The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
The 2009 First 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 No directors, supervisors and senior executives have any guaranty or objection to the authenticity, accuracy and completeness of the
content.
1.3 All directors attended the shareholders’ meeting.
1.4 The first quarterly report has not been audited by any accountants firms.
1.5 Mr. 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.
§2 Brief introduction of the Company
2.1 Financial highlights
Unit :( RMB) Yuan
End of this report period
End of previous Year
Increase or decrease (%)
Total assets
2,805,798,306.10
2,923,813,250.23
-4.04%
Owners’ equity (or Shareholders’ equity)
1,855,727,321.41
1,778,535,879.41
4.34%
Net asset per share
6.20
5.86
5.80%
End of this report period
Same period in previous year
Increase or decrease (%)
Net profit
116,720,034.31
51,598,108.71
126.21%
Net cash flows from operating activities
168,932,772.38
33,946,315.66
397.65%
Net cash flows per share from operating activities
0.56
0.11
409.09%
Basic profit per share
0.39
0.17
129.41%
Diluted profit per share
0.39
0.17
129.41%
Yield rate of net asset
6.29%
2.64%
Up 3.65 percentage points
Yield rate of net assets after deduction of non-recurring profit and loss
4.57%
3.66%
Up 0.91 percentage points
Note: 1. by March 31, 2009, the company has accumulatively repurchased 6,815,200 B-shares. In calculating
the above financial highlights, we have deducted the repurchased quantity from the total share capital; 2. The
item “Yield rate of net assets after deduction of non-recurring profit and loss” in the statement will be
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), and the data in the previous years will be correspondingly adjusted.
The items of non-recurring profit and loss
Unit :( RMB) Yuan
Items of non-recurring profit and loss
January to March 2009
January to March 2008
1. Profit and loss in disposal of non-circulation assets
-10,115.13
147,853.31
2. Governmental allowance accrued to the current profit and loss
689,831.83
1,782,601.00
3. Except the effective hedge business related to the normal operation business of the company, the profit
and loss in the changes of fair
35,734,126.50
-19,729,567.26
1The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
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
4. Other net non-operating income and payment except the above items
-29,474.21
-47,506.76
Subtotal
36,384,368.99
-17,846,619.73
Minus: effect of income tax
4,464,792.74
1,938,754.02
Non-recurring profit and loss attributable to the minority of shareholders
30,039.65
165,386.67
Total of non-recurring profit and loss
31,889,536.60
-19,950,760.42
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
Total quantity of shareholders
The shareholder quantity amounted to 31,085 (including 12,183 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
10,531,530
Domestically-listed shares for overseas investors
4
National Social Securities Fund 104 Portfolio
7,009,078
RMB Common share
5
Bank of China - Huaxia Huibao Securities Investment Fund
6,380,873
RMB Common share
6
Shenzhen Haibin Pharmaceutical Co., Ltd
5,892,943
RMB Common share
7
Bank of Communications- Hua’An Strategy Optimization Stock Securities Investment Fund
5,500,000
RMB Common share
8
Bank of Communications - Penghua China 50 Open-end Securities Investment Fund
5,485,821
RMB Common share
9
Shenzhen Shengjibaili Advertisement Co., Ltd
5,000,000
RMB Common share
10
Bank of China – LOF
3,881,176
RMB Common share
§3 Major events
3.1 Great changes and reasons of main financial statement items and financial indexes of the Company
√ Applicable □ Inapplicable
I. Items in the Balance Sheet: 1. the tradable financial assets decreased by RMB 83.2803 million Yuan
compared with the beginning of report period, with the decrease rate of 68.39%. The main cause is the sales of
securities investments and shares within the report period; 2. The notes receivable decreased by RMB 70.9019
million Yuan compared with the beginning of report period, with the decrease rate of 35.32%. The main cause is
the discounting of notes and due payments within the report period; 3. The saleable financial assets increased
by RMB 2.1198 million Yuan compared with the beginning of report period, with the increase rate of 31.76%. The
main cause is the increase of fair values of saleable financial assets; 4. The assets with deferred income
taxes decreased by RMB 13.2849 million Yuan compared with the beginning of report period, with the decrease
rate of 41.88%. The main cause is that the sold shares are used to offset the originally paid the assets with
deferred income taxes; 5. The short-term loans decreased by RMB 240.0102 million Yuan compared with the
beginning of report period, with the decrease rate of 46.09%. The main cause is that the company repaid the
short-term loans of banks within the report period; 6. The treasury shares increased by RMB 41.3457 million
Yuan, with the increase rate of 261.71%. The main cause is the increase of quantity of B-shares continuously
repurchased by the company with the report period.
