步长制药(603858) - 2020 Q3 - 季度财报

Important Notes Board Declaration and Audit Statement The company's management affirms the quarterly report's accuracy and completeness, with all directors attending the review, and notes that the report is unaudited - The company's management guarantees the truthfulness, accuracy, and completeness of the quarterly report, with no false records, misleading statements, or major omissions[4] - This company's Q3 2020 report is unaudited[4] Company Overview Major Financial Data As of September 30, 2020, total assets grew by 5.67%, while for the first three quarters, operating revenue increased by 9.78%, net profit by 3.46%, and operating cash flow decreased by 21.38% Major Financial Data for the First Three Quarters of 2020 | Indicator | First Three Quarters 2020 (CNY) | First Three Quarters 2019 (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 11,244,146,369.88 | 10,242,355,750.90 | 9.78% | | Net Profit Attributable to Shareholders of the Listed Company | 1,395,754,996.24 | 1,349,038,537.09 | 3.46% | | Net Cash Flow from Operating Activities | 1,499,855,724.38 | 1,907,753,315.56 | -21.38% | | Basic Earnings Per Share (CNY/share) | 1.2619 | 1.2056 | 4.67% | | Weighted Average Return on Net Assets (%) | 10.16% | 9.90% | Increased by 0.26 percentage points | - For the first three quarters of 2020, the company's total non-recurring gains and losses amounted to CNY 141 million, primarily from government subsidies[7] Shareholder Information As of the reporting period end, the company had 86,212 shareholders, with Buchang (Hong Kong) Holdings Limited as the largest at 43.01%, including pledged shares, and several top ten shareholders being foreign entities - As of the end of the reporting period, the company had 86,212 shareholders[8] Top Three Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | | Buchang (Hong Kong) Holdings Limited | 490,957,202 | 43.01 | | Shoucheng International (Hong Kong) Limited | 82,742,400 | 7.25 | | North Haven TCM Holding Limited | 32,062,680 | 2.81 | Significant Events Analysis of Significant Changes in Major Financial Statement Items and Indicators Significant changes occurred across financial statements, with balance sheet items like prepayments and accounts payable increasing due to consolidation, income statement items like operating costs and R&D expenses rising, and cash flow items reflecting active business expansion and capital operations Balance Sheet Item Change Analysis Balance sheet changes primarily reflect subsidiary consolidation and new revenue standard adoption, with significant increases in prepayments, accounts payable, development expenditures, and short-term borrowings, alongside reclassification of advances from customers Major Balance Sheet Change Items | Item Name | Change Rate (%) | Description | | :--- | :--- | :--- | | Prepayments | 437.45 | Primarily due to the impact of subsidiary Shanghai Hepu Medical Technology Co., Ltd | | Development Expenditures | 33.88 | Primarily due to increased capitalized R&D expenditures | | Short-term Borrowings | 41.25 | Primarily due to increased short-term bank borrowings | | Accounts Payable | 51.99 | Primarily due to the impact of subsidiary Shanghai Hepu Medical Technology Co., Ltd | | Advances from Customers | -100.00 | Due to the adoption of new revenue standards, amounts are reported under contract liabilities | Income Statement Item Change Analysis Income statement changes reflect business expansion and R&D investment, with operating costs and R&D expenses significantly increasing, while investment income sharply declined due to reduced equity method recognition Major Income Statement Change Items | Item Name | Change Rate (%) | Description | | :--- | :--- | :--- | | Operating Costs | 52.17 | Primarily due to the consolidation of subsidiary Shanghai Hepu Medical Technology Co., Ltd. into the income statement for this period | | Research and Development Expenses | 40.50 | Primarily due to a year-on-year increase in expensed R&D expenditures for this period | | Investment Income | -90.84 | Primarily due to a year-on-year decrease in investment income recognized under the equity method for this period | | Non-operating Expenses | -80.14 | Primarily due to a year-on-year decrease in external donations for this period | Cash Flow Statement Item Change Analysis Cash flow changes are significant, reflecting dynamic operating, investing, and financing activities, with substantial increases in cash paid for goods, cash received from other investing activities, and cash paid for dividends or interest Major Cash Flow Statement Change Items | Item Name | Change Rate (%) | Description | | :--- | :--- | :--- | | Cash Paid for Goods and Services | 101.88 | Primarily due to the consolidation of subsidiary Shanghai Hepu Medical Technology Co., Ltd. into the cash flow statement for this period | | Cash Received Relating to Other Investing Activities | 636.14 | Primarily due to the net negative cash payment for the acquisition of Zhejiang Huapai Biomedical Co., Ltd. being reported under this item for this period | | Cash Received from Investments | 123.47 | Primarily due to a year-on-year increase in cash received from minority shareholder investments by subsidiaries for this period | | Cash