2023 年半年度募集资金存放与使用情况的专项报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 根据《上市公司监管指引第 2 号——上市公司募集资金管理和使用的监管要 求》、《深圳证券交易所创业板股票上市规则》、《深圳证券交易所上市公司自 律监管指引第 2 号——创业板上市公司规范运作》以及公司《募集资金管理办法》 等有关规定，现将浙江天宇药业股份有限公司（以下简称"公司"或"天宇股份"） 2023 年半年度募集资金存放与使用情况报告如下： 证券代码：300702 证券简称：天宇股份 公告编号：2023-045 浙江天宇药业股份有限公司 一、募集资金基本情况 (一) 实际募集资金金额和资金到账时间 2020 年向特定对象发行股票募集资金情况 经中国证券监督管理委员会证监许可〔2020〕2842 号文核准，并经深圳证券 交易所同意，本公司由主承销商中信建投证券股份有限公司采用代销方式，向特 定对象发行人民币普通股（A 股）股票 11,117,974 股，发行价为每股人民币 80.95 元，共计募集资金 899,999,995.30 元，坐扣承销和保荐费用 4 ...

4、问：今年公司业务增长点主要在哪里？ 答：公司本年度业务增长点主要有以下几个方面： （1）公司将继续加强市场开发团队规模和能力，开拓其他非沙 坦类原料药的全球销售市场，不断提升原料药全球销售市场占 有率。 股票代码：300702 股票简称：天宇股份 浙江天宇药业股份有限公司 投资者关系活动记录表 编号：2023-003 | 投资者关系活动类别 | □特定对象调研 □分析师会议 | | --- | --- | | | □媒体采访 √业绩说明会 | | | □新闻发布会 □路演活动 | | | □现场参观 | | | □其他 （请文字说明其他活动内容） | | 参与单位名称及人员 | 线上参与公司天宇股份 年度网上业绩说明会的投资者 2022 | | 姓名 | | | 时间 | 2023 年 05 月 10 日（星期三）下午 15:30-17:00 | | 地点 | "天宇股份投资者关系"微信小程序 | | 上市公司接待人员姓 | 董事长兼总经理：屠勇军先生 | | 名 | 董事会秘书兼副总经理：王艳女士 | | | 财务总监：王秀娟女士 | | | 独立董事：张国昀先生 | | | 保荐代表人：黄建飞先生 1 ...

证券代码：300702 证券简称：天宇股份 公告编号：2023-029 浙江天宇药业股份有限公司 关于召开 2022 年度网上业绩说明会的公告 出席本次网上说明会的人员有：董事长兼总经理屠勇军先生，董事会秘书兼 副总经理王艳女士，财务总监王秀娟女士，独立董事张国昀先生，保荐代表人黄 建飞先生。 1 / 2 敬请广大投资者积极参与。 特此公告。 本公司董事会及全体董事保证本公告内容不存在虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 浙江天宇药业股份有限公司（以下简称"公司"）已于 2023 年 04 月 27 日 在巨潮资讯网（http://www.cninfo.com.cn/）上披露了《天宇股份 2022 年年度报告》。 为便于广大投资者进一步了解公司 2022 年年度经营情况，公司定于 2023 年 5 月 10 日（星期三）下午 15:30 至 17:00 时在"天宇股份投资者关系"小程序举 行 2022 年度网上业绩说明会。本次网上业绩说明会将采用网络远程的方式举行， 投资者可登陆"天宇股份投资者关系"小程序参与互动交流。为广泛听取投资者 的意见和建议，提前 ...

