The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
1
The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
§1 Important notice
1.1 The Board of Directors (BOD), Board of Supervisors (BOS), directors, supervisors, and senior executives hereby
guarantee that the data in the present report contain no false representation, misleading statements and serious omissions,
and shall be severally and jointly liable for the authenticity, accuracy and completeness of the content.
1.2 Director of Miss Liu Guangxia due to work abroad did not participate in the quarterly board meetings, Mr. Zhu Baoguo
commissioned by the directors attended the meeting on his behalf, exercise the right to vote and sign the relevant
documents.
1.3The first quarterly report has not been audited by any accountants firms.
1.4Mr. Zhu Baoguo, principal of the Company, Mr. An Ning, the principal in charge of accounting, and Ms. Si Yanxia, the
principal of the Accounting Department hereby declare: We guarantee the authenticity and completeness of the Financial
Report in this quarterly report.
This Quarterly Report is published in Chinses and English vsrsions.In the event of inconsiatency, the Chinese vsrsion shall
prevail.
§2 Brief introduction of the Company
2.1 Financial highlights
Unit :( RMB) Yuan
Note: by September 30, 2009, the company has accumulatively repurchased 10,313,630 B-shares. In calculating the above financial
highlights, we have deducted the repurchased quantity from the total share capital;
2009.9.30 2008.12.31 Increase or decrease (%)
Total assets (RMB Yuan) 2,979,590,825.08 2,923,813,250.23 1.91%
Owners’ equity attributable to the shareholders
of listed company (RMB Yuan) 2,015,968,176.85 1,778,535,879.41 13.35%
Share capital (Share) 306,035,482 306,035,482 -
Net asset per share attributable to the
shareholders of listed company (RMB
Yuan/share)
6.82 5.86 16.38%
July to September
2009
Increase or decrease
compared with the
same period of
previous year (%)
January to
September 2009
Increase or decrease
compared with the
same period of
previous year (%)
Total operating income(RMB Yuan) 671,244,502.72 41.68% 1,880,951,358.95 18.84%
Net profit attributable to shareholders of listed
company(RMB Yuan) 101,787,416.13 1,437.29% 349,642,291.68 553.73%
Net cash flows from operating activities (RMB
Yuan) - - 360,461,931.74 102.84%
Net cash flows per share from operating
activities (RMB Yuan/share) - - 1.22 110.34%
Basic profit per share (RMB Yuan/share) 0.33 1,750.00% 1.16 582.35%
Diluted profit per share (RMB Yuan/share) 0.33 1,750.00% 1.16 582.35%
Yield rate of net asset（%） 5.05% Up 5.47 percentage
points 17.34% Up 14.36 percentage
points
Yield rate of net assets after deduction of nonrecurring
profit and loss（%） 5.03% Up 2.20 percentage
points 14.48% Up 3.87 percentage
pointsThe 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
2
The items of non-recurring profit and loss
Unit :( RMB) Yuan
Note: this table is calculated and filled in accordance with the regulation of No. 1 Explanatory Announcement about Information
Disclosure of Companies Making Public Offering of Securities – Non-recurring Profit and Loss (2008) (Zheng Jian Hui Gong
Gao (2008) No. 43).
