Group 1: Company Overview - The company is Xinnoway Pharmaceutical Co., Ltd., with stock code 300765 [1] - The investor relations activity took place on May 9, 2022, via a conference call [3] Group 2: Financial Performance - In Q1 2022, the gross margin for caffeine products increased significantly compared to Q4 2021 due to price hikes [1] - The company expects a production capacity of 14,000 tons for caffeine products in 2022, with an increase of 1,000 tons from the previous year [2] Group 3: Market Trends - Currently, caffeine product prices are stable, with no significant fluctuations observed [2] - The price increase at the end of 2021 was primarily driven by changes in upstream raw material costs and supply-demand dynamics [2] Group 4: Business Challenges and Strategies - The decline in health food business in 2021 was attributed to reduced foot traffic in offline pharmacies due to the pandemic [2] - The company plans to enhance online sales efforts, focusing on e-commerce and live-streaming platforms to diversify sales channels [2] Group 5: Currency and Material Impact - The depreciation of the RMB against the USD may lead to exchange gains, positively impacting overall profits, as a significant portion of revenue comes from overseas sales [2] - Raw materials are sourced domestically, thus not affected by exchange rate fluctuations [2]

Revenue and Profit - Revenue for Q3 2022 reached ¥509,649,615.05, an increase of 49.38% year-over-year[3] - Net profit attributable to shareholders was ¥160,244,702.61, up 97.89% compared to the same period last year[3] - Basic earnings per share for Q3 2022 was ¥0.2935, reflecting a 97.91% increase year-over-year[3] - Net profit for the first nine months of 2022 reached ¥462,936,325.29, an increase of 89.52% compared to ¥244,267,982.52 in the same period of 2021[8] - The net profit for Q3 2022 was approximately ¥462.94 million, a significant increase from ¥244.27 million in Q3 2021, representing an increase of about 89.5%[18] - The total profit for the period was approximately ¥549.37 million, an increase from ¥298.71 million in the same quarter last year, indicating a growth of about 83.9%[18] - The company recorded a total comprehensive income of approximately ¥464.75 million for Q3 2022, compared to ¥243.81 million in Q3 2021, which is an increase of about 90.2%[18] Assets and Equity - Total assets as of September 30, 2022, amounted to ¥3,670,308,342.42, a growth of 13.78% from the end of the previous year[3] - The company’s total equity attributable to shareholders increased to ¥3,334,607,649.33, a 12.96% rise from the previous year-end[3] - The company's total assets as of September 30, 2022, were ¥3,670,308,342.42, compared to ¥3,225,776,209.68 at the beginning of the year, reflecting a growth of 13.8%[15] - The equity attributable to shareholders of the parent company rose to ¥3,334,607,649.33, compared to ¥2,952,078,874.74, marking an increase of 12.9%[16] Cash Flow - Cash flow from operating activities showed a net increase of 129.17% year-over-year, reaching ¥389,570,962.56[3] - Operating cash flow net amount increased by 129.17% to ¥389,570,962.56 from ¥169,991,542.05 year-on-year, primarily due to rising sales prices of coffee-related products[8] - The cash flow from operating activities generated a net amount of approximately ¥389.57 million, up from ¥169.99 million in the previous year, indicating a growth of about 129.0%[19] - The company’s cash and cash equivalents net increase was ¥378,458,503.54, reflecting a 79.95% increase from ¥210,313,724.79 in the previous year[8] - Cash and cash equivalents increased to ¥1,610,321,780.87 from ¥1,231,863,277.33, representing a growth of 30.7%[14] - The cash and cash equivalents at the end of the period totaled approximately ¥1.61 billion, an increase from ¥1.35 billion at the end of Q3 2021, representing a growth of about 19.4%[20] Expenses and Costs - The company experienced a 57.79% increase in operating costs, totaling ¥813,394,409.83, primarily due to rising raw material prices[7] - The company reported a significant increase in research and development expenses, totaling ¥21,312,407.31, which is a 78.98% rise compared to the same period last year[7] - Research and development expenses increased to ¥21,312,407.31, a rise of 78.6% compared to ¥11,907,685.12 in the previous year[17] - The company’s income tax expense increased by 58.76% to ¥86,434,557.34 due to a rise in total profit compared to the previous year[8] - The company paid dividends and interest amounting to approximately ¥81.90 million during the quarter, compared to ¥42.00 million in the same period last year, reflecting an increase of about 94.3%[20] Liabilities and Contractual Obligations - The company’s contract liabilities rose by 35.30% to ¥24,230,966.17, attributed to increased advance payments for products[7] - The total liabilities increased to ¥327,120,378.87, up from ¥265,437,616.12, indicating a rise of 23.2%[15] Other Financial Metrics - The company reported a significant increase in credit impairment losses, which rose by 136.25% to ¥7,669,781.59, attributed to an increase in accounts receivable[8] - The company’s foreign exchange impact on cash and cash equivalents was a positive ¥20,566,567.49, a significant increase of 1455.08% compared to a negative impact in the previous year[8] - The company’s financing activities resulted in a net cash outflow of ¥82,547,958.72, an increase of 93.56% compared to the previous year, primarily due to higher cash dividends[8] - The company’s investment activities generated a net cash flow of ¥50,868,932.21, a decrease of 39.79% compared to ¥84,487,880.51 in the previous year[8] - The company reported a net profit margin