Financial Performance - The company's operating revenue for 2019 was approximately ¥8.22 billion, representing a 10.09% increase compared to ¥7.47 billion in 2018[16]. - The net profit attributable to shareholders decreased by 10.87% to approximately ¥173.98 million from ¥195.20 million in 2018[16]. - The net profit after deducting non-recurring gains and losses surged by 185.80% to approximately ¥120.52 million, up from ¥42.17 million in 2018[16]. - The net cash flow from operating activities increased by 23.68% to approximately ¥352.60 million, compared to ¥285.09 million in 2018[16]. - The total assets of the company at the end of 2019 were approximately ¥12.54 billion, a 7.01% increase from ¥11.72 billion at the end of 2018[17]. - The net assets attributable to shareholders increased by 9.80% to approximately ¥3.81 billion from ¥3.47 billion in 2018[17]. - The basic earnings per share decreased by 20.83% to ¥0.19 from ¥0.24 in 2018[16]. - The weighted average return on net assets was 4.64%, down from 6.33% in 2018[16]. Market and Product Development - The company has a diverse product portfolio, including over 400 types of chemical raw materials and pharmaceutical preparations, with products exported to over 100 countries[27]. - The company is focused on expanding its market presence and enhancing its product offerings in the pharmaceutical sector[26]. - The company aims to establish itself as a leading comprehensive pharmaceutical health industry group both domestically and internationally[26]. - The company’s main products include antibiotics, vitamins, and drugs for various medical conditions, contributing to its strong market reputation[28]. - The company is committed to continuous innovation in drug development and improving its production capabilities[27]. - The company has established a comprehensive sales network covering over 100 countries and regions, with a domestic sales network spanning across the entire country[34]. - The company is currently conducting clinical trials for several new drugs, including Berberine Hydrochloride Tablets and Hydroxycodone Injection[63]. - The company is enhancing its product portfolio with new technologies and expanding its market presence through ongoing research and development efforts[63]. Operational Efficiency and Management - The company has implemented a mixed-ownership reform to enhance its management and operational efficiency[26]. - The company has established a refined management system covering finance, procurement, production, and sales, enhancing operational efficiency[59]. - The company has implemented a smart manufacturing model for raw materials, achieving full-process management and enhancing production quality and efficiency[33]. - The company has established a modern corporate governance model, enhancing its market competitiveness and operational efficiency[40]. - The company has established a comprehensive performance evaluation system to enhance human resource efficiency and effectiveness[111]. - The company is enhancing internal controls and auditing processes to ensure compliance and mitigate operational risks[109]. Research and Development - The company has a strong focus on R&D, with a range of narcotic and psychotropic drugs, as well as common drugs widely used in clinical settings[31]. - The company reported a total R&D investment of CNY 140,280,704.76 in 2019, which accounted for 1.71% of total operating revenue, up from 1.65% in 2018[83]. - The number of R&D personnel increased by 6.04% to 930, although their proportion of total employees decreased to 8.86%[83]. - The company has ongoing projects for new products, including a new formulation for treating postpartum hemorrhage and a series of anti-HIV medications, with expected submissions for regulatory approval in 2020[80][81]. Environmental Responsibility - The company is focusing on environmental sustainability by adopting new technologies and processes to improve waste management and energy efficiency[107]. - The company has committed to enhancing its environmental protection capabilities by implementing new technologies and processes, significantly improving its waste treatment capacity[183]. - The company has set a target to reduce emissions of volatile organic compounds to below 120 mg/m³ across all facilities[194]. - The company has implemented a multi-stage treatment system for flue gas from boilers, including bag dust removal and dual alkali desulfurization[199]. - The company emphasizes "green development and environmental protection" in its operational strategies[198]. Profit Distribution and Shareholder Relations - The company plans to distribute profits by increasing capital reserves, issuing 4.9 shares for every 10 shares held, without cash dividends[5]. - The company has not distributed cash dividends in the past three years, with cash dividends amounting to 0 for 2019, 2018, and 2017, representing 0% of the net profit attributable to ordinary shareholders[128]. - The profit distribution plan for 2019 includes a capital reserve conversion of 4.9 shares for every 10 shares held, totaling 444,453,584 shares, resulting in a new total share capital of 1,351,501,714 shares[132]. - The company retained undistributed profits to ensure liquidity for operations and strategic development, particularly in response to the impact of the COVID-19 pandemic[129]. - The company’s cash dividend policy complies with its articles of association and shareholder resolutions, with clear standards and procedures in place[126]. Legal and Compliance Issues - The company is currently involved in a significant lawsuit with a claim amount of 27,739,000 RMB, which is still under trial[155]. - Another lawsuit involves a claim of 33,048,000 RMB, with the court ruling that the defendant must pay this amount along with overdue payment penalties[159]. - The company has a pending appeal in a construction dispute case, with the hearing scheduled for May 22, 2020[159]. Financial Instruments and Accounting - The company has implemented new financial instrument standards effective January 1, 2019, which require a shift to an expected credit loss model for impairment recognition[138]. - The company has not designated any financial assets or liabilities to be measured at fair value through profit or loss as of January 1, 2019[138]. - The company has confirmed that all commitments made by major shareholders and related parties have been fulfilled within the reporting period[134].

