Financial Performance - Revenue for Q1 2022 reached ¥183,290,412.29, an increase of 30.81% compared to ¥140,121,443.95 in Q1 2021[6] - Net profit attributable to shareholders was ¥53,875,611.94, up 210.80% from ¥17,334,683.77 in the same period last year[6] - Net profit excluding non-recurring gains and losses was ¥53,120,767.73, a significant increase of 443.40% from ¥9,775,568.58[6] - Basic earnings per share rose to ¥0.30, a 200.00% increase compared to ¥0.10 in the previous year[6] - The total operating revenue for the first quarter was 161,943,777.06 CNY, an increase from 137,190,552.45 CNY in the previous year, representing a growth of approximately 18.1%[41] - The net profit attributable to the parent company was 53,875,611.94 CNY, compared to 17,334,683.77 CNY in the same period last year, showing a significant increase of about 210.5%[38] - The operating profit reached 67,938,498.88 CNY, up from 18,612,655.99 CNY, indicating a growth of approximately 264.5%[35] - The total comprehensive income for the period was 54,110,240.60 CNY, compared to 17,288,809.87 CNY last year, representing an increase of about 213.5%[38] Cash Flow and Assets - Operating cash flow for Q1 2022 was ¥44,750,344.20, representing a 93.11% increase from ¥23,173,961.87 in Q1 2021[6] - Cash and cash equivalents increased significantly to ¥1,230,639,921.12 from ¥137,629,392.48, reflecting a growth of 794.5%[26] - Total assets at the end of Q1 2022 were ¥2,072,058,906.42, up 120.08% from ¥941,522,180.98 at the end of the previous year[6] - Total liabilities increased to ¥256,059,862.49 from ¥231,714,080.57, an increase of 10.5%[32] - Owner's equity surged to ¥1,815,999,043.93 from ¥709,808,100.41, reflecting a growth of 156.7%[32] - The net cash flow from operating activities was 44,750,344.20 CNY, compared to 23,173,961.87 CNY in the previous year, reflecting an increase of about 93.1%[41] - The cash flow from investment activities was a net outflow of $12,493,485.79, compared to a net outflow of $8,790,045.11 previously[44] Shareholder Information - The total number of common shareholders at the end of the reporting period is 44,685, with the largest shareholder, Zheng Hanjie, holding 20.77% of shares, equating to 49,098,900 shares[15] - The second-largest shareholder, Sun Weiwen, holds 15.56% of shares, totaling 36,787,150 shares[15] - The top five shareholders collectively hold 55.19% of the company's shares, indicating a significant concentration of ownership[15] - The company has a total of 29,677,000 shares held by other pre-IPO shareholders, which are subject to unlocking conditions[22] - The company has a total of 2,789,785 shares from other offline placement shareholders that are restricted until September 29, 2022[22] IPO and Market Presence - The company has received approval from the China Securities Regulatory Commission for its initial public offering, with shares listed on the Shenzhen Stock Exchange on March 29, 2022[23] - The company issued 50,875,193 shares during its IPO, which began trading on March 29, 2022[25] - The company plans to continue expanding its market presence and investing in new product development to sustain growth[6] Other Financial Metrics - Research and development expenses decreased to 6,594,626.38 CNY from 8,132,315.41 CNY, a reduction of approximately 18.9%[35] - The total operating costs amounted to 114,284,847.76 CNY, compared to 129,513,142.95 CNY in the previous year, indicating a decrease of approximately 11.7%[35] - The tax expenses for the period were 13,819,361.84 CNY, significantly higher than 1,917,340.72 CNY from the previous year, reflecting an increase of about 620.5%[35] - Other income decreased to 1,394,977.91 CNY from 8,565,938.76 CNY, a decline of approximately 83.7%[35] Share Restrictions and Unlocking - The company has a total of 177,287,500 restricted shares at the beginning of the period, with 2,789,807 shares added during the period, resulting in a total of 180,077,307 restricted shares by the end[22] - The company plans to unlock 49,098,900 shares held by Zheng Hanjie and 36,787,150 shares held by Sun Weiwen on March 29, 2025[22] Audit Status - The first quarter report was not audited[45]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-on-year growth of 15%[23]. - The net profit attributable to shareholders was 150 million RMB, an increase of 20% compared to the previous year[23]. - The company's operating revenue for 2021 was ¥653.65 million, a decrease of 7.80% compared to ¥708.98 million in 2020[29]. - The net profit attributable to shareholders for 2021 was ¥120.07 million, down 25.34% from ¥160.83 million in 2020[29]. - The net profit after deducting non-recurring gains and losses was ¥108.27 million, a decrease of 29.13% compared to ¥152.76 million in 2020[29]. - The sales revenue from the mask business in 2021 was 39.80 million yuan, a decline of 83.37% compared to 2020, significantly impacting overall revenue and net profit[99]. - Excluding mask business revenue, the company's pharmaceutical agency operations and self-produced product revenue grew by 13.34% and 23.94% respectively compared to 2020[99]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year, representing a 20% year-over-year growth[200]. Dividend and Cash Flow - The company plans to distribute a cash dividend of 3.50 RMB per 10 shares, totaling approximately 82.3 million RMB[6]. - The net cash flow from operating activities for 2021 was ¥120.02 million, a decrease of 4.38% from ¥125.53 million in 2020[29]. - The company reported a net