浙江天宇药业股份有限公司 2019 年年度报告全文 浙江天宇药业股份有限公司 2019 年年度报告 2020 年 04 月 1 浙江天宇药业股份有限公司 2019 年年度报告全文 金向全体股东每 10 股转增 0 股。 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、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人屠勇军、主管会计工作负责人王艳及会计机构负责人(会计主管 人员)王冲声明：保证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。 公司经本次董事会审议通过的利润分配预案为：以 182,223,560 为基数，向 全体股东每 10 股派发现金红利 5 元（含税），送红股 0 股（含税），以资本公积 2 浙江天宇药业股份有限公司 2019 年年度报告全文 目录 | --- | |------------------------------------------------------------------------------------------------------ ...

浙江天宇药业股份有限公司 2020 年第一季度报告全文 浙江天宇药业股份有限公司 2020 年第一季度报告 2020 年 04 月 1 浙江天宇药业股份有限公司 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。 公司负责人屠勇军、主管会计工作负责人王艳及会计机构负责人(会计主管 人员)王冲声明：保证季度报告中财务报表的真实、准确、完整。 2 浙江天宇药业股份有限公司 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 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---------------------------| | | 本报告期 | 上年同期 | 本 ...

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility [Board Statement](index=2&type=section&id=1.1%20Board%20Statement) The company's board, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, committing to bear corresponding legal responsibilities, with all directors attending the review meeting - Company management guarantees the report's content is true, accurate, and complete, assuming legal responsibility[4](index=4&type=chunk) - The company's principal officer, head of accounting, and head of accounting department all declare the financial statements are true, accurate, and complete[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=Item%202.%20Company%20Overview) The company achieved significant growth in the first three quarters of 2019, with substantial increases in revenue, net profit, and operating cash flow, alongside a detailed shareholder structure [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant growth in the first three quarters of 2019, with revenue increasing by 57.71% and net profit attributable to shareholders surging by 463.43%, demonstrating strong business momentum and profitability Key Financial Indicators for Q1-Q3 2019 | Indicator | Year-to-Date | YoY Change | | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,582,829,453.57 | 57.71% | | Net Profit Attributable to Shareholders (RMB) | 444,333,030.03 | 463.43% | | Net Cash Flow from Operating Activities (RMB) | 389,943,577.74 | 11,306.59% | | Basic Earnings Per Share (RMB/share) | 2.48 | 463.64% | | Weighted Average Return on Net Assets | 26.71% | Increased by 20.74 percentage points | Non-Recurring Gains and Losses Items | Item | Amount Year-to-Date (RMB) | Explanation | | :--- | :--- | :--- | | Disposal Gains/Losses on Non-Current Assets | -1,877,640.31 | Primarily from disposal of matured and prematurely scrapped fixed assets | | Government Grants Recognized in Current P&L | 12,873,253.71 | Primarily from social security refunds and government grants received | | **Total** | **8,048,340.23** | - | [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the end of the reporting period, the company had 16,563 common shareholders, with Ms. Lin Jie as the largest shareholder (39.25%) and Mr. Tu Yongjun as the second largest (14.22%), both having a portion of their shares pledged - At the end of the reporting period, the company had **16,563** common shareholders[13](index=13&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Lin Jie | Domestic Natural Person | 39.25% | 71,530,819 | Pledged 10,200,000 | | Tu Yongjun | Domestic Natural Person | 14.22% | 25,905,753 | Pledged 9,500,000 | | Zhejiang Taizhou Shengting Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 6.57% | 11,969,414 | - | | Tu Shanzeng | Domestic Natural Person | 3.19% | 5,821,698 | - | | Wang Juqing | Domestic Natural Person | 3.19% | 5,821,697 | - | [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) This section details significant changes in key financial data and their underlying causes, along with the company's positive full-year performance forecast for 2019 [Analysis of Significant Changes in Financial Data and Reasons](index=6&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Their%20Causes) During the reporting period, the company experienced significant changes in multiple financial metrics, including a 57.71% increase in operating revenue due to raw material sales, a 11306.59% surge in net operating cash flow from increased collections, and a 67.19% rise in construction in progress due to increased investment in fundraising projects, while short-term borrowings decreased by 64.14% reflecting reduced financing Key Financial Indicators Changes and Reasons | Item | Change Rate | Reason | | :--- | :--- | :--- | | Operating Revenue | 57.71% | Increase in raw material sales revenue this period | | Construction in Progress | 67.19% | Increased investment in fundraising projects | | Short-term Borrowings | -64.14% | Reduced financing this period | | Net Cash Flow from Operating Activities | 11306.59% | Increased sales leading to increased collections | | Net Cash Flow from Investing Activities | -5897.93% | Increased investment in fundraising projects during the reporting period | | Net Cash Flow from Financing Activities | -701.83% | Reduced financing during the reporting period | [Full-Year Performance Forecast](index=7&type=section&id=V.