The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
1
The 2010 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 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 third quarterly report has not been audited by any accountants firms.
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.
1.6 This Annual 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
September 30, 2010 September 30, 2009 Increase or decrease
Total assets (RMB Yuan) 3,579,166,578.33 3,124,376,784.70 14.56%
Owners’ equity attributable to the shareholders of
listed company (RMB Yuan) 2,429,435,254.51 2,149,084,836.03 13.05%
Share capital (Share) 295,721,852 295,721,852 -
Net asset per share attributable to the shareholders of
listed company (RMB Yuan/share) 8.22 7.27 13.07%
July to September
2010
Increase or decrease
compared with the
same period of
previous year (%)
January to September
2010
Increase or decrease
compared with the
same period of
previous year (%)
Total operating income(RMB Yuan) 678,660,658.55 1.10% 2,001,430,248.29 6.41%
Net profit attributable to shareholders of listed
company(RMB Yuan) 87,262,656.82 -14.27% 328,742,889.80 -5.98%
Net cash flows from operating activities (RMB Yuan) - - 428,968,952.49 19.01%
Net cash flows per share from operating activities
(RMB Yuan/share) - - 1.45 18.85%
Basic profit per share (RMB Yuan/share) 0.30 -9.09% 1.11 -4.31%
Diluted profit per share (RMB Yuan/share) 0.30 -9.09% 1.11 -4.31%
Weighed yield rate of net asset（%） 3.81% Down 1.55 percentage
points 14.36% Down 4.07 percentag
e points
Weighed yield rate of net assets after deduction of
non-recurring profit and loss（%） 3.48% Down 1.86 percentage
points 13.77% Down 1.61 percentag
e pointsThe 2010 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 (2009) (Zheng Jian Hui Gong
Gao (2009) 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
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 1,761,136.00
Governmental allowance accrued to the current profit and loss 8,069,351.74
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
5,883,571.95
Other net non-operating income and payment except the above items -452,825.20
Subtotal 15,261,234.49
Minus: effect of income tax 1,299,568.52
Minus: Non-recurring profit and loss attributable to the minority of shareholders 540,088.09
Total of non-recurring profit and loss 13,421,577.88
Total quantity of shareholders at the end of report
period The shareholder quantity amounted to 18,278 (including 8764 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 77,510,167 RMB Common share
2 Tiancheng Industry Co., Ltd 44,537,733 Domestically-listed shares for
overseas investors
3 First Shanghai Securities Co., Ltd 11,351,020 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 –Boshi New Growth Stock-type
Securities Investment Fund 4,999,716 RMB Common share
7 Bank of Communications – Greatwall Jiufu Core Growth
Stock-type Securities Investment Fund (LOF) 4,831,520 RMB Common share
8 Industrial and Commercial Bank of China – Efunds Value
Selection Stock-type Securities Investment Fund 4,279,961 RMB Common share
9 National Social Security Fund 104 Portfolio 3,500,000 RMB Common share
10 Bank of Communications - Penghua China 50 Open-end
Securities Investment Fund 3,200,000 RMB Common shareThe 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
3
§3 Major events
3.1 Great changes and reasons of main financial statement items and financial indexes of the Company
√ Applicable □ Inapplicable
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. Items in the Balance Sheet: 1. the notes receivable decreased by RMB 200.3691 million Yuan, down 49.50% compared with the
beginning of report period. The main cause is the payment of due notes within the report period; 2. The advance money increased by
RMB 62.4101 million Yuan, up 93.87% compared with the beginning of report period. The main cause is the increase of advance
money of Guangda Pharmaceutical for the materials within the report period; 3. Other accounts receivable increased by RMB 24.7186
million Yuan, up 118.05% compared with the beginning of report period. The main cause is the increase of advance money for