2.2 Table about total quantity of all shareholders and shareholding particulars of top ten shareholders without trading
restriction at the end of report period
Unit: share
§3 Major events
3.1 Great changes and reasons of main financial statement items and financial indexes of the Company
√ Applicable □ Inapplicable
Items of non-recurring profit and loss
Amount from the year
beginning to end of report
period
Note
Profit and loss in disposal of non-circulation assets -841,652.28
Governmental allowance accrued to the current profit and loss 2,051,000.66
Except the effective hedge business related to the normal operation
business of the company, the profit and loss in the changes of fair
values caused by the holding of tradable financial assets and tradable
financial liabilities as well as the investment returns in disposal of
tradable financial assets, tradable financial liabilities and saleable
financial assets
61,082,571.10
Returns from the securities
investment and controllable
saleable financial assets
held by the Company
Other net non-operating income and payment except the above items 159,163.63
Subtotal 62,451,083.11
Minus: effect of income tax 4,522,378.47
Minus: Non-recurring profit and loss attributable to the minority of
shareholders 125,073.82
Total of non-recurring profit and loss 57,803,630.82
Total quantity of shareholders at the end of report
period The shareholder quantity amounted to 27,812 (including 11,140 B-share holders)
Shares held by top ten shareholders without trading restriction
No. Shareholder name Quantity of shares without
trading restriction Share type
1 Joincare Pharmaceutical Group Industry Co., Ltd 58,265,213 RMB Common share
2 Tiancheng Industry Co., Ltd 44,537,733 Domestically-listed shares for
overseas investors
3 First Shanghai Securities Co., Ltd 10,456,640 Domestically-listed shares for
overseas investors
4 Agricultural Bank of China –Greatwall Anxin Huibao Mixed
Securities Investment Fund 6,190,720 RMB Common share
5 Shenzhen Haibin Pharmaceutical Co., Ltd 5,892,943 RMB Common share
6 Bank of Communications – Greatwall Jiufu Core Growth
Stock-type Securities Investment Fund (LOF) 5,263,983 RMB Common share
7 Shenzhen Shengjibaili Advertisement Co., Ltd 5,000,000 RMB Common share
8 Bank of Communications - Penghua China 50 Open-end
Securities Investment Fund 4,711,116 RMB Common share
9 National Social Security Fund 104 Portfolio 3,920,640 RMB Common share
10 Bank of China - Huaxia Huibao Securities Investment Fund 3,409,873 RMB Common share
I. Items in the Balance Sheet: 1. the tradable financial assets decreased by RMB 71.5633 million Yuan, down 58.77% compared with
the beginning of report period. The main cause is the sales of securities investments and shares within the report period; 2. The receivaThe 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
3
3.2 Analysis and particulars of major events, their effects and resolutions
□ Applicable √ Inapplicable
3.3 Performance of commitments by the Company, shareholders and actual controllers
√ Applicable □Inapplicable
bles increased by RMB 160.4757 million Yuan, up 46.73% compared with the beginning of report period. The main cause is the
increase of sales incomes within the report period; 3. The saleable financial assets increased by RMB 4.7746 million Yuan, up 71.53%
compared with the beginning of report period. The main cause is the increase of fair values of saleable financial assets; 4. The
engineering under construction increased by RMB 39.1855 million Yuan, and the main cause is the investment in the “new relocation
and construction projects”; 5. The assets with deferred income taxes decreased by RMB 12.5019 million Yuan, down 39.41%
compared with the beginning of report period. The main cause is that the sold shares are used to offset the originally paid assets with
deferred income taxes; 6. The short-term loans decreased by RMB 236.2347 million Yuan, down 45.37% compared with the
beginning of report period. The main cause is that the company repaid the short-term loans of banks within the report period; 7. The
other payables increased by RMB 98.2408 million Yuan compared with the beginning of report period. The main cause is the growth
of sales scale and increase of corresponding market expenses.
II. The items in the Profit Statement from the year beginning to the end of report period: 1. the operating income increased by RMB
298.2202 million Yuan, up 18.84% compared with the same period of previous year. The main cause is that the sales volume of
preparation medical products of the Company has greatly increased; 2. The sales expenses increased by RMB 136.465 million Yuan,
up 49.45%. The main cause is that the increase of sales volume of the Company and the adjustment effect of marketing policies; 3.
The profits from the changes of fair values increased by RMB 353.8727 million Yuan, up 155.43%; 4. The investment returns
decreased by RMB 125.1938 million Yuan, down 215.13%. The main cause is that the Company has sold the tradable financial assets;
5. The net profit attributable to the owners of parent company increased by RMB 296.1581 million Yuan, up 553.73%. The main cause
is that the increase of both the net profits from the main businesses and the profits from the changes of fair values.
III. The items in the Cash Flow Statement: 1. the net amount of cash flow from operating activities increased by RMB 182.7565
million Yuan, up 102.84% compared with the same period of previous year. The main cause is that the sales volume of medical
products of the Company has greatly increased; 2. The net amount of cash flow received from the investment activities increased by
RMB 57.1402 million Yuan, up 1775.72% compared with the same period of previous year. The main reason is that the cash received
related to other investment activities have great increased; 3. The net amount of cash flow received related to financing activities
decreased by RMB 387.7943 million Yuan, down 83793.24% compared with the same period of previous year. The main reason is that
the loans from banks have greatly decreased.
