Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15%[14]. - The net profit attributable to shareholders was RMB 300 million, an increase of 20% compared to the previous year[14]. - The company's operating revenue for 2021 was ¥702,518,674.54, representing a 176.55% increase compared to ¥254,026,717.66 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥3,093,411.14, a decrease of 73.81% from ¥11,811,617.50 in 2020[20]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion yuan, representing a year-over-year growth of 20%[145]. - The company provided a revenue guidance of 1.8 billion yuan for the next fiscal year, which would represent a growth of 20%[132]. - The gross margin improved to 45%, up from 40% in the previous year, due to cost optimization strategies[132]. - The company reported a net profit of 3.0934 million yuan in 2021, a decrease of 73.81% compared to 11.8116 million yuan in 2020[54]. Research and Development - The company plans to invest RMB 100 million in R&D for new drug development in 2022, focusing on innovative therapies[14]. - The company has established a research and development team of approximately 60 people, with R&D investment accounting for over 10% of sales revenue[43]. - The company has initiated several R&D projects, including the submission of an ANDA application for a cardiovascular drug injection, which is expected to enhance its competitive edge[79]. - R&D investment increased by 20.49% to ¥24,950,735.61 in 2021, while the proportion of R&D investment to operating income decreased to 3.55% from 8.15% in 2020[80]. - The company is actively developing high-end chemical generics and innovative drugs, but faces risks related to long development cycles and regulatory challenges[113]. Market Expansion and Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 10% market share by 2025[14]. - Future guidance estimates a revenue growth of 12% to 15% for 2022, driven by new product launches and market expansion[14]. - The company is focusing on expanding its product offerings and enhancing production capacity through ongoing R&D efforts, particularly in chemical generic and innovative drug development[79]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[145]. - Market expansion plans include entering three new provinces, projected to increase market share by 15%[132]. Product Development and Launches - The company has successfully launched two new products in Q4 2021, contributing to a 5% increase in market share[14]. - New product launches are expected to contribute an additional 300 million yuan in revenue over the next year[132]. - The company is committed to accelerating the market launch of new products, including injection products LJ201801 and LJ201802, and aims to obtain NMPA production approvals[110]. Challenges and Risks - The company faces challenges due to a 67% price reduction on related products from the implementation of centralized drug procurement, impacting revenue and sales stability[31]. - The company faces risks from policy changes, which could negatively impact sales and pricing of major products[111]. - The company’s profitability is vulnerable due to reliance on cash management investment income and government subsidies, which may decline[116]. - The company faces risks related to goodwill and asset impairment due to the increasing number of subsidiaries and potential underperformance of these subsidiaries, which could adversely affect future net profits[117]. Corporate Governance and Management - The company has established a robust investor relations management system to ensure timely and accurate information disclosure to investors[124]. - The company has a complete and independent financial management system, with no interference from the controlling shareholder in financial decisions[127]. - The board of directors held a total of 7 meetings during the reporting period, with all resolutions passed unanimously[149]. - The company has established a talent cultivation system, including the "Dragon Plan" for nurturing backup talents, aimed at enhancing management and work skills[157]. Compliance and Internal Controls - The company has maintained compliance with national laws and regulations, with no major violations reported in the last three years[169]. - The internal control evaluation report indicates that all evaluated units accounted for 100% of the company's total assets and revenue[163]. - The company has implemented a comprehensive internal control system to protect the rights of shareholders and creditors[169]. - There were no significant internal control deficiencies reported during the fiscal year[162]. Employee and Social Responsibility - Employees are provided with five types of social insurance and housing fund as per national regulations[169]. - The company actively engages in social responsibility initiatives, including donations to disaster areas, with a market value of CNY 385,800 for donated medicines[171]. - The company has established sports facilities, such as a basketball court, to enhance employees' recreational activities[169]. Future Commitments and Shareholder Relations - The company has committed to ensuring compliance with stock purchase plans by newly appointed directors and senior management[182]. - The company will strictly fulfill its commitments made in the IPO prospectus, and if any commitments are not fulfilled, it will take measures such as public explanation and compensation to investors[180]. - The company will implement stock price stabilization measures if its stock price closes below the audited net asset value per share for 20 consecutive trading days[181].