Financial Performance - The company's revenue for Q1 2023 was ¥777,213,687.73, representing a 3.64% increase compared to ¥749,897,751.64 in the same period last year[5] - Net profit attributable to shareholders was ¥100,237,944.26, an increase of 18.31% from ¥84,721,433.74 year-on-year[5] - The net profit excluding non-recurring gains and losses was ¥91,674,717.31, reflecting a significant increase of 36.92% compared to ¥66,953,384.56 in the previous year[5] - The basic earnings per share rose to ¥0.2901, up 19.14% from ¥0.2435 in the same period last year[5] - The company reported a net profit margin of 16.5% for Q1 2023, compared to 14.5% in Q1 2022[21] - Operating profit reached CNY 127,168,082.73, up from CNY 99,450,209.38, indicating a growth of 28.0% year-over-year[22] - The company reported a total comprehensive income of CNY 100,237,944.26, compared to CNY 84,721,433.74 in the previous year, indicating a growth of 18.3%[23] Cash Flow and Investments - The net cash flow from operating activities improved to -¥63,019,837.85, a 58.60% reduction in cash outflow compared to -¥152,209,144.88 in the previous year[5] - Cash inflow from investment activities totaled 2,824,029.48 RMB, a significant decrease of 95.55% compared to the previous year[10] - The cash flow from operating activities showed a net outflow of CNY -63,019,837.85, an improvement from CNY -152,209,144.88 in the same quarter last year[24] - Investment activities resulted in a net cash outflow of CNY -128,451,669.47, compared to a net inflow of CNY 14,914,027.35 in the previous year[26] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,428,673,439.40, a slight increase of 0.20% from ¥6,415,749,761.32 at the end of the previous year[5] - Total liabilities decreased to CNY 2,828,967,325.17 from CNY 2,920,743,895.09, a reduction of 3.1%[19] - Non-current assets totaled CNY 3,373,165,881.10, slightly down from CNY 3,398,074,845.12, a decrease of 0.7%[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,688[12] - The largest shareholder, Lin Jie, holds 35.07% of the shares, amounting to 122,028,474 shares, with 26,800,000 shares pledged[12] - The second-largest shareholder, Tu Yongjun, owns 16.41% of the shares, totaling 57,109,409 shares, with 16,700,000 shares pledged[12] Expenses - The company reported a significant increase in sales expenses, which rose by 37.94% to ¥13,214,486.14 compared to ¥9,580,078.07 in the previous year[9] - The financial expenses surged by 153.67% to ¥19,731,905.91, primarily due to increased interest expenses and foreign exchange losses[9] - The company experienced a 116.50% increase in taxes and surcharges, amounting to ¥7,202,386.16 compared to ¥3,326,808.96 in the same period last year[9] - The company incurred a total tax expense of CNY 25,872,286.97, which is an increase from CNY 14,505,480.46 in the same quarter last year[22] Inventory and Receivables - Accounts receivable rose to CNY 441,444,070.10, up from CNY 366,636,051.42, indicating an increase of 20.3%[17] - Inventory decreased to CNY 1,878,525,423.20 from CNY 2,017,183,241.46, a decline of 6.9%[17] Cash and Equivalents - Cash and cash equivalents increased to CNY 554,452,276.73 from CNY 476,981,463.45, representing a growth of 16.2%[17] - The company experienced a net increase in cash and cash equivalents of 107,745,677.84 RMB, representing an 80.17% increase year-on-year[10] - Cash and cash equivalents at the end of the period totaled CNY 377,973,652.28, up from CNY 367,275,932.06 at the end of the previous year[26]

Financial Performance - The company achieved operating revenue of CNY 2,666.68 million in 2022, a growth of 4.78% compared to CNY 2,545.01 million in 2021[4] - The net profit attributable to shareholders was CNY -118.95 million, a decline of 158.12% year-on-year, while the net profit excluding non-recurring gains and losses was CNY -83.09 million, down 151.68%[4] - The company's operating revenue for 2022 was ¥2,666,678,471.80, an increase of 4.78% compared to ¥2,545,009,527.24 in 2021[26] - The net profit attributable to shareholders was -¥118,952,557.99, a decrease of 158.12% from ¥204,676,095.23 in 2021[26] - The cash flow from operating activities was -¥48,699,787.90, an improvement of 81.43% compared to -¥262,230,037.31 in 2021[26] - The total assets at