improvement, with net profit for the period reflecting a positive trend in operational efficiency[17]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,039,404,556.34, representing a 46.93% increase compared to CNY 707,432,784.60 in the same period last year[11]. - Net profit attributable to shareholders was CNY 302,371,027.28, an increase of 84.97% from CNY 163,470,378.98 year-on-year[11]. - The net cash flow from operating activities reached CNY 211,307,644.94, up 131.69% from CNY 91,203,623.59 in the previous year[11]. - Basic earnings per share increased by 85.28% to CNY 0.554 from CNY 0.299 in the same period last year[11]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 301,734,344.25, up 94.56% from CNY 155,081,535.26[11]. - The weighted average return on equity was 9.74%, an increase of 3.79% compared to 5.95% in the previous year[11]. - The company reported a total comprehensive income of ¥303,019,923.83 for the first half of 2022, compared to ¥162,807,599.74 in the same period of 2021, an increase of 86.0%[110]. - The total operating cost for the first half of 2022 was ¥674,893,892.25, up 31.5% from ¥513,164,656.52 in the first half of 2021[108]. Assets and Liabilities - Total assets as of June 30, 2022, were CNY 3,472,191,897.50, a 7.64% increase from CNY 3,225,776,209.68 at the end of the previous year[11]. - The net assets attributable to shareholders increased by 7.48% to CNY 3,172,998,001.07 from CNY 2,952,078,874.74 at the end of the previous year[11]. - Cash and cash equivalents at the end of the reporting period amounted to CNY 1,464,046,974.83, representing 42.16% of total assets, an increase of 3.97% from the previous year[51]. - Accounts receivable increased to CNY 382,593,818.57, accounting for 11.02% of total assets, up by 2.66% year-on-year due to increased sales revenue[51]. - Total liabilities amounted to CNY 290,733,380.11, compared to CNY 265,437,616.12, representing an increase of about 9.5%[106]. - The company’s total equity attributable to shareholders at the end of the period was CNY 2,960,338,859.35, showing stability in shareholder value[117]. Market and Product Development - The main business focuses on the research, production, and sales of functional foods, primarily caffeine and health food products, with significant sales in the US, Germany, Ireland, Brazil, and India[15]. - The company is a global supplier for major beverage companies like PepsiCo, Coca-Cola, and Red Bull, enhancing its market presence[15]. - The health food segment includes the ShiYao brand Vitamin C tablets, which are positioned as dietary supplements to boost immunity and overall health[15]. - The functional food industry in China is experiencing rapid growth, with a high growth rate compared to developed countries, indicating significant market potential[16]. - The company has implemented technology upgrades in caffeine production, enhancing its competitive edge and product quality[18]. - New product development and innovation in production processes have been prioritized, including the introduction of new equipment and automation[18]. - The company launched a series of functional health products, including the selenium VC series targeting auxiliary treatment for rhinitis and gynecological inflammation[19]. - The company is actively exploring new retail channels, establishing a diversified e-commerce business model centered on comprehensive e-commerce[19]. Research and Development - Research and development investment increased by 42.50% to ¥10,265,183.79, reflecting the company's commitment to enhancing its R&D capabilities[48]. - The company is committed to research and development of new health food products to meet market demand[23]. - The company has accumulated rich R&D experience and customer resources, enhancing its competitive edge in the functional food segment[30]. - The company is focusing on research and development of new technologies to improve product efficacy and consumer satisfaction[26]. Environmental and Regulatory Compliance - The company reported a total pollutant discharge of 51.78 tons of COD, which is below the approved limit of 113.5 tons per annum[75]. - The company has implemented a wastewater treatment process that includes pre-treatment, aerobic treatment, and total nitrogen treatment, ensuring compliance with discharge standards[76]. - The company has established a robust environmental management system, with all pollution control facilities operating normally[75]. - The company has received multiple certifications, including GMP and ISO certifications, ensuring compliance with international quality standards[43]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[73]. - The company committed to not transferring or entrusting the management of shares held before the IPO for 36 months post-listing, with a potential extension of 6 months if share prices fall below the IPO price for 20 consecutive trading days[81]. - The company has fulfilled all commitments made during the IPO process as of March 21, 2022[81]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[84]. - There were no significant lawsuits or arbitration matters during the reporting period[90]. Risk Management - The company faces market competition risks due to increasing competition and potential price declines in caffeine products, which could impact gross margins[68]. - The company is exposed to raw material price fluctuation risks, with a high proportion of direct materials in operating costs[68]. - The company has implemented measures to manage currency exchange risks associated with its export business[68]. - The company emphasizes continuous R&D investment to align new product development with market demand[69].

