江中药业(600750) - 2021 Q1 - 季度财报

Part I. Important Notice The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities 1.1-1.4 Statement on Report Authenticity and Audit Status The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities, with the report approved by all directors but unaudited - Company management guarantees the truthfulness, accuracy, and completeness of the quarterly report content and assumes legal responsibility[7][8] - This company's Q1 2021 report is unaudited[9] Part II. Company Profile This section provides an overview of the company's key financial performance, operational highlights, and shareholder structure for the reporting period 2.1 Key Financial Data and Operating Performance In Q1 2021, the company achieved operating revenue of RMB 677.47 million, a 28.97% year-on-year increase, and net profit attributable to shareholders of RMB 159.35 million, up 21.25%, driven by traditional channel recovery and online expansion, with OTC drugs as a core revenue source and improved gross margin, despite a 59.23% year-on-year decline in net cash flow from operating activities Key Financial Indicators | Indicator | Q1 2021 | Q1 2020 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 677,474,161.29 | 525,279,630.39 | 28.97% | | Net Profit Attributable to Parent Company Shareholders (RMB) | 159,348,929.61 | 131,424,924.09 | 21.25% | | Basic EPS (RMB/share) | 0.25 | 0.21 | 19.05% | | Net Cash Flow from Operating Activities (RMB) | 63,402,049.04 | 155,522,193.97 | -59.23% | - Operating revenue growth during the reporting period was primarily due to the gradual recovery of traditional channel demand and expansion of online channels as the pandemic improved[17] Main Business by Product | Main Business by Product | Operating Revenue (RMB) | Gross Margin (%) | Operating Revenue YoY Change (%) | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | OTC Drugs | 560,369,687.62 | 67.96% | 25.73% | Increased by 2.64 percentage points | | Prescription Drugs | 67,223,736.83 | 58.98% | 16.45% | Decreased by 7.97 percentage points | | Health Products and Others | 48,535,054.30 | 44.13% | 131.27% | Decreased by 2.09 percentage points | - The increase in gross margin for OTC drugs was mainly due to a decrease in unit production costs resulting from increased output[17] 2.2 Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) at Report End As of the end of the reporting period, the company had 43,416 shareholders, with China Resources Jiangzhong Pharmaceutical Group Co., Ltd. as the controlling shareholder holding 43.03%, and no other related parties or concerted actions among the top ten shareholders - As of the end of the reporting period, the company had 43,416 shareholders[18] Top Ten Shareholders | Shareholder Name | Shares Held (shares) | Proportion (%) | | :--- | :--- | :--- | | China Resources Jiangzhong Pharmaceutical Group Co., Ltd. | 271,071,486 | 43.03 | | Central Huijin Asset Management Co., Ltd. | 15,891,120 | 2.52 | | China Merchants Wealth Management - China Merchants Bank - China Merchants Wealth - Zhiyuan No. 2 Collective Asset Management Plan | 9,439,085 | 1.50 | Part III. Significant Events This section details significant financial and operational events, including major changes in financial items, progress on key matters, and performance forecasts 3.1 Significant Changes and Reasons for Key Accounting Statement Items and Financial Indicators During the reporting period, several financial items experienced significant changes, with trading financial assets increasing by 30% due to wealth management product purchases, while accounts receivable financing decreased by 95% due to bill reclassification; sales and R&D expenses surged by 46% and 120% respectively to boost market and research efforts, and net cash flow from operating activities declined by 59% due to reduced collection of matured bank acceptance bills - The period-end balance of trading financial assets increased by 30.09% compared to the end of last year, primarily due to increased purchases of bank wealth management products using idle funds[21] - The period-end balance of accounts receivable financing decreased by 95.25% compared to the end of last year, primarily due to bill reclassification[24] - Sales expenses increased by 46.18% year-on-year, mainly due to increased marketing and promotion costs; R&D expenses increased by 119.87% year-on-year, primarily due to an increase in R&D projects[24] - Net cash flow from operating activities decreased