Lushang Freda Pharmaceutical (SH:600223)2023-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2023 was approximately RMB 2.47 billion, a decrease of 48.85% compared to RMB 4.84 billion in the same period last year[18]. - Net profit attributable to shareholders for the first half of 2023 was approximately RMB 190.42 million, a slight increase of 0.65% from RMB 189.20 million in the previous year[18]. - The basic earnings per share remained unchanged at RMB 0.19 compared to the same period last year[18]. - The net profit after deducting non-recurring gains and losses was approximately RMB 62.96 million, a decrease of 66.78% from RMB 189.52 million in the previous year[18]. - The net cash flow from operating activities was approximately RMB 240.30 million, down 72.95% from RMB 888.42 million in the same period last year[18]. - The company's total assets at the end of the reporting period were approximately RMB 11.15 billion, a decrease of 80.94% from the previous year's end[18]. - The net assets attributable to shareholders at the end of the reporting period were approximately RMB 3.91 billion, an increase of 5.13% from RMB 3.72 billion at the end of the previous year[18]. - The weighted average return on net assets increased to 5.00%, up by 1.00 percentage point from 4.00% in the previous year[18]. - The company's revenue decreased by 48.85% compared to the same period last year, primarily due to the divestiture of its real estate business[19]. - The net profit attributable to shareholders increased by 0.65% year-on-year, amounting to 190.42 million RMB, while the net profit excluding non-recurring gains and losses decreased by 66.78% to 62.96 million RMB[19]. - The total assets decreased by 80.94% compared to the beginning of the year, reflecting the impact of the real estate business divestiture[19]. - The company reported a significant decline in revenue from real estate operations outside Shandong Province, decreasing by 91.99% due to the divestiture of these operations[65]. Business Segments - The pharmaceutical sector is experiencing rapid growth due to increasing healthcare demands and ongoing reforms in the medical system[25]. - The cosmetics retail sector saw a total retail sales of 207.1 billion RMB in the first half of the year, with a year-on-year growth of 8.6%[26]. - The company’s pharmaceutical business includes well-known brands and focuses on various medical fields, including orthopedics and pediatrics[28]. - The pharmaceutical segment generated a revenue of 291 million yuan, with a significant year-on-year increase of 37.83%[44]. - The cosmetics segment reported a revenue of 1.106 billion yuan, reflecting a year-on-year growth of 9.20%[45]. - The raw materials and additives segment achieved a revenue of 170 million yuan, marking a year-on-year increase of 6.97%[46]. - The company launched 37 new products in the cosmetics sector and introduced 15 new health products across various segments during the reporting period[48]. Asset Management and Investments - The company completed the first batch of asset transfers from the major asset sale, with the second batch expected to be completed by October 31, 2023[24]. - The company has established a merger and acquisition fund in collaboration with other partners, with a fund share acquisition price of ¥2,450,000[76]. - The company reported a total of CNY 94,000.00 million in related party transactions for the year, with CNY 16,358.27 million already realized in the first half of 2023[151]. - The company has a right to choose third-party suppliers for procurement at lower prices, ensuring no harm to minority shareholders' interests[152]. - The company has reported a total of 11,633,562,797.34 RMB in related party debts, with a net decrease of 11,530,788,846.47 RMB during the period, resulting in a closing balance of 102,773,950.87 RMB[158]. Research and Development - The company has established a national-level technology center and a provincial research center, collaborating with institutions like Shandong University and the Shandong Academy of Pharmaceutical Sciences on key national R&D projects[29]. - The company is enhancing its research and development capabilities, establishing innovation centers in Jinan and Shanghai to focus on core technologies[50]. - Research and development expenses increased to CNY 64,770,035.23 in the first half of 2023, up from CNY 54,917,138.55 in the same period of 2022, indicating a focus on innovation[200]. Environmental Responsibility - The company is committed to enhancing its environmental protection measures and ensuring compliance with safety regulations during production processes[98]. - The company reported a total wastewater discharge of 21,490 cubic meters in the first half of 2023, with total nitrogen emissions of 4.80 tons and chemical oxygen demand (COD) emissions of 12.96 tons[113]. - The company has obtained environmental impact assessment documents and pollution discharge permits for its construction projects, ensuring compliance with environmental regulations[121]. - The company has implemented measures to reduce environmental impact and enhance personnel's environmental protection capabilities[120]. - The total environmental investment by Focus Furuida, Baifu Furuida, and Furuida Biotechnology in the first half of 2023 amounted to approximately 1.934 million yuan[120]. Corporate Governance - The company is focused on maintaining independence in operations and avoiding conflicts of interest with its controlling shareholder[139]. - The company is committed to ensuring fair pricing in related transactions to protect the interests of its shareholders[140]. - The company has established a long-term commitment to not engage in unfair practices that could harm the interests of the listed company[142]. - The company has no significant litigation or arbitration matters during the reporting period[147]. - The company has no major violations or penalties involving its directors, supervisors, senior management, or controlling shareholders[148]. Shareholder Relations - The company has maintained communication with investors through various channels, including 13 investor meetings and 260+ phone consultations[178]. - The largest shareholder, Shandong Commercial Group, holds 524,739,200 shares, representing 51.62% of the total shares, with 125,000,000 shares pledged[183]. - The company plans to issue 70,000,000 shares as part of a private placement for convertible bonds, representing 6.89% of the total shares[185].