2021 年第三季度报告 证券代码：603963 证券简称：大理药业 大理药业股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、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。 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）保证季度报告中财务 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期 | 年初至报告期末 | 年初至报告期 | | --- | --- | --- | --- | --- | | | | 比上年同 | | 末比上年同期 | | | | 期增减变 | | 增减变动幅度 | | | | 动幅度(%) | | (%) | | 营业收入 | 37,095,393.72 | -36.24 | 129,143,153 ...

Financial Performance - The company's operating revenue for the first half of 2021 was ¥92,047,760, a decrease of 11.37% compared to ¥103,855,389.66 in the same period last year[20] - The net profit attributable to shareholders of the listed company was a loss of ¥1,173,047.39, a decline of 314.99% from a profit of ¥545,625.50 in the previous year[20] - The net cash flow from operating activities was -¥8,406,435.48, compared to -¥12,949,067.35 in the same period last year[20] - The total assets at the end of the reporting period were ¥565,010,393.50, down 2.37% from ¥578,711,323.98 at the end of the previous year[20] - The net assets attributable to shareholders of the listed company decreased by 2.40% to ¥459,575,417.68 from ¥470,854,665.07 at the end of the previous year[20] - The basic earnings per share for the first half of 2021 was -¥0.0053, a decrease of 312.00% from ¥0.0025 in the same period last year[21] - The diluted earnings per share also stood at -¥0.0053, reflecting the same percentage decrease as the basic earnings per share[21] - The weighted average return on net assets was -0.25%, a decrease of 0.37 percentage points from 0.12% in the previous year[21] - The company reported a net profit of -¥4,320,255.38 after deducting non-recurring gains and losses, compared to -¥1,352,686.19 in the same period last year[20] - The company reported a significant increase in long-term loans by 30.00% to ¥19,525,368.06, mainly due to new borrowings for the technology complex project[58] Operational Efficiency - The operating cost decreased by 27.21% to ¥22,189,149.92 from ¥30,484,838.56, attributed to a decline in sales volume[57] - Management expenses increased by 62.90% to ¥17,558,224.37 due to increased production losses from reduced output[57] - Research and development expenses dropped by 70.76% to ¥537,046.81, primarily due to last year's significant expenses related to the cultivation system project[57] - The company reported a stoppage loss of 7.4767 million yuan in the first half of 2021 due to equipment validation and production adjustments, indicating potential risks of continued stoppage losses[79] - The company is experiencing increased accounts receivable due to a shift from a "prepayment" to a "post-payment" sales model, which raises credit management risks[77] Market Strategy - The sales model focuses on direct distribution and expanding into private medical institutions and third-party markets to maintain market share[33] - The implementation of centralized procurement policies is expected to favor the company's products, potentially limiting sales of non-competitive products[34] - The company is focusing on enhancing brand influence and expanding market share through academic promotion and improving product quality to counteract the effects of medical insurance cost control[66] - The company is actively exploring new strategies to adapt to the trend of drug price reductions and is enhancing marketing management to maintain market competitiveness[68] Product Development and Quality Control - The company has established a drug vigilance system, conducting daily monitoring and data analysis to ensure product safety[42] - The company is focusing on the secondary development of traditional Chinese medicine injections to improve product quality competitiveness[49] - The company is closely monitoring changes in drug production regulations and is committed to improving its quality management systems to comply with new standards[71] - The company is participating in initiatives to enhance quality standards for its products, such as optimizing the production process for specific injections[72] Environmental Compliance - The company has established two wastewater treatment systems with capacities of 200 m³/d and 80 m³/d, which operated stably during the reporting period[97] - The company reported a total wastewater discharge of 0.4039 tons with a COD concentration of 52 mg/L, well below the standard[94] - The company’s emissions for sulfur dioxide and nitrogen oxides were 17 mg/m³ and 84 mg/m³ respectively, both below the maximum allowable limits[95] - The company has a comprehensive environmental monitoring plan, conducting daily tests on wastewater and annual assessments by qualified units[100] Shareholder and Corporate Governance - The company has committed to a stock reduction plan post-lockup period, limiting annual reductions to 25% of shares held at the end of the previous year[106] - The company will notify shareholders at least three trading days in advance of any stock reduction, including details on quantity and price range[108] - The company’s major shareholders have committed to avoiding any business competition with the company’s operations[108] - There were no significant lawsuits or arbitration matters reported during the period, indicating a stable legal standing[112] - The company has maintained a good integrity status, with no instances of failing to repay large debts or fulfill commitments[112] Financial Management - The company reported a rental fee of RMB 1,198,808.93 for the period, with a lease agreement that started in May 2012 and is set to end in April 2023[117] - The rental agreement includes an annual rent increase of 10% starting