Financial Performance - Net profit attributable to shareholders was ¥56,386,823.22, representing a significant increase of 39.83% year-on-year[9]. - Operating revenue for the reporting period was ¥1,937,952,713.26, reflecting a growth of 3.70% compared to the same period last year[9]. - The net profit after deducting non-recurring gains and losses was ¥54,496,060.97, a substantial increase of 83.21% year-on-year[9]. - Net profit for the current period was ¥61,474,686.58, compared to ¥41,094,187.86 in the previous period, indicating a significant increase of approximately 49.8%[62]. - The company reported a total profit of ¥72,348,856.23, compared to ¥44,786,546.46 in the previous period, an increase of approximately 61.8%[62]. - Net profit for the period was ¥181,630,350.75, compared to ¥161,436,155.31 in the previous period, indicating a growth of 12.57%[80]. - The company reported a total comprehensive income of ¥183,054,168.33, an increase from ¥162,349,834.50 in the prior period[84]. - The company recorded a tax expense of ¥37,379,307.02, compared to ¥11,099,037.08 in the previous period, showing a significant increase[80]. Earnings and Shareholder Returns - The basic earnings per share for the reporting period was ¥0.06, an increase of 20.00% compared to the same period last year[9]. - Basic and diluted earnings per share remained stable at ¥0.20, consistent with the previous period[84]. Cash Flow - The net cash flow from operating activities was -¥174,688,953.07, indicating a decline of 1,246.74% year-on-year[9]. - The net cash flow from operating activities was -406,842,339.08, a decrease from 535,859,896.60 in the previous period[104]. - Cash flow from operating activities generated ¥6,082,478,728.66, an increase from ¥5,246,346,767.03, representing a growth of about 16.0%[93]. - Cash inflow from financing activities totaled 2,411,835,159.47, down from 3,059,891,121.29, indicating a decrease of approximately 21.2%[107]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥12,480,596,444.96, an increase of 6.50% compared to the end of the previous year[9]. - The total liabilities increased to ¥8,628,568,887.86 from ¥8,125,906,330.73, representing a growth of approximately 6.2%[45]. - The balance of non-current liabilities due within one year at the end of the period is 916.11 million yuan, an increase of 2093% compared to the beginning of the year, mainly due to the reclassification of long-term payables related to a project financing[22]. - The total current liabilities amounted to ¥7,904,523,224.92, up from ¥6,651,377,374.80, which is an increase of about 18.8%[45]. - The total owner's equity rose to ¥3,852,027,557.10 from ¥3,592,837,914.30, indicating an increase of about 7.2%[48]. Cash and Cash Equivalents - The balance of cash and cash equivalents at the end of the period was ¥1,698,520,000, up 32% from the beginning of the year due to employee stock option contributions[20]. - The ending cash and cash equivalents balance was ¥1,015,327,770.92, down from ¥1,255,581,987.85, a decrease of approximately 19.1%[99]. - The ending balance of cash and cash equivalents was 400,747,593.49, compared to 794,027,825.23 at the end of the previous period, showing a decrease of about 49.6%[107]. Expenses - Research and development expenses decreased to ¥9,828,877.41 from ¥26,445,129.24, a reduction of approximately 62.8%[59]. - Sales expenses decreased to ¥502,607,262.69 from ¥527,265,520.34, a decline of about 4.7%[59]. - The company experienced a credit impairment loss of ¥6,963,574.01 during the period[80]. - Financial expenses decreased to ¥42,188,341.03 from ¥57,053,137.17, a reduction of about 26.0%[88]. Inventory and Current Assets - The balance of inventory at the end of the period is approximately 1.08 billion yuan, a decrease from approximately 1.27 billion yuan at the end of 2018[42]. - The inventory decreased to ¥381,391,190.15 from ¥538,985,086.93, representing a decline of approximately 29.2%[52]. - The total current assets increased to ¥2,616,730,105.50 from ¥2,458,601,873.77, indicating a growth of about 6.4%[52].