SC Pharmaceuticals(SZ:002693)2020-08-20 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 113,857,607.78, a decrease of 35.96% compared to CNY 177,804,707.70 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was a loss of CNY 17,054,245.87, which is a decline of 17.13% from a loss of CNY 14,560,548.35 in the previous year[16]. - The net cash flow from operating activities was negative CNY 41,351,368.57, a significant decrease of 305.32% compared to a positive cash flow of CNY 20,139,999.12 in the same period last year[16]. - The company reported a basic and diluted earnings per share of CNY -0.04, unchanged from the same period last year[16]. - The company achieved a revenue of CNY 113,857,607.78, a year-on-year decrease of 35.96%[32]. - The net profit attributable to shareholders was CNY -17,054,245.87, indicating a loss during the reporting period[32]. - The company's revenue for the reporting period was ¥113,857,607.78, a decrease of 35.96% compared to ¥177,804,707.70 in the same period last year, primarily due to the termination of overseas agency business by its wholly-owned subsidiary, Velo Pharmaceuticals[38]. - The net profit for the first half of 2020 was -4,090,956.91 CNY, compared to -18,693,609.85 CNY in the same period of 2019, showing an improvement[155]. - The total comprehensive loss for the first half of 2020 was CNY 27,613,997.20, compared to a loss of CNY 21,630,200.72 in the same period of 2019[152]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 953,245,471.88, reflecting a slight increase of 0.24% from CNY 950,982,609.23 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company decreased by 3.12% to CNY 529,200,295.11 from CNY 546,255,153.26 at the end of the previous year[16]. - The company's cash and cash equivalents increased to ¥31,065,892.30, representing 3.26% of total assets, up from 0.92% in the previous year, primarily due to new bank loans[47]. - Accounts receivable decreased to ¥29,478,410.81, accounting for 3.09% of total assets, down from 6.26% the previous year, mainly due to the termination of the agency business by a wholly-owned subsidiary[47]. - Inventory decreased to ¥51,034,637.02, representing 5.35% of total assets, down from 5.65% the previous year, also due to the termination of the agency business[47]. - Fixed assets decreased to ¥571,164,484.19, accounting for 59.92% of total assets, down from 63.92% the previous year, primarily due to depreciation[47]. - Total liabilities rose to CNY 302,597,814.43 from CNY 272,720,954.58, an increase of approximately 10.9%[143]. - Short-term borrowings amounted to ¥50,000,000.00, representing 5.25% of total assets, attributed to new bank loans during the reporting period[47]. - Long-term borrowings decreased to ¥167,000,000.00, accounting for 17.52% of total assets, down from 18.44% the previous year, due to repayment of bank loans[47]. Research and Development - The company successfully developed 4 chemical synthetic peptide drugs and 20 other therapeutic drugs, including "Jitai" (Thymosin Alpha-1) which has received marketing authorization from the Italian Medicines Agency[24]. - The company has developed nearly 10 peptide products in recent years, focusing on high market potential and complex synthesis[26]. - The company’s R&D investment increased by 156.06% to ¥47,972,168.85, mainly due to the acquisition of new proprietary technologies during the reporting period[38]. - The R&D team has made significant progress, with the approval of the hydrochloride injection by the FDA and ongoing evaluations for other products[33]. - The company emphasizes its commitment to research and development, aiming to introduce innovative solutions in the healthcare sector to meet market demands[168]. Market and Competitive Position - The company plans to continuously submit DMF and ANDA applications for raw materials to the US and EU, accelerating its internationalization process[29]. - The company plans to avoid risks associated with product concentration by increasing market share through marketing strategies and diversifying the product line via R&D and acquisitions[63]. - The company is actively pursuing strategic initiatives, including potential mergers and acquisitions, to enhance its competitive position in the pharmaceutical industry[168]. - The company has strengthened cost control and management capabilities in response to challenges from national pharmaceutical reforms and centralized procurement policies[32]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures, ensuring compliance with pollution discharge permits and optimizing wastewater treatment processes[35]. - The company has established a comprehensive pollution management system to comply with environmental regulations and reduce environmental risks[64]. - The company participated in a poverty alleviation project, purchasing agricultural products worth RMB 18,600 from impoverished farmers during the COVID-19 pandemic[108]. - The company plans to continue its efforts in industrial and consumption poverty alleviation projects as part of its corporate social responsibility strategy[113]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 29,731[122]. - The largest shareholder, Hainan Shuangcheng Investment Co., Ltd., holds 34.45% of the shares, totaling 139,516,546 shares[122]. - HSP Investment Holdings Limited, the second-largest shareholder, holds 16.03% of the shares, totaling 64,915,479 shares[122]. - The total number of shares issued by the company is 405,000,000, with 99.61% being unrestricted shares[119]. - There were no changes in the controlling shareholder or actual controller during the reporting period[124]. Financial Management and Investments - The company has invested a total of RMB 18.17 million in entrusted financial management products, with an outstanding balance of RMB 7.57 million[94]. - The total amount of entrusted financial management reached 45.4 million, with a projected annualized return of 2.90%[98]. - The financial products included cash, bonds, and non-standardized debt assets, with a specific focus on high liquidity assets[98]. - The investment strategy emphasizes stable investment principles and aims for maximum profit through diversified asset allocation[98]. - The company has identified potential risks related to the inability to recover principal amounts in entrusted financial management[98]. Compliance and Governance - The financial statements were approved by the board of directors on August 19, 2020, ensuring compliance with accounting standards[177]. - The company maintains a continuous operating capability for at least 12 months from the reporting date[179]. - The company’s accounting policies are based on the actual operating characteristics and comply with the relevant accounting standards[180]. - The company includes all subsidiaries in the consolidated financial statements, including controlled enterprises and separable parts of invested units[187].