Revenue and Profitability - The company's revenue for the third quarter reached ¥196,270,919, representing a 207.25% increase year-over-year[3] - Net profit attributable to shareholders was ¥1,699,775.47, a decrease of 56.32% compared to the same period last year[3] - The net profit after deducting non-recurring gains and losses was -¥835,789.50, reflecting a decline of 368.07% year-over-year[3] - The company's basic earnings per share were ¥0.0042, down 56.25% compared to the same period last year[3] - The net profit for the period was impacted by a credit impairment loss of CNY 4,555,612.37, compared to a gain of CNY 316,283.12 in the previous period[20] - The net profit for the third quarter of 2021 was CNY 3,269,778.96, a significant recovery from a net loss of CNY -3,225,437.92 in the same period last year[21] - The total comprehensive income attributable to the parent company was CNY 6,572,687.28, compared to CNY 2,284,709.88 in the previous year[22] - The company reported a total revenue of CNY 2,475,384.25 in operating profit, a turnaround from a loss of CNY -1,581,423.23 in the same quarter last year[21] - The basic and diluted earnings per share were both CNY 0.0164, compared to CNY 0.0057 in the previous year[22] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥1,045,633,281.48, an increase of 24.22% from the end of the previous year[3] - The total assets of the company increased to CNY 1,045,633,281.48 from CNY 841,755,807.01, reflecting a growth of about 24.2%[20] - The total liabilities rose to CNY 324,268,954.99 from CNY 137,049,500.13, indicating an increase of approximately 136.5%[19] - Total liabilities reached approximately 137.05 million, with current liabilities at 100.28 million and non-current liabilities at 36.77 million[30] - Owner's equity totaled approximately 704.71 million, with 636.05 million attributable to the parent company[30] Cash Flow and Financial Activities - The company reported a net cash flow from operating activities of -¥17,984,576.38, a significant decline of 675.24% year-to-date[3] - The net cash flow from operating activities decreased significantly to -CNY 17.98 million, a decline of 675.24% year-on-year[9] - The company experienced a 31.23% decrease in net cash flow from financing activities, amounting to CNY 21.40 million[9] - The cash flow from investment activities showed a net outflow of CNY -33,938,504.58, improving from CNY -53,007,915.95 in the previous year[25] - The company recorded a total operating cash outflow of CNY 558,243,219.88, compared to CNY 202,680,134.11 in the previous year[25] Accounts Receivable and Inventory - Accounts receivable increased by 163.66% to ¥115,797,092.54 due to increased sales activities[8] - Inventory rose by 151.54% to ¥137,521,413.85, attributed to increased stock levels at the subsidiary[8] - Accounts receivable surged to CNY 115,797,092.54, up from CNY 43,919,037.39, marking an increase of around 163.5%[18] - Inventory levels rose significantly to CNY 137,521,413.85 from CNY 54,671,128.80, which is an increase of approximately 151.1%[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,866[11] - The largest shareholder, Kunming Qunxing Investment Co., Ltd., holds 41.38% of the shares, totaling 165,723,830 shares[11] Legal and Compliance Issues - The company is involved in a legal dispute regarding the validity of a share transfer contract, which may impact its operations[13] - The report for the third quarter of 2021 was not audited, indicating potential limitations in the reliability of the financial data presented[32] Research and Development - Development expenditures increased by 33.87% to ¥19,383,786.74, driven by the progress of cardiovascular generic drug LJ201801[8] - Research and development expenses decreased by 29.43% to CNY 11.55 million, indicating reduced spending on new drug development[9] Other Financial Metrics - The company confirmed a significant increase in accounts payable, which rose by 768.92% to CNY 132.75 million[9] - The company recognized a right-of-use asset and lease liability due to the new leasing standards, impacting the financial statements[31] - The company has a deferred income tax asset of approximately 7.30 million, which may provide future tax benefits[29] - The company maintained a stable capital reserve of approximately 112.77 million, reflecting consistent financial management practices[30]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 397,538,178.27, representing a 295.55% increase compared to CNY 100,503,822.57 in the same period last year[15]. - The net profit attributable to shareholders was CNY 4,872,911.81, a significant turnaround from a loss of CNY 1,606,543.95 in the previous year, marking a 403.32% increase[15]. - The net profit after deducting non-recurring gains and losses was CNY 554,453.19, compared to a loss of CNY 6,375,881.18 in the same period last year, reflecting an increase of 108.70%[15]. - The basic earnings per share rose to CNY 0.0122 from a loss of CNY 0.0040, indicating a 405.00% improvement[15]. - The company reported a total non-operating income of CNY 4,318,458.62, which includes government subsidies of CNY 1,458,122.86 and investment income of CNY 3,937,797.73[19]. - The company achieved a recovery in drug production and sales, driven by increased hospital admissions and