云南白药(000538) - 2024 Q2 - 季度财报

Section I Important Notes, Table of Contents, and Definitions This section provides essential preliminary information for the report, including a table of contents and definitions of key terms Definitions This chapter defines key terms used in the report, including company entities, regulatory bodies, major shareholders, business partners, and the 'reporting period' (January 1 to June 30, 2024), providing a foundation for understanding the report content Key Term Definitions | Term | Definition | | :--- | :--- | | The Company, Company, or Yunnan Baiyao | Yunnan Baiyao Group Co., Ltd. | | New Huadu | New Huadu Industrial Group Co., Ltd. | | Yunnan Provincial Investment Holdings Group | Yunnan Provincial Investment Holdings Group Co., Ltd. | | Baiyao Holdings | Yunnan Baiyao Holdings Co., Ltd. | | Shanghai Pharmaceuticals | Shanghai Pharmaceuticals Holding Co., Ltd. | | OTC | Over The Counter | | Reporting Period | January 1, 2024 to June 30, 2024 | Section II Company Profile and Key Financial Indicators This section provides an overview of the company's profile and key financial performance metrics for the reporting period Company Profile This chapter provides the company's basic information, including its stock ticker 'Yunnan Baiyao', stock code '000538', listing exchange (Shenzhen Stock Exchange), legal representative, and contact details Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Yunnan Baiyao | | Stock Code | 000538 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Dong Ming | Key Accounting Data and Financial Indicators During the reporting period, the company achieved operating revenue of 20.455 billion yuan, a 0.72% year-on-year increase, and net profit attributable to shareholders of 3.189 billion yuan, up 12.76%, with net cash flow from operating activities significantly increasing by 44.84% to 3.262 billion yuan, indicating steady improvement in profitability and operational quality Key Financial Indicators for H1 2024 | Indicator | Current Reporting Period | Prior Year Same Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 20,455,286,287.52 | 20,309,372,850.07 | 0.72% | | Net Profit Attributable to Listed Company Shareholders (yuan) | 3,188,829,903.10 | 2,828,011,615.30 | 12.76% | | Net Profit Attributable to Listed Company Shareholders Excluding Non-recurring Gains and Losses (yuan) | 3,135,015,340.93 | 2,737,055,785.90 | 14.54% | | Net Cash Flow from Operating Activities (yuan) | 3,261,617,391.99 | 2,251,951,370.10 | 44.84% | | Basic Earnings Per Share (yuan/share) | 1.79 | 1.58 | 13.29% | | Weighted Average Return on Net Assets | 7.93% | 7.17% | Increased by 0.76 percentage points | Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's non-recurring gains and losses totaled 53.81 million yuan, primarily comprising government subsidies of 34.22 million yuan and other items such as time deposit interest and VAT reductions totaling 27.44 million yuan Details of Non-recurring Gains and Losses Items | Item | Amount (yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -1,658,086.88 | | Government Grants Recognized in Current Profit/Loss | 34,220,746.37 | | Gains/Losses from Changes in Fair Value of Financial Assets/Liabilities | -4,964,027.66 | | Gains/Losses from Entrusted Investments or Asset Management | 3,003,994.06 | | Other Non-operating Income and Expenses | -257,970.80 | | Other Gains/Losses Meeting the Definition of Non-recurring Items | 27,441,539.97 | | Total | 53,814,562.17 | Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, financial condition, and future outlook, as discussed by management Principal Businesses Engaged in by the Company During the Reporting Period The company's core business spans four major segments: pharmaceuticals, health products, traditional Chinese medicine resources, and pharmaceutical commercial distribution, achieving 20.455 billion yuan in operating revenue and 3.189 billion yuan in net profit attributable to shareholders in H1 2024, with the industrial segment showing improved profitability - The company holds 567 drug approval numbers, including 43 exclusive varieties, having transformed from a traditional Chinese medicine enterprise into a modern comprehensive health company with business covering natural medicines, health and daily chemicals, and health foods[20] - The company's core business comprises four major segments: pharmaceuticals, health products, traditional Chinese medicine resources, and Yunnan Provincial Pharmaceutical Company, focusing on orthopedic pain management, oral care, traditional Chinese medicinal material supply, and pharmaceutical distribution services[21][22] Overview of H1 2024 Operating Data | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 20.455 billion yuan | +0.72% | | Net Profit Attributable to Parent | 3.189 billion yuan | +12.76% | | Industrial Revenue Share | 37.41% | Increased by 0.49 percentage points | | Industrial Gross Margin | 67.37% | Increased by 3.10 