by 59.23% year-on-year, primarily due to a decrease in the collection of matured bank acceptance bills[24] 3.2 Analysis of Progress, Impact, and Solutions for Significant Matters The company disclosed two significant matters: a RMB 6.75 million overdue entrusted loan is being pursued through communication and preparation for legal action, while the company actively utilized idle funds for entrusted wealth management, with RMB 2.093 billion invested at period-end, primarily in principal-protected floating-rate products Entrusted Loan Status Of the RMB 13.5 million entrusted loan issued to Jiangxi Changrong Automobile Sales Co., Ltd. in 2018, RMB 6.75 million in principal remains overdue, with the company communicating with the borrower, guarantor, and insurer, and preparing for litigation if necessary to protect its rights - Of the entrusted loan to Changrong Automobile, RMB 6.75 million in principal is overdue[28] - The company is preparing to pursue recovery of the overdue loan through legal means[28] Entrusted Wealth Management Status As of the end of the reporting period, the company's total entrusted wealth management using its own funds amounted to RMB 2.093 billion, invested in structured deposits and wealth management products from multiple banks, primarily principal-protected and non-principal-protected floating-rate products, with realized gains of approximately RMB 12.85 million and expected gains of approximately RMB 12.75 million Entrusted Wealth Management Summary | Wealth Management Item | Amount (RMB) | | :--- | :--- | | Total Entrusted Wealth Management Amount | 2,093,000,000.00 | | Actual Period Gain | 12,853,257.30 | | Expected Gain | 12,751,912.34 | | Actual Principal Recovered | 823,000,000.00 | - The company plans to continue engaging in entrusted wealth management in the future[31][34][37] 3.4 Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change Compared to Prior Year-End to Next Reporting Period-End The company does not anticipate cumulative net profit from the beginning of the year to the end of the next reporting period to be a loss or to undergo significant changes compared to the same period last year - The company has not issued a warning regarding potential cumulative net profit loss or significant changes for the next reporting period[46] Part IV. Appendix This section contains the company's unaudited financial statements for the first quarter of 2021 and details on the first-time adoption of new lease standards 4.1 Financial Statements This section provides the company's unaudited consolidated and parent company financial statements for Q1 2021, including the balance sheet, income statement, and cash flow statement, offering detailed data support for the report's financial analysis Consolidated Financial Statement Summary (March 31, 2021) | Consolidated Financial Statement Summary (March 31, 2021) | Amount (RMB) | | :--- | :--- | | Balance Sheet | | | Total Assets | 5,058,290,610.52 | | Total Liabilities | 644,863,526.22 | | Total Equity Attributable to Parent Company Shareholders | 4,036,223,213.00 | | Income Statement (Q1 2021) | | | Total Operating Revenue | 677,474,161.29 | | Total Profit | 190,218,880.73 | | Net Profit Attributable to Parent Company Shareholders | 159,348,929.61 | | Cash Flow Statement (Q1 2021) | | | Net Cash Flow from Operating Activities | 63,402,049.04 | | Net Cash Flow from Investing Activities | -54,024,668.41 | | Net Cash Flow from Financing Activities | 0.00 | 4.2 Adjustments to Financial Statements at the Beginning of the First Year of Adoption of New Lease Standards from 2021 Effective January 1, 2021, the company adopted new lease standards, retrospectively adjusting opening financial statements primarily by recognizing 'right-of-use assets' and 'lease liabilities' with minor adjustments to retained earnings, resulting in a limited impact on the overall asset and liability structure - The company first adopted new lease standards on January 1, 2021, and adjusted relevant items in the opening financial statements[88][94] Key Consolidated Statement Adjustment Items | Key Consolidated Statement Adjustment Items | Adjustment Amount (RMB) | | :--- | :--- | | Right-of-Use Assets | +414,361.52 | | Lease Liabilities | +406,497.33 | | Retained Earnings | +6,315.28 | 4.4 Audit Report This quarterly financial report is unaudited - The audit report section of this quarterly report is marked 'Not Applicable,' indicating that the financial statements are unaudited[97]