BHC(SH:600721)2020-10-22 16:00Financial Performance - Operating revenue for the first nine months was CNY 81,620,014.02, down 59.66% year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 41,881,540.74, representing a decrease of 184.05% compared to the same period last year[7] - Basic and diluted earnings per share were both CNY -0.1065, a decline of 185.54% year-on-year[8] - The company reported a net loss of CNY 101,908,886.13 attributable to shareholders, a decline of 333.08% year-on-year[7] - The company reported a net loss of 23.01 million yuan in the third quarter, with a revenue drop of 66.83% compared to the same period last year, primarily due to contract terminations[15] - Total revenue for Q3 2020 was -17,410,053.23 CNY, compared to 69,197,985.80 CNY in Q3 2019, indicating a significant decline[34] - Net profit for Q3 2020 was -5,147,302.38 CNY, compared to a net profit of 12,224,706.18 CNY in Q3 2019, representing a year-over-year decline of 142.1%[35] Cash Flow - Cash flow from operating activities for the first nine months was CNY 2,002,156.36, an increase of 105.23% compared to the same period last year[7] - Net cash flow from operating activities was 2.00 million yuan, an increase of 4,029.54 million yuan compared to the same period last year, primarily due to receiving 73.05 million yuan in compensation and arbitration fees[22] - Net cash flow from investing activities was 33.15 million yuan, an increase of 6,420.78 million yuan year-on-year, mainly due to a reduction of 67.20 million yuan in cash outflow for purchasing bank wealth management products[22] - Net cash flow from financing activities was -0.66 million yuan, a decrease of 467.08 million yuan compared to the same period last year, primarily due to a reduction in cash received from borrowings[23] - The net cash flow from operating activities for the first nine months of 2020 was ¥2,002,156.36, a recovery from a negative cash flow of ¥38,293,210.29 in the same period of 2019[43] - Total cash inflow from operating activities was 136,311,122.18 RMB, compared to 49,097,058.55 RMB in the first three quarters of 2019, indicating a significant increase[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,279,393,041.50, a decrease of 0.91% compared to the end of the previous year[7] - Total liabilities were 381.85 million yuan, an increase from 336.51 million yuan at the end of 2019[29] - The company's total equity attributable to shareholders was 897.54 million yuan, down from 954.70 million yuan at the end of 2019[30] - Total liabilities increased to 133,064,497.91 CNY in Q3 2020, compared to 91,109,367.03 CNY in Q3 2019, marking an increase of approximately 46%[33] - The company's total equity as of Q3 2020 was 963,921,252.95 CNY, up from 923,945,764.05 CNY in Q3 2019, showing a growth of about 4.3%[33] Operational Changes - The company terminated 29 pharmaceutical R&D contracts, resulting in a revenue reduction of 59.70 million yuan and a profit decrease of 65.99 million yuan[17] - The company plans to adjust its strategic layout towards a combination of generic and innovative drug development in response to market changes[19] - The company aims to enhance its business team and improve customer service to mitigate the impact of contract terminations and revenue declines[20] - The company has not reported any new product launches or technological advancements during this period, indicating a potential area for future growth[54] Financial Ratios and Metrics - The weighted average return on equity decreased by 9.87 percentage points to -4.56%[8] - Financial expenses surged to 17.03 million yuan, an increase of 5581.65% from 0.30 million yuan, mainly due to the recognition of unconfirmed financing costs[20] - The company's total liabilities to equity ratio indicates a leverage position that may require monitoring for financial stability[53] Other Income and Expenses - Other income decreased to 1.32 million yuan, down 43.01% from 2.32 million yuan, primarily due to reduced government subsidies[21] - The company incurred a credit impairment loss of 5,719,269.51 CNY in Q3 2020, compared to a recovery of -667,996.07 CNY in Q3 2019, indicating a significant deterioration in credit quality[35] - The company reported a financial expense of ¥15,693,623.42 in Q3 2020, significantly higher than ¥178,217.36 in Q3 2019[38]