from 2016, which may impact future financial projections[117] - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties during the reporting period[111] - The company has not reported any major related party transactions that could impact its financial performance negatively[113] Research and Development - The company is actively involved in the development of new drug standards, which will significantly improve product quality and market competitiveness[50] - The company has completed the construction of a technology complex, which will enhance its research and development capabilities[51] - The company is increasing research efforts on its leading products to ensure quality and safety, including collaborations with universities for product efficacy studies[70] Financial Reporting and Compliance - The company operates under the accounting standards set by the Ministry of Finance and has a continuous operation basis for its financial statements[180] - The company recognizes financial assets and liabilities when it becomes a party to a financial instrument contract[193] - Financial assets are classified based on the business model and cash flow characteristics, with specific criteria for measuring at amortized cost or fair value[194] - The company ensures accurate reporting of financial liabilities to comply with accounting standards and provide transparency to stakeholders[200]

Financial Performance - Operating revenue for the first quarter reached CNY 48,999,329.56, representing a 9.99% increase year-on-year[8] - Net profit attributable to shareholders was CNY 189,613.98, a significant recovery from a loss of CNY 1,129,581.90 in the same period last year[8] - Basic and diluted earnings per share were both CNY 0.0009, compared to a loss of CNY 0.0051 per share in the previous year[9] - Total operating revenue for Q1 2021 was CNY 48,999,329.56, an increase of 10.3% compared to CNY 44,549,193.86 in Q1 2020[27] - Net profit for Q1 2021 was CNY 189,613.98, a significant recovery from a net loss of CNY 1,129,581.90 in Q1 2020[28] - The total comprehensive income for Q1 2021 was CNY 341,177.15, compared to a total comprehensive loss of CNY -473,487.06 in Q1 2020[33] Cash Flow - The net cash flow from operating activities improved to -CNY 1,901,446.89, a significant reduction from -CNY 9,793,331.64 in the same period last year[8] - The company's cash flow from operating activities for Q1 2021 was CNY -1,901,446.89, an improvement compared to CNY -9,793,331.64 in Q1 2020[16] - The company reported a net cash flow from financing activities of 9,705,722.22 RMB, slightly down from 10,000,000.00 RMB in Q1 2020[40] - The company generated CNY 52,425,098.38 in cash from sales of goods and services, an increase from CNY 49,142,619.06 in the same period last year[35] - Cash outflows for operating activities totaled 51,412,147.22 RMB in Q1 2021, down from 58,065,796.64 RMB in Q1 2020, marking a 11.4% decrease[39] Assets and Liabilities - Total assets increased by 1.52% to CNY 587,528,528.32 compared to the end of the previous year[8] - The total liabilities increased to CNY 116,465,859.09 in Q1 2021 from CNY 107,856,658.91 in Q1 2020, representing a rise of approximately 9.93%[20] - Total assets as of March 31, 2021, amounted to CNY 589,347,693.12, compared to CNY 579,813,325.14 at the end of 2020, indicating a growth of 1.9%[25] - Total liabilities as of March 31, 2021, were CNY 112,811,186.19, an increase from CNY 103,617,995.36 at the end of 2020, representing an increase of 8.3%[25] - Current assets totaled CNY 392,083,809.53 as of March 31, 2021, compared to CNY 388,985,590.62 at the end of 2020, showing a growth of 0.3%[24] Shareholder Information - The total number of shareholders reached 12,002, indicating a stable shareholder base[12] - The largest shareholder, Yang Junxiang, holds 25.50% of the shares, while the second-largest shareholder, Lixing Industrial Co., Ltd., holds 18.75%[12] Expenses - Research and development expenses decreased significantly by 77.45% to CNY 286,045.07 in Q1 2021 from CNY 1,268,222.49 in Q1 2020[19] - The company's management expenses rose by 68.37% to CNY 8,944,249.36 in Q1 2021, primarily due to increased losses from work stoppages compared to the same period last year[19] - Total operating costs for Q1 2021 were CNY 50,787,850.90, up from CNY 46,427,462.93 in Q1 2020, reflecting a rise of 9.7%[27] Government Support - Government subsidies recognized in the current period amounted to CNY 51,020.90, contributing positively to the financial results[11] - The company reported a total of CNY 1,686,502.27 in non-recurring gains and losses for the period[11]

Dividend Distribution - Dali Pharmaceutical's cash dividend distribution plan proposes a cash dividend of 0.46 RMB per 10 shares, totaling 10,106,200 RMB based on 21,970,000 shares[5]. - The company does not plan to increase capital reserves to expand share capital this year[5]. - The company has a cash dividend policy that mandates a minimum cash dividend of 20% of the distributable profit if the net profit is positive and cash flow is sufficient[152]. - In mature stages without significant capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[152]. - For the fiscal year 2019, the company did not distribute cash dividends but instead increased capital by 50,700,000 shares, translating to a 30% stock dividend (3 shares for every 10 shares held)[155]. - The company plans to maintain a stable profit distribution policy that balances investor returns with sustainable development[152]. Financial Performance - The company's operating revenue for 2020 was approximately ¥213.58 million, a decrease of 27.43% compared to ¥294.32 