percentage points | | Net Cash Flow from Operating Activities | 3.262 billion yuan | +44.84% | Analysis of Core Competencies The company's core competencies include a strong brand, professional talent, continuous innovation, a complete industrial chain, and extensive distribution channels, supporting its sustained growth and market leadership - Yunnan Baiyao is a Chinese time-honored brand with over 120 years of history, ranked among the top 25 most valuable pharmaceutical brands globally in 2024, and listed in Fortune China 500 for 15 consecutive years[41] - The company has established a standardized full industrial chain for strategic medicinal materials like Chonglou and Sanqi, achieving a closed-loop management from seedling selection to production and processing, effectively ensuring raw material quality and controlling price fluctuation risks[45] - The company's marketing network covers over 400,000 retail pharmacies nationwide, and it actively collaborates with major e-commerce platforms like Alibaba, JD.com, and Douyin to expand online OTC sales channels[46] Analysis of Principal Business In H1 2024, the company's principal business achieved steady growth, with industrial sales revenue increasing by 2.05% and gross margin rising by 3.10 percentage points to 67.37%, while net cash flow from operating activities significantly increased by 44.84% due to higher sales collections Year-on-Year Changes in Key Financial Data | Item | Current Reporting Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 20,455,286,287.52 | 0.72% | Industrial sales revenue increased by 154 million yuan | | Operating Cost | 14,462,809,950.85 | -1.70% | Industrial sales cost decreased by 183 million yuan | | Net Cash Flow from Operating Activities | 3,261,617,391.99 | 44.84% | Cash received from sales of goods and rendering of services increased by 1.389 billion yuan | | Net Cash Flow from Investing Activities | -205,582,688.32 | -166.95% | Increased cash paid for wealth management products and time deposits | Operating Revenue Composition (by Industry) | By Industry | Operating Revenue (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Industrial Sales Revenue | 7,652,967,384.61 | 37.41% | 2.05% | | Commercial Sales Revenue | 12,742,489,364.88 | 62.29% | -0.23% | Gross Margin of Principal Business | By Industry | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | | Industrial Sales Revenue | 67.37% | Increased by 3.10 percentage points | | Commercial Sales Revenue | 6.29% | Increased by 0.28 percentage points | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets reached 54.368 billion yuan, a 1.08% increase from the beginning of the period, with significant changes in trading financial assets due to wealth management product purchases and other current liabilities from ultra-short-term financing bond issuance Changes in Key Balance Sheet Items | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Change in Proportion from Prior Year-end | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,046,815,045.34 | 1.93% | +1.65% | Mainly due to the purchase of wealth management products in the current period | | Other Current Assets | 1,830,161,506.46 | 3.37% | -1.95% | Mainly due to the maturity of time deposits at the beginning of the period and conversion to demand deposits | | Other Current Liabilities | 1,698,311,110.99 | 3.12% | +2.13% | Mainly due to the issuance of ultra-short-term financing bonds in the current period | | Treasury Stock | 0.00 | 0.00% | -1.32% | Treasury stock cancelled in the current period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Amount Purchased in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 149,366,687.56 | 900,000,000.00 | 1,046,815,045.34 | | Other Non-current Financial Assets | 324,674,379.63 | 0.00 | 312,459,342.04 | | Total Financial Assets | 545,786,067.19 | 900,000,000.00 | 1,431,019,387.38 | Analysis of Investment Status During the reporting period, the company's total investment reached 4.085 billion yuan, a 292.31% year-on-year increase, with significant non-equity investments in the Shanghai International Center and Kunming R&D Platform, and a portfolio of Hong Kong-listed securities totaling approximately 261 million yuan Significant Non-equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Amount Invested in Current Reporting Period (yuan) | Cumulative Actual Investment Amount as of End of Reporting Period (yuan) | Project Progress | | :--- | :--- | :--- | :--- | :--- | | Yunnan Baiyao Shanghai International Center | Self-built | 87,706,087.92 | 655,131,190.91 | 61.00% | | Yunnan Baiyao R&D Platform - Kunming Center Construction Project | Self-built | 33,799,180.03 | 120,995,985.93 | 40.00% | | Total | -- | 121,505,267.95 | 776,127,176.84 | -- | Securities Investment Status | Security Abbreviation | Initial Investment Cost (yuan) | Book Value at Period End (yuan) | Profit/Loss for Reporting Period (yuan) | | :--- | :--- | :--- | :--- | | Jacobson Pharma