government healthcare investments, resulting in a significant profit contribution[33]. - The company’s total profit for the first half of 2021 was CNY 10,192,195.32, an increase of 70.5% from CNY 5,947,281.15 in the first half of 2020[155]. - The comprehensive income for the first half of 2021 was CNY 10,067,977.73, compared to a loss of CNY 1,606,543.95 in the same period of 2020, indicating a turnaround in performance[164]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,030,885,009.64, up 22.47% from CNY 841,755,807.01 at the end of the previous year[15]. - The net assets attributable to shareholders increased slightly by 0.77%, reaching CNY 640,926,611.54 compared to CNY 636,053,699.73 at the end of the previous year[15]. - The company's accounts receivable rose to CNY 125,185,978.31, a 185.04% increase from CNY 43,919,037.39, driven by increased sales activities from the new subsidiary[45]. - The inventory level increased to CNY 131,684,006.41, reflecting a 140.87% rise from CNY 54,671,128.80, also due to the operations of the new subsidiary[45]. - Total liabilities reached CNY 310,440,186.58, compared to CNY 137,049,500.13 at the end of 2020, indicating a growth of approximately 126.5%[144]. - The company's equity attributable to shareholders was CNY 640,926,611.54, slightly up from CNY 636,053,699.73[144]. Cash Flow - The company reported a net cash flow from operating activities of -CNY 25,475,931.67, a decline of 1,435.59% from -CNY 1,659,028.12 in the same period last year[15]. - The net cash flow from operating activities for the first half of 2021 was ¥14,933,176.58, a significant increase from ¥2,421,027.32 in the same period of 2020, representing a growth of approximately 517.5%[163]. - The total cash inflow from investment activities was CNY 512,332,797.73, while cash outflow was CNY 533,330,154.13, resulting in a net cash outflow of CNY 20,997,356.40[160]. - The company reported cash and cash equivalents at the end of the period amounting to CNY 99,252,235.21, down from CNY 123,977,145.04 at the beginning of the period[160]. Research and Development - Research and development (R&D) investment amounted to ¥11,684,249.82, representing a 20.39% increase from ¥9,705,714.81, supporting the development of chemical generic drugs and supplementary applications[45]. - The company has a dedicated R&D team of 30 members, with R&D investment accounting for 10% of sales revenue, indicating a strong commitment to innovation and development[40]. - The company is focusing on clinical demand-driven R&D, with multiple projects in progress, including a new innovative drug for ischemic stroke that has completed preclinical studies[36]. Market and Sales Strategy - The company has implemented a "sales-driven production" model, ensuring that production aligns with sales plans and inventory levels[27]. - The company’s sales channels cover thousands of medical institutions nationwide, utilizing a deep distribution operation service and specialized academic promotion[28]. - The company has established a comprehensive marketing system, covering all 31 provinces in China, to enhance product access and sales[42]. - The flagship product, Longjin® Injection of Lampflower Extract, has a purity exceeding 98% and has been recognized as a national secondary protected traditional Chinese medicine variety[41]. Risks and Challenges - The management emphasized the uncertainty in achieving future financial targets due to market conditions and operational efforts[3]. - The company faced risks from industry policy changes, particularly in drug sales and industrial hemp regulations, which could adversely affect operations[70]. - The company is monitoring national policies and industry trends to mitigate risks and ensure sustainable development[70]. - The company faces management risks due to rapid business expansion, which may lead to challenges in resource integration, product development, and quality management[72]. Corporate Governance and Structure - The financial report for the first half of 2021 was not audited[139]. - The actual controller of the company is Fan Xian'e, with Kunming Qunxing Investment Co., Ltd. as the ultimate parent company[184]. - The company has not reported any significant environmental issues or administrative penalties during the reporting period[87]. - The company has not reported any changes in accounting policies or prior period error corrections for this period[174].

Financial Performance - The company's operating revenue for Q1 2021 was ¥206,120,330.21, representing a 398.23% increase compared to ¥41,370,743.10 in the same period last year[7] - Net profit attributable to shareholders was ¥2,636,189.61, a 162.93% increase from a loss of ¥4,189,298.20 in the previous year[7] - The net profit after deducting non-recurring gains and losses was ¥206,069.19, improving by 103.38% from a loss of ¥6,104,842.12[7] - The basic earnings per share rose to ¥0.0066, a 162.69% improvement from a loss of ¥0.0105 per share in the same period last year[7] - Operating revenue surged by 398.23% to ¥206,120,330.21, with a year-on-year growth of 24% attributed to enhanced channel development and increased product sales.