海南海药股份有限公司 2020 年第一季度报告全文 海南海药股份有限公司 2020 年第一季度报告 2020 年 08 月 1 海南海药股份有限公司 2020 年第一季度报告全文 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。 公司负责人程爱民、主管会计工作负责人冯毅及会计机构负责人(会计主管 人员)汤勇声明：保证季度报告中财务报表的真实、准确、完整。 2 海南海药股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 12,541,871.66 | | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统 | 2,710,552.87 | | | 一标准定额或定量享受的政府补助除外） | | | ...

海南海药股份有限公司 2020 年第一季度报告全文 海南海药股份有限公司 2020 年第一季度报告 2020 年 04 月 1 海南海药股份有限公司 2020 年第一季度报告全文 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。 公司负责人程爱民、主管会计工作负责人冯毅及会计机构负责人(会计主管 人员)汤勇声明：保证季度报告中财务报表的真实、准确、完整。 2 海南海药股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 502,626,221.61 | 755,828,955.92 | -33.50% | | 归属于上市公司股东的净利润（元） | -101,101,720.41 | 73,294,437.05 ...

Financial Performance - The company's operating revenue for 2019 was ¥2,445,289,306.23, a decrease of 1.07% compared to ¥2,471,770,221.96 in 2018[16]. - The net profit attributable to shareholders was -¥159,134,465.45, representing a decline of 233.09% from ¥119,569,203.64 in the previous year[16]. - The total assets at the end of 2019 were ¥10,776,931,047.26, an increase of 4.26% from ¥10,336,406,520.68 at the end of 2018[16]. - The net assets attributable to shareholders decreased by 3.25% to ¥4,458,455,733.21 from ¥4,608,365,842.41 in 2018[16]. - The basic earnings per share for 2019 was -¥0.12, a decline of 233.33% from ¥0.09 in 2018[16]. - The weighted average return on net assets was -3.51%, down from 2.53% in the previous year[16]. - The company reported a total of ¥468.23 million in non-recurring gains for the year, a substantial increase from ¥120.24 million in 2018, driven by fair value changes in financial assets[22]. - The company reported a net profit attributable to shareholders of the parent company was a loss of CNY 159,134,465.45, a decline of 233.09% compared to a profit of CNY 119,569,203.64 in the previous year[49]. - The gross profit margin for the pharmaceutical segment was 53.14%, reflecting a decrease of 2.69% from the previous year[52]. - The company reported a total of 54,271,432.52 RMB in fair value losses on financial assets during the reporting period[136]. Cash Flow and Investments - The net cash flow from operating activities improved by 61.54%, reaching -¥195,759,095.60 compared to -¥508,955,140.67 in 2018[16]. - The company’s investment activities resulted in a net cash outflow of CNY 856,305,427.87, a significant decrease of 280.97% from a net inflow of CNY 473,166,618.12 in the previous year[49]. - The net cash flow from investment activities decreased by 280.97% compared to the same period last year, primarily due to a 56.05% decline in cash inflows from investment activities[68]. - The company reported an investment income of ¥472,090,514.46, reflecting a significant negative change of -383.22% due to fair value changes in equity holdings[69]. - The company’s cash and cash equivalents decreased from ¥2,630,739,792 to ¥2,084,247,573, a reduction of 6.11%[71]. Research and Development - The company is actively involved in the research and development of new drugs and medical devices, aiming to enhance its product portfolio and market presence[26]. - The R&D focus includes five major areas: raw materials, chemical pharmaceuticals, biological pharmaceuticals, traditional Chinese medicine production, and medical devices[37]. - Research and development expenses increased by 148.62% to CNY 209,183,764.43, driven by new strategic projects including various drug formulations and clinical research[49]. - The company reported a total of 3 innovative drug research projects in 2019, including 2 in Phase I clinical trials[64]. - The company is focusing on the development of new technologies in the healthcare sector[84]. Market and Product Development - The company has diversified its business into six main product categories, including cephalosporin preparations and medical devices, focusing on health-related sectors[26]. - The company has established nearly 100 cochlear implant surgery centers across Shanghai, Beijing, Hunan, Jiangsu, and Shandong, with 13 new centers added in 2019[29]. - The company has launched a new generation of cochlear implants, achieving international advanced performance levels[44]. - The company is expanding its product offerings in the pharmaceutical sector, including raw materials and formulations[85]. - The company plans to invest CNY 343,263.3 million in various projects, with CNY 130,927.1 million already allocated[95]. Strategic Focus and Risks - The company has highlighted risks including policy risk, R&D risk, and risks associated with scale expansion[4]. - The company aims to transform towards high-end, innovative, and differentiated development in response to industry policies and market challenges, focusing on a full pharmaceutical health industry chain[113]. - The company faces policy risks related to price controls and potential margin declines due to increased regulatory scrutiny in the pharmaceutical