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 4,110,319,650.45, representing a 9.65% increase compared to CNY 3,748,513,664.94 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 118,955,585.29, an increase of 18.92% from CNY 100,031,289.42 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 106,110,885.44, up 24.71% from CNY 85,085,920.79 in the same period last year[24]. - The net cash flow from operating activities was CNY -208,082,515.37, a significant decrease of 1,034.03% compared to CNY -18,348,951.63 in the previous year[24]. - Total assets at the end of the reporting period were CNY 12,257,313,090.24, reflecting a 4.60% increase from CNY 11,718,744,245.03 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company increased by 10.71% to CNY 3,842,429,043.33 from CNY 3,470,759,871.87 at the end of the previous year[24]. - The basic earnings per share remained stable at CNY 0.20, unchanged from the previous year[24]. - The diluted earnings per share also remained at CNY 0.20, consistent with the previous year[24]. - The weighted average return on net assets was 3.25%, a decrease of 0.38% compared to 3.63% in the previous year[24]. Revenue Breakdown - The raw material drug segment generated revenue of 743 million CNY, a decrease of 11.19% year-on-year[42]. - The formulation segment achieved revenue of 1.831 billion CNY, an increase of 25.48% year-on-year[42]. - The pharmaceutical commercial segment reported revenue of 1.493 billion CNY, up 7.32% year-on-year[42]. - The company's total revenue from the pharmaceutical manufacturing segment reached approximately ¥2.58 billion, with a gross margin of 65.97%, up 3.33% year-over-year[59]. Cost and Expenses - The operating cost increased to ¥2,271,916,647.35, up 4.76% from ¥2,168,755,614.58 in the previous year[53]. - Sales expenses rose significantly by 21.22%, amounting to ¥1,159,487,233.31, compared to ¥956,492,944.25 in the prior year[53]. - The management expenses increased by 7.87%, totaling ¥339,482,228.69 compared to ¥314,700,514.70 in the previous year[53]. - The company's financial expenses decreased by 27.76% to approximately ¥53.20 million compared to the previous period[57]. Innovation and Development - The company is focusing on innovation and product development, aiming to enhance competitiveness and efficiency across its pharmaceutical product lines[43]. - The company has established a biological medicine innovation platform to support its dual innovation strategy of leading with innovative drugs and following with generic drugs[43]. - Research and development investment increased by 23.38% to approximately ¥57.23 million, reflecting a commitment to innovation[57]. Corporate Governance and Management - The company has implemented a mixed-ownership reform, enhancing management efficiency and establishing a market-oriented governance structure[42]. - The company has approved a restricted stock incentive plan, granting 37,613,000 shares to 254 individuals, with the listing date set for January 22, 2019[93]. - The company appointed new senior management, including 周凯 as the new general manager and 张利东 as the new vice president and CFO[181]. Environmental Responsibility - The company has completed the first phase of its environmental protection project and is committed to enhancing its environmental responsibility[74]. - The company has implemented pollution prevention facilities, ensuring compliance with environmental standards across its operations[126]. - The company reported a total wastewater discharge of COD 246.07 mg/L and ammonia nitrogen 0.82 mg/L at the Tiexi plant, which is below the regulatory limits of COD 300 mg/L and ammonia nitrogen 30 mg/L[118]. - The company has established a comprehensive environmental management system to address pollution control and ensure sustainable operations[126]. Shareholder Information - The largest shareholder, Liaoning Fangda Group Industrial Co., Ltd., holds 24.41% of the shares, totaling 148,222,473 shares, which are currently pledged[161]. - The second-largest shareholder, Northeast Pharmaceutical Group Co., Ltd., holds 16.16% of the shares, totaling 98,153,387 shares, with a decrease of 758,640 shares during the reporting period[161]. - The total number of shares held by the top ten unrestricted shareholders includes significant holdings by Yang Guang (3.72%, 22,568,049 shares) and Wu Haizhen (1.33%, 8,084,022 shares)[161]. Legal and Compliance - The company is involved in significant litigation, with amounts at stake including ¥15,729,000 and ¥27,739,000 in two separate cases[87]. - The company has not reported any penalties or rectifications during the reporting period[89]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[95]. Audit and Financial Reporting - The company’s half-year financial report has been audited by Tianzhi International Accounting Firm, with an audit fee of 450,000 RMB[85]. - The company reported a standard unqualified audit opinion for the half-year report, signed on August 27, 2019[187]. - The financial statements are prepared in Renminbi (RMB) and the company has no outstanding bonds that have not been fully paid upon maturity[185].

