仟源医药(300254) - 2019 Q1 - 季度财报

Important Notice The board, supervisors, and management affirm the quarterly report's accuracy and completeness, with a note on an independent director's proxy attendance - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content and assume legal responsibility[3] - The company's principal officer, the person in charge of accounting work, and the head of the accounting department declare that the financial statements are true, accurate, and complete[4] - Independent Director Wang Jun did not personally attend the board meeting due to personal reasons and has authorized Huang Juan to attend on his behalf[5] Company Basic Information Key Accounting Data and Financial Indicators Net profit attributable to shareholders and basic EPS surged over 170% in Q1 2019, driven by significant government subsidies despite a 6.32% decline in total operating revenue 2019 Q1 Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Year Same Period (CNY) | Period-over-Prior Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 253,398,317.43 | 270,500,994.29 | -6.32% | | Net Profit Attributable to Shareholders of Listed Company | 19,863,649.43 | 7,317,083.24 | 171.47% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 1,461,476.66 | 5,048,557.63 | -71.05% | | Net Cash Flow from Operating Activities | 10,220,918.95 | 5,372,758.75 | 90.24% | | Basic Earnings Per Share (CNY/share) | 0.0954 | 0.0351 | 171.79% | | Diluted Earnings Per Share (CNY/share) | 0.0954 | 0.0351 | 171.79% | | Weighted Average Return on Net Assets | 2.46% | 0.89% | 1.57% | | Key Asset and Liability Indicators as of 2019 Q1 End | | | | | Total Assets | 1,455,251,349.40 | 1,495,710,196.93 | -2.70% | | Net Assets Attributable to Shareholders of Listed Company | 818,955,534.57 | 799,091,885.14 | 2.49% | 2019 Q1 Non-Recurring Gains and Losses Items and Amounts | Item | Amount from Year-Beginning to Period End (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets (including write-off of impairment provisions) | -746,792.44 | | | Government Subsidies Included in Current Profit/Loss (excluding those closely related to business and enjoyed at fixed/quantitative standards) | 21,637,287.32 | | | Other Non-Operating Income and Expenses Apart from the Above | -1,414.50 | | | Less: Income Tax Impact | 2,636,485.83 | | | Minority Interest Impact (after tax) | -149,578.22 | | | Total | 18,402,172.77 | -- | Total Shareholders and Top Ten Shareholders' Holdings at Period End As of the period end, the company had 13,284 common shareholders; the top three, acting in concert, held 26.86% and were actual controllers, with most shares pledged Total Common Shareholders at Period End | Indicator | Quantity | | :--- | :--- | | Total Common Shareholders | 13,284 | | Total Preferred Shareholders with Restored Voting Rights (if any) | 0 | Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Share Status | Number Pledged or Frozen (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Weng Zhanguo | Domestic Natural Person | 11.91% | 24,808,209 | 18,606,157 | Pledged | 21,607,839 | | Zhao Qun | Domestic Natural Person | 8.54% | 17,791,692 | 13,343,769 | Pledged | 14,233,268 | | Zhang Zhenbiao | Domestic Natural Person | 6.41% | 13,343,768 | 10,007,826 | Pledged | 13,002,634 | | Jiang Changlong | Domestic Natural Person | 4.79% | 9,984,000 | 0 | - | - | | Tianjin Hongtai Investment Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.63% | 5,487,635 | 0 | - | - | | Zhang Tonghui | Domestic Natural Person | 2.02% | 4,213,464 | 0 | - | - | | Cui Jinying | Domestic Natural Person | 1.85% | 3,858,240 | 0 | - | - | | Xuan Hang | Domestic Natural Person | 1.68% | 3,503,716 | 0 | - | - | | Duan Suxin | Domestic Natural Person | 1.49% | 3,112,700 | 0 | - | - | | Zhang Wei | Domestic Natural Person | 1.42% | 2,949,276 | 0 | - | - | - Weng Zhanguo, Zhao Qun, and Zhang Zhenbiao are parties acting in concert, collectively holding 26.86% of the company's shares and serving as its joint actual controllers; Tianjin Hongtai is a partnership controlled by Weng Zhanguo[11] Changes in Restricted Shares at Period End | Shareholder Name | Restricted Shares at Period Beginning (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Weng Zhanguo | 18,606,157 | 0 | 0 | 18,606,157 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Zhao Qun | 13,343,769 | 0 | 0 | 13,343,769 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Zhang Zhenbiao | 10,007,826 | 0 | 0 | 10,007,826 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Zhong Hairong | 1,691,394 | 0 | 0 | 1,691,394 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Yu Junxian | 1,036,800 | 0 | 0 | 1,036,800 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Zuo