II. Items in the Profit Statement; 1. The sales expenses increased by RMB 35.5371 million Yuan over the
same period of previous 2The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
year, with the increase rate of 46.20%. The main causes are the increase of sales income and adjustment of
marketing policies; 2. The benefits from the changes of fair values increased by RMB 163.7455 million Yuan over
the same period of previous year, with the increase rate of 304.17%. The investment returns decreased by RMB
108.8649 million Yuan over the same period of previous year, with the decrease rate of 329.30%, and the main
cause is the sales of tradable financial assets within the report period; 3. The net profit attributable to the
owners of parent company increased by RMB 65.1219 million Yuan over the same period of previous year, with the
increase rate of 126.21%, and the main cause is the increase of both the returns from changes of fair values
and investment returns within the report period.
III. Items in the Cash Flow Statement: 1. the net cash flow from operating activities increases by RMB
134.9865 million Yuan over the same period of previous year, with the increase rate of 397.65%. The main cause
is that the cash from the sales of the commodities and provisions of labors increased by RMB 159.4413 million
Yuan; 2. The net cash flow from the investment activities increased by RMB 95.2261 million Yuan over the same
period of previous year, with the increase rate of 2279.47%. the main cause is that the cash received from the
investment return increased by RMB 79.7960 million Yuan over the same period of previous year within the report
period; 3. The net amount of cash flow from the raising activities in this period decreased by RMB 319.4028
million Yuan, with the decrease rate of 523.90%. The main cause is that the cash from loans decreased by RMB
339.4981 million Yuan over the same period of previous year.
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
(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 B-shares 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.
3The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
3.4 Warning and relevant reasons for the forecast that the accumulative net profit from the beginning of
2008 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
No.
Securities Type
Securities Code
Securities abbreviation
Initial investment amount (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
1
Stock
0135
China Hongkong Petrol
16,539,264.28
3,500,000.00
10,125,704.40
26.34%
2,685,598.65
2
Stock
1088
China Shenhua Energy Company Limited
4,530,612.81
418,000.00
6,437,301.91
16.74%
390,783.27
3
Stock
0152
Shenzhen International
10,173,791.88
17,000,000.00
5,323,051.05
13.84%
299,869.80
4
Stock
2007
Phoenix Island
21,028,338.07
2,450,000.00
4,429,995.68
11.52%
324,123.98
5
Stock
0883
China National Offshore Oil Corporation
2,890,196.21
560,000.00
3,793,434.62
9.87%
217,317.41
6
Stock
1880
Baili Company
2,364,171.00
428,000.00
1,491,159.92
3.88%
207,615.74
7
Stock
0438
Rainbow group
6,305,074.27
4,560,000.00
1,468,050.73
3.82%
241,306.99
8
Stock
0390
China Railway Engineering Group Co.