(I) Commitments
1. This company signed the patent license agreement with Korea Yiyang Medicine Company. This agreement approves our company’s
exclusive and irrevocable right to use the patent PPI(proton pump inhibitor) compound and Yiyang patent in China including Hong Kong
and Macao in order to production, processing and distribution. The transfer fee will be USD 2.50 million, and by December 31, 2008,
the company has fully paid it. The company agrees to deduct a percentage for Yiyang according to 10% of sales amount during the first
three years when this product begins to be sold. And deduct a percentage according to 8% of sales amount during the next five years. And
deduct a percentage according to 6% of sales amount from the remaining time to July 22, 2014 (the expiry date of agreement).
2. In 2005, the company signed the approval and supply agreement with Korea LG life science Ltd. (hereinafter referred to as LG
Company), and it grants Gemifloxacin Mesylate with the relevant certificates about intellectual properties and specifies that the
permission fees of the methanesulfonic acid spasmolytic and pellet will be USD1, 000,000 respectively (It has been fully paid by
December 31, 2006). This agreement specifies as follows: Within the first five years from the validity date of the agreement, the
company’s net sales volume of Jimishaxing pellet will amount to 1.5 million bags (3 pellets in each bag) and LG Company will refund
USD 500,000 after the taxation at one time within two months after the company has submitted the net sales volume certificate. At the
same time, during the validity period of the agreement (by the end of 2015), the company should pay a royalty of 1.5% of net sales
volume after the taxation to LG Company during 30 days after each quarter. Within the first five years from the validity date of the
agreement, the company will pay a royalty of 10% of net sales volume after the taxation about injection products to LG Company within
30 days after each quarter. The company will pay a royalty of 6% of net sales volume after the taxation about injection products to LG
Company within 30 days after each quarter from the sixth business year to the expiry date of agreement (by the end of 2019).
(II) Commitments of shareholders holding over 5% of total shares of the company
1. In May 2008, regarding the repurchase of the domestically listed shares for overseas investors (B shares) by the company, Tiancheng
Industry Co., Ltd, the fully-owned subcompany of the controlling shareholder Joincare, committed that:
From the announcement date of relevant resolutions passed by the Board of Directors about Livzon Group repurchasing the domestically
listed shares for overseas investors (B shares) to 6 months after the completion date of repurchase, Tiancheng Industry will not sell all Bshares
of Livzon Group that are held by it. This commitment is irrevocable.
2. In December 2008, in handling the release formalities of shares with trading restriction, the controlling shareholder Joincare
Pharmaceutical Group Industry Co., Ltd made the following commitments:
(1) If Joincare transfers its tradable shares of Livzon Group whose trading restriction has been released, it will strictly comply with the
relevant regulations of the Guiding Opinions on the Listed Companies’ Transfer of Original Shares Released from Trading Restrictions
([2008] No. 15 announcement) issued by China Securities Regulatory Commission. (2) If Joincare plans to reduce its tradable shares of
Livzon Group whose trading restriction has been released through the competing price trading system in the stock exchange in the future
and the reduced quantity of shares amounts to over 5% within 6 months from the first reduction, Joincare will disclose the reminder
announcement about the selling affairs via Livzon Group in 2 trading days before the first reduction.
Performance status: the above commitments are being performed and there is no breach of commitments within the report period.The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
4
3.4 Warning and relevant reasons for the forecast that the accumulative net profit from the beginning of
2009 to the end of next report period may suffer from any loss or have any great changes over the same
period of previous year
□ Applicable √ Inapplicable
3.5Particulars about Other Major events
3.5.1 Particulars about Securities investment
√ Applicable □ Inapplicable
Unit :( RMB) Yuan
3.5.2 Shareholding particulars of other listed companies
√ Applicable □ Inapplicable
Unit :( RMB) Yuan
3.5.3 Routine associated transactions
No.
