HISUN(SH:600267)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥6.00 billion, representing a 12.90% increase compared to the same period last year[19]. - The net profit attributable to shareholders for the first half of 2021 was approximately ¥280.13 million, reflecting a 16.40% increase year-over-year[19]. - The net cash flow from operating activities decreased by 55.26% to approximately ¥328.15 million compared to the previous year[19]. - The total assets as of June 30, 2021, were approximately ¥19.89 billion, a decrease of 4.66% from the end of the previous year[19]. - The net assets attributable to shareholders increased by 6.81% to approximately ¥7.13 billion compared to the end of the previous year[19]. - The basic earnings per share for the first half of 2021 was ¥0.254, a 2.01% increase from the same period last year[22]. - The diluted earnings per share for the first half of 2021 was ¥0.250, showing a slight increase of 0.40% year-over-year[22]. - The weighted average return on net assets increased by 0.269 percentage points to 4.037% compared to the previous year[22]. - The company reported a decrease of 11.18% in the basic earnings per share after deducting non-recurring gains and losses, which was ¥0.143[22]. - The company achieved operating revenue of CNY 600,423.38 million, representing a year-on-year growth of 12.90% driven by the growth in formulation products, veterinary products, and pharmaceutical commercial business[47]. - The net profit attributable to the parent company was CNY 28,013.02 million, a year-on-year increase of 16.40%, while the net profit after deducting non-recurring gains and losses was CNY 15,787.37 million, remaining stable compared to the same period last year[47]. Research and Development - The company has a total of 1,011 patent applications, including 991 invention patents, with 337 authorized patents, of which 322 are invention patents[48]. - The company submitted 32 patent applications during the reporting period, with 30 patents granted, all of which are invention patents[56]. - The company has completed the approval of its first small molecule innovative drug, Haibo Maibu, which is the only Class 1 new drug approved in the cardiovascular field in recent years in China[53]. - The company has successfully passed the consistency evaluation for 13 generic drug varieties, including the first to pass for injection micarfen sodium and injection hydrochloride epirubicin[53]. - The company is actively expanding its product offerings in the biopharmaceutical sector, targeting treatments for diabetes and cancer[33]. - The company has established a comprehensive industrial development platform, integrating R&D, production, registration, and market access[52]. Market and Business Operations - The company's main business includes the research, production, and sales of chemical raw materials and formulations, with a focus on both domestic and international markets[30]. - The company has a diverse product line, including anti-tumor, anti-infection, and cardiovascular medications, with a growing presence in international markets[33]. - The company’s procurement model ensures compliance with FDA and GMP standards for raw materials and self-produced formulations[36]. - The company’s commercial business includes third-party drug distribution and promotion, primarily through its subsidiary[38]. - The company achieved a non-recurring gain of RMB 54,482,929.32 from government subsidies closely related to its normal operations[26]. - The company reported a loss of RMB 3,182,058.78 from other operating income and expenses, impacting overall profitability[26]. - The company’s investment income from entrusted loans amounted to RMB 4,040,000.00 during the reporting period[26]. - The company is actively developing new business models and enhancing its marketing strategies to improve sales performance in the raw material drug sector[62]. - The company has established a strong marketing system through close cooperation with local quality agents to achieve broad sales coverage and rapid growth[41]. - The sales team consists of over 1,500 personnel across three divisions, covering 6,900 hospitals in 31 provinces and municipalities, establishing a leading professional promotion platform in China[41]. Financial Position and Investments - The company's cash and cash equivalents decreased by 46.10% to ¥1,109,765,044.73, accounting for 5.58% of total assets, primarily due to bond repayments[66]. - The intangible assets increased by 43.32% to ¥1,052,479,113.89, representing 5.29% of total assets, mainly due to the approval of R&D projects[66]. - The company's long-term borrowings rose by 56.09% to ¥1,697,845,689.34, making up 8.54% of total liabilities, attributed to increased medium and long-term credit financing[68]. - The company issued convertible bonds, resulting in a new debt of ¥1,404,924,349.85, which accounts for 7.06% of total liabilities[68]. - The company plans to invest ¥21 million in its subsidiary, Zhejiang Borui Biological Pharmaceutical Co., Ltd., to increase its capital[72]. - The company completed a capital increase of $3.1 million in its wholly-owned subsidiary, Haizheng Pharmaceutical (USA) Co., Ltd.