[12]. - The company is focused on developing new technologies and products in the medical device sector to enhance its competitive edge[6]. - The company is actively responding to the risks of centralized procurement by increasing its market share in critical illness and overseas markets[23]. - The company plans to expand into critical liver disease, cardiac surgery, and critical illness markets while enhancing its international market presence[87]. Research and Development - The company’s R&D investment for the reporting period was ¥173.77 million, accounting for 6.5% of total revenue, with a year-on-year growth of 115.17%[38]. - The company has established close research collaboration with over 80 large hospitals in China for clinical application research[38]. - The company is currently working on over 50 R&D projects, indicating a substantial increase in project volume compared to the previous year[63]. - The company has obtained 20 medical device registration certificates, an increase of 7 from the end of 2020[64]. - The company is developing several new products, including a hollow fiber hemodialyzer and blood purification devices, aimed at enhancing its product line and core competitiveness[60]. Governance and Compliance - The company emphasizes the importance of adhering to the disclosure requirements for medical device businesses as per the Shenzhen Stock Exchange guidelines[2]. - The company has established a robust governance structure to ensure compliance and accountability in its operations[2]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards and enhancing decision-making capabilities[95]. - The company has established a comprehensive internal control system to enhance operational efficiency and governance standards[95]. - The company has committed to timely and accurate information disclosure, adhering to legal requirements and enhancing investor confidence[95]. Risk Management - The company has faced various risk factors that may impact its future development, which are detailed in the report[2]. - The company is addressing the impact of centralized procurement in Hunan and developing strategies to mitigate associated risks[93]. - The company has established a strict quality control system for its Class III medical devices, ensuring compliance with national standards[91]. - Any future incidents related to product quality could significantly impact the company's operations and reputation[91]. Employee and Talent Management - The company has a diverse employee educational background, with 10 holding a doctorate, 194 with a master's degree, and 1,292 with a bachelor's degree[125]. - The company emphasizes talent development through targeted training programs to improve employee skills and organizational efficiency[127]. - The company introduced over 1,000 new talents in 2021, focusing on marketing, high-end management, and technology research and development[50]. - The company has implemented a stock incentive plan to enhance the responsibility and mission of the management team and core employees[126]. Social Responsibility - The company actively participated in social responsibility initiatives, donating medical supplies worth 3 million RMB to flood-affected areas and contributing 5 million RMB to the China Hepatitis Prevention Foundation[150]. - The company received multiple awards for its social responsibility efforts, including the "2020 Listed Company Social Responsibility Award" and recognition for contributions during the COVID-19 pandemic[150]. Financial Management and Investments - The company raised CNY 994.54 million through the issuance of convertible bonds, with CNY 49.22 million already utilized[79]. - The total committed investment for blood purification product capacity expansion project is CNY 76,254.27 million, with a cumulative investment of CNY 33,912.89 million, achieving 44.47% of the planned investment progress[80]. - The company has a total of 168,000,000 yuan in entrusted financial management, with 15,000,000 yuan remaining due[173]. - The company has no outstanding corporate bonds or non-financial corporate debt financing instruments[193][195]. Shareholder Information - The total number of shares held by the board members at the end of the reporting period is 386,509,307 shares, with a net decrease of 1,610,660 shares during the period[100]. - Major shareholder Dong Fan holds 43.55% of the shares, totaling 350,828,772 shares, with no changes during the reporting period[185]. - The company has a total of 8,847,589 shares held in its repurchase special securities account as of December 31, 2021[186]. - The company reported a total of 799,109,142 shares before the changes, which increased to 805,497,338 shares by the end of the reporting period[178].