[15] - Operating profit for the quarter was CNY 5,488,722.17, compared to CNY 1,151,407.84 in the same period last year[41] - Net profit for the quarter reached CNY 5,664,525.34, a significant recovery from a net loss of CNY 201,504.74 in the previous year[41] - The company reported a total comprehensive income of CNY 5,664,525.34, compared to a loss of CNY 201,504.74 in the same period last year[42] Assets and Liabilities - The company's total assets increased by 18.05% to ¥993,722,701.01 from ¥841,755,807.01 at the end of the previous year[7] - Current liabilities surged to CNY 235,388,619.99, up from CNY 100,283,777.44, representing an increase of about 134%[29] - The company's total liabilities reached CNY 274,420,476.31, up from CNY 137,049,500.13, indicating a growth of approximately 100%[29] - The total owner's equity rose to CNY 719,302,224.70 from CNY 704,706,306.88, reflecting an increase of about 2%[30] - The company reported a total of CNY 361,819,950.99 in current assets, including cash and cash equivalents of CNY 53,209,609.39[54] - Non-current assets were valued at CNY 405,910,422.30, with fixed assets contributing CNY 189,297,529.32[55] Cash Flow - The net cash flow from operating activities was -¥31,810,151.06, a decline of 209.32% compared to -¥10,274,152.98 in the same period last year[7] - The net cash flow from investing activities improved by 124.69% to ¥25,753,463.47, due to changes in the purchase of financial products.[16] - Cash inflow from operating activities totaled CNY 151,681,265.25, significantly up from CNY 49,709,367.63 in the previous period[44] - Cash outflow from operating activities amounted to CNY 183,491,416.31, compared to CNY 59,983,520.61 in the prior period, resulting in a net cash flow from operating activities of -CNY 31,810,151.06[45] - The net cash flow from investment activities was CNY 25,753,463.47, a recovery from -CNY 104,301,239.14 in the previous period[46] - The ending balance of cash and cash equivalents stood at CNY 131,569,109.02, compared to CNY 90,903,378.34 in the prior period[46] Shareholder Information - The top shareholder, Kunming Qunxing Investment Co., Ltd., holds 41.38% of the shares, totaling 165,723,830 shares[11] - There were no repurchase transactions conducted by the top 10 shareholders during the reporting period[12] Inventory and Receivables - Accounts receivable increased by 183.84% to ¥124,661,545.64 due to increased sales by the subsidiary Yunnan Longjin Pharmaceutical Co., Ltd.[15] - Inventory rose by 119.68% to ¥120,101,099.81 as a result of increased stock by the subsidiary Yunnan Longjin Pharmaceutical Co., Ltd.[15] Expenses - Operating costs skyrocketed by 2404.95% to ¥150,973,564.57, primarily due to increased costs from the subsidiary Yunnan Longjin Pharmaceutical Co., Ltd.[15] - Sales expenses increased by 34.53% to ¥40,125,797.76, driven by higher marketing and promotion costs alongside increased revenue.[15] - Research and development expenses amounted to CNY 2,173,595.90, an increase from CNY 1,626,097.75 in the previous period[40] Other Financial Metrics - The weighted average return on net assets was 0.41%, up from -0.67% in the previous year[7] - The company reported a credit impairment loss increase of 589.37% to -¥2,536,290.46, linked to a rise in accounts receivable.[16] - The company incurred a tax expense of CNY -179,349.76, compared to a tax expense of CNY 320,977.03 in the previous year[41] Audit and Compliance - The company has not undergone an audit for the Q1 2021 report, which may affect the reliability of the financial data presented[56] - The adjustment for the new leasing standards was not applicable for the company in the current reporting period[56]

Financial Performance - The company's operating revenue for 2020 was ¥254,026,717.66, a decrease of 7.72% compared to ¥275,292,322.31 in 2019[16] - The net profit attributable to shareholders in 2020 was ¥11,811,617.50, representing a significant increase of 151.12% from a loss of ¥23,107,439.88 in 2019[16] - The net cash flow from operating activities was negative at ¥6,776,928.51, a decline of 267.61% compared to a positive cash flow of ¥4,043,279.31 in 2019[16] - The basic earnings per share for 2020 was ¥0.0295, a turnaround from a loss of ¥0.0577 per share in 2019, marking an increase of 151.18%[16] - Total assets at the end of 2020 amounted to ¥841,755,807.01, reflecting a growth of 4.32% from ¥806,891,975.76 at the end of 2019[16] - The net assets attributable to shareholders increased by 1.89% to ¥636,053,699.73 at the end of 2020, compared to ¥624,242,082.23 at the end of 2019[16] - The company reported a weighted average return on equity of 1.87% in 2020, an improvement from -3.63% in 2019[16] - The company's revenue after deducting other business income was ¥253,710,927.66 in 2020, compared to ¥274,025,812.72 in 2019[16] Operational Stability - The company did not change its main business since its listing, indicating stability in its operational focus[14] - The company has not reported any changes in its controlling shareholder since its establishment, ensuring continuity in governance[14] Quarterly Performance - In 2020, the company's total revenue for the four quarters was approximately CNY 254.03 million, with a significant increase in Q4 revenue to CNY 89.64 million, up from CNY 41.37 million in Q1[20] - The net profit attributable to shareholders turned from a loss of CNY 4.19 million in Q1 to a profit of CNY 