安徽丰原药业股份有限公司 2016 年第三季度报告全文 安徽丰原药业股份有限公司 2016 年第三季度报告 2016 年 10 月 26 日 1 安徽丰原药业股份有限公司 2016 年第三季度报告全文 第一节 重要提示 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、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人何宏满、主管会计工作负责人张玉萍及会计机构负责人(会计主管人员)李俊 声明：保证季度报告中财务报表的真实、准确、完整。 2 安徽丰原药业股份有限公司 2016 年第三季度报告全文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 √ 是 □ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年 度末增减 | | --- | --- | --- | --- | --- | | | | 调整前 | 调整后 | 调整后 | | 总资产（元） | 2,476,101,683.68 | 2,305,280,74 ...

Financial Performance - The company's operating revenue for the first half of 2016 was CNY 891,407,286.27, representing a 13.19% increase compared to CNY 779,320,654.55 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 26,304,152.98, a 29.20% increase from CNY 18,645,933.72 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was CNY 20,167,378.75, reflecting a 31.59% increase compared to CNY 13,613,379.62 in the same period last year[24]. - The basic earnings per share increased to CNY 0.0843, up 29.29% from CNY 0.0597 in the previous year[24]. - Operating profit reached CNY 32,459,200, representing a growth of 54.12% year-on-year[30]. - The company reported a total comprehensive income of CNY 27,764,215.96, down from CNY 33,525,928.81, a decrease of 17.3%[113]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,446,540,120.49, a 4.57% increase from CNY 2,305,280,740.34 at the end of the previous year[24]. - The total liabilities increased to CNY 1,292,235,709.04 from CNY 1,134,927,574.70, representing a rise of approximately 13.9%[107]. - The company's total equity decreased to CNY 1,154,304,411.45 from CNY 1,204,690,718.49, a decline of about 4.2%[108]. - The cash and cash equivalents decreased to CNY 143,006,098.36 from CNY 171,079,721.81, showing a decline of about 16.4%[105]. - Accounts receivable rose to CNY 482,112,114.60 from CNY 390,651,184.69, marking an increase of approximately 23.4%[105]. Cash Flow - The net cash flow from operating activities was CNY 15,321,054.25, a decrease of 26.64% compared to CNY 19,768,022.68 in the same period last year[24]. - Cash flow from operating activities generated a net cash inflow of CNY 15,321,054.25, a decrease from CNY 20,886,113.75 in the previous year[116]. - Cash flow from investing activities resulted in a net outflow of CNY 80,853,718.95, compared to a net outflow of CNY 39,214,438.58 in the previous year[118]. - Cash flow from financing activities generated a net inflow of CNY 17,278,063.66, compared to a net outflow of CNY -16,132,511.24 in the previous year[118]. Investments and Acquisitions - The company plans to acquire 85% equity of Chengdu Push Pharmaceutical Co., Ltd. from Sichuan Yibin Push Group Co., Ltd.[33]. - The company has provided a loan of CNY 12,100 million to Anhui Fengyuan Bengbu Pharmaceutical Co., Ltd. at an interest rate of 6.42%[43]. - The acquisition of Huainan Tai Fuzhi Pharmaceutical Co., Ltd. was completed for CNY 4,198.64 million, which is expected to enhance business continuity and management stability[63]. - The company has invested CNY 21,992.28 million in the Wuwei Pharmaceutical Plant relocation project, which is 99% complete[52]. Shareholder Information - The company plans to distribute a cash dividend of CNY 1.0 per 10 shares based on the total share capital of 312,141,230 shares as of December 31, 2015[53]. - The largest shareholder, Anhui Wuwei Pharmaceutical Factory, holds 11.48% of the shares, totaling 35,842,137 shares[92]. - The total number of common stock shareholders at the end of the reporting period is 38,209[92]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[94]. Regulatory and Compliance - The half-year financial report has not been audited[82]. - The company has not faced any major litigation or arbitration matters during the reporting period[59]. - There were no significant non-operating fund occupations by controlling shareholders or their related parties during the reporting period[70]. - The company has not approved any external guarantees during the reporting period, with a total guarantee amount of 0 CNY[75]. Accounting Policies - The financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[133]. - The company follows specific accounting policies for revenue recognition and other transactions based on its operational characteristics[135]. - The company assesses financial assets for impairment and recognizes losses in the current period if objective evidence indicates impairment has occurred[153]. - The company recognizes fixed assets from finance leases based on criteria such as ownership transfer at lease end or the present value of minimum lease payments being close to the asset's fair value[173].