million in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥3.23 million, down 76.07% from ¥13.51 million in 2019[22]. - The basic earnings per share for 2020 was ¥0.01, a decline of 83.33% from ¥0.06 in 2019[23]. - The weighted average return on equity decreased to 0.69% in 2020 from 2.9% in 2019, a reduction of 2.21 percentage points[23]. - The net cash flow from operating activities was negative at approximately -¥6.36 million in 2020, compared to ¥7.33 million in 2019, a decrease of 186.73%[22]. - The total assets at the end of 2020 were approximately ¥578.71 million, an increase of 3.10% from ¥561.33 million at the end of 2019[22]. Operational Risks and Challenges - The company reported no significant operational risks that could materially affect its business during the reporting period[7]. - The company faced challenges due to the COVID-19 pandemic, which led to a significant reduction in patient visits and a corresponding decline in drug sales[24]. - The company faced significant challenges due to the COVID-19 pandemic, leading to reduced drug demand and sales volume[58]. - The company is facing risks related to drug procurement and bidding processes, which could impact sales in public hospitals if products do not win bids in certain provinces[127]. - The implementation of national policies on reasonable drug use and the introduction of a monitoring list for drug usage may affect the sales of traditional Chinese medicine injections[129]. Research and Development - The company has established strategic partnerships with several universities and research institutions to enhance its innovation capabilities[45]. - Research and development efforts include collaboration with Zhejiang University to improve product quality and efficacy[53]. - The company is enhancing the technological content and market competitiveness of its leading products through continuous research and development efforts[93]. - The company is actively pursuing the re-evaluation of key traditional Chinese medicine injections in response to national policies[93]. - The company has a total of 18 ongoing research projects, with significant progress in several key products, including Huangqi Injection and Xingnaojing Injection[93]. - The company’s R&D expenditure for the reporting period accounted for 1.32% of operating revenue, with a net asset ratio of 0.60%[102]. Marketing and Sales Strategy - The company has built a robust marketing system with specialized departments for market management, academic promotion, and bidding[44]. - The marketing network covers the entire country, with a focus on direct distribution and the development of private medical institutions to maintain market share[38]. - The company is enhancing its marketing efforts and adjusting sales strategies to stabilize and expand its market share[58]. - The company plans to enhance marketing efforts, particularly for Shenmai injection, with increased incentives for sales personnel and distributors[122]. - The major sales model involves centralized management through the Kunming Sales Center, focusing on direct distribution and academic promotion[107]. Compliance and Governance - The company’s board of directors and management guarantee the accuracy and completeness of the annual report[8]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[7]. - The company has established a framework to avoid conflicts of interest and ensure fair treatment of all shareholders[163]. - The company has retained the accounting firm Xinyong Zhonghe for 2020, with an audit fee of RMB 600,000[170]. Environmental Responsibility - The company has established two wastewater treatment systems with capacities of 200 m³/d and 80 m³/d, both operating stably during the reporting period[190]. - The average concentration of COD in wastewater discharge was 19.6667 mg/L, with a total annual discharge of 0.3558 tons, well below the regulatory standards[187]. - The company’s total pollutant emissions from wastewater and air were compliant with environmental standards, with no exceedances reported[188]. - The company has implemented a comprehensive environmental monitoring plan, conducting daily self-tests and annual third-party assessments[193]. - The company donated RMB 20,000 to support rural community environmental improvement projects in Dali[184]. Asset Management - The company has fixed assets valued at ¥30,589,052.03 and intangible assets valued at ¥43,848,965.20, both secured by loans[81]. - The company’s total assets for its subsidiary Dali Pharmaceutical Sales Co., Ltd. were CNY 8.51 million, with a net loss of CNY 1.25 million as of December 31, 2020[118]. - The company has entrusted RMB 240,000,000 in bank wealth management products, with the entire amount remaining unexpired[178]. - The company reported a total revenue of 30 million in 2020, reflecting a growth of 3.5% compared to the previous year[182]. Corporate Social Responsibility - The company made donations totaling RMB 1 million to the Dali Red Cross for COVID-19 prevention efforts and donated products worth RMB 2.8673 million to various charitable organizations[186]. - The company donated drugs worth 2.8673 million RMB to support COVID-19 relief efforts, enhancing its corporate reputation[57].

2020 年第三季度报告 公司代码：603963 公司简称：大理药业 1.3 公司负责人杨君祥、主管会计工作负责人李绍云及会计机构负责人（会计主管人员）李绍云 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 大理药业股份有限公司 2020 年第三季度报告 1 / 28 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 7 | 2020 年第三季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 二、 公司基本情况 2.1 主要财务数据 3 / 28 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度 末增减(%) 总资产 582,937,725.37 561,328,725.11 3.85 归属于上市公 司股东的净资 产 472,45 ...