cash flow from operating activities of ¥120,023,212.46 in 2021, a decrease of 4.38% compared to 2020[131]. - The net cash flow from investing activities decreased by 52.17% to -44,286,860.31 compared to the previous year[134]. - The net cash flow from financing activities increased by 67.97% to -31,543,708.95, primarily due to increased cash payments for debt repayment[134]. - The net increase in cash and cash equivalents rose by 217.33% to 44,116,284.22, attributed to reduced cash payments for fixed asset construction[135]. Research and Development - The company has invested 100 million RMB in R&D for new product development, focusing on innovative drug formulations[23]. - The company invested ¥36.08 million in R&D in 2021, with 21 major self-developed projects, of which 6 have submitted drug registration applications[101]. - Research and development investment has increased by 30%, focusing on advanced drug formulations and delivery systems[200]. - The company has established three major pharmaceutical research and development technology platforms, enhancing its capabilities in chemical raw materials, chemical preparations, and biological drugs[46]. - The company has established three major pharmaceutical R&D technology platforms, including functional excipients and nano-drug delivery key technology platform[70]. - The company has a strong R&D advantage with 21 major pharmaceutical projects, of which 6 have submitted drug registration applications[90]. Market Expansion and Strategy - Future outlook includes an expected revenue growth of 10% for 2022, driven by market expansion and new product launches[23]. - The company is exploring potential acquisitions to enhance its market presence and product portfolio[23]. - A new marketing strategy has been implemented, targeting a 30% increase in market penetration in the next fiscal year[23]. - The company aims to focus on the development and sales of self-researched drugs, with expectations for steady revenue growth from these products as market sales continue to increase[47]. - The company is expanding its market presence, targeting an increase in market share by 10% in the next year through strategic partnerships and marketing initiatives[200]. - The company plans to expand its sales network, particularly in underrepresented regions, to enhance market coverage and improve service capabilities[155]. Product Development and Sales - The self-developed product "Aiting Jiu" (Dapoxetine Hydrochloride Tablets) was approved for sale in 2020, marking it as the first domestic product to meet the quality consistency evaluation requirements of the original research drug, achieving a revenue contribution of 42.30% from self-developed products in 2021[46][47]. - The sales revenue of "Aiting Jiu" dapoxetine hydrochloride tablets reached 152.31 million yuan in 2021, an increase of 167.34% year-on-year, making it a core product[99]. - The sales revenue of "He Wei Zheng Chang Wan" was 115.79 million yuan, up 21.58% year-on-year, while "Wo Li Ting" achieved sales of 202.66 million yuan, a growth of 19.46%[99]. - The company plans to launch tadalafil tablets in 2022, which will synergize with its existing product "Aiting Jiu" to enhance profitability[101]. - The company is preparing to launch clinical trials for HKS01, a treatment for age-related macular degeneration, which has completed small and pilot studies[123]. Operational Efficiency - The gross margin improved to 45%, up from 42% in the previous year, reflecting better cost management and pricing strategies[23]. - The company aims to enhance operational efficiency, targeting a 15% reduction in production costs through process optimization[200]. - The company's operating costs for 2021 increased by 1.79% year-on-year, primarily due to the rise in pharmaceutical agency revenue leading to higher costs[112]. Market Trends and Opportunities - The gastrointestinal drug retail market in China was approximately 26.94 billion yuan in 2020, with a compound annual growth rate of 7.40% from 2017 to 2020, indicating significant market potential for gastrointestinal medications[54]. - The market for two-sex health medications is experiencing rapid growth, driven by changing societal attitudes and increasing health awareness, presenting substantial potential for the company’s products in this segment[51]. - The eye care medication market is expanding, with a compound annual growth rate of 11.66% from 2011 to 2019, reflecting a growing demand for eye care products due to increased awareness and prevalence of eye diseases[52]. - The traditional Chinese medicine market is expected to grow significantly due to increasing global interest and supportive government policies, providing further opportunities for the company[58]. Governance and Compliance - The company has established a transparent performance evaluation and incentive mechanism for senior management, linking compensation to company performance and individual performance[178]. - The company maintains complete independence in assets, operations, personnel, finance, and institutions from its controlling shareholders and actual controllers[180]. - The company has a governance structure that complies with relevant laws and regulations, ensuring no significant discrepancies with regulatory requirements[179]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements[173]. Challenges and Risks - The company faces risks related to R&D failures, market acceptance of new drugs, and potential disruptions in its agency operations[162][164].