sector[119]. - The company will adopt a combination of innovative drug research and development (R&D) and generic drug R&D to significantly improve its R&D success rate and shorten development time[120]. Corporate Governance and Compliance - The company has completed a strategic restructuring, changing its actual controller from Mr. Liu Xicheng to the State-owned Assets Supervision and Administration Commission, transitioning from a private enterprise to a state-controlled enterprise[120]. - The company confirmed that all commitments made to minority shareholders were fulfilled on time[132]. - The company did not face any situations that could lead to suspension or termination of its listing during the reporting period[140]. - The company has not disclosed any major equity sales during the reporting period[103]. Environmental and Social Responsibility - The company has established an environmental management system and upgraded its facilities to improve ecological conditions[174]. - The company has invested in noise reduction measures by enclosing high-noise equipment in soundproof enclosures to ensure compliance with noise discharge standards[181]. - The company has invested a total of 764.58 million RMB in poverty alleviation efforts, helping over 4,700 individuals[176]. - The company has provided medical services and financial assistance amounting to 1.35 million RMB for impoverished patients[176].

Financial Performance - Operating revenue decreased by 41.39% to CNY 525,868,322.47 for the current period, and by 5.68% to CNY 1,933,711,402.39 year-to-date[8] - Net profit attributable to shareholders decreased by 47.15% to CNY 42,032,532.29 for the current period, and by 46.24% to CNY 123,107,257.72 year-to-date[8] - Basic earnings per share decreased by 36.96% to CNY 0.0324 for the current period, and by 44.63% to CNY 0.0949 year-to-date[8] - The company reported a 55.58% increase in other current assets, totaling ¥379,071,348.21, due to new structured deposits[19] - The company reported a total of RMB 40,534.57 million in entrusted financial management, with a remaining balance of RMB 39,384.57 million[32] - The total comprehensive income for the current period was ¥33,345,301.98, down from ¥79,892,703.78 in the previous period[59] - The company reported an investment loss of ¥7,186,217.59, compared to a gain of ¥4,464,323.14 in the previous period[54] - The total comprehensive income for the period was -45,505,707.73 CNY, slightly worse than -43,896,136.70 CNY in the same period last year[76] Assets and Liabilities - Total assets increased by 3.37% to CNY 10,684,381,757.03 compared to the end of the previous year[8] - The company's total liabilities increased significantly, with accounts payable rising by 3638.63% to ¥1,121,589,984.65 due to new financing[19] - Total liabilities amounted to CNY 5,070,000,000.00, reflecting a stable financial position with no significant changes reported[93] - Total equity attributable to shareholders reached ¥4,608,365,842.41, while total equity was ¥4,825,430,019.10[95] - Current liabilities totaled ¥2,730,882,976.00, with short-term borrowings at ¥817,800,000.00 and accounts payable at ¥172,209,472.55[100] Cash Flow - The net cash flow from operating activities increased by 244.46% to CNY 7,575,139.83 year-to-date[8] - The net cash flow from operating activities was CNY 2,046,176,259.94, an increase from CNY 1,091,032,710.40 in the previous period, reflecting a growth of approximately 87.6%[85] - Total cash inflow from operating activities reached CNY 5,466,018,956.86, compared to CNY 2,447,898,015.06, indicating a significant increase of about 123.5%[85] - Cash outflow from operating activities totaled CNY 3,419,842,696.92, up from CNY 1,356,865,304.66, representing an increase of approximately 152.5%[85] - The company incurred financial expenses of 36,767,695.68 CNY, compared to 111,282,147.62 CNY in the previous period, showing a significant reduction[74] Shareholder Information - The total number of shareholders at the end of the reporting period was 48,673[12] - The largest shareholder, Shenzhen Nanfang Tongzheng Investment Co., Ltd., holds 24.99% of the shares[12] - No share repurchase transactions were conducted by the top 10 shareholders during the reporting period[16] - The company approved a share repurchase plan with a total fund of no less than RMB 400 million and no more than RMB 600 million, which was disclosed on October 10, 2017[25] Governance and Compliance - The company’s actual controller changed, with the new controller holding 22.23% of the total share capital, impacting governance[23] - The company received approval from the State-owned Assets Supervision and Administration Commission for changes in its controlling shareholder and actual controller[25] - The company has not reported any overdue commitments from actual controllers or shareholders during the reporting period[26] - There were no violations regarding external guarantees during the reporting period[34] Market and Operational Changes - Inventory increased by 41.30% to ¥644,627,502.86, driven by preemptive stocking in response to market strategy changes and raw material supply constraints[19] - The company conducted investor communications regarding production, operations, R&D, and future development plans during the reporting period[33] - The company has not engaged in derivative investments during the reporting period[34] - The company has not implemented any further review of antitrust investigations by the National Market Supervision Administration[25]

