九州通(600998) - 2019 Q3 - 季度财报

Important Notice The company's board, supervisors, and senior management guarantee the accuracy and completeness of this quarterly report, which remains unaudited - The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and bear corresponding legal responsibilities[4] - Liu Baolin, the company's head, Xu Yingzheng, the person in charge of accounting, and Xia Xiaoyi, the head of the accounting department, guarantee the truthfulness, accuracy, and completeness of the financial statements[4] - This company's Q3 2019 report is unaudited[4] Company Profile This section provides an overview of the company's key financial performance, operational highlights, and shareholder structure for the reporting period Key Financial Data and Operating Performance In Q1-Q3 2019, operating revenue grew 15.11% to 73.379 billion yuan, and net profit attributable to shareholders increased 32.05% to 1.019 billion yuan, driven by sales growth and government subsidies, with operating cash flow improving 35.84% Financial Indicators (Q1-Q3 2019) | Indicator (Q1-Q3 2019) | Amount | Y-o-Y Change | | :--- | :--- | :--- | | Operating Revenue | 73.379 billion yuan | +15.11% | | Net Profit Attributable to Listed Company Shareholders | 1.019 billion yuan | +32.05% | | Net Profit Attributable to Parent Company Excluding Non-recurring Items | 0.862 billion yuan | +26.14% | | Net Cash Flow from Operating Activities | -2.711 billion yuan | +35.84% | | Basic Earnings Per Share | 0.55 yuan/share | +30.95% | Business Segment (Q1-Q3 2019) | Business Segment (Q1-Q3 2019) | Operating Revenue (billion yuan) | Y-o-Y Growth | | :--- | :--- | :--- | | Pharmaceutical Wholesale and Related Businesses | 70.7378 | +15.75% | | Pharmaceutical Retail | 0.1357 | -6.41% | | Pharmaceutical Manufacturing | 0.1105 | +4.80% | | Total | 73.1995 | +15.07% | Product Segment (Q1-Q3 2019) | Product Segment (Q1-Q3 2019) | Operating Revenue (billion yuan) | Y-o-Y Growth | | :--- | :--- | :--- | | Western and Chinese Patent Medicines | 56.8940 | +12.87% | | Chinese Herbal Medicines and Decoction Pieces | 2.5617 | +5.79% | | Medical Devices and Family Planning Products | 11.3314 | +44.40% | | Food, Health Products, Cosmetics, etc. | 2.4124 | -17.93% | - Total non-recurring gains and losses for the reporting period amounted to 0.156 billion yuan, primarily from government subsidies of 0.142 billion yuan[9][10] Shareholder Information As of Q3 2019, the company had 27,217 shareholders, with the top three being Shanghai Hongkang, Chuchang Investment, and Lion Dragon International, and the controlling shareholder having a high proportion of pledged shares - As of the end of the reporting period, the company had a total of 27,217 shareholders[11] Major Shareholder Name | Major Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Shanghai Hongkang Industrial Investment Co., Ltd. | 437,441,118 | 23.30 | | Chuchang Investment Group Co., Ltd. | 221,113,898 | 11.78 | | Lion Dragon International Group (Hong Kong) Co., Ltd. | 213,894,000 | 11.39 | | Zhongshan Guangyin Investment Co., Ltd. | 132,624,583 | 7.06 | | Beijing Dianjin Investment Co., Ltd. | 102,763,876 | 5.47 | - Among the top ten shareholders, Shanghai Hongkang, Chuchang Investment, Beijing Dianjin, Zhongshan Guangyin, and their controlling shareholders have affiliated relationships or constitute concerted parties[12] Preferred Shareholder Information As of the end of the reporting period, the company had no preferred shareholders - The company had no preferred shareholders at the end of the reporting period[12] Significant Events This section details major changes in financial statement items, the progress of significant corporate actions, and the fulfillment of commitments Major Changes in Key Financial Statement Items and Indicators and Their Reasons During the reporting period, the company experienced significant changes in financial indicators, including a 159.55% increase in construction in progress due to reclassification of properties, a 429.41% surge in long-term borrowings from a World Bank loan, a 51.19% rise in financial expenses, and a substantial 85.83% decrease in net cash flow from financing activities due to debt repayment and share repurchases Major Changes and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Construction in Progress | +159.55 | Part of the properties' use changed from inventory to self-use construction in progress accounting | | Long-term Borrowings | +429.41 | Received World Bank loan | | Treasury Stock | +122.29 | Company repurchased shares | | Financial Expenses | +51.19 | Expanded business scale, increased interest expenses from bank borrowings and asset securitization | | Investment Income | +148.04 | Increased investment income from equity method accounting and disposal of subsidiary investments | | Other Income | +109.09 | Increased government subsidies | | Net Cash Flow from Financing Activities | -85.83 | Significant increase in cash paid for debt repayment and share repurchases | - Changes in several balance sheet items resulted from the company's adoption of the newly revised "Accounting Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments" from January 1, 2019, introducing new accounts like "Financial Assets Held for Trading" and "Receivables Financing," while discontinuing old accounts such as "Available-for-sale Financial Assets"[14] Progress of Significant Events, Their Impact, and Solutions Analysis During the reporting period, the company advanced a 2 billion yuan preferred share private placement, repurchased 39.77 million shares for 550 million yuan, and secured a 1 billion yuan IFC loan, while the controlling shareholder issued 1 billion yuan in exchangeable bonds to reduce share pledges - The company plans to privately issue no more than 20 million preferred shares, raising a total of no more than 2 billion yuan, with the application accepted by the China Securities Regulatory Commission on October 11, 2019[16] - The company implemented a share repurchase program, having cumulatively repurchased 39.7687 million shares (2.12% of total share capital) for a total of 550 million yuan as of September 30, 2019[17] - Controlling shareholder Chuchang Investment plans to issue exchangeable corporate bonds totaling no more than 1 billion yuan to adjust its debt structure and reduce its share pledge ratio, with the pledge ratio for its concerted parties expected to decrease to 68.11% upon completion[18] - The company received a 1 billion yuan long-term loan from the International Finance Corporation (IFC), a member of the World Bank Group, on July 10, 2019, with an 8-year term and a comprehensive interest rate of 4.55%[20] Overdue Unfulfilled Commitments During the Reporting Period During the reporting period, the company had no overdue unfulfilled commitments - The company had no overdue unfulfilled commitments[20] Performance Forecast Warning The company has not issued any warning regarding a potential cumulative net loss or significant change in net profit from the beginning of the year to the end of the next reporting period compared to the same period last year - The company has not forecasted a cumulative net loss or significant change in net profit from the beginning of the year to the end of the next reporting period[20] Appendix This section includes the unaudited financial statements for Q3 2019, details on adjustments due to new financial instrument standards, and a statement on the absence of an audit report Financial Statements This section presents the company's unaudited Q3 2019 financial statements, including consolidated and parent company balance sheets, income statements, and cash flow statements, reflecting the financial position as of September 30, 2019, and operating results and cash flows for the first three quarters of 2019 Consolidated Balance Sheet As of September 30, 2019, the company's total assets were 67.691 billion yuan, a 1.53% increase from the end of the previous year, while total liabilities were 47.270 billion yuan, and net assets attributable to listed company shareholders decreased by 3.32% to 17.854 billion yuan, primarily due to perpetual bond payments and share repurchases Consolidated Balance Sheet Summary | Item | September 30, 2019 (yuan) | December 31, 2018 (yuan) | | :--- | :--- | :--- | | Total Assets | 67,691,136,014.12 | 66,674,253,350.59 | | Total Liabilities | 47,269,695,578.56 | 46,292,251,257.71 | | Total Equity Attributable to Parent Company Owners | 17,854,134,941.21 | 18,467,103,509.01 | Parent Company Balance Sheet As of September 30, 2019, the parent company's total assets were 40.438 billion yuan, total liabilities were 25.176 billion yuan, and total owner's equity was 15.261 billion yuan, showing a decrease from the end of the previous year Parent Company Balance Sheet Summary | Item | September 30, 2019 (yuan) | December 31, 2018 (yuan) | | :--- | :--- | :--- | | Total Assets | 40,437,598,554.62 | 40,628,870,789.93 | | Total Liabilities | 25,176,373,039.95 | 24,461,187,994.99 | | Total Owner's Equity | 15,261,225,514.67 | 16,167,682,794.94 | Consolidated Income