金城医药(300233) - 2018 Q1 - 季度财报

Important Notice The company's management guarantees the accuracy and completeness of this quarterly report and its financial statements - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or material omissions, and assume corresponding legal responsibilities[3] - The company's principal, chief financial officer, and head of accounting department ensure the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[4] Company Profile This section provides an overview of the company's key financial performance, significant risks, and shareholder structure Key Accounting Data and Financial Indicators In Q1 2018, the company achieved total operating revenue of 828 million yuan, a 44.49% year-on-year increase; net profit attributable to shareholders was 72.41 million yuan, up 32.94%; net cash flow from operating activities increased by 48.18% year-on-year, indicating strong growth in the company's main business; total assets at period-end reached 5.016 billion yuan Key Financial Data for Q1 2018 | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (Yuan) | 827,540,955.66 | 572,737,727.44 | 44.49% | | Net Profit Attributable to Shareholders (Yuan) | 72,413,142.46 | 54,470,963.94 | 32.94% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 70,177,186.09 | 51,973,887.89 | 35.02% | | Net Cash Flow from Operating Activities (Yuan) | 29,206,103.89 | 19,709,802.80 | 48.18% | | Basic Earnings Per Share (Yuan/Share) | 0.18 | 0.18 | 0.00% | | Total Assets (Yuan) | 5,015,988,730.08 | - | 2.29% (vs. end of previous year) | | Net Assets Attributable to Shareholders (Yuan) | 3,936,714,216.95 | - | 1.87% (vs. end of previous year) | - During the reporting period, the company's total non-recurring gains and losses amounted to 2.236 million yuan, primarily from government subsidies[8] Significant Risk Factors The company faces multiple significant risks, primarily including management risks from expanding operations, market risks due to supply-demand and policy changes, uncertainties in drug R&D, and risks of underperforming acquisition targets and goodwill impairment arising from major asset restructuring; additionally, high accounts receivable and exchange rate fluctuations also pose potential risks to the company - Operational Management Risk: The company's expanding operational scale demands higher management, coordination, and integration capabilities[10] - Market Risk: Products are influenced by multiple factors including market supply and demand, raw material prices, and national environmental and pharmaceutical policies[11] - M&A Related Risks: Langyi Pharmaceutical, the target of major asset restructuring, faces risks of underperforming expectations, especially as its core product, Pidotimod preparations, faces policy adjustments; concurrently, the acquisition resulted in a significant amount of goodwill, posing impairment risk[15][16] - Financial Risk: During the reporting period, accounts receivable accounted for 36.71% of current assets, a substantial amount, posing risks of bad debts and working capital pressure; additionally, export business faces risks from changes in export tax rebate rates and exchange rates[18][19] Shareholder Information As of the end of the reporting period, the total number of common shareholders was 10,415; the largest shareholder is Zibo Jincheng Industrial Investment Co., Ltd., holding 28.49%; the company's actual controllers are Zhao Hongfu and Zhao Yeqing; during the reporting period, the total number of restricted shares significantly decreased due to the lifting of restrictions on some shares issued for major asset restructuring Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Zibo Jincheng Industrial Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 28.49% | 111,995,016 | | Beijing Jinsheng Investment Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 25.05% | 98,493,778 | | Dazi Xingyi Yuanda Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.26% | 24,623,444 | | Zhao Hongfu | Domestic Natural Person | 3.25% | 12,776,000 | | Zhang Xuebo | Domestic Natural Person | 1.63% | 6,420,000 | - During the reporting period, due to the lifting of restrictions on shares after the initial public offering, the company's total restricted shares decreased from 161 million shares at the beginning of the period to 37.98 million shares at the end, with all shares held by Beijing Jinsheng Investment Center and Dazi Xingyi Yuanda Venture Capital Partnership (Limited Partnership) being unrestricted[26] Significant Matters This section details significant financial changes, business performance, ongoing key initiatives, fundraising utilization, and dividend policy execution Significant Changes in Key Financial