东北制药集团股份有限公司 2019 年第一季度报告 2019 年 04 月 1 m cr 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。 公司负责人魏海军、主管会计工作负责人张利东及会计机构负责人(会计主 管人员)周雅娜声明：保证季度报告中财务报表的真实、准确、完整。 2 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 | | | | | | 营业收入（元） | 本报告期 2,133,979,382.40 | | ...

Financial Performance - The company's operating revenue for 2018 was ¥7,466,555,237.42, representing a 31.54% increase compared to ¥5,676,351,554.60 in 2017[29]. - The net profit attributable to shareholders for 2018 was ¥195,199,719.21, a 64.04% increase from ¥118,995,323.60 in 2017[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥42,169,451.02, showing a decrease of 63.18% compared to ¥114,521,798.94 in 2017[29]. - The net cash flow from operating activities for 2018 was ¥285,090,647.02, a significant improvement from -¥301,199,612.07 in 2017[29]. - The total assets at the end of 2018 were ¥11,718,744,245.03, an increase of 10.63% from ¥10,593,040,939.26 at the end of 2017[29]. - The net assets attributable to shareholders at the end of 2018 were ¥3,470,759,871.87, a 42.62% increase from ¥2,433,632,669.19 at the end of 2017[29]. - The basic earnings per share for 2018 was ¥0.36, up 44.00% from ¥0.25 in 2017[29]. - The diluted earnings per share for 2018 was also ¥0.36, reflecting the same 44.00% increase compared to ¥0.25 in 2017[29]. - The weighted average return on equity for 2018 was 6.33%, an increase from 5.01% in 2017[29]. - The company reported a total of ¥153,030,268.19 in non-recurring gains for 2018, compared to ¥4,473,524.66 in 2017[35]. Investment and R&D - The company plans to invest heavily in drug research and development, with increasing financial commitments each year, reflecting a focus on innovation despite regulatory uncertainties[5]. - The company has invested in R&D, establishing a multifunctional technology incubation platform for new drug development and collaborating with universities to enhance innovation[56]. - R&D investment amounted to ¥203,565,812.99, a 64.56% increase from the previous year, representing 2.73% of operating revenue[91]. - The company conducted 166 R&D projects in 2018, with key projects including the development of various pharmaceutical products expected to receive production approvals between 2019 and 2021[87]. - The company has commenced consistency evaluation for 32 products and 41 varieties, with 18 products completing preliminary stability tests[63]. Market and Competitive Position - The pharmaceutical market in China is expected to grow steadily due to rising income levels, expanded healthcare coverage, and an aging population[52]. - The company has a significant competitive advantage in the raw material drug sector, being one of the largest producers in China and a major global supplier[56]. - The company holds a leading market share in several products, including over 70% in phosphomycin sodium in China and is a key supplier of vitamin C globally[56]. - The company emphasizes the importance of understanding market competition dynamics, particularly with changes in the national essential drug list[5]. Strategic Direction and Shareholder Returns - The company does not plan to distribute cash dividends or issue bonus shares, indicating a strategy focused on reinvestment rather than shareholder returns[10]. - The change in the controlling shareholder to Liaoning Fangda Group poses potential shifts in strategic direction and operational focus for the company[27]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[121]. - The company has not reported any significant environmental incidents or other major issues during the reporting period[185]. Environmental Compliance and Initiatives - The company is committed to improving its environmental performance and compliance with regulatory standards[168]. - The company’s wastewater emissions were within the permissible limits, with COD at 303.39 kg and ammonia nitrogen at 2.85 kg[160]. - The company achieved a COD level of 60 mg/L and ammonia nitrogen level of 1.8 mg/L in wastewater, which is significantly lower than the permissible limits of 300 mg/L and 30 mg/L respectively[166]. - The company has implemented a comprehensive air pollution control strategy, including tail