Securi
ties
Type
Securities
Code
Securities
abbreviation
Initial
investment
amount (RMB
Yuan)
Holding
quantity (share)
Book Values at
the end of
period
Percentage of
total
investment in
the securities
at the end of
period (%)
Profit and loss
during the report
period (July to
September)
1 Stock 00135 CNPC(HONG
KONG) 16,522,575.57 3,500,000 18,935,698.60 37.71% -802,183.20
2 Stock 00152 Shenzhen
International 10,163,526.16 17,000,000 7,789,277.60 15.51% -
3 Stock 02007 Phoenix Island 21,007,119.72 2,450,000 6,044,620.40 12.04% -1,685,007.22
4 Stock 00883
China National
Offshore Oil
Corporation
2,887,279.90 560,000 5,141,628.13 10.24% 487,823.50
5 Stock 01880 Baili Company 2,361,785.47 428,000 3,001,938.24 5.98% 430,111.24
6 Stock 00438 Rainbow group 6,298,712.22 4,560,000 2,008,999.20 4.00% -
7 Stock 00390
China Railway
Engineering
Group Co.
1,615,334.53 314,000 1,842,675.21 3.67% 119,022.83
8 Stock 01688 Alibaba 937,202.33 78,000 1,237,120.56 2.46% 306,396.33
9 Stock 01186
China Railway
Construction
Corporation
1,085,659.45 114,000 1,034,634.59 2.06% -156,618.88
10 Stock 00368 Sinotrans Ship 1,896,557.52 260,500 716,155.35 1.43% -55,162.22
Other securities investment at the end of
this period 1,337,094.79 - 2,461,721.87 4.90% 120,648.41
Profit and loss of sold Securities investment
during the report period - - - - 1,813,703.05
Total 66,112,847.67 - 50,214,469.75 100% 578,733.84
Security
code
Security
abbreviation
Initial
investment
capital
Percentage of total
shares of this
Company
Book value at
the end of this
period
Profit and loss
during the
report period
Change of owners’ equities
during the report period
601328
Bank of
Communica
tions
1,640,080.00 0.00262% 9,997,249.50 120,015.00 -816,102.00
000963
Huadong
Medicine
Co., Ltd
39,851.86 0.02112% 1,452,125.27 - 273,761.41
Total 1,679,931.86 - 11,449,374.77 120,015.00 -542,340.59The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
5
√ Applicable □ Inapplicable
3.5.3.1 Purchase of commodities
Unit :( RMB) Yuan
3.5.3.2 Sales of commodities
Unit :( RMB) Yuan
3.5.3.3 Provision of labors
Unit :( RMB) Yuan
3.5.3.4 Leased assets
Unit :( RMB) Yuan
3.5.3.5 Rented assets
Unit :( RMB) Yuan
The above-mentioned associated transaction came from the normal supply demand of the company. It is predicated that this
associated transaction will continue during the production operations from now on. The associated transaction follows the principle
of equity, justice and no damage to the company’s benefits. Because the associated transaction amount accounts for the small
percentage of total sales revenue or purchasing amount, it makes no effect on financial status and operation result. And it also makes
no effect on the independence of the company. The company also will not depend on associated persons due to this associated
transaction.
3.5.4 Development status of the repurchase of some of domestically listed shares for overseas investors (B
shares)
Associated party January to September 2009 January to September 2008
Shenzhen Haibin Pharmaceutical Co., Ltd 2,720,085.43 996,923.15
Guangdong Blue Treasure Pharmaceutical Co. Ltd 15,011.36 5,695.66
Joincare Pharmaceutical Group Industry Co., Ltd 329,641.03 130,256.41
Jiaozuo Joincare Pharmaceutical Group Industry Co., Ltd 98,139,743.70 141,279,359.09
Total 101,204,481.52 142,412,234.31
Associated party January to September 2009 January to September 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd 12,302,442.91 1,777,946.68
Jiaozuo Joincare Pharmaceutical Group Industry Co., Ltd - 32,179.49
Tongyikangshimei Chain (Shenzhen) Co., Ltd - 11,460.27
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd 2,492.85 1,080.52
Shenzhen Taitai Pharmaceutical Company Limited 71,794.87 30,769.23
Total 12,376,730.63 1,853,436.19
Associated party January to September 2009 January to September 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd 5,103,330.60 7,677,908.86
Associated party January to September 2009 January to September 2008
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd 77,961.00 80,322.55
Health Pharmaceutical (China) Co., Ltd 74,961.00 33,316.00
Total 152,922.00 113,638.55
Associated party January to September 2009 January to September 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd - 53,137.20
By the end of report period, the company has accumulatively repurchased the quantity of 10,313,630 B-shares, accounting for 3.3701
％ of total share capitals of the company; the maximum repurchase price is HKD 15.85 per share and the minimum repurchase priceThe 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
6
3.5.5 List of Activities that the Company receives the investigation, communication and interview, etc
during the report period
3.6 Particulars about Financial Derivatives
□ Applicable √ Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by: Livzon Pharmaceutical Group Inc. September 30, 2009 Unit :( RMB) Yuan
is HKD 8.38 per share; the total amount for the repurchase reaches RMB 11,568.41 million Yuan (including the taxes).