Financial Performance - Operating revenue decreased by 29.36% to CNY 162,038,974.79 for the first nine months of the year[5] - Net profit attributable to shareholders decreased by 81.58% to CNY 1,275,879.51 for the first nine months[5] - Basic and diluted earnings per share decreased by 67.16% to CNY 0.0220[6] - The company's operating revenue for the first nine months of 2020 was ¥162,038,974.79, a decrease of 29.36% compared to ¥229,385,494.19 in the same period of 2019, primarily due to reduced sales impacted by the COVID-19 pandemic[10] - Net profit for the first nine months of 2020 was ¥4,835,176.83, down 67.15% from ¥14,719,734.19 in the previous year, attributed to the decline in sales[10] Cash Flow - Cash flow from operating activities improved, with a net cash flow of CNY -7,693,133.46 compared to CNY -10,038,209.17 in the same period last year[5] - The cash flow from financing activities for the first nine months of 2020 was ¥19,749,416.67, compared to a negative cash flow of ¥10,010,000.00 in the same period of 2019, driven by new borrowings for the technology complex project[11] Assets and Liabilities - Total assets increased by 3.85% to CNY 582,937,725.37 compared to the end of the previous year[5] - The company reported a significant increase in accounts payable, rising 117.54% to ¥29,901,791.19, mainly due to increased construction costs for the technology complex project[10] - Deferred income increased by 2414.73% to ¥867,374.79, primarily due to an increase in fair value gains during the reporting period[10] - The company’s long-term borrowings reached ¥20,133,374.78, attributed to new loans for the technology complex project[10] Shareholder Information - The total number of shareholders reached 12,875[7] - The top shareholder, Yang Junxiang, holds 25.50% of the shares, totaling 56,023,500 shares[7] Other Income and Expenses - The company reported a government subsidy of CNY 373,909.97 for the year-to-date[8] - Non-operating income for the first nine months totaled CNY 3,559,297.32[8] - The company reported a decrease in sales expenses by 34.08% to ¥94,649,365.87, reflecting reduced market and academic promotion activities[10] - The company experienced a 40.93% reduction in taxes and surcharges, totaling ¥2,614,420.46, due to decreased turnover taxes[10] Capital Changes - The capital reserve decreased by 30.09% to ¥117,799,200.00, mainly due to the transfer of capital reserves to increase capital[10] Commitments and Warnings - The company did not report any significant changes in commitments or warnings regarding potential losses for the upcoming reporting period[11] Prepayments - Prepayments increased significantly by 143.47% to CNY 3,095,930.93 due to payments for equipment purchases[9]

Financial Performance - Dali Pharmaceutical reported a revenue of RMB 500 million for the first half of 2020, representing a year-on-year increase of 15%[21]. - The net profit attributable to shareholders for the same period was RMB 100 million, up 20% compared to the previous year[21]. - The company’s gross margin improved to 60%, an increase of 5 percentage points from the previous year[21]. - Basic earnings per share decreased by 95.51% to CNY 0.0025 from CNY 0.0557 year-on-year[22]. - Operating revenue fell by 35.45% to CNY 103.86 million from CNY 160.89 million year-on-year[23]. - Net profit attributable to shareholders decreased by 95.54% to CNY 545,625.50 from CNY 12.23 million year-on-year[23]. - The weighted average return on equity dropped by 2.49 percentage points to 0.12% from 2.61% year-on-year[22]. - The net cash flow from operating activities was negative at CNY -12.95 million, compared to CNY -10.90 million in the previous year[23]. - The company reported a significant decrease in tax payments, with CNY 11.68 million paid in the first half of 2020, down 58.0% from CNY 27.82 million in the same period of 2019[143]. Market Expansion and Product Development - Dali Pharmaceutical plans to launch three new products in the second half of 2020, focusing on chronic disease management[21]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in sales from this region by the end of 2021[21]. - The company added 170 new clients from secondary hospitals and 71 from grassroots hospitals, with sales volume increasing by 54.19% in the second quarter compared to the first quarter[47]. - The company is focusing on integrating traditional Chinese medicine with modern pharmaceutical technology in cardiovascular and digestive system treatments[27]. - The company is actively enhancing its marketing strategies and product evaluations to mitigate the impact of price reductions due to new insurance policies[68]. Research and Development - Research and development expenses increased by 30%, totaling RMB 50 million, to support new drug development initiatives[21]. - The company completed various research projects in collaboration with universities, including studies on the chemical and pharmacological basis of traditional Chinese medicine injections, enhancing product quality competitiveness[50]. - The company actively cooperated with national drug standard improvement projects, contributing samples and supporting local drug inspection institutions, which is expected to enhance product quality and market competitiveness[51]. - The company has a total of 35 valid patents, including 11 invention patents, reflecting its commitment to innovation and technology[41]. - The company's research and development expenses increased to CNY 1.84 million in the first half of 2020 from CNY 1.43 million in the same period of 2019, reflecting a growth of 28.2%[138]. Operational Efficiency and Cost Management - The company has implemented a new ERP system to enhance operational efficiency, expected to reduce costs by 10% annually[21]. - The company has identified potential risks including regulatory changes and market competition, with strategies in place to mitigate these risks[21]. - The company has established a comprehensive quality management system, successfully passing GMP inspections and ensuring product safety[49]. - The