9.53 million in Q4, indicating a recovery in profitability[20] - The net cash flow from operating activities showed fluctuations, with a negative cash flow of CNY 10.27 million in Q1 and a positive cash flow of CNY 8.62 million in Q2[20] Product and Market Performance - The company's main product, Longjin® injection of Ligusticum chuanxiong, is included in the national medical insurance directory, contributing significantly to revenue and profit[25][30] - The company faced a 13.8% year-on-year decline in hospital visits from January to October 2020, impacting overall sales performance[29] - The company successfully regained procurement rights in 27 provinces and cities, with over 500 hospitals restored for distribution during the reporting period[30] - The company implemented cost-reduction strategies, resulting in a decrease in management expenses compared to the previous year[30] - Non-recurring gains included government subsidies amounting to CNY 11.44 million, which positively impacted the financial results[21] Industry Context - The overall pharmaceutical market faced challenges, with a 6% decrease in drug procurement expenses nationwide, highlighting the competitive environment[29] - The pharmaceutical manufacturing industry in China saw a 12.9% year-on-year growth in main business revenue and a 12.7% increase in operating profit in 2020[31] - Sales of traditional Chinese medicine (TCM) in key public hospitals in major cities reached approximately 30 billion yuan, reflecting a 12.48% decline year-on-year, with the first quarter experiencing the largest drop of 29.73%[32] Research and Development - The company holds over 30 invention patents and has been involved in significant national and provincial projects related to new drug creation and TCM standardization[34] - The company's R&D investment has consistently accounted for 10% of sales revenue, with R&D personnel making up about 15% of the total workforce[38] - The company launched 4 new invention patents during the reporting period, and the innovative drug research and development progressed as planned, with preclinical studies for ZKLJ02 completed[46] Subsidiary Developments - The company established a new subsidiary, Yunnan Longjin Pharmaceutical Sales Co., Ltd., in September 2020, impacting the consolidated financial statements[65] - The company’s subsidiary, Yunnan Longjin Pharmaceutical Sales Co., Ltd., obtained a drug business license, marking entry into the regional pharmaceutical and medical device wholesale market[47] - The company reported a net profit of 15,669.65 CNY from its newly established subsidiary Yunnan Longjin Pharmaceutical Sales Co., which was set up in September 2020[94] Financial Management - The company’s cash and cash equivalents decreased by CNY 71.45 million, a decline of 36.56%, attributed to changes in the balance of financial products[50] - Accounts receivable increased by CNY 10.31 million, a rise of 30.67%, due to increased sales activities from the newly established subsidiary[51] - The total operating costs amounted to ¥51,349,241.45, an increase from ¥48,263,910.33 in the previous year[62] Future Outlook - The company plans to enhance its R&D and innovation capabilities, focusing on developing specialty chemical generic drugs for cardiovascular and metabolic diseases[98] - The company aims to leverage industrial hemp cultivation to establish a full industrial chain, enhancing its product offerings[99] - The company will adopt a dual approach of "internal growth + external expansion" to inject new vitality into its operations, including increasing R&D investment in specialty chemical generics[99] - The company expects its pharmaceutical industrial sales revenue in 2021 to remain flat compared to 2020, with new products like the injection of fibrinolytic enzyme showing slight growth[100] Shareholder and Governance - The company reported a profit distribution plan for 2020, proposing no cash dividends, no bonus shares, and no capital reserve transfer, with retained earnings to be carried forward for future distribution[115] - The company has not distributed any cash dividends in the past three years, with cash dividends amounting to CNY 0.00 for 2020, 2019, and 2018, representing 0.00% of the net profit attributable to ordinary shareholders[116] - The company has maintained compliance with all commitments made by its actual controllers and shareholders during the reporting period[121] Management and Compliance - The management team saw changes with Fan Xian'e stepping down as General Manager on December 30, 2020, and being succeeded by Fan Lijuan[181] - The company has not faced any penalties from securities regulatory authorities in the past three years[198] - The company has established a comprehensive internal control system to protect the rights of shareholders and creditors, ensuring compliance with laws and regulations[155]

昆明龙津药业股份有限公司 2020 年第三季度报告全文 昆明龙津药业股份有限公司 2020 年第三季度报告 2020-064 2020 年 10 月 1 昆明龙津药业股份有限公司 2020 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。 公司负责人樊献俄、主管会计工作负责人苏闽娟及会计机构负责人(会计主 管人员)苏闽娟声明：保证季度报告中财务报表的真实、准确、完整。 2 昆明龙津药业股份有限公司 2020 年第三季度报告全文 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 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 825,187,356.42 | 806,891,975.76 | | 2.27% | | 归属于上市公司股东的净资产（元） | 626, ...