the end of 2022 were ¥6,415,749,761.32, representing a 10.60% increase from ¥5,800,601,655.48 at the end of 2021[26] - The basic earnings per share for 2022 was -¥0.34, a decline of 157.63% from ¥0.59 in 2021[26] Revenue Breakdown - CDMO business revenue fell to CNY 263.08 million, a decrease of 52.79% year-on-year, primarily due to reduced customer demand and fewer orders[5] - The revenue from generic raw materials and intermediates was ¥2,350,005,129.0, accounting for 88.12% of total revenue, with a year-on-year increase of 19.66%[73] - The revenue from CDMO raw materials and intermediates decreased by ¥263,079,986.81, a decline of 52.79%, primarily due to reduced customer demand[75] - The revenue from formulations increased by ¥33,968,396.04, a significant rise of 754.85%, attributed to an increase in approved products and improved marketing channels[75] Inventory and Production - The company recognized inventory impairment losses of CNY 96.47 million based on the lower of cost and net realizable value principle[5] - The inventory of generic raw materials and intermediates increased by 37.90%, mainly due to expanded production capacity and longer production processes[79] - Inventory increased by 80.68% year-on-year, attributed to order shipment delays and early stockpiling for Q1 2023[80] Research and Development - R&D investment amounted to CNY 15,215.88 million, a 43.49% increase compared to the previous year, with a compound annual growth rate of 41.65% over the past three years[69] - The R&D investment for formulation business in 2022 was CNY 153 million, with 6 new drug approvals obtained, indicating strong development capabilities[3] - The company has established three R&D centers with a total area of approximately 8,000 square meters and employs around 280 R&D personnel, forming a comprehensive innovation system[57] Market and Competitive Position - The global pharmaceutical market size reached $1,424 billion in 2021, with a projected growth rate of 3-6% from 2022 to 2026[38] - The global biopharmaceutical R&D expenditure reached $198 billion in 2020, expected to grow at a CAGR of 4.2% to $254 billion by 2026[39] - The company is one of the largest producers of sartans, with a diverse product range including antiviral and anti-asthma raw materials, and has established long-term partnerships with major global pharmaceutical companies[42] Corporate Governance - The company held five board meetings during the reporting period, all convened by the chairman[134] - The board consists of 7 members, including 3 independent directors, complying with relevant laws and regulations[133] - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management[134] - The company maintains independent operations in assets, personnel, finance, and business, ensuring no reliance on controlling shareholders[136] Environmental Compliance - Zhejiang Tianyu Pharmaceutical Co., Ltd. strictly complies with environmental protection laws, including the Environmental Protection Law and the Water Pollution Prevention Law[176] - The company has implemented measures to ensure that all emissions are within the regulatory limits, with no exceedances reported for various pollutants[178] - The total investment in environmental protection for the year 2022 amounted to 318 million yuan, including fixed asset investments related to environmental protection[186] Future Outlook - The company aims to achieve a revenue target of 250 million for the next fiscal year, representing a projected growth of 35%[143] - Future expansion plans include increasing production capacity while maintaining strict adherence to environmental standards[178] - The company is exploring potential mergers and acquisitions to enhance its market position and operational efficiency[178]

PAGE2 / NUMPAGES3 证券代码：300702 证券简称：天宇股份 浙江天宇药业股份有限公司 投资者关系活动记录表 编号：2017-001 | --- | --- | --- | |--------------------|-----------------------|----------------------------------------------------------| | | | | | 投资者关系活动类别 | | 特定对象调研 □分析师会议 | | | □ | 媒体采访 □业绩说明会 | | | □ | 新闻发布会 □路演活动 | | | □ 现场 □其他 | | | 参会单位名称及 | 中泰证券 - | 祝嘉琦 富国基金-姜恩铸 | | 人员姓名 | | 润晖投资-平晓川 兴证资产管理-毛泓洋 | | | 星石投资 - | 方磊 中国人寿资产管理 - 赵文龙 | | 时间 | 2017 年 11 月 | 16 日 | | 地点 | 公司四楼会议室 | | | 上市公司接待人员 | 董事长、总经理 屠勇军 | 董事会秘书、财务总监 王艳 | | 投资者关系活动主要 | 1 、 ...

