BUCHANG PHARMA(603858)2023-08-25 16:00Financial Performance - Revenue for the reporting period was 7.098 billion RMB, a decrease of 1.98% compared to the same period last year[15] - Net profit attributable to shareholders of the listed company was 818.38 million RMB, a decrease of 8.83% year-on-year[15] - Net cash flow from operating activities was 1.425 billion RMB, a decrease of 81.21% compared to the same period last year[15] - Total assets increased by 2.70% to 21.952 billion RMB compared to the end of the previous year[15] - The company's gross profit margin for the reporting period was 74.56%, a slight decrease of 0.34 percentage points compared to the same period last year[15] - The company's R&D expenses for the reporting period were 312 million RMB, accounting for 4.40% of total revenue[15] - The company's weighted average return on equity (ROE) increased by 0.34 percentage points to 5.52%[15] - Revenue for the first half of 2023 was RMB 69.58 billion, a decrease of 1.98% year-on-year, and net profit attributable to shareholders was RMB 7.46 billion, a decrease of 8.83% year-on-year[45] - Revenue for the reporting period was RMB 6.96 billion, a decrease of 1.98% year-over-year[48] - Operating costs decreased by 5.40% to RMB 2.18 billion compared to the same period last year[48] - Net cash flow from operating activities dropped significantly by 81.21% to RMB 267.86 million[48] - Operating revenue for the first half of 2023 was 6.96 billion RMB, slightly down from 7.10 billion RMB in the same period last year[126] - Net profit for the first half of 2023 was 683.58 million RMB, a decrease from 783.80 million RMB in the same period last year[128] - Research and development expenses were 100.30 million RMB, up from 99.55 million RMB in the previous year[126] - Interest expenses decreased to 52.55 million RMB from 72.85 million RMB in the previous year[128] - Basic earnings per share (EPS) for the first half of 2023 was 0.6746 RMB, down from 0.7399 RMB in the same period last year[128] - Total equity attributable to owners of the parent company was 10.07 billion RMB, slightly down from 10.21 billion RMB in the previous year[125] - Sales expenses increased to 3.38 billion RMB from 3.33 billion RMB in the previous year[126] - Other income decreased to 181.82 million RMB from 230.19 million RMB in the previous year[128] - R&D expenses increased to 15.89 million yuan, up 4.6% compared to the previous year[129] - Net profit reached 922.69 million yuan, a 21.6% increase year-over-year[129] - Operating cash flow decreased to 267.86 million yuan, down 81.2% from the previous year[130] - Investment cash flow turned positive at 43.01 million yuan, compared to a negative 273.58 million yuan in the previous year[131] - Financing cash flow improved to 44.17 million yuan, compared to a negative 262.55 million yuan in the previous year[131] - Cash and cash equivalents at the end of the period stood at 2.48 billion yuan, up 16.7% from the beginning of the period[131] - Sales revenue from goods and services reached 6.92 billion yuan, down 7.8% year-over-year[130] - Investment income increased to 877.77 million yuan, up 8.7% compared to the previous year[129] - Interest expenses decreased to 29.77 million yuan, down 37.0% year-over-year[129] - Total comprehensive income reached 922.72 million yuan, up 22.8% compared to the previous year[129] - Total comprehensive income for the first half of 2023 was RMB 682,987,695.35, with a decrease of RMB 593,320.80 in other comprehensive income[134] - Net profit attributable to the parent company decreased by RMB 315,662,689.31 in the first half of 2023[134] - Total owner's equity decreased by RMB 343,567,885.84 in the first half of 2023, primarily due to profit distribution of RMB 1,061,800,939.20[134] - Total comprehensive income for the first half of 2023 was RMB 775,882,426.40, with a decrease of RMB 7,922,407.86 in other comprehensive income[135] - Net profit attributable to the parent company increased by RMB 420,200,921.85 in the first half of 2023[135] - Total owner's equity increased by RMB 380,232,074.20 in the first half of 2023, despite a profit distribution of RMB 398,175,352.20[135] - Total comprehensive income for the first half of 2023 was RMB 922,716,833.92, with an increase of RMB 23,511.66 in other comprehensive income[137] - Net