Corporation | 238,699,200.00 | 118,648,400.00 | 2,652,240.00 | | Jianbeimiaomiao | 25,039,800.00 | 72,736,032.60 | 514,829.70 | | China Antibody | 354,119,828.19 | 69,424,712.74 | 24,768.48 | | Total | 617,858,828.19 | 260,809,145.34 | 3,191,838.18 | Analysis of Major Holding and Associate Companies The company's main profit sources are its core subsidiaries and associate companies, with Yunnan Provincial Pharmaceutical Co., Ltd. and Yunnan Baiyao Group Health Products Co., Ltd. contributing significantly to revenue and net profit, alongside investment income from Shanghai Pharmaceuticals Holding Co., Ltd Performance of Major Subsidiaries and Associate Companies | Company Name | Type | Principal Business | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Yunnan Provincial Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceutical Wholesale, Retail | 12,329,242,791.12 | 286,490,361.99 | | Yunnan Baiyao Group Health Products Co., Ltd. | Subsidiary | Production and Sales of Oral Care Products | 3,148,545,484.92 | 1,216,170,372.04 | | Shanghai Pharmaceuticals Holding Co., Ltd. | Associate Company | Pharmaceutical Product R&D, Manufacturing, and Sales | 139,413,145,524.43 | 3,597,363,036.62 | Risks Faced by the Company and Countermeasures The company faces risks from pharmaceutical policy changes, market uncertainties, R&D conversion, and external expansion, which it addresses through policy monitoring, operational efficiency improvements, focused R&D, and prudent strategic planning - The company faces four major risks: policy change risk, market uncertainty risk, innovation R&D outcome conversion risk, and external expansion risk[68][69][70][71] - Countermeasures include: strengthening policy tracking and interpretation, enhancing operational efficiency through full industrial chain advantages, prudently evaluating and focusing on key R&D projects, and scientifically and standardly managing external expansion risks[68][69][70][72] Section IV Corporate Governance This section details the company's corporate governance structure, including changes in directors, supervisors, and senior management during the reporting period Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's governance structure underwent significant changes, including the election of Mr. Zhang Wenxue as the new Chairman and the departure of several directors, supervisors, and senior executives due to personal reasons or work adjustments Summary of Senior Personnel Changes | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Zhang Wenxue | Chairman | Elected | 2024年02月23日 | Further improvement of the company's board governance structure | | Yin Pinyao | Former Chief Operating Officer, Senior Vice President | Dismissed | 2024年02月07日 | Resigned for personal reasons | | Chen Fashu | Former Director | Departed | 2024年05月22日 | Resigned due to work adjustment | | You Guanghui | Former Chairman of the Supervisory Board | Departed | 2024年05月22日 | Resigned due to work adjustment | Section V Environmental and Social Responsibility This section outlines the company's commitment and performance in environmental protection and social responsibility, including compliance with regulations and community engagement initiatives Significant Environmental Issues The company and its major subsidiaries are designated key pollutant-discharging units, strictly adhering to environmental laws and regulations, with all emissions within standards and no administrative penalties for environmental issues during the reporting period - The company and its subsidiaries strictly comply with all environmental laws and regulations, and have obtained all necessary environmental impact assessment approvals and pollutant discharge permits[81][82][83] - The company rigorously treats pollutants such as wastewater, exhaust gas, solid waste, and noise, with third-party environmental monitoring results for H1 2024 indicating all pollutant emissions were within standards[87] - The company has prepared and filed an 'Emergency Response Plan for Environmental Incidents', and there were no administrative penalties for environmental issues during the reporting period[90][91] Social Responsibility In H1 2024, the company actively fulfilled its social responsibilities by focusing on rural revitalization through Yunmuxiang cultivation technical training and investing in local infrastructure, leveraging its traditional Chinese medicine industrial chain advantages - Leveraging its industrial advantages, the company selected the Yunmuxiang cultivation project to support rural revitalization in designated assistance villages, providing comprehensive guidance from technical training to pest and disease control[92] - The company invested funds to support infrastructure development in assistance villages, including convenience service centers, party member activity rooms, and intangible cultural heritage museums, precisely targeting improvements in village appearance and strengthening