YONGAN PHARMACEUTICAL(SZ:002365)2018-12-14 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 506,955,178.58, representing an increase of 18.33% compared to CNY 428,440,271.59 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached CNY 106,018,492.55, a significant increase of 48.52% from CNY 71,382,649.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 99,420,354.70, up 71.66% from CNY 57,916,291.27 in the previous year[17]. - The net cash flow from operating activities was CNY 157,220,827.74, which is a 102.62% increase compared to CNY 77,595,787.66 in the same period last year[17]. - Basic earnings per share increased to CNY 0.37, reflecting a growth of 48.00% from CNY 0.25[17]. - Total assets at the end of the reporting period were CNY 1,740,380,210.57, an increase of 10.16% from CNY 1,579,917,773.10 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were CNY 1,495,028,130.14, up 11.48% from CNY 1,341,120,538.86 at the end of the previous year[17]. - The company reported a total of CNY 6,598,137.85 in non-recurring gains and losses during the reporting period[22]. - The weighted average return on net assets was 7.40%, an increase of 1.53% compared to 5.87% in the previous year[17]. - Operating profit reached ¥126,582,246.51, a growth of 62.75% year-on-year[31]. - Net profit for the period was ¥105,653,374.04, reflecting a 47.64% increase from ¥71,562,638.48 in the previous year[35]. - The total profit for the period was ¥126,640,805.40, marking a 48.27% increase from ¥85,412,490.53 in the previous year[35]. Market Position and Operations - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[26]. - The construction of a new project for an annual production capacity of 30,000 tons of taurine food additives has been completed, increasing total taurine capacity to 64,000 tons[31]. - The pharmaceutical manufacturing sector contributed ¥389,513,022.71, accounting for 76.83% of total revenue, with a year-on-year growth of 23.00%[38]. - The company’s epoxy ethane production capacity is 40,000 tons, primarily to ensure raw material supply for taurine production[26]. - The company plans to strengthen its market presence in health food products through strategic partnerships and new product development[32]. Research and Development - Research and development expenses increased by 46.77% to ¥16,568,388.68, driven by new scientific projects[34]. - The company has filed for a patent on a new method for taurine production, enhancing its competitive edge in the industry[28]. - The company is focused on research and development of new products and technologies to enhance its competitive edge in the market[163]. Cash Flow and Investments - Cash and cash equivalents saw a net decrease of 92.77%, dropping to ¥4,343,436.12 from ¥60,067,327.56, mainly due to increased construction expenditures[35]. - The total investment in the taurine food additive project was ¥262,105,395.71, with cumulative investment reaching ¥408,333,929.26, funded 95% by the company's own resources[49]. - The company recorded a total of ¥12,229,828.33 in stock investments, with a loss of ¥1,966,604.95 during the reporting period[51]. - The total amount of securities investments was reported at ¥17,331,854.36, with a cumulative investment income of ¥13,840,634.50[52]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total number of shares increased from 196,455,000 to 294,682,500 due to the release of restrictions on shares held by directors and senior management[106]. - The company approved the first unlock of the 2016 restricted stock incentive plan, with a total of 4.7275 million shares unlocked, representing 50% of the granted restricted stocks[107]. - The largest shareholder, Chen Yong, holds 21.54% of the shares, with a total of 63,468,000 shares, of which 15,867,000 are frozen[115]. - The company reported no changes in the controlling shareholder or actual controller during the reporting period[117]. Legal and Compliance Matters - The company is involved in a patent infringement lawsuit in the United States, with no current impact on operations[73]. - There were no major litigation or arbitration matters during the reporting period[72]. - The company has committed to not using idle raised funds for permanent working capital or repaying bank loans[69]. - The company has complied with all commitments made regarding avoiding competition during the reporting period[67]. Environmental and Safety Measures - The company has established two wastewater treatment facilities with a designed daily processing capacity of 2,600 m³, and a new facility with a capacity of 2,700 m³ is currently in trial operation[97]. - The company has obtained environmental impact assessment approvals for its production lines, including a 34,000-ton taurine production line and a 40,000-ton ethylene oxide production line[97]. - The company has implemented safety measures, including the installation of an independent safety instrument system and video monitoring for hazardous material storage areas[61]. Financial Reporting and Accounting Policies - The financial report for the first half of 2018 has not been audited[127]. - The company’s financial statements are prepared based on the going concern assumption, with no significant uncertainties regarding its ability to continue operations for the next 12 months[168]. - The accounting policies and estimates have been updated in accordance with the new accounting standards effective from June 12, 2017[169]. - The company includes all subsidiaries in its consolidated financial statements, ensuring uniform accounting policies across the group[175].