NKF(SH:603707)2023-10-27 16:00Financial Performance - The company's revenue for Q3 2023 was ¥838,185,440.57, representing a decrease of 4.28% compared to the same period last year[3]. - The net profit attributable to shareholders for Q3 2023 was ¥214,806,533.63, down 26.69% year-over-year[3]. - The net profit excluding non-recurring gains and losses for Q3 2023 was ¥211,955,121.56, a decrease of 25.49% compared to the same period last year[3]. - Basic earnings per share for Q3 2023 were ¥0.13, down 27.78% year-over-year[4]. - Diluted earnings per share for Q3 2023 were ¥0.14, a decrease of 22.22% compared to the same period last year[4]. - The net profit for Q3 2023 was CNY 839,329,356.88, a decrease of 7.2% compared to CNY 904,845,162.80 in Q3 2022[24]. - The total profit for Q3 2023 was CNY 957,050,998.20, compared to CNY 1,050,013,815.96 in Q3 2022, reflecting a decline of 8.8%[24]. - The total comprehensive income for Q3 2023 was CNY 843,990,879.46, compared to CNY 905,879,986.32 in Q3 2022, reflecting a decrease of 6.8%[25]. Cash Flow and Assets - The cash flow from operating activities for the year-to-date period increased by 85.46%, totaling ¥1,171,194,935.25[3][8]. - Cash flow from operating activities for the first three quarters of 2023 was CNY 1,171,194,935.25, significantly higher than CNY 631,513,877.83 in the same period of 2022[27]. - The cash and cash equivalents increased to approximately ¥2.11 billion as of September 30, 2023, compared to ¥1.39 billion at the end of 2022, representing a growth of 51.8%[18]. - The company's inventory stood at approximately ¥5.53 billion as of September 30, 2023, slightly down from ¥5.62 billion at the end of 2022, indicating a decrease of 1.6%[18]. - The total assets as of the end of the reporting period were ¥11,122,721,263.40, an increase of 11.11% from the end of the previous year[4]. - The total assets of the company reached approximately ¥11.12 billion as of September 30, 2023, compared to ¥10.01 billion at the end of 2022, marking an increase of 11.1%[20]. Shareholder Information - Shareholders' equity attributable to shareholders was ¥6,830,234,621.13, reflecting a growth of 10.69% year-over-year[4]. - The total number of ordinary shareholders at the end of the reporting period was 24,366[9]. - The top shareholder, Xie Juhua, holds 27.20% of the shares, totaling 439,682,951 shares[9]. Business Operations and Strategy - The formulation business accounted for 74.16% of total revenue, while the API business contributed 21.82%[13]. - The company has established a stable market share for certain products in the U.S. market, leveraging its sales and operational channels through its subsidiary Meitheal[13]. - The company is focusing on high-end formulations, with a significant shift from API to sterile injectables, reducing the API revenue share from over 60% in 2019 to less than 30% in 2022[13]. - The CDMO business revenue has declined year-over-year, indicating that the business model is still in its early stages[13]. - The company is actively expanding its international market presence, particularly in the U.S. and Europe, to enhance its competitive edge[13]. - The company is collaborating with top international teams for drug development, particularly in the orphan drug XTMAB project, to explore global commercialization opportunities[14]. - The company aims to enhance its global market presence and improve the competitiveness of its product pipeline through strategic partnerships and collaborations[14]. - The company plans to enhance its R&D, registration, production, quality, and marketing capabilities to expand its product pipeline and market presence both domestically and internationally[15]. - The company aims to improve operational efficiency by shortening sales cycles to mitigate the impact of exchange rate fluctuations on business performance[15]. - The company reported a total operating revenue of approximately ¥3.14 billion for the first three quarters of 2023, an increase of 10.2% compared to ¥2.85 billion in the same period of 2022[22]. - The total operating costs for the first three quarters of 2023 were approximately ¥2.18 billion, up from ¥1.82 billion in the same period of 2022, reflecting a year-on-year increase of 20%[22]. Research and Development - R&D expenses for the period reached RMB 61.99 million, an increase of 11.38% compared to the same period last year[14]. - The company has acquired over 10 ANDA approvals from partners, enhancing its platform capabilities for sterile injectables[14]. - Research and development expenses increased to CNY 212,803,589.87 in Q3 2023, up 31.7% from CNY 161,520,139.29 in Q3 2022[24]. Foreign Exchange and Financial Adjustments - The company experienced a foreign exchange loss of approximately ¥12.28 million in Q3 2023 due to the appreciation of the RMB, which significantly impacted net profit compared to the previous year[15]. - The company reported a net profit decline due to foreign exchange losses and increased operational costs, emphasizing the need for strategic adjustments in response to market pressures[15]. - Other comprehensive income after tax for Q3 2023 was CNY 4,661,522.58, compared to CNY 1,034,823.52 in Q3 2022, showing an increase of 351.5%[25]. - The company recorded a financial expense of CNY -65,049,275.88 in Q3 2023, an improvement from CNY -173,863,661.78 in Q3 2022[24]. - The net cash flow from financing activities was -$666.21 million, contrasting with a positive $357.36 million in the previous year[29]. - The impact of exchange rate changes on cash and cash equivalents was -$59.92 million, compared to a positive impact of $28.57 million in the previous year[29].