Haisco(SZ:002653)2019-08-05 16:00Financial Performance - The company's operating revenue for the first half of 2019 was ¥1,868,805,182.18, representing a 57.00% increase compared to ¥1,190,307,663.32 in the same period last year[26]. - The net profit attributable to shareholders for the first half of 2019 was ¥234,834,699.72, a 61.55% increase from ¥145,364,033.49 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥108,820,077.85, showing a significant increase of 105.46% compared to ¥52,963,430.99 in the same period last year[26]. - The basic earnings per share for the first half of 2019 was ¥0.22, up 57.14% from ¥0.14 in the previous year[26]. - The total assets at the end of the reporting period were ¥4,416,029,990.49, reflecting a 1.15% increase from ¥4,365,855,178.39 at the end of the previous year[26]. - The net assets attributable to shareholders at the end of the reporting period were ¥2,055,831,363.15, which is a 1.44% increase from ¥2,026,716,726.57 at the end of the previous year[26]. - The net cash flow from operating activities was ¥146,643,074.72, a decrease of 42.29% compared to ¥254,099,626.03 in the same period last year[26]. - The weighted average return on net assets was 11.13%, an increase of 4.07% from 7.06% in the previous year[26]. Market Position and Product Development - The company holds a 9.80% market share in liver protection drugs, with its main product being the only one of its kind in the domestic market[34]. - The company’s transformation sugar electrolyte injection ranks second in sales among similar products, capturing a market share of 20.94%[34]. - The company leads the market in the sales of injectable lipid-soluble vitamins, holding a market share of 91.62%[35]. - The compound amino acid injection (18AA-VII) is the first in its category, with a market share of 72.30%[35]. - The company’s transformation sugar injection is the top-selling product in its category, with a market share of 57.8%[35]. - The company’s methanesulfonate dolasetron injection has a market share of 23% in the overall market and 100% in its category[35]. - The company has 68 projects in development, including 58 generic drugs and 7 innovative drugs[44]. - In the first half of 2019, the company obtained 2 regulatory approvals, including 1 consistency evaluation and 1 production approval[44]. - The company signed a development and licensing agreement with Glenmark Pharmaceuticals for the registration and sale of Aprepitant capsules in mainland China[41]. Research and Development - Research and development investment increased by 67.36% to ¥228,552,521.66, reflecting the company's commitment to enhancing its product pipeline[50]. - The company submitted 21 patent applications and received 37 patent grants during the reporting period[44]. - The company has established a leading R&D team in the domestic pharmaceutical industry, with 313 patent applications, including 89 authorized invention patents, and nearly 60 new products under development[79]. - The company is actively improving its GMP compliance for R&D products and production processes[46]. Operational Expansion - The company is expanding its operations with ongoing construction of its Shenyang plant and operational headquarters[38]. - The company added over 2,000 hospitals to its network and conducted more than 2,300 academic activities during the reporting period[48]. - The company established new subsidiaries in Beijing, Shanghai, and Sichuan, transitioning to a self-operated marketing model[48]. Financial Health and Investments - The company achieved a net cash outflow from investment activities of ¥-151,742,257.63, attributed to investments in its operational headquarters and R&D center[50]. - Investment during the reporting period increased by 83.99% to CNY 246,966,873.03 compared to CNY 134,225,115.87 in the same period last year[58]. - The company has invested RMB 41.36 million in eXIthera Pharmaceuticals, Inc.[38]. - The company plans to invest 6 million USD to acquire shares in eXIthera and obtain exclusive licensing rights for EP-7041 in China[41]. Risks and Challenges - The company faces risks related to the potential imitation of its leading products and ongoing price adjustments in the pharmaceutical market[6][7]. - The company is exposed to market risks from drug price adjustments, with ongoing trends of price reductions affecting profit margins in the pharmaceutical industry[77]. - The management acknowledges the inherent risks in new product development, including long cycles and high failure rates, which could affect economic benefits[78]. - The company has implemented a multi-series and multi-variety product development strategy to mitigate risks associated with drug price declines[79]. Environmental and Social Responsibility - The company provided 1.3 million yuan in funds and 2,886.93 million yuan in material donations for poverty alleviation, helping 32 registered impoverished individuals to escape poverty[123]. - The company plans to continue targeted assistance for impoverished villagers in the second half of 2019, aiming to improve their living quality and increase family income[124]. - The company has established an emergency response mechanism for environmental incidents, including training and drills for employees[114]. - The company has received multiple environmental impact assessment approvals for various projects, ensuring compliance with environmental regulations[115][116][117][118][119]. - The company has not reported any major environmental pollution incidents or violations during the reporting period[114]. Shareholder Information - The total number of shares remained unchanged at 1,080,270,000 during the reporting period[130]. - The total number of shareholders at the end of the reporting period was 13,205[134]. - Wang Junmin holds 36.99% of the shares, with a total of 399,550,400 shares, and has pledged 175,865,400 shares[134]. - The company has implemented a strategy to manage shareholding structures and executive lock-up periods[132]. Compliance and Governance - The half-year financial report has not been audited[90]. - The company has committed to ensuring that any related party transactions are conducted fairly and transparently[87]. - The company has not experienced any major litigation or arbitration matters during the reporting period[92]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of the stock listing[85].