Xuemin | 959,850 | 0 | 0 | 959,850 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Zhang Zhenyu | 712,800 | 178,200 | 0 | 534,600 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Pan Wei | 60,750 | 0 | 0 | 60,750 | Executive Lock-up | Only 25% of shares held by executives can be unlocked annually during their tenure | | Total | 46,419,346 | 178,200 | 0 | 46,241,146 | -- | -- | Significant Events This section details significant changes in financial data, business operations, and risk factors, along with the status of commitments and compliance matters Significant Changes in Key Financial Data and Indicators and Their Reasons During the Reporting Period Significant changes in financial data across balance sheet, income statement, and cash flow statement were driven by increased financial product purchases, higher borrowing costs, increased bad debt provisions, and substantial government subsidies (I) Balance Sheet Items Other current assets increased by 78.27% due to wealth management product purchases, while taxes payable decreased by 44.23% due to reduced VAT - Other current assets balance at period end was CNY 40.20 million, an increase of 78.27% from the beginning of the year, primarily due to the purchase of wealth management products during the reporting period[15] - Taxes payable balance at period end was CNY 24.61 million, a decrease of 44.23% from the beginning of the year, primarily due to a reduction in VAT payable[15] (II) Income Statement Items Income statement items saw significant changes, including a 66.53% rise in financial expenses, a 489.97% surge in asset impairment losses, and substantial increases in other income and non-operating income due to government subsidies - Taxes and surcharges during the reporting period were CNY 3.28 million, a decrease of 33.69% from the same period last year, primarily due to reduced urban construction tax, education surcharges, and local education surcharges[15] - Financial expenses during the reporting period were CNY 3.75 million, an increase of 66.53% from the same period last year, primarily due to increased bank borrowings[15] - Asset impairment losses during the reporting period were CNY 4.99 million, an increase of 489.97% from the same period last year, primarily due to increased provision for bad debts[15] - Other income during the reporting period was CNY 2.39 million, an increase of 1,091.68% from the same period last year, primarily due to increased government subsidies received[15] - Investment income during the reporting period was CNY 0.42 million, an increase of 240.89% from the same period last year, primarily due to increased investment income from associates[15] - Non-operating income during the reporting period was CNY 19.25 million, an increase of 140.43% from the same period last year, primarily due to increased government subsidies received[15] (III) Cash Flow Statement Items Operating cash flow significantly increased by 90.24% due to government subsidies, while net cash outflow from investing activities rose by 113.91% due to increased wealth management product purchases - Net cash inflow from operating activities during the reporting period was CNY 10.22 million, an increase of 90.24% from the same period last year, primarily due to increased government subsidies received[16] - Net cash outflow from investing activities during the reporting period was CNY 29.67 million, a decrease (i.e., increased outflow) of 113.91% from the same period last year, primarily due to increased cash payments for investments (purchase of wealth management products)[16] Business Review and Outlook Despite a 6.32% revenue decline due to lower health product sales, net profit attributable to shareholders surged 171.47% from government subsidies, while the company actively manages various operational and industry risks Specific Factors Driving Changes in Business Revenue During the Reporting Period Total operating revenue decreased by 6.32% to CNY 253.40 million due to declining health product sales, but net profit attributable to shareholders grew 171.47% to CNY 19.86 million due to a CNY 18 million government subsidy - During the reporting period, the company achieved operating revenue of CNY 253.40 million, a decrease of 6.32% from the same period last year, primarily due to a decline in the health product business[17] - The company's net profit attributable to shareholders was CNY 19.86 million, an increase of 171.47% from the same period last year, primarily due to its wholly-owned subsidiary, Tibet Qianyuan Pharmaceutical Co., Ltd., receiving an CNY 18 million industrial development support fund[17] Execution of Annual Operating Plan During the Reporting Period The company