ZHONGHENG GROUP(SH:600252)2023-04-27 16:00Financial Performance - The company's operating revenue for Q1 2023 was CNY 669,688,145.45, representing a year-on-year increase of 4.56%[3] - The net profit attributable to shareholders was CNY -17,116,845.17, a decrease of 119.94% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,671,103.18, down 97.78% year-on-year[3] - Basic and diluted earnings per share were both CNY -0.0050, a decline of 120.08% compared to the previous year[3] - The weighted average return on equity was -0.26%, a decrease of 1.55 percentage points[3] - The company reported significant shareholder concentration, with Guangxi Investment Group Co., Ltd. holding 859,343,587 shares, representing a substantial portion of the total shares[9] - In Q1 2023, the company reported a net profit of -29,006,693.77 CNY, a significant decline compared to a net profit of 57,322,111.10 CNY in Q1 2022, representing a year-over-year decrease of approximately 151%[23]. - The total operating profit for Q1 2023 was -31,199,103.23 CNY, compared to an operating profit of 82,321,214.09 CNY in the same period last year, indicating a drastic decline[23]. - The company’s total comprehensive income for Q1 2023 was -61,491,525.83 CNY, compared to -7,628,677.44 CNY in Q1 2022, reflecting a worsening financial position[24]. - Basic and diluted earnings per share for Q1 2023 were both -0.0050 CNY, down from 0.0249 CNY in Q1 2022[24]. - The company reported a significant loss in fair value changes amounting to -41,037,648.21 CNY in Q1 2023, compared to a gain of 7,738,692.49 CNY in Q1 2022[23]. Cash Flow and Assets - The net cash flow from operating activities increased by 241.05% to CNY 77,608,123.07[3] - The increase in cash flow from operating activities was primarily due to increased cash receipts from pharmaceutical agency business and reduced procurement activities[6] - The company's cash flow from operating activities showed a net inflow of 77,608,123.07 CNY in Q1 2023, a recovery from a net outflow of -55,021,780.87 CNY in Q1 2022[25]. - The company's cash and cash equivalents as of March 31, 2023, amounted to ¥3,580,119,678.67, slightly up from ¥3,549,889,659.07 at the end of 2022[19] - The cash and cash equivalents at the end of Q1 2023 stood at 3,528,662,178.67 CNY, an increase from 3,092,014,678.19 CNY at the end of Q1 2022[25]. - Total assets at the end of the reporting period were CNY 11,681,607,709.04, a decrease of 0.60% from the end of the previous year[3] - The total assets of the company as of March 31, 2023, were ¥11,681,607,709.04, a slight decrease from ¥11,751,848,863.82 at the end of 2022[21] - Total liabilities decreased to ¥3,449,266,781.05 in Q1 2023 from ¥3,462,470,550.07 in Q4 2022[20] Operational Changes and Strategies - The company plans to enhance its promotional efforts, which has impacted profitability in the current period[6] - The company announced that its main products, Thrombolytic Injection (Lyophilized) and Thrombolytic Injection, have had restrictions on their indications lifted, restoring their reimbursement scope to the range specified in the product instructions[11] - The company established a wholly-owned subsidiary, Zhongheng Yixin Technology Investment Co., Ltd., with an investment of RMB 500 million to enhance its technological innovation and investment management capabilities[13] - The company plans to repurchase and cancel a total of 12,944,250 restricted stock units due to unmet performance targets from its 2021 incentive plan, with repurchase prices set at RMB 1.76 and RMB 1.42 per share[15] - The company completed the cancellation of 6,373,443 shares remaining in its repurchase special securities account, with no current plans for their use[16] - The company is actively monitoring changes in national medical insurance policies that may impact its product offerings and market positioning[10] - The company has not disclosed any significant mergers or acquisitions in the recent report, focusing instead on internal growth strategies[17] - The company is committed to enhancing its market presence through strategic investments and product development initiatives[13] Cost and Expense Management - Total operating costs for Q1 2023 were ¥683,670,796.28, up 19.6% from ¥571,823,205.03 in Q1 2022[22] - Research and development expenses decreased to ¥25,174,529.19 in Q1 2023 from ¥45,658,550.65 in Q1 2022, indicating a reduction of 44.7%[22] - The net profit margin for Q1 2023 was impacted by increased operating costs, with a total profit of ¥13,869,037.33 from other income, compared to ¥11,689,913.24 in Q1 2022[22] Inventory and Receivables - Accounts receivable increased to ¥873,121,677.50 in Q1 2023 from ¥836,153,269.26 in Q4 2022, indicating a rise of 4.2%[19] - Inventory levels rose to ¥768,615,385.99 in Q1 2023, compared to ¥689,839,512.64 in Q4 2022, reflecting an increase of 11.4%[19]