证券代码：300702 证券简称：天宇股份 浙江天宇药业股份有限公司 投资者关系活动记录表 编号：2021-001 | --- | --- | --- | --- | |--------------------|------------------------------------------------|---------------------------------------------------------------|----------------------| | 投资者关系活动类别 | 特定对象调研 \n□新闻发布会 □路演活动 \n□现场 | □分析师会议 \n□媒体采访 □业绩说明会 \n□其他 | | | | 诺安基金 高毅资产 | 兴全基金 万家基金 | 信达澳银基金 | | | 毕盛投资 财通自营 | 诚旸投资 淳厚基金 | 丹羿投资 德邦 | | | 自营 东方港湾 | 东海证券自营 沣京资本 | 复胜资产 格林 | | | 基金 光大自营 | 广发资管 广州金控 和谐汇一 | 红土创新 | | | 基金 泓澄投资 | 华富基金 华泰柏瑞基金 | 华泰资管 华银 | | 参会 ...

证券代码：300702 证券简称：天宇股份 浙江天宇药业股份有限公司 投资者关系活动记录表 编号：2021-005 | --- | --- | --- | |--------------------|--------------------------------|------------------------------------------------------------| | | | | | | 特定对象调研 | □分析师会议 | | | □媒体采访 □业绩说明会 | | | 投资者关系活动类别 | □新闻发布会 □路演活动 | | | | □现场 | □其他 | | 参会单位名称 | 券商医药研究员及机构研究员 | | | 时间 | 2021 年 11 月 9 日 | | | 地点 公司会议室 | | | | 上市公司接待人员 | 董事会秘书 王艳 | | | | 证券事务代表 杨鹏、姜露露 | | | | 条线情况 （一）沙坦原料药业务 | 第一部分：董事会秘书王艳女士总结近期公司各业务 | | | | | | | | 受上游原材料涨价等因素影响，公司近期沙坦原料药订单报价 | | | | ...

[Important Notice](index=2&type=section&id=Section%201.%20Important%20Notice) The Board of Directors, Supervisory Board, and senior management affirm the accuracy and completeness of this quarterly report, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and bear legal responsibility for it[4](index=4&type=chunk) - Company representatives Tu Yongjun, Chief Accountant Wang Yan, and Head of Accounting Department Wang Chong jointly declare the truthfulness, accuracy, and completeness of the financial statements in this quarterly report[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Section%202.%20Company%20Profile) This section provides an overview of the company's key financial data, shareholder structure, and changes in restricted shares [Key Accounting Data and Financial Indicators](index=3&type=section&id=Section%2.1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of the end of the reporting period, the company's total assets increased by 10.21% from the end of the previous year, with Q3 operating revenue up 30.35%, while year-to-date net profit attributable to shareholders decreased by 25.68% primarily due to non-recurring items, though net profit excluding non-recurring items saw a slight decrease of 2.80% Key Accounting Data and Financial Indicators | Indicator | End of Reporting Period/Current Period | Year-to-Date | YoY Change (YTD) | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 2,321,752,064.15 | - | 10.21% (vs. end of previous year) | | Net Assets Attributable to Shareholders (RMB) | 1,355,787,723.59 | - | 5.29% (vs. end of previous year) | | Operating Revenue (RMB) | 357,104,012.97 | 1,003,654,707.97 | 13.67% | | Net Profit Attributable to Shareholders (RMB) | 38,286,766.69 | 78,862,136.44 | -25.68% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (RMB) | 62,125,550.16 | 97,688,989.73 | -2.80% | | Net Cash Flow from Operating Activities (RMB) | - | 3,418,582.11 | -95.58% | | Basic Earnings Per Share (RMB/share) | 0.21 | 0.44 | -44.30% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -2,456,446.83 | Primarily from disposal of expired and prematurely scrapped fixed assets | | Government Grants | 2,561,218.76 | Primarily from government subsidies received | | Fair Value Changes of Financial Instruments and Investment Income | -15,680,571.02 | Primarily due to exchange rate fluctuations affecting forward foreign exchange settlements and options, and wealth management income | | Other Non-Operating Income and Expenses | -724,324.06 | - | | Income Tax Impact | -2,526,730.14 | - | | **Total** | **-18,826,853.29** | - | [Shareholder Information](index=4&type=section&id=Section%2.2.