progressed according to its 2019 operating plan, focusing on key product sales, market strategy adjustments, and cost control to address healthcare reform challenges - The company proceeded with various tasks in an orderly manner according to the operating plan formulated at the beginning of 2019, with no significant changes[18] - Facing national healthcare system reforms, the company strengthened sales of key products, adjusted market strategies, improved operational management efficiency and market competitiveness, and effectively controlled operating costs[18] Significant Risk Factors Adversely Affecting the Company's Future Operations, Major Difficulties in Company Operations, and Countermeasures The company faces six major risks, including policy changes, R&D, drug price reductions, rising costs, goodwill impairment, and accounts receivable bad debts, addressed by strategic and operational countermeasures - Industry Policy Risk: Deepening national healthcare system reforms and various pharmaceutical reform policies (e.g., "two-invoice system," medical insurance payments, centralized procurement) will profoundly impact the pharmaceutical industry; the company must constantly monitor and actively respond, promoting an outward-looking development strategy[18] - New Drug and Generic Drug Consistency Evaluation R&D Risk: Pharmaceutical R&D involves high investment, long cycles, and high risks, with increasingly stringent regulatory requirements, posing risks of R&D failure or prolonged cycles; the company will improve R&D capabilities, carefully select projects, and concentrate efforts on key projects[19] - Drug Price Reduction Risk: Medical insurance cost control and volume-based procurement policies lead to a decline in the average profit margin of the pharmaceutical industry, and the company's products face price reduction pressure; the company will strengthen capital, budget, and cost control management, and reduce costs through group procurement[19] - Raw Material Cost Increase Risk: National requirements for drug production standards and environmental protection standards are increasing, which may lead to a reduction in raw material manufacturers and price increases; the company will fully implement lean production to improve efficiency and reduce production costs[19] - Goodwill Impairment Risk: The company has increased subsidiaries through mergers and acquisitions, and if future operating performance does not meet expectations, it still faces goodwill impairment risk; the company has taken measures such as increasing marketing investment and strengthening group integration[20] - Accounts Receivable Bad Debt Risk: Expanding sales scale leads to continuous growth in accounts receivable, and if management is inadequate, it may lead to extended collection periods, reduced turnover, and bad debt losses; the company will strengthen accounts receivable management, improve internal control systems, and intensify collection efforts[20] Analysis and Explanation of Progress, Impact, and Solutions for Significant Events There were no significant event developments requiring explanation during the reporting period - The company had no analysis or explanation of the progress, impact, and solutions for significant events during the reporting period[21] Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period Actual controllers, directors, and senior management consistently fulfilled or are fulfilling commitments regarding share lock-ups, non-competition, fund occupation, and housing provident fund contributions Unfulfilled Commitments During the Reporting Period | Commitment Source | Promising Party | Commitment Type | Summary of Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments Made During Initial Public Offering or Refinancing | Weng Zhanguo, Zhao Qun, Zhang Zhenbiao | Share Lock-up Commitment | Not to transfer shares within 36 months after listing, not to transfer more than 25% annually during tenure, not to transfer within six months after resignation | August 19, 2011 | From commitment date until fulfillment | As of the end of the reporting period, the promising parties strictly adhered to their commitments, with no violations | | Commitments Made During Initial Public Offering or Refinancing | Zhang Zhenyu | Share Lock-up Commitment | Not to transfer shares within 36 months after listing, not to transfer more than 25% annually during related party tenure, not to transfer within six months after resignation | August 19, 2011 | From commitment date until fulfillment. Zhang Zhenyu is currently fulfilling | As of the end of the reporting period, the promising party strictly adhered to the commitment, with no violations | | Commitments Made