Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Full Text of the 2012 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 The first quarterly report has not been audited by any accountants firms.
1.3 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 End of previous Increase or
period Year decrease (%)
Total assets (RMB Yuan) 4,554,878,274.85 4,602,908,981.74 -1.04%
Owners’ equity attributable to the shareholders of
2,959,205,752.55 2,843,169,706.20 4.08%
listed company (RMB Yuan)
Total share capital (share) 295,721,852.00 295,721,852.00 0.00%
Net assets per share attributable to the
10.01 9.61 4.16%
shareholders of listed company (RMB Yuan/share)
End of this report Same period in Increase or
period previous year decrease (%)
Total operating income (RMB Yuan) 892,862,698.79 749,385,019.01 19.15%
Net profit attributable to the shareholders of listed
117,291,231.12 125,815,417.35 -6.78%
company (RMB Yuan)
Net cash flows from operating activities (RMB
133,979,956.38 118,304,818.20 13.25%
Yuan)
Net cash flows per share from operating activities
0.45 0.40 12.50%
(RMB Yuan/share)
Basic profit per share (RMB Yuan/share) 0.40 0.43 -6.98%
Diluted profit per share (RMB Yuan/share) 0.40 0.43 -6.98%
Weighed average yield rate of net assets (%) 4.04% 4.88% -0.84%
Weighed average yield rate of net assets after
3.78% 4.46% -0.68%
deduction of non-recurring profit and loss (%)
Items of non-recurring profit and loss
√ Applicable □ Inapplicable
Unit: RMB Yuan
Amount from the year
Remarks (if
Items of non-recurring profit and loss beginning to end of report
applicable)
period
Profit and loss in disposal of non-circulation assets -57,599.76
Governmental allowance accrued to the current profit and loss,
except those that are closely related to the normal operation 2,130,166.86
businesses of company, comply with the national policies, and are co
1
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
ntinuously granted based on the certain standard quota or certain
quantity
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
5,536,835.64
tradable financial liabilities as well as the investment returns in
disposal of tradable financial assets, tradable financial liabilities and
saleable financial assets
Other net non-operating income and payment except the above
419,862.60
items
Effect of the minority of shareholders’ equities -34,326.19
Effect of income tax -371,105.13
Total 7,623,834.02 -
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 at the end of The shareholder quantity of the company amounted to 29,329 (including
report period 8,212 B-share holders)
Shares held by top ten tradable shareholders without trading restriction
Quantity of tradable shares without
Shareholder name (full name) trading restriction at the end of report Type
period
Joincare Pharmaceutical Group Industry Co., Ltd 77,510,167 RMB common share
Domestically-listed
Tiancheng Industry Co., Ltd 50,660,052 shares for overseas
investors
Domestically-listed
First Shanghai Securities Co., Ltd 10,295,547 shares for overseas
investors
Domestically-listed
GAOLING FUND,L.P. 10,258,112 shares for overseas
investors
Agricultural Bank of China- Greatwall Anxin Return
6,250,020 RMB common share
Mixed Securities Investment Fund
Agricultural Bank of China – Penghua power growth
6,200,000 RMB common share
mixed securities investment funds
Shenzhen Haibin Pharmaceutical Co., Ltd 5,892,943 RMB common share
Bank of Communications- Great Wall Jiufu Core
4,829,286 RMB common share
Growth Stock-type Securities Investment Fund (LOF)
China Construction Bank – Gongyin Ruixin Bonus
2,887,435 RMB common share
Stock-type Securities Investment Fund
China Construction Bank - Greatwall Consumption
2,878,296 RMB common share
Value-added Stock-type Securities Investment Fund
§3 Major events
3.1 Great changes and reasons of main financial statement items and financial indexes of the
Company
√ Applicable □ Inapplicable
3.1.1 Major changes of items in balance sheet and reasons
2
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Amount at the
Amount at the Increase
beginning of
Item end of period or Cause
period (RMB
(RMB Yuan) decrease
Yuan)
During the report period, while purchasing from
outside, the company has employed the
Notes receivable 88,113,442.56 171,033,783.72 -48.48%
payment mode by endorsement of the
acceptance bills.
The new factory of Livzon Pharmaceutical
Engineering
factory is constructed, and the technical
under 398,970,230.66 148,841,628.16 168.05%
improvement project of Limin Pharmaceutical
construction
factory has increased relevant expenses.
Deposit During the report period, the deposit receivable
25,637,619.63 39,028,703.01 -34.31%
receivable is used for offsetting the accounts receivable.