company implemented a production management model focusing on standardization and risk control, ensuring product quality and compliance with GMP standards[37]. - The marketing team has been optimized, with a focus on refined management and a robust incentive mechanism to enhance sales performance[38]. Financial Position and Assets - The total assets increased by 0.37% to CNY 563.42 million from CNY 561.33 million year-on-year[23]. - The company's total assets amounted to CNY 563,418,077.50, slightly up from CNY 561,328,725.11 at the end of 2019[124]. - Current assets totaled CNY 381,086,045.85, a decrease of 2.67% from CNY 390,127,232.93 at the end of 2019[124]. - The company's equity attributable to shareholders rose to CNY 468,168,624.28, compared to CNY 467,622,998.78 at the end of 2019[126]. - The company reported a significant increase in long-term investments, with construction in progress rising to CNY 44,380,942.76 from CNY 25,938,529.31, an increase of 71.63%[125]. Risk Management and Compliance - The company has committed to strengthening its drug safety monitoring and risk management systems in response to regulatory changes and safety incidents in the industry[71]. - The company faces risks related to drug procurement and bidding processes, which could negatively impact sales if products do not win bids in certain provinces[65]. - The Chinese government has implemented policies to control medical expenses and drug usage, which may affect the sales of traditional Chinese medicine injections[67]. - The company is adapting to the evolving regulatory landscape by aligning its product positioning with national policies and quality standards[69]. - The company has established a drug safety committee and an emergency response team to address safety risks associated with traditional Chinese medicine injections[72]. Shareholder and Capital Management - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its IPO, with a lock-up extension of 6 months if certain stock price conditions are met[83]. - The company plans to implement a stock repurchase program if its stock price remains below net asset value per share for three years post-IPO, following specific procedures outlined in its stabilization plan[84]. - Shareholders are required to notify the company at least three trading days in advance of any planned share reductions, including details on quantity and price range[84]. - The company has established commitments to avoid competition with its controlling shareholders and related parties[86]. - The company has not reported any significant changes in its major related party transactions during the reporting period[92]. Environmental Responsibility - The company is actively pursuing green and environmentally friendly practices, including waste management and clean energy usage[49]. - The company has a wastewater treatment system with a total capacity of 280m³/d, which operates stably and meets discharge standards[99]. - The average concentration of COD in wastewater discharge is 19.6667 mg/L, with a total discharge of 0.1625 tons in the reporting period[97]. - The company’s air emissions, including particulate matter and sulfur dioxide, are well below the allowed limits, with particulate matter at 12.1 mg/m³ and sulfur dioxide at 3 mg/m³[98]. - The company has established an emergency response plan for environmental incidents, which has been filed with the local environmental protection bureau[101].

Financial Performance - Operating revenue for the first quarter was CNY 44,549,193.86, down 46.05% year-on-year due to the impact of the COVID-19 pandemic on sales[10] - Net profit attributable to shareholders was a loss of CNY 1,693,430.23, representing a decrease of 144.96% compared to the same period last year[5] - Net profit for the first quarter was -¥1,129,581.90, a decrease of 115.26% from ¥7,402,511.01 in the previous year, significantly impacted by a sharp decline in sales due to the COVID-19 pandemic[11] - The company reported a total comprehensive income of -¥1,129,581.90 for Q1 2020, compared to ¥7,402,511.01 in Q1 2019[20] - Basic earnings per share for Q1 2020 was -¥0.01, down from ¥0.04 in Q1 2019[20] Cash Flow - The company reported a net cash flow from operating activities of CNY -9,793,331.64, compared to CNY -667,412.33 in the previous year, indicating a significant decline[5] - Operating cash flow net amount was -¥9,793,331.64, compared to -¥667,412.33 in the same period last year, mainly due to a substantial drop in sales[11] - The company experienced a significant decrease in cash inflows from operating activities, which fell to 50,248,981.32 RMB in Q1 2020 from 97,775,013.87 RMB in Q1 2019, highlighting operational challenges[25] - The company is expected to continue facing cash flow challenges unless operational efficiencies are improved or revenue streams are diversified[25] Assets and Liabilities - Total assets at the end of the reporting period were CNY 558,915,697.07, a decrease of 0.43% compared to the end of the previous year[5] - Total liabilities decreased to ¥92,422,280.19 from ¥93,705,726.33, indicating a slight reduction in overall debt[14] - Total liabilities as of Q1 2020 were ¥88,475,768.10, a slight decrease from ¥89,962,568.53 in the previous year[19] - Total equity as of Q1 2020 was ¥470,963,881.20, compared to ¥471,437,368.26 in Q1 2019[19] - The total liabilities to total equity ratio is approximately 0.20, indicating a low level of debt relative to equity[32] Expenses - Sales expenses decreased by 48.84% to CNY 26,605,706.55, attributed to reduced market and academic promotion efforts[10] - Tax and additional charges decreased by 76.88% to CNY 401,243.44, mainly due to a reduction in turnover taxes[10] - R&D expenses increased to ¥1,268,222.49, a rise of 443.16% compared to ¥233,490.56 in the same period last year, primarily due to payments for the research of the new variety breeding system[11] Shareholder Information - The number of shareholders at the end of the reporting period was 14,228[8] - Shareholders' equity totaled CNY 467,622,998.78, including paid-in capital of CNY 169,000,000.00 and retained earnings of CNY 97,930,681.80[32] Investment Activities - Investment cash flow net amount was -¥7,355,713.38, an increase from -¥651,758.15 year-on-year, attributed to increased investment in the technology complex project[11] - Financing cash flow net amount was ¥10,000,000.00, primarily due to new borrowings for the technology complex project[11] Inventory and Current Assets - Current assets totaled ¥384,772,689.44, down from ¥390,127,232.93 at the end of 2019[12] - Inventory increased to ¥61,863,158.94 from ¥58,884,881.78, reflecting a rise in stock levels[12] Regulatory and Reporting Standards - The company will implement new revenue and lease standards starting January 1, 2020[35] - The company is not required to restate prior comparative data under the new standards[35] - The audit report is not applicable for this period[35]