Financial Performance - The company's operating revenue for the first half of 2019 was approximately CNY 1.41 billion, representing a 22.12% increase compared to CNY 1.15 billion in the same period last year[18]. - The net profit attributable to shareholders decreased by 45.76% to approximately CNY 81.07 million, down from CNY 149.48 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 93.17% to approximately CNY 59.27 million, compared to CNY 30.68 million last year[18]. - The net cash flow from operating activities improved significantly to approximately CNY 119.64 million, a 726.25% increase from a negative CNY 19.10 million in the same period last year[18]. - Basic and diluted earnings per share decreased by 45.75% to CNY 0.0625, down from CNY 0.1152 in the same period last year[18]. - The weighted average return on net assets decreased to 1.73%, down from 3.11% in the previous year[18]. - The company's revenue for the reporting period was approximately ¥1.41 billion, representing a year-over-year increase of 22.12% compared to ¥1.15 billion in the same period last year[51]. - Operating costs increased by 42.74% to approximately ¥621.58 million, primarily due to rising raw material procurement prices and increased sales volume[51]. - The net cash flow from financing activities improved by 92.31%, amounting to approximately -¥36.45 million, mainly due to an increase in discounted bills received[53]. - The gross profit margin for the pharmaceutical segment was 58.12%, a decrease of 7.55% compared to the previous year[54]. Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 11.01 billion, reflecting a 6.50% increase from CNY 10.34 billion at the end of the previous year[18]. - The net assets attributable to shareholders increased by 2.96% to approximately CNY 4.74 billion, compared to CNY 4.61 billion at the end of the previous year[18]. - The company's total assets at the end of the reporting period were approximately ¥11.00 billion, with cash and cash equivalents amounting to approximately ¥2.57 billion, representing 23.35% of total assets[60]. - The company reported a significant increase in short-term borrowings, which rose to approximately ¥2.43 billion, accounting for 22.11% of total assets, reflecting a 2.90% increase from the previous year[60]. - The company's total liabilities reached CNY 6,063,302,477.65, compared to CNY 5,510,976,501.58, representing an increase of approximately 10%[168]. Research and Development - The company operates in the health sector, focusing on drug research and manufacturing, medical devices, and internet healthcare, with major products including six series of antibiotics and medical devices[25]. - The company is in the registration application phase for several new drugs, including Rifampicin suspension and injectable antibiotics, indicating ongoing product development efforts[30]. - The company is conducting Phase I clinical trials for Fluorofenidone, which has already obtained clinical approval, focusing on liver fibrosis treatment[32]. - The company is focusing on expanding its product offerings in the oncology segment, with several anti-tumor drugs in various stages of clinical trials[32]. - The company has established a unified quality system for R&D across its drug development institutions in the US, Hong Kong, Beijing, Haikou, and Chongqing, focusing on monoclonal antibodies and targeted anti-tumor drugs[41]. - The company is adopting a combined approach of original and generic drug development to improve R&D efficiency and success rates[79]. Market and Sales - The company has a marketing network for its products, with over 80 cochlear implant surgery centers established in major cities, enhancing its sales and service capabilities[29]. - Domestic revenue accounted for approximately ¥1.30 billion, with a year-over-year growth of 15.34%, while international revenue surged by 302.57% to approximately ¥109.45 million[54]. - The company has several products included in the provincial and national medical insurance drug directories, ensuring broader market access and reimbursement support[36]. Investments and Financial Activities - The company made significant equity investments, including 1,020,000.00 CNY in Hunan Lianyao Information Technology Co., holding a 66% stake[65]. - The company completed the establishment of a software development company in the U.S. with an investment of 1,836,926.00 CNY, holding 100% equity[65]. - The