company business within the report period; 4. The inventory increased by RMB 136.9901 million Yuan, up 40.37% and the main
cause is the increase of raw materials, packaging materials and inventory commodities of Guangda Pharmaceutical within the report
period; 5. The engineering under construction increased by RMB 211.8256 million Yuan, up 203.99% compared with the beginning of
report period. The main cause is the construction of Livzon Industrial Park and the expansion of Fuxing Company; 6. The engineering
goods increased by RMB 17.7961 million Yuan, up 529.60% compared with the beginning of report period. The main cause is the
increase in purchasing the equipment and advance money for engineering by No. 2 bottle packaging plant of Limin Pharmaceutical;
II. The items in the Profit Statement from the year beginning to the end of report period: 1. the financial expense decreased by RMB
11.1219 million Yuan, down 95.73% compared with the same period of previous year. The main cause is the decrease of interests
payment for bank loans; 2. The loss from asset depreciation decreased by RMB 23.6714 million Yuan, down 69.47%. The main cause
is the decrease of withdrawn depreciation reserve for fixed assets and inventory depreciation reserve of the Company; 3. The profits
from the changes of fair values decreased by RMB 121.1495 million Yuan, down 96.00%; The investment returns increased by RMB
65.9128 million Yuan, up 98.38%. The main cause is that the Company sold the tradable financial assets in the same period of previous
year, but did not sell any tradable financial assets in this period; 5. The non-operating incomes increased by RMB 7.7968 million Yuan,
up 197.47%. The main cause is the increase of received governmental allowance.
III. The items in the Cash Flow Statement: 1. the net amount of cash flow from operating activities increased by RMB 68.5070 million
Yuan, up 19.01% 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 decreased by RMB 344.8196
million Yuan, down 571.29% compared with the same period of previous year. The main reason is that the cash paid for the investment
activities has greatly decreased; 3. The net amount of cash flow received related to financing activities decreased by RMB 384.4842
million Yuan, down 99.03% compared with the same period of previous year. The main reason is that the loans from banks have
greatly decreased.The 2010 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
(I) Commitments
1. In 2002, 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).
Since 2009, the company has begun to sell the products and pay a specified percentage of sales volume to Yiyang as a commission in
accordance with the 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.
Since 2008, the company has begun to sell the products and pay a specified royalty to LG Company in accordance with the agreement.
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
The controlling shareholder Joincare Pharmaceutical Group Industry Co., Ltd made the following commitments in the previous year: 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.
During the report period, Joincare did not decrease its shareholding quantity of this company.
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 Kunlun Energy 6,939,263.16 1,500,000 12,978,254.70 24.51% 146,414.85
2 Stock 00152 Shenzhen
International 9,959,941.90 17,000,000 8,954,391.30 16.91% 1,882,445.91
3 Stock 00883
China National
Offshore Oil
Corporation
2,829,445.17 560,000 7,272,658.18 13.73% 729,531.04
4 Stock 01880 Baili Company 2,314,476.85 428,000 5,861,439.20 11.07% 1,744,141.46
5 Stock 02007 Phoenix Island 20,586,328.86 2,450,000 5,352,342.77 10.11% 1,078,918.53The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
5
3.5.2 Shareholding particulars of other listed companies
√ Applicable □ Inapplicable
Unit :( RMB) Yuan
3.5.3 Routine associated transactions
√ Applicable □ Inapplicable
3.5.3.1 Purchase of commodities
Unit :( RMB) Yuan
3.5.3.2 Sales of commodities
Unit :( RMB) Yuan
6 Stock 00438 Rainbow group 6,172,543.54 4,560,000 5,236,894.15 9.89% 1,068,926.93
7 Stock 00390
China Railway
Engineering
Group Co.