Financial Performance - The company's operating revenue for Q1 2016 was CNY 426,497,365.94, representing a 7.67% increase compared to CNY 396,124,925.56 in the same period last year[8] - The net profit attributable to shareholders was CNY 6,500,659.89, showing a slight decrease of 0.29% from CNY 6,519,779.17 in the previous year[8] - The net profit after deducting non-recurring gains and losses increased by 51.96% to CNY 6,259,257.23 from CNY 4,118,914.27 year-on-year[8] - The weighted average return on net assets was 0.57%, slightly up from 0.54% in the previous year[8] - The company anticipates significant changes in net profit for the first half of 2016 compared to the same period last year[19] Cash Flow - The net cash flow from operating activities decreased by 34.04% to CNY 8,616,181.49, down from CNY 13,061,818.52 in the previous year[8] - Net cash flow from operating activities decreased by 34.04% to ¥8,616,181.49 due to increased cash payments related to operating activities[15] - Net cash flow from investing activities worsened by 47.22% to -¥49,043,405.56 mainly due to increased cash payments for subsidiaries and other business units[15] - Net cash flow from financing activities increased by 311.47% to ¥58,633,277.36 due to higher cash inflows related to financing activities[15] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,445,648,835.72, reflecting a 4.53% increase from CNY 2,339,617,000.91 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 2.87% to CNY 1,137,467,691.43 from CNY 1,171,125,475.96 at the end of the previous year[8] - Accounts receivable decreased by 44.12% to ¥20,115,933.77 due to the company's discounting or endorsement of bills for payment[15] - Engineering materials increased by 178.84% to ¥5,219,959.39 primarily due to the procurement of materials for the relocation project of Wuwei Pharmaceutical[15] - Notes payable surged by 500.02% to ¥85,712,884.33 as the company increased payments via bank acceptance bills[15] - Asset impairment losses rose by 276.24% to ¥1,776,978.65 due to an increase in bad debt provisions[15] - The company repaid long-term borrowings, resulting in a 100% decrease in long-term loans to ¥0.00[15] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 39,657[11] - The top ten shareholders held a total of 55.93% of the company's shares, with the largest shareholder holding 11.48%[11] Non-Operating Activities - Operating income from non-operating activities decreased by 84.50% to ¥477,221.83 due to a reduction in government subsidies received compared to the previous year[15] - The company acquired 100% equity of Huainan Taifeng Pharmaceutical Co., Ltd. during the reporting period[8]

Financial Performance - The company's operating revenue for 2015 was CNY 1,554,294,538.94, representing a decrease of 8.51% compared to 2014[19] - The net profit attributable to shareholders for 2015 was CNY 32,389,557.21, down 20.98% from the previous year[19] - The net profit after deducting non-recurring gains and losses was CNY 21,373,126.55, a decline of 34.32% year-on-year[19] - The basic earnings per share for 2015 were CNY 0.1038, a decrease of 20.94% from 2014[19] - The company reported a significant decrease in the amount of receivable notes, which fell by CNY 18,457,714.70, a reduction of 33.96% compared to the beginning of the period[34] - The revenue from drug manufacturing was CNY 595.51 million, representing 38.31% of total revenue, down 20.91% year-on-year[40] - The revenue from drug retail and distribution was CNY 920.20 million, accounting for 59.21% of total revenue, with a slight increase of 0.34%[40] - The company achieved a gross margin of 38.88% in the drug manufacturing sector, an increase of 3.59% compared to the previous year[41] - The company reported a total comprehensive income of CNY 37,314,991.83, down from CNY 40,177,908.61 in the previous year[172] - The total operating costs amounted to CNY 1,530,999,560.17, down 8.0% from CNY 1,664,001,552.23 in the prior year[170] - Net profit for the year was CNY 31,467,840.62, representing a decline of 23.5% from CNY 41,116,748.64 in the previous year[171] Cash Flow and Investments - The net cash flow from operating activities increased significantly by 332.89% to CNY 45,498,599.32[19] - The total cash inflow from financing activities rose by 57.42% to CNY 610,000,000.00, while cash outflow increased by 65.57% to CNY 619,467,651.57[48] - The net cash flow from investing activities was negative at CNY -43,382,782.84, an improvement compared to CNY -164,878,547.51 from the previous year[176] - The cash outflow for investing activities decreased significantly to CNY 50,327,649.74 from CNY 175,856,206.20, a reduction of approximately 71.4%[176] - The company’s cash flow from operating activities showed a net increase of CNY 44,012,162.83, compared to CNY 33,382,945.60 in the previous year, marking an increase of about 32.5%[178] Assets and Liabilities - The total assets at the end of 2015 were CNY 2,305,280,740.34, reflecting a growth of 3.03% compared to the end of 2014[19] - Total liabilities increased to CNY 1,121,036,689.79 from CNY 