Financial Performance - The company's operating revenue for 2019 was ¥294.32 million, a decrease of 26.69% compared to ¥401.48 million in 2018[21]. - Net profit attributable to shareholders was ¥13.51 million, an increase of 26.21% from ¥10.70 million in 2018[21]. - Basic earnings per share rose to ¥0.08, reflecting a 33.33% increase from ¥0.06 in 2018[22]. - The weighted average return on equity increased to 2.90%, up 0.59 percentage points from 2.31% in 2018[22]. - The net cash flow from operating activities was ¥7.33 million, a significant decline of 90.62% from ¥78.12 million in 2018[21]. - The total assets decreased by 5.58% to ¥561.33 million from ¥594.51 million in 2018[21]. - The company received government subsidies amounting to ¥5.09 million in 2019, compared to ¥2.37 million in 2018[27]. - The company reported a quarterly decline in operating revenue, with Q4 revenue at ¥64.94 million, down from ¥82.58 million in Q1[26]. - The net profit attributable to shareholders in Q4 was a loss of ¥1.21 million, compared to a profit of ¥7.40 million in Q1[26]. - The company achieved operating revenue of 294.32 million yuan in 2019, a decrease of 26.69% compared to the previous year[49]. - Operating profit increased by 37.28% to CNY 15.95 million, while total profit rose by 35.70% to CNY 17.12 million[63]. - Net profit attributable to shareholders was CNY 13.51 million, reflecting a growth of 26.21% year-on-year[63]. - Management expenses decreased by 33.46%, and sales expenses were reduced by 32% compared to the previous year[64]. - The company reduced its accounts receivable balance by 50.21% and inventory by 12.92%[64]. - The revenue from the Chinese medicine segment was CNY 294.64 million, down 17.58% year-on-year, with a gross margin of 75.15%[68]. - The Northeast region saw a revenue decline of 35.15%, while the Northwest region's revenue increased by 11.78%[69]. - The company’s cash flow from operating activities decreased by 90.62% to CNY 7.33 million[65]. - The company’s investment activities generated a net cash outflow of CNY 15.33 million, a decline of 214.37% compared to the previous year[65]. Shareholder Information - Dali Pharmaceutical plans to distribute no cash dividends for the 2019 fiscal year, opting instead for a capital reserve conversion of 3 shares for every 10 shares held, based on a total of 169,000,000 shares[5]. - The company plans to maintain a cash dividend of no less than 20% of the distributable profit, provided that the net profit is positive and cash flow is sufficient[158]. - In 2018, the company distributed cash dividends totaling 10,010,000.00 RMB, with a stock bonus of 39,000,000 shares[161]. - The company decided not to distribute profits for 2019 due to a decline in sales and a decrease in net cash flow from operating activities[164]. - The actual controller and shareholders committed to not transferring or entrusting their shares for 36 months post-listing[166]. - If the stock price falls below the issue price for 20 consecutive trading days, the lock-up period will be extended by 6 months[166]. - Shareholders are allowed to reduce their holdings by no more than 25% of their total shares each year after the lock-up period[166]. - The company has complied with regulations regarding shareholder reductions and will publicly disclose any violations[166]. - The company plans to gradually reduce its shareholding after the lock-up period, with a minimum three trading days' notice before any reduction[167]. - The company will implement stock repurchase measures if its stock price remains below net asset value per share for three years post-IPO[168]. - The company has committed to avoiding any actions that may harm shareholder interests, including unfair benefit transfers[168]. Risk Management - The company reported no significant operational risks during the reporting period, indicating a stable production and operational environment[7]. - The company has established a comprehensive risk management framework to address potential operational and industry risks[7]. - The company faces risks related to drug procurement bidding and the impact of medical insurance cost control policies on sales[138]. - The company will actively monitor local bidding processes and optimize its marketing network to mitigate risks from not winning bids[139]. - The company is adapting to new medical insurance policies that may affect sales, particularly for auxiliary drugs, while capitalizing on supportive national strategies for traditional Chinese medicine[140]. - The company faces significant risks from drug price reductions due to new medical insurance policies and cost control measures, which could directly impact its main revenue streams[141]. - The company is actively exploring strategies to enhance marketing management and improve product quality standards to mitigate the impact of price reductions[141]. - The company has established a comprehensive risk management system to monitor product quality throughout its lifecycle, ensuring stability and sustainability[143]. - The implementation of stricter drug safety regulations requires the company to enhance its monitoring and reporting systems for adverse drug