2018-08-17 16:00Financial Performance - Livzon Pharmaceutical Group reported that it will not distribute interim cash dividends or bonus shares for the current period[6]. - The company's operating revenue for the current period is RMB 4,564,703,491.43, representing a 6.78% increase compared to the previous period's RMB 4,274,758,446.48[23]. - The net profit attributable to shareholders for the current period is RMB 633,354,295.53, which is a 25.66% increase from RMB 504,002,522.78 in the previous period[23]. - The net cash flow from operating activities for the current period is negative at RMB -18,168,548.18, a decrease of 104.06% compared to RMB 447,380,853.65 in the previous period[23]. - Total assets at the end of the period amount to RMB 15,464,421,401.75, down 2.73% from RMB 15,897,730,717.63 at the beginning of the period[23]. - Total liabilities at the end of the period are RMB 4,596,332,739.07, a decrease of 1.45% from RMB 4,664,107,164.03 at the beginning of the period[23]. - The company's basic earnings per share for the current period is RMB 0.88, reflecting a 25.71% increase from RMB 0.70 in the previous period[24]. - The weighted average return on equity decreased to 5.79%, down 1.63 percentage points from 7.42% in the previous period[24]. - The company's total equity attributable to shareholders decreased by 3.67% to RMB 10,377,012,951.36 from RMB 10,772,739,768.63 at the beginning of the period[23]. Accounting and Reporting - The company’s financial report for the first half of 2018 was prepared in accordance with the Chinese Accounting Standards and has not been audited[5]. - The report has been reviewed by the company's audit committee and approved by the board of directors[5]. - The company has adopted new accounting standards effective January 1, 2018, which have impacted the financial statements and reporting[25]. - The company has implemented changes in accounting estimates regarding the provision for bad debts for accounts receivable and other receivables, effective from April 1, 2018[20]. Research and Development - Research and development expenses increased by RMB 171.55 million, reflecting the company's commitment to innovation[36]. - The company has made significant progress in R&D, with 11 new projects initiated in the raw materials and intermediates division, including 1 project that has been submitted for DMF[50]. - The company reported a total of 25 projects in preclinical research and 7 in clinical research for chemical and traditional Chinese medicine preparations[72]. - R&D expenses amounted to RMB 327.47 million, a year-on-year increase of 17.51%, representing 7.17% of total revenue[71]. - The company is focusing on enhancing its R&D capabilities and optimizing its product development processes to mitigate risks associated with new drug development[148]. Market and Sales - The company’s marketing network covers major medical institutions and pharmacies nationwide, supported by a professional sales team of over 10,000[41]. - The company's main business achieved revenue of RMB 4,543.74 million, an increase from RMB 4,255.42 million in the same period last year, representing a growth of 6.78%[58]. - The revenue from key products in the hormone field, such as injection acetic acid leuprolide microspheres and urinary follicle-stimulating hormone, reached RMB 359.06 million and RMB 272.88 million, growing 27.43% and 3.93% respectively[60]. Investments and Financial Management - The company reported an investment income of RMB 854,288.83, accounting for 0.10% of total profit, primarily due to changes in the profit and loss of joint ventures[79]. - The company has approved a USD 30 million investment in the Global Health Science Fund II, L.P., which focuses on innovative medical technologies and products[115]. - The company plans to use the raised funds for the development and industrialization of the Aiprazole series innovative products, among other projects[133]. - The company has established a foreign exchange risk management policy to hedge against currency fluctuations[130]. - The company is committed to strengthening its financial management to enhance interest income and stabilize its main business growth[145]. Corporate Governance and Compliance - The company has consistently adhered to corporate governance standards and regulations, ensuring effective management and supervision[2]. - The company has not experienced any penalties or rectification situations during the reporting period[190]. - There are no risks of delisting due to violations during the reporting period[191]. - The company and its controlling shareholders have no integrity issues, such as failing to fulfill court judgments or large debts that are overdue[192]. Employee and Organizational Development - The total employee count increased to 7,219 as of June 30, 2018, up from 6,963 at the end of 2017, with total employee compensation amounting to RMB 468.89 million[111]. - The company established eight business school branches to enhance employee training and development, focusing on diverse learning methods[113]. - The company completed the third phase of unlocking its restricted A-share incentive plan, with no changes to the employee compensation policy during the reporting period[112]. Future Outlook and Strategic Plans - The company plans to enhance its marketing strategies focusing on evidence-based, service-oriented, and cooperative marketing to expand its market presence[150]. - The company aims to strengthen its product pipeline by integrating resources and enhancing external collaborations for new product development[152]. - The company is committed to ongoing research and development of new technologies to drive growth and innovation[123]. - The company anticipates potential impacts from regulatory changes in the pharmaceutical industry, emphasizing the need for compliance and adaptation to new policies[148].