company reported a cumulative fair value change loss of 204,630,421.4 CNY in other equity instruments[62]. - The company reported a net profit contribution from the sale of equity interests amounting to RMB -113.01 million, representing a -2.72% impact on net profit[73]. Environmental and Social Responsibility - The company has established a wastewater treatment facility with a capacity of 800m³/d, ensuring that all wastewater meets Class III discharge standards before entering the Sujia wastewater treatment plant[128]. - The company has allocated approximately 345.74 million yuan for poverty alleviation initiatives, including medical services for hearing-impaired individuals[133]. - The company has developed emergency response plans for environmental incidents, including training and drills for employees[131]. Corporate Governance and Compliance - The company has not undergone any bankruptcy reorganization during the reporting period[88]. - There were no significant litigation or arbitration matters during the reporting period[89]. - The integrity status of the company and its controlling shareholders remains good, with no significant debts due that have not been settled[93]. - The company did not engage in derivative investments during the reporting period[71]. - The company has not reported any significant changes in asset measurement attributes during the reporting period[62]. Employee and Shareholder Matters - The first employee stock ownership plan raised a total of 70 million CNY, with 4,073,323 shares purchased at an average price of 46.34 CNY per share[94]. - The total number of ordinary shareholders at the end of the reporting period was 58,520[145]. - The company experienced changes in its board members, with three executives resigning on April 22, 2019, due to personal reasons[155].

Financial Performance - The company's operating revenue for Q1 2019 was ¥755,828,955.92, representing a 14.99% increase compared to ¥657,320,034.01 in the same period last year[8]. - The net profit attributable to shareholders was ¥73,294,437.05, a slight increase of 1.31% from ¥72,350,167.05 year-on-year[8]. - The net profit after deducting non-recurring gains and losses decreased by 3.59% to ¥64,122,311.88 from ¥66,510,693.01 in the previous year[8]. - The basic earnings per share remained unchanged at ¥0.05, with a diluted earnings per share also at ¥0.05[8]. - The weighted average return on net assets was 1.50%, slightly down from 1.51% in the previous year[8]. - The company's net profit margin decreased, with a net loss of ¥22,419,637.52 compared to a loss of ¥6,433,090.54 in the previous period[50]. - The net profit for the current period is ¥69,594,316.53, slightly down from ¥70,639,034.28, indicating a decrease of approximately 1.5%[58]. - The total profit for the current period is ¥72,134,064.40, down from ¥89,723,513.63 in the previous period, reflecting a decline of about 19.7%[58]. Cash Flow - The net cash flow from operating activities improved significantly, reaching -¥31,865,006.93, a 59.50% increase from -¥78,683,507.15 in the same period last year[8]. - The cash flow from operating activities is ¥518,335,248.20, compared to ¥543,992,734.37 in the previous period, showing a slight decrease[64]. - Total cash inflow from operating activities was 584,190,406.09, while cash outflow was 616,055,413.02, resulting in a net cash flow of -31,865,006.93[66]. - The net cash flow from financing activities was 352,688,023.08, a substantial increase compared to -77,985,028.33 in the prior period[68]. - The company reported a significant increase in cash received from operating activities, totaling 598,028,744.77 compared to 265,021,223.55 in the previous period[72]. - The company experienced a net increase in cash and cash equivalents of -113,406,927.79, compared to -672,175,188.83 in the previous period[68]. Assets and Liabilities - Total assets at the end of the reporting period were ¥10,914,737,218.59, up 5.60% from ¥10,336,406,520.68 at the end of the previous year[8]. - The total liabilities increased to ¥5,683,095,114.88 from ¥5,302,675,007.04, reflecting a rise of approximately 7.2%[36]. - The company's short-term borrowings increased to ¥2,285,297,543.59 from ¥1,985,300,000.00, marking an increase of about 15.1%[38]. - The total liabilities rose to ¥5,929,429,512.43, up from ¥5,510,976,501.58, representing an increase of approximately 7.6%[42]. - The total current liabilities include accounts payable and notes payable of ¥555,513,528.48[80]. Shareholder Information - The net assets attributable to shareholders increased by 3.40% to ¥4,764,998,890.78 from ¥4,608,365,842.41 at the end of the previous year[8]. - The total number of ordinary shareholders at the end of the reporting period was 61,799[13]. - The first employee stock ownership plan was fully sold, with 8,146,646 shares representing 0.61% of total equity[23]. - The second employee stock ownership plan was terminated as it did not complete stock