福安药业(300194) - 2021 Q1 - 季度财报

Important Notice Board of Directors' Statement The company's management confirms the authenticity, accuracy, and completeness of this quarterly report and assumes legal responsibility - The company's management confirms the report is true, accurate, and complete, and assumes legal responsibility[5] - All directors attended the board meeting to review this quarterly report[6] - The company's legal representative, chief accountant, and head of the accounting department guarantee the authenticity, accuracy, and completeness of the financial statements[6] Company Profile Key Accounting Data and Financial Indicators Revenue grew 13.52% year-over-year, but net profit attributable to shareholders decreased by 10.04%, with operating cash flow turning negative 2021 Q1 Key Financial Indicators | Indicator | Current Period | Same Period Last Year | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 649,322,674.71 | 571,998,133.15 | 13.52% | | Net Profit Attributable to Shareholders (RMB) | 61,530,042.45 | 68,396,960.97 | -10.04% | | Net Cash Flow from Operating Activities (RMB) | -11,859,300.03 | 28,689,443.33 | -141.34% | | Basic Earnings Per Share (RMB/Share) | 0.05 | 0.06 | -16.67% | | Weighted Average Return on Equity | 1.49% | 1.70% | -0.21% | | Indicator | End of Current Period | End of Last Year | Change from Last Year-End | | Total Assets (RMB) | 6,116,878,895.09 | 5,972,794,421.99 | 2.41% | | Net Assets Attributable to Shareholders (RMB) | 4,162,589,148.68 | 4,100,195,667.69 | 1.52% | - Non-recurring gains and losses for the period totaled RMB 6.69 million, primarily from government subsidies[10][11] Shareholder Information As of the reporting period end, the company had 46,941 common shareholders, with the largest shareholder holding a 24.00% stake - At the end of the reporting period, the total number of common shareholders was 46,941[13] Top Five Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | Wang Tianxiang | Domestic Natural Person | 24.00% | 285,499,420 | | Jiang Chen | Domestic Natural Person | 2.53% | 30,062,100 | | Fuan Pharmaceutical (Group) Co., Ltd. - Phase I Employee Stock Ownership Plan | Other | 1.83% | 21,774,713 | | Sun Guanghui | Domestic Natural Person | 0.94% | 11,155,918 | | Huang Tao | Domestic Natural Person | 0.93% | 11,123,442 | Changes in Restricted Shares Total restricted shares decreased from 248.75 million to 246.51 million, mainly due to the release of certain executive lock-up shares - During the reporting period, total restricted shares decreased from 248,752,772 to 246,512,872, a net reduction of 2,239,900 shares[18] - Shareholders Huang Tao and Ma Jin had 2,250,000 and 63,900 restricted shares released, respectively, during the period[17] Significant Matters Significant Changes in Key Financial Data and Their Reasons The company experienced significant financial metric fluctuations, including changes in financial assets, investment properties, operating expenses, and cash flow Analysis of Changes in Balance Sheet Items Key balance sheet changes include a decrease in trading financial assets, an increase in investment properties, and shifts in payables and long-term debt - Trading financial assets decreased by 73.32% from the beginning of the period, mainly due to the redemption of wealth management products by a subsidiary[21] - Investment properties increased by 84.08%, primarily from increased investment in the plant construction project of the US subsidiary RED REALTY LLC[21] - Notes payable decreased by 63.06% due to the settlement of matured notes[21] - Employee compensation payable decreased by 67.02% following the payment of prior-year annual bonuses[21] - Long-term borrowings grew by 43.78% as a subsidiary secured new long-term loans[21] Analysis of Changes in Income Statement Items Notable income statement changes include increased administrative and R&D expenses, higher other income from subsidies, and a rise in credit impairment losses - Administrative expenses rose by 35.82% YoY, driven by increases in employee compensation, professional service fees, maintenance costs, and intangible asset amortization[22] - R&D expenses increased by 34.06% YoY due to greater investment in research and development activities[22] - Other income grew by 62.88% YoY, mainly from an increase in government subsidies received[22] - Credit