冠昊生物(300238) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, outlines the report's structure, lists reference documents, and defines key terms for clarity Important Notes The company's board, senior management, and accounting personnel affirm the report's accuracy and completeness, detailing risk matters and outlining no dividend distribution plans - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[4] - Company head Zhang Yongming, chief accountant Yi Ruofeng, and head of accounting department Yi Ruofeng declare the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital[5] Table of Contents This section lists the report's overall structure, comprising eight main chapters covering company profile, financial indicators, management discussion, corporate governance, significant matters, share changes, bond information, and financial statements - The report is divided into eight main chapters, covering key information on company operations, finance, and governance[7] Reference Documents This section provides a list of the company's reference documents for the reporting period, including signed financial statements, original public disclosure files, the semi-annual report, and other relevant materials - Reference documents include signed financial statements, original copies of publicly disclosed documents and announcements, the original 2025 semi-annual report, and other relevant materials[9][10][11][12] Definitions This section defines and explains specific terms and company names used in the report, ensuring readers have a clear understanding of professional terminology and corporate entities - Definitions are provided for regulatory bodies such as the China Securities Regulatory Commission, Shenzhen Stock Exchange, National Medical Products Administration, and FDA[13] - Names of Guanhao Biotech and its main subsidiaries, such as Guanhao Science Park, Regenerative Medicine Company, and Medical Materials Company, are defined[13] - Professional medical terms like regenerative medical materials, regenerative medical implants, dura mater, breast patches, and biological cornea are explained[13] - Benvitimod and its cream (Xinbike) are detailed, including their properties and uses[15] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and position for the reporting period Company Profile Guanhao Biotech Co., Ltd. is a company listed on the Shenzhen Stock Exchange with stock code 300238, and its legal representative is Zhang Yongming Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Guanhao Biotech | | Stock Code | 300238 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 冠昊生物科技股份有限公司 | | Legal Representative | Zhang Yongming | Contact Persons and Information The company's Board Secretary is Xu Qingrong and Securities Affairs Representative is Li Qun, both located at No. 12 Yuyan Road, Huangpu District, Guangzhou, with contact details provided Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Xu Qingrong | No. 12 Yuyan Road, Huangpu District, Guangzhou | 020-32052295 | 020-32211255 | ir@guanhaobio.com | | Securities Affairs Representative | Li Qun | No. 12 Yuyan Road, Huangpu District, Guangzhou | 020-32052295 | 020-32211255 | ir@guanhaobio.com | Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, document storage locations, or registration details, as referenced in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[19] - Information disclosure and document storage locations remained unchanged during the reporting period[20] - The company's registration status remained unchanged during the reporting period[21] Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 5.89% to 201 million yuan, and net profit attributable to shareholders rose by 1.27% to 20.40 million yuan, with total assets and net assets also growing Key Accounting Data and Financial Indicators (First Half 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-over-year change | | :--- | :--- | :--- | :--- | | Operating Revenue | 200,869,647.98 | 189,698,181.61 | 5.89% | | Net Profit Attributable to Shareholders of the Listed Company | 20,404,091.44 | 20,148,444.33 | 1.27% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-recurring Gains and Losses | 19,803,890.16 | 18,923,033.40 | 4.65% | | Net Cash Flow from Operating Activities | 39,279,128.25 | 34,779,054.24 | 12.94% | | Basic Earnings Per Share (Yuan/Share) | 0.08 | 0.08 | 0.00% | | Diluted Earnings Per Share (Yuan/Share) | 0.08 | 0.08 | 0.00% | | Weighted Average Return on Net Assets | 3.68% | 3.80% | -0.12% | Key Accounting Data and Financial Indicators (End of First Half 2025 vs. End of Prior Year) | Indicator | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 782,768,568.08 | 754,399,831.41 | 3.76% | | Net Assets Attributable to Shareholders of the Listed Company | 565,800,826.75 | 542,358,105.24 | 4.32% | Differences in Accounting Data Under Domestic and International Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and Chinese accounting standards during the reporting period[23] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[24] Non-recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the reporting period amounted to 600,201.28 yuan, primarily from government subsidies, debt restructuring gains, and other non-operating income and expenses, net of tax and minority interests Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | -5,569.63 | | Government grants recognized in current profit/loss | 357,694.72 | | Gains/losses from debt restructuring | 143,125.00 | | Other non-operating income and expenses apart from the above | 805,647.20 | | Less: Income tax impact | 214,716.28 | | Minority interest impact (after tax) | 485,979.73 | | Total | 600,201.28 | Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, financial performance, core competencies, and the risks and opportunities it faces within its industry Principal Businesses Engaged in by the Company During the Reporting Period Guanhao Biotech focuses on R&D, production, and sales of regenerative