振德医疗(603301) - 2021 Q1 - 季度财报

I. Important Notice The company's management assures the truthfulness and completeness of this quarterly report, taking full legal responsibility - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibilities[8] - This company's Q1 2021 report is unaudited[11] II. Company Profile This section provides an overview of the company's key financial performance and shareholder structure 2.1 Key Financial Data In Q1 2021, the company achieved explosive growth with revenue up 181.26% and net profit attributable to shareholders up 195.85%, driven by increased sales of epidemic prevention products and strong growth in conventional business Key Financial Data for Q1 2021 | Indicator | Current Period | Prior Year Same Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 1,994,536,800.50 | 709,139,585.11 | 181.26% | | Net Profit Attributable to Shareholders (Yuan) | 254,172,328.25 | 85,912,862.61 | 195.85% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | 236,981,089.46 | 87,300,052.13 | 171.46% | | Net Cash Flow from Operating Activities (Yuan) | 229,569,623.19 | 197,190,457.14 | 16.42% | | Basic Earnings Per Share (Yuan/share) | 1.12 | 0.44 | 154.55% | | Weighted Average Return on Net Assets (%) | 5.96% | 6.13% | Decrease of 0.17 percentage points | - Revenue growth was primarily driven by a significant increase in sales of epidemic prevention products (masks, protective suits, isolation gowns) and growth in non-epidemic related businesses, with main business revenue reaching 1.991 billion Yuan, a 181.59% year-on-year increase[15] - Excluding epidemic prevention products, the company's main business revenue was 993 million Yuan, a 119.49% year-on-year increase on a comparable basis, demonstrating strong organic growth in core businesses[15] - Total non-recurring gains and losses for the reporting period amounted to 17.19 million Yuan, primarily from government subsidies and gains/losses from entrusted investments or asset management[16][19] 2.2 Total Number of Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Non-Restricted Shareholders) as of the End of the Reporting Period As of the end of the reporting period, the company had 48,091 shareholders, with Zhejiang Zhende Holding Co Ltd as the controlling shareholder at 48.06%, and the actual controllers being Mr. Lu Jianguo and Ms. Shen Zhenfang - As of the end of the reporting period, the company had 48,091 shareholders[19] Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Zhejiang Zhende Holding Co Ltd | 109,191,600 | 48.06 | | Shen Zhenfang | 9,310,000 | 4.10 | | Lou Zhangdian | 2,101,600 | 0.92 | | Zhende Medical Products Co Ltd Repurchase Special Securities Account | 2,100,000 | 0.92 | | Lu Zhiying | 1,896,000 | 0.83 | - The shares held by controlling shareholder Zhejiang Zhende Holding Co Ltd and one of the company's actual controllers, Shen Zhenfang, are restricted shares; Lu Jianguo holds 83.50% of Zhejiang Zhende, and he and Shen Zhenfang are a married couple, serving as the company's joint actual controllers[22] III. Significant Events This section details major financial changes, progress on significant matters, and commitments 3.1 Significant Changes in Major Accounting Statement Items and Financial Indicators of the Company and Their Reasons During the reporting period, several financial statement items showed significant changes due to business expansion and accounting standard changes, with revenue, costs, and expenses increasing substantially, and new right-of-use assets and lease liabilities recognized under new leasing standards, alongside a 246.98% increase in R&D expenses Significant Changes in Consolidated Income Statement Items | Item | Current Period Amount (Yuan) | Prior Year Same Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,994,536,800.50 | 709,139,585.11 | 181.26% | Sales of epidemic prevention products and growth in conventional business | | Operating Cost | 1,242,954,241.51 | 410,733,839.84 | 202.62% | Increased proportionally with revenue growth | | Selling Expenses | 178,043,461.88 | 79,674,592.83 | 123.46% | Increase in sales service fees and personnel salaries | | Administrative Expenses | 155,995,087.59 | 82,925,774.64 | 88.11% | Increase in management personnel and salaries, and project investments | | R&D Expenses | 50,728,197.29 | 14,619,882.05 | 246.98% | Increase in R&D investment | | Financial Expenses | 2,128,390.55 | 8,705,805.55 | -75.55% | Impact