grassroots organization building[93] Section VI Significant Matters This section details significant events and undertakings during the reporting period, including the fulfillment of commitments, changes in internal regulations, share repurchases, and progress in R&D projects Fulfillment of Commitments During the reporting period, all relevant parties, including major shareholders, continued to fulfill their commitments regarding avoiding horizontal competition, ensuring company independence, and regulating related-party transactions, with all commitments currently in progress - Commitments made by major shareholders, including Yunnan Provincial Investment Holdings Group Co., Ltd. and New Huadu Industrial Group Co., Ltd., regarding avoiding horizontal competition, ensuring the independence of the listed company, and regulating related-party transactions, remain valid and are being fulfilled[95][96][97] Explanation of Other Significant Matters During the reporting period, the company completed several significant matters, including revising internal rules, canceling repurchased shares, issuing 1 billion yuan in ultra-short-term financing bonds, and advancing R&D projects with new drug clinical trial approvals and project introductions - The company completed the cancellation of 12,599,946 repurchased shares in April 2024, with the total share capital reduced accordingly[118] - The company successfully registered 3 billion yuan in ultra-short-term financing bonds and completed the issuance of the first tranche of 1 billion yuan in March 2024[119] - Significant progress was made in the R&D pipeline, with INR101 Injection and Flurbiprofen Gel Patch receiving clinical trial approvals, and the antibody drug KA-1641 project introduced from Kangyuan Bio-Innovation[120][121] Section VII Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure, including major shareholders and their holdings Share Changes During the reporting period, the company's total share capital decreased from 1,796,862,549 shares to 1,784,262,603 shares due to the cancellation of 12,599,946 repurchased shares, aiming to protect investor interests and enhance shareholder returns Share Change Status | Share Class | Quantity Before This Change | Increase/Decrease in This Change | Quantity After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 11,567,358 | +3,295,210 | 14,862,568 | | II. Unrestricted Shares | 1,785,295,191 | -15,895,156 | 1,769,400,035 | | III. Total Shares | 1,796,862,549 | -12,599,946 | 1,784,262,603 | - The primary reason for the decrease in total shares is the company's completion of the cancellation of 12,599,946 repurchased shares in April 2024[124][125] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 177,126 common shareholders, with Yunnan Provincial State-owned Equity Operation and Management Co., Ltd. (25.20%) and New Huadu Industrial Group Co., Ltd. (24.42%) as the two largest shareholders, and no single actual controller Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period | | :--- | :--- | :--- | :--- | | Yunnan Provincial State-owned Equity Operation and Management Co., Ltd. | State-owned Legal Person | 25.20% | 449,624,311 | | New Huadu Industrial Group Co., Ltd. | Domestic Non-state-owned Legal Person | 24.42% | 435,742,244 | | Yunnan Hehe (Group) Co., Ltd. | State-owned Legal Person | 8.19% | 146,185,851 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 3.87% | 69,040,056 | Section VIII Preferred Shares Related Information This section confirms that the company did not have any preferred shares during the reporting period Preferred Shares Status During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[132] Section IX Bonds Related Information This section provides details on the company's bond issuances and key financial indicators related to its debt, demonstrating its solvency and financial health Non-financial Enterprise Debt Financing Instruments The company issued its first tranche of ultra-short-term financing bonds in March 2024, totaling 1 billion yuan with a 270-day term and a 2.30% coupon rate, primarily to support scientific innovation and rural revitalization initiatives Basic Information on 2024 First Tranche Ultra-short-term Financing Bonds | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (million yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | 24 Yunnan Baiyao SCP001 | 012480938 | 2024年3月18日 | 2024年12月15日 | 1,000 | 2.30% | Key Accounting Data and Financial Indicators for the Past Two Years As of the end of the reporting period, the company's asset-liability ratio was 27.55%, with strong short-term solvency indicated by current and quick ratios of 2.64 and 2.21 respectively, and an interest coverage ratio of 148.73, demonstrating robust debt servicing capability Key Financial Ratios | Item | End of Current Reporting Period | Prior Year-end | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 2.6405 | 2.8510 | -7.38% | | Asset-Liability Ratio | 27.55% | 