medical materials and implantable medical devices, achieving 200 million yuan in operating revenue with growth in key product lines - The company focuses on regenerative medicine and life health-related industries, actively promoting the coordinated development of its three major business segments: biomaterials, pharmaceuticals, and cells[29] - The company achieved operating revenue of 200 million yuan in the first half of 2025, a 5.89% increase compared to the same period last year[33] Major Product Operating Revenue Year-over-Year Growth | Product Name | Operating Revenue (10,000 Yuan) | Year-over-year Growth | | :--- | :--- | :--- | | Benvitimod Cream | 3,055.63 | 27.64% | | Type B Dura Mater Patch | - | 14.81% | | Agency Products | - | 12.77% | Biomaterials Sector The company independently develops regenerative medical biomaterials for various surgical applications, undertaking national-level industrialization and engineering laboratory projects - The company's independently developed regenerative medical materials, derived from animal tissues and processed with innovative technology, exhibit good biocompatibility and induce tissue growth[29] - Key products include biological dura mater patches, Ario breast patches, and U-Clear decellularized corneal grafts, widely used in various surgical fields[29] - The company's "Regenerative Biomembrane High-Tech Industrialization" project was designated a national high-tech industrialization demonstration project by the National Development and Reform Commission[29] Pharmaceutical Sector The company's core pharmaceutical product, Benvitimod Cream (Xinbike), a national Class 1.1 new drug, has successfully renewed its national medical insurance listing and is undergoing clinical trials for other indications - Benvitimod Cream (Xinbike) is a national Class 1.1 new drug for treating inflammatory and autoimmune diseases such as psoriasis[30][31] - Xinbike successfully entered the national medical insurance catalog in 2020 and was successfully renewed in 2023[31] - Phase III clinical trials for atopic dermatitis are actively underway, with potential for expansion into more disease areas in the future[31] Cell Sector The company has established a GMP-compliant cell preparation system, offering cell storage, research collaboration, and technical services, while advancing stem cell clinical research and bio-artificial liver projects - The company has formed a "four-in-one" industrial model integrating cell technology R&D, regional cell preparation, bio-resource sample and information banks, and cell operation experience centers[29] - In the first half of 2025, approved stem cell clinical research projects were initiated and passed reviews by the National Health Commission and third-party institutions[32] - The company participated in formulating two group standards and one national standard related to stem cells, and obtained US FDA Drug Master File (DMF) Type II API registration in May 2025[32] Technology Incubation Sector The company's subsidiary, Guanhao Science Park, a national-level technology incubator, provides innovation and entrepreneurship services, supporting the rapid incubation of biomedical enterprises - Guanhao Science Park is a national-level technology enterprise incubator, offering one-stop entrepreneurship services in the life and health sector[33] - During the reporting period, it efficiently completed district-level incubator evaluations and organized or co-organized seven special events, providing precise policy and resource matching for incubated enterprises[33] Industry Overview The company operates in the medical device, pharmaceutical, and cell industries, all benefiting from national policy support and growing market demand, with technology incubation also seeing continuous development - The medical device market continues to expand, with China's market size reaching 1.11 trillion yuan in 2024, a 12.3% year-over-year increase, projected to exceed 1.3 trillion yuan in 2025[34][35] - National policies encourage the development of innovative medical devices, shortening approval cycles by 30% and increasing support for equipment upgrades and county-level medical community construction[34][35] - High prevalence of skin diseases and an aging population drive growth in the dermatological drug market, with continuous optimization of medical insurance policies providing more treatment options for psoriasis patients[35][36] - The global stem cell market is projected to grow from USD 15 billion in 2023 to USD 48.83 billion in 2034, with China's market CAGR expected to reach 137.2%[38] - National policies support stem cell therapy development, issuing production inspection guidelines and prioritizing stem cell research and organ repair projects[38] - Technology incubators serve as innovation hubs, with the national total exceeding 16,000, fostering over 5,000 listed (or publicly traded) enterprises[40] Analysis of Core Competencies The company builds strong core competencies through cutting-edge original technology, rapid industrialization capabilities, a standardized quality control system, and mature sales channels, supported by multiple high-tech enterprise designations and intellectual property advantages - The company holds the title of "National Intellectual Property Advantage Enterprise," and its trademarks "Guanhao Biotech" and "Xinbike" are included in Guangdong Province's key trademark protection list[41] - The company and its subsidiaries are all high-tech enterprises or Guangdong Province "specialized, refined, unique, and new" small and medium-sized enterprises, with Guanhao Science Park being a national-level technology enterprise incubator[41] - The company has established three major technology platforms: a regenerative medical biomaterials technology platform, a cell and stem cell R&D and application platform, and a pharmaceutical technology platform[41] - The company possesses a cumulative total of 165 authorized patents (106 invention