2018-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,004,354,083.30, representing a 90.88% increase compared to CNY 1,050,040,613.07 in the same period last year[18]. - Net profit attributable to shareholders reached CNY 219,095,060.68, a significant increase of 2,840.84% from CNY 7,450,092.37 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 209,990,505.16, compared to a loss of CNY 3,816,732.23 in the same period last year, marking a 5,601.84% increase[18]. - Basic earnings per share increased to CNY 0.176, up 2,833.33% from CNY 0.006 in the same period last year[18]. - The company achieved total revenue of 2,004.35 million yuan, an increase of 90.88% compared to the same period last year[55]. - Net profit reached 201.44 million yuan, a significant increase of 16,493.62% year-on-year, with net profit attributable to shareholders at 219.10 million yuan, up by 2.84 million yuan[55]. Cash Flow and Assets - The net cash flow from operating activities was CNY 75,793,760.69, a turnaround from a negative cash flow of CNY 172,930,337.36 in the previous year, reflecting a 143.83% improvement[18]. - The company reported a significant decrease in cash and cash equivalents, which fell to ¥2,055,549,077.32, down from ¥4,089,814,242.23 in the same period last year, primarily due to a payment of ¥1.224 billion for the acquisition of Duople[66]. - Total assets at the end of the reporting period were CNY 13,197,309,660.50, a slight increase of 0.06% from CNY 13,189,413,531.98 at the end of the previous year[18]. - Cash and cash equivalents decreased from CNY 3,495,559,006.61 to CNY 2,055,549,077.32[192]. - Total current assets decreased from CNY 5,819,833,756.17 to CNY 4,697,897,100.30, a decline of approximately 19.3%[197]. Business Operations - The company's main business is the production and sales of heparin sodium raw materials, accounting for over 70% of total revenue[26]. - Enzyme raw materials and biopharmaceutical CDMO businesses contributed 9.57% and 9.89% to revenue respectively in the first half of 2018[26]. - The sales volume and price of heparin raw materials increased significantly, leading to rapid revenue growth[33]. - SPL's enzyme raw materials sales volume and price both increased, with potential for new profit growth if FDA approval is obtained for a new drug[34]. - The company is transitioning towards becoming an innovative drug research and development enterprise, with multiple products expected to enter international multi-center clinical trials[36]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Duople, with a cash transaction amounting to 240,000 million yuan, reflecting a significant investment in expanding its market presence[125]. - The company has invested RMB 120,000 million to acquire 100% equity of Shenzhen Duople Industrial Development Co., Ltd., with RMB 119,530.81 million already paid as of June 30, 2018[90]. - The company has ongoing significant non-equity investments in the biopharmaceutical sector, with total investments reaching ¥135,546,000 as of the reporting period[75]. - The company is actively expanding its production lines, with increased investments in the Ping Shan Pharmaceutical Park and subsidiaries, contributing to a rise in construction in progress to ¥852,863,603.00[66]. Risk Management - The company has outlined its major risks and corresponding countermeasures in the report, emphasizing the importance of risk awareness for investors[4]. - The company faces risks related to product quality, market competition, rising costs, new drug development failures, investment losses, and exchange rate fluctuations[101][102][104][105][106]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has implemented an employee stock ownership plan, completing the purchase of 20,618,035 shares, which accounts for 1.65% of the total share capital[120]. - The major shareholders include Shenzhen Le Ren Technology Co., Ltd. with a 38.01% stake (474,029,899 shares) and Urumqi Jintian Soil Equity Investment Partnership with a 32.72% stake (408,041,280 shares)[158]. Environmental Compliance - The company strictly adheres to environmental regulations, ensuring pollutants are discharged in compliance with legal standards[137]. - The total COD discharge was 35 tons/year, with no exceedance of the permitted discharge limits[138]. - The company has no significant environmental pollution issues reported during the period[137]. Financial Management - The company has maintained a long-term credit rating of AA+ with a stable outlook from the rating agency, indicating strong creditworthiness[174]. - The bond proceeds have been managed in accordance with the commitments outlined in the bond prospectus[178]. - The company executed all commitments related to the bond issuance prospectus during the reporting period[186].