The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
The 2013 Third Quarterly Report of Livzon
Pharmaceutical Group Inc.
Announcement No.: 2013-54
October 2013
1
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Section I Important Notice
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.
All directors attended the shareholders’ meeting examining this quarterly report.
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, accuracy and completeness of
the Financial Report in this quarterly report.
This third quarterlyl report is issued in Chinese and English versions. In case that there is any ambiguity in the
interpretation of two versions, the Chinese version will prevail.
2
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Section II Financial highlights and Shareholder Changes
I. Financial highlights
Are there any retrospective adjustments or restatement of accounting data for previous reporting years due to the
changes of accounting policies?
□ Yes √ No
Increase or decrease
End of this report period End of previous year compared with end of
previous year (%)
Total assets (RMB Yuan) 6,508,786,889.25 5,633,753,961.14 15.53%
Net asset attributable to the
shareholders of listed company 3,237,077,032.09 3,008,015,808.63 7.62%
(RMB Yuan)
Increase or decrease Increase or
compared with same Year beginning to decrease compared
This report period
period of previous end of report period with same period of
year (%) previous year (%)
Total operating income(RMB Yuan) 1,071,097,691.06 4.60% 3,233,359,513.46 11.15%
Net profit attributable to
shareholders of listed 119,424,573.63 3.91% 378,734,988.27 10.22%
company(RMB Yuan)
Net profit attributable to
shareholders of listed company
113,996,740.15 2.77% 362,377,911.49 10.28%
after deduction of non-recurring
profit and loss (RMB Yuan)
Net cash flows from operating
-- -- 352,630,802.56 -33.37%
activities (RMB Yuan)
Basic profit per share (RMB
0.40 2.56% 1.28 10.34%
Yuan/share)
Diluted profit per share (RMB
0.40 2.56% 1.28 10.34%
Yuan/share)
Weighed yield rate of net asset Down0.17 Up 0.10 percentage
3.76% 12.03%
（%） percentage points points
The items and amounts of non-recurring profit and loss
√ Applicable □ Not applicable.
Unit: (RMB) Yuan
Item Amount from the year Note
3
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
beginning to end of report
period
Profit and loss in disposal of non-current assets (including the
-333,171.11
written-off part of already withdrawn depreciation reserves)
Governmental allowance accrued to the current profit and loss,
except those that are closely related to the normal operation
businesses of company, and are continuously granted based on 28,172,403.96
the certain standard quota or certain quantity in accordance with
the uniform national standards
Except the effective hedge business related to the normal
operation business of the company, the profit and loss in the Profit and loss from the
changes of fair values caused by the holding of tradable financial changes of fair values
-1,788,681.11
assets and tradable financial liabilities as well as the investment caused by the tradable
returns in disposal of tradable financial assets, tradable financial financial assets.
liabilities and saleable financial assets
Other net non-operating income and payment except the above
1,050,343.30
items
Minus: effect of income tax 5,621,453.27
Effect of the minority of shareholders’ equities (after the taxation) 5,122,364.99
Total 16,357,076.78 --
For the non-recurring profit and loss items that the company has defined in accordance the No. 1 Explanatory
Announcement about Information Disclosure of Companies Making Public Offering of Securities – Non-recurring Profit
and Loss as well as the non-recurring profit and loss items listed by the No. 1 Explanatory Announcement about
Information Disclosure of Companies Making Public Offering of Securities – Non-recurring Profit and Loss that are defined
as the recurring profit and loss items by, please specify the reasons:
□ Applicable √ Not applicable.
II. Table about total quantity of all shareholders and shareholding particulars of top
ten shareholders at the end of report period
Unit: share
Total quantity of shareholders at
The shareholder quantity amounted to 17,940 (including 6,038 B-share holders)
the end of report period
Shares held by top ten shareholders
Quantity of Shares for the
Shareholding
Shareholder Quantity of shares with mortgage or freezing
Shareholder name percentage
nature shares trading Share
(%) Quantity
restriction status
Joincare Pharmaceutical Group Domestic
26.21% 77,510,167
Industry Co., Ltd non-state-owned
4
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
legal person
TOP SINO INDUSTRIES Foreign legal
17.13% 50,660,052 50,660,052
LIMITED SHENZHEN A/C person
Foreign legal
GAOLING FUND,L.P. 3.64% 10,767,777 10,767,777
person
First Shanghai Securities Co., Foreign legal
3.53% 10,444,157 10,106,560
Ltd person
Industrial and Commercial Bank
of China- Bosera Finely-selected
Others 2.96% 8,748,287
Stock Securities Investment
Fund
Mortgage
Guangzhou Begol Trading State-owned
2.05% 6,059,428 6,059,428 and 6,059,428
Corporation legal person
freezing
Domestic
Shenzhen Haibin
non-state-owned 1.99% 5,892,943
Pharmaceutical Co., Ltd
legal person
Agricultural Bank of China-
Greatwall Anxin Return Mixed Others 1.86% 5,500,000
Securities Investment Fund
Bank of Communications -
Bosera New Growth Stock-type Others 1.85% 5,464,326
Securities Investment Fund
Industrial and Commercial Bank
of China- E-fund Value Growth Others 1.83% 5,400,000
Mix Securities Investment Fund
Shareholding particulars of top ten shareholders without trading restriction
Quantity of shares without Share type
Shareholder name
trading restriction Share type Quantity
RMB common
Joincare Pharmaceutical Group Industry Co., Ltd 77,510,167 77,510,167
share
Industrial and Commercial Bank of China- Bosera RMB common
8,748,287 8,748,287
Finely-selected Stock Securities Investment Fund share
RMB common
Shenzhen Haibin Pharmaceutical Co., Ltd 5,892,943 5,892,943
share
Agricultural Bank of China- Greatwall Anxin Return RMB common