patents) and 185 registered trademarks[41] - Through its proprietary technology incubation platform, the company has successfully incubated multiple innovative enterprises and products, achieving technology transfer "from laboratory to market"[46] - The company's biomaterial products are certified under the ISO13485 management system, subsidiary Guangdong Zhonghao Pharmaceutical holds a GMP certificate for pharmaceuticals, and the cell production line has passed GMP on-site certification[47] - The company's three major business segments employ a "online + offline and self-operated + agency" dual-driven marketing model, establishing a nationwide sales network[48] Analysis of Main Business During the reporting period, the company's operating revenue increased by 5.89%, while financial expenses surged by 344.33% due to project loans, and both medical device and pharmaceutical businesses maintained high gross profit margins Major Financial Data Year-over-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-over-year change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 200,869,647.98 | 189,698,181.61 | 5.89% | - | | Operating Cost | 44,086,491.08 | 42,079,822.97 | 4.77% | - | | Selling Expenses | 78,257,549.89 | 73,734,951.86 | 6.13% | - | | Administrative Expenses | 30,605,219.15 | 26,766,060.42 | 14.34% | - | | Financial Expenses | 1,816,597.46 | 408,843.42 | 344.33% | Due to increased special loans for Tianhao Zhongshan Pharmaceutical Technology Project | | Income Tax Expense | 8,272,801.87 | 9,119,075.73 | -9.28% | - | | R&D Expenses | 20,602,674.45 | 19,525,435.11 | 5.52% | - | | Net Cash Flow from Operating Activities | 39,279,128.25 | 34,779,054.24 | 12.94% | - | | Net Cash Flow from Investing Activities | -25,406,242.91 | -52,105,860.36 | 51.24% | Due to investment in Tianhao Zhongshan Pharmaceutical Technology Project in the prior year period | | Net Cash Flow from Financing Activities | 22,707,874.98 | 22,181,533.54 | 2.37% | - | | Net Increase in Cash and Cash Equivalents | 36,467,277.60 | 4,916,668.92 | 641.71% | Due to investment in Tianhao Zhongshan Pharmaceutical Technology Project in the prior year period | Products or Services Accounting for Over 10% of Revenue | Segment or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-over-year Change in Operating Revenue | Year-over-year Change in Operating Cost | Year-over-year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Medical Devices | 147,200,145.97 | 30,054,592.28 | 79.58% | 6.88% | 7.33% | -0.09% | | Pharmaceuticals | 30,556,309.52 | 5,212,547.21 | 82.94% | 27.64% | 35.56% | -1.00% | | Leasing and Other Services | 23,113,192.49 | 8,819,351.59 | 61.84% | -17.54% | -13.81% | -1.65% | | By Product | | | | | | | | Biological Dura Mater Patch | 36,389,219.70 | 2,380,075.36 | 93.46% | 1.35% | -29.21% | 2.82% | | Type B Dura Mater Patch | 38,050,085.83 | 3,441,538.16 | 90.96% | 14.81% | -23.59% | 4.55% | | Agency Products | 48,521,561.17 | 21,827,133.90 | 55.02% | 12.77% | 25.83% | -4.67% | | Benvitimod | 30,556,309.52 | 5,212,547.21 | 82.94% | 27.64% | 35.56% | -1.00% | | By Region | | | | | | | | North Region | 42,610,928.08 | 5,669,656.59 | 86.69% | 12.16% | 8.82% | 0.41% | | East Region | 72,202,315.69 | 15,343,870.87 | 78.75% | -5.15% | -14.27% | 2.26% | | South Region | 45,971,189.36 | 14,324,815.83 | 68.84% | 16.96% | 17.19% | -0.06% | | West Region | 40,085,214.85 | 8,748,147.79 | 78.18% | 10.48% | 29.61% | -3.22% | Analysis of Non-Main Business During the reporting period, non-main business activities primarily impacted total profit through asset impairment (-5.50%) and non-operating income (3.57%), with investment income from debt restructuring being non-recurring Impact of Non-Main Business on Total Profit | Item | Amount (Yuan) | Percentage of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 143,125.00 | 0.58% | Due to accounts receivable debt restructuring | No | | Asset Impairment | -1,362,152.32 | -5.50% | Due to inventory write-down in the current reporting period | Yes | | Non-operating Income | 885,978.75 | 3.57% | Due to receipt of deferred interest compensation from minority shareholders | No | | Non-operating Expenses | 80,331.55 | 0.32% | Due to public welfare donations and disposal of fixed assets in the current reporting period | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets reached 783 million yuan, a 3.76% increase from the previous year-end, with notable shifts in the proportions of cash and long-term borrowings Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Percentage of Total Assets | Amount at End of Prior Year (Yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 140,951,077.71 | 18.01% | 106,780,152.15 | 14.15% | 3.86% | | Accounts Receivable | 63,022,682.90 | 8.05% | 59,545,736.88 | 7.89% | 0.16% | | Inventories | 76,133,035.57 | 9.73% | 78,459,032.60 | 10.40% | -0.67% | | Long-term Equity Investments | 48,490.18 | 0.01% | 4,489,812.53 | 0.60% | -0.59% | | Fixed Assets | 313,650,627.59 | 40.07% | 319,541,816.39 | 42.36% | -2.29% | | Short-term Borrowings | 19,013,199.88 | 2.43% | 20,014,583.21 | 2.65% | -0.22% | | Long-term Borrowings | 99,000,000.00 | 12.65% | 76,000,000.00 | 10.07% | 2.58% | Major Overseas Assets | Specific Content of Asset | Reason for Formation | Asset Scale (Yuan) | Location | Profit/Loss Status (Yuan) | Proportion of Overseas Assets to Company's Net Assets | Significant Impairment Risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guanhao Biotech (Hong Kong) Co., Ltd. | Guanhao Biotech Subsidiary | 57,011,117.18 | Hong Kong | 67,145.22 | 11.64% | No | Financial Assets Measured at Fair Value | Item | Beginning Balance (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | | Investments in Other Equity Instruments | 18,000,000.00 | 18,000,000.00 | | Subtotal of Financial Assets | 18,000,000.00 | 18,000,000.00 | | Total Above | 18,000,000.00 | 18,000,000.00 | | Financial Liabilities | 0.00 | 0.00 | Analysis of Investment Status During the reporting