%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period%20Compared%20to%20Prior%20Year) The company forecasts a significant increase in its cumulative net profit for the full year 2019 compared to 2018, based on the 444 million RMB net profit achieved in the first three quarters, stable main business development, and simultaneous increases in main business revenue and product gross margin - The company forecasts a significant increase in full-year net profit for **2019** compared to **2018**[27](index=27&type=chunk) - Key reasons for the substantial performance growth include: - Stable development of main business - Increase in main business revenue - Improvement in product gross margin[27](index=27&type=chunk) [Financial Statements](index=8&type=section&id=Item%204.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for Q3 2019, details adjustments due to new accounting standards, and confirms the report is unaudited [Financial Statements](index=8&type=section&id=I.%20Financial%20Statements) This chapter provides the company's consolidated and parent company financial statements for Q3 2019, including the balance sheet, income statement, and cash flow statement, showing total assets of **2.748 billion RMB**, total operating revenue of **1.583 billion RMB**, net profit attributable to parent company of **444 million RMB**, and net operating cash flow of **390 million RMB** as of September 30, 2019, indicating healthy financial status and excellent profitability and cash flow Consolidated Balance Sheet Key Data (2019-09-30) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 2,747,873,322.16 | | Total Liabilities | 859,813,311.33 | | Total Equity Attributable to Parent Company Owners | 1,888,060,010.83 | Consolidated Income Statement Key Data (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,582,829,453.57 | 1,003,654,707.97 | | Net Profit Attributable to Parent Company Owners | 444,333,030.03 | 78,862,136.44 | | Basic Earnings Per Share | 2.48 | 0.44 | Consolidated Cash Flow Statement Key Data (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 389,943,577.74 | 3,418,582.11 | | Net Cash Flow from Investing Activities | -164,378,640.67 | 2,835,126.80 | | Net Cash Flow from Financing Activities | -338,325,721.34 | 56,216,026.21 | [Explanation of Financial Statement Adjustments](index=27&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2019, the company adopted new financial instrument standards, retrospectively adjusting opening financial statements by reclassifying 'available-for-sale financial assets' to 'other equity instrument investments' and 'financial liabilities measured at fair value through profit or loss' to 'trading financial liabilities', without impacting total assets or net assets - The company adopted new financial instrument standards from **2019**, making corresponding adjustments to its opening financial statements[101](index=101&type=chunk) Key Accounting Subject Adjustments | Item Before Adjustment | Item After Adjustment | Adjustment Amount (RMB) | | :--- | :--- | :--- | | Available-for-Sale Financial Assets | Other Equity Instrument Investments | 10,637,100.00 | | Financial Liabilities Measured at Fair Value Through Profit or Loss | Trading Financial Liabilities | 16,727,807.50 | [Audit Report](index=33&type=section&id=III.%20Audit%20Report) The company's 2019 third-quarter report is unaudited - The company's third-quarter report is unaudited[121](index=121&type=chunk)

浙江天宇药业股份有限公司 2019 年半年度报告全文 浙江天宇药业股份有限公司 2019 年半年度报告 2019 年 08 月 1 浙江天宇药业股份有限公司 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。 公司负责人屠勇军、主管会计工作负责人王艳及会计机构负责人(会计主管 人员)王冲声明：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。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 浙江天宇药业股份有限公司 2019 年半年度报告全文 目录 | --- | |--------------------------------------------------------------------------------------------------------------------------------------------| | | | 2019 年半年度报告 | | 第一节 重 ...