Reception date Reception
place
Reception
mode
Objects Discussion topics and
provided materials
July 30, 2009 Headquarters Local
investigation China Merchants Securities Co., Ltd Operation status of the Company;
provide no text materials
August 6, 2009
Headquarters Local
investigation Sealand Securities Co., Ltd Operation status of the Company;
provide no text materials
Headquarters Local
investigation
Shanghai Richen Asset Management
Co., Ltd
Operation status of the Company;
provide no text materials
Headquarters Local
investigation Huaxia Fund Operation status of the Company;
provide no text materials
Headquarters Local
investigation
Zhong Hai Fund Management Co.,
Ltd.
Operation status of the Company;
provide no text materials
Headquarters Local
investigation
Investment Department under
Industrial Securities Co., LTD
Operation status of the Company;
provide no text materials
September 25, 2009
Headquarters Local
investigation
Investment Management
Department under Guangfa
Securities
Operation status of the Company;
provide no text materials
Item
Balance at the end of period Balance at the beginning of year
Consolidation Parent Company Consolidation Parent Company
Current assets:
Currency capital 572,990,991.36 408,754,340.77 540,183,900.36 465,301,653.09
Tradable financial assets 50,214,469.75 121,777,817.15 80,393,200.00
Notes receivable 216,181,711.70 16,179,886.62 200,743,296.63 29,231,539.08
Accounts receivable 503,862,399.36 193,047,518.30 343,386,691.32 144,321,719.40
Advance money 48,829,576.20 9,958,886.67 34,582,521.10 8,826,526.19
Interests receivable
Dividend receivable 717,057.69
Other receivables 26,882,826.25 582,454,653.21 23,100,296.48 597,968,454.42
Inventory 292,830,490.41 58,677,948.94 346,075,150.03 59,282,216.75
Non-current assets due within one year
Other current assets
Total of current assets 1,711,792,465.03 1,269,073,234.51 1,609,849,673.07 1,386,042,366.62
Non-current assets:The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
7
Saleable financial assets 11,449,374.77 11,449,374.77 6,674,800.96 6,674,800.96
Investment held to the maturity date
Long-term accounts receivable
Long-term equity investment 43,185,380.41 893,908,972.60 45,128,539.14 898,086,492.34
Real estate for Investment
Fixed assets 851,425,922.50 99,369,136.65 922,704,199.55 106,219,049.50
Engineering under construction 77,303,064.88 38,117,555.88
Engineering goods 4,450,500.72 2,528,232.88
Liquidation of fixed assets
Production biology assets
Intangible assets 146,288,765.13 35,241,643.71 154,395,927.44 39,152,640.11
Development expenses 6,263,502.82 4,627,329.72 4,010,294.70 2,460,860.10
Goodwill 103,040,497.85 103,040,497.85
Long-term deferred and prepaid
expenses 5,172,328.58 5,642,572.45
Assets with deferred income taxes 19,219,022.39 10,762,174.16 31,720,956.31 24,462,136.75
Other non-current assets
Subtotal of non-current assets 1,267,798,360.05 1,055,358,631.61 1,313,963,577.16 1,077,055,979.76
Total of assets 2,979,590,825.08 2,324,431,866.12 2,923,813,250.23 2,463,098,346.38
Current liabilities:
Short-term loans 284,480,115.40 192,348,051.40 520,714,775.00 476,299,225.00
Tradable financial liability
Notes payable
Accounts payable 124,847,067.46 147,214,814.07 159,486,983.56 114,072,354.87