gas treatment systems for various production processes[175]. - The company has established a comprehensive emergency management system, conducting regular drills and training to enhance the effectiveness of its environmental emergency response plans[181]. Operational Efficiency and Cost Management - The company initiated cost reduction and efficiency enhancement measures in July 2018, covering the entire supply chain from procurement to sales[63]. - The company is focusing on cost reduction and efficiency improvement across the entire supply chain, including procurement, production, and sales[111]. - Sales expenses increased by 71.03% to ¥1,918,288,285.92, primarily due to significant growth in sales promotion investments[86]. - R&D expenses surged by 150.91% to ¥144,670,294.89, mainly due to substantial investments in consistency evaluations[86]. Shareholder Structure and Changes - The company issued 94,931,013 new shares in May 2018, increasing total shares to 569,586,081[191]. - Liaoning Fangda Group Industrial Co., Ltd. holds 26.02% of the shares, totaling 148,222,473 shares, with an increase of 148,222,473 shares during the period[200]. - The total number of shareholders holding more than 5% of the shares includes three major entities, with the largest being Liaoning Fangda Group[200]. - The company has a total of 28,446 shareholders at the end of the reporting period[199].

Financial Performance - Operating revenue for the current period was CNY 1,868,719,825.00, representing a 31.07% increase year-on-year[8] - Net profit attributable to shareholders was CNY 40,325,238.02, a slight increase of 0.40% year-on-year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 20.08% to CNY 29,744,343.10 compared to the same period last year[8] - Net profit increased by 92.77% to CNY 1,614.36 million, attributed to higher revenue and gross profit[6] - Operating profit rose by 76.94% to CNY 170.81 million, supported by increased revenue and gross margin[6] Assets and Liabilities - Total assets increased by 12.77% to CNY 11,945,468,151.66 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 40.47% to CNY 3,418,441,529.09 compared to the end of the previous year[8] - Accounts receivable increased by 39.47% to CNY 1,977.16 million due to higher sales[6] - Other non-current assets increased by 70.02% to CNY 355.59 million, driven by prepayments for the raw material relocation project[6] - Long-term borrowings decreased by 63.83% to CNY 85 million due to repayment of bank loans[6] Cash Flow - Net cash flow from operating activities increased by 113.75% to CNY 203,938,043.53[8] - Cash received from sales increased by 43.43% to CNY 5,246.35 million, primarily due to higher sales revenue[20] - The company completed a targeted issuance, resulting in a 7,657.37% increase in cash received from investment to CNY 825.77 million[20] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,307[12] Research and Development - Research and development expenses rose by 46.94% to CNY 38.38 million, reflecting increased investment in R&D[6] Other Income - The company reported non-recurring gains of CNY 21,357,912.53 for the year-to-date period[9] - The company reported a 364.50% increase in other comprehensive income to CNY 1.17 million, resulting from foreign currency translation adjustments[6] Earnings Per Share - Basic earnings per share decreased by 16.71% to CNY 0.0708[8] - Weighted average return on equity was 1.64%, down by 2.87% year-on-year[8]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 3,748,509,839.68, representing a 35.54% increase compared to CNY 2,765,581,638.78 in the same period last year[19]. - The net profit attributable to shareholders was CNY 116,387,167.92, a significant increase of 193.21% from CNY 39,694,718.96 year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 105,610,150.33, up 223.10% from CNY 32,686,364.24 in the previous year[19]. - The basic earnings per share rose to CNY 0.230, reflecting a 187.50% increase compared to CNY 0.08 in the same period last year[19]. - The company reported a total profit of CNY 127,748,645.93 for the first half of 2018, compared to CNY 48,473,345.91 in the same period of 2017, representing an increase