purchases by the deadline[23]. Investments and Expenses - Research and development expenses were reported at ¥2,291,758.76, slightly higher than ¥2,116,673.73 in the previous period, indicating continued investment in innovation[51]. - Total financial expenses rose by 31.49% to ¥60,113,786.14, driven by increased loan interest expenses[21]. - Investment income decreased by 214.95% to -¥15,464,244.82, reflecting reduced returns from joint ventures[21]. - The company reported a significant increase in interest expenses, which rose to ¥73,577,197.49 from ¥60,470,880.58, highlighting rising borrowing costs[51]. Other Financial Metrics - The company reported non-recurring gains and losses totaling ¥9,172,125.17 for the reporting period[11]. - The company has no derivative investments during the reporting period[29]. - The company has invested ¥249,692,653.71 in development expenditures, reflecting ongoing R&D efforts[78]. - The company reported a foreign exchange loss of ¥1,478,280.42, compared to a loss of ¥3,246,012.47 in the previous period[56].

Financial Performance - The company's operating revenue for 2018 was approximately ¥2.47 billion, representing a 35.47% increase compared to ¥1.82 billion in 2017[18]. - The net profit attributable to shareholders for 2018 was approximately ¥119.57 million, a 38.03% increase from ¥86.63 million in 2017[18]. - The basic earnings per share for 2018 increased by 50% to ¥0.09 from ¥0.06 in 2017[18]. - The company reported a significant improvement in net profit excluding non-recurring gains and losses, which was approximately -¥666.93 thousand, a 97.24% improvement from -¥24.12 million in 2017[18]. - The company's gross profit margin for the pharmaceutical sector was 55.83%, with a revenue increase of 39.23% year-over-year[55]. - The company’s net profit for the year was approximately 102 million yuan, contrasting sharply with the negative cash flow from operating activities[72]. - The company reported a total revenue of 211,244 million yuan for the year, with a net loss of 2,769 million yuan[96]. Cash Flow and Investments - The net cash flow from operating activities was negative at approximately -¥508.96 million, a significant decline of 196.67% compared to ¥526.48 million in 2017[18]. - The company’s cash flow from operating activities showed a significant decline, with a net outflow of CNY 508,955,140.67 compared to a net inflow of CNY 526,479,214.58 in the previous year[49]. - The company’s investment activities generated a net cash inflow of CNY 473,166,618.12, a turnaround from a net outflow of CNY 640,817,260.90 in the previous year[49]. - The company reported a significant investment decrease of 71.83%, with total investments for the period at approximately 211 million yuan[82]. - The company has ongoing investments in securities, with a total initial investment of 337,434 yuan and a fair value change of -188,300 yuan[98]. Assets and Liabilities - Total assets at the end of 2018 were approximately ¥10.34 billion, a decrease of 2.00% from ¥10.55 billion at the end of 2017[18]. - The net assets attributable to shareholders decreased by 5.06% to approximately ¥4.61 billion from ¥4.85 billion in 2017[18]. - The company’s long-term equity investments increased by 33.33% to approximately 518 million yuan, reflecting growth in digital healthcare investments[76]. - The company reported a total of 343,263.3 million RMB in committed investment projects, with a remaining balance of 346,047.2 million RMB[112]. Research and Development - Research and development expenses amounted to CNY 84,137,482.68, reflecting a 35.31% increase from CNY 62,182,098.75 in the previous year[49]. - The number of R&D personnel increased by 57.94% to 199, representing 8.44% of the total workforce[69]. - The company is focusing on R&D in three major areas: chemical drugs, biomedical devices, and biopharmaceuticals, with a unified quality system across its research institutions[34]. - The company has initiated clinical trials for several innovative drugs, including a 1.1 class new drug for rheumatoid arthritis, which has entered phase III clinical trials[40]. Market and Sales - The company’s sales model includes direct participation in regional drug tenders and a comprehensive marketing network supported by academic promotion[29]. - The company is actively expanding its sales channels, targeting retail pharmacies and county-level medical institutions to adapt to policy changes in drug procurement[135]. - The company has established a strong presence in internet healthcare through its subsidiary, leveraging industry experience and capabilities[37]. - The company is focusing on high-quality innovative drugs and generic drugs in response to industry policy changes and market demands[132]. Corporate Governance and Compliance - The company has not proposed any cash dividends for the 2018 fiscal year due to a net loss of CNY 54.95 million[150]. - The company has been under investigation for failing to disclose related