山东金城医药集团股份有限公司 2021 年半年度报告全文 山东金城医药集团股份有限公司 2021 年半年度报告 2021 年 08 月 1 山东金城医药集团股份有限公司 2021 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 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。 公司负责人赵叶青、主管会计工作负责人孙瑞梅及会计机构负责人(会计主 管人员)贺东声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来的计划、发展战略等方面的内容，均不构成本公司 对投资者的实质承诺，投资者及相关人士均应对此保持足够的风险意识，并且 应当理解计划、预测和承诺之间的差异，注意投资风险。 | --- | |---------------------------------------------------------------------------| | | | 公司可能存在产品质量风险、行业政策以及安全环保等相关风险，具体风 | | 险详见第三节管理 ...

Financial Performance - The company's operating revenue for Q1 2021 was ¥608,977,257.17, a decrease of 6.41% compared to ¥650,685,404.33 in the same period last year[8]. - Net profit attributable to shareholders was ¥50,855,115.49, down 49.66% from ¥101,030,988.13 year-on-year[8]. - The net profit after deducting non-recurring gains and losses was ¥40,499,938.16, a decline of 59.32% from ¥99,564,127.60 in the previous year[8]. - Basic and diluted earnings per share were both ¥0.13, down 50.00% from ¥0.26 year-on-year[8]. - The weighted average return on net assets was 1.47%, a decrease of 0.98% from 2.45% in the previous year[8]. - The company reported a revenue of 608.98 million yuan, a year-on-year decrease of 6.41%[24]. - The net profit attributable to shareholders was 50.86 million yuan, down 49.66% year-on-year, primarily due to weakened demand from downstream customers in the pharmaceutical intermediate sector affected by the pandemic[24]. - The company reported a net profit of ¥584,151,634.40, up from ¥533,296,518.91, indicating a growth of approximately 9.56% in retained earnings[61]. - Total comprehensive income amounted to CNY 52,846,955.50, a decrease from CNY 101,584,922.00 in the previous period[77]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥7,144,592.39, a significant drop of 91.33% compared to ¥82,376,320.62 in the same period last year[8]. - Cash and cash equivalents increased to ¥1,079,948,808.21 from ¥1,074,969,550.07, showing a slight growth[52]. - The total cash and cash equivalents at the end of the period amounted to 851,540,955.63, down from 1,001,465,378.99 in the previous period, reflecting a decrease of approximately 14.94%[91]. - The net cash flow from operating activities was -10,352,951.45, slightly improved from -10,817,347.95 in the previous period[92]. - Cash inflows from operating activities totaled 4,821,000.56, an increase from 4,295,191.39 in the previous period[92]. - The net cash flow from financing activities was 73,393,829.77, compared to a negative cash flow of -19,585,031.96 in the previous period, indicating a significant improvement[91]. - The cash flow from financing activities showed a net inflow of 326,770,625.00, compared to 85,771,719.99 in the previous period, marking a substantial increase[95]. Assets and Liabilities - Total assets at the end of the reporting period were ¥5,056,843,328.48, an increase of 1.13% from ¥5,000,113,119.10 at the end of the previous year[8]. - Total current assets amounted to ¥2,186,571,091.82, a decrease of 1.58% from ¥2,221,848,961.83 on December 31, 2020[52]. - Total liabilities slightly increased to ¥1,535,255,546.80 from ¥1,532,815,590.71, showing a marginal rise[58]. - The total equity attributable to shareholders rose to ¥3,490,279,422.15 from ¥3,437,981,008.87, an increase of about 1.52%[61]. - Total liabilities reached CNY 203,529,431.12, with current liabilities at CNY 155,732,903.31 and non-current liabilities at CNY 47,796,527.81[103]. Expenses - Research and development expenses rose by 70.24% to RMB 40.37 million, driven by increased investment in R&D projects[21]. - Sales expenses increased by 37.70% to RMB 161.34 million, attributed to enhanced market and brand promotion efforts[21]. - Management expenses rose to CNY 10,823,033.91 from CNY 7,559,057.10 in the previous period, indicating higher administrative costs[78]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,477[12]. - The largest shareholder, Zibo Jincheng Investment Co., Ltd., held 20.13% of the shares, totaling 78,552,154 shares[13]. Market Conditions - The ongoing pandemic continues to pose significant uncertainty for the company's export business, particularly affecting sales to India[24]. - The company is closely monitoring the pandemic's developments and their impact on export operations[24]. Other Financial Metrics - The company's tax payable decreased by 69.84% to RMB 14.63 million, primarily due to a decline in VAT and corporate income tax[21]. - The company's inventory shares decreased by 45.61% to RMB 40.01 million, resulting from the cancellation of repurchased shares[21]. - The company reported a 262.41% increase in other income to RMB 14.98 million, largely due to government subsidies received[21]. - The company's investment income decreased by 133.42% to a loss of RMB 221,822.67, attributed to increased losses from external investments[21].