1,090,603,742.93, reflecting a growth of about 2.77%[166] - Short-term loans increased significantly by 75.00% to CNY 464,200,000.00, indicating a shift in financing strategy[50] - The company's retained earnings increased to CNY 249,978,578.08 from CNY 217,589,020.87, an increase of approximately 14.91%[166] - The total equity increased to CNY 1,184,244,050.55 from CNY 1,146,929,058.72, reflecting a growth of about 3.24%[166] Research and Development - The company has established a comprehensive pharmaceutical supply service system, focusing on the research and development of new drugs, with multiple national first and second-class new drug varieties[25] - The company organized the application for 15 patents during the reporting period, with 7 patents granted[38] - The company's R&D investment increased by 13.93% to ¥34,337,701.85, representing 2.21% of total revenue, up from 1.77% in 2014[47] - The number of R&D personnel increased by 9.8% to 112, representing 2.46% of the total workforce[47] - The company is actively promoting new drug research and development, as well as the consistency evaluation of its products[67] Market and Strategic Position - The company is positioned to benefit from the ongoing reforms in the pharmaceutical and healthcare system in China, which are expected to drive demand for medical services and products[33] - The pharmaceutical industry is facing pressure from drug price reductions due to public hospital reforms, leading to a slowdown in industry growth[64] - The company aims to enhance its market value through technology development and channel management, focusing on becoming a comprehensive pharmaceutical enterprise group[66] - The company plans to implement nationwide drug bidding work to ensure an overall winning rate and enhance product sales[67] Corporate Governance and Compliance - The company has maintained compliance with its cash dividend policy as per its articles of association and shareholder resolutions[71] - The company has ensured that minority shareholders had ample opportunity to express their opinions and that their legal rights were fully protected[71] - The company has a well-established internal control system to ensure fairness to all shareholders[106] - The independent directors attended all board meetings and did not raise any objections during the reporting period[149] - The audit committee reviewed and approved the company's 2014 financial statements, confirming their accuracy and completeness[150] Shareholder Information - The company has a total share capital of 312,141,230 shares, with 95.04% being unrestricted shares[111] - The total number of shareholders at the end of the reporting period was 39,685, an increase from 39,657 at the end of the previous month[113] - The top ten shareholders include several state-owned enterprises, indicating a concentration of ownership among a few entities[113] - The actual controller of the company is Li Rongjie, who is also the chairman of Anhui Fengyuan Group Co., Ltd.[117] Employee and Management Structure - The company employed a total of 4,547 staff, including 1,777 production personnel, 632 sales personnel, and 629 technical personnel[133][134] - The management team has a strong background in the pharmaceutical sector, with many members having over a decade of experience in the industry[126] - The company has established a performance-based salary system linked to job responsibilities, skills, and effectiveness, promoting employee motivation and creativity[135] - The company conducted 2 internal management training sessions for middle and senior management, with 221 participants, focusing on corporate development strategy and execution[136] Environmental and Social Responsibility - The company is committed to environmental protection and sustainable development practices[107] - The company emphasizes corporate social responsibility, focusing on health, safety, and employee development[106]

Financial Performance - Operating revenue for the reporting period was ¥397,367,769.64, a decrease of 5.13% year-on-year[8]. - Net profit attributable to shareholders decreased by 19.87% to ¥13,678,661.30[8]. - Net profit attributable to shareholders after deducting non-recurring gains and losses fell by 31.65% to ¥11,422,787.58[8]. - Basic earnings per share decreased by 19.93% to ¥0.0438[8]. - The weighted average return on net assets was 1.65%, a decrease of 0.09% compared to the previous year[8]. - There are no significant changes in net profit expected compared to the previous year[22]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,290,038,890.62, an increase of 2.35% compared to the previous year[8]. - Net assets attributable to shareholders increased by 2.99% to ¥1,145,683,440.75[8]. - Short-term loans increased by 31.75% to CNY 349.4 million due to an increase in bank borrowings[17]. - Accounts payable increased by 100% to CNY 6.82 million as a result of higher payments made via bank acceptance bills[17]. - Prepayments decreased by 39.82% to CNY 21.56 million due to a reduction in customer advance payments[17]. - Tax payable decreased by 