[72]. - The company is establishing a wholly-owned subsidiary in Japan with an investment of up to ¥20 million[72]. - The company has invested ¥46,354.12 million in the expansion of the injection production project at Hanhui Pharmaceutical Co., Ltd.[74]. - The company has completed the project initiation and environmental assessment for a new production line capable of producing 20 million freeze-dried injection bottles[78]. - The company has initiated a project to upgrade the production of insulin raw materials at Haisheng Pharmaceutical (Hangzhou) Co., Ltd.[78]. Environmental Compliance - The company reported a total wastewater discharge of 860,000 tons in the first half of 2021, with an average chemical oxygen demand concentration of 229.8 mg/L[103]. - The company’s wastewater treatment meets the Zhejiang Province standards, with a total allowable discharge of 144.9 tons for chemical oxygen demand and 21.74 tons for ammonia nitrogen[103]. - The total discharge limits for chemical oxygen demand and ammonia nitrogen are set at 1.765 tons and 0.167 tons, respectively[109]. - The company adheres to the wastewater discharge standards of GB8978-1996, with COD limits of ≤500 mg/L and ammonia nitrogen limits of ≤35 mg/L[109]. - The company has established multiple air pollution control facilities, with a total of 5 exhaust outlets[112]. - The wastewater treatment capacity at the company's facilities includes a system with a capacity of 3,000 tons per day and another with 5,000 tons per day[110]. - The company is in the process of constructing an automatic wastewater treatment facility, expected to ensure compliance with discharge standards upon completion[112]. - The company has implemented online monitoring equipment at the wastewater discharge outlet, with data automatically uploaded to the environmental protection department's website[112]. - The company has established an environmental self-monitoring plan, with third-party testing showing all pollutant indicators meet discharge standards[117]. - The company has received no administrative penalties related to environmental issues during the reporting period[118]. - The company has implemented an environmental management system certified by ISO 14001, enhancing overall environmental awareness among employees[120]. - The company has optimized exhaust treatment processes and upgraded wastewater treatment facilities to ensure compliance with discharge standards[120]. Related Party Transactions and Governance - The company has committed to minimizing related party transactions with Haizheng Pharmaceutical and ensuring fair pricing in unavoidable transactions[126]. - The company has taken measures to avoid competition with Haizheng Pharmaceutical and its subsidiaries, ensuring no overlap in main business activities[123]. - The company has established a dedicated EHS management organization to oversee environmental protection efforts[120]. - The company reported a commitment to ensure independent operations for its subsidiary, including maintaining independent assets, personnel, and capabilities[135]. - The controlling shareholder, Haizheng Group, has pledged to avoid any direct or indirect competition with the company and its subsidiaries[144]. - The company has established a 12-month lock-up period for newly issued shares following the asset acquisition, preventing any transfer during this time[132]. - The company guarantees that its subsidiary will have an independent financial department and accounting system, ensuring compliance with relevant laws and regulations[141]. - The company has committed to minimizing related party transactions and ensuring fair pricing in unavoidable transactions[140]. - The company will not allow its assets to be used as collateral for debts of other controlled enterprises[141]. - The company has a 36-month lock-up period for shares acquired through the current transaction, ensuring stability in shareholding[132]. - The company has established a commitment to independent governance