Financial Performance - Revenue for Q3 2021 reached ¥593,550,456.87, a 33.19% increase compared to ¥445,657,614.95 in the same period last year[2] - Net profit attributable to shareholders was ¥242,944,880.34, reflecting a 30.07% growth from ¥186,780,990.40 year-on-year[2] - The net profit excluding non-recurring items was ¥230,969,324.74, up 26.61% from ¥182,430,082.30 in the previous year[2] - Basic earnings per share increased to ¥0.30, a rise of 30.43% compared to ¥0.23 in the same quarter last year[3] - The company reported a net cash flow from operating activities of ¥666,139,337.01, a 34.69% increase compared to ¥494,569,492.46 in the same period last year[2] - Net profit for the period was ¥862,064,846.32, a 37.77% increase year-over-year, attributed to rising sales revenue[8] - The total profit amounted to ¥1,008,578,370.98, reflecting a 36.63% increase, primarily due to increased sales revenue[8] - The net profit attributable to the parent company for Q3 2021 was ¥863,085,578.68, an increase of 37.5% compared to ¥627,410,475.05 in Q3 2020[22] - The basic earnings per share for Q3 2021 was ¥1.08, up from ¥0.79 in Q3 2020, representing a growth of 36.8%[22] - The company reported a comprehensive income total of ¥862,064,846.32 for Q3 2021, up from ¥625,716,200.23 in Q3 2020, reflecting a growth of 37.8%[22] Assets and Liabilities - Total assets as of September 30, 2021, amounted to ¥4,456,966,032.36, representing a 37.87% increase from ¥3,232,636,571.54 at the end of the previous year[3] - The company's total liabilities increased by 216.54% to ¥1,263,072,865.32, primarily due to the issuance of convertible bonds[6] - Owner's equity reached ¥3,193,893,167.04 in Q3 2021, up from ¥2,833,610,052.04 in Q3 2020, representing an increase of 12.7%[19] - Total current assets amounted to CNY 1,986,610,992.82, while total non-current assets reached CNY 1,230,059,269.12, leading to a total asset value of CNY 3,216,670,261.94[25] - Total current liabilities were CNY 330,816,522.71, and total liabilities amounted to CNY 383,060,209.90, resulting in total equity of CNY 2,833,610,052.04[26] Cash Flow - Cash flow from operating activities increased by 34.69% to ¥666,139,337.01, driven by higher sales income[9] - Cash inflow from operating activities for the current period was ¥1,946,579,527.79, an increase of 30.0% from ¥1,498,682,092.41 in the previous period[23] - Total cash inflow from investment activities was ¥2,330,043,064.21, significantly higher than ¥898,177,834.33 in the previous year[24] - The net cash flow from investment activities was -¥1,329,117,858.58, compared to -¥626,115,343.34 in the previous year, indicating increased investment outflows[24] - Cash inflow from financing activities totaled ¥1,192,629,344.86, compared to ¥119,293,871.24 in the previous year, showing a substantial increase[24] - The ending balance of cash and cash equivalents was ¥1,278,225,616.54, compared to ¥868,381,243.66 at the end of the previous year, indicating a strong liquidity position[24] Research and Development - Research and development expenses surged by 98.86% to ¥96,107,213.37, reflecting the company's expansion of its R&D team and increased investment in innovation[7] - Research and development expenses in Q3 2021 amounted to ¥96,107,213.37, which is a significant increase of 98.7% from ¥48,328,844.23 in Q3 2020[21] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 65,345, with the largest shareholder holding 43.55% of the shares[11] - The total number of restricted shares held by major shareholders at the end of the period was 291,227,519 shares, with no shares released during the period[14] - The top ten shareholders include significant holdings by individuals such as Dong Fan with 87,707,193 shares and Hong Kong Central Clearing Limited with 21,096,047 shares[12] Inventory and Accounts Receivable - The company’s inventory increased by 55.56% to ¥187,719,794.48, attributed to stockpiling for annual sales growth[6] - Accounts receivable increased significantly to CNY 317,935,742.18 from CNY 167,407,463.38, marking an increase of approximately 89.9%[16] - Inventory levels rose to CNY 187,719,794.48, up from CNY 120,672,095.51, indicating an increase of about 55.6%[16] Other Information - The company executed a total of 318,630 stock options under its incentive plan during the reporting period[15] - The company has not reported any new product launches or technological advancements during this quarter[14] - There were no new mergers or acquisitions disclosed in the latest earnings call[14] - The company has not provided specific future guidance or market expansion strategies in the current report[14] - The adjustment for the new leasing standard resulted in an increase of CNY 15,966,309.60 in both non-current assets and non-current liabilities[28] - The company has not undergone an audit for the third quarter report[29]

Financial Performance - The company's operating revenue for the reporting period was ¥1,188,254,809.14, representing a 36.63% increase compared to the previous year[13]. - The net profit attributable to shareholders was ¥620,140,698.34, reflecting a 40.74% year-over-year growth[13]. - The net profit after deducting non-recurring gains and losses was ¥584,793,617.60, up by 40.28% from the same period last year[13]. - The net cash flow from operating activities reached ¥492,315,765.05, marking a 44.88% increase compared to the previous year[13]. - The total assets at the end of the reporting period were ¥4,491,865,044.04, a 38.95% increase from the end of the previous year[13]. - The weighted average return on net assets was 22.94%, an increase of 3.85% compared to the previous year[13]. - The company's revenue for the reporting period reached ¥1,188,254,809.14, a year-on-year increase of 36.63% driven by enhanced market promotion and R&D investment[57]. - The net profit for the period was ¥619,052,068.06, reflecting a 40.93% increase year-on-year, primarily