party transactions, resulting in multiple fines for its executives[172]. - The company is currently addressing compliance issues following the penalties imposed by the regulatory authority[170]. - The company is committed to improving transparency and compliance in its financial reporting[170]. Subsidiaries and Acquisitions - The company has established several new subsidiaries, including Hainan YouniCore Biotechnology Co., Ltd. and Nanjing Yunxing Blood Purification Service Co., Ltd., expanding its operational scope[161]. - The company has expanded its market presence by acquiring a chronic disease rehabilitation hospital for 9.31 million, holding a 70% stake[86]. - The company has established partnerships with state-owned enterprises and financial institutions to enhance resource sharing and reduce costs[139]. Challenges and Risks - The company anticipates potential risks to its future development due to policy changes affecting drug pricing and profitability[141]. - The company is facing management challenges due to rapid expansion and increased operational scale, necessitating improved coordination and resource integration[142]. - The actual controller of the company is undergoing a potential change, which introduces uncertainty into the company's control structure[142].

Financial Performance - Net profit attributable to shareholders was CNY 79,535,672.01, representing a year-on-year increase of 27.22%[7]. - Operating revenue reached CNY 897,202,783.19, an increase of 81.28% compared to the same period last year[7]. - The net profit after deducting non-recurring gains and losses was CNY 78,605,443.64, up 83.27% year-on-year[7]. - Basic earnings per share remained at CNY 0.05, unchanged from the previous period[7]. - The weighted average return on equity was 1.63%, an increase of 0.42% compared to the previous year[7]. - The company reported a net cash flow from operating activities of CNY -5,243,765.30, a decrease of 107.30%[7]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 10,182,679,505.55, a decrease of 3.46% compared to the end of the previous year[7]. - The company’s long-term payables increased significantly by 2421.13% to ¥123,673,338.33, reflecting new financing lease obligations[19]. Revenue and Expenses - Operating revenue for the period was ¥2,050,078,345.48, representing a 62.95% increase driven by higher sales of formulation products[19]. - Research and development expenses surged by 330.42% to ¥17,424,928.38, mainly due to increased investment in clinical research for new drugs[21]. - The company reported a 322.85% increase in selling expenses to ¥557,943,546.37, attributed to enhanced market development efforts[21]. - Investment income increased by 61.21% to ¥98,653,535.98, resulting from the transfer of a 10% stake in a joint venture[21]. Cash Flow - The cash flow from investment activities improved by 165.41% to ¥625,968,818.00, due to reduced expenditures on external investments and fixed asset purchases[21]. Shareholder Information - The top shareholder, Shenzhen Nanfang Tongzheng Investment Co., Ltd., holds 24.99% of the shares, amounting to 333,855,676 shares[12]. - The company has implemented a second employee stock ownership plan with a total fundraising cap of CNY 150 million, where employee contributions will not exceed CNY 75 million, involving up to 396 participants[25]. Government and Financial Support - The company received government subsidies amounting to CNY 7,879,500.57 during the reporting period[8]. - The company has engaged in various financial investments, including CNY 29.53 million in bank wealth management products from self-owned funds and CNY 39.1 million from raised funds[33]. - The total amount of entrusted financial management reached CNY 89.12 million, with no overdue amounts reported[35]. Regulatory and Compliance Issues - The company faced administrative penalties related to its subsidiary, which is under investigation by the China Securities Regulatory Commission[24]. - The company’s stock was suspended from trading due to a major asset restructuring plan, which was later terminated[22]. - There were no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[27]. - The company has not predicted any substantial changes in net profit compared to the same period last year[28]. - The company has not engaged in derivative investments during the reporting period[36]. - There were no violations regarding external guarantees during the reporting period[37]. - The company did not report any non-operating fund occupation by controlling shareholders or related parties[38]. Non-Recurring Items - Non-recurring gains and losses totaled CNY 106,221,172.93 after tax adjustments[10]. - The company’s financial assets measured at fair value increased by 63.66% to ¥479,803,173.61 due to the purchase of principal-protected financial products linked to returns and changes in stock investments[19]. - Prepayments rose by 120.96% to ¥247,464,104.53, primarily due to an increase in advance payments for goods[19].