浙江天宇药业股份有限公司 2018 年年度报告全文 浙江天宇药业股份有限公司 2018 年年度报告 2019 年 04 月 1 浙江天宇药业股份有限公司 2018 年年度报告全文 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、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人屠勇军、主管会计工作负责人王艳及会计机构负责人(会计主管 人员)王冲声明：保证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。 本公司请投资者认真阅读本年度报告全文，并特别注意下列风险因素： 1、市场竞争的风险 | --- | |----------------------------------------------------------------------| | | | 原料药及医药中间体是公司核心业务，该行业的国际化分工合作特征十分 | | 明显。随着全球仿制药市场的蓬勃发展和国际原料药产业加快向发展中国家转 | | 移，中国和印度依靠成本优势迅速成长为主要原料药生产和出口国家。随着市 | | 场 ...

浙江天宇药业股份有限公司 2019 年第一季度报告全文 浙江天宇药业股份有限公司 2019 年第一季度报告 2019 年 04 月 1 浙江天宇药业股份有限公司 2019 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。 公司负责人屠勇军、主管会计工作负责人王艳及会计机构负责人(会计主管 人员)王冲声明：保证季度报告中财务报表的真实、准确、完整。 2 浙江天宇药业股份有限公司 2019 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 追溯调整或重述原因 | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------|---------------------------------|---------- ...

[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].

Financial Performance - The company's operating revenue for 2017 was approximately ¥1.19 billion, representing a 9.79% increase from ¥1.08 billion in 2016[25]. - The net profit attributable to shareholders decreased by 18.11% to approximately ¥100.18 million from ¥122.34 million in 2016[25]. - The net cash flow from operating activities fell by 46.27% to approximately ¥88.52 million compared to ¥164.74 million in 2016[25]. - Basic earnings per share decreased by 24.26% to ¥1.03 from ¥1.36 in 2016[25]. - Total assets increased by 39.05% to approximately ¥2.11 billion from ¥1.52 billion in 2016[25]. - The net assets attributable to shareholders rose by 112.03% to approximately ¥1.29 billion from ¥607.31 million in 2016[25]. - The company reported a quarterly revenue of ¥286.59 million in Q1, ¥322.43 million in Q2, ¥273.96 million in Q3, and ¥305.31 million in Q4 of 2017[27]. - The net profit attributable to shareholders in Q4 was negative at approximately -¥5.93 million, contrasting with positive profits in the first three quarters[27]. - The weighted average return on equity decreased to 12.64% from 22.25% in 2016, a decline of 9.61%[25]. - The company reported a non-operating income of 4,798,872.45 in 2017, a decrease of 10.4% from 5,358,344.81 in 2016[31]. - Government subsidies recognized in the current period amounted to 8,813,183.94 in 2017, up 25% from 7,058,387.03 in 2016[31]. Business Operations - The company’s main business includes the R&D, production, and sales of chemical raw materials and intermediates, with no significant changes reported during the period[35]. - The company primarily exports its products to Europe, the USA, Japan, and South Korea, with a focus on direct sales to end pharmaceutical manufacturers[38]. - The production cycle for products typically ranges from 10 days to 1 month, with production plans based on order demand and inventory levels[37]. - The company employs a centralized procurement model to enhance the quality and cost control of raw materials, aiming for a "just-in-time" inventory management[36]. - CMO business operations are based on a "sales-driven production" model, aligning production schedules with customer orders[40]. - The company has established a three-party cooperation model with domestic and foreign trade companies to enhance its market reach and customer base[39]. - The company’s non-CMO business includes the production of antihypertensive and antiviral drug intermediates, which are in high demand[35]. Market Position and Competition - The market for raw materials and intermediates is becoming increasingly competitive, with new entrants and stronger competitors impacting the company's market position[6]. - The company has a significant reliance on the sales of sartan raw materials, which poses a risk if market demand shifts or if new alternative treatments emerge[13]. - The company’s strategic focus includes expanding its product range and enhancing its CMO services to mitigate risks associated with market concentration[8]. - The company is one of the largest domestic suppliers of sartan-based antihypertensive