Product Diversification and Market Presence - The company reported a significant reliance on a single product, with only Longjin® injection of Lampflower extract in production during the reporting period, indicating a risk due to limited product diversification [4]. - The company has a limited presence in the industrial hemp market, with only two provinces authorized for legal cultivation, creating uncertainty regarding future market opportunities [4]. - The company's main product, Longjin® injection of Ligusticum chuanxiong, is included in the National Basic Medical Insurance and has been recognized in local essential drug lists since 2010 [34]. - The company currently holds 10 drug production licenses, but only one product, Longjin® injection of lamp flower extract, is in production, highlighting a risk due to a lack of product diversity [81]. Financial Performance and Risks - The company's revenue for the first half of 2020 was ¥100,503,822.57, a decrease of 23.37% compared to ¥131,150,326.70 in the same period last year [26]. - The net profit attributable to shareholders was a loss of ¥1,606,543.95, representing a decline of 219.88% from a profit of ¥1,340,140.21 in the previous year [26]. - The net cash flow from operating activities improved by 66.58%, amounting to -¥1,659,028.12 compared to -¥4,963,475.28 in the same period last year [26]. - Basic and diluted earnings per share were both -¥0.0040, a decrease of 221.21% from ¥0.0033 in the previous year [26]. - The company has recognized a goodwill impairment of 24.34 million yuan and asset group impairment of 4.43 million yuan due to ongoing litigation, which could further impact financial performance if the outcome is unfavorable [12]. - The company reported non-recurring gains and losses totaling ¥4,769,337.23 during the reporting period [31]. - The company’s revenue and profit were significantly impacted by the COVID-19 pandemic, leading to a decrease in patient hospitalization rates and restrictions on medical insurance payments [53]. Research and Development - Research and development expenses for the year amounted to 29.3 million yuan, with 8.6 million yuan capitalized, representing 37.29% of the net profit impact, highlighting potential financial risks if these capitalized expenses do not yield expected economic benefits [10]. - The company is actively developing new drugs in the cardiovascular and metabolic categories, as well as specialized generic drugs, to expand its product line and enhance competitive advantage [4]. - The company is focusing on the development of new products and technologies in the cardiovascular disease sector to enhance its market position [39]. - The company has filed for production applications for two chemical generic drugs in the second half of the year, despite delays in other projects due to the pandemic [54]. Regulatory and Environmental Risks - The company is exposed to regulatory risks in the pharmaceutical industry, with increasing scrutiny and potential changes in policies affecting pricing and sales [3]. - The company emphasizes strict adherence to quality control standards in production, but faces risks from potential changes in regulatory requirements that could impact product quality [8]. - The company is subject to environmental risks due to stricter regulations, which may increase operational costs and compliance challenges [9]. - The company faces risks from strict regulatory policies in the pharmaceutical industry, which may affect product pricing and sales volume [80]. Shareholder and Investment Information - The company has not declared any cash dividends or stock bonuses, indicating a focus on reinvestment rather than shareholder returns [13]. - The company has not distributed cash dividends or bonus shares for the half-year period, indicating a focus on retaining earnings [93]. - The company has made commitments regarding the payment of social security and housing fund contributions for employees, ensuring that shareholders will bear the costs proportionally [97]. - The company will compensate for any economic losses incurred due to penalties from government authorities related to inter-company borrowing behaviors [97]. Operational Strategies - The company has implemented a "sales-driven production" model, aligning production plans with market demand and sales forecasts [35]. - The company has established a "company + base (or cooperative) + farmer" model for industrial hemp cultivation, ensuring stable raw material supply through contracts with farmers [37]. - The company is actively pursuing new product development and market expansion strategies to enhance its competitive position in the pharmaceutical sector [18]. - The company aims to stabilize its market share and explore new sales opportunities despite a declining trend in the industry [39]. Financial Management and Investments - The company reported a significant increase in investment income, rising by 421.53% to ¥3,788,660.84 from a loss of ¥1,178,319.88 in the previous year, due to increased returns from financial products [58]. - The company’s cash and cash equivalents decreased by 71.92% to ¥54,885,090.23 from ¥195,428,770.46, primarily due to changes in the balance of financial products [57]. - The company has a total of 58,716,000 CNY in entrusted financial management, with an outstanding balance of 34,916,000 CNY [119]. - The company’s retained earnings decreased to 176,255,287.09 CNY from 199,403,935.77 CNY in the previous period [169]. Corporate Governance and Compliance - The financial report was approved by the board of directors on August 24, 2020 [195]. - The financial statements comply with the requirements of the accounting standards and reflect the financial position as of June 30, 2020, and the operating results and cash flows for the first half of 2020 [200]. - The company has not identified any significant matters affecting its ability to continue as a going concern [198]. - The company has no ongoing patent infringement or intellectual property rights cases as of the date of the commitment letter [97].

