2021-04-26 16:00Important Notice The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, committing to legal responsibility Board Statement The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, committing to legal responsibility, with all directors attending the review meeting, and the report being unaudited - The company's management guarantees the report's content is true, accurate, and complete, free from false records, misleading statements, or major omissions3 - This company's Q1 2021 report is unaudited3 Company Profile This section provides an overview of the company's key financial performance and shareholder structure for the reporting period Key Financial Data In Q1 2021, the company achieved operating revenue of RMB 8.056 billion, a 37.00% year-on-year increase, with net profit attributable to shareholders growing 46.78% to RMB 847 million, driven by new product sales and post-pandemic recovery Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 8,056,120,184.43 | 5,880,507,166.48 | 37.00% | | Net Profit Attributable to Shareholders (RMB) | 847,185,598.42 | 577,198,049.34 | 46.78% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 657,950,164.25 | 436,418,344.88 | 50.76% | | Net Cash Flow from Operating Activities (RMB) | 736,760,723.49 | 382,496,482.94 | 92.62% | | Basic Earnings Per Share (RMB/share) | 0.33 | 0.23 | 43.48% | | Weighted Average Return on Net Assets (%) | 2.27% | 1.81% | Increased by 0.46 percentage points | - Key drivers for performance growth include sales contributions from new and sub-new products like Hanlikang (Rituximab Injection), Sukexin (Avatrombopag Maleate Tablets), and Hanquyou (Trastuzumab for Injection), alongside a recovery in revenue and profit from a lower base affected by the pandemic in the prior year period6 - Net cash flow from operating activities increased by 92.62% year-on-year, primarily due to increased operating cash flow from revenue and profit growth, and initial payments received from the Hong Kong and Macau governments for mRNA COVID-19 vaccines6 Total Shareholders and Shareholding Structure As of the end of the reporting period, the company had 322,965 shareholders, with Shanghai Fosun High-Tech (Group) Co., Ltd. as the largest shareholder, holding 36.60% - As of the end of the reporting period, the company had 322,965 shareholders10 Top Ten Shareholders' Shareholding | Shareholder Name | Number of Shares (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | | Shanghai Fosun High-Tech (Group) Co., Ltd. | 938,095,290 | 36.60 | | HKSCC NOMINEES LIMITED | 551,319,347 | 21.51 | | Hong Kong Securities Clearing Company Limited | 45,497,921 | 1.78 | | China Securities Finance Corporation Limited | 38,736,079 | 1.51 | | Central Huijin Asset Management Co., Ltd. | 24,067,700 | 0.94 | Significant Matters This section details significant changes in financial statement items and key corporate actions during the reporting period Analysis of Significant Changes in Key Financial Statement Items and Indicators During the reporting period, several financial statement items showed significant changes, with contract liabilities increasing 66.99% due to higher prepayments, other current liabilities surging 2734.52% from ultra-short-term bond issuance, and operating cash flow net increasing 92.62% Major Changes in Balance Sheet Items | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Contract Liabilities | 66.99% | Increase in contract prepayments received during the reporting period | | Other Current Liabilities | 2,734.52% | Issuance of ultra-short-term financing bonds by the company during the reporting period | | Bonds Payable | 38.32% | New issuance of "21 Fuyuan 01" bonds and reclassification of some old bonds | | Other Non-current Liabilities | 82.92% | Receipt of initial payments for out-licensed products | Major Changes in Income Statement Items | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 37.00% | Contribution from new products and recovery growth post-pandemic | | Operating Cost | 44.93% | Increased in line with recovery growth in revenue | | Fair Value Change Income | 123.77% | Lower base in the prior year period due to disposal of financial assets | | Non-controlling Interests | 84.41% | Increased profit of non-wholly owned subsidiary Gland Pharma and increased shareholding of non-controlling interests after listing | Major Changes in Cash Flow Statement Items | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 92.62% | Increased operating cash flow due to revenue and profit growth, and initial payments for mRNA COVID-19 vaccines | | Net Cash Flow from Financing Activities | 80.05% | Issuance of ultra-short-term financing bonds during the reporting period | | Effect of Exchange Rate Changes on Cash | 462.25% | Fluctuation of foreign currency exchange rates during the reporting period | Progress of Significant Matters During the reporting period, the company advanced several capital operations and incentive plans, including the controlling shareholder's RMB 675 million H-share increase, a RMB 4.484 billion A-share private placement awaiting approval, successful issuance of RMB 1.6 billion corporate bonds and RMB 1.5 billion ultra-short-term financing bonds, and a proposed 2021 restricted A-share incentive plan - Controlling shareholder's increased holdings: Fosun High-Tech has cumulatively increased its holdings of 21,930,500 H-shares since December 1, 2020, totaling approximately RMB 675 million, representing about 0.86% of the total share capital18 - Private placement of A-shares: The adjusted total fundraising amount is not to exceed RMB 4.484 billion, with the application accepted by the CSRC, feedback responses submitted, and awaiting approval19 - Debt financing: Completed the issuance of RMB 1.6 billion corporate bonds '21 Fuyuan 01' and RMB 1.5 billion ultra-short-term financing bonds19 - Equity incentive: Launched the 2021 Restricted Stock Incentive Plan, proposing to grant no more than 2.4072 million restricted A-shares, pending approval by the general meeting of shareholders1920 Appendix This appendix provides the company's unaudited financial statements for the first quarter of 2021 Financial Statements This appendix includes the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021 Consolidated Balance Sheet As of March 31, 2021, the company's consolidated total assets were RMB 86.614 billion, a 3.50% increase from the beginning of the year, with net assets attributable to shareholders at RMB 37.698 billion, up 1.90% Consolidated Balance Sheet Summary (March 31, 2021) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 86,613,732,771.39 | | Total Liabilities | 39,623,721,239.47 | | Total Equity Attributable to Parent Company Owners | 37,697,529,615.18 | | Total Equity | 46,990,011,531.92 | Consolidated Income Statement In Q1 2021, the company achieved total operating revenue of RMB 8.056 billion, a 37.00% year-on-year increase, with net profit of RMB 979 million, of which RMB 847 million was attributable to parent company shareholders, growing 46.78%, and basic earnings per share at RMB 0.33 Consolidated Income Statement Summary (Q1 2021) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 8,056,120,184.43 | | Operating Profit | 1,159,464,118.49 | | Total Profit | 1,145,174,540.42 | | Net Profit | 978,656,638.13 | | Net Profit Attributable to Parent Company Owners | 847,185,598.42 | | Basic Earnings Per Share (RMB/share) | 0.33 | Consolidated Cash Flow Statement In Q1 2021, net cash flow from operating activities was RMB 737 million, a 92.62% year-on-year increase, with net cash outflow from investing activities of RMB 1.575 billion, net cash inflow from financing activities of RMB 1.203 billion, and period-end cash and cash equivalents balance of RMB 7.718 billion Consolidated Cash Flow Statement Summary (Q1 2021) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 736,760,723.49 | | Net Cash Flow from Investing Activities | -1,574,695,133.74 | | Net Cash Flow from Financing Activities | 1,202,916,178.59 | | Net Increase in Cash and Cash Equivalents | 393,235,221.66 | | Cash and Cash Equivalents at End of Period | 7,718,116,481.94 |