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the end of the reporting period, the company had 18,431 common shareholders, with Ms. Lin Jie and Mr. Tu Yongjun, a married couple, holding over 50% of the company's shares directly and indirectly, serving as the controlling shareholders and actual controllers - The total number of common shareholders at the end of the reporting period was **18,431**[12](index=12&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | Nature | | :--- | :--- | :--- | :--- | | Lin Jie | 39.30% | 71,530,819 | Domestic Natural Person | | Tu Yongjun | 14.09% | 25,643,404 | Domestic Natural Person | | Zhejiang Taizhou Shengting Investment Co., Ltd. | 6.58% | 11,969,414 | Domestic Non-State-Owned Legal Person | | Tu Shanzeng | 3.20% | 5,821,698 | Domestic Natural Person | | Wang Juqing | 3.20% | 5,821,697 | Domestic Natural Person | | Shanghai Jinglin Venture Capital Center (Limited Partnership) | 2.95% | 5,371,487 | Domestic Non-State-Owned Legal Person | - The company's largest shareholder, Lin Jie, and second largest shareholder, Tu Yongjun, are a married couple and serve as the controlling shareholders and actual controllers; Tu Yongjun is the son of Tu Shanzeng and Wang Juqing[13](index=13&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=Section%2.3.%20Changes%20in%20Restricted%20Shares) During the reporting period, the company's total restricted shares decreased from approximately 137 million to 130 million, primarily due to the lifting of restrictions on IPO shares held by Shanghai Jinglin Venture Capital Center and an increase from equity incentive plans for some executives and employees - During the reporting period, the company's total restricted shares decreased from **137,264,951** shares to **129,564,555** shares, with **8,680,355** shares released from restriction, primarily due to the unlocking of initial public offering (IPO) restricted shares[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Restricted share quantities for executives and core employees, including Tu Yongjun, Ma Cheng, and Cheng Rongde, changed due to executive lock-up or equity incentive plans[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Significant Events](index=8&type=section&id=Section%203.%20Significant%20Events) This section details major changes in financial data, progress on significant matters, and compliance with commitments [Significant Changes in Financial Data and Reasons](index=8&type=section&id=Section%203.1.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Their%20Reasons) During the reporting period, several financial indicators experienced significant changes, including a 91.04% increase in construction in progress due to project investments, a 1703.14% rise in advances from customers, a substantial decrease in financial expenses due to exchange gains, a sharp increase in fair value change losses from forward foreign exchange, and a 7405.17% surge in cash inflows from investing activities due to recovered wealth management principal Major Balance Sheet Item Changes | Item | Change Rate | Reason | | :--- | :--- | :--- | | Construction in Progress | 91.04% | Increased investment in fundraising projects | | Prepayments | 97.25% | Increased prepayments for raw materials | | Advances from Customers | 1703.14% | Increased advances for goods | | Taxes Payable | 281.67% | Increased corporate income tax payable | | Paid-in Capital | 51.68% | Equity incentives and capital reserve capitalization | Major Income Statement Item Changes (Year-to-Date) | Item | Change Rate | Reason | | :--- | :--- | :--- | | Financial Expenses | -94.43% | Due to exchange rate fluctuations affecting foreign currency | | Asset Impairment Losses | 479.20% | Due to increased bad debts from accounts receivable | | Investment Income | 358.88% | Due to wealth management income from idle raised funds | | Fair Value Change Gains/Losses | -2,418.46% | Due to exchange rate fluctuations affecting forward foreign exchange settlements | | Non-Operating Expenses | 102.40% | Due to increased losses from disposal of non-current assets | Major Cash Flow Statement Item Changes (Year-to-Date) | Item | Change Rate | Reason | | :--- | :--- | :--- | | Cash Received from Other Investing Activities | 7405.17% | Due to recovery of principal from wealth management of idle raised funds | | Cash Paid for Other Investing Activities | 175738.00% | Due to payment for wealth management of idle raised funds | | Cash Received from Investments | -94.91% | Received raised funds from initial public offering in the same period last year | | Effect of Exchange Rate Changes on Cash | 199.90% | Due to exchange rate changes | [Progress of Significant Matters](index=10&type=section&id=Section%203.2.