due to increased sales revenue[57]. - The total liabilities amounted to ¥1,264,404,250.38, significantly up from ¥383,060,209.90 at the end of 2020, representing a rise of approximately 230.66%[135]. Research and Development - Future outlook indicates a commitment to research and development of new products and technologies, enhancing its competitive edge[6]. - Research and development investment during the reporting period was 51.17 million yuan, accounting for 4.31% of total operating revenue, with a year-on-year growth of 65.62%[43]. - The company adopts a combined research and development model, focusing on independent and joint R&D to enhance efficiency and reduce risks, collaborating with institutions like the Chinese Academy of Sciences and several universities[24][25]. - The company obtained 5 invention patents, 12 utility model patents, and 5 design patents during the first half of 2021, with a total of 221 authorized patents by the end of the reporting period[43]. - The company has a strong R&D team with 197 master's and 9 doctoral degree holders, covering various fields related to medical engineering[42]. Market Expansion and Strategy - The company is actively pursuing market expansion strategies, including potential mergers and acquisitions[6]. - The company has established several subsidiaries to enhance its operational capabilities and market reach[4]. - The company has established a marketing network covering over 5,900 hospitals nationwide, with more than 4,500 promotional activities conducted in the uremia field during the reporting period[48]. - The company has formed an overseas expert committee to enhance the global application of its blood adsorption therapy, collaborating with top international experts[49]. - The company aims to leverage its technological advantages and strong marketing capabilities to continuously develop a series of blood purification products targeting critical diseases[39]. Product Performance - The sales revenue from disposable blood perfusion devices was ¥1,048,501,200, accounting for 88.33% of the company's main business income, with a year-over-year growth of 32.85%[19]. - The sales revenue from disposable plasma bilirubin adsorbers was ¥61,537,200, representing 5.18% of the main business income, with an impressive growth of 82.95%[20]. - The DX-10 blood purification machine generated sales revenue of ¥26,733,100, which is 2.25% of the main business income, showing a significant increase of 162.42%[21]. - The sales revenue of the blood dialysis powder liquid products reached 21.0183 million yuan, accounting for 1.77% of the company's main business income, with a year-on-year growth of 71.68%[23]. - The company’s HA380 blood perfusion device achieved sales revenue of 18.17 million yuan, with a remarkable year-on-year growth of 1157.88% in the critical care field[49]. Corporate Governance and Compliance - The financial report emphasizes the importance of accurate and complete financial disclosures, ensuring transparency[1]. - The board of directors and management have confirmed the authenticity and completeness of the financial report[1]. - The company has obtained a total of 17 medical device registration certificates, with 4 new additions since the end of 2020, demonstrating its commitment to compliance and product development[39]. - The company has developed a systematic quality control capability, ensuring compliance with ISO13485 standards since 2005[45]. - The company has established a strict quality control system, ensuring compliance with national standards and has not experienced any medical incidents due to product quality issues since its inception[85]. Social Responsibility - The company is committed to fulfilling its social responsibilities and adhering to environmental standards[6]. - The company actively participated in social responsibility initiatives, donating 5 million CNY to the China Hepatitis Prevention Foundation and 3 million CNY in medical supplies to flood-affected areas[93]. Financial Management - The company completed the issuance of convertible bonds, resulting in a net cash inflow from financing activities of ¥656,964,138.06, a 342.98% increase year-on-year[57]. - The total cash inflow from financing activities was CNY 1,187,979,656.94, a significant increase of 926.58% due to the issuance of convertible bonds[58]. - The company has engaged in entrusted financial management, with a total of RMB 120 million allocated to bank and brokerage financial products, all of which are currently not overdue[78]. - The company reported a loss of ¥34,783.87 from its investments during the reporting period[66]. - The company has not changed the use of raised funds, with a cumulative change ratio of 0.00%[72]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 36,701[115]. - The largest shareholder, Dong Fan, holds 43.58% of the shares, totaling 350,828,772 shares[117]. - The company did not conduct any repurchase transactions among the top ten ordinary shareholders during the reporting period[118]. - The total number of shares held by the top ten shareholders includes significant holdings by Hong Kong Central Clearing Limited (3.85%) and Tang Xianmin (2.64%)[117]. - The company confirmed that there are no arrangements for differential voting rights among shareholders[118]. Operational Highlights - The company has maintained its registered address and contact information without changes during the reporting period[8]. - The company did not distribute cash dividends or bonus shares for the first half of 2021[89]. - The company has not sold any significant assets or equity during the reporting period, indicating stability in its asset management[81][82]. - The company did not engage in any major related party transactions during the reporting period[102]. - The company has no derivative investments or entrusted loans reported during the period, reflecting a conservative financial strategy[79][80].