Other current The first installment of short-term financing
200,000,000.00 400,000,000,.00 -50.00%
liabilities bonds in 2011 has become due.
3.1.2 Major change of items in Profit Statement and reasons
Amount in this Amount in
Change
Item period (RMB previous period Cause
rate
Yuan) (RMB Yuan)
The sales incomes have increased, and
Operating tax and
11,757,363.91 8,351,082.68 40.79% the city construction tax and educational
surtax
surtax have increased correspondingly.
The business investment has increased
Sales expense 320,103,016.74 174,436,383.41 83.51% due to the sales business expansion and
reform of sales mode.
During the report period, the interests
Financial expense -4,885,220.34 -1,365,483.72 257.76%
incomes have increased.
Returns from the The fair prices of tradable financial assets
changes of fair 4,971,946.09 1,541,484.96 222.54% have changed.
values
Part of tradable financial assets has been
347,088.76 -693,022.78 150.08%
Investment returns disposed of.
The governmental allowances that are
Non-operating 2,612,890.25 11,690,162.11 -77.65% accrued to current profit and loss have
income decreased.
3.1.3 Major change of items in cash flow Statement and reasons
Amount in this Amount in
Change
Item period (RMB previous period Cause
rate
Yuan) (RMB Yuan)
Cash received from sales The incomes from purchase of
of goods or rendering of 31.71% prescription medicines have increased
889,352,722.29 675,234,349.70
services due to the influence of sales reform.
The value-added tax, city construction
tax and educational surtax have
Tax payments 98,584,528.88 31.46%
129,595,034.42 increased due to the expansion of sales
scale of company.
The expense payment ratio has
Cash paid to other improved and the business expense of
82.01%
operating activities 340,933,100.04 187,318,033.83 sales has increased due to the sales
reform.
Cash received from 5647.16 Part of tradable financial assets has
1,116,870.13 19,433.44
investment returns % been disposed of.
3
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
During the report period, the company
Cash paid to acquire and
has paid the expenses for Ningxia Livzon
construct fixed assets,
53,807,149.52 297.48% Industrial Park project and technical
intangible assets and 213,873,211.70
improvement project of Limin
other long-term assets
Pharmaceutical Factory.
During the same period of previous year,
Dankang Company received the
Cash received by
- 9,800,000.00 -100.00% investments from Joincare, but the
investors
company has received no investments in
this period.
During the same period of previous year,
the foreign-currency loans have become
Cash from loans 24,405,000.00 59,215,460.00 -58.79%
due and exchanged, but the company
has made no exchange in this period.
During the report period, the company
has paid the interests for 2011 first
Cash paid for distribution
installment of short-period financing
of dividends, profits and 21,688,903.53 3,073,977.57 605.56%
bonds and Livzon Reagents Co., Ltd has
repayment of interests
paid the bonus to the minority of
shareholders.
During the same period of previous year,
the company paid the issuing expenses
Cash payments related to
- 800,000.00 -100.00% for first installment of short-period
other financing activities
financing bonds, but the company has
made no payment in this period.
3.2 Analysis and particulars of major events, their effects and resolutions
3.2.1 Non-standard opinions
□ Applicable √ Inapplicable
3.2.2 Particulars about the Company providing the capitals to the controlling shareholders and
their associated parties or providing the external guaranty by violating the relevant regulations
and procedures
□ Applicable √ Inapplicable
3.2.3 Particulars about the company signing and performing the major routine operation
contracts.
□ Applicable √ Inapplicable
3.2.4 Others
□ Applicable √ Inapplicable
3.3 Performance of commitments by the Company, shareholders and actual controllers
√Applicable □Inapplicable
(I) Commitments of the Company
1. In 2002, This Company signed the patent license agreement with Korea Yiyang Medicine Company. This agreement ap
proves 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 for the purpose of production, processing and distribution. The transfer f
ee will be USD 2.50 million, and by December 31, 2008, the company has fully paid it. The company agrees to give Yiyan
4
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
g the commission of 10% of sales amount during the first three years when this product begins to be sold, 8% of sales am
ount during the next five years, and 6% of sales amount from the remaining time to July 22, 2014 (the expiry date of agre
ement). Since 2009, the company has started the sales and paid the commissions 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
(they have 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 above final pellet
products 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. The company has begun the selling activities
in 2008 and paid the royalties in accordance with the agreements.