Deposit receivable 8,272,324.44 2,566,146.19 12,802,764.02 2,872,035.13
Payroll payable 35,090,487.90 20,832,332.02 33,458,734.45 16,598,171.56
Tax payable 53,427,198.04 3,311,242.45 77,142,056.03 15,704,237.77
Interests payable
Dividend payable 2,531,984.01 20,174.01 2,531,984.01 20,174.01
Other accounts payable 249,077,415.06 492,663,540.29 150,836,568.52 412,814,666.41
Non-current liabilities due within one
year 20,400,000.00 20,000,000.00 10,400,000.00 10,000,000.00
Other current liabilities
Total of current liabilities 778,126,592.31 878,956,300.43 967,373,865.59 1,048,380,864.75
Non-current liabilities
Long-term loan 80,700,000.00 80,000,000.00 100,700,000.00 100,000,000.00
Securities payable
Long-term accounts payable
Special accounts payable
Deferred profit 28,744,313.59 16,753,937.23 19,300,344.26 10,266,816.45
Anticipation liability
Liabilities with the deferred income
taxes 2,630,947.94 1,465,409.91 1,914,761.87 749,223.84
Other non-current liabilities
Subtotal of non-current liabilities 112,075,261.53 98,219,347.14 121,915,106.13 111,016,040.29
Total of liabilities 890,201,853.84 977,175,647.57 1,089,288,971.72 1,159,396,905.04
Owners' equity (or shareholders’
equities):The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
8
4.2 Profit statement
Prepared by: Livzon Pharmaceutical Group Inc. July to September 2009 Unit :( RMB) Yuan
Paid-up capital (or share capital) 306,035,482 306,035,482 306,035,482 306,035,482
Capital reserve 441,373,222.18 432,184,025.50 437,314,834.44 428,125,637.76
Minus: treasury share 101,978,882.47 101,978,882.47 15,798,067.52 15,798,067.52
Special reserve
Surplus reserve 353,298,521.02 233,653,771.24 353,298,521.02 233,653,771.24
Profit in this year 349,642,291.68 155,538,372.62
General risk reserve
Undistributed profit 681,289,981.18 321,823,449.66 711,151,149.38 351,684,617.86
Conversion margin in foreign currency
statement -13,692,438.74 -13,466,039.91
Subtotal of equities attributable to the
owners of parent company 2,015,968,176.85 1,347,256,218.55 1,778,535,879.41 1,303,701,441.34
Equities of the minority of
shareholders 73,420,794.39 55,988,399.10
Subtotal of owners’ equities 2,089,388,971.24 1,347,256,218.55 1,834,524,278.51 1,303,701,441.34
Total of liabilities and owners’ equities 2,979,590,825.08 2,324,431,866.12 2,923,813,250.23 2,463,098,346.38
Item
Amount in this period Amount in previous period
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 671,244,502.72 231,398,125.80 473,784,332.93 172,729,438.12
Including: operating income 671,244,502.72 231,398,125.80 473,784,332.93 172,729,438.12
II. Total operating cost 544,634,602.53 230,278,350.72 401,978,577.94 172,372,698.60
Including: operating cost 325,401,654.98 117,533,837.92 247,191,099.55 101,781,470.67
Operating tax and surtax 1,405,410.21 45,000.00 1,144,079.04 30,000.00
Sales expense 151,742,616.07 90,611,165.46 98,240,278.82 44,207,590.56
Management expense 55,458,307.61 23,903,798.29 50,213,821.58 17,905,863.58
Financial expense 954,329.71 -1,878,927.31 8,006,590.93 8,006,212.33
Loss from asset depreciation 9,672,283.95 63,476.36 -2,817,291.98 441,561.46
Plus: returns from the changes of fair
values (the loss is listed beginning with
“-”).
