金城医药(300233) - 2022 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's table of contents, and key definitions Company Profile and Key Financial Indicators This section introduces the company's background and presents its key financial performance metrics Company Profile Shandong Jincheng Pharmaceutical Group Co., Ltd. (stock abbreviation: Jincheng Pharmaceutical, stock code: 300233) is a company listed on the Shenzhen Stock Exchange, with Zhao Yeqing as its legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Jincheng Pharmaceutical | | Stock Code | 300233 | | Listing Exchange | Shenzhen Stock Exchange | | Company Full Name | Shandong Jincheng Pharmaceutical Group Co., Ltd. | | Legal Representative | Zhao Yeqing | Key Accounting Data and Financial Indicators In the first half of 2022, the company achieved operating revenue of CNY 1.852 billion, a 42.98% year-on-year increase; net profit attributable to shareholders reached CNY 219 million, up 135.44% Key Financial Indicators | Key Financial Indicator | Current Period (H1 2022) (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,851,785,050.63 | 1,295,172,553.06 | 42.98% | | Net Profit Attributable to Shareholders | 218,970,919.44 | 93,005,351.63 | 135.44% | | Non-recurring Net Profit Attributable to Shareholders | 218,762,725.63 | 74,254,182.51 | 194.61% | | Net Cash Flow from Operating Activities | -15,652,575.32 | 67,896,552.33 | -123.05% | | Basic Earnings Per Share | 0.57 | 0.24 | 137.50% | | Weighted Average Return on Net Assets | 6.27% | 2.68% | Increased by 3.59 percentage points | | Total Assets | 5,622,513,848.42 | - | Increased by 6.58% from end of prior year | | Net Assets Attributable to Shareholders | 3,552,551,615.30 | - | Increased by 4.66% from end of prior year | - Total non-recurring gains and losses for the reporting period amounted to CNY 0.2082 million, primarily including government grants of CNY 9.03 million and net non-operating expenses of -CNY 5.727 million[31][34] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, investment activities, and risk management strategies Overview of Main Business and Operations The company's main business covers R&D, production, and sales of pharmaceutical intermediates, APIs, and preparations, forming a full industry chain from cephalosporin intermediates and specialty APIs to finished formulations - The company has established a full industry chain covering cephalosporin pharmaceutical intermediates, specialty APIs, and finished formulations, achieving synergistic development across intermediates, APIs, and preparations[38] Business Segment Revenue (H1 2022) | Business Segment | H1 2022 Revenue (Billion CNY) | YoY Growth Rate | | :--- | :--- | :--- | | Intermediate Business | 9.18 | 55.31% | | Biopharmaceuticals and Specialty APIs | 2.73 | 19.81% | | Formulation Business | 4.36 | -8.35% | | CMO/CDMO Business | 2.24 | - | - The company's key project constructions are progressing smoothly, including the activation of Guangdong Jincheng Jinsu Zhongshan new plant, the 300-ton/year 4AA project, and the Adenosylmethionine expansion project entering trial production, and Jincheng Medical Chemical Nicotine project obtaining a tobacco monopoly production enterprise license[57] - The company has made progress in centralized drug procurement, with Clindamycin Phosphate Injection selected for the seventh batch of national centralized procurement and Nifuratel Nystatin Vaginal Soft Capsules winning the bid in Guangdong Alliance centralized procurement[76][79] Analysis of Core Competencies The company's core competencies primarily stem from its technological, talent, and brand advantages, supported by multiple R&D platforms and a focus on talent development - The company possesses 3 national-level and 6 provincial-level scientific research platforms, including a national enterprise technology center, accumulating various distinctive advantageous technologies such such as high-pressure, catalytic hydrogenation, enzyme catalysis, and bio-fermentation[80] - Through continuous exploration of bio-fermentation and chemical synthesis technologies, the company has formed a complete synthetic biology platform from upstream R&D and pilot-scale amplification to industrialization[80][82] - The company emphasizes talent team building and has received multiple honors, including being recognized as a "Top 100 Chinese Pharmaceutical Industrial Enterprise," demonstrating significant brand advantages[83][84] Financial Analysis of Main Business During the reporting period, the company's main business experienced significant growth, with operating revenue increasing by 42.98% year-on-year, primarily driven by new CMO business and increased sales of API and intermediate products Key Financial Items (Current Period) | Financial Item | Current Period (CNY) | YoY Change | Primary Reason for Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,851,785,050.63 | 42.98% | New CMO business and increased sales of APIs and intermediates | | Operating Cost | 1,026,925,889.15 | 77.36% | Increased sales volume and rising raw material prices | | Selling Expenses | 258,020,352.33 | -28.16% | - | | Financial Expenses | 3,044,536.53 | -64.58% | RMB depreciation, increased exchange gains | | Net Cash Flow from Operating Activities | -15,652,575.32 | -123.05% | Increased collection of bank acceptance bills and higher material procurement expenses | | Net Cash Flow from Investing Activities | -269,347,244.59 | -378.38% | Decrease in bank time deposit business and increase in engineering project investment expenditures | | Net Cash Flow from Financing Activities | 143,231,378.09 | 345.99% | Increase in bank borrowings and receipt of equity incentive funds | Revenue and Cost by Major Product/Service | Major Product/Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Cephalosporin Side Chain Active Ester Series | 444,629,966.98 | 302,937,502.94 | 31.87% | 58.76% | | Biopharmaceuticals and Specialty APIs | 272,733,766.90 | 119,093,829.32 | 56.33% | 19.81% | | Formulation Products | 436,391,275.33 | 104,734,506.18 | 76.00% | -8.35% | | Other Pharmaceutical Chemical Products | 473,851,583.19 | 362,041,706.98 | 23.60% | 52.21% | | Contract Research and Manufacturing Services | 224,178,458.23 | 138,118,343.73 | 38.39% | - | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets were CNY 5.623 billion, a 6.58% increase from the beginning of the year, with a stable asset structure and CNY 726 million in restricted assets - As of the end of the reporting period, the company's total assets were CNY 5.623 billion, with fixed assets, monetary funds, and accounts receivable accounting for a higher proportion at 34.21%, 14.64%, and 11.70%, respectively[92] Restricted Assets | Item | Book Value at Period End (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 81,535,564.83 | Deposit | | Notes Receivable | 23,413,867.53 | Bill Pledge | | Fixed Assets | 180,808,590.27 | Loan Collateral | | Intangible Assets | 114,055,680.91 | Loan Collateral | | Construction in Progress | 130,155,540.75 | Loan Collateral | | Long-term Equity Investment of Parent Company | 195,600,000.00 | Loan Collateral | | Total | 725,569,244.29 | - | Analysis of Investment Status During the reporting period, the company's investment amounted to CNY 88.12 million, a 264.74% year-on-year increase, alongside foreign exchange derivative investments and the utilization of raised funds for API projects - During the reporting period, the company engaged in forward foreign exchange transactions, primarily forward settlements and foreign exchange options, to hedge against exchange rate risks, with an investment amount of CNY 172 million at period-end and an actual gain of CNY 1.311 million during the period[119] - The company issued shares to acquire assets and raised supporting funds totaling CNY 289 million, with a cumulative investment of CNY 275 million as of the end of the reporting period, primarily for Beijing Jincheng Taier Cangzhou Branch API project, repayment of bank loans, and supplementing working capital[107][111] Risks and Countermeasures The company faces key risks including industry policy and market changes, drug R&D uncertainties, product quality and environmental safety, raw material supply and price fluctuations, significant accounts receivable, exchange rate fluctuations, and new business underperformance - The company's primary risks include: - Industry Policy and Market Risks: Policies such as medical insurance cost control and volume-based procurement exert pressure on drug price reductions - Drug R&D Risks: High R&D investment, long cycles, and uncertain outcomes - Product Quality and Environmental Safety Risks: Potential quality, safety, and environmental risks in production processes - Raw Material Supply and Price Fluctuation Risks: Volatility in bulk commodity prices impacts costs - Significant Accounts Receivable Risk: Risk of customers failing to collect receivables - Export Tax Rebate Rate and Exchange Rate Fluctuation Risks: Macroeconomic and policy changes affecting export business - New Product and New Business Underperformance Risks: Uncertainty in CMO/CDMO business orders[135][136][140][141][142][145] Corporate Governance This section details the company's corporate governance structure, including equity incentive plans and changes in board and management Equity Incentive and Corporate Governance Changes During the reporting period, the company held three shareholder meetings, implemented a restricted stock incentive plan, and experienced changes in its board and senior management - During the reporting period, the company implemented the 2022 Restricted Stock Incentive Plan and completed the grant registration on April 15, 2022[152][155] - Changes occurred in the company's senior management, with non-independent director Liu Xingang resigning, Vice President Yang Xiuli dismissed, and Cui Xili elected as a non-independent director[150] Environmental and Social Responsibility This section outlines the company's commitments and actions regarding environmental protection and its broader social responsibilities Environmental Protection The company and its subsidiaries are designated as key pollutant discharge units, operating comprehensive treatment facilities to ensure compliance and actively reduce carbon emissions - The company and its subsidiaries, including