Financial Performance - Jincheng Pharmaceutical reported an overall decline in revenue, but its core business of pharmaceutical intermediates, active pharmaceutical ingredients, and finished formulations remained stable[5] - The company's operating revenue for 2020 was ¥2,961,935,834.22, an increase of 5.98% compared to ¥2,794,819,332.70 in 2019[26] - The net profit attributable to shareholders for 2020 was -¥488,844,750.60, a decrease of 340.47% from ¥203,285,186.73 in 2019[26] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥501,153,411.97, down 875.52% from ¥64,621,883.15 in 2019[26] - The net cash flow from operating activities for 2020 was ¥546,126,321.60, a decrease of 5.51% compared to ¥577,983,378.38 in 2019[26] - The total assets at the end of 2020 were ¥5,000,113,119.10, a decrease of 10.59% from ¥5,592,390,582.02 at the end of 2019[26] - The net assets attributable to shareholders at the end of 2020 were ¥3,437,981,008.87, down 15.41% from ¥4,064,167,519.74 at the end of 2019[26] - The company reported a significant decline in basic and diluted earnings per share, both at -¥1.26 for 2020 compared to ¥0.52 in 2019, a decrease of 342.31%[26] - The company’s weighted average return on net assets was -13.03% in 2020, down 18.50% from 5.47% in 2019[26] Impairment and Asset Management - In 2020, Jincheng Pharmaceutical's subsidiary, Jincheng Tail, experienced a significant decline in sales due to industry policies and the pandemic, leading to a substantial goodwill impairment of CNY 769.9794 million[5] - The company recorded an asset impairment provision totaling CNY 769.9794 million, impacting net profit, total assets, and net assets for 2020[7] - The company’s goodwill decreased by 741.7295 million yuan, with a year-end balance of 0, due to impairment provisions for subsidiaries[46] - The company reported no goodwill on the balance sheet due to impairment provisions made during the reporting period[106] Research and Development - Jincheng Pharmaceutical has been focusing on integrating intermediates, active pharmaceutical ingredients, and formulations to enhance its core competitiveness[7] - The company plans to accelerate product research and development and new project construction to create new economic growth points[7] - The company established the Jincheng Pharmaceutical Research Institute to unify R&D innovation platforms and enhance product development capabilities[54] - The company made significant progress in R&D, including breakthroughs in nicotine, 4AA, and cephalosporin technology, marking a new phase in the transformation of its pharmaceutical and chemical industry[55] - The company has a strong pipeline of new products, with multiple patents pending approval for innovative drug formulations and synthesis methods[62] - The company is actively pursuing technological advancements in drug development, as evidenced by its numerous patent applications in innovative synthesis methods[62] Market and Sales Performance - The company’s sales model combines commercial distribution with professional academic promotion, while its international market strategy focuses on self-export and domestic trade company support[44] - The company focused on market expansion, achieving substantial growth in the North American market for glutathione products[55] - Domestic sales reached ¥2,250,562,875.12, which is 75.98% of total sales, showing an 11.36% increase from ¥2,020,960,533.47[76] - International sales were ¥711,372,959.10, accounting for 24.02% of total sales, reflecting an 8.07% decrease from ¥773,858,799.23[76] Strategic Initiatives and Investments - The company established Shandong Jincheng Kunlun Pharmaceutical Co., Ltd. and Shandong Jincheng Pharmaceutical Research Institute Co., Ltd. to strengthen the raw material drug industry platform[39] - The company aims to create a full industry chain from pharmaceutical intermediates to raw materials and then to terminal preparations[39] - The company has committed to investing CNY 6.48 million in the 50 tons/year 7-AVCA industrialization project, which has been redirected to the glutathione project[140] - The company has reported a significant focus on expanding its product lines and enhancing production capabilities through strategic investments[126] Operational Efficiency and Management - The company implemented a comprehensive risk management system and improved internal control measures, earning recognition as a national advanced unit in internal auditing for 2017-2019[56] - The company launched the intelligent scheduling center and smart warehouse, enhancing operational efficiency in logistics and inventory management[56] - The company has effectively controlled project costs, resulting in a remaining balance of CNY 2.47 million from the AE-active ester new process industrialization project[158] Corporate Social Responsibility - The company actively participated in pandemic relief efforts, donating cash and medical supplies to affected areas, earning recognition as a "Demonstration Enterprise for Responsibility in Pandemic Response"[59] Financial Health and Liabilities - The company reported no financial liabilities at the end of the reporting period, maintaining a clean balance sheet[107] - The cash and cash equivalents decreased by ¥102,373,046.61, marking a 138.63% decline compared to the previous year[101] Future Outlook - The pharmaceutical industry in China is expected to maintain stable growth, supported by government policies, rising disposable income, and an aging population[8] - The company is committed to expanding its market presence and enhancing brand influence through various strategic initiatives[59]

山东金城医药集团股份有限公司 2020 年第三季度报告全文 山东金城医药集团股份有限公司 2020 年第三季度报告 2020 年 10 月 1 山东金城医药集团股份有限公司 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。 公司负责人赵叶青、主管会计工作负责人孙瑞梅及会计机构负责人(会计主 管人员)贺东声明：保证季度报告中财务报表的真实、准确、完整。 2 山东金城医药集团股份有限公司 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 | --- | --- | --- | --- | --- | |-----------------------------------------------------|-----------------------------------|-------------------------|--------- ...

山东金城医药集团股份有限公司 2020 年半年度报告全文 山东金城医药集团股份有限公司 2020 年半年度报告 2020 年 08 月 1 山东金城医药集团股份有限公司 2020 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 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。 公司负责人赵叶青、主管会计工作负责人孙瑞梅及会计机构负责人(会计主 管人员)贺东声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来的计划、发展战略等方面的内容，均不构成本公司 对投资者的实质承诺，投资者及相关人士均应对此保持足够的风险意识，并且 应当理解计划、预测和承诺之间的差异，注意投资风险。 | --- | |-----------------------------------------------------------------------| | | | 公司可能存在产品质量风险、产品销售价格波动的风险、安全环保等相关 | | 风险，具体风险详见第四节 ...