95.56% to CNY 218,919.35 due to a reduction in corporate income tax[17]. - Non-current liabilities due within one year decreased by 44.72% to CNY 109.48 million as the company repaid maturing long-term loans[17]. Cash Flow - Cash flow from operating activities for the year-to-date increased significantly by 167.53% to ¥41,148,023.69[8]. - Cash generated from operating activities increased by 167.53% to CNY 41.15 million[17]. - Cash used in investing activities decreased by 68.67% to CNY -37.83 million, indicating reduced cash outflow for fixed assets[17]. - Cash used in financing activities decreased by 48.00% to CNY -17.94 million, reflecting lower cash payments related to financing activities[17]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,998[10]. - The largest shareholder, Anhui Wuwei Pharmaceutical Factory, holds 11.48% of the shares, totaling 35,842,137 shares[10]. - The company has fulfilled all commitments made to minority shareholders in a timely manner[21]. Technology and Business Strategy - The company is planning a significant technology transfer related to recombinant interleukin-12 with the University of Science and Technology of China[18]. - The company signed a memorandum for the technology transfer of recombinant interleukin-12 on July 25, 2015[19]. - The company has signed a memorandum for the transfer of interleukin-12 technology with the University of Science and Technology of China[25]. - The company is committed to integrating pharmaceutical-related assets for overall listing to eliminate potential competition with its controlling shareholder[21]. - The company has made commitments to avoid any business competition with its controlling shareholder during its tenure[21]. Compliance and Investments - There are no securities investments reported during the reporting period[22]. - The company has not engaged in any derivative investments during the reporting period[24]. - There are no violations regarding external guarantees during the reporting period[26]. - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[27].

Financial Performance - The company achieved operating revenue of CNY 779,320,654.55, a decrease of 7.89% compared to the same period last year[20]. - The net profit attributable to shareholders was CNY 18,645,933.72, down 0.51% year-on-year[20]. - The net cash flow from operating activities was CNY 19,768,022.68, representing a decline of 31.97% compared to the previous year[20]. - Basic earnings per share were CNY 0.0597, a decrease of 0.50% from the previous year[20]. - The company reported a total profit of CNY 2,502.38 million, down 8.43% year-on-year[27]. - The operating profit was CNY 1,886.78 million, a decrease of 10.97% compared to the same period last year[27]. - The company's gross profit margin for pharmaceutical manufacturing was 38.53%, a decrease of 7.42% compared to the previous year[32]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,229,514,020.41, a decrease of 0.36% from the end of the previous year[20]. - The net assets attributable to shareholders increased by 2.87% to CNY 1,144,343,196.01 compared to the previous year[20]. - The company's total assets impairment loss increased by 456.67% to ¥1,263,941.63, mainly due to an increase in bad debt provisions[30]. - The total liabilities decreased from CNY 1,090,603,742.93 to CNY 1,050,772,154.67, a reduction of approximately 3.7%[108]. - Short-term borrowings increased significantly from CNY 265,200,000.00 to CNY 364,000,000.00, an increase of about 37.3%[108]. Investments and Projects - The company has committed a total investment of 29,746 million RMB for various projects, with a cumulative investment of 28,505 million RMB as of the reporting period, achieving an investment progress of 95.83%[42]. - The project for producing 500 tons of sulfocyanin red has been deemed unfeasible due to significant market price declines since 2012, leading to a major change in project viability[42]. - The company has decided to change the project from producing 500 tons of sulfocyanin red to producing 200 tons of cephalosporin raw materials, with an investment of 8,743 million RMB allocated for this new project[46]. - The production line for polypropylene infusion bags has a total investment of 11,643 million RMB, with a cumulative investment of 4,521.45 million RMB, achieving an investment progress of 38.83%[42]. Shareholder Information - The total number of shares outstanding is 312,141,230, with 95.04% being unrestricted shares[88]. - The largest shareholder, Anhui Province Wuwei Pharmaceutical Factory, holds 11.48% of the shares, totaling 35,842,137 shares[89]. - The second-largest shareholder, Anhui Province Ma'anshan Biochemical Pharmaceutical Factory, holds 5.86% of the shares, totaling 18,286,558 shares[89]. - The company has committed to not trading or transferring non-circulating shares for 24 months after obtaining listing rights, with a maximum of 5% of total shares sold within 12 months and 10% within 24 months thereafter[79]. Regulatory and Compliance - The company reported a related party transaction amounting to 4.44 million yuan, which