structures for its subsidiary, ensuring no overlap with other controlled entities[143]. - The company has reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[148]. - The company has not engaged in any violations regarding guarantees during the reporting period[148]. - The company reported a total of 8,633.96 million RMB in related party transactions during the reporting period, accounting for 1.856% of similar transaction amounts[153]. - The company purchased products and materials from related parties for a total of 1,366.20 million RMB, representing 0.385% of similar transaction amounts[150]. - The company purchased fuel and power from its controlling subsidiary for 2,126.32 million RMB, which is 0.599% of similar transaction amounts[150]. - The company provided services to related parties amounting to 350.20 million RMB, accounting for 0.058% of similar transaction amounts[153]. Legal and Regulatory Matters - The company reported no major litigation or arbitration matters during the reporting period[150]. - The company had no significant changes in the integrity status of its controlling shareholders or actual controllers during the reporting period[150]. - The company had no major related party transactions that were not disclosed in temporary announcements[154]. - The company approved a proposal to transfer 51% equity of its subsidiary Zhejiang Haizheng Xuantai Pharmaceutical Co., Ltd. for a transaction price of RMB 23.715 million, with the first payment of RMB 7.1145 million received[163]. - The company’s subsidiary Yunnan Biopharmaceutical Co., Ltd. underwent bankruptcy reorganization, with a capital increase of RMB 100 million from Zhejiang Haizheng Animal Health Products Co., Ltd., resulting in a 100% ownership[168]. - The company’s subsidiary Zhejiang Haizheng Animal Health Products Co., Ltd. completed a capital increase from RMB 310 million to RMB 350 million, successfully attracting strategic investors and implementing an employee stock ownership plan[172]. - The company plans to grant 33 million restricted stock options under its 2021 incentive plan, with an initial grant price set at RMB 8.74 per share[174]. - The company has initiated a lawsuit against Chongqing Enchuang Medical Management Co., Ltd. for the remaining payment of RMB 17.332651 million related to the equity transfer agreement[164]. - The company completed the equity restructuring of Zhejiang Yunkai Yamei Pharmaceutical Technology Co., Ltd., with a 20.155% equity reduction and investment in a new Cayman holding company[162]. - The company’s subsidiary has received court approval for its reorganization plan, with debt repayment processes ongoing[168]. - The company’s strategic expansion includes the establishment of a new overseas structure for its subsidiary to facilitate B-round financing and restructuring[162]. - The company has successfully completed the transfer of equity and obtained a new business license for Zhejiang Haizheng Xuantai Pharmaceutical Co., Ltd.[164]. - The company is committed to timely information disclosure regarding the progress of its restructuring and legal matters[168]. Shareholder Information - The total number of shares increased to 1,168,843,462 shares after the issuance of 203,311,620 new shares[183]. - The company acquired a 49% stake in Hanhui Pharmaceutical Co., Ltd. from HPPC Holding SARL, issuing 143,380,114 shares as part of the transaction[183]. - The total number of shareholders reached 58,504 by the end of the reporting period[186]. - Zhejiang Haizheng Group Co., Ltd. holds 320,783,590 shares, representing 27.44% of the total shares[186]. - HPPC Holding SARL holds 143,380,114 shares, accounting for 12.27% of the total shares[186]. - The company has 965,531,842 unrestricted circulating shares, which is 82.60% of the total shares[182]. - The company’s limited shares before the change were 203,311,620, which is 17.40% of the total shares[179]. - HPPC Holding SARL holds 143,380,114 restricted shares, which will be tradable on March 18, 2022[193]. - Taizhou Jiaojiang State-owned Capital Operation Group Co., Ltd. holds 59,931,506 restricted shares, which will be tradable on March 24, 2024[193]. Debt and Financing - The company issued 2016 corporate bonds with a total amount of 0 billion RMB and an interest rate of 5.9%[197]. - The 2016 corporate bonds were fully guaranteed by the controlling shareholder, Haizheng Group, and the actual controller, Taizhou Jiaojiang State-owned Capital Operation Group Co., Ltd.[200]. - The company completed the principal and interest payment for the 2016 corporate bonds on March 16, 2021[200].