1,582,977.97 314,000 1,648,506.03 3.11% 303,951.42
8 Stock 01688 Alibaba 918,429.35 78,000 1,088,411.88 2.06% 40,288.81
9 Stock 01186
China Railway
Construction
Corporation
1,063,912.75 114,000 1,027,691.26 1.94% 74,157.57
10 Stock 00968 Little Sheep 588,004.12 212,000 961,064.37 1.81% 105,012.78
Other securities investment at the end of
this period 2,730,875.33 - 2,574,566.48 4.86% 166,837.97
Profit and loss of sold Securities investment
during the report period - - - - 0.00
Total 55,686,199.00 - 52,956,220.32 100% 7,340,627.27
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
2,450,179.00 0.002% 8,004,997.60 120,015.00 -289,836.12
000963
Huadong
Medicine
Co., Ltd
39,851.86 0.02112% 2,664,366.90 30,214.47 487,094.35
Total 2,490,030.86 10,669,364.50 150,229.47 197,258.23
Associated party January to September 2010 January to September 2009
Shenzhen Haibin Pharmaceutical Co., Ltd 8,451,537.99 2,720,085.43
Guangdong Blue Treasure Pharmaceutical Co. Ltd 3,413.33 15,011.36
Joincare Pharmaceutical Group Industry Co., Ltd 14,974.36 329,641.03
Jiaozuo Joincare Pharmaceutical Group Industry Co.,
Ltd 152,921,956.54 98,139,743.70
Shenzhen Taitai Pharmaceutical Company Limited 153,384.00 -
Total 161,545,266.22 101,204,481.52
Associated party January to September 2010 January to September 2009
Guangdong Blue Treasure Pharmaceutical Co. Ltd 4,310.07 12,302,442.91
Zhuhai Joincare Pharmaceutical Group Industry Co.,
Ltd 2,492.85
Shenzhen Taitai Pharmaceutical Company Limited 16,683.76 71,794.87The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
6
3.5.3.3 Provision of labors
Unit :( RMB) Yuan
3.5.3.4 Leased 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 List of Activities in which the Company receives the investigation, communication and interview, etc
during the report period
Total 20,993.83 12,376,730.63
Associated party January to September 2010 January to September 2009
Guangdong Blue Treasure Pharmaceutical Co. Ltd 4,055,639.46 5,103,330.60
Associated party January to September 2010 January to September 2009
Zhuhai Joincare Pharmaceutical Group Industry Co.,
Ltd 77,571.00 77,961.00
Health Pharmaceutical (China) Co., Ltd 74,961.00 74,961.00
Total 152,532.00 152,922.00
Reception date Reception
place
Reception
mode
Objects Discussion topics and
provided materials
July 12, 2010
Headquarters Local
investigation
Fortune SGAM Fund Management
Co., Ltd
Operation status of the Company;
provide no text materials
Headquarters Local
investigation
Essence Securities Co. Ltd
Operation status of the Company;
provide no text materials
Headquarters Local
investigation
E Fund Management Co., Ltd
Operation status of the Company;
provide no text materials
Headquarters Local
investigation
Yimin Asset Management Co., Lt
d
Operation status of the Company;
provide no text materials
July 16, 2010
Headquarters Local
investigation
Wanlian Securities Co., Lt
Operation status of the Company;
provide no text materials
July 22, 2010
Headquarters Local
investigation
Alltrust Insurance Co.,Ltd
Operation status of the Company;
provide no text materials
July 29, 2010
Headquarters Local
investigation
Orient Securities Asset
Management Company Limited
Operation status of the Company;
provide no text materials
July 30, 2010
Headquarters Local
investigation
Industrial Securities Co.,
Ltd.