%20Progress%20of%20Significant%20Matters%2C%20Their%20Impact%2C%20and%20Analysis%20of%20Solutions) The company provided an update on the Valsartan API incident, having undergone a for-cause on-site inspection by EDQM regarding Valsartan NDMA, receiving a "List of Deficiencies" on October 18 with no critical deficiencies, and is actively preparing its response - The company underwent a for-cause on-site inspection by the European Directorate for the Quality of Medicines & HealthCare (EDQM) regarding Valsartan NDMA from September 5 to 8, 2018[23](index=23&type=chunk) - On October 18, the company received the "List of Deficiencies" email from EDQM regarding this inspection, confirming no critical deficiencies, and is currently actively preparing its response[23](index=23&type=chunk) [Other Commitments and Compliance Matters](index=11&type=section&id=Section%203.3.%20Overdue%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholders%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period) During the reporting period, the company had no overdue unfulfilled commitments, no non-compliant cash dividend policy execution, no need for significant performance change warnings, no illegal external guarantees, and no non-operating fund occupation by controlling shareholders - The company had no overdue unfulfilled commitments during the reporting period[25](index=25&type=chunk) - There were no instances of illegal external guarantees by the company during the reporting period[26](index=26&type=chunk) - There was no non-operating occupation of funds by the controlling shareholder or its related parties from the listed company during the reporting period[27](index=27&type=chunk) [Financial Statements](index=12&type=section&id=Section%204.%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for the third quarter of 2018 [Financial Statements](index=12&type=section&id=Section%204.1.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the third quarter of 2018, showing steady asset growth but fluctuating profitability and operating cash flow influenced by external factors like exchange rates and internal operations such as increased procurement [Consolidated Balance Sheet](index=12&type=section&id=Section%204.1.1.%20Consolidated%20Balance%20Sheet) As of September 30, 2018, the company's total assets were **RMB 2.32 billion**, up 10.21% from the beginning of the year; total liabilities were **RMB 0.97 billion**, up 17.94%; and net assets attributable to shareholders were **RMB 1.36 billion**, up 5.29%, with the asset-liability ratio increasing from 38.88% to 41.60% Consolidated Balance Sheet Summary (September 30, 2018) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,321,752,064.15 | 2,106,652,190.74 | 10.21% | | Total Liabilities | 965,964,340.56 | 818,991,851.48 | 17.94% | | Total Equity Attributable to Parent Company Owners | 1,355,787,723.59 | 1,287,660,339.26 | 5.29% | [Consolidated Income Statement](index=17&type=section&id=Section%204.1.3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2018 (July-September), the company achieved **RMB 357 million** in operating revenue, a 30.35% increase year-on-year, and **RMB 38.29 million** in net profit attributable to shareholders, up 24.52%; year-to-date (January-September), cumulative operating revenue reached **RMB 1.00 billion**, up 13.67%, but cumulative net profit attributable to shareholders was **RMB 78.86 million**, a 25.68% decrease, primarily due to a significant fair value change loss of **RMB 28.32 million** (compared to a loss of **RMB 1.12 million** in the prior year) Consolidated Income Statement (Q3 2018 vs Q3 2017) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 357,104,012.97 | 273,960,759.90 | 30.35% | | Operating Profit | 50,103,927.79 | 37,175,900.01 | 34.79% | | Net Profit Attributable to Parent Company Owners | 38,286,766.69 | 30,746,610.77 | 24.52% | Consolidated Income Statement (YTD 2018 vs YTD 2017) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,003,654,707.97 | 882,974,276.90 | 13.67% | | Operating Profit | 97,204,585.74 | 130,007,613.64 | -25.23% | | Net Profit Attributable to Parent Company Owners | 78,862,136.44 | 106,111,732.26 | -25.68% | [Consolidated Cash Flow Statement](index=25&type=section&id=Section%204.1.7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period-End) In the first three quarters of 2018, net cash flow from operating activities was **RMB 3.42 million**, a 95.58% decrease from **RMB 77.36 million** in the