Financial Performance - Operating revenue decreased by 32.09% to CNY 57,101,990.19 for the current period, and decreased by 25.22% to CNY 188,252,316.89 year-to-date[7] - Net profit attributable to shareholders decreased by 94.19% to CNY 209,066.80 for the current period, and decreased by 89.33% to CNY 1,549,207.01 year-to-date[7] - Basic earnings per share dropped by 94.44% to CNY 0.0005 for the current period, and decreased by 89.26% to CNY 0.0039 year-to-date[7] - Total operating revenue for Q3 2019 was CNY 57,101,990.19, a decrease of 32.0% compared to CNY 84,080,613.79 in the same period last year[35] - Net profit for Q3 2019 was CNY -597,735.04, compared to a net profit of CNY 3,601,262.57 in Q3 2018, indicating a significant decline[37] - The company reported a total comprehensive income of ¥729,145.60, significantly lower than ¥14,523,775.71 in the previous period[45] Assets and Liabilities - Total assets increased by 4.58% to CNY 823,588,973.70 compared to the end of the previous year[7] - The total liabilities increased to CNY 137,640,065.73 from CNY 131,616,795.52, marking a rise of about 4.06%[29] - The company's total non-current assets reached CNY 342,193,829.77, up from CNY 314,980,193.45, indicating an increase of about 8.63% year-over-year[27] - Total current assets amounted to CNY 472,569,549.40, with cash and cash equivalents at CNY 384,283,633.27[60] - The total liabilities decreased to CNY 103,312,609.31 from CNY 131,504,054.02, reflecting a reduction of 21.4%[34] - Total liabilities reached CNY 131,504,054.02, with non-current liabilities at CNY 32,181,842.92[67] Cash Flow - Net cash flow from operating activities increased by 202.12% to CNY 13,358,466.06 for the current period[7] - Cash inflow from operating activities was CNY 237,487,982.25, down from CNY 306,319,007.08 in the previous period, representing a decrease of approximately 22.4%[51] - Cash outflow for investment activities totaled CNY 73,145,043.47, significantly lower than CNY 1,011,690,434.20 in the previous period[53] - Cash inflow from financing activities was CNY 19,250,900.00, while cash outflow was CNY 12,015,000.00, resulting in a net cash flow of CNY 7,235,900.00[53] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,670[9] - The largest shareholder, Kunming Qunxing Investment Co., Ltd., holds 42.38% of the shares, totaling 169,724,647 shares[9] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[11] Research and Development - The company reported a 148.04% increase in development expenditures to ¥11,789,673.91, driven by increased R&D investments in generic drugs and re-evaluation of already listed products[14] - Research and development expenses for Q3 2019 were CNY 3,995,816.06, down 57.2% from CNY 9,336,728.52 in the same quarter last year[35] - Research and development expenses were ¥13,993,041.17, a decrease of 38.5% from ¥22,687,720.43 in the previous period[42] Inventory and Receivables - Accounts receivable decreased by 30.31% to ¥25,904,415.87 from ¥37,172,011.23, attributed to successful collection efforts during the period[14] - Inventory increased by 46.80% to ¥39,906,415.07 due to the acquisition of the aforementioned companies[14] - The company reported a rise in other receivables to CNY 19,498,870.45 from CNY 2,921,427.39, an increase of about 570.0%[26] Acquisitions and Investments - The company completed the acquisition of Nanjiang Longjin Biotechnology Co., Ltd. and Nanjiang Longjin Agricultural Technology Co., Ltd., resulting in a 60.40% increase in intangible assets to ¥42,138,570.22[14] - The company’s goodwill increased to ¥6,999,586.78 due to the acquisitions, marking a 100% increase[14] Financial Ratios - The company’s total liabilities to equity ratio stands at approximately 0.20, indicating a conservative leverage position[62]

昆明龙津药业股份有限公司 2020 年第一季度报告全文 昆明龙津药业股份有限公司 2020 年第一季度报告 2020-026 2020 年 04 月 1 昆明龙津药业股份有限公司 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。 公司负责人樊献俄、主管会计工作负责人苏闽娟及会计机构负责人(会计主 管人员)苏闽娟声明：保证季度报告中财务报表的真实、准确、完整。 2 昆明龙津药业股份有限公司 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） | 41,370,743.10 | 65,213,290.42 | -36.56% | | 归属于上市公司股东的净利润（元） | -4,189,298.20 | ...

