Fuan Pharmaceutical(SZ:300194)2022-04-25 16:00I. Main Financial Data The company experienced a significant year-over-year decline in Q1 2022 performance, with revenue down 14.88% and net profit attributable to shareholders decreasing by 39.44%, while operating cash flow improved significantly Key Financial Indicators for Q1 2022 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 552.69 million | 649.32 million | -14.88% | | Net Profit Attributable to Shareholders | 37.26 million | 61.53 million | -39.44% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 31.28 million | 54.84 million | -42.97% | | Net Cash Flow from Operating Activities | 58.29 million | -11.86 million | 591.52% | | Basic Earnings Per Share (CNY/share) | 0.03 | 0.05 | -40.00% | | Total Assets | 5.59 billion | 5.71 billion (Year-end prior period) | -2.04% (vs. year-beginning) | | Total Equity Attributable to Shareholders | 3.77 billion | 3.73 billion (Year-end prior period) | 0.97% (vs. year-beginning) | - Total non-recurring gains and losses for the current period amounted to 5.98 million CNY, primarily comprising 8.82 million CNY in government subsidies5 Changes and Reasons for Key Accounting Data and Financial Indicators | Item | Change Rate | Primary Reason | | :--- | :--- | :--- | | Balance Sheet Items | | | | Long-term Deferred Expenses | 149.75% | Increase in factory renovation expenses during the period | | Salaries Payable | -69.43% | Issuance of year-end bonuses accrued in the prior period | | Income Statement Items | | | | Non-operating Income | 394.10% | Increase in government subsidies and compensation received during the period | | Income Tax Expense | -82.41% | Decrease in total profit during the period | | Cash Flow Statement Items | | | | Net Cash Flow from Operating Activities | 591.52% | Decrease in other related operating expenses paid | | Net Cash Flow from Financing Activities | -212.15% | Decrease in borrowings obtained during the period | II. Shareholder Information As of the reporting period end, the company had 50,121 common shareholders, with a relatively concentrated equity structure where controlling shareholder Wang Tianxiang held 24.00% - As of the end of the reporting period, the company had 50,121 common shareholders14 Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | 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 | 1.75% | 20,862,213 | | Beijing Guoxing Property Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.16% | 13,760,000 | | Sun Guanghui | Domestic Natural Person | 0.94% | 11,155,918 | | Huang Tao | Domestic Natural Person | 0.93% | 11,123,442 | | GRACEPEAK PTE LTD. | Overseas Legal Person | 0.87% | 10,346,937 | | Wang Yong | Domestic Natural Person | 0.50% | 5,943,635 | | Chen Zhiying | Domestic Natural Person | 0.47% | 5,550,000 | | Chen Zhizhan | Domestic Natural Person | 0.47% | 5,539,909 | - During the reporting period, the total number of restricted shares changed minimally from 246,583,172 shares at the beginning of the period to 246,483,942 shares at the end, primarily due to executive lock-up1617 III. Other Significant Matters The company's net profit declined 39.44% due to pandemic-affected sales, increased expenses, and lower associate income, while a US subsidiary's share repurchase agreement default poses a significant litigation risk - The company's net profit attributable to shareholders decreased by 39.44% year-over-year, primarily due to: - Sales business impacted by the pandemic, leading to a 14.88% year-over-year decrease in operating revenue - Management expenses and R&D expenses increasing by 13.80 million CNY and 3.28 million CNY, respectively - Underperformance of associates compared to the prior period, resulting in a 4.81 million CNY decrease in investment income18 - The company's subsidiary, Fuan Tianheng (USA) LLC, experienced a default on a Share Repurchase Agreement with a related party, as the repurchasing party failed to fully pay the first installment. The company has engaged lawyers to prepare for litigation, but as of April 25, 2022, the case has not yet been filed due to its cross-border nature1920 IV. Quarterly Financial Statements This section provides the unaudited consolidated financial statements for Q1 2022, including the balance sheet, income statement, and cash flow statement, reflecting the company's financial position and performance 1. Consolidated Balance Sheet As of March 31, 2022, total assets were 5.59 billion CNY (down 2.04%), total liabilities 1.69 billion CNY (down 8.27%), and equity attributable to owners of the parent 3.77 billion CNY (up 0.97%) Key Items from Consolidated Balance Sheet | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | Change from Year-Beginning | | :--- | :--- | :--- | :--- | | Total Assets | 5.59 billion | 5.71 billion | -2.04% | | Total Liabilities | 1.69 billion | 1.84 billion | -8.27% | | Total Equity Attributable to Owners of Parent Company | 3.77 billion | 3.73 billion | 0.97% | | Total Equity | 3.90 billion | 3.87 billion | 0.93% | 2. Consolidated Income Statement In Q1 2022, total operating revenue was 552.69 million CNY (down 14.88%), total operating costs 530.17 million CNY (down 12.13%), and net profit attributable to owners of the parent 37.26 million CNY (down 39.44%) Key Items from Consolidated Income Statement | Item | Current Period (CNY) | Prior Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 552.69 million | 649.32 million | -14.88% | | Total Operating Costs | 530.17 million | 603.40 million | -12.13% | | Operating Profit | 39.43 million | 68.69 million | -42.60% | | Total Profit | 38.84 million | 68.08 million | -42.95% | | Net Profit | 37.37 million | 59.73 million | -37.43% | | Net Profit Attributable to Owners of Parent Company | 37.26 million | 61.53 million | -39.44% | 3. Consolidated Cash Flow Statement Net cash flow from operating activities significantly improved to 58.29 million CNY (up 591.52%), while investing and financing activities resulted in net outflows, leading to a period-end cash balance of 770.31 million CNY Key Items from Consolidated Cash Flow Statement | Item | Current Period (CNY) | Prior Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 58.29 million | -11.86 million | 591.52% | | Net Cash Flow from Investing Activities | -85.21 million | -114.52 million | Not Applicable | | Net Cash Flow from Financing Activities | -125.95 million | 112.30 million | -212.15% | | Net Increase in Cash and Cash Equivalents | -153.01 million | -14.54 million | Not Applicable | | Cash and Cash Equivalents at Period-End | 770.31 million | 791.65 million | -2.70% |