profit attributable to the parent company decreased by RMB 139,107,616.94 in the first half of 2023, primarily due to profit distribution of RMB 1,061,800,939.20[137] - Total owner's equity decreased by RMB 139,084,105.28 in the first half of 2023[137] - Total comprehensive income for the first half of 2023 was RMB 751,499,813.54, with a decrease of RMB 7,422,708.96 in other comprehensive income[138] Product and Market Performance - The combined revenue of the seven major products (including Brain Heart Tong Capsule, Wenxin Granule, and Danhong Injection) reached 4.461 billion RMB in the first half of 2023[18] - The combined sales revenue of the company's four exclusive products in the cardiovascular and cerebrovascular drug field reached 3.863 billion yuan in the first half of 2023[31] - The company's Brain Heart Tongue Capsule, Wenxin Granule, and Danhong Injection ranked among the top 20 in the market share of cardiovascular and cerebrovascular TCM in 2022[32] - The company's key products, including Naoxintong Capsules and Danhong Injection, generated combined revenue of RMB 4.46 billion in the first half of 2023[46] - The company's main products include Danhong Injection, Naoxintong Capsules, and Wenxin Granules[149] Research and Development - The company's R&D expenses for the reporting period were 312 million RMB, accounting for 4.40% of total revenue[15] - The company has 453 valid patents and 216 products under research, with some biological products entering Phase II or III clinical trials[33][35] - The company has 17 biological products under development, some of which have entered Phase II or III clinical trials, covering areas such as tumors, osteoporosis, anemia, and arthritis[40] - The company holds 4 vaccine products and is developing 5 additional vaccine products, including quadrivalent influenza virus split vaccines and varicella and herpes zoster vaccines[40] - The company filed 7 new patent applications and was granted 25 patents, including 19 invention patents, in the first half of 2023[47] - The company is actively developing advanced dosage forms in the chemical drug sector and focusing on generic drugs for NMPA and FDA approval[40] - The company is advancing evidence-based medical research for its leading products to enhance market reputation and drive sales growth[46] - The company is leveraging its "brain-heart co-treatment" theory to develop complementary multi-target combination therapies for cardiovascular and cerebrovascular diseases[40] - The company is strengthening its global presence by conducting research activities both domestically and internationally[40] Environmental and Social Responsibility - The company's wastewater treatment facilities discharged chemical oxygen demand (COD) at 83.8 mg/L, totaling 24.08 tons, and ammonia nitrogen at 0.873 mg/L, totaling 0.251 tons in the first half of 2023[72] - Shandong Kang'ai Pharmaceutical discharged COD at 126.5 mg/L, totaling 13.4 tons, and ammonia nitrogen at 2.05 mg/L, totaling 0.219 tons in the first half of 2023[72] - The company has six subsidiaries listed as key pollutant discharge units by environmental protection authorities, including Shandong Kang'ai Pharmaceutical and Yangling Buchang Pharmaceutical[70] - The chemical oxygen demand (COD) emission concentration at the main wastewater discharge outlet of Baoding Tianhao Pharmaceutical is 151mg/L, with a total emission of 1.9 tons in the first half of the year[74] - The ammonia nitrogen emission concentration at the main wastewater discharge outlet of Baoding Tianhao Pharmaceutical is 1.19mg/L, with a total emission of 0.015 tons in the first half of the year[74] - The nitrogen oxides emission concentration at the main wastewater discharge outlet of Baoding Tianhao Pharmaceutical is 28mg/m³, with a total emission of 0.244 tons in the first half of the year[74] - The chemical oxygen demand (COD) emission concentration at the main wastewater discharge outlet of Liaoning Aoda Pharmaceutical is 45.21mg/L, with a total emission of 3.77 tons in the first half of the year[75] - The ammonia nitrogen emission concentration at the main wastewater discharge outlet of Liaoning Aoda Pharmaceutical is 0.26mg/L, with a total emission of 0.019 tons in the first half of the year[75] - The nitrogen oxides emission concentration at the main wastewater discharge