Financial Performance - The company's operating revenue for 2019 was ¥2,794,819,332.70, a decrease of 7.09% compared to ¥3,007,968,049.52 in 2018[22] - The net profit attributable to shareholders for 2019 was ¥203,285,186.73, down 22.96% from ¥263,863,408.96 in the previous year[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥64,621,883.15, a decline of 74.25% compared to ¥251,001,639.97 in 2018[22] - The basic earnings per share for 2019 were ¥0.52, a decrease of 22.39% from ¥0.67 in 2018[22] - The diluted earnings per share also stood at ¥0.52, down 22.39% compared to ¥0.67 in the previous year[22] - The weighted average return on equity was 5.47%, down from 6.54% in 2018[22] - The total operating revenue for 2019 was ¥2,794,819,332.70, a decrease of 7.09% compared to ¥3,007,968,049.52 in 2018[92] - The pharmaceutical manufacturing sector contributed 100% to the total revenue, with a year-on-year increase of 5.11%[92] - Domestic sales accounted for 72.31% of total revenue at ¥2,020,960,533.47, down 9.22% from the previous year[92] - The gross profit margin for the pharmaceutical manufacturing sector was 58.47%, an increase of 3.38% year-on-year[96] Cash Flow and Assets - The net cash flow from operating activities increased by 64.11% to ¥577,983,378.38 from ¥352,196,534.35 in 2018[22] - The total assets at the end of 2019 were ¥5,592,390,582.02, reflecting a growth of 5.78% from ¥5,286,594,879.00 at the end of 2018[22] - The net assets attributable to shareholders increased by 1.36% to ¥4,064,167,519.74 from ¥4,009,478,306.73 in 2018[22] - Cash and cash equivalents increased by CNY 26,702.99 million, a growth of 36.93% from the beginning of the year, primarily due to performance compensation received and increased sales collections[49] - The total cash and cash equivalents increased by 804.63% to ¥264,987,727.24[114] - The company's fixed assets amounted to ¥1,373,116,851.43, which is 24.55% of total assets[117] Research and Development - Research and development expenditure increased by 119.09% compared to the previous year, driven by new product development and consistency evaluation investments[52] - The company has been actively expanding its product line, focusing on antibiotics and specialty pharmaceuticals, with key products including cephalosporin intermediates and injectable powder preparations[39] - The company aims to enhance its R&D capabilities and has established a dedicated team for active pharmaceutical ingredients, aligning with its strategic goal of improving product quality[39] - The company implemented a three-dimensional R&D model, with R&D investment increasing by over 10% year-on-year, enhancing innovation capabilities[63] - The total number of R&D personnel increased to 467, representing 15.45% of the workforce[110] - The company's research and development expenses reached ¥263,916,394.24, an increase of 21.00% compared to the previous year[108] Market and Product Development - The company has established three major marketing platforms to enhance product marketing capabilities and achieve collaborative development, maintaining a leading market share in the pharmaceutical and biopharmaceutical sectors[64] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2021[79] - New product development includes a focus on antibiotic formulations, with three new patents filed in 2019[80] - The company plans to implement a new digital marketing strategy to increase brand awareness and customer engagement by 30% in 2020[79] - The company has introduced five new human resource management systems and initiated a talent recruitment plan, bringing in 2 PhDs and 32 Master's graduates during the reporting period[68] Acquisitions and Investments - The company completed the acquisition of 84% equity in Zhejiang Pangu Pharmaceutical Co., Ltd., which is expected to improve overall management efficiency and resource allocation[72] - The company made a significant equity investment of ¥165,000,000 in Zhejiang Pangu, acquiring a 67.35% stake[124] - The company acquired 67.35% of "Pangu Pharmaceutical" for ¥165 million, expanding its consolidation scope[102] Risks and Challenges - The company faces risks from policy changes in the pharmaceutical industry, including the impact of drug price controls and procurement policies[192] - Market risks include fluctuations in raw material prices and competition affecting drug pricing, which could impact profit margins[193] - The acquisition of 100% equity in Langyi Pharmaceutical has resulted in significant goodwill, which poses a risk of impairment if expected earnings are not realized[196] - The company is preparing for potential risks from changes in export tax rebate rates and exchange rate fluctuations by employing hedging tools and adjusting contract terms[198] Compliance and Certifications - All production facilities have passed national GMP certification, ensuring compliance with quality standards in the pharmaceutical manufacturing process[45] - The company has received the "2019 National Level Environment-Friendly Enterprise Pilot Unit" honor and all subsidiaries in the pharmaceutical and chemical sector have been recognized as secondary enterprises for standardized safety production[65] Strategic Goals - The company aims to enhance its product innovation capabilities and increase R&D investment, focusing on high-end pharmaceutical products and high-quality antibiotics[189] - In 2020, the company plans to improve its operational capabilities and risk control systems to ensure steady growth in revenue and profits[185] - The company will implement a "chain forging project" to integrate resources across R&D, marketing, and production, enhancing its competitive advantage in the pharmaceutical industry[191]

山东金城医药集团股份有限公司 2019 年第三季度报告全文 山东金城医药集团股份有限公司 2019 年第三季度报告 2019 年 10 月 1 山东金城医药集团股份有限公司 2019 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。 公司负责人赵叶青、主管会计工作负责人孙瑞梅及会计机构负责人(会计主 管人员)贺东声明：保证季度报告中财务报表的真实、准确、完整。 2 山东金城医药集团股份有限公司 2019 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 | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------|------------------------------------------------------|-- ...