During Initial Public Offering or Refinancing | Zuo Xuemin (resigned), Yu Junxian, Pan Wei | Share Lock-up Commitment | Not to transfer shares within 36 months after listing, not to transfer more than 25% annually during tenure, not to transfer within six months after resignation | August 19, 2011 | From commitment date until fulfillment | As of the end of the reporting period, the promising parties strictly adhered to their commitments, with no violations | | Commitments Regarding Non-Competition, Related Party Transactions, and Fund Occupation | Weng Zhanguo, Zhao Qun, Zhang Zhenbiao | Non-Competition and Conflict of Interest Commitment Letter | Not to invest in or control enterprises that directly or indirectly compete with Qianyuan Pharmaceutical, and not to engage in competitive businesses | August 19, 2011 | From commitment date until fulfillment | As of the end of the reporting period, the promising parties strictly adhered to their commitments, with no violations | | Commitments Regarding Non-Competition, Related Party Transactions, and Fund Occupation | Weng Zhanguo, Zhao Qun, Zhang Zhenbiao | Commitment Letter to Regulate Related Party Transactions and Not Occupy Company Funds | Not to use the position of actual controller to directly or indirectly occupy company funds | August 19, 2011 | From commitment date until fulfillment | As of the end of the reporting period, the promising parties strictly adhered to their commitments, with no violations | | Other Commitments | Weng Zhanguo, Zhao Qun, Zhang Zhenbiao | Housing Provident Fund Supplementary Payment Commitment | To bear the supplementary payment obligations and penalty losses arising from not paying housing provident fund for some employees in previous years | August 19, 2011 | Long-term effective | As of the end of the reporting period, the promising parties strictly adhered to their commitments, with no violations | | Commitments Made During Initial Public Offering or Refinancing | Weng Zhanguo, Zhao Qun, Zhang Zhenbiao, Zhong Hairong | Share Lock-up Commitment | Non-publicly issued shares subscribed shall not be transferred within 36 months from the date of issuance completion | September 01, 2015 | September 3, 2018 | Fulfilled | | Commitments Made During Initial Public Offering or Refinancing | Tianjin Hongtai Investment Management Partnership (Limited Partnership) | Share Lock-up Commitment | Non-publicly issued shares subscribed shall not be transferred within 36 months from the date of issuance completion | September 01, 2015 | September 3, 2018 | Fulfilled | Comparison Table of Funds Raised Usage There was no disclosure required regarding the use of raised funds during the reporting period - The company had no comparison table of funds raised usage during the reporting period[26] Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change Compared to the Same Period Last Year from Year-Beginning to End of Next Reporting Period The company did not forecast a cumulative net profit loss or significant change from the year-beginning to the end of the next reporting period - The company did not have a situation during the reporting period where the cumulative net profit from the beginning of the year to the end of the next reporting period was expected to be a loss or undergo significant change compared to the same period last year[26] Irregular External Guarantees There were no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[26] Non-Operating Funds Occupied by Controlling Shareholders and Their Related Parties from the Listed Company There were no non-operating funds occupied by controlling shareholders or their related parties from the listed company during the reporting period - The company had no non-operating funds occupied by controlling shareholders or their related parties from the listed company during the reporting period[27] Financial Statements This section presents the consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, along with adjustment explanations and audit status 1. Consolidated Balance Sheet As of March 31, 2019, consolidated total assets slightly decreased by 2.70% to CNY 1.455 billion, with current liabilities declining by 11.95% and total owner's equity increasing by 1.37% Consolidated Balance Sheet Key Data | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | Change Percentage | | :--- | :--- | :--- | :--- | | Total Assets | 1,455,251,349.40 | 1,495,710,196.93 | -2.70% | | Total Current Assets | 602,485,602.01 | 634,862,447.61 | -5.09% | | Total Non-Current Assets | 852,765,747.39 | 860,847,749.32 | -0.94% | | Total Liabilities | 511,215,954.97 | 564,470,458.53 | -9.43% | | Total Current Liabilities | 350,924,058.34 | 398,551,613.73 | -11.95% | | Total Non-Current Liabilities | 160,291,896.63 | 165,918,844.80 | -3.40% | | Total Owner's Equity | 944,035,394.43 | 931,239,738.40 | 1.37% | | Total Owner's Equity Attributable to Parent Company | 818,955,534.57 | 799,091,885.14 | 2.49% | 2. Parent Company Balance Sheet As of March 31, 2019, parent company total assets increased by 1.47% to CNY 1.121 billion, with current assets growing 10.62% and total owner's equity rising 1.86% Parent Company Balance Sheet Key Data | Item | March 31, 2019 (CNY) | December 31, 2018 (CNY) | Change Percentage | | :--- | :--- | :--- | :--- | | Total Assets | 1,121,385,857.72 | 1,105,169,657.83 | 1.47% | | Total Current Assets | 202,553,167.81 | 183,107,246.51 | 10.62% | | Total Non-Current Assets | 918,832,689.91 | 922,062,411.32 | -0.35% | | Total Liabilities | 357,015,035.05 | 354,732,368.19 | 0.64% | | Total Current Liabilities | 269,023,488.59 | 261,740,821.73 | 2.78% | | Total Non-Current Liabilities | 87,991,546.46 | 92,991,546.46 | -5.48% | | Total Owner's Equity | 764,370,822.67 | 750,437,289.64 | 1.86% | 3. Consolidated Income Statement In Q1 2019, consolidated total operating revenue decreased by 6.32%, but net profit attributable to parent company owners surged 171.47% to CNY 19.86 million, primarily due to significant non-operating income from government subsidies Consolidated Income Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 253,398,317.43 | 270,500,994.29 | -6.32% | | Total Operating Costs | 251,163,724.03 | 265,321,959.06 | -5.34% | | Operating Profit | 4,963,040.12 | 5,079,348.77 | -2.30% | | Total Profit | 23,546,355.85 | 12,487,730.00 | 88.56% | | Net Profit | 20,795,656.03 | 9,470,701.77 | 119.58% | | Net Profit Attributable to Parent Company Owners | 19,863,649.43 | 7,317,083.24 | 171.47% | | Basic Earnings Per Share (CNY/share) | 0.0954 | 0.0351 | 171.79% | 4. Parent Company Income Statement In Q1 2019, parent company operating revenue decreased by 22.11%, yet net profit significantly increased by 384.35% to CNY 13.93 million, driven by higher investment and other income Parent Company Income Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 54,390,095.09 | 69,831,879.11 | -22.11% | | Operating Profit | 12,781,670.54 | 3,421,863.40 | 273.55% | | Total Profit | 13,781,670.54 | 2,914,889.74 | 372.82% | | Net Profit | 13,933,533.03 | 2,876,768.52 | 384.35% | | Basic Earnings Per Share (CNY/share) | 0.0669 | 0.0138 | 384.78% | 5. Consolidated Cash Flow Statement In Q1 2019, net cash flow from operating activities increased by 90.24% to CNY 10.22 million, while net cash outflow from investing activities rose 113.91% to CNY 29.67 million due to increased wealth management product purchases Consolidated Cash Flow Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 10,220,918.95 | 5,372,758.75 | 90.24% | | Net Cash Flow from Investing Activities | -29,674,301.21 | -13,872,603.39 | -113.91% | | Net Cash Flow from Financing Activities | -21,815,661.11 | -24,432,976.04 | 10.71% | | Net Increase in Cash and Cash Equivalents | -41,269,043.37 | -32,932,820.68 | -25.31% | | Cash and Cash Equivalents at Period End | 106,326,305.13 | 115,674,178.66 | -8.17% | 6. Parent Company Cash Flow Statement In Q1 2019, parent company net operating cash flow increased by 98.12% to CNY 9.98 million, while net investing cash outflow surged 549.50% to CNY 19.88 million, and financing cash flow turned positive to CNY 8.31 million Parent Company Cash Flow Statement Key Data | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 9,977,973.92 | 5,036,221.69 | 98.12% | | Net Cash Flow from Investing Activities | -19,881,927.20 | -3,061,130.66 | -549.50% | | Net Cash Flow from Financing Activities | 8,313,087.07 | -31,023,193.89 | Turned from negative to positive | | Net Increase in Cash and Cash Equivalents | -1,590,866.21 | -29,048,102.86 | 94.53% | | Cash and Cash Equivalents at Period End | 16,842,524.07 | 4,753,192.37 | 254.34% | Explanation of Financial Statement Adjustments The company did not retrospectively adjust or restate prior-year accounting data, nor did it adjust initial financial statements or comparative data due to new accounting standards adoption - The company did not retrospectively adjust or restate prior-year accounting data[7] - The company did not adjust the initial financial statements for the first year of implementation of new financial instrument standards, new revenue standards, or new lease standards[56] - The company did not retrospectively adjust prior comparative data due to the first-time implementation of new financial instrument standards or new lease standards[56] III. Audit Report This quarterly report is unaudited - The company's first quarterly report is unaudited[56]