period, the company did not engage in significant equity or non-equity investments, nor did it undertake wealth management, derivative investments, or entrusted loans, with no use of raised funds - The company had no use of raised funds during the reporting period[62] - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[64][65][66] Disposal of Significant Assets and Equity During the reporting period, the company did not dispose of any significant assets or equity - The company did not dispose of significant assets during the reporting period[67] - The company did not dispose of significant equity during the reporting period[68] Analysis of Major Holding and Participating Companies The company's major subsidiaries, including Shanghai Guanhao Medical Devices and Guangdong Guanhao Regenerative Medicine, significantly impacted net profit, with one subsidiary deregistered and another newly established during the period Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Guanhao Medical Devices Co., Ltd. | Subsidiary | R&D, sales of goods | 3,000,000.00 | 33,282,537.08 | 25,338,506.68 | 7,054,690.16 | -5,711,688.26 | -5,522,285.88 | | Guangdong Guanhao Regenerative Medicine Technology Development Co., Ltd. | Subsidiary | Research and experimental development | 140,000,020.00 | 183,026,548.86 | 152,676,609.89 | 59,497,156.42 | 8,540,161.98 | 6,212,356.56 | | Wuhan Beidu Biotechnology Co., Ltd. | Subsidiary | R&D, technical services and consulting | 10,380,693.00 | 16,683,410.09 | -24,473,277.01 | 8,357,036.49 | -3,505,052.22 | -3,505,052.22 | | Beihao Stem Cell and Regenerative Medicine Research Institute Co., Ltd. | Subsidiary | Research and experimental development | 35,328,000.00 | 77,487,791.86 | -11,495,040.70 | 9,006,585.13 | -2,431,752.86 | -2,437,695.56 | | Guangdong Tianhao Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical production and sales | 160,000,000.00 | 213,803,300.98 | 100,441,487.17 | 2,553,207.00 | -2,394,085.95 | -2,411,283.18 | | Zhongshan Tianhao Science Park Co., Ltd. | Subsidiary | Technology promotion and application services | 1,000,000.00 | 41,084,881.36 | -2,887,959.01 | 0.00 | -2,887,959.01 | -2,887,959.01 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shaanxi Jingguan Biotechnology Co., Ltd. | Deregistration | Minor impact | | Beijing Tianyou Qiyuan Biotechnology Co., Ltd. | Newly established | Minor impact | Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company had no structured entities under its control during the reporting period[71] Risks Faced by the Company and Countermeasures The company faces multiple risks, including policy changes, market challenges for new technologies, product registration delays, animal epidemics, and M&A integration, which it addresses through strategic adjustments, R&D, and stringent management - Policy change risk: Centralized procurement, "two-invoice system," and medical insurance cost control may affect product sales and market share. The company will adjust its business model and sales strategy in a timely manner[71] - Market risk from industrialization of original technology: Market development for new products requires greater investment and a longer cultivation period. The company will strengthen its technological leadership in regenerative medicine and explore ways to improve R&D efficiency[72] - Risk of obtaining new product registration certificates: The registration cycle for new medical devices is long, which may affect product launch. The company will conduct thorough market research and formulate R&D plans using its novel biomaterial platform[73] - Animal epidemic risk: Major raw materials are edible animal tissues, and large-scale epidemics could lead to sourcing difficulties or sales restrictions. The company will strictly implement supplier evaluation systems and source from multiple locations to mitigate risks[74] - M&A decision risk and post-M&A integration risk: Risks exist in target selection and integration. The company will adhere to prudent principles, conduct thorough due diligence, and closely monitor and evaluate acquired projects[75][76] Registration Form for Research, Communication, and Interview Activities During the Reporting Period During the reporting period, the company engaged in an online exchange event via QuanJing.net's "Investor Relations Interactive Platform" to discuss future development, private placement progress, and product R&D - The company conducted an online exchange via QuanJing.net's "Investor Relations Interactive Platform" on April 30, 2025[77] - The exchange covered topics such as the company's future development prospects, progress of private placement, main drivers of future profit growth, and product R&D status[77] Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system nor disclosed a valuation enhancement plan - The company has not established a market value management system[78] - The company has not disclosed a valuation enhancement plan[78] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[78] Corporate Governance, Environment, and Society This section details changes in the company's board and senior management, profit distribution plans, environmental information disclosure, and its commitment to social responsibility across various stakeholders Changes in Directors, Supervisors, and Senior Management During the reporting period, Zhang Yongming was dismissed as General Manager and Zhao Feng was appointed, while three supervisors, Tian Dan, Zhao Jianyi, and Xian Shuangbing, resigned due to supervisory board reforms Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Zhang Yongming | General Manager | Dismissal | January 10, 2025 | Job transfer | | Zhao Feng | General Manager | Appointment | January 10, 2025 | Job transfer | | Tian Dan | Chairman of Supervisory Board | Resignation | June 23, 2025 | Job transfer | | Zhao Jianyi | Supervisor | Resignation | June 23, 2025 | Job transfer | | Xian Shuangbing | Employee Supervisor | Resignation | June 23, 2025 | Job