1,616,966.11
314,000.00
1,254,617.11
3.26%
-232,628.41
9
Stock
1186
China Railway Construction Corporation
1,086,756.03
114,000.00
1,017,580.37
2.65%
-142,773.30
10
Stock
0968
Little sheep
600,629.16
212,000.00
542,272.04
1.41%
157,061.22
Other securities investment at the end of this period
3,724,438.28
-
2,614,382.07
6.67%
145,105.14
Profit and loss of sold Securities investment during the report period
-
-
-
-
31,440,746.02
Total
70,860,238.10
-
38,497,549.90
100%
35,734,126.50
3.5.2 Routine associated transactions
√ Applicable □ Inapplicable
3.5.2.1 Purchase of commodities
Unit :( RMB) Yuan
Associated party
January to March 2009
January to March 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd
-
5,488.66
4The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Shenzhen Haibin Pharmaceutical Co., Ltd
1,948,717.95
186,461.55
Jiaozuo Joincare Pharmaceutical Group Industry Co., Ltd
24,294,017.09
55,275,000.11
Total
26,242,735.04
55,466,950.32
3.5.2.2 Sales of commodities
Unit :( RMB) Yuan
Associated party
January to March 2009
January to March 2008
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd
-
821.09
Guangdong Blue Treasure Pharmaceutical Co. Ltd
5,952,225.65
30,902.57
Total
5,952,225.65
31,723.66
3.5.2.3 Provision of labors
Unit :( RMB) Yuan
Associated party
January to March 2009
January to March 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd
1,477,825.20
2,456,128.00
3.5.2.4 Rental Payment
Unit :( RMB) Yuan
Associated party
January to March 2009
January to March 2008
Guangdong Blue Treasure Pharmaceutical Co. Ltd
-
53,137.20
3.5.2.5 Leasing income
Unit :( RMB) Yuan
Associated party
January to March 2009
January to March 2008
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd
25,857.00
25,857.00
Health Pharmaceutical (China) Co., Ltd
24,987.00
-
Total
50,844.00
25,857.00
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.
3.5.3 Development status of the repurchase of some of domestically listed shares for overseas investors (B
shares)
By the end of report period, the company has accumulatively repurchased the quantity of 6,815,200 B-shares,
accounting for 2.23％ of total share capitals of the company; the maximum repurchase price HKD 10.00 per share
and the minimum repurchase price is HKD 8.38 per share; the total amount for the repurchase reaches RMB 64.7964
million Yuan (including the taxes).
3.5.4 List of Activities that the Company receives the investigation, communication and interview, etc
during the report period
Reception date
Reception place
Reception mode
Objects
Discussion topics and provided materials
2009.1.8
Headquarters
Local
United Securities
Operation status of the Company; 5The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
investigation
Local investigation
China Jianyin Investment Securities Co., Ltd.
Local investigation
Baoying Fund Management Co., Ltd
Local investigation
CCB Principal Asset ManagementCo., Ltd.
Local investigation
Great Wall Fund Management Co., Ltd
provide no text materials
2009.1.16
Headquarters
Local investigation
ICBC Credit Suisse Asset Management Co., Ltd
Operation status of the Company; provide no text materials
Local investigation
China Post & Capital Fund Management Co., Ltd.
Local investigation
Citic Securities Co., Ltd
2009.2.27
Headquarters
Local investigation
Fullgoal Fund Management Co., Ltd
Operation status of the Company; provide no text materials
§4 Appendix
4.1 Balance sheet
Prepared by: Livzon Pharmaceutical Group Inc. March 31, 2009 Unit :( RMB) Yuan
Balance at the end of this period
Balance at the beginning of this period
Item
Consolidation
Parent company
Consolidation
Parent company
Current assets:
Currency capital
550,054,274.85
464,916,369.09
540,183,900.36
465,301,653.09
Reserve for settlement
Lending to banks
Tradable financial assets
38,497,549.91
121,777,817.15
80,393,200.00
Notes receivable
129,841,393.51
36,591,431.35
200,743,296.63
29,231,539.08
Accounts receivable
424,556,271.51
159,043,886.09
343,386,691.32
144,321,719.40
Advance money
34,891,540.55
9,817,083.29
34,582,521.10