Shandong Jincheng Pharmaceutical Chemical, Shandong Jincheng Bio-Pharmaceutical, and Shandong Jincheng Kerry Chemical, are all listed as key pollutant discharge units by environmental protection authorities[159] - Each subsidiary has constructed comprehensive pollution control facilities, including MVR high-efficiency low-temperature continuous evaporation systems and RTO regenerative incineration units, for treating wastewater, exhaust gas, and solid waste to ensure compliance with discharge standards[180][183][187] - The company reduces carbon dioxide emissions by adopting photovoltaic power generation, heat pump technology, optimizing production processes, and implementing automation, thereby improving resource utilization and lowering energy consumption[245][247] Social Responsibility The company upholds legal compliance, protects shareholder and employee rights, and actively engages in various social welfare initiatives - The company protects shareholder rights through compliant information disclosure and accessible investor communication channels[249] - The company actively participates in social welfare, including environmental protection, poverty alleviation, charitable donations, and local epidemic prevention and control efforts[252] Significant Matters This section details the company's significant legal proceedings, guarantees, and other material developments during the reporting period Litigation, Guarantees, and Other Significant Matters During the reporting period, the company had no significant lawsuits or illegal guarantees, but provided substantial guarantees for subsidiaries, and achieved key product approvals - During the reporting period, the company had no significant litigation or arbitration matters, but there were several sales contract disputes involving small amounts[260][262] - The company provided substantial guarantees for its subsidiaries, with the total actual guarantee balance for subsidiaries amounting to CNY 553 million at the end of the reporting period[284] - Significant progress includes: wholly-owned subsidiary Jincheng Medical Chemical obtaining a tobacco monopoly production enterprise license for e-cigarette nicotine; multiple products such as Clindamycin Phosphate Injection and Cefadroxil Capsules passing consistency evaluations; and Posaconazole API passing CDE approval[296][299] Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Share Changes During the reporting period, the company's total share capital remained unchanged, but restricted shares increased due to an equity incentive plan and executive departure - Share changes primarily resulted from the grant of 3,536,400 restricted shares to 68 incentive recipients and the lock-up of shares held by former senior executive Yang Xiuli upon his departure[307] Shareholder Information As of the end of the reporting period, the company had 28,350 common shareholders, with its controlling shareholder holding 20.28% of shares, of which 28.40% are pledged Top Shareholders and Shareholding Status | Shareholder Name | Shareholding Nature | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares Held | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Zibo Jincheng Industrial Investment Co., Ltd. | Domestic Non-State-owned Legal Person | 20.28% | 78,552,154 | 0 | Pledged 22,309,799 | | GF Stable Growth Securities Investment Fund | Other | 3.67% | 14,200,000 | 0 | - | | National Council for Social Security Fund 115 Portfolio | Other | 3.59% | 13,900,000 | 0 | - | | Peng Guohua | Domestic Natural Person | 2.87% | 11,120,000 | 0 | - | | Zhao Hongfu | Domestic Natural Person | 2.50% | 9,676,000 | 7,257,000 | - | Preferred Shares Information This section confirms that the company has no preferred shares during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[331] Bonds Information This section confirms that the company had no bond-related activities during the reporting period Bonds Information During the reporting period, the company had no bond-related activities - The company had no bond-related activities during the reporting period[335] Financial Report This section presents the company's comprehensive financial statements, including balance sheet, income statement, and cash flow statement Financial Statement Summary Financial statements indicate that the company achieved steady growth in both total assets and net assets in the first half of 2022, with strong profitability despite negative operating cash flow 2022 Semi-Annual Key Financial Data (Consolidated Statements) | Indicator | Period-End Balance / Current Period Amount (CNY) | | :--- | :--- | | Income Statement: | | | Total Operating Revenue | 1,851,785,050.63 | | Operating Profit | 284,002,153.02 | | Net Profit | 224,207,085.73 | | Balance Sheet (Period-End): | | | Total Assets | 5,622,513,848.42 | | Total Liabilities | 2,025,747,197.02 | | Total Owners' Equity | 3,596,766,651.40 | | Cash Flow Statement: | | | Net Cash Flow from Operating Activities | -15,652,575.32 | | Net Cash Flow from Investing Activities | -269,347,244.59 | | Net Cash Flow from Financing Activities | 143,231,378.09 | | Net Increase in Cash and Cash Equivalents | -142,215,407.21 |