山东金城医药集团股份有限公司 2019 年半年度报告全文 山东金城医药集团股份有限公司 2019 年半年度报告 2019 年 08 月 1 山东金城医药集团股份有限公司 2019 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 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。 公司负责人赵叶青、主管会计工作负责人孙瑞梅及会计机构负责人(会计主 管人员)贺东声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来的计划、发展战略等方面的内容，均不构成本公司 对投资者的实质承诺，投资者及相关人士均应对此保持足够的风险意识，并且 应当理解计划、预测和承诺之间的差异，注意投资风险。 公司可能存在产品质量风险、产品销售价格波动的风险、安全环保等相关 风险，具体风险详见第四节经营情况讨论与分析部分"公司面临的风险和应对 措施"中可能面临的主要风险。本报告中如有涉及未来的计划、发展战略等方 面的内容，均不构成本公司对投资者的实质承诺，敬请广大投资者注意投资风 ...

Financial Performance - Total operating revenue for Q1 2020 was CNY 650,685,404.33, an increase of 2.57% compared to CNY 634,385,558.13 in the same period last year[8]. - Net profit attributable to shareholders was CNY 101,030,988.13, reflecting a growth of 3.02% from CNY 98,071,895.99 year-on-year[8]. - Net profit after deducting non-recurring gains and losses reached CNY 99,564,127.60, up by 4.53% from CNY 95,248,544.54 in the previous year[8]. - Basic earnings per share increased to CNY 0.26, a rise of 4.00% compared to CNY 0.25 in the same quarter last year[8]. - The total profit for the current period is 120,290,804.99, slightly higher than 116,370,495.72 from the previous period, marking an increase of around 3.5%[130]. - The total comprehensive income attributable to the parent company's owners is 101,030,988.13, compared to 98,071,895.99 in the previous period, indicating an increase of approximately 3%[136]. Cash Flow - The net cash flow from operating activities was CNY 82,376,320.62, down by 3.66% from CNY 85,502,208.63 in the previous year[8]. - Cash inflow from operating activities totaled 540,843,636.84, a decrease from 551,926,086.69 in the previous period[141]. - Cash outflow from operating activities was 458,467,316.22, slightly down from 466,423,878.06 in the previous period[144]. - The cash and cash equivalents at the end of the period amounted to 1,001,465,378.99, up from 739,810,128.59 in the previous period[147]. - The cash flow from operating activities for the parent company was -10,817,347.95, compared to -4,325,123.38 in the previous period[148]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,605,609,774.13, a slight increase of 0.24% from CNY 5,592,390,582.02 at the end of the previous year[8]. - Total liabilities decreased from CNY 1,507,551,708.18 to CNY 1,443,919,651.63, a reduction of approximately 4.24%[114]. - Total equity increased from CNY 4,084,838,873.84 to CNY 4,161,690,122.50, reflecting a growth of about 1.89%[117]. - The company's accounts receivable decreased to CNY 688.65 million as of March 31, 2020, from CNY 715.89 million at the end of 2019, reflecting a decrease of approximately 3.2%[108]. Inventory and Contract Liabilities - Contract liabilities decreased by 58.30% to approximately 15.57 million yuan, primarily due to a reduction in advance payments from customers[24]. - Inventory shares increased by 57.94% to approximately 70.98 million yuan, mainly due to stock repurchases during the reporting period[24]. Research and Development - Research and development expenses decreased by 58.98% to approximately 23.71 million yuan, attributed to reduced R&D investments[25]. - The company has increased investment in product quality R&D to meet national standards and accelerate new product development[36]. Shareholder Information - The top ten shareholders held a combined 80.05% of the company's shares, with Beijing Jingsheng Investment Center holding the largest share at 25.05%[13]. Risk Management - The company faced risks related to pharmaceutical industry policies, including the impact of price reductions and procurement policies on drug sales[32]. - The company is implementing measures to mitigate risks associated with accounts receivable, including credit assessments and insurance[39]. - The company is actively responding to risks related to market supply and demand, raw material prices, and national policies, aiming to optimize production processes and improve gross profit margins[35]. Investment and Projects - The total amount of raised funds is 81,736.99 million, with 21.86% of the total amount being redirected for other uses[47]. - The AE-Active Ester new process project has achieved a completion rate of 96.87% with an investment of 7,900.96 million[47]. - The company adjusted the investment amount for the Cangzhou raw material project from 15,231.98 million to 7,771.88 million due to market changes[56].