8,826,526.19
Receivable premium
Receivable reinsurance
Receivable reserve for reinsurance contracts
Interests receivable
Dividend receivable
717,057.69
717,057.69
Other receivables
23,163,844.14
559,335,473.69
23,100,296.48
597,968,454.42
Purchase of resold financial assets
Inventory
320,301,464.55
47,539,857.90
346,075,150.03
59,282,216.75
Non-current assets due within one year
Other current assets
Total of current assets
1,521,306,339.02
1,277,961,159.10
1,609,849,673.07
1,386,042,366.62
Non-current assets:
Release of loans and advance
6The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
money
Saleable financial assets
8,794,613.46
8,794,613.46
6,674,800.96
6,674,800.96
Investment held to the maturity date
Long-term accounts receivable
Long-term equity investment
43,500,226.82
896,193,102.99
45,128,539.14
898,086,492.34
Real estate for Investment
Fixed assets
899,110,769.95
103,139,963.34
922,704,199.55
106,219,049.50
Engineering under construction
45,469,004.88
38,117,555.88
Engineering goods
5,127,704.53
2,528,232.88
Liquidation of fixed assets
Production biology assets
Oil and gas assets
Intangible assets
151,965,753.12
38,197,339.86
154,395,927.44
39,152,640.11
Development expenses
3,386,156.81
3,386,156.81
4,010,294.70
2,460,860.10
Goodwill
103,040,497.85
103,040,497.85
Long-term deferred and prepaid expenses
5,661,213.97
5,642,572.45
Assets with deferred income taxes
18,436,025.69
10,235,657.18
31,720,956.31
24,462,136.75
Other non-current assets
Subtotal of non-current assets
1,284,491,967.08
1,059,946,833.64
1,313,963,577.16
1,077,055,979.76
Total of assets
2,805,798,306.10
2,337,907,992.74
2,923,813,250.23
2,463,098,346.38
Current liabilities:
Short-term loans
280,704,625.00
236,293,975.00
520,714,775.00
476,299,225.00
Loans from central banks
Absorption of deposits and due from banks
Borrowed capital
Tradable financial liability
Notes payable
30,000,000.00
30,000,000.00
Accounts payable
158,475,066.19
98,090,030.87
159,486,983.56
114,072,354.87
Deposit receivable
11,822,889.75
3,791,503.58
12,802,764.02
2,872,035.13
Selling of repurchased financial assets
Payable formality fees and commissions
Payroll payable
21,683,020.23
14,588,252.03
33,458,734.45
16,598,171.56
Tax payable
62,867,707.95
4,341,313.11
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
184,879,632.81
540,573,896.46
150,836,568.52
412,814,666.41
Payable reinsurance payments
Reserve for insurance contracts
Acting trading securities
Acting underwriting securities
Non-current liabilities due within one year
10,400,000.00
10,000,000.00
10,400,000.00
10,000,000.00
7The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Other current liabilities
Total of current liabilities
763,364,925.94
937,699,145.06
967,373,865.59
1,048,380,864.75
Non-current liabilities
Long-term loan
100,700,000.00
100,000,000.00
100,700,000.00
100,000,000.00
Securities payable
Long-term accounts payable
Special accounts payable
Deferred profit
20,670,741.87
8,086,815.06
19,300,344.26
10,266,816.45
Anticipation liability
Liabilities with the deferred income taxes
2,232,733.74
1,067,195.71
1,914,761.87
749,223.84
Other non-current liabilities
Subtotal of non-current liabilities
123,603,475.61
109,154,010.77
121,915,106.13
111,016,040.29
Total of liabilities
886,968,401.55
1,046,853,155.83
1,089,288,971.72
1,159,396,905.04
Owners' equity (or shareholders’ equities):
Paid-up capital (or share capital)
306,035,482.00
306,035,482.00
306,035,482.00
306,035,482.00
Capital reserve
439,116,675.07
429,927,478.39
437,314,834.44
428,125,637.76
Minus: treasury share
57,143,780.47
57,143,780.47
15,798,067.52
15,798,067.52
Surplus reserve
353,298,521.02
233,653,771.24
353,298,521.02
233,653,771.24
General risk reserve
Undistributed profit
827,871,183.69
378,581,885.75
711,151,149.38
351,684,617.86
Conversion margin in foreign currency statement
-13,450,759.90
-13,466,039.91
Subtotal of equities attributable to the owners of parent company
1,855,727,321.41
1,291,054,836.91
1,778,535,879.41
1,303,701,441.34
Equities of the minority of shareholders