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,152,875,562.30, representing a 51.06% increase compared to CNY 763,202,883.05 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 149,475,061.22, up 31.61% from CNY 113,576,052.11 year-on-year[18]. - The net profit after deducting non-recurring gains and losses decreased by 49.09% to CNY 30,681,022.91 from CNY 60,262,198.55 in the previous year[18]. - The basic earnings per share increased by 33.33% to CNY 0.12 from CNY 0.09 in the same period last year[18]. - The company reported a revenue of 1,529.8 million with a net loss of 664.32 million, indicating a performance shortfall[71]. - The company reported a total revenue of 102,966,491.5 with a net loss of 12,074[73]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,070,042,669.55, a decrease of 4.53% from CNY 10,547,363,341.37 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 3.84% to CNY 4,667,698,005.53 from CNY 4,853,998,072.94 at the end of the previous year[18]. - The company’s total liabilities increased, with long-term borrowings at CNY 418,050,000, which is 4.15% of total liabilities, a slight increase from 3.96% in the previous year[60]. - The company's total liabilities decreased from RMB 5,470,190,473.08 to RMB 5,185,029,023.32, a decline of approximately 5.22%[189]. - The company's total equity remained unchanged at RMB 1,335,979,264.00[189]. Cash Flow - The net cash flow from operating activities was negative at CNY -19,104,405.61, an improvement of 17.59% compared to CNY -23,181,983.26 in the same period last year[18]. - The company’s net cash and cash equivalents decreased by 53.26% to CNY 637,312,659.96, mainly due to the absence of similar financing activities compared to the previous year[52]. - Cash and cash equivalents decreased to CNY 3,084,552,610, representing 30.63% of total assets, down from 34.85% in the previous year, mainly due to repayments of financing instruments and increased investment in construction projects[60]. Research and Development - The company is focusing on R&D in three main areas: chemical drugs, biomedical devices, and biopharmaceuticals, aiming to improve product quality and accelerate new product commercialization[41]. - The company has established a gene and cell therapy center in Hainan, collaborating with leading firms in the CAR-T treatment field[46]. - The company has increased its R&D investment by 94.69% to CNY 29,884,989.84, driven by projects such as the re-evaluation of the gastrointestinal health granules and the development of Ticagrelor tablets[52]. - The company is actively expanding its product pipeline with ongoing research and development efforts for new drugs targeting infections and chronic diseases[32]. Market and Sales Strategy - The company has established a comprehensive marketing network, including clinical academic promotion and international trade, to enhance product market penetration[42]. - The company’s marketing strategy includes participation in industry conferences and leveraging social media to enhance brand visibility and promote products[31]. - The sales model includes direct participation in regional drug tenders and collaboration with international distributors for certain gastrointestinal products[30]. Risk Management - The company emphasizes the importance of risk awareness regarding policy, R&D, and management risks associated with scale expansion[6]. - The company faces risks from policy changes affecting drug pricing and profitability, prompting a focus on cost control and new product development[85]. Corporate Governance and Compliance - The company received a warning and was fined 300,000 RMB by the China Securities Regulatory Commission for failing to disclose major guarantees and related party transactions[97]. - The company has not reported any significant penalties or corrective actions aside from the aforementioned fines[97]. - The company has not undergone an audit for its semi-annual financial report[183]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 33,734[151]. - Shenzhen Nanfang Tongzheng Investment Co., Ltd. held 27.87% of shares, amounting to 372,355,600 shares, with 201,525,900 shares pledged[151]. - The company did not experience any changes in its controlling shareholder during the reporting period[156]. Investments and Acquisitions - The company is undergoing a major asset restructuring to acquire 100% equity of Haikou Qili Pharmaceutical Co., Ltd., with the restructuring process confirmed on December 6, 2017[142]. - The company has completed several acquisitions, including a medical recovery hospital, which is expected to enhance its service offerings[71]. Environmental and Social Responsibility - The company has no significant environmental protection issues and is classified as a key pollutant discharge unit[132]. - The company plans to continue its focus on targeted poverty alleviation, with a total investment of RMB 275.16 million in the first half of 2018[140].