prior year, mainly due to a 34.62% increase in cash paid for goods and services; net cash inflow from investing activities was **RMB 2.84 million** due to recovered wealth management principal; and net cash inflow from financing activities was **RMB 56.22 million**, significantly lower than **RMB 643 million** in the prior year due to IPO proceeds Consolidated Cash Flow Statement Summary (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,418,582.11 | 77,362,489.47 | -95.58% | | Net Cash Flow from Investing Activities | 2,835,126.80 | -101,633,273.95 | Not Applicable | | Net Cash Flow from Financing Activities | 56,216,026.21 | 642,942,563.88 | -91.26% | | Net Increase in Cash and Cash Equivalents | 66,666,654.71 | 614,470,507.93 | -89.15% | [Audit Report](index=28&type=section&id=Section%204.2.%20Audit%20Report) The company's 2018 third-quarter report is unaudited - The company's third-quarter report is **unaudited**[61](index=61&type=chunk)

Financial Performance - Total revenue for the first half of 2018 was CNY 646,550,695, representing a 6.16% increase compared to CNY 609,013,517 in the same period last year[16]. - Net profit attributable to shareholders decreased by 46.18% to CNY 40,561,717.69 from CNY 75,365,121.49 year-on-year[16]. - Net profit after deducting non-recurring gains and losses fell by 50.52% to CNY 35,549,787.51 compared to CNY 71,840,581.21 in the previous year[16]. - Basic earnings per share decreased by 60.71% to CNY 0.22 from CNY 0.84 in the previous year[16]. - The company reported a net profit impact of over 10% from its major subsidiaries, with Binhai Sannong's performance being notably affected by temporary shutdowns[72]. - The main reason for the performance decline is attributed to a decrease in gross profit during the first half of the year[74]. - The revenue from the company's core business of raw materials and intermediates has been significantly impacted by increased competition from domestic and international players[75]. - The company’s estimated cumulative net profit for the period from the beginning of the year to the next reporting period is projected to be between 57 million and 73 million CNY, representing a decrease of 43.29% compared to the previous year[74]. - The basic earnings per share are expected to be between 0.32 and 0.40 CNY, down 42.86% from the previous year[74]. - For the period from July to September, the estimated net profit is projected to be approximately 16.44 million CNY, a decline of 46.54% compared to the same period last year[74]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at CNY -53,655,243.45, a decline of 228.00% from CNY 41,917,936.49 in the same period last year[16]. - The company’s cash flow from operating activities showed a net outflow of CNY 53.66 million, a significant decline attributed to increased prepayments for materials[45]. - Total cash inflow from operating activities was 527,774,951.51 CNY, while cash outflow was 581,430,194.96 CNY, resulting in a net cash flow deficit[175]. - Cash inflow from investment activities totaled 602,662,925.17 CNY, with a net cash flow of -21,097,389.89 CNY, improving from -90,593,670.43 CNY in the previous period[176]. - Cash inflow from financing activities was 470,413,650.00 CNY, with a net cash flow of 59,222,144.18 CNY, compared to 28,616,879.64 CNY previously[176]. - The ending balance of cash and cash equivalents was 103,185,833.14 CNY, down from 116,839,050.79 CNY at the beginning of the period[176]. - The company reported a total sales revenue of 425,929,219.27 CNY from goods and services, an increase from 401,534,664.18 CNY in the previous period[178]. - The total cash outflow for operating activities was 494,682,848.72 CNY, compared to 373,447,453.92 CNY in the previous period[179]. Assets and Liabilities - Total assets increased by 6.66% to CNY 2,246,854,144.62 from CNY 2,106,652,190.74 at the end of the previous year[16]. - Total current assets increased to CNY 1,362,691,916.52 from CNY 1,257,399,999.53, representing an 8.3% growth[158]. - Total liabilities rose to CNY 934,955,610.58 from CNY 818,991,851.48, a 14.2% increase[159]. - Owner's equity increased to CNY 1,311,898,534.04 from CNY 1,287,660,339.26, a 1.9% growth[160]. - The company reported a significant increase in prepaid expenses, rising