raw materials and intermediates, with significant export volumes[42]. Research and Development - The company has invested in R&D to enhance its capabilities, but the increasing costs and regulatory requirements for new product development may hinder profitability[12]. - The company has obtained 13 invention patents, emphasizing its commitment to technological innovation and product registration capabilities[44]. - The company has reduced the use of chemical solvents by nearly 20% compared to traditional processes, significantly lowering production costs and pollution[47]. - The company has developed a wide range of cardiovascular drug products, enhancing its scale advantages in procurement and cost control[46]. - The company’s market position is strengthened by its focus on R&D and innovation, particularly in sartan raw materials since 1999[45]. - The company completed 5 process validations for raw materials and initiated 13 new R&D projects during the reporting period[73]. - The company invested ¥59,20.98 million in R&D, focusing on developing new products and optimizing production processes[55]. - The number of R&D personnel increased to 275 in 2017, accounting for 10.33% of the workforce[73]. Quality Management - The company has established a comprehensive quality management system in compliance with national GMP standards, but faces risks if quality control does not keep pace with business growth[10]. - The company’s product quality control is critical due to the direct impact on human health, and any lapses could lead to severe operational risks[9]. - The company has established a comprehensive quality management system in compliance with both domestic and international drug regulatory standards[47]. Financial Management and Investments - The company plans to distribute cash dividends of 1.50 RMB per 10 shares and increase capital by 5 shares for every 10 shares held, based on a total of 120,000,000 shares[13]. - The company raised a total of RMB 67,230.00 million from the public offering of 30 million shares at RMB 22.41 per share, with a net amount of RMB 60,986.87 million after deducting issuance costs of RMB 6,243.13 million[90]. - The company has approved the use of up to RMB 310 million of idle raised funds for cash management, with RMB 280 million invested in structured financial products and RMB 30 million in fixed-term deposits[92]. - The company has a commitment to invest RMB 60,987 million in various projects, with a total investment of RMB 25,471.07 million completed as of the reporting date[94]. - The company has strict management over the use and storage of raised funds, ensuring that unutilized funds are kept in designated accounts[95]. Corporate Governance - The company has established a governance structure consisting of a shareholders' meeting, board of directors, and supervisory board, complying with relevant laws and regulations[191]. - The board of directors includes 7 members, with 3 independent directors, ensuring compliance with governance standards[193]. - The company maintains complete independence from its controlling shareholders in terms of business, personnel, assets, and finances[195]. - The company has established four specialized committees under the board to enhance decision-making processes[193]. - The independent directors did not raise any objections to company matters during the reporting period, indicating alignment with company decisions[198]. Environmental Responsibility - The company is focused on developing green chemical and pharmaceutical practices to minimize environmental impact[146]. - The company has established a wastewater treatment facility that meets production needs and emergency capabilities[151]. - The company has a complete hazardous waste storage facility and maintains proper records for hazardous waste disposal[151]. - The company conducts regular environmental training and emergency drills to enhance employee awareness and response capabilities[151]. - The company has implemented an environmental self-monitoring plan and publicly shares monitoring data on a provincial platform[151].