of convertible bond redemption in prior year | | Non-controlling Interests | 56,148,766.13 | 643,229.40 | 8,629.20% | Significant increase in net profit of UK subsidiary Rocialle Healthcare | Significant Changes in Consolidated Balance Sheet Items | Item | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 77,060,007.25 | 0 | - | Implementation of new leasing standards | | Intangible Assets | 332,248,036.72 | 225,622,351.56 | 47.26% | Prepaid land payments transferred in | | Lease Liabilities | 63,614,691.58 | 0 | - | Implementation of new leasing standards | | Long-term Borrowings | 0 | 95,117,562.50 | -100.00% | Repayment of long-term borrowings | Significant Changes in Consolidated Cash Flow Statement Items | Item | Current Period Amount (Yuan) | Prior Year Same Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | 215,158,415.67 | -255,684,540.55 | - | Redemption of wealth management products increased cash inflow | | Net Cash Flow from Financing Activities | -231,357,023.08 | 106,802,902.84 | -316.62% | Repayment of long-term borrowings and share repurchases increased cash outflow | 3.2 Analysis and Explanation of Progress, Impact, and Solutions for Significant Matters During the reporting period, the company completed its share repurchase plan, repurchasing 2.1 million shares (0.92% of total capital), while Suzhou Medis fulfilled its two-year performance commitments, and the company invested in Baoma Medical, acquiring a 4.95% stake to expand into minimally invasive surgical consumables - The company completed its share repurchase plan, cumulatively repurchasing 2,100,000 shares, accounting for 0.92% of the total share capital, with a total value of 133 million Yuan, and the repurchased shares will be used for equity incentive plans[30] - Suzhou Medis Medical Sports Products Co Ltd, acquired by the company, has fulfilled its performance commitments for 2019 and 2020, and related goodwill has been tested and found not to be impaired[30] - The company invested 49.5 million Yuan in Baoma Medical Technology (Wuxi) Co Ltd through capital increase and equity acquisition, holding a 4.95% stake post-transaction, aiming to expand into the field of minimally invasive surgical consumables[30][33] 3.3 Unfulfilled Commitments Beyond Due Date During the Reporting Period During the reporting period, the company had no unfulfilled commitments beyond their due date - The company had no unfulfilled commitments beyond their due date during this reporting period[34] 3.4 Warning and Explanation Regarding Potential Cumulative Net Profit Loss or Significant Change Compared to the Same Period Last Year from the Beginning of the Year to the End of the Next Reporting Period The company has not issued any warnings regarding potential cumulative net profit loss or significant year-on-year changes from the beginning of the year to the end of the next reporting period - The company has not issued any forecast warnings regarding significant changes or losses in cumulative net profit from the beginning of the year to the end of the next reporting period[34] IV. Appendix This section includes the unaudited financial statements for the reporting period 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, comprehensively reflecting the financial position, operating results, and cash flows for the period Consolidated Balance Sheet As of March 31, 2021, the company's total assets were 6.579 billion Yuan, a 2.80% increase from the end of the prior year, with net assets attributable to shareholders at 4.301 billion Yuan, up 2.83% Key Items from Consolidated Balance Sheet (March 31, 2021) | Item | Amount (Yuan) | | :--- | :--- | | Assets | | | Cash and Cash Equivalents | 1,852,822,693.31 | | Accounts Receivable | 659,817,933.00 | | Inventories | 1,066,089,686.26 | | Total Assets | 6,579,297,872.18 | | Liabilities | | | Short-term Borrowings | 350,356,736.11 | | Accounts Payable | 682,751,907.00 | | Total Liabilities | 1,937,100,394.35 | | Shareholders' Equity | | | Equity Attributable to Parent Company Owners | 4,301,318,433.74 | | Total Shareholders' Equity | 4,642,197,477.83 | Parent Company Balance Sheet As of March 31, 2021, the parent company's total assets were 4.306 billion Yuan, total liabilities were 1.361 billion Yuan, and the asset-liability ratio was 31.61% Key Items from Parent Company Balance Sheet (March 31, 2021) | Item | Amount (Yuan) | | :--- | :--- | | Assets | | | Cash and Cash