to CNY 34,689,874.14 from CNY 14,706,003.72, a 136.0% increase[157]. Business Operations and Strategy - The main business includes the R&D, registration, production, and sales of chemical raw materials and intermediates, with no significant changes during the reporting period[22]. - The company primarily exports its products to Europe, the USA, Japan, and South Korea, with a focus on direct sales to end-users[25]. - The company aims to increase the proportion of direct sales in its export business as its customer base grows[26]. - The production cycle for products typically ranges from 10 days to 1 month, ensuring timely supply to customers[24]. - The company employs a centralized procurement model to enhance supply chain efficiency and reduce costs[23]. - The CMO business operates on a "sales-driven production" model, aligning production with customer order demands[26]. - The company has established strong partnerships with domestic and international trading companies to enhance market reach and customer relationships[26]. - The company is one of the largest domestic suppliers of sartans, with a comprehensive range of antihypertensive drug raw materials and intermediates[29]. - The company has established a research institute for cardiovascular drugs, enhancing its R&D capabilities and market competitiveness[33]. Research and Development - Research and development expenses amounted to CNY 35.48 million, a 17.30% increase from the previous year, with 56 ongoing projects and 15 new development projects initiated[40]. - The company has obtained 13 invention patents, emphasizing its focus on chemical raw materials and key intermediates synthesis technology[31]. - The company has reduced the use of chemical solvents by nearly 20% compared to traditional processes, significantly lowering production costs and pollution[33]. - The company’s production technology improvements have strengthened its position as a leading player in the sartans raw material and intermediate market[33]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for this period[4]. - The company has implemented a stock incentive plan to attract and retain management talent, enhancing core team cohesion and competitiveness[42]. - The company’s stock incentive plan was approved, with 154 participants ultimately receiving shares after some opted out[129]. - The company has established a commitment to avoid any conflicts of interest with its controlling shareholders[87]. - The company will ensure that all employees' social insurance and housing fund contributions are paid in full to avoid penalties[87]. - The company has maintained compliance with all commitments made to shareholders and stakeholders during the reporting period[88]. Environmental Compliance - The company generated 272.532 tons of hazardous waste in the first half of the year, with 259.03 tons safely disposed of[112]. - The company established a wastewater treatment facility that meets production needs and emergency capabilities, ensuring compliance with discharge standards[112]. - The company has implemented sufficient air pollution control measures, including RTO incinerators for end treatment[112]. - The company conducts regular environmental training and emergency drills to enhance employees' awareness of environmental management[115]. - The company has a self-monitoring plan and publicly discloses monitoring data through provincial environmental monitoring platforms[116]. Market Position and Competition - The company’s CMO business is influenced by the stages of downstream clients' drug development, leading to significant revenue fluctuations[29]. - The CMO business, which provides custom production services, is crucial for the company's growth, but its development may not meet expectations if new clients and products are not secured[77]. - The company faces risks related to product quality control, which is critical due to the stringent regulatory environment in the pharmaceutical industry[78]. - New product development carries risks such as failure, insufficient market demand, and increased regulatory scrutiny, which may adversely affect profitability[78]. - The company is at risk of product substitution as new therapeutic methods and drugs may emerge, potentially impacting sales of existing products[78].