Within the first five years from the validity date of the agreement, the company will pay a royalty of 10% of net sales volum
e after the taxation about injection products to LG Company within 30 days after each quarter. The company will pay a roy
alty 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
During the report period, the controlling shareholder Joincare made the following commitments while handling the
restriction release of shares with trading restriction: 1. When 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) 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, then 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 the stocks issued by the company.
3.4 Warning and relevant reasons for the forecast that the accumulative net profit from the
beginning of 2011 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
3.5 Particulars about Other Major events
3.5.1 Particulars about Securities investment
√ Applicable □ Inapplicable
Unit: RMB Yuan
Percentage of Profit and
Initial Book Values
Secur Securi Holding total investment loss during
Securities investment at the end of
No. ities ties quantity in the securities the report
abbreviation amount period (RMB
Type Code (share) at the end of period (RMB
(RMB Yuan) Yuan)
period (%) Yuan)
Kunlun 17,023,230.0
1 Stock 00135 6,514,464.43 1,500,000 34.91% 3,575,054.70
Energy 0
Shenzhen
2 Stock 00152 9,350,227.22 17,000,000 7,441,583.40 15.26% 413,441.70
International
China
National
3 Stock 00883 2,656,235.91 560,000 7,245,086.69 14.86% 1,080,460.98
Offshore Oil
Corporation
Phoenix 19,326,101.9
4 Stock 02007 2,450,000 5,918,409.63 12.14% 139,029.91
Island 4
Baili
5 Stock 01880 2,172,792.24 428,000 4,836,477.98 9.92% 138,786.70
Company
6 Stock 00438 Rainbow gro 5,794,680.85 5,016,000 1,545,125.63 3.17% -223,647.64
5
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
up
7 Stock 01688 Alibaba 862,206.15 78,000 834,624.65 1.71% 326,910.78
China
Railway
8 Stock 00390 1,486,073.30 314,000 633,799.17 1.30% 15,273.02
Engineering
Group Co.
China
Railway
9 Stock 00186 998,783.53 114,000 446,349.09 0.92% 50,829.01
Construction
Corporation
Sinotrans
10 Stock 00368 1,744,792.46 260,500 392,774.55 0.81% -6,335.39
Shipping
Other securities investment at the
828,090.23 - 2,441,462.31 5.01% 15,179.55
end of this period
Profit and loss of sold Securities
- - - - 11,852.32
investment during the report period
51,734,448.2 48,758,923.1
Total - 100% 5,536,835.64
6 0
Explanation about securities investment: The above securities investments are the investments in the H-share market.
The amounts of H-share investment have been converted to RMB at the exchange rate at the end of report period.
3.5.2 Associated transactions related to routine operation
√ Applicable □ Inapplicable
3.5.2.1 Purchase of Commodities
Unit: RMB Yuan
January to January to
Name of Associated Party
March 2012 March 2011
Jiaozuo Joincare Pharmaceutical Group Industry Co., Ltd 5,332,000.00 31,226,581.22
Joincare Pharmaceutical Group Industry Co., Ltd - 39,384.62
Guangdong Blue Treasure Pharmaceutical Co. Ltd 1,555,352.56 -
Total 6,887,352.56 31,265,965.84
3.5.2.2 Sales of Commodities
Unit: RMB Yuan
January to January to
Name of Associated Party
March 2012 March 2011
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd 855.48 2,501.79
Guangdong Blue Treasure Pharmaceutical Co. Ltd. 10,442.43 -
Total 11,297.91 2,501.79
3.5.2.3 Provisions of labors
Unit: RMB Yuan
January to March January to
Name of Associated Party
2012 March 2011
Guangdong Blue Treasure Pharmaceutical Co. Ltd. 1,464,749.28 2,442,401.29
3.5.2.4 Leasing of Assets
Unit: RMB Yuan
January to January to
Name of Associated Party
March 2012 March 2011
Zhuhai Joincare Pharmaceutical Group Industry Co., Ltd 25,857.00 51,714.00
Health Pharmaceutical (China) Co., Ltd 24,987.00 24,987.00
6
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Total 50,844.00 76,701.00
3.5.3 Activities that the Company receives the investigation, communication and interview, etc