Financial Performance - The company's operating revenue for 2019 was ¥275,292,322.31, a decrease of 18.06% compared to ¥335,984,894.90 in 2018[20]. - The net profit attributable to shareholders for 2019 was -¥23,107,439.88, representing a decline of 266.60% from ¥13,870,103.38 in 2018[20]. - The net cash flow from operating activities decreased by 87.24% to ¥4,043,279.31 in 2019, down from ¥31,698,797.10 in 2018[20]. - The basic earnings per share for 2019 was -¥0.0577, a drop of 266.76% from ¥0.0346 in 2018[20]. - The company achieved operating revenue of 275 million yuan in 2019, a decrease of 18.06% compared to the previous year, marking the first net loss of 23.11 million yuan for the company[45]. - The company reported a significant loss in net profit, indicating a challenging financial year[89]. - The company’s net profit attributable to ordinary shareholders for 2019 was reported as -¥23,107,439.88, indicating a loss[119]. R&D and Product Development - The company's R&D investment amounted to 29.3 million yuan, with a capitalization amount of 8.6171 million yuan, impacting net profit by 37.29%[7]. - The company is actively developing new drugs in cardiovascular and metabolic areas, aiming to expand its product line and enhance its competitive edge[4]. - The company has focused on enhancing its R&D capabilities for specialty chemical generic drugs and diversifying into health food and industrial hemp businesses[36]. - The company has applied for 4 invention patents during the reporting period, receiving authorization for 2[45]. - The company has submitted supplementary applications for clinical trials related to the injection of Ligusticum chuanxiong, awaiting approval from the National Medical Products Administration[45]. - The company plans to launch the injection of fibrinolytic enzyme in 2020, with national marketing and sales efforts already initiated[46]. Market and Competition - The company faces significant risks from industry policy changes, including price and quantity reductions due to stricter regulations in the pharmaceutical sector[3]. - The company is exposed to market risks due to intense competition in the pharmaceutical manufacturing and planting industries, which may lead to price declines and reduced sales volumes[5]. - The market for cardiovascular disease treatments is expected to grow significantly, driven by an aging population and increasing prevalence of risk factors[35]. - The company is expanding its market presence by entering two new provinces, aiming to increase market share by 10% in the next year[195]. Financial Management and Investments - The company has invested in low-risk bank products to improve fund utilization efficiency, but any adverse changes in its main product's performance could significantly impact overall financial results[4]. - The company received government subsidies amounting to ¥10,324,893.37 in 2019, an increase from ¥8,218,729.20 in 2018[26]. - The company recorded an investment income increase of 264.21% in 2019, amounting to an increase of 5.84 million yuan[52]. - The company has established a new wholly-owned subsidiary, Longjin Kantou, focusing on specialized chemical generic drug research and development[47]. - The company has committed to not engaging in any business that competes with its own operations, ensuring no conflicts of interest[121]. Risks and Challenges - The company has recognized a goodwill impairment of 24.3416 million yuan and an asset group impairment of 4.4262 million yuan due to a pending lawsuit, which could significantly affect future profitability[8]. - The company faces significant management risks due to rapid business expansion, which may lead to challenges in resource integration and compliance with regulations[104]. - The company is exposed to market risks from intense competition in the pharmaceutical industry, which may lead to price declines and reduced sales[105]. - The company has a potential risk of tax incentives being reduced or eliminated, affecting its subsidiaries engaged in agricultural production[111]. - The company has recognized a goodwill impairment of 24.34 million yuan due to a lawsuit, which could negatively impact future performance if the outcome is unfavorable[112]. Corporate Governance and Compliance - The company has committed to timely fulfillment of obligations to minority shareholders[128]. - The company has confirmed that it does not have any ongoing patent infringement cases as of the date of the commitment letter[122]. - The company will bear all tax liabilities, late fees, and penalties incurred due to the withdrawal of tax benefits enjoyed by foreign investors[124]. - The company will publicly explain the reasons for any failure to fulfill commitments at shareholder meetings and designated publications[126]. - The company has maintained compliance with laws and regulations, ensuring the protection of shareholder and creditor rights[158]. Subsidiaries and Acquisitions - The company established a wholly-owned subsidiary, Yunnan Longjin Fantian Biotechnology Co., Ltd., with a registered capital of CNY 25.5 million, and has contributed CNY 13.16 million as of December 31, 2019[134]. - The company acquired a 51.09% stake in Yunnan Muya Agricultural Technology Co., Ltd. for ¥15 million, completed on June 18, 2019[66]. - The company completed the acquisition of 100% equity in Yunnan Sanqi Technology's subsidiaries, with payment ratios reaching 80% and 90% respectively by July 2, 2019[136]. - The company plans to establish a joint venture, Fujian Longjin Tang Health Industry Co., Ltd., with a registered capital of CNY 20 million, holding a 51% stake[137]. Employee and Management Structure - The total number of employees in the company is 241, with 199 in the parent company and 42 in major subsidiaries[200]. - The professional composition includes 79 production personnel, 52 sales personnel, 51 technical personnel, 16 financial personnel, and 43 administrative personnel[200]. - The total pre-tax remuneration for the board of directors and senior management during the reporting period amounts to 521.09万元[199]. - The highest remuneration for a director is 66.3万元, received by the vice chairman[198]. - The company has no stock incentive plans granted to directors and senior management during the reporting period[199].