of about 163.5%[152]. - The total comprehensive income for the first half of 2018 was CNY 120,137,477.92, compared to CNY 42,392,836.71 in the previous year, indicating an increase of about 183.5%[153]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 11,525,982,882.13, an increase of 8.81% from CNY 10,593,040,939.26 at the end of the previous year[19]. - The net assets attributable to shareholders increased to CNY 3,376,988,858.04, marking a 38.76% rise from CNY 2,433,632,669.19 at the end of the previous year[19]. - The company's total assets at the end of the reporting period were ¥11,525,000,000, with cash and cash equivalents amounting to ¥1,826,603,859.20, representing 15.85% of total assets[60]. - Short-term borrowings amounted to ¥3,380,568,829.50, representing 29.33% of total liabilities, a slight decrease from the previous year[60]. - Total liabilities decreased slightly to CNY 8.03 billion from CNY 8.05 billion, indicating a reduction of approximately 0.3%[144]. Cash Flow - The company reported a net cash flow from operating activities of CNY -216,909,306.67, which is a 7.25% decline compared to CNY -202,246,647.19 in the same period last year[19]. - Cash inflow from operating activities totaled CNY 3,290,590,906.44, compared to CNY 2,399,469,524.54 in the previous year, showing an increase of about 37.2%[159]. - The net cash flow from financing activities was 552,122,132.21 CNY, compared to 198,986,368.82 CNY in the previous period, showing improved financial management[160]. - The total cash inflow from financing activities reached 3,893,951,302.27 CNY, significantly up from 1,967,880,836.62 CNY in the prior period, reflecting a strong financing effort[160]. Business Segments - The company operates in four main business segments: chemical pharmaceuticals, pharmaceutical commerce, pharmaceutical engineering, and biopharmaceuticals, with over 400 products including vitamin series and anti-infection drugs[27]. - The raw material drug segment generated revenue of ¥836.20 million, up 24.32% from ¥672.61 million, accounting for 22.31% of total revenue[47]. - The formulation segment achieved revenue of ¥1.46 billion, a growth of 44.36% from ¥1.01 billion, maintaining a stable revenue share of 38.92%[47]. - The pharmaceutical commercial segment's revenue rose to ¥1.39 billion, an increase of 48.78% from ¥935.30 million, with its revenue share increasing from 35.29% to 37.12%[47]. Research and Development - Research and development expenses increased by 53.39% to ¥729.99 million, compared to ¥475.91 million in the previous year[53]. - As of June 30, 2018, the company has 15 drugs in the registration process, including Enfuvirtide and Levetiracetam, with several at the clinical approval stage[34]. - The company has also registered multiple in vitro diagnostic reagents, including tests for tuberculosis and HPV, enhancing its product portfolio in the diagnostics market[35]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[101]. - The company reported a total wastewater discharge of 1,813 tons, with COD levels at 97.98 mg/L, exceeding the standard of 300 mg/L[101]. - The company has implemented measures to ensure compliance with environmental standards and reduce emissions[101]. - The wastewater treatment facility at the Tiexi plant has a processing capacity of 30,000 tons of wastewater per day[104]. - The company has implemented comprehensive pollution control measures across its four production sites[104]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 30,449[127]. - The largest shareholder, Liaoning Fangda Group Industrial Co., Ltd., holds 23.44% of shares, totaling 133,508,612 shares[127]. - The second-largest shareholder, Northeast Pharmaceutical Group Co., Ltd., holds 17.54% of shares, totaling 99,912,027 shares[127]. Corporate Governance - The company has not engaged in any related party transactions during the reporting period[85]. - The company has not reported any non-operating fund occupation by its controlling shareholder[91]. - The company has not implemented any employee incentive plans during the reporting period[84]. - The company has not faced any penalties or rectification issues during the reporting period[82].