Reception date Reception place Reception Objects Discussion topics and provided
mode materials
Local Shanghai Fuxi Asset Production and operation status of
March 30, 2012 Headquarters
investigation Management Co., Ltd the Company
Local Shanghai Chaos Asset Production and operation status of
March 30, 2012 Headquarters
investigation Management Co., Ltd the Company
3.6 Particulars about derivative investments
□ Applicable √ Inapplicable
3.6.1 Holding particulars about derivative investments at the end of report period
□ Applicable √ Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by: Livzon Pharmaceutical Group Inc. March 31, 2012 Unit: RMB
Yuan
Balance at the end of period Balance at the beginning of year
Item
Consolidation Parent Company Consolidation Parent Company
Current assets:
Currency capital 1,147,721,744.10 1,051,798,172.25 1,447,743,555.70 1,321,193,456.29
Tradable financial assets 48,758,923.10 44,343,013.65
Notes receivable 88,113,442.56 10,597,541.28 171,033,783.72 11,041,114.87
Accounts receivable 647,634,823.68 294,161,702.90 562,146,013.18 255,482,126.08
Advance money 218,520,822.64 12,747,635.59 213,817,751.28 9,137,814.04
Dividend receivable
Other receivables 46,722,086.77 240,997,293.56 44,488,052.86 275,891,035.87
Purchase of resold financial
assets
Inventory 427,283,152.68 76,702,937.29 424,422,841.35 110,291,112.80
Non-current assets due within
one year
Other current assets
Total of current assets 2,624,754,995.53 1,687,005,282.87 2,907,995,011.74 1,983,036,659.95
Non-current assets:
Saleable financial assets 9,430,489.29 9,430,489.29 9,238,787.30 9,238,787.30
Investment held to the
maturity date
Long-term accounts
receivable
Long-term equity investment 118,311,207.13 1,526,282,231.79 118,529,007.91 1,526,671,374.58
Real estate for Investment
7
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Fixed assets 1,074,287,274.59 91,801,916.00 1,090,566,880.22 91,805,857.98
Engineering under
398,970,230.66 148,841,628.16
construction
Engineering goods 2,658,437.24 2,536,926.00
Liquidation of fixed assets
Production biology assets
Oil and gas assets
Intangible assets 168,417,510.57 34,263,863.18 170,385,550.58 34,053,322.48
Development expenses 1,510,153.51 1,289,662.78 1,510,153.51 1,289,662.78
Goodwill 103,040,497.85 103,040,497.85
Long-term deferred and
16,015,557.22 14,270,426.26
prepaid expenses
Assets with deferred income
37,481,921.26 13,261,899.68 35,994,112.21 12,369,049.28
taxes
Other non-current assets
Subtotal of non-current assets 1,930,123,279.32 1,676,330,062.72 1,694,913,970.00 1,675,428,054.40
Total of assets 4,554,878,274.85 3,363,335,345.59 4,602,908,981.74 3,658,464,714.35
Current liabilities:
Short-term loans 251,303,042.34 82,692,002.34 251,324,743.01 82,699,143.01
Tradable financial liability
Notes payable
Accounts payable 246,476,813.24 147,979,411.67 207,941,294.31 181,117,755.18
Deposit receivable 25,637,619.63 5,981,147.85 39,028,703.01 11,373,981.60
Payroll payable 42,501,307.99 20,467,874.71 52,328,883.82 20,721,517.12
Tax payable 92,927,466.58 16,370,180.63 90,201,700.34 10,233,643.04
Interests payable
Dividend payable 2,531,984.46 20,174.46 2,531,984.46 20,174.46
Other accounts payable 497,924,669.09 1,336,024,462.44 477,289,048.05 1,405,911,215.59
Non-current liabilities due
400,000.00 400,000.00
within one year
Other current liabilities 200,000,000.00 200,000,000.00 400,000,000.00 400,000,000.00
Total of current liabilities 1,359,702,903.33 1,809,535,254.10 1,521,046,357.00 2,112,077,430.00
Non-current liabilities
Long-term loan 1,200,000.00 1,200,000.00
Securities payable
Long-term accounts payable
Special accounts payable
Deferred profit 68,102,097.06 23,907,258.92 67,143,287.92 24,138,969.42
Anticipation liability
Liabilities with the deferred
1,955,961.47 1,041,068.77 1,901,504.87 1,012,313.47
income taxes
Other non-current liabilities
Subtotal of non-current
71,258,058.53 24,948,327.69 70,244,792.79 25,151,282.89
liabilities
Total of liabilities 1,430,960,961.86 1,834,483,581.79 1,591,291,149.79 2,137,228,712.89