represents 0.65% of similar transaction amounts[64]. - The company did not engage in any asset acquisitions or sales during the reporting period[65]. - There were no joint external investment related party transactions during the reporting period[66]. - The company confirmed the absence of non-operating related party debts during the reporting period[68]. - The company has no significant contracts or leasing situations reported for the period[74]. Research and Development - The company's R&D investment increased by 27.25% to ¥16,351,580.22, reflecting a commitment to innovation[28]. - The company’s subsidiary, Anhui Fengyuan Zhongren Pharmaceutical Co., Ltd., is conducting clinical research on a new anti-cancer implant drug, with updates to be disclosed upon significant progress[84]. Financial Reporting and Audit - The company reported that its half-year financial report has not been audited[81]. - The financial statements are prepared in accordance with the Chinese Accounting Standards, reflecting the company's financial position and operating results accurately[150]. Corporate Governance - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[148]. - The company has not reported any changes in accounting policies or prior period error corrections during the current reporting period[130].

Financial Performance - The company's operating revenue for Q1 2015 was ¥392,555,070.92, a decrease of 2.27% compared to the same period last year[10] - Net profit attributable to shareholders was ¥5,981,146.10, representing an increase of 48.29% year-over-year[10] - The net profit after deducting non-recurring gains and losses was ¥3,580,281.20, up 42.34% from the previous year[10] - The net cash flow from operating activities was ¥14,678,304.74, down 9.74% compared to the same period last year[10] - Basic earnings per share increased to ¥0.0192, a rise of 48.84% year-over-year[10] - Total assets at the end of the reporting period were ¥2,250,721,837.66, reflecting a 0.59% increase from the end of the previous year[10] - Net assets attributable to shareholders were ¥1,118,773,784.99, up 0.57% from the previous year-end[10] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 42,394[13] - The largest shareholder, Anhui Wuwei Pharmaceutical Factory, held 11.48% of the shares, totaling 35,842,137 shares[13] Non-Recurring Gains and Losses - The company reported no significant non-recurring gains or losses during the reporting period[11] Changes in Financial Metrics - Accounts receivable decreased by 58.18% to ¥22,731,449.46 due to a reduction in customers settling with notes[17] - Employee compensation payable decreased by 33.18% to ¥13,730,786.37 as the company distributed previously accrued salaries[17] - Tax payable decreased by 65.05% to ¥1,723,835.31 primarily due to an increase in uncredited VAT input tax[17] - Long-term borrowings decreased by 71.39% to ¥19,400,000.00 as the company repaid part of its bank loans ahead of schedule[17] - Non-operating income increased by 35.45% to ¥3,079,699.63 mainly due to an increase in government subsidies received[17] - Non-operating expenses increased significantly by 559.64% to ¥130,431.00 due to increased charitable donations[17] - Net cash flow from financing activities increased by 654.67% to ¥14,249,746.78 compared to the previous year[17] Asset Acquisition and Fundraising - The company is continuing to pursue the issuance of shares for asset acquisition and fundraising, despite previous rejections from regulatory authorities[18] - The board has resolved to proceed with the asset acquisition plan without major adjustments, pending regulatory review[18] Compliance and Commitments - The company has committed to fulfilling its obligations under the stock reform plan without violations[20] - The company has committed to not engage in any business that competes with its own operations during its tenure as a controlling shareholder[22] - The company has promised to ensure that its controlling shareholder does not seek any competitive business opportunities that could harm the company's interests[22] - The company has stated that it will adhere to the relevant regulations regarding related party transactions to protect shareholder interests[21] - The company has indicated that it will not increase product categories or production capacity at Huainan Taifu until competition issues are resolved[21] - The company has committed to reducing related party transactions to avoid unfair dealings that could harm its interests[21] - The company has stated that it will ensure compliance with all commitments made by its controlling shareholder to mitigate potential losses[22] - The company has confirmed that there are no ongoing or potential competitive business situations with its controlling shareholder[22] Investor Relations - The company has not engaged in any investor communications or interviews during the reporting period[24] - The company has not reported any significant changes in its operating performance for the first half of 2015 compared to the previous year[23]