outlet of Liaoning Aoda Pharmaceutical is 28.8mg/m³, with a total emission of 0.272 tons in the first half of the year[75] - The chemical oxygen demand (COD) emission concentration at the main wastewater discharge outlet of Shandong Danhong Pharmaceutical is 83.8mg/L, with a total emission of 8.296 tons in the first half of the year[75] - The ammonia nitrogen emission concentration at the main wastewater discharge outlet of Shandong Danhong Pharmaceutical is 0.873mg/L, with a total emission of 0.086 tons in the first half of the year[75] - The chemical oxygen demand (COD) emission concentration at the main wastewater discharge outlet of Yangling Buchang Pharmaceutical is 68mg/L, with a total emission of 1.9 tons in the first half of the year[77] - The ammonia nitrogen emission concentration at the main wastewater discharge outlet of Yangling Buchang Pharmaceutical is 21.09mg/L, with a total emission of 0.59 tons in the first half of the year[77] - Shandong Buchang Pharmaceutical's GMP relocation and reconstruction project passed environmental protection acceptance (Hehuan Acceptance [2004] No. 10)[81] - Shandong Buchang Pharmaceutical's Wenxin series product production base project passed environmental protection acceptance (Hehuan Acceptance [2014] No. 0105)[81] - Shandong Buchang Pharmaceutical's drug technology R&D center construction project passed environmental protection acceptance (Hehuan Acceptance [2014] No. 23)[81] - Shandong Buchang Pharmaceutical's energy utilization project for traditional Chinese medicine residues and other waste passed environmental protection acceptance (Hehuan Acceptance [2018] No. 15)[81] - Shandong Buchang Pharmaceutical's secondary system expansion project passed environmental protection acceptance on January 14, 2023[81] - Shandong Kangai Pharmaceutical's small-volume injection and freeze-dried powder injection production project passed environmental protection acceptance (Hehuan Acceptance [2012] No. 16)[82] - Shandong Kangai Pharmaceutical's freeze-dried production line and water injection line renovation project received environmental impact report approval (Hehuan Approval [2014] No. 46)[82] - Shandong Kangai Pharmaceutical's project to produce 6 million units of injectable parecoxib sodium annually received environmental impact report approval (Hehuan Gao Report [2020] No. 27)[82] - Liaoning Aoda Pharmaceutical's project to produce 6,000 tons of new pharmaceutical excipients annually passed environmental protection acceptance (Yingbian Huan Approval [2011] No. 41)[82] - Liaoning Aoda Pharmaceutical's project to produce 10 million boxes of Mudan granules annually completed phased self-acceptance in July 2019[82] - All environmental monitoring indicators for Baoding Tianhao Pharmaceutical, Liaoning Aoda Pharmaceutical, Shandong Danhong Pharmaceutical, and Yangling Buchang Pharmaceutical were tested by qualified third-party companies and met national and local standards, with stricter controls in place to ensure compliance[88][89] - Yangling Buchang Pharmaceutical installed 114 solar photovoltaic street lamps, reducing carbon emissions by 1.8 tons[94] - Shandong Buchang Pharmaceutical's secondary system expansion project used 163 solar photovoltaic street lamps, reducing carbon emissions by 4.9 tons[94] - Liaoning Aoda Pharmaceutical's 407.16KW photovoltaic power generation project, operational since July 14, 2022, generated 331,800 kWh in the first half of 2023, reducing carbon emissions by 149.31 tons[94] - The company's subsidiaries have established comprehensive environmental management systems, maintained pollution prevention facilities, and ensured all emissions met standards[91] Corporate Governance and Shareholder Information - The company's controlling shareholder, actual controller, and other major shareholders have committed to avoiding competition with the company and its subsidiaries, with long-term effective commitments[96][97][98] - The company has established a mechanism to address unfulfilled commitments, including timely disclosure, supplementary or alternative commitments, and compensation for losses[99][100][101][102] - The company's controlling shareholder, Buchang (Hong Kong), will strictly fulfill all public commitments made during the IPO and accept social supervision[99] - The company's actual controller, Zhao