东北制药集团股份有限公司 2018 年第一季度报告正文 证券代码：000597 证券简称：东北制药 公告编号：2018-024 东北制药集团股份有限公司 2018 年第一季度报告正文 1 东北制药集团股份有限公司 2018 年第一季度报告正文 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。 公司负责人魏海军、主管会计工作负责人张正伟及会计机构负责人(会计主 管人员)夏田声明：保证季度报告中财务报表的真实、准确、完整。 2 东北制药集团股份有限公司 2018 年第一季度报告正文 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 1,978,800,007.64 | 1,450,839,471.51 | 36.39% | | 归属于上市公司股东的净利润（元） | 52,224,799.69 | 10,875,440.21 | 380.21% | | 归属于上 ...

Financial Performance - The company's operating revenue for 2017 was CNY 5,676,351,554.60, representing a 17.90% increase compared to CNY 4,814,401,659.98 in 2016[18]. - The net profit attributable to shareholders of the listed company reached CNY 118,995,323.60, a significant increase of 400.23% from CNY 23,788,059.95 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 114,521,798.94, marking a 1,121.65% increase from a loss of CNY 11,209,454.19 in 2016[18]. - The basic earnings per share rose to CNY 0.250, up 400.00% from CNY 0.050 in 2016[18]. - The total operating revenue for the year 2017 reached ¥5,676,351,554.60, representing a year-on-year increase of 17.90% compared to ¥4,814,401,659.98 in 2016[44]. - The total operating revenue for the pharmaceutical manufacturing segment reached ¥3,503,978,297.08, representing a year-on-year increase of 22.73%[46]. - The gross profit margin for the pharmaceutical manufacturing segment was 58.15%, a decrease of 4.35% compared to the previous year[46]. - The total operating revenue from domestic sales was ¥4,354,481,331.43, reflecting a year-on-year increase of 38.02%[46]. - The total revenue from exports was ¥1,177,411,967.35, showing a significant year-on-year growth of 57.97%[46]. Cash Flow and Assets - The company reported a negative net cash flow from operating activities of CNY 301,199,612.07, a decline of 178.33% compared to a positive cash flow of CNY 384,514,553.13 in 2016[18]. - Operating cash inflow totaled CNY 5,315,755,508.50 in 2017, a 16.00% increase from CNY 4,582,585,930.26 in 2016[56]. - The total assets at the end of 2017 were CNY 10,593,040,939.26, an increase of 8.20% from CNY 9,789,980,904.20 at the end of 2016[18]. - The net assets attributable to shareholders of the listed company increased by 5.15% to CNY 2,433,632,669.19 from CNY 2,314,478,440.16 in 2016[18]. - The company's cash and cash equivalents decreased to CNY 1,709,839,249.84 from CNY 1,773,448,064.16, a decline of about 3.6%[196]. Research and Development - The company plans to increase investment in drug research and development, which may lead to higher costs and potential risks associated with regulatory changes[4]. - The company has reported a total of 200+ R&D projects, with key projects including the development of drugs for postpartum hemorrhage and male premature ejaculation, expected to receive production approvals between 2019 and 2021[53]. - The company invested CNY 123,699,634.24 in R&D in 2017, a 57.19% increase from CNY 78,692,266.08 in 2016[54]. - The number of R&D personnel increased to 886 in 2017, up 2.55% from 864 in 2016, but the proportion of R&D personnel to total staff decreased to 9.96%[54]. - The company has invested in R&D, establishing a new drug pilot production base to accelerate the development of new products and technologies[30]. Market Position and Strategy - The company has maintained a leading position in the domestic raw material drug market, with over 70% market share in phosphomycin sodium[30]. - The marketing strategy has shifted towards a customer-centric approach, significantly improving sales performance in both raw materials and formulations[36]. - The company aims to expand its formulation segment and enhance market coverage, while the raw material drug segment will focus on global customers and strategic partnerships[71]. - The company is focusing on market-oriented strategies to create new growth points across its subsidiaries[71]. - The company has established a comprehensive platform structure to support its strategic goals, enhancing operational efficiency and market responsiveness[35]. Environmental and Social Responsibility - The company has established a hazardous waste storage facility of 3000 m² and a waste liquid storage pool with a capacity of 4000 m³ at the Xihe plant for hazardous waste generated during production[120]. - The company has received multiple environmental impact assessment approvals in 2017, including for the construction of a smart green international factory for Vitamin C and other projects[120]. - The company has implemented an environmental monitoring system, ensuring no exceedance in wastewater, air, and noise emissions[122]. - The company has conducted emergency response drills for environmental