Owners' equity (or
shareholders’ equities):
Paid-up capital (or share
295,721,852.00 295,721,852.00 295,721,852.00 295,721,852.00
capital)
8
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Capital reserve 348,256,083.10 338,114,129.69 348,093,136.41 337,951,183.00
Minus: treasury share
Special reserve
Surplus reserve 479,211,417.19 274,248,363.61 479,211,417.19 274,248,363.61
General risk reserve
Profits in this year 117,291,231.12 7,452,815.65
Undistributed profit 1,740,645,868.60 613,314,602.85 1,740,645,868.60 613,314,602.85
Conversion margin in foreign
-21,920,699.46 -20,502,568.00
currency statements
Subtotal of equities
attributable to the owners of 2,959,205,752.55 1,528,851,763.80 2,843,169,706.20 1,521,236,001.46
parent company
Equities of the minority of
164,711,560.44 168,448,125.75
shareholders
Subtotal of owners’ equities 3,123,917,312.99 1,528,851,763.80 3,011,617,831.95 1,521,236,001.46
Total of liabilities and owners’
4,554,878,274.85 3,363,335,345.59 4,602,908,981.74 3,658,464,714.35
equities
4.2 Profit Statement
Prepared by: Livzon Pharmaceutical Group Inc. January to March 2012 Unit:
RMB Yuan
Amount in this period Amount in previous period
Item Parent
Consolidation Parent Company Consolidation
Company
I. Total operating income 892,862,698.79 413,283,058.89 749,385,019.01 291,615,301.01
Including: operating income 892,862,698.79 413,283,058.89 749,385,019.01 291,615,301.01
II. Total operating cost 759,576,064.12 415,884,313.57 605,958,462.85 251,225,343.72
Including: operating cost 353,346,370.49 206,712,907.58 361,824,354.19 174,713,748.02
Operating tax and surtax 11,757,363.91 4,748,890.88 8,351,082.68 2,379,900.60
Sales expense 320,103,016.74 174,331,060.97 174,436,383.41 56,542,240.45
Management expense 73,417,775.90 24,511,957.37 57,851,763.30 20,678,940.40
Financial expense -4,885,220.34 -330,120.03 -1,365,483.72 -3,874,957.40
Loss from asset depreciation 5,836,757.42 5,909,616.80 4,860,362.99 785,471.65
Plus: returns from the changes of fair
values (the loss is listed beginning with 4,971,946.09 1,541,484.96
“-”).
Investment returns (the loss is listed
347,088.76 9,810,857.21 -693,022.78 -544,901.41
beginning with “-”).
Including: the investment returns from
the associated enterprises and joint -217,800.79 -389,142.79 -712,556.35 -544,901.41
enterprises
Profits form currency exchange (the loss
is listed beginning with “-”).
III. Operating profit (the loss is listed
138,605,669.52 7,209,602.53 144,275,018.34 39,845,055.88
beginning with “-”)
Plus : non-operating income 2,612,890.25 -86,289.50 11,690,162.11 88,014.44
Minus: non-operating payments 120,460.55 17,362.58 67,547.42 1,623.50
Including: loss in the disposal of non-
112,680.14 1,623.50 1,623.50
current assets
IV. Total profit (the loss is listed beginning
141,098,099.22 7,105,950.45 155,897,633.03 39,931,446.82
with “-”)
9
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Minus: income tax expense 19,156,297.99 -346,865.20 22,949,314.20 6,079,162.90
V. Net profit (the loss is listed beginning
121,941,801.23 7,452,815.65 132,948,318.83 33,852,283.92
with “-”)
Net profit attributable to the owners of
117,291,231.12 7,452,815.65 125,815,417.35 33,852,283.92
parent company
Profit and loss of the minority of
4,650,570.11 7,132,901.48
shareholders
VI. Profit per share:
(I) Basic profit per share 0.40 0.43
(II) Diluted profit per share 0.40 0.43
VII. Other comprehensive profits -1,255,184.77 162,946.69 -2,621,922.20 -264,950.53
VIII. Total of comprehensive profits 120,686,616.46 7,615,762.34 130,326,396.63 33,587,333.39
Total of comprehensive profits
attributable to the owners of parent 116,036,046.35 7,615,762.34 123,193,495.15 33,587,333.39
company
Total of comprehensive profits
attributable to the minority of 4,650,570.11 7,132,901.48
shareholders
If the merger of enterprises which are under the same control happens during this period, the net profit of merged
enterprises before the merger: RMB 0.00 Yuan.