Financial Performance - The company's revenue for Q1 2022 was CNY 447,222,824.66, representing a 25.22% increase compared to CNY 357,139,832.90 in the same period last year[3] - Net profit attributable to shareholders for Q1 2022 was CNY 110,992,466.52, up 32.35% from CNY 83,862,300.22 in Q1 2021[3] - Basic earnings per share for Q1 2022 were CNY 0.2033, a 32.36% increase from CNY 0.1536 in Q1 2021[3] - Total operating revenue for Q1 2022 was CNY 447,222,824.66, an increase of 25.2% compared to CNY 357,139,832.90 in Q1 2021[16] - Net profit for Q1 2022 reached CNY 110,974,787.52, representing a 32.9% increase from CNY 83,528,243.63 in Q1 2021[18] - The company reported a total comprehensive income of CNY 111,315,988.29 for Q1 2022, compared to CNY 83,299,534.77 in Q1 2021, marking a 33.7% increase[19] Cash Flow - The net cash flow from operating activities increased by 45.15% to CNY 70,514,173.43, compared to CNY 48,579,724.40 in the previous year[3] - Cash flow from operating activities was CNY 396,909,413.57 in Q1 2022, an increase from CNY 340,582,480.10 in Q1 2021[19] - The total cash inflow from investment activities was ¥728,377,607.77, significantly higher than ¥443,759,169.00 in the previous year, marking a 64.3% increase[21] - The net cash flow from investment activities reached ¥400,463,086.80, up from ¥105,255,652.62 in Q1 2021, representing a substantial increase of 280.5%[22] - The total cash and cash equivalents at the end of Q1 2022 amounted to ¥1,702,759,601.87, compared to ¥1,291,695,159.39 at the end of Q1 2021, reflecting a year-over-year increase of 31.9%[22] Assets and Liabilities - Total assets as of the end of Q1 2022 were CNY 3,350,339,318.61, reflecting a 3.86% increase from CNY 3,225,776,209.68 at the end of the previous year[3] - Current assets rose to RMB 2,446,419,018.21, compared to RMB 2,317,964,467.97 at the start of the year, indicating an increase of about 5.55%[14] - The total liabilities as of Q1 2022 were CNY 278,684,736.76, compared to CNY 265,437,616.12 in the previous year, showing a growth of 5.0%[16] - The company's total equity attributable to shareholders was CNY 3,063,412,542.03, a 3.77% increase from the previous year[4] - Current liabilities decreased to RMB 906,362.03 from RMB 1,423,641.08, showing a reduction of approximately 36.25%[15] Research and Development - Research and development expenses rose significantly by 144.43% to CNY 5,898,007.24, compared to CNY 2,412,933.50 in the same period last year[7] - The company aims to expand its market presence and enhance product offerings through ongoing research and development initiatives[18] Operating Costs - The company experienced a 51.19% increase in operating costs, totaling CNY 225,955,532.18, primarily due to rising raw material prices for caffeine products[7] - Total operating costs for Q1 2022 were CNY 307,158,751.32, up 17.0% from CNY 262,364,224.37 in the previous year[16]