63,102,583.14
55,988,399.10
Subtotal of owners’ equities
1,918,829,904.55
1,291,054,836.91
1,834,524,278.51
1,303,701,441.34
Total of liabilities and owners’ equities
2,805,798,306.10
2,337,907,992.74
2,923,813,250.23
2,463,098,346.38
4.2 Profit Statement
Prepared by: Livzon Pharmaceutical Group Inc. January to March 2009 Unit :( RMB) Yuan
Amount in this period
Amount in previous period
Item
Consolidation
Parent Company
Consolidation
Parent Company
1. Total operating income
540,653,189.01
207,378,731.35
524,489,804.32
181,715,772.65
Including: operating income
540,653,189.01
207,378,731.35
524,489,804.32
181,715,772.65
Interests income
Earned premium
Formality fees and commission incomes
II. Total operating cost
433,445,367.18
202,580,325.50
432,835,740.15
149,982,728.13
Including: operating cost
259,107,179.83
116,572,536.77
307,534,701.84
93,570,811.13
Interests payment
Formality fees and commission payment
Refunded premium
8The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Net amount for compensation payment
Net amount withdrawn for the reserve of insurance contracts
Payments for the policy bonus
Amortized Reinsurance Expenditures
Operating tax and surtax
1,252,480.87
16,500.00
828,403.70
30,000.00
Sales expense
112,449,501.89
59,609,035.44
76,912,448.03
37,250,657.48
Management expense
48,218,681.26
17,793,869.67
43,199,564.60
17,678,631.49
Financial expense
7,579,333.59
6,961,531.14
-612,412.12
-403,647.04
Loss from asset depreciation
4,838,189.74
1,626,852.48
4,973,034.10
1,856,275.07
Plus: returns from the changes of fair values (the loss is listed beginning with “-”).
109,911,654.77
97,808,992.640
-53,833,834.58
-22,842,357.70
Investment returns (the loss is listed beginning with “-”).
-75,805,840.59
-70,928,159.200
33,059,094.86
125,254,632.79
Including: the investment returns from the associated enterprises and joint enterprises
-1,628,312.32
-1,893,389.350
-946,976.740
-775,367.60
Profits form currency exchange (the loss is listed beginning with “-”).
III. Operating profit (the loss is listed beginning with “-”)
141,313,636.01
31,679,239.29
70,879,324.45
134,145,319.61
Plus : non-operating income
757,488.63
80,001.39
2,120,807.04
19,434.02
Minus: non-operating payments
107,246.14
3,500.00
215,608.18
6,378.84
Including: loss in the disposal of non-current assets
10,115.13
0.00
32,595.74
0.00
IV. Total profit (the loss is listed beginning with “-”)
141,963,878.50
31,755,740.68
72,784,523.31
134,158,374.79
Minus: income tax expense
18,520,444.09
4,858,472.79
16,943,281.96
7,552,834.92
V. Net profit (the loss is listed beginning with “-”)
123,443,434.41
26,897,267.89
55,841,241.35
126,605,539.87
Net profit attributable to the owners of parent company
116,720,034.31
26,897,267.89
51,598,108.71
126,605,539.87
Profit and loss of the minority of shareholders
6,723,400.10
4,243,132.64
VI. Profit per share:
(I) Basic profit per share
0.390
0.17
(I) Diluted profit per share
0.390
0.17
4.3 Cash flow statement
Prepared by: Livzon Pharmaceutical Group Inc. January to March 2009 Unit :( RMB) Yuan
Amount in this year
Amount in previous year
Item
Consolidation
Parent Company
Consolidation
Parent Company
I. Cash flows from operating activities
Cash received from sales of goods or rendering of services
546,256,035.84
195,928,320.78
386,814,688.99
167,425,659.15
Net increase from client deposits and deposits from other banks
9The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Net increase from the loans of central banks
Net increase from the loans of other financial institutions
Cash received from the premium of original insurance contracts
Net cash amount received from the reinsurance business
Net increase from receivable deposits from the insured and investments
Net increase from disposal of tradable financial assets
Cash from receiving the interests, formality fees and commissions
Net increase from the loans of banks
Net increase from the repurchase business capitals
Tax refunding
3,532,720.47
425,021.02
Cash received related to other operating activities