[Company Profile and Key Financial Indicators](index=5&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Key Accounting Data and Financial Indicators](index=6&type=section&id=V.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2019, operating revenue decreased by 7.09% to RMB 2.795 billion, and net profit attributable to shareholders declined by 22.96% to RMB 203 million; net profit after non-recurring items fell 74.25%, but operating cash flow rose 64.11% to RMB 578 million Key Financial Data for 2019 | Indicator | 2019 | 2018 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | **2,794,819,332.70** | 3,007,968,049.52 | **-7.09%** | | Net Profit Attributable to Shareholders (RMB) | **203,285,186.73** | 263,863,408.96 | **-22.96%** | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses (RMB) | **64,621,883.15** | 251,001,639.97 | **-74.25%** | | Net Cash Flow from Operating Activities (RMB) | **577,983,378.38** | 352,196,534.35 | **64.11%** | | Basic EPS (RMB/share) | **0.52** | 0.67 | **-22.39%** | | Weighted Average Return on Net Assets | **5.47%** | 6.54% | **-1.07%** | | Total Assets (RMB) | **5,592,390,582.02** | 5,286,594,879.00 | **5.78%** | | Net Assets Attributable to Shareholders (RMB) | **4,064,167,519.74** | 4,009,478,306.73 | **1.36%** | [Quarterly Key Financial Indicators](index=6&type=section&id=VI.%20Quarterly%20Key%20Financial%20Indicators) The company incurred a significant loss in Q4 2019, with net profit attributable to shareholders at negative RMB 232 million, which sharply contrasted with prior quarters and was the primary cause for the full-year net profit decline 2019 Quarterly Financial Indicators (Unit: RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | **634,385,558.13** | **647,591,699.40** | **682,385,181.01** | **830,456,894.16** | | Net Profit Attributable to Shareholders | **98,071,895.99** | **227,173,357.29** | **109,657,473.12** | **-231,617,539.67** | [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses for 2019 amounted to RMB 139 million, significantly higher than previous years, primarily due to RMB 164 million in performance compensation from Jincheng Taier's original shareholders, providing crucial profit support Non-Recurring Gains and Losses Items (Unit: RMB) | Item | 2019 Amount (RMB) | 2018 Amount (RMB) | Description | | :--- | :--- | :--- | :--- | | Government grants included in current profit and loss | **23,342,267.03** | 18,896,346.87 | - | | Other non-operating income and expenses | **163,730,499.81** | 180,347.69 | Primarily due to the company receiving performance compensation from the original shareholders of Jincheng Taier during the reporting period | | **Total** | **138,663,303.58** | **12,861,768.99** | -- | [Company Business Overview](index=9&type=section&id=Section%203%20Company%20Business%20Overview) [Main Business, Products, and Operating Model](index=9&type=section&id=I.%20Main%20Business%20Engaged%20by%20the%20Company%20During%20the%20Reporting%20Period) The company's business covers pharmaceutical intermediates, biological APIs, and finished preparations, forming a complete value chain; it employs a group-level management, an 'agent + self-operated' sales model, and a multi-platform R&D system - The company's business primarily involves three major areas: pharmaceutical intermediates, biological APIs, and finished preparations, with main operations including the production, R&D, and sales of related drugs such as cephalosporin powder injections, cephalosporin side-chain intermediates, distinctive biological APIs, and finished preparations for women and children[33](index=33&type=chunk) - The company's main products include: - **Cephalosporin side-chain intermediates**: **AE active ester**, **triazine ring**, etc., used for synthesizing various cephalosporin antibiotics - **Distinctive biological APIs**: **Glutathione**, **S-adenosylmethionine**, etc - **Specialized drugs**: **Nifuratel and Nystatin Vaginal Soft Capsules** and other gynecological products, with several products included in the 2019 National Medical Insurance Catalog[35](index=35&type=chunk)[36](index=36&type=chunk) - The company implements a group-level three-tier management structure, with finished preparations adopting an "agent + self-operated" sales model, while pharmaceutical chemicals and APIs are primarily sold through direct sales[37](index=37&type=chunk)[41](index=41&type=chunk) [Significant Changes in Major Assets](index=10&type=section&id=II.%20Significant%20Changes%20in%20Major%20Assets) During the reporting period, monetary capital increased by 36.93% due to performance compensation and sales collections; development expenditures surged by 119.09% from R&D and consistency evaluation investments; other assets also saw substantial increases Explanation of Significant Changes in Major Assets | Major Asset | Explanation of Significant Change | | :--- | :--- | | Monetary Capital | Increased by **36.93%** from the beginning of the year, primarily due to the receipt of performance compensation from Jincheng Taier's original shareholders and increased sales collections | | Accounts Receivable Financing | Increased by **79.36%** from the beginning of the year, primarily due to an increase in bank acceptance bills received from sales collections | | Development Expenditures | Increased by **119.09%** from the beginning of the year, primarily due to increased investment in new product R&D and consistency evaluations for finished preparations | | Long-term Deferred Expenses | Increased by **144.05%** from the beginning of the year, primarily due to increased environmental protection investment to enhance wastewater treatment capacity | [Core Competitiveness Analysis](index=11&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its technology, talent, and brand advantages, supported by national-level R&D platforms, strategic university collaborations, a multi-disciplinary R&D team, and a strong brand reputation with stable clients - The company possesses multiple high-level R&D platforms, including a national-level enterprise technology center and a postdoctoral workstation, and engages in long-term technical cooperation with universities such as Tsinghua University and Shandong University, demonstrating strong R&D capabilities[49](index=49&type=chunk) - The company emphasizes talent team building, with an R&D team covering multiple fields such as chemical engineering, biology, and pharmaceutical preparations[50](index=50&type=chunk)[52](index=52&type=chunk) - The company boasts strong brand influence with both international clients like Cavallent and Aurobindo, and renowned domestic clients such as Qilu Antibiotics and Guangxi Kelun. In 2019, it was recognized as a "Benchmark Enterprise in the Pharmaceutical Industry for the 70th Anniversary of the Founding of New China"[53](index=53&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Section%204%20Management%20Discussion%20and%20Analysis) [Annual Operating Overview](index=13&type=section&id=I.