2018-10-25 16:00Financial Performance - Operating revenue for the reporting period was approximately RMB 2.28 billion, an increase of 1.32% year-on-year[5] - Net profit attributable to shareholders was approximately RMB 306.75 million, a significant decrease of 91.80% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 224.50 million, a slight increase of 0.27% year-on-year[7] - Basic earnings per share for the reporting period were RMB 0.43, down 91.81% from the previous year[7] - The weighted average return on equity was 2.91%, a decrease of 40.09 percentage points compared to the previous year[7] - Cash flow from operating activities for the year-to-date was approximately RMB 626.35 million, a decrease of 32.47% year-on-year[7] - The net profit for the year-to-date was approximately RMB 940.10 million, a decrease of 77.86% compared to the same period last year[5] - The estimated cumulative net profit for the year is projected to be between RMB 1,127.51 million and RMB 1,250.51 million, representing a decrease of 74.54% to 71.76% compared to the previous year[36] - Basic earnings per share are expected to be between RMB 1.57 and RMB 1.74, down 74.76% to 72.03% from RMB 6.22 in the same period last year[36] Shareholder Information - Total number of common shareholders at the end of the reporting period was 44,362, with A-share shareholders accounting for 44,350[15] - The top 10 shareholders held a combined 34.22% of shares, with Hong Kong Central Clearing Limited holding 246,049,398 shares[15] Investments and Assets - Total assets at the end of the reporting period were approximately RMB 15.62 billion, a decrease of 1.73% compared to the end of the previous year[5] - Other receivables increased by 54.34% to ¥98,222,933.93, primarily due to new receivables from the transfer of subsidiary equity[21] - Long-term equity investments rose by 47.61% to ¥136,683,254.30, attributed to increased external investments[21] - The company reported a significant decrease in investment income, down 100.05% to -¥2,087,989.58, due to prior year gains from subsidiary equity disposals[22] - The construction in progress increased by 96.16% to ¥137,856,993.88, reflecting new production facility investments[21] - The company’s financial liabilities increased dramatically by 10,405.06% to ¥35,625,814.67, mainly due to foreign exchange contract value changes[21] - Minority interests rose by 90.03% to ¥875,797,110.52, primarily from investments by minority shareholders[21] Revenue Breakdown - Revenue for the first nine months of 2018 was ¥6,841,435,893.90, representing a 4.90% increase compared to the same period in 2017[22] - Operating income for the first three quarters of 2018 reached RMB 6.841 billion, a year-on-year increase of 4.90%[24] - Revenue from Western medicine formulations was RMB 3.356 billion, with a year-on-year growth of 15.05%[24] - The revenue from the digestive system product line was RMB 962 million, reflecting a year-on-year increase of 28.70%[24] - The revenue from key products in the hormone field, such as injection acetic acid leuprolide microspheres, reached RMB 590 million, a year-on-year increase of 35.38%[25] - The revenue from raw materials and intermediates was RMB 1.741 billion, with a year-on-year growth of 15.37%[24] Cash Flow and Financing - The company reported a net cash flow from operating activities of RMB 626.35 million, down 32.47% from the previous year due to tax payments related to the disposal of equity[29] - Investment activity cash inflow decreased by 98.71% to RMB 63.15 million, primarily due to the previous year's proceeds from the disposal of subsidiary equity[31] - The company experienced a 2334.17% increase in cash inflow from financing activities, totaling RMB 934.12 million, attributed to minority equity investments and increased borrowings[31] Stock Options and Incentives - The company approved a stock option plan to grant 19.5 million A-share stock options to incentive targets[32] - The number of incentive targets for the stock option plan was adjusted from 1,116 to 1,050, with the number of stock options granted adjusted from 17.5 million to 17.4755 million[34] Risk Management and Compliance - The company has implemented new accounting standards affecting financial reporting, which may impact future financial results[8] - The company has no overdue commitments from actual controllers, shareholders, related parties, acquirers, or other related parties during the reporting period[35] - The company has not engaged in entrusted wealth management during the reporting period[39] - The company has established a comprehensive risk management framework to mitigate market, operational, and legal risks associated with its foreign exchange operations[42] - The company’s independent directors have approved the foreign exchange derivative trading business in accordance with relevant laws and regulations[42] - The company’s financial derivatives are strictly for hedging purposes and not for speculative trading[42] Derivative Investments - The company reported a total investment in derivatives amounting to 20,408,765.77 CNY as of September 30, 2018, reflecting a significant increase from the initial investment of 4,433,499.50 CNY[40] - The fair value change of the company's securities investments resulted in a loss of 1,625,639.66 CNY during the period from January to September 2018[40] - The company held a total of 8,016,344.50 CNY in Kunlun Energy stocks, with a fair value decrease of 34,317.20 CNY in the same period[40] - The company reported a loss of 4,585.76 CNY from its investment in Penghua Fund during the first nine months of 2018[40] - The total amount of foreign exchange forward contracts sold was 19,000.00 CNY, with a net loss of 309.42 CNY recorded[40] - The company’s investment in Huadong Medicine stocks reached a fair value of 11,530,940.46 CNY, with a gain of 1,796,387.58 CNY during the reporting period[40] - The company’s derivative investments accounted for a proportion of 0.04% of the net assets at the end of the reporting period[40] - The company’s total realized loss from derivative investments for the period was 1,973,015.24 CNY[40] Investor Relations - The company conducted multiple investor relations activities, including site visits on July 12, August 21, and August 27, 2018[44]