4.3 Cash flow statement
Prepared by: Livzon Pharmaceutical Group Inc. January to March 2012 Unit:
RMB Yuan
Amount in this period Amount in previous period
Item
Consolidation Parent Company Consolidation Parent Company
I. Cash flows from operating
activities
Cash received from sales of
889,352,722.29 406,678,883.46 675,234,349.70 291,807,796.37
goods or rendering of services
Tax refunding 4,488,175.13 4,537,980.89
Cash received related to other
31,637,499.97 38,000,163.88 43,940,368.04 48,092,208.08
operating activities
Subtotal of cash inflow from the
925,478,397.39 444,679,047.34 723,712,698.63 339,900,004.45
operating activities
Cash paid for purchase of
234,143,478.60 201,219,655.05 247,586,219.37 148,049,833.58
goods or receiving of services
Cash paid to and on behalf of
86,826,827.95 21,847,653.33 71,919,098.35 16,095,215.56
employees
Tax payments 129,595,034.42 39,316,948.41 98,584,528.88 26,246,690.91
Cash paid to other operating
340,933,100.04 149,356,102.43 187,318,033.83 103,180,254.23
activities
Subtotal of cash outflow from
791,498,441.01 411,740,359.22 605,407,880.43 293,571,994.28
operating activities
Net cash flow from operating
133,979,956.38 32,938,688.12 118,304,818.20 46,328,010.17
activities
II. Cash flow from investment
activities:
Cash received from disposal of
investments
Cash received from investment
1,116,870.13 19,433.44
returns
10
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Net cash received from disposal
of fixed assets, intangible
100,350.00 330,000.00 2,095.00
assets and other long-term
assets
Net cash amount received from
the disposal of subcompanies
and other business units
Cash received related to other
10,200,000.00
investment activities
Subtotal of cash inflow from the
1,217,220.13 10,200,000.00 349,433.44 2,095.00
investment activities
Cash paid to acquire and
construct fixed assets,
213,873,211.70 6,925,406.00 53,807,149.52 3,219,298.99
intangible assets and other
long-term assets
Cash paid to acquire
10,200,000.00
investments
Net increase of mortgaged
loans
Net cash amount paid to
acquire the subcompanies and
other operating units
Cash paid related to other
57,299.95
investment activities
Subtotal of cash outflow from
213,873,211.70 6,925,406.00 53,807,149.52 13,476,598.94
investment activities
Net amount of cash flow
received from the investment -212,655,991.57 3,274,594.00 -53,457,716.08 -13,474,503.94
activities
III. Cash flow from financing
activities:
Cash received by investors 9,800,000.00
Including: cash received from
the investment of minority of
shareholders in the
subcompanies
Cash from loans 24,405,000.00 59,215,460.00 16,946,600.00
Cash received from the issuing
200,000,000.00 200,000,000.00
of bonds
Cash received related to other
financing activities
Subtotal of cash inflow from the
24,405,000.00 269,015,460.00 216,946,600.00
financing activities
Repayments of loans 224,405,000.00 200,000,000.00 194,568,876.34 131,942,600.11
Cash paid for distribution of
dividends, profits and 21,688,903.53 16,951,255.42 3,073,977.57 4,247,582.56
repayment of interests
Including: the dividends and
profits paid to the minority of
9,800,000.00
shareholders by the
subcompanies
Loans to subcompanies -417,203,127.84 -211,044,648.05
Cash payments related to other
800,000.00 800,000.00
financing activities
Subtotal of cash outflow from
246,093,903.53 -200,251,872.42 198,442,853.91 -74,054,465.38
the financing activities
11
Full text f the 2012 First Quarterly Report of Livzon Pharmaceutical Group Inc.
Net cash flow from financing
-221,688,903.53 200,251,872.42 70,572,606.09 291,001,065.38
activities
IV. Effect of foreign exchange
fluctuation on cash and cash 343,127.13 -2,915.88 -543,923.29 -8,209.24
equivalents
V. Net increase of cash and
-300,021,811.59 236,462,238.66 134,875,784.92 323,846,362.37
cash equivalents
Plus: Balance of cash and cash
equivalents at the beginning of 1,432,175,794.78 801,020,459.54 844,481,857.59 521,320,488.69
the period
VI Balance of cash and cash
equivalents at the end of the 1,132,153,983.19 1,037,482,698.20 979,357,642.51 845,166,851.06
period
4.4 Auditing of the report
The auditing opinion: this report has not been audited.
Livzon Pharmaceutical Group Inc.
Chairman: Zhu Baoguo
April 21, 2012
12