%20Overview) In 2019, operating revenue reached RMB 2.795 billion and net profit RMB 203 million, significantly impacted by subsidiary Jincheng Taier's underperformance and a RMB 289 million goodwill impairment; the company focused on R&D, marketing, quality, and key projects - In 2019, the company achieved **operating revenue of RMB 2.795 billion** and **net profit attributable to the parent company of RMB 203 million**. Performance was impacted by subsidiary Jincheng Taier's failure to meet targets, leading to a **goodwill impairment provision of RMB 289 million**[56](index=56&type=chunk) - During the reporting period, the company increased R&D investment by **over 10% year-on-year**, completing **four drug consistency evaluation applications**, with **Montmorillonite Powder** being the first product to pass[57](index=57&type=chunk) - The company completed the equity acquisition of Zhejiang Panggu Yaoyuan, increasing its shareholding in Jincheng Jinsu to **84%** to enhance management efficiency and resource allocation[66](index=66&type=chunk) [Main Business Analysis](index=19&type=section&id=II.%20Main%20Business%20Analysis) In 2019, finished preparations and biological pharmaceuticals & distinctive API series products grew by 16.14% and 13.11% respectively, while cephalosporin side-chain active ester products declined by 7.22%; finished preparations, with an 88.77% gross margin, were the main profit driver, despite a 9.22% drop in domestic sales 2019 Operating Revenue Composition (by Product) | Product | Operating Revenue (RMB) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cephalosporin Side-Chain Active Ester Series Products | **874,339,528.52** | **31.28%** | **-7.22%** | | Biological Pharmaceuticals and Distinctive API Series Products | **335,202,351.68** | **11.99%** | **13.11%** | | Finished Preparations | **977,506,369.34** | **34.98%** | **16.14%** | | Other Pharmaceutical Chemical Products | **607,771,083.16** | **21.75%** | **5.07%** | Performance of Major Product Segments | Product Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | Revenue YoY Change | Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cephalosporin Side-Chain Active Ester Series Products | **874,339,528.52** | **586,764,860.42** | **32.89%** | **-7.22%** | **-3.92%** | **-2.31%** | | Biological Pharmaceuticals and Distinctive API Series Products | **335,202,351.68** | **137,357,741.60** | **59.02%** | **13.11%** | **0.15%** | **5.30%** | | Finished Preparations | **977,506,369.34** | **109,783,839.86** | **88.77%** | **16.14%** | **9.38%** | **0.69%** | - During the reporting period, the company acquired **67.35%** equity in Zhejiang Panggu Yaoyuan Co., Ltd. and established Guangdong Cephalosporin Pharmaceutical Co., Ltd., leading to changes in the scope of consolidation[95](index=95&type=chunk) [Expense Analysis](index=23&type=section&id=3.%20Expenses) In 2019, selling expenses rose 28.28%, R&D expenses grew 21.00%, and financial expenses surged 255.09% due to reduced exchange gains; asset impairment losses increased 81.66% from goodwill impairment, while non-operating income dramatically increased 1984.03% from performance compensation 2019 Major Expense Changes (Unit: RMB) | Expense Item | 2019 | 2018 | Year-on-Year Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | **575,949,865.56** | 448,970,732.21 | **28.28%** | - | | Financial Expenses | **6,158,151.15** | -3,970,626.54 | **255.09%** | Primarily due to exchange rate fluctuations and reduced exchange gains during the reporting period | | R&D Expenses | **263,916,394.24** | 218,107,100.36 | **21.00%** | - | | Asset Impairment Losses | **-303,288,943.77** | -166,950,210.98 | **81.66%** | Primarily due to increased goodwill impairment provisions during the reporting period | | Non-Operating Income | **169,920,641.69** | 8,153,469.13 | **1,984.03%** | Primarily due to the receipt of performance compensation from Jincheng Taier's original shareholders during the reporting period | [R&D Investment](index=23&type=section&id=4.%20R%26D%20Investment) The company continuously increased R&D investment, with total R&D expenditure reaching RMB 387 million in 2019, raising its proportion of operating revenue from 10.01% to 13.84%; capitalized R&D expenditure amounted to RMB 137 million, accounting for 35.50% of total R&D investment R&D Investment Over the Past Three Years | Indicator | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | R&D Investment Amount (RMB) | **386,884,819.71** | 301,244,556.04 | 143,544,173.03 | | R&D Investment to Operating Revenue Ratio | **13.84%** | 10.01% | 5.15% | | Capitalized R&D Expenditure (RMB) | **137,358,171.73** | 83,137,455.68 | 4,245,194.57 | | Capitalized R&D Expenditure to Total R&D Investment Ratio | **35.50%** | 27.60% | 2.96% | [Cash Flow Analysis](index=24&type=section&id=5.%20Cash%20Flow) In 2019, cash flow significantly improved, with net cash flow from operating activities increasing by 64.11% due to increased sales collections; net cash outflow from investing activities narrowed by 77.16% from performance compensation, while net cash flow from financing activities turned negative, decreasing by 355.48% due to an equity acquisition 2019 Cash Flow Statement Major Items (Unit: RMB) | Item | 2019 | 2018 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | **577,983,378.38** | 352,196,534.35 | **64.11%** | | Net Cash Flow from Investing Activities | **-93,445,215.15** | -409,172,021.91 | **77.16%** | | Net Cash Flow from Financing Activities | **-220,550,178.98** | 86,329,273.31 | **-355.48%** | | Net Increase in Cash and Cash Equivalents | **264,987,727.24** | 29,292,250.92 | **804.63%** | [Company's Future Development Outlook and Risks](index=40&type=section&id=IX.