25.80% | +1.75% | | Quick Ratio | 2.2066 | 2.3453 | -5.91% | | Interest Coverage Ratio | 148.73 | 176.72 | -15.84% | Section X Financial Report This section presents the company's unaudited consolidated and parent company financial statements for H1 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in equity Financial Statements This chapter includes the company's unaudited consolidated and parent company financial statements for H1 2024, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position as of June 30, 2024, and its operating results and cash flows for the first half of the year Consolidated Balance Sheet As of June 30, 2024, the company's total assets were 54.368 billion yuan, total liabilities were 14.977 billion yuan, and total equity attributable to parent company owners was 39.369 billion yuan, resulting in an asset-liability ratio of 27.55% Consolidated Balance Sheet Summary | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 54,367,545,232.24 | 53,784,293,183.93 | | Total Liabilities | 14,977,377,451.69 | 13,878,932,801.71 | | Total Equity Attributable to Parent Company Owners | 39,369,278,205.03 | 39,879,122,031.51 | Consolidated Income Statement In H1 2024, the company achieved total operating revenue of 20.455 billion yuan, total operating costs of 17.225 billion yuan, total profit of 3.672 billion yuan, and net profit of 3.190 billion yuan, with net profit attributable to parent company shareholders reaching 3.189 billion yuan, a 12.76% year-on-year increase Consolidated Income Statement Summary | Item | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 20,455,286,287.52 | 20,309,372,850.07 | | III. Operating Profit | 3,672,352,263.88 | 3,313,345,408.99 | | IV. Total Profit | 3,672,028,340.83 | 3,303,279,659.05 | | V. Net Profit | 3,189,962,850.96 | 2,826,258,821.44 | | Net Profit Attributable to Parent Company Shareholders | 3,188,829,903.10 | 2,828,011,615.30 | Consolidated Cash Flow Statement In H1 2024, net cash flow from operating activities was 3.262 billion yuan, a 44.84% increase; net cash flow from investing activities was -206 million yuan due to increased wealth management product purchases and time deposits; and net cash flow from financing activities was -3.146 billion yuan, primarily for dividend distribution, with cash and cash equivalents at period-end totaling 14.062 billion yuan Consolidated Cash Flow Statement Summary | Item | H1 2024 (yuan) | H1 2023 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,261,617,391.99 | 2,251,951,370.10 | | Net Cash Flow from Investing Activities | -205,582,688.32 | 307,088,767.49 | | Net Cash Flow from Financing Activities | -3,145,514,928.97 | -3,107,700,963.75 | | Net Increase in Cash and Cash Equivalents | -89,528,803.06 | -543,421,662.08 | Notes to Consolidated Financial Statements This chapter provides detailed explanations and data breakdowns for major items in the consolidated financial statements, including cash and bank balances of 14.720 billion yuan, accounts receivable of 10.105 billion yuan, and inventories of 5.988 billion yuan at period-end, along with disclosures on accounts receivable aging, bad debt provisions, and top five debtors Top Five Accounts Receivable at Period End | Entity Name | Accounts Receivable Ending Balance (yuan) | Proportion of Total | Bad Debt Provision Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Customer A | 579,199,157.84 | 5.25% | 29,047,575.78 | | Customer B | 517,022,973.03 | 4.69% | 25,851,148.65 | | Customer C | 502,808,431.77 | 4.56% | 108,369,219.66 | | Customer D | 455,792,184.11 | 4.13% | 45,957,928.05 | | Customer E | 353,041,718.38 | 3.20% | 82,687,528.92 | | Total | 2,407,864,465.13 | 21.83% | 291,913,401.06 | Inventory Classification | Item | Ending Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 1,508,487,954.11 | 1,779,539,130.99 | | Work-in-progress | 208,274,907.52 | 192,411,841.66 | | Merchandise Inventory | 4,138,362,233.08 | 4,377,121,577.98 | | Total | 5,988,059,390.20 | 6,442,194,823.67 | Supplementary Information This chapter provides supplementary financial information, including a detailed statement of non-recurring gains and losses totaling 53.81 million yuan, and key profitability metrics such as a weighted average return on net assets of 7.93% and basic earnings per share of 1.79 yuan attributable to common shareholders Current Period Non-recurring Gains and Losses Details | Item | Amount (yuan) | Notes | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -1,658,086.88 | | | Government Grants Recognized in Current Profit/Loss | 34,220,746.37 | | | Other Gains/Losses Meeting the Definition of Non-recurring Items | 27,441,539.97 | Mainly includes time deposit interest and VAT reductions | | Total | 53,814,562.17 | -- | Return on Net Assets and Earnings Per Share | Profit for Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 7.93% | 1.79 | 1.79 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-recurring Gains and Losses | 7.80% | 1.76 | 1.76 |