Financial Performance - The company's operating revenue for 2014 was CNY 1,698,945,420.17, representing an increase of 11.05% compared to CNY 1,529,898,115.07 in 2013[22]. - The net profit attributable to shareholders for 2014 was CNY 40,990,920.28, a significant increase of 49.89% from CNY 27,346,624.31 in 2013[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 32,542,369.92, reflecting an 89.45% increase from CNY 17,176,972.75 in 2013[22]. - Basic earnings per share for 2014 were CNY 0.1313, up 43.65% from CNY 0.0914 in 2013[22]. - Total assets at the end of 2014 were CNY 2,237,532,801.65, an increase of 8.72% from CNY 1,981,022,585.97 at the end of 2013[22]. - The net assets attributable to shareholders at the end of 2014 were CNY 1,112,442,099.60, reflecting a 3.08% increase from CNY 1,013,604,052.61 at the end of 2013[22]. - The total comprehensive income for the year was ¥40,177,908.61, down from ¥92,756,166.00 in the previous year, primarily due to a decrease in other comprehensive income[162]. - The company reported a profit distribution of CNY -31,214,123.00, indicating a focus on reinvestment rather than immediate shareholder payouts[170]. Cash Flow - The net cash flow from operating activities improved to CNY 10,510,497.35, a turnaround from a negative cash flow of CNY -70,311,400.92 in 2013, marking a 114.95% increase[22]. - The net cash flow from investing activities decreased by 229.29% to -¥164,878,547.51, attributed to a reduction in cash received related to investment activities and an increase in cash payments for fixed assets and other long-term assets[38]. - The net cash flow from financing activities decreased by 96.32% to ¥13,359,670.69, mainly due to funds raised from a private placement of shares in the previous year[38]. - Cash and cash equivalents at the end of the year totaled ¥167,892,828.72, down from ¥308,928,637.66 at the beginning of the year[166]. - The total cash inflow from investment activities was CNY 10,972,658.69, significantly down from CNY 63,669,750.00 in the previous year, resulting in a net cash flow from investment activities of -CNY 123,235,491.79[168]. Research and Development - Research and development expenses totaled CNY 30.14 million, representing a 3.97% increase from the previous year, accounting for 2.63% of net assets and 1.77% of operating revenue[36]. - The company has 14 drug varieties currently under review, indicating ongoing investment in new product development[26]. - The company will continue to invest heavily in drug research and development, acknowledging the long approval cycles and high costs associated with new drug development[60]. Investment and Projects - The company has committed to invest a total of CNY 29,746 million in various projects, with an adjusted investment amount of CNY 28,505 million[49]. - The annual production line project for 120 million polypropylene infusion bags has seen a cumulative investment of CNY 3,977.58 million, achieving 34.16% of the planned investment progress[49]. - The company has changed the project from "annual production of 500 tons of erythromycin" to "annual production of 200 tons of cephalosporin raw materials" due to significant market changes affecting profitability[51]. Corporate Governance - The company has established a standardized corporate governance structure in compliance with the Company Law and relevant regulations, ensuring effective internal control and governance practices[125]. - The company has engaged Beijing Zhongzheng Tiantong Accounting Firm for auditing services, with a fee of 600,000 RMB, and has maintained this auditor for three consecutive years[88]. - The company has revised its articles of association and related management systems to comply with regulatory requirements, ensuring proper operation and governance[127]. Shareholder Structure - The total number of shares at the end of the reporting period is 312,141,230, with 74.02% (231,045,200 shares) being unrestricted shares[95]. - The largest shareholder, Anhui Province Wuwei Pharmaceutical Factory, holds 11.48% of the shares, totaling 35,842,137 shares, with a reduction of 2,511,605 shares during the reporting period[96][97]. - The company has a total of 15 subsidiaries, all of which are fully owned or controlled, ensuring a strong operational structure[178]. Risks and Challenges - The company emphasizes the high risks associated with new drug development, which involves significant investment and long cycles[13]. - The company faces risks related to drug price reductions and uncertainties in drug bidding processes, which may impact profit margins[59]. - The expected benefits from the projects have not been realized, particularly for the erythromycin project, which has seen a decline in market prices since 2012[49]. Compliance and Social Responsibility - The company emphasizes corporate social responsibility, actively participating in charitable activities and ensuring compliance with environmental regulations[72]. - The company has not faced any administrative penalties during the reporting period[73]. - The company has not reported any issues or problems regarding the use and disclosure of raised funds[50].