Paid for Dividends, Profits, or Interest Payments | 169.79 | Primarily due to a year-on-year increase in cash paid for dividend distribution for this period | Appendix Financial Statements This section presents the unaudited consolidated and parent company financial statements as of September 30, 2020, including balance sheets, income statements, and cash flow statements Consolidated Balance Sheet As of September 30, 2020, consolidated total assets were CNY 22.387 billion, total liabilities CNY 9.012 billion, and parent company equity CNY 13.249 billion, with significant goodwill, construction in progress, and fixed assets Consolidated Balance Sheet Summary (September 30, 2020) | Item | Amount (CNY) | | :--- | :--- | | Assets | | | Cash and Cash Equivalents | 1,698,821,281.79 | | Accounts Receivable | 1,418,441,685.85 | | Inventories | 2,114,785,899.50 | | Goodwill | 5,107,825,315.01 | | Total Assets | 22,386,878,731.36 | | Liabilities | | | Short-term Borrowings | 2,436,613,571.85 | | Accounts Payable | 1,747,334,464.19 | | Total Liabilities | 9,012,137,399.58 | | Shareholders' Equity | | | Total Equity Attributable to Parent Company Owners | 13,249,025,768.44 | Parent Company Balance Sheet As of September 30, 2020, the parent company's total assets were CNY 14.142 billion and total liabilities CNY 7.078 billion, with long-term equity investments and other receivables being the largest asset components Parent Company Balance Sheet Summary (September 30, 2020) | Item | Amount (CNY) | | :--- | :--- | | Assets | | | Other Receivables | 3,320,906,540.72 | | Long-term Equity Investments | 7,494,540,809.56 | | Total Assets | 14,141,667,746.79 | | Liabilities | | | Short-term Borrowings | 1,540,000,000.00 | | Other Payables | 4,187,651,088.43 | | Total Liabilities | 7,078,183,177.69 | Consolidated Income Statement For the first three quarters of 2020, the company reported total operating revenue of CNY 11.244 billion, total operating costs of CNY 9.651 billion, and a net profit of CNY 1.395 billion, with basic EPS at CNY 1.2619 Consolidated Income Statement Summary (First Three Quarters 2020) | Item | First Three Quarters 2020 (CNY) | First Three Quarters 2019 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 11,244,146,369.88 | 10,242,355,750.90 | | Total Operating Costs | 9,650,548,117.97 | 8,726,639,716.98 | | Of which: Selling Expenses | 5,958,840,357.02 | 6,048,868,152.12 | | Research and Development Expenses | 253,730,963.47 | 180,591,927.10 | | Net Profit | 1,395,330,542.10 | 1,361,481,758.01 | | Net Profit Attributable to Parent Company Shareholders | 1,395,754,996.24 | 1,349,038,537.09 | Parent Company Income Statement For the first three quarters of 2020, the parent company's operating revenue was CNY 1.633 billion, with net profit reaching CNY 1.825 billion, significantly boosted by CNY 1.856 billion in investment income Parent Company Income Statement Summary (First Three Quarters 2020) | Item | First Three Quarters 2020 (CNY) | | :--- | :--- | | Operating Revenue | 1,632,605,581.55 | | Investment Income | 1,855,553,261.73 | | Operating Profit | 1,880,680,184.19 | | Net Profit | 1,825,230,170.38 | Consolidated Cash Flow Statement For the first three quarters of 2020, net operating cash flow decreased by 21.38% to CNY 1.500 billion, with net outflows from investing and financing activities primarily for debt and dividends, resulting in a period-end cash balance of CNY 1.734 billion Consolidated Cash Flow Statement Summary (First Three Quarters 2020) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 1,499,855,724.38 | | Net Cash Flow from Investing Activities | -255,754,801.23 | | Net Cash Flow from Financing Activities | -1,328,276,556.49 | | Net Increase in Cash and Cash Equivalents | -84,189,325.48 | Parent Company Cash Flow Statement For the first three quarters of 2020, the parent company's net operating cash flow was CNY 286 million, with a significant net inflow from investing activities driven by investment income, and a net outflow from financing activities for debt and dividends Parent Company Cash Flow Statement Summary (First Three Quarters 2020) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 285,717,541.34 | | Net Cash Flow from Investing Activities | 1,504,864,549.04 | | Net Cash Flow from Financing Activities | -1,879,607,217.87 | | Net Increase in Cash and Cash Equivalents | -89,025,266.68 | Explanation of Adjustments for First-time Adoption of New Revenue Recognition Standards The company adopted new revenue recognition standards on January 1, 2020, retrospectively adjusting financial statements by reclassifying advances from customers to contract liabilities and other current liabilities, without impacting beginning retained earnings - Effective January 1, 2020, the company adopted new revenue standards, adjusting the consolidated balance sheet by increasing contract liabilities by CNY 164 million, increasing other current liabilities by CNY 21 million, and decreasing advances from customers by CNY 185 million[36] - Corresponding adjustments were made to the parent company balance sheet: contract liabilities increased by CNY 10.3161 million, other current liabilities increased by CNY 1.3411 million, and advances from customers decreased by CNY 11.6571 million[38]