14,453,498.06
19,381,258.88
7,018,918.45
6,940,033.95
Subtotal of cash inflow from the operating activities
564,242,254.37
215,309,579.66
394,258,628.46
174,365,693.10
Cash paid for purchase of goods or receiving of services
148,560,350.32
120,251,945.23
134,365,201.21
79,171,692.07
Net increase of client loans and advance money
Net increase of deposits in central banks and other banks
Cash paid for the compensation about original insurance contracts
Cash paid for the interests, formality fees and commissions
Cash paid for the bonus of policies
Cash paid to and on behalf of employees
63,511,730.88
19,039,495.83
68,720,747.59
19,917,570.91
Tax payments
80,889,809.51
20,611,064.86
67,217,706.77
32,098,298.75
Other cashes paid to operating activities
102,347,591.28
45,365,913.40
90,008,657.23
36,836,061.51
Subtotal of cash outflow from operating activities
395,309,481.99
205,268,419.32
360,312,312.80
168,023,623.24
Net cash flow from operating activities
168,932,772.38
10,041,160.34
33,946,315.66
6,342,069.86
II. Cash flow from investment activities:
Cash received from disposal of investments
119,019,666.02
109,167,422.79
39,223,634.94
38,553,119.73
Cash received from investment returns
701,148.95
92,701,523.18
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
-11,645.00
332,517.44
94,617.44
Net cash amount received from
10The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
the disposal of subcompanies and other business units
Cash received related to other investment activities
14,437.60
Subtotal of cash inflow from the investment activities
119,008,021.02
109,181,860.39
40,257,301.33
131,349,260.35
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets
19,600,881.94
939,105.13
20,010,309.43
4,709,839.50
Cash paid to acquire investments
16,069,441.94
14,658,426.64
Net increase from the mortgage loan
Net cash amount paid to acquire the subcompanies and other operating units
Cash paid related to other investment activities
3,500.00
3,500.00
Subtotal of cash outflow from investment activities
19,604,381.94
942,605.13
36,079,751.37
19,368,266.14
Net amount of cash flow received from the investment activities
99,403,639.08
108,239,255.26
4,177,549.96
111,980,994.21
III. Cash flow from financing activities:
Cash received by investors
Including: cash received from the investment of minority of shareholders in the subcompanies
Cash from loans
49,730,000.00
49,730,000.00
389,228,147.00
320,062,977.00
Cash received from the issuing of bonds
Cash received related to other financing activities
Subtotal of cash inflow from the financing activities
49,730,000.00
49,730,000.00
389,228,147.00
320,062,977.00
Repayments of loans
260,000,000.00
120,211,433.98
319,737,363.71
338,022,664.40
Cash paid for distribution of dividends, profits and repaymentof interests
6,822,293.33
6,822,293.33
8,523,875.18
7,057,582.67
Including: the dividends and profits paid to the minority of shareholders by the subcompanies
Cash payments related to other financing activities
41,343,552.95
41,343,552.95
Sub-total of cash outflow from the financing activities
308,165,846.28
168,377,280.26
328,261,238.89
345,080,247.07
Net cash flow from financing activities
-258,435,846.28
-118,647,280.26
60,966,908.11
-25,017,270.07
IV. Effect of foreign exchange fluctuation on cash and cash equivalents
-30,190.69
-18,419.34
-1,129,662.47
-300,350.17
V. Net increase of cash and cash equivalents
9,870,374.49
-385,284.00
97,961,111.26
93,005,443.83
Plus: Balance of cash and cash equivalents at the beginning of the period
540,183,900.36
465,301,653.09
282,663,137.40
214,055,704.00
11The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
VI Balance of cash and cash equivalents at the end of the period
550,054,274.85
464,916,369.09
380,624,248.66
307,061,147.83
4.4 Auditing of the report
The auditing opinion:
Full text of auditing report
Livzon Pharmaceutical Group Inc.
Chairman: Zhu Baoguo
April 21, 2009
12The 2009 First Quarterly Report of Livzon Pharmaceutical Group Inc.
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