Operation status of the Company;
provide no text materials
July 30, 2010
Headquarters Local
investigation
GTJA Allianz Fund management
Limited Company
Operation status of the Company;
provide no text materials
August 26, 2010
Headquarters Local
investigation
VL Asset Management Limited
Operation status of the Company;
provide no text materials
September 8, 2010
Headquarters Local
investigation Guotai Asset Management Co., Ltd Operation status of the Company;
provide no text materials
September 8, 2010
Headquarters
Local
investigation
Prudential Financial
Securities Investment Trust
Enterprise
Operation status of the Company;
provide no text materials
September 8, 2010
Headquarters Local
investigation
KGI Asia Ltd
Operation status of the Company;
provide no text materialsThe 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
7
3.6 Investments in derivative products
□Applicable √Inapplicable
3.6.1 Holding particulars of investments in derivative products at the end of report period
□ Applicable √ Inapplicable
§4 Appendix
4.1 Balance Sheet
Prepared by: Livzon Pharmaceutical Group Inc. September 30, 2010 Unit :( RMB) Yuan
September 16,
2010
Headquarters Local
investigation
UBS SDIC Fund Management Co.,
Ltd
Operation status of the Company;
provide no text materials
September 20,
2010
Headquarters Local
investigation
Beijing Office of Hillhouse
Capital Management
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 727,362,880.54 532,838,204.27 588,531,959.19 449,132,586.01
Tradable financial assets 52,956,220.31 48,888,580.51
Notes receivable 204,378,437.00 56,939,242.22 404,747,523.90 61,779,674.18
Accounts receivable 462,965,894.37 163,708,268.48 372,643,326.56 168,883,426.67
Accounts receivable 128,898,203.82 5,822,033.77 66,488,125.52 6,569,662.89
Advance money
Interests receivable
Dividend receivable 45,658,030.81 385,341,126.97 20,939,387.04 441,262,083.31
Other receivables 476,313,118.55 55,853,381.61 339,323,059.73 60,082,198.13
Non-current assets due within one
year
Other current assets
Total of current assets 2,098,532,785.40 1,200,502,257.32 1,841,561,962.45 1,187,709,631.19
Non-current assets:
Saleable financial assets 10,669,364.50 10,669,364.50 12,906,087.63 12,906,087.63
Investment held to the maturity
date
Long-term accounts receivable
Long-term equity investment 45,535,280.32 1,130,615,127.67 48,416,987.20 1,069,461,516.10
Real estate for Investment
Fixed assets 778,451,902.90 89,094,256.59 820,918,264.05 96,595,498.73
Engineering under construction 315,665,368.95 103,839,745.36
Engineering goods 21,156,397.03 3,360,288.46
Liquidation of fixed assets
Production biology assets
Intangible assets 166,602,730.86 34,492,123.49 146,258,546.38 33,783,407.53
Development expenses 8,600,225.13 6,878,240.83 7,369,974.29 5,647,989.99
Goodwill 103,040,497.85 103,040,497.85The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
8
Long-term deferred and prepaid
expenses 6,993,387.45 5,461,213.29
Assets with deferred income taxes 23,918,637.94 11,377,782.94 31,243,217.74 17,880,772.42
Other non-current assets
Subtotal of non-current assets 1,480,633,792.93 1,283,126,896.02 1,282,814,822.25 1,236,275,272.40
Total of assets 3,579,166,578.33 2,483,629,153.34 3,124,376,784.70 2,423,984,903.59
Current liabilities:
Short-term loans 225,079,516.40 87,695,900.00 218,612,242.03 96,633,600.00
Tradable financial liability
Notes payable
Accounts payable 236,387,868.48 177,813,084.33 182,395,197.95 133,489,640.22
Deposit receivable 11,384,508.45 3,665,565.54 16,482,054.51 3,460,327.41
Payroll payable 37,329,099.59 16,557,906.58 46,213,344.69 19,934,903.75
Tax payable 63,011,214.48 13,378,886.34 77,569,713.49 13,162,107.64
Interests payable
Dividend payable 2,531,984.46 20,174.46 2,531,984.01 20,174.01
Other accounts payable 300,340,891.94 686,856,131.20 233,002,793.34 691,985,512.47
