Jiangsu wuzhong(600200)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,034,598,453.53, a decrease of 7.57% compared to the same period last year[23]. - The net profit attributable to shareholders of the listed company was ¥69,603,017.12, a significant recovery from a loss of ¥18,609,373.28 in the previous year[23]. - The net cash flow from operating activities increased to ¥494,509,740.72, compared to a negative cash flow of ¥70,545,729.30 in the same period last year[23]. - The total assets at the end of the reporting period were ¥3,798,895,089.88, reflecting a 2.57% increase from the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 3.78% to ¥1,917,688,170.15 compared to the end of the previous year[23]. - The basic earnings per share for the first half of 2021 was ¥0.098, a recovery from a loss of ¥0.026 per share in the same period last year[23]. - The weighted average return on net assets was 3.70%, an increase of 4.49 percentage points compared to the previous year[23]. - The significant increase in net profit was primarily due to the asset disposal gains from the completion of the relocation of the Zhongkai Biological Pharmaceutical Plant[24]. - The increase in net cash flow from operating activities was mainly attributed to a substantial rise in cash received from sales of goods[24]. - The company reported non-operating income of approximately ¥97.39 million, primarily from non-current asset disposal gains of ¥100.63 million and government subsidies of ¥10.28 million[25]. Market and Product Development - The pharmaceutical sector focuses on antiviral, immune regulation, anti-tumor, digestive system, and cardiovascular products, with key products including Abidol and Trimetazidine, which have been included in national medical insurance directories[29]. - The company has established a medical beauty division and strategically controls Chengdu Shangli Huimei Biotechnology Co., which holds exclusive rights for a new hyaluronic acid product in China[32]. - The medical beauty market in China is rapidly growing, with the hyaluronic acid market expected to reach ¥6.56 billion in 2021, up from ¥5.11 billion in 2020[37]. - The company aims to enhance its core competitiveness by focusing on high-end generic drugs, innovative drug development, and expanding its product pipeline[29]. - The pharmaceutical manufacturing industry in China achieved a revenue of ¥1.40 trillion in the first half of 2021, reflecting a year-on-year growth rate of 28%[33]. - The company is actively pursuing mergers and acquisitions in the non-surgical medical beauty sector to expand its product offerings and market presence[29]. - The company has received clinical trial approval for its innovative cancer treatment drug YS001, which is set to enter phase I clinical research[29]. - The company operates through various sales channels, including agents, medical institutions, and retail pharmacies, ensuring a comprehensive distribution network[32]. - The company has undergone a name and business scope change to align with its strategic focus on the pharmaceutical and medical beauty industries[29]. Research and Development - The company has established a complete industrial chain covering gene drugs, chemical drugs, and modern traditional Chinese medicine, supported by multiple research institutions[39]. - The company has completed research submissions for several key projects, including the consistency evaluation of various drugs, which are currently under review by the National Medical Products Administration[44]. - The company’s R&D expenses increased by 8.02% to CNY 11.68 million, compared to CNY 10.81 million in the previous year[48]. - The company plans to enhance its R&D capabilities and market strategies to improve product competitiveness and market share[70]. Environmental Compliance - The company’s Suzhou pharmaceutical plant was listed as a key pollutant discharge unit, with specific emissions data reported[86]. - Total COD emissions from the Suzhou plant were 1.99 tons for the first half of 2021, well below the annual limit of 7.62 tons[86]. - The company is focused on maintaining compliance with environmental standards, with all reported emissions within acceptable limits[86]. - The company has established a wastewater treatment facility with a capacity of 150m³/d, which includes a pre-treatment system that significantly reduces pollutant levels in wastewater[92]. - All pollution discharge indicators are compliant with the relevant standards, including the Pharmaceutical Industry Air Pollutant Emission Standards and the Chemical Industry Volatile Organic Compounds Emission Standards[92]. - The company has a total of over 500 square meters of hazardous waste storage facilities, which are equipped with anti-corrosion and leak-proof measures[92]. - The company has implemented an online monitoring system for wastewater, measuring parameters such as flow, pH, COD, ammonia nitrogen, total phosphorus, and total nitrogen[97]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[98]. - The company has not experienced any significant environmental incidents or accidents since commencing production[98]. - The company has a robust VOCs leakage detection and remediation plan in place to effectively reduce VOC emissions[92]. Corporate Governance and Shareholder Relations - The controlling shareholder, Suzhou Wuzhong Investment Holding Co., Ltd., committed to not engaging in business that competes with Jiangsu Wuzhong Industrial Co., Ltd. since December 28, 2009, with no fixed term for the commitment[103]. - The company has ensured that any related transactions with Jiangsu Wuzhong Industrial Co., Ltd. will be conducted at market prices to protect the interests of the company and its shareholders[103]. - The commitment to maintain independence in governance and operations from the controlling shareholder was made on December 28, 2009, with no fixed term[103]. - The controlling parties, including Hangzhou Fuhui Industrial Co., Ltd., have committed to avoiding substantial competition with the listed company and will not invest in similar products since February 2, 2018, with no fixed term[103]. - The company has committed to not using raised funds for real estate or related businesses, ensuring that funds will only be used for operational needs in the pharmaceutical sector since May 15, 2015, with no fixed term[106]. - The number of ordinary shareholders at the end of the reporting period is 85,002[119]. - The largest shareholder, Suzhou Wuzhong Investment Holding Co., Ltd., holds 122,795,762 shares, accounting for 17.24% of the total shares[120]. - The second-largest shareholder, Zhu Yi, holds 16,512,430 shares, accounting for 2.32% of the total shares[120]. - The company has not disclosed any major contracts or significant related party transactions during the reporting period[116]. - There are no overdue guarantees or significant impacts on the company's financial results from related party debts[116]. Financial Position and Liabilities - The total liabilities were reported at ¥1,873,811,991.16, compared to ¥1,851,875,953.69 in the previous period[136]. - The company's total assets reached CNY 2,913,780,138.08, up from CNY 2,814,921,980.51, marking an increase of approximately 3.51%[143]. - The total owner's equity amounted to ¥1,925,083,098.72, compared to ¥1,851,839,720.96 previously[136]. - The company reported a net loss of ¥265,756,535.71 in retained earnings, an improvement from a loss of ¥335,359,552.83[136]. - The total current liabilities were ¥1,632,073,831.14, slightly up from ¥1,595,291,392.94[134]. - The company’s inventory decreased to ¥131,127,052.29 from ¥154,819,292.98[131]. - The total amount of guarantees provided to debtors with an asset-liability ratio exceeding 70% is 12,500.00 million RMB[116]. - The total amount of guarantees exceeding 50% of net assets is 4,955.59 million RMB[116]. - The company provided a total of 68,000.00 million RMB in guarantees to subsidiaries during the reporting period[116]. Share Capital and Stock Management - The company has a registered capital of RMB 712,388,832.00 and a total share capital of 712,388,832 shares, with each share having a par value of RMB 1[189]. - The company’s stock was listed on the Shanghai Stock Exchange on April 1, 1999, following its establishment in 1994[189]. - The company has implemented a stock incentive plan, with a total of 4,900,000 restricted shares granted to 27 incentive objects in 2015[189]. - The company has undergone several capital adjustments and approvals from the China Securities Regulatory Commission for its stock issuance and incentive plans[189]. - The company has not reported any new capital contributions or significant changes in equity instruments during the current period[173]. - The total capital reserve increased slightly from the previous period, indicating some retained earnings were allocated to reserves[186]. - The company has maintained its capital structure with no new equity instruments issued during the reporting period[186].