Data and Reasons During the reporting period, several of the company's financial indicators changed significantly; operating revenue increased by 44.49% year-on-year, primarily due to increased revenue from pharmaceutical preparations and chemical trade products; sales expenses and administrative expenses surged by 389.37% and 88.41% respectively, mainly due to intensified market development, increased R&D investment, and the expanded consolidation scope of subsidiary Langyi Pharmaceutical; net cash flow from financing activities sharply decreased by 92.10%, primarily because the prior year included funds raised from share issuance Significant Changes in Income Statement Items and Reasons | Item | Change Rate | Reason Explanation | | :--- | :--- | :--- | | Operating Revenue | 44.49% | Increased revenue from pharmaceutical preparations and chemical trade products | | Sales Expenses | 389.37% | Increased market development efforts during the reporting period | | Administrative Expenses | 88.41% | Increased R&D investment and longer consolidation period for Langyi Company | | Financial Expenses | 135.75% | Increased exchange losses during the reporting period | | Asset Impairment Losses | 2567.12% | Increased provision for bad debts during the reporting period | Significant Changes in Cash Flow Statement Items and Reasons | Item | Change Rate | Reason Explanation | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 48.18% | Increased cash received from sales collections | | Net Cash Flow from Investing Activities | -79.74% | Increased cash paid for the acquisition of fixed assets, intangible assets, etc | | Net Cash Flow from Financing Activities | -92.10% | Last period included funds raised from share issuance, none this period | Business Review and Outlook During the reporting period, the primary drivers of the company's operating revenue growth were increased sales of pharmaceutical preparations, chemical trade products, biopharmaceuticals, and specialty APIs, along with the full consolidation of subsidiary Beijing Langyi Pharmaceutical Co., Ltd. for Q1 2018 (compared to only March in the prior year); the composition of the company's top five customers and suppliers experienced normal business changes with no significant impact on operations; the annual operating plan is progressing in an orderly manner - Two main factors drove the change in business revenue during this reporting period: first, year-on-year sales growth across pharmaceutical preparations, chemical trade, biopharmaceuticals, and specialty APIs; second, the full three-month consolidation of subsidiary Beijing Langyi Pharmaceutical Co., Ltd. this period, compared to only one month in the prior year[38] - During the reporting period, the top five suppliers' procurement amounted to 184 million yuan, accounting for 25.33% of total procurement; the top five customers' sales revenue totaled 210 million yuan, accounting for 25.35% of main business revenue; changes in customer and supplier structure are considered normal business operations[39][41] Progress of Significant Matters During the reporting period, the company continued to advance several significant matters: first, continuing to urge Langyi Pharmaceutical's original shareholders to pay the remaining project funds; second, some of the company's directors, supervisors, senior management, and subsidiary management plan to increase their shareholdings; third, completing the lifting of restrictions on approximately 98.49 million shares issued in the major asset restructuring, making them eligible for public trading - The company is urging Langyi Pharmaceutical's original shareholders to pay the remaining project funds[43] - Some of the company's directors, supervisors, senior management, and subsidiary management plan to opportunistically increase their shareholdings after the blackout period[43] - The 98,493,778 restricted shares issued to specific targets during the company's major asset restructuring have been unrestricted and are eligible for public trading[43] Use of Raised Funds The company provided detailed disclosure on the use of raised funds from previous offerings; as of the end of the reporting period, a cumulative 642 million yuan had been invested; some projects, such as the '3,000 tons/year AE-Active Ester Project' and '800 tons/year Cefixime Side Chain Acid Active Ester Project,' have been completed and are generating returns; the original '50 tons/year 7-AVCA Industrialization Project' funds were reallocated to the '200 tons/year Glutathione API Project' due to market changes; remaining funds from some projects have been permanently used to supplement working capital as per regulations Progress of Major Committed Investment