-7,413,200.41 -73,702,290.38 -48,147,700.00
Investment returns (the loss is listed
beginning with “-”). 7,303,174.03 31,543,513.20 1,620,418.43 6,259,534.76
Including: the investment returns from
the associated enterprises and joint
enterprises
-870,890.13 -1,324,483.78 -1,130,351.77 -1,473,461.42
III. Operating profit (the loss is listed
beginning with “-”) 126,499,873.81 32,663,288.28 -276,116.96 -41,531,425.72
Plus : non-operating income 1,263,872.92 212,361.71 2,904,124.87 219,762.19
Minus: non-operating payments 1,368,874.83 730,891.90 61,409.80
Including: loss in the disposal of noncurrent
assets 693,239.98 72,774.79
IV. Total profit (the loss is listed
beginning with “-”) 126,394,871.90 32,875,649.99 1,897,116.01 -41,373,073.33
Minus: income tax expense 15,843,164.68 -125,752.50 4,506,548.53 -8,551,732.10The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
9
4.3 Profit statement
Prepared by: Livzon Pharmaceutical Group Inc. January to September 2009 Unit :( RMB) Yuan
V. Net profit (the loss is listed beginning
with “-”) 110,551,707.22 33,001,402.49 -2,609,432.52 -32,821,341.23
Net profit attributable to the owners of
parent company 101,787,416.13 33,001,402.49 -7,611,490.35 -32,821,341.23
Profit and loss of the minority of
shareholders 8,764,291.09 5,002,057.83
VI. Profit per share:
(I) Basic profit per share 0.33 -0.02
(II) Diluted profit per share 0.33 -0.02
VII. Other comprehensive profit -483,841.93 -460,989.50 -1,460,505.04 -1,677,600.64
VIII. Total amount of comprehensive
profit 110,067,865.29 32,540,412.99 -4,069,937.56 -34,498,941.87
Total amount of comprehensive profit
attributable to the owners of parent
company
101,303,574.20 32,540,412.99 -9,071,995.39 -34,498,941.87
Total amount of comprehensive profit
attributable to the minority of
shareholders
8,764,291.09 5,002,057.83
Item
Amount in this year Amount in previous year
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 1,880,951,358.95 697,902,398.71 1,582,731,155.41 539,630,467.08
Including: operating income 1,880,951,358.95 697,902,398.71 1,582,731,155.41 539,630,467.08
II. Total operating cost 1,512,703,211.49 690,198,609.57 1,320,963,450.39 491,057,918.28
Including: operating cost 883,560,597.75 367,878,312.72 875,951,444.16 297,260,759.27
Operating tax and surtax 4,393,087.68 106,500.00 3,435,502.25 105,000.00
Sales expense 412,422,913.02 236,869,515.93 275,957,932.18 125,294,353.96
Management expense 166,636,441.36 69,819,169.76 140,792,507.30 54,038,797.27
Financial expense 11,617,530.31 9,874,095.92 13,111,391.02 10,823,837.84
Loss from asset depreciation 34,072,641.37 5,651,015.24 11,714,673.48 3,535,169.94
Plus: returns from the changes of fair values
(the loss is listed beginning with “-”). 126,197,836.99 97,808,992.64 -227,674,902.86 -157,299,298.10
Investment returns (the loss is listed beginning
with “-”). -66,998,058.40 54,344,657.59 58,195,777.16 150,651,278.93
Including: the investment returns from the
associated enterprises and joint enterprises -1,943,158.70 -4,177,519.74 -3,017,182.60 -3,481,695.90
III. Operating profit (the loss is listed beginning
with “-”) 427,447,926.05 159,857,439.37 92,288,579.32 41,924,529.63
Plus : non-operating income 3,948,327.62 1,046,363.18 5,585,017.96 241,246.21
Minus: non-operating payments 2,579,815.61 98,010.14 3,552,893.25 1,900,871.16
Including: loss in the disposal of non-current
assets 1,484,508.53 94,409.94 566,606.11 179,544.88
IV. Total profit (the loss is listed beginning with
“-”) 428,816,438.06 160,805,792.41 94,320,704.03 40,264,904.68
Minus: income tax expense 54,801,849.49 5,267,419.79 26,919,283.95 -10,734,530.40
V. Net profit (the loss is listed beginning with
“-”) 374,014,588.57 155,538,372.62 67,401,420.08 50,999,435.08
Net profit attributable to the owners of parent
company
349,642,291.68 155,538,372.62 53,484,202.88 50,999,435.08The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
10
4.4 Cash flow statement
Prepared by: Livzon Pharmaceutical Group Inc. January to September 2009 Unit :( RMB) Yuan
Profit and loss of the minority of shareholders 24,372,296.89 13,917,217.20
VI. Profit per share:
(I) Basic profit per share 1.16 0.17
(II) Diluted profit per share 1.16 0.17
VII. Other comprehensive profit 3,831,988.91 4,058,387.74 -47,265,798.65 -40,370,511.83