Non-current liabilities due within
one year 20,400,000.00 20,000,000.00 400,000.00
Other current liabilities
Total of current liabilities 896,465,083.80 1,005,987,648.45 777,207,330.02 958,686,265.50
Non-current liabilities
Long-term loan 104,383,544.07 70,000,000.00 90,700,000.00 90,000,000.00
Deferred profit 27,807,184.26 9,608,421.41 27,658,099.70 9,094,359.50
Anticipation liability
Liabilities with the deferred
income taxes 2,686,965.54 1,226,900.05 3,352,811.95 1,683,916.84
Other non-current liabilities
Subtotal of non-current liabilities 134,877,693.87 80,835,321.46 121,710,911.65 100,778,276.34
Total of liabilities 1,031,342,777.67 1,086,822,969.91 898,918,241.67 1,059,464,541.84
Owners' equity (or shareholders’
equities):
Paid-up capital (or share capital) 295,721,852.00 295,721,852.00 295,721,852.00 295,721,852.00
Capital reserve 348,511,296.30 339,167,173.62 350,946,175.64 341,756,978.96
Minus: treasury share
Special reserve
Surplus reserve 401,456,345.99 250,810,202.23 401,456,345.99 250,810,202.23
Profit in this year 328,742,889.80 79,233,904.82
General risk reserve
Undistributed profit 1,070,352,128.14 431,873,050.76 1,114,710,405.94 476,231,328.56
Conversion margin in foreign
currency statement -15,349,257.72 -13,749,943.54
Subtotal of equities attributable to
the owners of parent company 2,429,435,254.51 1,396,806,183.43 2,149,084,836.03 1,364,520,361.75
Equities of the minority of
shareholders 118,388,546.15 0.00 76,373,707.00
Subtotal of owners’ equities 2,547,823,800.66 1,396,806,183.43 2,225,458,543.03 1,364,520,361.75
Total of liabilities and owners’
equities 3,579,166,578.33 2,483,629,153.34 3,124,376,784.70 2,423,984,903.59The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
9
4.2 Profit statement in this report period
Prepared by: Livzon Pharmaceutical Group Inc. July to September 2010 Unit :( RMB) Yuan
Item
Amount in this period Amount in previous period
Amount in this period Amount in previous
period Amount in this period Amount in previous
period
I. Total operating income 678,660,658.55 251,352,303.76 671,244,502.72 231,398,125.80
Including: operating income 678,660,658.55 251,352,303.76 671,244,502.72 231,398,125.80
II. Total operating cost 569,733,264.34 233,882,222.33 544,634,602.53 230,278,350.72
Including: operating cost 325,112,741.94 118,338,597.41 325,401,654.98 117,533,837.92
Operating tax and surtax 2,183,720.32 60,000.00 1,405,410.21 45,000.00
Sales expense 173,773,199.71 94,891,867.05 151,742,616.07 90,611,165.46
Management expense 65,477,030.24 22,009,090.31 55,458,307.61 23,903,798.29
Financial expense -273,851.84 -2,567,074.82 954,329.71 -1,878,927.31
Loss from asset depreciation 3,460,423.97 1,149,742.38 9,672,283.95 63,476.36
Plus: returns from the changes of
fair values (the loss is listed
beginning with “-”).
7,199,732.61 -7,413,200.41
Investment returns (the loss is
listed beginning with “-”). -700,312.81 16,538,342.18 7,303,174.03 31,543,513.20
Including: the investment returns
from the associated enterprises
and joint enterprises
-873,796.85 -572,301.36 -870,890.13 -1,324,483.78
III. Operating profit (the loss is
listed beginning with “-”) 115,426,814.01 34,008,423.61 126,499,873.81 32,663,288.28
Plus : non-operating income 1,197,442.98 440,253.04 1,263,872.92 212,361.71
Minus: non-operating payments 881,852.91 225,181.09 1,368,874.83
Including: loss in the disposal of
non-current assets 49,531.46 602.50 693,239.98
IV. Total profit (the total loss is
listed beginning with “-”) 115,742,404.08 34,223,495.56 126,394,871.90 32,875,649.99
Minus: income tax expense 20,203,089.72 2,565,122.67 15,843,164.68 -125,752.50
V. Net profit (the loss is listed
beginning with “-”) 95,539,314.36 31,658,372.89 110,551,707.22 33,001,402.49
Net profit attributable to the
owners of parent company 87,262,656.82 31,658,372.89 101,787,416.13 33,001,402.49