Tao, will strictly fulfill all public commitments made during the IPO and accept social supervision[100] - The company's directors, supervisors, and senior management will strictly fulfill all public commitments made during the IPO and accept social supervision[101] - The company has no non-operational fund occupation by controlling shareholders or other related parties during the reporting period[103] - The company has no illegal guarantee situations during the reporting period[103] - The company has no major litigation or arbitration matters during the reporting period[105] - The company has no significant changes or handling of non-standard audit opinion matters from the previous annual report[104] - The company has no bankruptcy reorganization-related matters during the reporting period[104] - The company has no significant changes in the integrity status of the company, its controlling shareholders, or actual controllers during the reporting period[105] - The company's total number of ordinary shareholders at the end of the reporting period is 69,677[115] - The largest shareholder, Buchang (Hong Kong) Holdings Limited, holds 490,957,202 shares, representing 44.39% of the total shares[116] - The second-largest shareholder, Shoucheng International (Hong Kong) Limited, holds 82,742,400 shares, representing 7.48% of the total shares[117] - The third-largest shareholder, Hong Kong Securities Clearing Company Limited, holds 32,566,308 shares, representing 2.94% of the total shares[117] - The company's total guarantee amount for subsidiaries during the reporting period is 15,000.00 million yuan[113] - The total guarantee balance for subsidiaries at the end of the reporting period is 144,114.95 million yuan[113] - The company's total guarantee amount (A+B) is 144,114.95 million yuan, accounting for 11.96% of the company's net assets[113] - The guarantee amount for entities with a debt-to-asset ratio exceeding 70% is 121,874.95 million yuan[113] Industry and Market Trends - China's pharmaceutical manufacturing industry's total revenue in 2022 was 3,250.38 billion yuan, a year-on-year increase of 0.22%, with a significant decline in the biological drug sector[20] - The chemical drug raw material industry's revenue in 2022 was 507.71 billion yuan, a year-on-year increase of 15.00%[21] - The biological drug industry's revenue in 2022 was 397.7 billion yuan, a year-on-year decrease of 32.80%[21] - The total profit of China's pharmaceutical manufacturing industry in 2022 was 503.84 billion yuan, a year-on-year decrease of 26.73%, with the biological drug manufacturing industry's profit decreasing by 69.40%[23] - The cardiovascular and cerebrovascular disease drug market accounted for 32.28% of the clinical terminal drug market in 2022[25] - The gynecological drug market accounted for 5.77% of the urban public hospital market and 7.46% of the county-level public hospital market in 2022[27] - The top 20 gynecological drugs in the Chinese market in 2022 were led by Yimucao with a market share of 5.72%[28] - The tumor disease drug market accounted for 7.31% of the clinical terminal drug market in 2022[26] - Sales of traditional Chinese medicine (TCM) for tumor treatment have remained stable in recent years, with sales of 1,835,670 million yuan in 2022, down 6.24% from 2021[30] - The revenue of biological drugs in 2022 was 397.7 billion yuan, a year-on-year decrease of 32.80%, with a total profit of 90.43 billion yuan, down 69.40% year-on-year[30] Investments and Subsidiaries - The company invested a total of RMB 816.8 million in significant equity investments, including in Changrui Biotech (Chengdu) and Xi'an Buchang Qihang Pharmacy[53] - Changrui Biotech (Chengdu) saw a loss impact of RMB 211.22 million during the reporting period[53] - The fair value of financial assets measured at fair value decreased to RMB 1.31 billion, with trading financial assets accounting for RMB 457.63 million[55] - The company's total investment in Changrui Biotech (Chengdu) reached RMB 72 million, representing a 72% stake[54] - The company transferred 90% equity of its subsidiary, Buzhang Taoyun Health Technology (Hangzhou), to Zhao Yunhua for RMB 1, resulting in the company no longer holding any equity in the subsidiary[57] - The company's total investment in the fund "Nuoan Youxuan Return Hybrid" (证券代码: