2021-08-30 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2021, representing a year-on-year increase of 25%[1]. - The net profit attributable to shareholders was 300 million RMB, up 30% compared to the same period last year[1]. - The company's operating revenue for the first half of the year reached ¥534,556,471.63, representing a 34.53% increase compared to ¥397,354,998.31 in the same period last year[14]. - The net profit attributable to shareholders was ¥153,734,926.32, a significant increase of 70.39% from ¥90,223,461.98 in the previous year[14]. - The net cash flow from operating activities was ¥202,465,705.85, up 31.18% from ¥154,344,394.21 year-on-year[14]. - The total assets of the company increased to ¥7,869,165,124.10, reflecting a 273.33% growth compared to ¥2,107,821,636.06 at the end of the previous year[14]. - The net assets attributable to shareholders surged to ¥6,610,662,672.42, marking a 439.69% increase from ¥1,224,899,092.29 at the end of last year[14]. - Basic earnings per share rose to ¥0.60, a 50.00% increase from ¥0.40 in the same period last year[15]. - The diluted earnings per share increased to ¥0.59, up 47.50% from ¥0.40 year-on-year[15]. - The company reported a weighted average return on equity of 3.17%, down 6.96 percentage points from 10.13% in the previous year[15]. Market Expansion and Client Growth - The company expanded its client base by 20%, reaching a total of 200 clients in the first half of 2021[1]. - The company aims to enter two new international markets by the end of 2022, focusing on Europe and North America[1]. - The company’s orders in the first half of 2021 reached approximately RMB 400 million, a year-on-year increase of over 150%[51]. - The overseas subsidiary BIOMERE secured orders of approximately USD 21.5 million, reflecting a year-on-year growth of over 60%[57]. - The company’s domestic orders from overseas clients reached approximately RMB 73 million, a year-on-year increase of over 80%[57]. Research and Development - The number of new drug development projects increased by 15%, with a total of 50 active projects as of June 30, 2021[1]. - The company plans to invest 200 million RMB in R&D for new technologies and products in the next fiscal year[1]. - The company is enhancing its service capabilities and applying new technologies, particularly in the evaluation of innovative drugs, which supports future business expansion[27]. - The company is focusing on developing a leading, efficient, and stable genetic resource and gene engineering technology platform for experimental animals, particularly for new drug development[25]. - The company has established a unique golden industrial chain for preclinical research services, clinical trials, and related services, ensuring high-quality service for clients[18]. Operational Efficiency and Compliance - The company ensures compliance with regulatory requirements and quality management standards in all its services, thereby reducing the risk and increasing the efficiency of drug development for clients[22]. - The company has established a strict procurement process, ensuring effective control over procurement applications, approvals, inquiries, supplier selection, and payments[25]. - The company has implemented a laboratory information management system (LIMS) to improve work efficiency and ensure compliance with GLP regulations, significantly increasing data reliability and integrity[40]. - The company has optimized its organizational structure and compensation system to enhance employee engagement and improve service efficiency[48]. Financial Position and Assets - The company's total assets increased to CNY 115,943.39 million as of June 30, 2021, compared to CNY 79,488.33 million in the same period of 2020, representing a growth of 46.0%[69]. - The total liabilities increased to approximately ¥1.10 billion from ¥760.04 million, reflecting a growth of about 45%[107]. - The company's long-term equity investments increased to approximately ¥102.44 million from ¥64.44 million, showing a growth of about 59%[107]. - The total current assets as of June 30, 2021, amounted to approximately ¥5.37 billion, a significant increase from ¥1.18 billion as of December 31, 2020, reflecting a growth of about 354%[106]. - Cash and cash equivalents increased to approximately ¥4.20 billion from ¥308.69 million, representing a growth of over 1,260%[106]. Risks and Challenges - The company has identified potential risks related to regulatory changes and market competition, which may impact future performance[1]. - Intense market competition in the preclinical CRO industry poses risks, with competitors expanding capacity and facilities, potentially impacting profitability if the company fails to maintain its competitive edge[72]. - The company faces talent recruitment risks due to the urgent need for management, technical, and marketing personnel as business scales and expands[71]. - The COVID-19 pandemic has posed operational challenges, although its overall impact on production has been limited; future developments remain uncertain[76]. Environmental and Social Responsibility - Environmental management practices are in place, with a focus on pollution prevention and sustainable development, including regular third-party inspections of emissions[84]. - The company has implemented measures to reduce carbon emissions, including the use of energy-efficient LED lighting and electric vehicles[89]. - The company has established a wastewater treatment facility that meets the standards for discharge into public systems[88]. - The company has engaged third-party testing to ensure compliance with environmental discharge standards[88]. Shareholder and Corporate Governance - The company reported a total share count of 270,820,329 after the issuance of 43,365,600 new shares, representing a 19.1% increase in total shares[96]. - The company has committed to avoiding any competition with its controlling shareholders and related parties, ensuring compliance with competitive regulations[90]. - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[80]. - The company has not reported any violations or penalties related to its directors, supervisors, or controlling shareholders[94].