Financial Performance - The company's operating revenue for Q1 2021 was CNY 578,901,351.98, representing a 52.79% increase compared to CNY 378,881,893.33 in the same period last year[2] - Net profit attributable to shareholders was CNY 283,305,904.08, up 53.62% from CNY 184,425,240.75 year-on-year[2] - The net profit after deducting non-recurring gains and losses was CNY 273,780,539.71, reflecting a 45.07% increase from CNY 188,722,755.82 in the previous year[2] - Basic and diluted earnings per share were both CNY 0.35, marking a 52.17% increase from CNY 0.23 in the previous year[2] - The total profit for Q1 2021 was ¥334.48 million, a 54.75% increase from ¥216.14 million in Q1 2020, driven by revenue growth[10] - The company's operating income for Q1 2021 was approximately CNY 571.74 million, a 52.8% increase from CNY 374.49 million in the same period last year[28] - The net profit attributable to shareholders was approximately CNY 283.31 million, up 53.6% from CNY 184.43 million year-over-year[27] - The total comprehensive income of approximately CNY 284.19 million for the quarter, compared to CNY 186.08 million in the same period last year, marking a 52.7% increase[30] Cash Flow - The net cash flow from operating activities reached CNY 234,720,147.72, a 56.94% increase compared to CNY 149,559,054.79 in the same quarter last year[2] - Cash flow from operating activities for Q1 2021 was ¥234.72 million, a 56.94% increase from ¥149.56 million in Q1 2020, mainly due to increased sales receipts[13] - Total operating cash inflow reached CNY 595.59 million, up from CNY 391.97 million year-on-year, representing a 52% increase[32] - Cash and cash equivalents at the end of the period amounted to CNY 1,637.12 million, up from CNY 1,075.89 million, showing a 52% increase[33] - The company reported a net increase in cash and cash equivalents of CNY 67.07 million, contrasting with a decrease of CNY 190.84 million in the previous year[33] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,509,098,386.57, an 8.55% increase from CNY 3,216,670,261.94 at the end of the previous year[2] - The total assets of the company as of March 31, 2021, were 3.51 billion yuan, an increase from 3.22 billion yuan at the end of 2020[19] - Total liabilities amounted to CNY 394,053,083.68, reflecting an increase of CNY 1,836,628.97 compared to the previous period[40] - Total liabilities increased to ¥402,170,112.32, compared to ¥392,216,454.71 in the previous period, reflecting a rise of 2.4%[24] - The company reported a significant increase in long-term assets, with total non-current assets reaching 1.40 billion yuan, compared to 1.23 billion yuan at the end of 2020[19] Research and Development - R&D expenses for Q1 2021 totaled ¥20.91 million, a 71.70% increase from ¥12.18 million in Q1 2020, indicating a significant boost in R&D investment[10] - Research and development expenses for Q1 2021 were ¥20,905,465.60, up from ¥12,175,518.59 in Q1 2020, representing an increase of 71.5%[25] - The company reported a focus on innovation with research and development expenses for the quarter being approximately CNY 17.22 million, an increase from CNY 10.21 million in the previous year[28] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 35,231, with the largest shareholder holding 43.90% of the shares[5] - Net assets attributable to shareholders amounted to CNY 3,093,379,229.69, up 10.21% from CNY 2,806,789,690.15 at the end of the previous year[2] - The total equity attributable to shareholders reached ¥3,114,605,173.08, an increase of 10.1% from ¥2,827,126,989.85 at the end of 2020[24] Government Subsidies - The company received government subsidies amounting to CNY 3,632,894.59 during the reporting period[3] Market Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[24]

Financial Performance - The company's operating revenue for 2020 was ¥1,950,780,490.05, representing a 36.24% increase compared to ¥1,431,819,390.39 in 2019[12]. - The net profit attributable to shareholders for 2020 was ¥875,240,536.84, a 53.33% increase from ¥570,822,715.83 in 2019[12]. - The net profit excluding non-recurring gains and losses for 2020 was ¥840,944,452.67, reflecting a 61.10% increase from ¥521,987,891.57 in 2019[12]. - The company's cash flow from operating activities for 2020 was ¥957,488,770.47, up 64.10% from ¥583,495,276.06 in 2019[12]. - The total assets at the end of 2020 were ¥3,216,670,261.94, a 28.94% increase from ¥2,494,662,121.83 at the end of 2019[12]. - The basic earnings per share for 2020 were ¥1.10, a 52.78% increase from ¥0.72 in 2019[12]. - The weighted average return on net assets for 2020 was 35.74%, an increase of 5.50% from 30.24% in 2019[12]. - The total revenue for 2020 reached ¥1,950,780,490.05, representing a year-on-year increase of 36.24% compared to ¥1,431,819,390.39 in 2019[72]. - The revenue from the medical device manufacturing sector was ¥1,942,329,899.08, accounting for 99.57% of total revenue, with a year-on-year growth of 35.90%[72]. - The gross profit margin for the medical device manufacturing sector was 85.67%, with a slight decrease of 0.52% from the previous year[73]. Product Development and Market Expansion - The company reported a