risks, enhancing its emergency response capabilities[121]. - The company has committed to maintaining accurate and complete environmental monitoring data and publicly disclosing results[123]. Corporate Governance - The company has a diverse management background, with key figures holding advanced degrees and extensive experience in the pharmaceutical industry[144]. - The independent directors include professionals with significant academic and industry experience, enhancing corporate governance[145]. - The management team is focused on strategic growth and operational efficiency, leveraging their extensive industry experience[144]. - The company has a structured approach to determining executive compensation based on performance evaluations and roles[152]. - The audit report issued by Ruihua Certified Public Accountants confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2017[177]. Shareholder Information - The largest shareholder, Northeast Pharmaceutical Group Co., Ltd., holds 21.05% of the shares, totaling 99,912,027 shares, with a decrease of 2,121,360 shares during the reporting period[134]. - The total number of ordinary shareholders at the end of the reporting period is 34,225, down from 34,733 at the end of the previous month[133]. - The company has not made any cash dividend distribution plans in the past three years, with a net profit of 118,995,323.60 yuan in 2017 but no dividends declared[77][78]. - The company did not conduct any repurchase transactions during the reporting period[135]. - The company has not reported any changes in the equity situation of its controlling shareholder during the reporting period[136].

Financial Performance - Net profit attributable to shareholders surged by 1,269.56% to CNY 40,166,219.71 for the reporting period [8]. - Operating revenue rose by 7.14% to CNY 1,425,755,444.85 compared to the same period last year [8]. - Basic earnings per share increased by 700.00% to CNY 0.08 for the reporting period [8]. - The company reported a net profit of CNY 79,860,938.67 for the year-to-date, reflecting a 1,213.92% increase compared to the same period last year [8]. - The net profit after deducting non-recurring gains and losses was CNY 36,462,110.45, a 542.56% increase year-on-year [8]. - The net profit for the period was 95.15 million, an increase of 353.86% compared to the previous period, driven by increased revenue and gross profit [15]. Cash Flow and Assets - The net cash flow from operating activities showed a significant decline of 10,761.24% to -CNY 106,837,076.87 year-to-date [8]. - Cash received from sales of goods and services during the period was 3,657.79 million, an increase of 38.09% compared to the previous period, mainly due to increased sales [15]. - Cash paid for purchasing goods and services during the period was 2,524.62 million, an increase of 59.74% compared to the previous period, primarily due to increased sales and rising raw material costs [15]. - The balance of undistributed profits at the end of the period was 40.01 million, an increase of 202.21% compared to the beginning of the year, reflecting a significant increase in the company's profitability [15]. Shareholder Information - The total number of shareholders at the end of the reporting period was 36,553 [11]. - The largest shareholder, Northeast Pharmaceutical Group Co., Ltd., holds 21.05% of the shares [11]. - Cash received from minority shareholders for capital increase was 10.65 million, an increase of 77.42% compared to the previous period, indicating more capital inflow from minority shareholders [21]. Asset Changes - Total assets increased by 5.13% to CNY 10,291,946,867.33 compared to the end of the previous year [8]. - Accounts receivable at the end of the period amounted to 1,451.01 million, an increase of 34.54% compared to the beginning of the year, primarily due to increased sales [15]. - The balance of construction in progress at the end of the period was 630.07 million, an increase of 52.87% compared to the beginning of the year, mainly due to the implementation of the second phase of the relocation project [15]. - The balance of other non-current assets at the end of the period was 162.59 million, an increase of 51.98% compared to the beginning of the year, mainly due to increased engineering prepayments [15]. Investment and Returns - The weighted average return on equity was 1.69%, up from 1.57% at the end of the previous year [8]. - Investment income for the period was 8.13 million, an increase of 1,440.49% compared to the previous period, mainly due to increased income from matured financial products [15]. - The company has not engaged in any securities or derivative investments during the reporting period [23][24].