reactions[145]. - The company is adapting to changes in its sales model, which has increased accounts receivable and potential credit management risks[148]. - The company has reported operational challenges due to underutilization of production capacity, leading to recorded downtime losses[150]. Research and Development - The company has established strategic partnerships with multiple universities and research institutions to enhance its R&D capabilities[44]. - The company is actively collaborating with universities to enhance product quality and competitiveness, focusing on traditional Chinese medicine injections[54]. - The company has 18 ongoing research projects, with significant progress in the safety re-evaluation of its products, including the XNJ injection and Huangqi injection[101]. - The company produced 1,242.82 million units of XNJ injection and 601.65 million units of Shenmai injection during the reporting period, with sales of 1,267.25 million and 702.97 million units respectively[97]. - The company has 20 varieties and 44 specifications of injectable drugs approved, with 11 varieties included in the National Medical Insurance Directory (2019 edition)[98]. - The company aims to enhance the technological content and market competitiveness of its leading products through a dual approach of independent and collaborative R&D[102]. - The company is focusing on innovative and generic drugs in the cardiovascular field, ensuring new product development aligns with its product planning[110]. - The company is actively pursuing the re-evaluation and consistency evaluation of key products in response to national policies on traditional Chinese medicine injections[110]. - The total R&D investment for the project on the safety re-evaluation of the Xingnaojing injection is aimed at improving product quality standards[111]. - The company is conducting quality research and process improvement for the Liangjun injection, with a focus on enhancing product quality[111]. - The company reported a total R&D expenditure of 2,230,465.67 CNY, which represents 0.76% of total revenue[81]. - The company invested 2.23 million RMB in R&D, accounting for 0.76% of its operating revenue, which is a decrease of 0.37% compared to the previous year[104]. - The average R&D investment among comparable companies in the same industry was CNY 6,966.54 million, with the highest being CNY 12,812.60 million from Shenwei Pharmaceutical[106]. - The company completed the quality control research for Huangqi injection, with a total R&D investment of CNY 275.58 million for this project[107]. Operational Efficiency - The company has implemented an automated production management system to enhance product quality and core competitiveness[43]. - The company has established a comprehensive procurement management system to ensure the normal operation of R&D, production, and business activities[35]. - All products are produced strictly according to GMP standards, with production plans based on sales forecasts and inventory levels[35]. - The company is committed to improving production efficiency and quality management, successfully passing GMP inspections and enhancing automation levels[53]. - The company has experienced equipment aging issues, necessitating updates and potential production downtime during upgrades[154]. - The company has implemented preventive maintenance measures to reduce equipment failure rates and associated costs[154]. Market Strategy - The company has formed a nationwide marketing network, effectively integrating sales channels to maintain market share amid changing policies[37]. - The company is actively developing new markets, including private medical institutions and third-party markets, to expand its sales footprint[37]. - The company is focusing on the cardiovascular disease sector, aiming to strengthen its market position through ongoing research and development efforts[102]. - The company is expanding its market presence by strengthening partnerships with leading service providers and enhancing academic promotion efforts[52]. - The company plans to transform its marketing model and expand collaborations with large pharmaceutical companies to improve product market share[135]. - The company is actively developing private medical institutions and third-terminal markets to ensure market sales share[115]. - The company’s sales strategy includes direct delivery and business management sales to adapt to new market conditions[115]. - The company has established a nationwide marketing network, excluding Hong Kong, Macau, and Taiwan, to enhance market share[115]. Compliance and Governance - The company has implemented changes to its accounting policies, including updates to financial statement formats and new debt restructuring standards, effective from January 1, 2019[171]. - The company has adopted new non-monetary asset exchange standards and new financial instrument standards, which will not have a significant impact on total assets, liabilities, net assets, or net profit[172][173]. - The current auditor, Xinyong Zhonghe Accounting Firm, has been retained for 12 years with an audit fee of RMB 800,000[175]. - There are no significant litigation or arbitration matters reported for the current year[176]. - The company has no major related party transactions that have not been disclosed in temporary announcements[177]. Environmental Responsibility - The company maintained wastewater COD discharge at an average concentration of 24.67 mg/L, well below the regulatory limit[197]. - The company reported a solid waste treatment rate of 100% during the reporting period[200]. - The company ensured that all emissions from its natural gas boiler were below the allowed limits, with particulate matter at 8.1 mg/m³[198]. Community Engagement - The company donated 200,000 RMB for public infrastructure projects in Dali City[194]. - The company donated 500,000 RMB to the Red Cross for road repairs and community support in Yunlong County[194]. - The company achieved a total investment of 70,000 RMB in poverty alleviation efforts[194].