Equivalents | 857,283,091.17 | | Prepayments | 851,291,004.33 | | Total Assets | 4,306,246,005.78 | | Liabilities | | | Short-term Borrowings | 250,255,902.78 | | Other Payables | 555,975,788.99 | | Total Liabilities | 1,361,343,181.42 | | Shareholders' Equity | | | Total Owners' Equity | 2,944,902,824.36 | Consolidated Income Statement In Q1 2021, the company achieved total operating revenue of 1.995 billion Yuan, up 181.26% year-on-year, and net profit attributable to parent company shareholders of 254 million Yuan, up 195.85%, significantly enhancing profitability Key Items from Consolidated Income Statement (Q1 2021) | Item | Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Total Operating Revenue | 1,994,536,800.50 | +181.26% | | Total Operating Cost | 1,643,851,870.78 | +173.38% | | Operating Profit | 363,940,889.03 | +248.11% | | Total Profit | 364,628,010.00 | +251.47% | | Net Profit | 310,321,094.38 | +258.54% | | Net Profit Attributable to Parent Company Shareholders | 254,172,328.25 | +195.85% | Parent Company Income Statement In Q1 2021, the parent company achieved operating revenue of 1.125 billion Yuan, up 160.79% year-on-year, and net profit of 50.66 million Yuan, a 50.05% year-on-year decrease Key Items from Parent Company Income Statement (Q1 2021) | Item | Amount (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 1,125,254,949.67 | +160.79% | | Operating Profit | 60,170,929.05 | -49.08% | | Total Profit | 60,991,666.93 | -48.08% | | Net Profit | 50,663,402.91 | -50.05% | Consolidated Cash Flow Statement In Q1 2021, net cash flow from operating activities was 230 million Yuan, up 16.42% year-on-year, while net cash flow from investing activities turned positive to 215 million Yuan from -256 million Yuan due to wealth management product redemptions, and net cash outflow from financing activities was 231 million Yuan for debt repayment and share repurchases Key Items from Consolidated Cash Flow Statement (Q1 2021) | Item | Amount (Yuan) | Last Year Same Period (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 229,569,623.19 | 197,190,457.14 | | Net Cash Flow from Investing Activities | 215,158,415.67 | -255,684,540.55 | | Net Cash Flow from Financing Activities | -231,357,023.08 | 106,802,902.84 | | Net Increase in Cash and Cash Equivalents | 214,305,361.38 | 34,328,432.93 | Parent Company Cash Flow Statement In Q1 2021, the parent company's net cash flow from operating activities significantly increased to 362 million Yuan from 47.08 million Yuan in the prior year, with net cash flow from investing activities turning positive, and net cash outflow from financing activities at 231 million Yuan Key Items from Parent Company Cash Flow Statement (Q1 2021) | Item | Amount (Yuan) | Last Year Same Period (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 361,754,948.26 | 47,084,029.09 | | Net Cash Flow from Investing Activities | 324,342,635.98 | -246,306,352.10 | | Net Cash Flow from Financing Activities | -231,379,353.81 | 106,802,902.84 | | Net Increase in Cash and Cash Equivalents | 442,061,249.87 | -109,241,990.17 | 4.2 Information on Adjustments to Financial Statements at the Beginning of the First Year of Adoption of New Lease Standards from 2021 The company adopted new lease standards from January 1, 2021, retrospectively adjusting opening financial statements to recognize 76.78 million Yuan in right-of-use assets and 62.66 million Yuan in lease liabilities on the consolidated balance sheet, while reducing prepayments by 14.12 million Yuan, using a simplified approach without restating comparative periods - The company began implementing the revised 'Accounting Standard for Business Enterprises No 21 – Leases' issued by the Ministry of Finance on January 1, 2021[79] - Under the new standards, the company applies the same accounting treatment to all leases (except short-term and low-value leases), recognizing right-of-use assets and lease liabilities[79] Major Impact of New Lease Standards Adoption on Opening Consolidated Financial Statements | Item | Before Adjustment (Yuan) | Adjustment Amount (Yuan) | After Adjustment (Yuan) | | :--- | :--- | :--- | :--- | | Prepayments | 140,822,929.78 | -14,122,198.59 | 126,700,731.19 | | Right-of-Use Assets | 0 | +76,783,070.98 | 76,783,070.98 | | Lease Liabilities | 0 | +62,660,872.39 | 62,660,872.39 | 4.4 Audit Report This quarterly report is unaudited - This quarterly financial report is unaudited[87]