Financial Performance - Net profit attributable to shareholders was ¥17,070,977.81, representing a significant increase of 59.81% year-on-year[7]. - Operating revenue for the reporting period was ¥418,871,077.08, reflecting a growth of 7.52% compared to the same period last year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥16,712,063.27, up 158.41% year-on-year[7]. - Basic earnings per share increased to ¥0.0547, a rise of 59.94% compared to the same period last year[7]. - The weighted average return on net assets was 1.56%, an increase of 0.50% from the previous year[7]. - The company reported a net cash flow from operating activities of ¥15,380,568.93, which is a 15.45% increase year-to-date[7]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,726[10]. - The largest shareholder, Anhui Wuwei Pharmaceutical Factory, holds 12.29% of the shares, totaling 38,353,742 shares[10]. - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[11]. Asset and Investment Changes - Total assets at the end of the reporting period reached ¥2,156,989,743.44, an increase of 4.80% compared to the previous year[7]. - Cash and cash equivalents decreased by 45.26% to ¥169.1 million due to investments in construction projects and the relocation of the Wuwei Pharmaceutical Plant[14]. - Accounts receivable increased by 109.69% to ¥44.99 million, attributed to a rise in customers using bill settlements[14]. - Construction in progress rose by 174.20% to ¥238.16 million, driven by the relocation project and new production lines[14]. - Financial expenses increased by 48.80% to ¥21.63 million, primarily due to an increase in bank loan scale[14]. - Investment income surged by 168.34% to ¥9.87 million, resulting from higher cash dividends from Huishang Bank and recovery of previous equity transfer gains[14]. - The net cash flow from investing activities decreased by 3779.98% to -¥120.73 million, influenced by reduced cash received from investment activities and increased payments for fixed assets[14]. Borrowings and Commitments - The company’s short-term borrowings due within one year increased by 625.39% to ¥64.61 million, reflecting a rise in long-term borrowings due within one year[14]. - There are no unfulfilled commitments related to asset restructuring[20]. Strategic Plans and Commitments - The company plans to acquire 100% equity of Chengdu Push Pharmaceutical Co., Ltd. from Sichuan Yibin Push Group through a share issuance and raise matching funds not exceeding 25% of the transaction amount[15]. - The company plans to integrate all pharmaceutical-related assets of the Fengyuan Group into itself to achieve overall listing and eliminate potential competition[18]. - The company has committed to not engaging in any business that competes with its own during the period it is controlled by Fengyuan Group[18]. - The company has committed to ensuring that any business opportunities that may compete with its operations will be unconditionally offered to it[18]. Other Financial Activities - The company has not engaged in any derivative investments during the reporting period[20]. - The company has not made any securities investments during the reporting period[19]. - The company reported a 34.87% decrease in other income to ¥6.86 million, mainly due to reduced government subsidies received[14]. - The company’s minority shareholders' profit increased by 139.48% to ¥145.53 thousand, attributed to the net profit increase of its controlling subsidiary[14]. - There are no significant changes expected in the cumulative net profit for the year compared to the previous year[19]. - The revised accounting standards have resulted in a reclassification of long-term equity investments and financial assets, impacting the balance sheet significantly[22]. - The company has conducted communication activities regarding major asset restructuring matters[21].