Statement In the first three quarters of 2019, the company achieved total operating revenue of 73.379 billion yuan, a 15.11% year-on-year increase, with total operating costs of 72.198 billion yuan, and net profit attributable to parent company shareholders reaching 1.019 billion yuan, up 32.05% Consolidated Income Statement Summary | Item | Q1-Q3 2019 (yuan) | Q1-Q3 2018 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 73,378,823,740.22 | 63,746,017,068.81 | | Operating Profit | 1,316,832,956.27 | 1,020,201,771.00 | | Total Profit | 1,322,329,393.35 | 1,027,260,015.42 | | Net Profit Attributable to Parent Company Shareholders | 1,018,557,167.44 | 771,365,970.22 | Parent Company Income Statement In the first three quarters of 2019, the parent company achieved operating revenue of 9.795 billion yuan, a 9.25% year-on-year increase, with net profit of 782 million yuan, up 4.86%, and investment income being a significant component at 1.003 billion yuan Parent Company Income Statement Summary | Item | Q1-Q3 2019 (yuan) | Q1-Q3 2018 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 9,795,496,081.98 | 8,966,040,178.66 | | Investment Income | 1,002,595,533.25 | 675,291,476.42 | | Net Profit | 781,667,836.22 | 745,456,405.21 | Consolidated Cash Flow Statement In the first three quarters of 2019, net cash flow from operating activities significantly improved to -2.711 billion yuan from -4.226 billion yuan in the prior year, with net cash outflow from investing activities at 782 million yuan, net cash inflow from financing activities at 545 million yuan, and cash and cash equivalents balance at 4.565 billion yuan at period-end Consolidated Cash Flow Statement Summary | Item | Q1-Q3 2019 (yuan) | Q1-Q3 2018 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,711,178,582.95 | -4,225,944,026.25 | | Net Cash Flow from Investing Activities | -782,306,123.90 | -1,176,041,252.37 | | Net Cash Flow from Financing Activities | 544,526,104.98 | 3,841,979,507.15 | | Cash and Cash Equivalents at Period End | 4,565,377,468.66 | 3,999,118,553.15 | Parent Company Cash Flow Statement In the first three quarters of 2019, the parent company's net cash flow from operating activities significantly improved to -1.905 billion yuan from -3.449 billion yuan in the prior year, with net cash inflow from investing activities at 208 million yuan, and net cash outflow from financing activities at 310 million yuan Parent Company Cash Flow Statement Summary | Item | Q1-Q3 2019 (yuan) | Q1-Q3 2018 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,905,390,914.13 | -3,449,388,477.50 | | Net Cash Flow from Investing Activities | 208,001,338.72 | -814,591,762.06 | | Net Cash Flow from Financing Activities | -310,069,343.61 | 2,992,324,810.12 | Adjustments to Opening Financial Statements upon First-time Adoption of New Financial Instruments Standards In accordance with the Ministry of Finance's new financial instrument standards, the company retrospectively adjusted its financial statements as of January 1, 2019, primarily reclassifying financial assets and receivables, which impacted opening retained earnings - The company adjusted its opening financial statement items for 2019 in accordance with the new financial instrument accounting standards issued by the Ministry of Finance[45][49] Major Adjustment Items (Consolidated Statement) | Major Adjustment Items (Consolidated Statement) | Before Adjustment (yuan) | After Adjustment (yuan) | Change Amount (yuan) | | :--- | :--- | :--- | :--- | | Financial Assets Measured at Fair Value... | 967,432.61 | 0 | -967,432.61 | | Financial Assets Held for Trading | 0 | 260,815,503.10 | +260,815,503.10 | | Notes Receivable | 1,380,150,886.41 | 146,590,955.44 | -1,233,559,930.97 | | Receivables Financing | 0 | 1,233,559,930.97 | +1,233,559,930.97 | | Available-for-sale Financial Assets | 291,832,213.80 | 0 | -291,832,213.80 | | Investments in Other Equity Instruments | 0 | 76,776,460.00 | +76,776,460.00 | | Undistributed Profits | 5,320,574,225.20 | 5,352,398,117.24 | +31,823,892.04 | Explanation of Retrospective Adjustment of Prior Period Comparative Data for New Financial Instruments and Lease Standards The company did not retrospectively adjust prior period comparative data for the first-time adoption of new financial instrument and lease standards - The company did not retrospectively adjust prior period comparative data for the first-time adoption of new financial instrument and lease standards[50] Audit Report This quarterly report is unaudited - This financial report is unaudited[50]