VIII. Total amount of comprehensive profit 377,846,577.48 159,596,760.36 20,135,621.43 10,628,923.25
Total amount of comprehensive profit
attributable to the owners of parent company 353,474,280.59 159,596,760.36 6,218,404.23 10,628,923.25
Total amount of comprehensive profit
attributable to the minority of shareholders 24,372,296.89 13,917,217.20
Item
Amount in this year Amount in previous year
Consolidation Parent Company Consolidation Parent Company
I. Cash flows from operating activities
Cash received from sales of goods or
rendering of services 1,671,756,438.90 689,394,945.15 1,313,324,560.81 511,660,491.06
Tax refunding 5,504,469.40 2,379,299.82
Cash received related to other operating
activities 50,328,445.39 55,348,795.35 26,128,694.64 23,144,385.23
Subtotal of cash inflow from the operating
activities 1,727,589,353.69 744,743,740.50 1,341,832,555.27 534,804,876.29
Cash paid for purchase of goods or receiving
of services 548,928,794.62 326,835,590.86 491,617,162.30 276,857,597.14
Cash paid to and on behalf of employees 175,175,676.13 56,484,570.64 164,132,136.67 48,841,643.59
Tax payments 274,162,311.12 70,393,277.23 216,587,999.02 74,430,788.56
Other cashes paid to operating activities 368,860,640.08 180,794,353.32 291,789,790.16 112,808,370.40
Subtotal of cash outflow from operating
activities 1,367,127,421.95 634,507,792.05 1,164,127,088.15 512,938,399.69
Net cash flow from operating activities 360,461,931.74 110,235,948.45 177,705,467.12 21,866,476.60
II. Cash flow from investment activities:
Cash received from disposal of investments 124,019,666.02 242,361,614.28 132,529,201.09 207,459,090.72
Cash received from investment returns 344,911.19 121,231.19 3,661,856.30 1,781,065.50
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
443,084.18 1,500.00 10,354,104.88 1,299,510.79
Cash received related to other investment
activities 13,240,850.29
Subtotal of cash inflow from the investment
activities 138,048,511.68 242,484,345.47 146,545,162.27 210,539,667.01
Cash paid to acquire and construct fixed
assets, intangible assets and other long-term
assets
77,686,974.39 3,059,526.30 51,201,738.37 6,393,485.61
Cash paid to acquire investments 92,049,233.49 86,553,451.64
Cash paid related to other investment
activities 3,500.00 3,500.00 76,338.50 76,338.50
Subtotal of cash outflow from investment
activities
77,690,474.39 3,063,026.30 143,327,310.36 93,023,275.75The 2009 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
11
4.5 Auditing report
This financial statement has not been audited.
Livzon Pharmaceutical Group Inc.
Chairman: Zhu Baoguo
October 24, 2009
Net amount of cash flow received from the
investment activities 60,358,037.29 239,421,319.17 3,217,851.91 117,516,391.26
III. Cash flow from financing activities:
Cash received from investors 400,000.00
Including: cash received from the investment
of minority of shareholders in the
subcompanies
Cash from loans 390,867,287.83 295,127,733.83 924,455,507.00 855,290,337.00
Cash received from the issuing of bonds
Cash received related to other financing
activities
Subtotal of cash inflow from the financing
activities 391,267,287.83 295,127,733.83 924,455,507.00 855,290,337.00
Repayments of loans 640,912,132.86 570,167,284.19 729,036,823.71 636,181,412.70
Cash paid for distribution of dividends, profits
and repayment of interests 52,433,559.48 45,016,702.95 195,881,482.26 180,586,471.24
Including: the dividends and profits paid to
the minority of shareholders by the
subcompanies
Cash payments related to other financing
activities 86,178,654.95 86,178,913.71
Sub-total of cash outflow from the financing
activities 779,524,347.29 701,362,900.85 924,918,305.97 816,767,883.94
Net cash flow from financing activities -388,257,059.46 -406,235,167.02 -462,798.97 38,522,453.06
IV. Effect of foreign exchange fluctuation on
cash and cash equivalents 244,181.43 30,587.08 -2,080,473.48 -846,709.50
V. Net increase of cash and cash equivalents 32,807,091.00 -56,547,312.32 178,380,046.58 177,058,611.42
Plus: Balance of cash and cash equivalents at
the beginning of the period 540,183,900.36 465,301,653.09 281,225,232.89 214,055,704.00
VI Balance of cash and cash equivalents at
the end of the period 572,990,991.36 408,754,340.77 459,605,279.47 391,114,315.42