%20Outlook%20for%20the%20Company%27s%20Future%20Development) The company anticipates continued growth in the pharmaceutical and API markets, focusing its strategy on high-end medical chemical products, high-quality antibiotics, and full-lifecycle gynecological products; it also faces risks from policy changes, market competition, product quality, goodwill impairment, R&D, and management challenges from expansion - The company's development strategy will focus on four major areas: high-end pharmaceutical chemical products, high-end bioactive products, high-quality antibiotics, and full-lifecycle gynecological products, aiming to build a distinctive, specialized, and branded development path[223](index=223&type=chunk) - The company's main risks include: - **Policy Risk**: Policies such as consistency evaluations, volume-based procurement, and medical insurance cost control introduce uncertainties - **Market Risk**: Fluctuations in raw material prices and drug prices are influenced by market competition - **Quality, Safety, and Environmental Risk**: Potential risks in quality, safety, and environmental protection may exist in the production process - **Goodwill Impairment Risk**: Goodwill formed from the acquisition of Langyi Pharmaceutical (now Jincheng Taier) still carries impairment risk - **R&D Risk**: New drug R&D involves high investment, long cycles, and significant uncertainties - **Management Risk**: Expansion of business scale demands higher management capabilities[231](index=231&type=chunk)[232](index=232&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) [Significant Matters](index=45&type=section&id=Section%205%20Significant%20Matters) [Profit Distribution](index=45&type=section&id=I.%20Company%27s%20Ordinary%20Share%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion) The company's 2019 profit distribution plan proposes a cash dividend of RMB 2.00 per 10 shares, with no bonus shares or capitalization of capital reserves; total cash dividends (including share repurchases) accounted for 40.67% of net profit attributable to the parent company, continuing its stable cash dividend policy 2019 Profit Distribution Plan | Item | Amount/Quantity | | :--- | :--- | | Dividend per 10 shares (RMB) (tax inclusive) | **2** | | Share Capital Base for Distribution Plan (shares) | **388,671,487** | | Cash Dividend Amount (RMB) (tax inclusive) | **77,734,297.40** | | Cash Dividend by Other Means (e.g., share repurchase) (RMB) | **4,944,049.00** | | Proportion of Total Cash Dividends (incl. other means) to Total Profit Distribution | **100.00%** | Cash Dividends Over the Past Three Years | Dividend Year | Total Cash Dividends (incl. other means) (RMB) | Ratio to Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Financial Statements | | :--- | :--- | :--- | | 2019 | **82,678,346.40** | **40.67%** | | 2018 | **137,569,902.38** | **52.14%** | | 2017 | **78,630,447.60** | **27.46%** | [Fulfillment of Commitments](index=46&type=section&id=II.%20Fulfillment%20of%20Commitments) During the reporting period, commitments regarding asset restructuring, share restrictions, and non-compete clauses were all being fulfilled; specifically, the performance commitment for Beijing Langyi Pharmaceutical (now Jincheng Taier) has been fulfilled, and the company received the corresponding performance compensation - Regarding the performance commitment for Beijing Langyi Pharmaceutical (now Jincheng Taier) for 2015-2018, as targets were not met, the promising party has paid cash compensation to the company, and this commitment has been fulfilled[260](index=260&type=chunk) [Significant Related Party Transactions](index=55&type=section&id=XV.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company did not engage in significant related party transactions related to its daily operations, but it did undertake related party transactions involving asset acquisition, specifically the cash acquisition of equity in Zhejiang Panggu Yaoyuan Co., Ltd. held by company executive Fu Miaoqing and others - During the reporting period, the company did not engage in significant related party transactions related to its daily operations, nor did it engage in related party transactions involving asset or equity acquisition or disposal[282](index=282&type=chunk)[283](index=283&type=chunk) [Social Responsibility and Environmental Protection](index=59&type=section&id=XVII.%20Social%20Responsibility) The company actively fulfilled its social responsibilities, donating RMB 5 million to typhoon-stricken areas; in terms of environmental protection, the company and several subsidiaries are listed as key pollutant-discharging units, with detailed disclosures showing compliance with all discharge standards - The company donated **RMB 5 million** to people affected by Typhoon Lekima to support disaster reconstruction[303](index=303&type=chunk) - Several of the company's subsidiaries (Jincheng Medical Chemical, Jincheng Kerry, Huihai Pharmaceutical, Jincheng Bio, etc.) are listed as key pollutant-discharging units and have constructed and operated wastewater, exhaust gas, and hazardous waste treatment facilities as required[307](index=307&type=chunk)[318](index=318&type=chunk)[321](index=321&type=chunk) [Share Changes and Shareholder Information](index=76&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) [Share Change Status](index=76&type=section&id=I.%20Share%20Change%20Status) During the reporting period, the company's total share capital remained unchanged; changes in share structure primarily resulted from Deputy General Manager Fu Miaoqing acquiring 6,048,332 shares, with 75% locked as restricted shares for executives; the company also implemented two share repurchase programs - Company Deputy General Manager Fu Miaoqing acquired **6,048,332 shares** of the company through block trading, with **75% (4,536,249 shares)** locked as restricted shares for executives, leading to an increase in restricted shares[370](index=370&type=chunk)[371](index=371&type=chunk) - The company implemented two share repurchase programs. The first phase was completed in January 2019, with a cumulative repurchase of **2,878,351 shares**. The second phase started in June 2019, with **248,000 shares** repurchased during the reporting period[374](index=374&type=chunk)[375](index=375&type=chunk) [Shareholders and Actual Controllers](index=78&type=section&id=III.%20Shareholders%20and%20Actual%20Controllers) As of the end of 2019, the company had 9,690 shareholders; the controlling shareholder is Zibo Jincheng Industrial Investment Co., Ltd., holding 20.50% of shares, with Zhao Hongfu and Zhao Yeqing as actual controllers; Beijing Jinsheng Investment Center (Limited Partnership) is the largest shareholder, holding 25.05% Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held at End of Reporting Period | | :--- | :--- | :--- | | Beijing Jinsheng Investment Center (Limited Partnership) | **25.05%** | **98,493,778** | | Zibo Jincheng Industrial Investment Co., Ltd. | **20.50%** | **80,582,154** | | Haitong Securities Asset Management - ICBC - Haitong Tourongbao No. 1 | **4.51%** | **17,747,856** | | Zhao Hongfu | **3.25%** | **12,776,000** | - The company's controlling shareholder is Zibo Jincheng Industrial Investment Co., Ltd., and the actual controllers are Zhao Hongfu and Zhao Yeqing[388](index=388&type=chunk)[392](index=392&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=85&type=section&id=Section%209%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=85&type=section&id=I.