significant focus on R&D in blood purification technologies, which are critical for treating severe liver diseases with mortality rates exceeding 70%[6]. - The company emphasizes the importance of CRRT (Continuous Renal Replacement Therapy) as a vital support measure in treating critically ill patients, highlighting its growing relevance in clinical settings[6]. - The company has expanded its product offerings to over 5,800 hospitals across the country, enhancing its brand influence and sales growth[19]. - The company has established a stable and growing market demand for its standardized medical consumables, with production plans based on sales targets and inventory levels[29]. - The company aims to continuously innovate in its research areas, maintaining a leading position in domestic and advanced international technology[25]. - The company plans to expand into new market segments such as severe liver disease and cardiac surgery, while also pursuing overseas market growth[98]. - The company is actively promoting its artificial liver technology and has plans for overseas market expansion[113]. - The company achieved a sales revenue of 1,272.82 million yuan from HA130 blood perfusion devices, representing a year-on-year growth of 31.43%[50]. - The company’s overseas market sales reached 53.70 million yuan, marking a significant year-on-year increase of 193.98%[55]. Research and Development - The company invested CNY 80.76 million in R&D, accounting for 4.14% of total revenue, with a year-on-year growth of 17.98%[44]. - The company applied for 48 new patents during the reporting period, with 4 invention patents and 14 utility models granted[44]. - The company has over 300 process documents and nearly 200 quality control documents to ensure strict quality management of its blood perfusion products[29]. - The company collaborates with various research institutions for joint research and development to enhance its technological capabilities in the blood perfusion industry[26]. - The company aims to develop a series of blood purification products targeting critical and difficult diseases, focusing on inflammation mediators, immunity, bilirubin, endotoxins, and blood lipid reduction[99]. Corporate Governance and Management - The company has established a comprehensive corporate governance structure and effective regulations to support its growth[112]. - The company has implemented a stock incentive plan, with 1,030,050 stock options granted to 184 participants in the second exercise period[131]. - The company has a well-structured governance framework, including a shareholders' meeting, board of directors, and supervisory board, with no institutional overlap with controlling shareholders[197]. - The company maintains independence from its controlling shareholder in terms of business operations, assets, and financial matters[189]. - The company’s board of directors consists of 9 members, including 3 independent directors, enhancing decision-making capabilities[190]. Social Responsibility - The company donated over CNY 20 million in cash and medical supplies to support frontline healthcare workers during the COVID-19 pandemic[49]. - The company has cumulatively donated ¥4.06 million through the "Guangdong Poverty Alleviation Day" initiative since 2017[67]. - The company donated 2,000,000 CNY in cash and 8,850,000 CNY in medical supplies to support COVID-19 efforts, including blood purification devices[143]. - The company received a special contribution award for its efforts in combating the pandemic from the Zhuhai Economic Cooperation Association[143]. Risks and Challenges - The company faces market risks due to a high reliance on single-use blood perfusion devices, which may limit future growth if market demand does not meet expectations[105]. - The company is at risk of increased competition in the blood perfusion device market, which could lead to price reductions and impact future profitability[106]. - The company’s revenue is heavily dependent on single-use blood perfusion devices, making it vulnerable to changes in policy or technology that could affect production and sales[109]. - The company’s high gross margin may decline if it fails to adapt to technological advancements and competitive dynamics in the rapidly developing blood purification sector[110]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 36,529, an increase from 33,626 at the end of the previous month[159]. - The largest shareholder, Dong Fan, holds 43.90% of the shares, totaling 350,828,772 shares, with a decrease of 152,489,159 shares during the reporting period[159]. - The company’s shareholder structure and asset-liability structure have undergone changes, but specific details were not disclosed in the report[157]. - The total shares held by the chairman and general manager, Dong Fan, increased from 198,339,613 to 350,828,772, reflecting an increase of 76.7%[166]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% to $625 million[176]. - Market expansion plans include entering three new international markets by Q3 2024, targeting a 30% increase in global market share[176]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $100 million set aside for this purpose[176].