Financial Performance - The company's operating revenue for Q1 2018 was ¥657,320,034.01, representing a 61.68% increase compared to ¥406,547,813.82 in the same period last year[8] - The net profit attributable to shareholders was ¥72,350,167.05, which is a 9.38% increase from ¥66,143,165.23 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥66,510,693.01, reflecting a 19.17% increase from ¥55,810,513.26 in the previous year[8] - The net cash flow from operating activities was -¥78,683,507.15, a decrease of 17.24% compared to -¥67,112,348.58 in the same period last year[8] - The company's total assets increased by 101.51% in other current assets, reaching RMB 490.49 million, attributed to the purchase of bank wealth management products and prepayments for engineering projects[16] - The company reported a 60.96% increase in operating costs, totaling RMB 305.01 million, driven by higher sales of raw materials and intermediates[16] - The company’s investment income decreased significantly by 219.17%, resulting in a loss of RMB 4.91 million, mainly due to reduced income from entrusted wealth management[16] - The company’s financial expenses increased by 61.66% to RMB 45.72 million, primarily due to interest expenses from bonds and bank loans[16] Shareholder Information - The total number of shareholders at the end of the reporting period was 33,733[11] - The largest shareholder, Shenzhen Nanfang Tongzheng Investment Co., Ltd., held 27.87% of the shares, amounting to 372,355,676 shares[11] - The company completed a share buyback of 38,614,138 shares for a total amount of RMB 509.69 million, representing 2.89% of the total share capital[18] Asset and Equity Information - The total assets at the end of the reporting period were ¥10,450,237,094.39, a decrease of 0.92% from ¥10,547,363,341.37 at the end of the previous year[8] - The net assets attributable to shareholders were ¥4,831,500,147.04, down 0.46% from ¥4,853,998,072.94 at the end of the previous year[8] - The weighted average return on equity was 1.51%, an increase of 0.30% from 1.21% in the previous year[8] Regulatory and Compliance Issues - The company received a notice of investigation from the China Securities Regulatory Commission for suspected violations of information disclosure laws[19] - The company had no violations regarding external guarantees during the reporting period[25] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[26] Investment Activities - The company reported a total initial investment in securities of ¥75,777,030, with a total of 4,966,400 shares held at the beginning of the period[22] - The company experienced a loss of ¥2,100,070 from its securities investments during the reporting period[22] - The company holds 2,862,790 shares of Jinling Pharmaceutical, representing 0.57% of total shares at the end of the period, with a loss of ¥916,743[22] - The company holds 2,078,000 shares of Dongyang Pharmaceutical, representing 0.83% of total shares at the end of the period, with a loss of ¥835,323[22] - The company holds 1,266,000 shares of Shanghai Fudan, representing 0.19% of total shares at the end of the period, with a loss of ¥348,010[22] - There were no derivative investments reported during the period[23] Communication and Engagement - The company engaged in investor communications, including a phone consultation on March 31, 2018, regarding production and R&D[24]