Profit and loss of the minority of
shareholders 8,276,657.54 8,764,291.09
VI. Profit per share:
(I) Basic profit per share 0.30 0.33
(II) Diluted profit per share 0.30 0.33
VII. Other comprehensive profit -687,351.59 167,669.49 -483,841.93 -460,989.50
VIII. Total amount of
comprehensive profit 94,851,962.77 31,826,042.38 110,067,865.29 32,540,412.99
Total amount of comprehensive
profit attributable to the owners of
parent company
86,575,305.23 31,826,042.38 101,303,574.20 32,540,412.99
Total amount of comprehensive
profit attributable to the minority
of shareholders
8,276,657.54 8,764,291.09The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
10
4.3 Profit statement from year beginning to the end of report period
Prepared by: Livzon Pharmaceutical Group Inc. January to September 2010 Unit :( RMB) Yuan
Item
Amount in this year Amount in previous year
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 2,001,430,248.29 733,316,600.60 1,880,951,358.95 697,902,398.71
Including: operating income 2,001,430,248.29 733,316,600.60 1,880,951,358.95 697,902,398.71
II. Total operating cost 1,600,624,741.14 664,604,382.38 1,512,703,211.49 690,198,609.57
Including: operating cost 960,876,870.69 348,672,296.07 883,560,597.75 367,878,312.72
Operating tax and surtax 5,211,349.86 135,000.00 4,393,087.68 106,500.00
Sales expense 458,973,330.76 253,533,625.31 412,422,913.02 236,869,515.93
Management expense 164,666,273.27 62,179,701.32 166,636,441.36 69,819,169.76
Financial expense 495,668.76 -2,382,423.94 11,617,530.31 9,874,095.92
Loss from asset depreciation 10,401,247.80 2,466,183.62 34,072,641.37 5,651,015.24
Plus: returns from the changes of
fair values (the loss is listed
beginning with “-”).
5,048,295.93 126,197,836.99 97,808,992.64
Investment returns (the loss is
listed beginning with “-”). -1,085,288.89 15,214,484.59 -66,998,058.40 54,344,657.59
Including: the investment returns
from the associated enterprises
and joint enterprises
-2,881,706.89 -2,046,388.42 -1,943,158.70 -4,177,519.74
III. Operating profit (the loss is
listed beginning with “-”) 404,768,514.19 83,926,702.81 427,447,926.05 159,857,439.37
Plus : non-operating income 11,745,081.41 7,452,762.30 3,948,327.62 1,046,363.18
Minus: non-operating payments 2,367,418.87 1,063,121.01 2,579,815.61 98,010.14
Including: loss in the disposal of
non-current assets 548,263.58 5,037.48 1,484,508.53 94,409.94
IV. Total profit (the total loss is
listed beginning with “-”) 414,146,176.73 90,316,344.10 428,816,438.06 160,805,792.41
Minus: income tax expense 60,806,689.52 11,082,439.28 54,801,849.49 5,267,419.79
V. Net profit (the loss is listed
beginning with “-”) 353,339,487.21 79,233,904.82 374,014,588.57 155,538,372.62
Net profit attributable to the
owners of parent company 328,742,889.80 79,233,904.82 349,642,291.68 155,538,372.62
Profit and loss of the minority of
shareholders 24,596,597.41 24,372,296.89
VI. Profit per share:
(I) Basic profit per share 1.11 1.16
(II) Diluted profit per share 1.11 1.16
VII. Other comprehensive profit -4,189,112.99 -2,589,798.81 3,831,988.91 4,058,387.74
VIII. Total amount of
comprehensive profit 349,150,374.22 76,644,106.01 377,846,577.48 159,596,760.36
Total amount of comprehensive
profit attributable to the owners of
parent company
324,553,776.81 76,644,106.01 353,474,280.59 159,596,760.36
Total amount of comprehensive
profit attributable to the minority
of shareholders
24,596,597.41 24,372,296.89The 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
11
4.4 Cash flow statement from year beginning to the end of report period
Prepared by: Livzon Pharmaceutical Group Inc. January to September 2010 Unit :( RMB) Yuan
Item
Amount in this period Amount in previous period
Consolidation Parent Company Consolidation Parent Company
I. Cash flows from operating