transfer | Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for this semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves to share capital for the semi-annual period[81] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[82] Environmental Information Disclosure The company and its key subsidiary, Guangdong Zhonghao Pharmaceutical Co., Ltd., are listed as enterprises required to disclose environmental information and have published relevant reports on the Guangdong Provincial Department of Ecology and Environment website - The company and its main subsidiary, Guangdong Zhonghao Pharmaceutical Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[83] Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Guangdong Zhonghao Pharmaceutical Co., Ltd. | https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list | Social Responsibility The company actively fulfills its social responsibilities by prioritizing innovation, strengthening Party building, protecting stakeholder rights, maintaining environmental stewardship, and engaging in public welfare, aligning business growth with societal progress - The company's vision is to be a "global leader in regenerative medicine industry," integrating social responsibility into its strategic planning, production operations, and corporate culture[84] - The company actively promotes Party building, innovates theme Party day activities, deepens the integration of Party building and business, and focuses on building a strong team of Party member cadres[86] - The company strictly adheres to laws and regulations, builds a modern governance system, and safeguards the rights of investors (especially small and medium investors) to information, voting, and inquiry through various channels[87] - Adhering to a "people-oriented" philosophy, the company has established comprehensive employment management systems, social insurance schemes, talent development pathways, and welfare systems, while prioritizing employee well-being and workplace safety[88] - The company upholds integrity in business, fosters long-term partnerships with suppliers and customers, ensures product quality through a stringent quality management system, and protects consumer interests[89][90] - The company strictly complies with national environmental protection regulations, establishes a full-chain environmental protection internal control system, achieves clean production, optimizes energy use, and reduces pollutant emissions, with no environmental violations during the reporting period[91] - The company actively participates in industry standard-setting, contributing to national and group standards such as "Microbial Risk Control for Cell-Based Medical Device Production," disseminates medical health knowledge, and gives back to society[92] Significant Matters This section covers the fulfillment of commitments by controlling shareholders and related parties, absence of illegal guarantees, details of significant litigation, and other important events such as share auctions and termination of private placement Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, all relevant parties, including the actual controller, shareholders, and related parties, strictly fulfilled their commitments made during asset restructuring and public offerings, with no overdue unfulfilled commitments at period-end - Kou Bing and Hu Chenghua committed to avoiding horizontal competition, standardizing related party transactions and fund occupation, and compensating for losses caused by breach of commitments[94][95][96][97] - Zhu Weiping, Xu Guofeng, and Guangdong Zhiguang Biotechnology Co., Ltd. committed not to engage in activities that constitute horizontal competition with Guanhao Biotech and to honor their commitments[97][98] - All commitments were fulfilled on time, with no overdue unfulfilled commitments[98] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating occupation of the listed company's funds by controlling shareholders or other related parties - During the reporting period, the listed company had no non-operating fund occupation by controlling shareholders or other related parties[99] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[100] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[101] Explanations by the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's "Non-Standard Audit Report" for the Current Period As the company did not receive a non-standard audit report for the current period, no explanations from the Board of Directors, Supervisory Board, or Audit Committee are required - Not applicable, the company did not receive a non-standard audit report[102] Explanations by the Board of Directors Regarding the "Non-Standard Audit Report" for the Prior Year As the company did not receive a non-standard audit report for the prior year, no explanations from the Board of Directors are required - Not applicable, the company did not receive a non-standard audit report for the prior year[102] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization related matters - The company had no bankruptcy and reorganization related matters during the reporting period[102] Litigation Matters The arbitration involving the company's subsidiary Zhuhai XiangLe has been settled with no significant impact on the company, while other ongoing lawsuits totaling 4.63 million yuan also currently have no major impact Significant Litigation and Arbitration Matters | Litigation (Arbitration) Basic Information | Amount Involved (10,000 Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Enforcement Status | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Arbitration involving company subsidiary | 5,392.92 | No | Settlement | Settled, no significant impact for now | None | January 09, 2025 | Juchao Information Network, Announcement on Arbitration Progress (Announcement No.: 2025-002) | Summary of Other Litigation Matters | Litigation (Arbitration) Basic Information | Amount Involved (10,000 Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Enforcement Status | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of other litigation and arbitration not meeting significant disclosure standards | 462.95 | No | Some lawsuits are in trial, some are in enforcement | This summary of litigation matters currently has no significant impact on the company | None | Not applicable | Not applicable | Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[104] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, the company, its controlling shareholders, and actual controllers maintained a good integrity status, with no applicable issues - Not applicable[105] Significant Related Party Transactions During the reporting period, the company did not engage in significant related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, or related party debt/credit - The company had no related party transactions related to daily operations during the reporting period[105] - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[106] - The company had no related party transactions involving joint external investment during the reporting period[107] - The company had no related party debt/credit transactions during the reporting period[108] - The company had no deposits, loans, credit lines, or other financial business with related financial companies or financial companies controlled by the company and related parties[109][110] - The company had no other significant related party transactions during the reporting period[111] Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters, but provided a 180 million yuan guarantee for its subsidiary Guangdong Tianhao Pharmaceutical and is progressing with a 167 million yuan construction contract - The company had no entrustment, contracting, or leasing situations during the reporting period[112][113][114] Company Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (Yuan) | Actual Occurrence Date | Actual Guarantee Amount (Yuan) | Guarantee Type | Collateral | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangdong Tianhao Pharmaceutical Co., Ltd. | - | June 26, 2023 | 18,000,000.00 | Joint and several liability guarantee; pledge guarantee of 100% equity in Tianhao Pharmaceutical held by the company; pledge guarantee of 53.0256% equity in Zhonghao Pharmaceutical held by the company. | Joint and several liability guarantee; pledge guarantee of 100% equity in Tianhao Pharmaceutical held by the company; pledge guarantee of 53.0256% equity in Zhonghao Pharmaceutical held by the company. | Three years from the maturity date of the debt | No | Yes | - The company's total guarantee amount accounts for 31.81% of its net assets[116] Other Significant Contracts | Company Name (Contracting Party) | Counterparty Name (Contracting Party) | Contract Subject | Total Contract Amount (10,000 Yuan) | Contract Performance Status | | :--- | :--- | :--- | :--- | :--- | | Guanhao Biotech Co., Ltd. | China Railway 12th Bureau Group South China Engineering Co., Ltd. | Tianhao Pharmaceutical Technology Project Construction | 16,730.17 | Progressing as planned | Explanation of Other Significant Matters During the reporting period, the company's former controlling shareholder's shares were judicially auctioned and transferred, and the company terminated its private placement application - The company's former controlling shareholder, Guangdong Zhiguang, had 17,084,822 shares of the company judicially auctioned, which were acquired by Beijing Tianyou Ruiyuan Pharmaceutical Technology Co., Ltd. and completed transfer registration on January 23, 2025[121] - The company terminated its private placement of shares to specific targets and withdrew its application on June 23, 2025, receiving the Shenzhen Stock Exchange's decision to terminate the review on June 30, 2025[121] Significant Matters of Company Subsidiaries The arbitration involving the company's subsidiary Zhuhai XiangLe (case number: HKIAC/A23008) concluded with a Consent Award from the Hong Kong International Arbitration Centre in January 2025 - The arbitration involving the company's subsidiary Zhuhai XiangLe (case number: HKIAC/A23008) received a "CONSENT AWARD" from the Hong Kong International Arbitration Centre in January 2025[122] Share Changes and Shareholder Information This section details the company's share capital structure, any changes in shares, securities issuance, shareholder numbers, and the holdings of directors, supervisors, and senior management Share Change Status During the reporting period, the company's total share capital remained unchanged at 265,155,701 shares, with restricted shares accounting for 0.01% and unrestricted shares for 99.99% Share Change Status | Item | Quantity Before Change (Shares) | Proportion Before Change | Net Increase/Decrease in Current Change (Shares) | Quantity After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 21,619 | 0.01% | 0 | 21,619 | 0.01% | | II. Unrestricted Shares | 265,134,082 | 99.99% | 0 | 265,134,082 | 99.99% | | III. Total Shares | 265,155,701 | 100.00% | 0 | 265,155,701 | 100.00% | - During the reporting period, the company's total share capital remained unchanged[126] Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - Not applicable[127] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 32,645 ordinary shareholders, with Beijing Century Tianfu Venture Capital Center (Limited Partnership) as the largest shareholder, and Zhang Yongming and Lin Ling as the actual controllers - The total number of ordinary shareholders at the end of the reporting period was 32,645 accounts[127] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (Shares) | Change in Shares During Reporting Period (Shares) | Number of Unrestricted Shares Held (Shares) | Pledged, Marked, or Frozen Status (Number) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Century Tianfu Venture Capital Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 13.58% | 36,016,266 | 0 | 36,016,266 | 0 | | Beijing Tianyou Ruiyuan Pharmaceutical Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 6.44% | 17,084,822 | 17,084,822 | 17,084,822 | Pledged: 17,084,822 | | Tibet Jingan Enterprise Management Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.77% | 10,000,000 | 0 | 10,000,000 | 0 | | Guangdong Zhiguang Biotechnology Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.76% | 7,310,000 | -17,084,822 | 7,310,000 | Pledged: 7,310,000; Frozen: 7,310,000 | | Jiang Shibo | Domestic Natural Person | 1.87% | 4,958,440 | 0 | 4,958,440 | 0 | | Xingbao International Trust Co., Ltd. - Huarong Huiying No. 32 Securities Investment Single Fund Trust | Other | 1.55% | 4,110,000 | 0 | 4,110,000 | 0 | | Wan Meiqin | Domestic Natural Person | 0.97% | 2,576,000 | 111,000 | 2,576,000 | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.72% | 1,917,044 | 1,708,944 | 1,917,044 | 0 | | Li Shan | Domestic Natural Person | 0.63% | 1,657,499 | -699,600 | 1,657,499 | 0 | | Wang Ruoting | Overseas Natural Person | 0.55% | 1,453,500 | 541,200 | 1,453,500 | 0 | - Zhang Yongming and Lin Ling, a married couple, are the company's actual controllers, indirectly holding company shares through Beijing Century Tianfu Venture Capital Center (Limited Partnership), Beijing Tianyou Ruiyuan Pharmaceutical Technology Co., Ltd., Tibet Jingan Enterprise Management Consulting Co., Ltd., and Guangdong Zhiguang Biotechnology Co., Ltd.[128][129] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[130] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[131] - The company's actual controller did not change during the reporting period[131] Preferred Share Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[132] Bond-Related Information This section provides details on the company's bond-related activities and status during the reporting period Bond-Related Information During the reporting period, the company had no bond-related information - Not applicable[134] Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, along with detailed notes on accounting policies and financial items Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[136] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for the first half of 2025, offering a comprehensive view of its financial position, operating results, and cash flows Consolidated Balance Sheet (Summary) | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 304,563,094.80 | 265,789,737.12 | | Total Non-current Assets | 478,205,473.28 | 488,610,094.29 | | Total Assets | 782,768,568.08 | 754,399,831.41 | | Total Current Liabilities | 164,814,764.13 | 177,990,961.77 | | Total Non-current Liabilities | 128,034,531.24 | 108,816,966.42 | | Total Liabilities | 292,849,295.37 | 286,807,928.19 | | Total Owner's Equity Attributable to Parent Company | 565,800,826.75 | 542,358,105.24 | | Minority Interests | -75,881,554.04 | -74,766,202.02 | | Total Owner's Equity | 489,919,272.71 | 467,591,903.22 | | Total Liabilities and Owner's Equity | 782,768,568.08 | 754,399,831.41 | Consolidated Income Statement (Summary) | Item | First Half 2025 (Yuan) | First Half 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 200,869,647.98 | 189,698,181.61 | | Total Operating Cost | 176,257,580.55 | 160,966,865.61 | | Operating Profit | 23,980,044.84 | 26,056,317.79 | | Total Profit | 24,785,692.04 | 25,878,411.96 | | Net Profit | 16,512,890.17 | 16,759,336.23 | | Net Profit Attributable to Parent Company Shareholders | 20,404,091.44 | 20,148,444.33 | | Minority Interest Income/Loss | -3,891,201.27 | -3,389,108.10 | | Total Comprehensive Income | 16,437,000.71 | 16,717,987.42 | | Basic Earnings Per Share | 0.08 | 0.08 | | Diluted Earnings Per Share | 0.08 | 0.08 | Consolidated Cash Flow Statement (Summary) | Item | First Half 2025 (Yuan) | First Half 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 39,279,128.25 | 34,779,054.24 | | Net Cash Flow from Investing Activities | -25,406,242.91 | -52,105,860.36 | | Net Cash Flow from Financing Activities | 22,707,874.98 | 22,181,533.54 | | Net Increase in Cash and Cash Equivalents | 36,467,277.60 | 4,916,668.92 | | Cash and Cash Equivalents at Period-End | 140,951,077.71 | 101,025,074.39 | Company Basic Information Guanhao Biotech Co., Ltd., headquartered in Guangzhou, was listed on the Shenzhen Stock Exchange in July 2011, with core businesses in biomaterials, pharmaceuticals, and cell technologies - The company's registered address and headquarters address are both No. 12 Yuyan Road, Huangpu District, Guangzhou[170] - The company was listed on the ChiNext board of the Shenzhen Stock Exchange in July 2011, with stock code 300238[170] - The company's core businesses are in three major segments: materials, pharmaceuticals, and cells, with main products including biological dura mater patches, Benvitimod Cream, cell storage, and cartilage treatment[170][171] - The financial report was approved for issuance by the Board of Directors on August 28, 2025[172] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises issued by the Ministry of Finance, with a positive assessment of its continuous operation for the next 12 months - The company's financial statements are prepared on a going concern basis, in accordance with actual transactions and events, and the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance[173] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability[174] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates for financial statement preparation, covering areas such as revenue recognition, financial instruments, and asset impairment, ensuring transparency and comparability - The company's financial statements comply with the requirements of the "Accounting Standards for Business Enterprises," truthfully and completely reflecting its financial position, operating results, and cash flows[175] - The company's accounting year is the calendar year, with a normal operating cycle of 12 months, and the recording currency is RMB[176][177][178] Materiality Standards | Item | Materiality Standard | | :--- | :--- | | Significant individually impaired accounts receivable | Individual amount accounts for over 5% of accounts receivable or bad debt provision, and the amount exceeds 1.5 million yuan, or the bad debt provision for the current period affects profit/loss changes | | Significant construction in progress projects | Current period's incurred amount accounts for over 10% of total construction in progress incurred in the current period (or over 10% of period-end balance), and the amount exceeds 5 million yuan | | Significant capitalized R&D projects | Current period's capitalized amount accounts for over 10% of total capitalized R&D projects (or over 10% of period-end balance), and the amount exceeds 5 million yuan | | Significant non-wholly owned subsidiaries | Minority shareholders hold over 5% equity, and any single item (total assets, net assets, operating revenue, or net profit) of the subsidiary accounts for over 10% of the corresponding item in the consolidated financial statements | - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[189][190] - The company applies a simplified approach to accounts receivable and lease receivables, always measuring loss provisions at an amount equal to the lifetime expected credit losses[194] Expected Credit Loss Rate for Accounts Receivable | Aging | Expected Credit Loss Rate for Accounts Receivable (%) | | :--- | :--- | | Within 1 year (inclusive) | 1.00 | | 1 to 2 years | 10.00 | | 2 to 3 years | 30.00 | | 3 to 4 years | 50.00 | | 4 to 5 years | 80.00 | | Over 5 years | 100.00 | - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods, with sales models including agency distribution and service provision[225][227][228] - The company's internal research and development project expenditures are divided into research phase expenditures (expensed) and development phase expenditures (capitalized when conditions are met)[212][213][214][215] Taxation This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax, with some entities benefiting from high-tech enterprise or small and micro-enterprise tax incentives Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value-Added Amount | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Actual VAT Paid | 7% | | Corporate Income Tax | Taxable Income | 25%, 20%, 15%, 16.5% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | Guanhao Biotech Co., Ltd. | 15% | | Guangdong Zhonghao Pharmaceutical Co., Ltd. | 15% | | Beihao Stem Cell and Regenerative Medicine Research Institute Co., Ltd. | 15% | | Wuhan Beidu Biotechnology Co., Ltd. | 15% | | Shanghai Guanhao Medical Devices Co., Ltd. | 20% | | Guangdong Guanhao Regenerative Medicine Technology Development Co., Ltd. | 25% | | Guanhao Biotech (Hong Kong) Co., Ltd. | 16.50% | - The company and Guangdong Zhonghao Pharmaceutical, Beihao Stem Cell and Regenerative Medicine Research Institute, and Wuhan Beidu Biotechnology Co., Ltd. have all obtained high-tech enterprise certificates and are subject to a 15% corporate income tax rate during the reporting period[240][241] - Eligible subsidiaries of the company apply small and micro-enterprise income tax preferential policies, where the portion of annual taxable income not exceeding 1 million yuan is reduced by 25% and taxed at a 20% rate[242][243] Notes to Consolidated Financial Statement Items This section provides detailed notes on the consolidated financial statement items, including period-end and beginning balances, and changes in cash, accounts receivable, inventory, fixed assets, and operating results Cash and Cash Equivalents | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Bank Deposits | 140,951,077.71 | 106,780,152.15 | | Total | 140,951,077.71 | 106,780,152.15 | Accounts Receivable by Aging | Aging | Ending Book Balance (Yuan) | Beginning Book Balance (Yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 53,241,377.21 | 44,521,002.55 | | 1 to 2 years | 4,057,702.59 | 5,097,401.68 | | 2 to 3 years | 3,651,535.08 | 3,216,261.73 | | Over 3 years | 44,998,370.04 | 50,177,964.72 | | Total | 105,948,984.92 | 103,012,630.68 | Inventory Classification | Item | Ending Book Value (Yuan) | Beginning Book Value (Yuan) | | :--- | :--- | :--- | | Raw Materials | 1,210,082.28 | 1,175,145.33 | | Work in Progress | 25,744,480.44 | 28,836,461.68 | | Finished Goods | 46,055,695.71 | 45,029,318.18 | | Revolving Materials | 682,178.27 | 587,732.12 | | Goods in Transit | 1,324,658.78 | 2,432,597.82 | | Other Materials | 1,115,940.09 | 397,777.47 | | Total | 76,133,035.57 | 78,459,032.60 | Operating Revenue and Operating Cost | Item | Current Period Revenue (Yuan) | Current Period Cost (Yuan) | Prior Period Revenue (Yuan) | Prior Period Cost (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 193,651,699.20 | 38,648,202.64 | 182,935,065.53 | 35,825,904.62 | | Other Business | 7,217,948.78 | 5,438,288.44 | 6,763,116.08 | 6,253,918.35 | | Total | 200,869,647.98 | 44,086,491.08 | 189,698,181.61 | 42,079,822.97 | Financial Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Interest Expense | 1,937,900.01 | 313,083.35 | | Less: Interest Income | 334,875.58 | 275,495.58 | | Exchange Loss | 57,921.32 | 63,005.13 | | Less: Exchange Gain | 173,075.62 | 165,776.16 | | Unrecognized Financing Expenses | 229,904.24 | 385,676.68 | | Other Expenses | 98,823.09 | 88,350.00 | | Total | 1,816,597.46 | 408,843.42 | R&D Expenses During the reporting period, the company's total R&D expenses were 20.60 million yuan, a 5.52% increase, with a significant portion expensed and the Benvitimod Cream (eczema) project progressing to clinical Phase III R&D Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Salaries and Benefits | 8,220,603.02 | 6,165,277.90 | | Depreciation and Amortization | 1,871,339.37 | 2,909,949.39 | | Materials and Power Costs | 4,607,996.58 | 3,579,218.48 | | Travel Expenses | 237,969.98 | 412,162.80 | | Expert Consulting Fees | 112,103.46 | 698,927.05 | | Testing and Processing Fees | 5,096,902.24 | 5,526,539.88 | | Ot