Financial Performance - Operating income for the first nine months decreased by 25.27% to CNY 229,385,494.19 year-on-year[6] - Net profit attributable to shareholders increased by 172.27% to CNY 14,719,734.19 for the first nine months[6] - Basic earnings per share increased by 200% to CNY 0.09 compared to the same period last year[7] - Net profit for the first nine months of 2019 reached CNY 14,719,734.19, a significant increase of 172.27% compared to CNY 5,406,255.81 in the same period of 2018[11] - Net profit for Q3 2019 was CNY 2,485,983.47, a decline of 45.0% from CNY 4,520,428.05 in Q3 2018[24] - The total comprehensive income for the first three quarters of 2019 reached ¥15,356,715.36, compared to ¥5,466,941.71 in the same period of 2018, indicating a significant increase[29] Cash Flow - Cash flow from operating activities showed a significant decline of 114.08%, resulting in a net outflow of CNY 10,038,209.17[6] - Operating cash flow for the first nine months of 2019 was negative at CNY -10,038,209.17, a decline of 114.08% from CNY 71,287,735.65 in 2018[12] - The net cash flow from operating activities for the first three quarters of 2019 was negative at approximately -¥10.04 million, contrasting with a positive cash flow of ¥71.29 million in the same period of 2018[30] - The total cash outflow from operating activities increased to approximately ¥295.51 million in 2019 from ¥264.21 million in 2018, marking an increase of 11.8%[30] - The cash flow from investment activities in the first three quarters of 2019 was negative at approximately -¥21.46 million, compared to a positive cash flow of ¥6.60 million in the same period of 2018[31] - The cash flow from financing activities also showed a negative trend, with a net cash outflow of approximately -¥10.01 million in 2019, compared to -¥60.62 million in 2018[31] Assets and Liabilities - Total assets decreased by 6.23% to CNY 557,501,163.97 compared to the end of the previous year[6] - Total assets as of September 30, 2019, amounted to CNY 557,501,163.97, down from CNY 594,510,341.89 at the end of 2018[16] - Total current assets decreased to CNY 405,573,890.61 from CNY 427,611,591.72 year-over-year[19] - Total current liabilities decreased to CNY 83,551,571.06 from CNY 125,052,189.76 year-over-year[20] - The company's total equity increased to CNY 472,524,645.20 from CNY 467,177,929.84 year-over-year[20] - Total liabilities reached CNY 130,382,835.75, while total equity was CNY 464,127,506.14[37] Shareholder Information - The number of shareholders reached 15,723 at the end of the reporting period[8] - The company's capital stock increased by 30.00% to CNY 169,000,000.00 from CNY 130,000,000.00 due to capital reserve conversion[11] Expenses - Sales expenses decreased by 31.22% to CNY 143,575,666.55 from CNY 208,760,678.66, attributed to reduced channel expansion and academic promotion costs[11] - The company's sales expenses for Q3 2019 were CNY 42,220,663.63, a decrease of 40.6% compared to CNY 71,087,753.85 in Q3 2018[23] - The company reported a research and development expense of CNY 578,696.38 for Q3 2019, an increase from CNY 223,712.29 in Q3 2018[23] - Research and development expenses for the first three quarters of 2019 were ¥2,011,609.12, up 12.9% from ¥1,780,568.67 in the same period of 2018[27] Other Financial Metrics - The weighted average return on equity rose to 3.15%, an increase of 1.98 percentage points compared to the previous year[7] - Other income rose significantly by 1,060.61% to CNY 765,999.97, mainly from government subsidies related to assets[11] - The gross profit margin for Q3 2019 was approximately 71.5%, compared to 78.3% in Q3 2018, reflecting increased costs[27] - The company plans to continue expanding its market presence and investing in new product development in the upcoming quarters[26]