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, changes in shareholdings of directors, supervisors, and senior management occurred, primarily due to Deputy General Manager Fu Miaoqing increasing her holdings by 6,048,332 shares, while other directors, supervisors, and senior management's shareholdings remained unchanged Changes in Shareholdings of Directors, Supervisors, and Senior Management (Unit: shares) | Name | Position | Shares Held at Beginning of Period (shares) | Shares Increased During Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhao Hongfu | Director | **12,776,000** | **0** | **12,776,000** | | Zhao Yeqing | Chairman | **4,720,000** | **0** | **4,720,000** | | Zhang Xuebo | Vice Chairman/General Manager | **6,420,000** | **0** | **6,420,000** | | Fu Miaoqing | Deputy General Manager | **0** | **6,048,332** | **6,048,332** | [Employee Information](index=90&type=section&id=V.%20Company%20Employee%20Information) As of the end of the reporting period, the company had a total of 3,023 employees, with production personnel accounting for the largest proportion at 1,684 persons; approximately 50% of employees held college degrees or above, with a total of 124 doctoral and master's degree holders Employee Professional Composition | Professional Category | Number of Persons | | :--- | :--- | | Production Personnel | **1,684** | | Sales Personnel | **64** | | Technical Personnel | **221** | | Financial Personnel | **70** | | Administrative Personnel | **172** | | Professional Management Personnel | **812** | | **Total** | **3,023** | [Corporate Governance](index=93&type=section&id=Section%2010%20Corporate%20Governance) [Overview of Corporate Governance](index=93&type=section&id=I.%20Basic%20Status%20of%20Corporate%20Governance) During the reporting period, the company operated strictly in accordance with relevant laws and regulations, and its corporate governance status complied with regulatory requirements; the company is independent of its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing independent and complete business operations and autonomous operating capabilities - The actual status of the company's corporate governance complies with the requirements of the "Guidelines for Corporate Governance of Listed Companies" and the "Guidelines for Standardized Operation of Companies Listed on the ChiNext Board of Shenzhen Stock Exchange"[439](index=439&type=chunk) - The company is completely independent of its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing independent and complete business operations and autonomous operating capabilities[447](index=447&type=chunk) [Financial Report](index=99&type=section&id=Section%2012%20Financial%20Report) [Audit Report](index=99&type=section&id=I.%20Audit%20Report) Daxin Certified Public Accountants issued a standard unqualified audit opinion on the company's 2019 financial report, highlighting goodwill impairment and revenue recognition as key audit matters, indicating focus on acquisition-related risks and revenue compliance - The auditing firm, Daxin Certified Public Accountants, issued a standard unqualified opinion (Daxin Audit [2020] No. 3-00475)[472](index=472&type=chunk)[474](index=474&type=chunk) - Key audit matters are: 1. **Goodwill Impairment**: As of the end of 2019, the book balance of goodwill was **RMB 1.153 billion**, with an impairment provision of **RMB 289 million** for the current period. Due to its significant amount and the substantial management judgment involved in impairment testing, it was listed as a key audit matter 2. **Revenue Recognition**: Operating revenue for 2019 was **RMB 2.795 billion**. As it is a key performance indicator and of significant scale, the appropriateness of its recognition has a material impact on operating results[475](index=475&type=chunk)[478](index=478&type=chunk) [Financial Statements](index=102&type=section&id=II.%20Financial%20Statements) The financial statements show total assets increased from RMB 5.287 billion to RMB 5.592 billion, and total liabilities rose from RMB 1.199 billion to RMB 1.508 billion, increasing the asset-liability ratio; operating profit significantly declined due to higher operating costs and substantial asset impairment losses, while owners' equity saw increased treasury stock from repurchases and growing undistributed profits Consolidated Balance Sheet Summary (Unit: RMB) | Item | 2019年12月31日 | 2018年12月31日 | | :--- | :--- | :--- | | Total Assets | **5,592,390,582.02** | 5,286,594,879.00 | | Total Liabilities | **1,507,551,708.18** | 1,198,549,679.89 | | Total Owners' Equity Attributable to Parent Company | **4,064,167,519.74** | 4,009,478,306.73 | Consolidated Income Statement Summary (Unit: RMB) | Item | 2019年度 | 2018年度 | | :--- | :--- | :--- | | Total Operating Revenue | **2,794,819,332.70** | 3,007,968,049.52 | | Total Operating Costs | **2,346,621,620.04** | 2,489,266,639.34 | | Asset Impairment Losses | **-303,288,943.77** | -166,950,210.98 | | Operating Profit | **155,327,555.14** | 367,917,292.48 | | Total Profit | **315,159,059.44** | 370,097,638.66 | | Net Profit | **214,009,704.05** | 282,313,799.31 | [Notes to Consolidated Financial Statement Items](index=148&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) The notes provide detailed information on key accounts, with goodwill impairment primarily from Jincheng Taier, totaling RMB 289 million; R&D expenses increased 21%, mainly for project development; non-operating income included RMB 166 million in performance compensation, crucial for profit; the company's shareholding in Jincheng Jinsu increased from 51% to 84% through acquisition Goodwill Impairment Provision (Unit: RMB) | Name of Investee | Beginning Balance (RMB) | Increase (Provision) for Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Beijing Jincheng Taier Pharmaceutical Co., Ltd. | **121,699,163.93** | **289,382,027.82** | **411,081,191.75** | - The company indirectly increased its equity in subsidiary Guangdong Jincheng Jinsu Pharmaceutical Co., Ltd. by acquiring **67.35%** equity of Zhejiang Panggu Yaoyuan Co., Ltd. through cash, raising its shareholding from **51%** to **84%**[917](index=917&type=chunk)