impairment losses increased by 199.39% YoY, primarily due to higher provisions for credit losses resulting from a significant increase in accounts receivable[22] Analysis of Changes in Cash Flow Statement Items Net cash flow from operating activities declined by 141.34%, shifting from a net inflow to a net outflow due to increased operational expenses - Net cash flow from operating activities was -RMB 11.86 million, a decrease of RMB 40.55 million or 141.34% from the prior period, mainly due to a RMB 70.12 million increase in cash outflows for period expenses, labor costs, and taxes[24] Business Review and Outlook Revenue grew 13.52%, but net profit fell 10.04% due to higher expenses, while key products passed consistency evaluations, enhancing competitiveness - During the period, the company achieved operating revenue of RMB 649 million, a YoY increase of 13.52%, while net profit attributable to the parent company was RMB 61.53 million, a YoY decrease of 10.04%, primarily due to increased investments in period expenses and R&D[25] - Key R&D progress: Cefminox Sodium for Injection was the first to pass the generic drug consistency evaluation, and Esomeprazole Sodium for Injection also passed, which will enhance the market competitiveness of these products[26] - The company faces key risks including industry policy changes, R&D failure, safety and environmental issues, and goodwill impairment, which will be addressed through enhanced policy research and product structure optimization[29] Use of Raised Funds The company reallocated RMB 30 million of raised funds from a high-risk R&D project to two new drug development initiatives Overview of Raised Fund Utilization (Unit: RMB Million) | Item | Amount | | :--- | :--- | | Total Raised Funds | 674.41 | | Funds Invested in Q1 | 0.89 | | Cumulative Funds Invested | 651.76 | - The "Zhichu Pharmaceutical New Product R&D Project" underwent significant changes; development of three original products was terminated due to manufacturing difficulties, policy changes, or poor clinical results[34] - The company has reallocated the RMB 30 million in raised funds from the three terminated products to the R&D of Alpha-Lipoic Acid tablets and Febuxostat tablets[34] Financial Statements Consolidated Balance Sheet As of March 31, 2021, total assets reached RMB 6.12 billion, and equity attributable to parent company owners was RMB 4.16 billion Key Items of Consolidated Balance Sheet (Unit: RMB) | Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Assets | 6,116,878,895.09 | 5,972,794,421.99 | | Total Liabilities | 1,498,005,289.50 | 1,417,726,154.08 | | Equity Attributable to Parent Company Owners | 4,162,589,148.68 | 4,100,195,667.69 | | Total Liabilities and Equity | 6,116,878,895.09 | 5,972,794,421.99 | Consolidated Income Statement For Q1 2021, the company generated total operating revenue of RMB 649 million, with net profit attributable to parent company shareholders at RMB 61.53 million Key Items of Consolidated Income Statement (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | I. Total Operating Revenue | 649,322,674.71 | 571,998,133.15 | | II. Total Operating Costs | 603,399,740.90 | 516,110,062.27 | | III. Operating Profit | 68,689,017.19 | 76,970,088.40 | | IV. Total Profit | 68,082,219.88 | 76,705,601.58 | | Net Profit Attributable to Parent Company Shareholders | 61,530,042.45 | 68,396,960.97 | Consolidated Cash Flow Statement In Q1 2021, net cash flow from operating activities was negative RMB 11.86 million, with cash and equivalents ending at RMB 791.65 million Key Items of Consolidated Cash Flow Statement (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -11,859,300.03 | 28,689,443.33 | | Net Cash Flow from Investing Activities | -114,519,377.01 | -209,158,991.21 | | Net Cash Flow from Financing Activities | 112,301,234.81 | 143,806,944.45 | | Net Increase in Cash and Cash Equivalents | -14,544,663.26 | -33,791,867.41 | | Cash and Cash Equivalents at End of Period | 791,646,821.18 | 613,430,709.79 | Notes on Financial Statement Adjustments The company adopted the new lease standard in 2021, but no opening balance sheet adjustments were needed due to the nature of its leases - The company implemented the new lease standard starting in 2021, but no adjustments to the opening balance sheet were required as all leases are short-term or low-value[64]