Financial Performance - The company achieved operating revenue of ¥846,044,262.65, representing an increase of 18.88% compared to the same period last year[21]. - Net profit attributable to shareholders reached ¥18,740,739.94, a growth of 57.87% year-on-year[21]. - The net cash flow from operating activities was ¥29,059,356.53, reflecting a significant increase of 105.55% compared to the previous year[21]. - Basic earnings per share increased to ¥0.0600, up 44.58% from ¥0.0415 in the same period last year[21]. - Operating profit for the period was ¥21,193,300, marking a 51.80% increase year-on-year[24]. - The company reported a total profit of ¥27,326,100, which is a 44.94% increase compared to the previous year[24]. - Total operating revenue for the first half of 2014 reached ¥846,044,262.65, an increase of 18.9% compared to ¥711,708,770.52 in the same period last year[96]. - Net profit for the first half of 2014 was ¥18,965,986.44, representing a 63.7% increase from ¥11,572,772.21 in the previous year[96]. - The company’s total profit for the first half of 2014 was ¥27,326,051.41, an increase of 44.8% from ¥18,853,406.90 in the previous year[96]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥2,104,184,553.96, a rise of 6.22% from the end of the previous year[21]. - The company's cash and cash equivalents at the end of the reporting period amount to ¥263,328,671.55, down from ¥308,928,637.66 at the beginning of the period[91]. - Accounts receivable increased to ¥376,452,042.24 from ¥314,423,635.02, indicating a growth of approximately 19.7%[91]. - Inventory at the end of the reporting period is ¥215,953,910.18, slightly up from ¥212,262,047.28[91]. - Current liabilities rose to CNY 727,369,937.41, compared to CNY 655,069,273.45, an increase of about 11.0%[93]. - Long-term borrowings increased to CNY 242,780,400.00 from CNY 197,033,600.00, reflecting a growth of approximately 23.3%[93]. - Total liabilities reached CNY 1,044,035,117.76, up from CNY 926,723,436.21, marking an increase of around 12.7%[93]. - Owner's equity totaled CNY 1,060,149,436.20, slightly up from CNY 1,054,299,149.76, indicating a growth of about 0.6%[93]. Investment and Fundraising - Cumulative investment in fundraising projects during the reporting period amounted to ¥49.46 million[27]. - The total amount of raised funds was ¥297.15 million, with ¥124.87 million already utilized[35]. - The company has a total of ¥132.93 million in unutilized raised funds, which are stored in a dedicated account[35]. - The company has temporarily used part of its idle raised funds to supplement working capital, with an amount not exceeding RMB 28 million, for a period not exceeding six months[37]. - The company plans to ensure the efficiency of raised fund usage to enhance profitability through strategic project adjustments[38]. Subsidiaries and Operations - The total registered capital of the subsidiary Anhui Fengyuan Pharmaceutical Marketing Co., Ltd. is RMB 60 million, with a net profit of RMB 3.12 million reported[41]. - The subsidiary Ma'anshan Fengyuan Pharmaceutical Co., Ltd. has a registered capital of RMB 145.5 million and reported a net profit of RMB 16.95 million[41]. - The subsidiary Anhui Fengyuan Likan Pharmaceutical Co., Ltd. reported a net loss of RMB 8.09 million, indicating challenges in profitability[41]. - The company’s subsidiary, Anhui Fengyuan Zhongren Pharmaceutical Co., Ltd., is conducting clinical research on a new anti-cancer implant drug, with updates to be disclosed upon significant progress[73]. Shareholder and Equity Information - The company’s total shares amount to 312,141,230, with 74.01% being unrestricted shares[77]. - The number of restricted shares decreased by 36,800,000, resulting in a new total of 44,296,030 restricted shares, which is 14.19% of total shares[77]. - The total number of common shareholders at the end of the reporting period is 36,632[80]. - The company’s controlling shareholder will not directly or indirectly engage in businesses similar to that of the company during its control period[71]. Financial Management and Accounting Policies - The financial report for the half-year period was not audited[90]. - The financial statements for the first half of 2014 comply with the accounting standards set by the Ministry of Finance of the People's Republic of China[112]. - The company’s accounting policies and estimates are based on the principle of ongoing concern and the accrual basis of accounting[111]. - The company has not identified any prior accounting errors that require restatement in the current reporting period[179]. Revenue Recognition and Sales Performance - Revenue from the sale of goods is recognized when the risks and rewards of ownership have transferred to the buyer, and the amount can be reliably measured[170]. - The company reported a total sales volume of 50,000,000 units for its pharmaceutical products, achieving a 100% sales rate[184]. - The company’s total revenue from export services reached 10,000,000 yuan, maintaining a 100% sales rate[184]. Related Party Transactions - The company has a related party transaction involving the procurement of raw materials amounting to CNY 9.50 million, representing 3.96% of similar transactions[55]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[61]. Legal and Compliance Matters - The company has not faced any major litigation or arbitration matters during the reporting period[49]. - There were no violations regarding external guarantees during the reporting period[67].