Financial Performance - Total revenue for Q1 2018 was ¥298,917,193.40, an increase of 4.30% compared to ¥286,586,739.31 in the same period last year[8] - Net profit attributable to shareholders decreased by 34.66% to ¥20,352,087.59 from ¥31,148,070.91 year-on-year[8] - Net profit after deducting non-recurring gains and losses fell by 53.19% to ¥13,544,509.08 compared to ¥28,932,875.66 in the previous year[8] - Basic earnings per share decreased by 51.43% to ¥0.170 from ¥0.350 in the same period last year[8] - The company achieved operating revenue of 298.92 million yuan, an increase of 4.30% compared to the same period last year[25] - The net profit attributable to shareholders was 20.35 million yuan, a decrease of 34.66% compared to the same period last year[25] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 13.54 million yuan, down 53.19% year-on-year[25] Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥49,480,376.47, worsening by 43.45% from -¥34,493,598.00 in the previous year[8] - Cash received from tax refunds was 10.20 million yuan, an increase of 80.22% due to higher export tax rebates[24] - Cash received from investment income was 58.76 million yuan, a 193.71% increase attributed to returns on idle raised funds[24] - The company reported a 32.65% increase in cash and cash equivalents, totaling 291.86 million yuan, due to increased fundraising[23] - The cash flow from operating activities for Q1 2018 was negative at -¥49,480,376.47, compared to -¥34,493,598.00 in the same period last year[56] - The company reported a net increase in cash and cash equivalents of 12,352,276.43 CNY, contrasting with a decrease of -7,358,047.15 CNY in the same quarter last year[60] - The ending balance of cash and cash equivalents was 115,542,329.02 CNY, compared to 32,655,914.54 CNY at the end of the previous year, showing a strong liquidity position[60] Shareholder Information - Total number of common shareholders at the end of the reporting period is 23,079[16] - The largest shareholder, Lin Jie, holds 39.96% of shares, totaling 47,951,435 shares[16] - The second largest shareholder, Tu Yongjun, holds 13.91% of shares, totaling 16,686,633 shares[16] - Zhejiang Taizhou Shenting Investment Co., Ltd. holds 6.69% of shares, totaling 8,023,822 shares[16] - The top 10 shareholders collectively hold a significant portion of the company's equity, with the largest three shareholders accounting for over 60%[16] - No repurchase agreements were conducted by the top 10 common shareholders during the reporting period[20] - The total number of restricted shares at the beginning of the period was 90,000,000, with no changes during the reporting period[20] - All restricted shares are subject to a lock-up period ending on September 19, 2020[19] Assets and Liabilities - The company's total assets increased by 6.05% to ¥2,234,157,895.09 from ¥2,106,652,190.74 at the end of the previous year[8] - The total current assets increased to CNY 1,368.56 million from CNY 1,257.40 million, reflecting a growth of approximately 8.83%[40] - The total liabilities increased from CNY 1,020.73 million to CNY 1,368.56 million, indicating a rise of about 34.14%[41] - The company's cash and cash equivalents rose to CNY 291.86 million from CNY 220.03 million, marking an increase of approximately 32.5%[40] - The accounts receivable increased to CNY 218.62 million from CNY 208.40 million, showing a growth of about 4.9%[40] - The inventory level increased to CNY 492.43 million from CNY 461.07 million, reflecting an increase of approximately 6.8%[40] - The fixed assets decreased slightly from CNY 606.18 million to CNY 602.87 million, a decline of about 0.51%[41] Risks and Challenges - The company faces risks from increased market competition and reliance on a concentrated product category, particularly in sartan raw materials[11] - The report was not audited, which may affect the reliability of the financial data presented[61] Investment and Development - The company has not reported any new product developments or market expansions in this quarter[22] - There are no indications of mergers or acquisitions in the current reporting period[22] - The company has no reported violations regarding the use of raised funds[34] - There are no significant changes in the feasibility of the investment projects reported[32]