Projects | Committed Investment Project | Adjusted Total Investment (Ten Thousand Yuan) | Cumulative Investment as of Period-End (Ten Thousand Yuan) | Investment Progress | | :--- | :--- | :--- | :--- | | 3,000 tons/year AE-Active Ester Project | 7,900.96 | 7,653.83 | 96.87% | | 800 tons/year Cefixime Side Chain Acid Active Ester Project | 7,742.38 | 7,757.66 | 100.20% | | 200 tons/year Glutathione API Project | 20,120.00 | 17,627.55 | 87.61% | | Beijing Langyi Pharmaceutical API Project Phase II | 15,000.00 | 590.47 | 3.94% | - The original '50 tons/year 7-AVCA Industrialization Project' was not constructed due to industry policies and market reasons, and its raised funds of 64.7931 million yuan have been reallocated to the '200 tons/year Glutathione API Project'[49] Execution of Cash Dividend Policy On March 27, 2018, the company's Board of Directors approved the 2017 profit distribution plan, proposing a cash dividend of 2.0 yuan (tax inclusive) per 10 shares to all shareholders based on the total share capital at the end of 2017, totaling 78.63 million yuan; this plan has been approved by the 2017 Annual General Meeting of Shareholders - The company's 2017 profit distribution plan is: a cash dividend of 2.0 yuan (tax inclusive) per 10 shares, totaling 78,630,447.6 yuan; this plan has been approved by the shareholders' meeting and will be implemented as soon as possible[51] Financial Statements This section presents the consolidated balance sheet, income statement, and cash flow statement, along with the audit opinion for the reporting period Consolidated Balance Sheet As of March 31, 2018, the company's total assets were 5.016 billion yuan, a 2.29% increase from the beginning of the year; total liabilities were 1.005 billion yuan, with a debt-to-asset ratio of 20.03%; equity attributable to owners of the parent company was 3.937 billion yuan; non-current assets accounted for approximately 63.76% of the asset structure, primarily including 1.153 billion yuan in goodwill and 1.173 billion yuan in fixed assets Key Items from Consolidated Balance Sheet (March 31, 2018) | Item | Amount (Yuan) | | :--- | :--- | | Assets | | | Cash and Cash Equivalents | 701,727,536.84 | | Accounts Receivable | 667,608,486.86 | | Fixed Assets | 1,172,764,713.27 | | Goodwill | 1,152,810,696.40 | | Total Assets | 5,015,988,730.08 | | Liabilities | | | Short-term Borrowings | 289,000,000.00 | | Accounts Payable | 262,977,704.53 | | Total Liabilities | 1,004,883,059.26 | | Shareholders' Equity | | | Total Equity Attributable to Owners of the Parent Company | 3,936,714,216.95 | | Total Shareholders' Equity | 4,011,105,670.82 | Consolidated Income Statement In Q1 2018, the company achieved total operating revenue of 828 million yuan and total operating costs of 741 million yuan, with a gross profit margin of approximately 40.80%; sales, administrative, and financial expenses combined accounted for 28.80% of operating revenue; net profit attributable to owners of the parent company was 72.41 million yuan, with a net profit margin of 8.75% Key Items from Consolidated Income Statement (Q1 2018) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 827,540,955.66 | 572,737,727.44 | | II. Total Operating Costs | 740,964,318.06 | 510,434,396.19 | | Including: Operating Costs | 489,925,213.37 | 419,563,179.41 | | Sales Expenses | 130,745,584.49 | 26,717,160.33 | | Administrative Expenses | 98,818,529.18 | 52,448,198.34 | | III. Operating Profit | 89,491,814.75 | 62,810,568.20 | | IV. Total Profit | 90,423,662.58 | 65,230,226.65 | | V. Net Profit | 73,560,886.03 | 57,403,059.16 | | Net Profit Attributable to Owners of the Parent Company | 72,413,142.46 | 54,470,963.94 | Consolidated Cash Flow Statement In Q1 2018, the company's net cash flow from operating activities was 29.21 million yuan, a 48.18% year-on-year increase, indicating strengthened cash generation from core operations; net cash outflow from investing activities was 34.97 million yuan, primarily for the acquisition of fixed assets; net cash inflow from financing activities was 24.80 million yuan; cash and cash equivalents balance at period-end was 702 million yuan Key Items from Consolidated Cash Flow Statement (Q1 2018) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 29,206,103.89 | 19,709,802.80 | | Net Cash Flow from Investing Activities | -34,965,019.21 | -19,453,086.86 | | Net Cash Flow from Financing Activities | 24,799,781.24 | 314,046,797.59 | | Net Increase in Cash and Cash Equivalents | 18,798,453.42 | 314,303,513.53 | | Cash and Cash Equivalents at Period-End | 701,727,536.84 | 760,197,647.25 | Audit Opinion The company's Q1 2018 report is unaudited - The company's first quarter report is unaudited[81]