activities
Cash received from sales of goods
or rendering of services 1,979,990,574.16 760,946,546.83 1,671,756,438.90 689,394,945.15
Tax refunding 7,770,752.23 5,504,469.40
Cash received related to other
operating activities 51,554,793.18 88,727,358.95 50,328,445.39 55,348,795.35
Subtotal of cash inflow from the
operating activities 2,039,316,119.57 849,673,905.78 1,727,589,353.69 744,743,740.50
Cash paid for purchase of goods
or receiving of services 700,403,831.69 312,967,842.24 548,928,794.62 326,835,590.86
Cash paid to and on behalf of
employees 186,935,903.91 59,813,731.19 175,175,676.13 56,484,570.64
Tax payments 252,277,560.94 74,794,377.77 274,162,311.12 70,393,277.23
Other cashes paid to operating
activities 470,729,870.54 257,913,325.95 368,860,640.08 180,794,353.32
Subtotal of cash outflow from
operating activities 1,610,347,167.08 705,489,277.15 1,367,127,421.95 634,507,792.05
Net cash flow from operating
activities 428,968,952.49 144,184,628.63 360,461,931.74 110,235,948.45
II. Cash flow from investment
activities:
Cash received from disposal of
investments 124,019,666.02 242,361,614.28
Cash received from investment
returns 828,598.31 22,802,164.87 344,911.19 121,231.19
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
2,691,640.04 443,084.18 1,500.00
Cash received related to other
investment activities 13,240,850.29
Subtotal of cash inflow from the
investment activities 3,520,238.35 22,802,164.87 138,048,511.68 242,484,345.47
Cash paid to acquire and construct
fixed assets, intangible assets and
other long-term assets
287,093,072.00 19,549,311.57 77,686,974.39 3,059,526.30
Cash paid to acquire investments 888,720.00 55,088,720.00
Cash paid related to other
investment activities 26,894.96 3,500.00 3,500.00
Subtotal of cash outflow from
investment activities 287,981,792.00 74,664,926.53 77,690,474.39 3,063,026.30
Net amount of cash flow received
from the investment activities -284,461,553.65 -51,862,761.66 60,358,037.29 239,421,319.17
III. Cash flow from financing
activities:
Cash received from investors 9,800,000.00 400,000.00
Including: cash received from the
investment of minority of
shareholders in the subcompaniesThe 2010 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
12
4.5 Auditing report
This financial statement has not been audited.
Livzon Pharmaceutical Group Inc.
Chairman: Zhu Baoguo
October 23, 2010
Loans received from
subcompanies 46,252,125.80
Cash from loans 383,293,855.32 205,882,550.00 390,867,287.83 295,127,733.83
Cash received from the issuing of
bonds
Cash received related to other
financing activities 1,191,499.75 1,187,447.18
Subtotal of cash inflow from the
financing activities 394,285,355.07 253,322,122.98 391,267,287.83 295,127,733.83
Repayments of loans 339,961,332.82 213,418,400.00 640,912,132.86 570,167,284.19
Cash paid for distribution of
dividends, profits and repayment
of interests
56,751,840.99 49,601,456.50 52,433,559.48 45,016,702.95
Including: the dividends and
profits paid to the minority of
shareholders by the subcompanies
Cash payments related to other
financing activities 1,345,000.00 125,000.00 86,178,654.95 86,178,913.71
Sub-total of cash outflow from the
financing activities 398,058,173.81 263,144,856.50 779,524,347.29 701,362,900.85
Net cash flow from financing
activities -3,772,818.74 -9,822,733.52 -388,257,059.46 -406,235,167.02
IV. Effect of foreign exchange
fluctuation on cash and cash
equivalents
-1,476,812.24 -35,468.68 244,181.43 30,587.08
V. Net increase of cash and cash
equivalents 139,257,767.86 82,463,664.77 32,807,091.00 -56,547,312.32
Plus: Balance of cash and cash
equivalents at the beginning of the
period
558,262,596.74 418,389,049.61 540,183,900.36 465,301,653.09
VI Balance of cash and cash
equivalents at the end of the
period
697,520,364.60 500,852,714.38 572,990,991.36 408,754,340.77
