Shenqi(600613)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥839,327,318.01, a decrease of 7.87% compared to ¥911,009,600.51 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥28,530,267.49, down 50.08% from ¥57,149,229.91 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥30,688,798.42, a decrease of 45.43% compared to ¥56,235,803.84 in the same period last year[19]. - The net cash flow from operating activities was ¥39,280,109.64, down 41.53% from ¥67,183,416.47 in the previous year[19]. - The company's basic and diluted earnings per share decreased by 45.45% to CNY 0.06 compared to the same period last year[20]. - The net profit attributable to shareholders decreased by 50.08%, amounting to a reduction of CNY 28.62 million, primarily due to decreased sales in the pharmaceutical manufacturing sector[21]. - The operating cash flow net amount decreased by 41.53%, resulting in a decline of CNY 27.90 million, attributed to reduced sales revenue in the pharmaceutical manufacturing sector[21]. - The weighted average return on net assets decreased by 1.15 percentage points to 1.08% compared to the same period last year, mainly due to the decline in sales revenue[21]. - The company experienced a 7.87% decrease in total operating revenue, amounting to a reduction of CNY 71.68 million, with a significant impact from COVID-19 on sales of cold and cough medications[20]. - The sales of cough medications dropped by 67.79%, resulting in a decrease of CNY 54.59 million due to restrictions on sales in hospitals[20]. Assets and Liabilities - The net assets attributable to shareholders at the end of the reporting period were ¥2,644,724,228.63, an increase of 1.06% from ¥2,616,935,698.11 at the end of the previous year[19]. - Total assets at the end of the reporting period were ¥3,493,802,463.57, a decrease of 1.75% from ¥3,556,129,011.94 at the end of the previous year[19]. - The company's cash and cash equivalents increased to ¥512,790,239.83, representing 14.68% of total assets, up 42.35% from ¥360,220,096.71 last year[52]. - Accounts receivable decreased significantly by 77.07% to ¥23,030,023.37, down from ¥100,416,203.88, which accounted for 0.66% of total assets[52]. - The company reported a substantial increase in construction in progress, rising by 57.01% to ¥490,630,263.86, compared to ¥312,477,377.68 in the previous year, representing 14.04% of total assets[53]. - Short-term borrowings decreased by 67.63% to ¥32,719,000 from ¥101,080,000, which accounted for 0.94% of total liabilities[54]. - The company’s long-term borrowings increased significantly by 1,973.33% to ¥311,000,000 from ¥15,000,000, representing 8.90% of total liabilities[54]. - Total liabilities decreased from CNY 894,598,007.27 to CNY 801,717,897.38, a reduction of about 10.4%[108]. - Current liabilities decreased from CNY 583,452,993.03 to CNY 446,507,406.87, a decrease of approximately 23.5%[108]. Research and Development - The company plans to enhance its R&D capabilities by focusing on eight major therapeutic areas, including anti-tumor and cardiovascular drugs[28]. - Research and development expenses increased by 17.52% to ¥14.25 million, attributed to the separate accounting of R&D expenses from certain subsidiaries during the reporting period[51]. - The company is continuing its research on the sodium cantharidate series products and expanding the potential of ethnic medicinal materials, with ongoing projects to upgrade quality standards for various traditional Chinese medicines[44]. - The company aims to develop a new profit growth point by selecting ethnic medicinal varieties for secondary research and development, targeting products with potential sales exceeding ¥100 million[45]. Market and Sales Strategy - The company has established a comprehensive sales network covering most regions of the country, with a focus on a specialized sales team and a unique marketing management model[29]. - The company has established a product-based marketing team to ensure sustainable market development, focusing on professional terminal promotions and exploring e-commerce sales platforms as a supplement[30]. - Prescription drug sales are primarily conducted through a model of "agent cooperation + professional academic promotion + self-built marketing team," covering most provinces in China[30]. - The pharmaceutical manufacturing revenue accounted for 60.58% of total operating revenue, while the pharmaceutical commercial revenue accounted for 39.42%[27]. Risk Management - The report includes a risk statement regarding forward-looking statements, indicating that future plans do not constitute a substantive commitment to investors[5]. - The company faces risks from potential public health emergencies that could lead to a significant decline in product sales, as seen during the COVID-19 pandemic[62]. - The company is actively monitoring industry policy changes, such as the new Drug Administration Law and price control measures, which could impact profitability[64]. - The company has established a dynamic warning mechanism to adapt to regulatory changes and improve its operational strategies accordingly[64]. - The company faces risks of profit margin squeeze due to upstream raw material price increases, which cannot be passed down to downstream drug prices[72]. Corporate Governance - There were no plans for profit distribution or capital reserve transfer to increase share capital during the reporting period[4]. - The company has not faced any non-operating fund occupation by controlling shareholders or related parties[6]. - The report has not been audited, but the management has guaranteed its accuracy and completeness[7]. - The company continues to employ Lixin Accounting Firm for the 2020 audit, as approved by the 2019 annual general meeting[80]. - The actual controllers and major shareholders have maintained a good integrity record without administrative or criminal penalties during the reporting period[81]. Social Responsibility - The company donated approximately ¥4.5 million worth of medical supplies to support the fight against COVID-19 in Hubei province and an additional ¥1.01 million for poverty alleviation efforts in Guizhou province[43]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 51,326[93]. - The top shareholder, Guizhou Shenqi Investment Co., Ltd., holds 131,301,620 shares, accounting for 24.59% of total shares[96]. - Guizhou Maijisi Investment Management Co., Ltd. holds 88,001,946 shares, representing 16.48% of total shares[96]. - Zhang Zhijun holds 40,007,750 shares, which is 7.49% of total shares[96]. Accounting Policies - The financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position, operating results, and cash flows accurately[153]. - The company uses Renminbi as its accounting currency[156]. - The company applies the first-in, first-out (FIFO) method for inventory valuation upon issuance[186]. - The company recognizes long-term equity investments using the cost method for subsidiaries and the equity method for joint ventures and associates[194].