5,500,000 5,500,000
Mixed Securities Investment Fund share
Bank of Communications - Bosera New Growth RMB common
5,464,326 5,464,326
Stock-type Securities Investment Fund share
Industrial and Commercial Bank of China- E-fund 5,400,000 RMB common 5,400,000
5
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Value Growth Mix Securities Investment Fund share
Agricultural Bank of China – Penghua power growth RMB common
3,800,000 3,800,000
mixed securities investment funds share
Industrial and Commercial Bank of China- Harvest RMB common
3,796,891 3,796,891
Strategic Growth Mixed Securities Investment Fund share
RMB common
Columbia University 3,317,433 3,317,433
share
China Construction Bank – Greatwall Consumption RMB common
2,878,296 2,878,296
Value-added Stock-type Securities Investment Fund share
①On January 2, 2004, Joincare Pharmaceutical Group Industry
Co., Ltd (hereinafter called as the “Joincare”), Guangzhou Begol
Trading Corporation (hereinafter called as the “Begol”) and Zhuhai
Lishi Investment Co., Ltd signed the Agreement on Equity
Transfer, Custody and Mortgage. Joincare and Guangzhou Begol
Trading Corporation signed the Agreement on Equity Transfer and
Custody and the Agreement on Equity Mortgage, in which
Guangzhou Begol Trading Corporation directly transferred,
custodized and mortgaged 6,059,428 domestic legal person
shares of our company to Joincare; ② the above TOP SINO
INDUSTRIES LIMITED SHENZHEN A/C and Shenzhen Haibin
Pharmaceutical Co., Ltd are the subcompanies directly or
indirectly held 100% by Joincare; ③ the managers of Industrial
Description of relationship or concerted action and Commercial Bank of China- Bosera Finely-selected Stock
between above shareholders: Securities Investment Fund and Bank of Communications -
Bosera New Growth Stock-type Securities Investment Fund are
Greatwall Fund Management Co., Ltd; ④the managers of
Agricultural Bank of China- Greatwall Anxin Return Mixed
Securities Investment Fund and China Construction Bank –
Greatwall Consumption Value-added Stock-type Securities
Investment Fund are Harvest Fund Management Co., Ltd; except
the above information, the Company does not know whether there
are other relations between the top ten shareholders, or between
top ten tradable shareholders without trading restriction, or top ten
tradable shareholders without trading restriction and top ten
shareholders or whether they belong to the persons acting in
concert stated in the Management Measures about Takeover of
Listed Companies.
Note: TOP SINO INDUSTRIES LIMITED SHENZHEN A/C is the English name of Tiancheng Industry Co., Ltd.
Have the company shareholders reached an agreement about repurchase transaction during the report period?
□ Yes √ No
6
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Section III Major Events
I. Great changes and reasons of main financial statement items and financial indexes
of the Company
Unit: (RMB) Yuan
Increase
Items in the Balance September 30, December 31, or
Reasons for changes
Sheet 2013 2012 decrease
(%)
Tradable financial The main cause is the sales of part of
9,164,160.31 59,319,616.94 -84.55%
assets tradable financial assets.
The main cause is the increase of
Notes receivable 181,942,920.98 112,482,782.18 61.75% settlement of sales volume by the bank
acceptance bills.
The main cause is the increase of
investments in Ningxia Livzon Industry
Engineering under
1,636,265,970.55 1,028,769,050.48 59.05% Park project and the relocation project
construction
of new factory of Livzon
Pharmaceutical Factory.
The main cause is the increase of
Notes payable 372,798,618.20 283,581,118.89 31.46%
settlement with suppliers by the notes
The main cause is the increase of
Deposit receivable 55,414,624.94 37,950,040.42 46.02%
sales volume received in advance.
The main cause is the repayment of
Other current liabilities - 400,000,000.00 -100.00% due short-term financing of RMB 400
million Yuan.
The main cause is the increase of
long-term financing in order to meet
Long-term loan 149,900,000.00 700,000.00 21314.29% the fund demands of project
construction and technical
improvement, etc.
The main cause is the issuing of
Bonds payable 400,000,000.00 - medium-term notes of RMB 400 million
Yuan.
Increase
January to January to or
Profit and loss items Reasons for changes
September 2013 September 2012 decrease
(%)
Returns from the The main causes are the decrease of
-3,528,802.13 4,800,246.93 -173.51%
changes of fair values tradable financial assets as well as
7
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
the effect of changes of fair values of
tradable financial assets at the end
of report period.
The main causes are the
enhancement of performances of
Investment returns 3,810,605.58 1,668,506.76 128.38% associated enterprises as well as the
increase of investment returns
calculated by the equity method.
The main cause is the increase of
Non-operating incomes 30,631,134.1000 15,945,423.03 92.10% governmental allowances accrued to
the current profit and loss.
Increase
January to January to or
Cash flow statements Reasons for changes
September 2013 September 2012 decrease
(%)
Other cash received The main cause is the decrease of
related to operating 129,964,431.85 193,038,701.95 -32.67% governmental allowance incomes
activities received in this year.
The main cause is the increase of cash
Cash received from
46,725,339.60 1,979,144.92 2260.89% received from the sales of part of
disposal of investments
tradable financial assets.
Net cash received from
The main cause is the decrease of
disposal of fixed assets,
153,808.00 315,123.60 -51.19% cash received from disposal of assets
intangible assets and
in this year.
other long-term assets
The main cause is the cash received
Other cash received
from the banks in releasing the
related to investment 3,860,000.00 -
deposits for due letter of credit and
activities
bank acceptance bills.
The main cause is that the group
Cash paid to acquire purchased the equities in previous
- 75,766,298.43 -100.00%
investments year, but it has not made any
purchase in this year.
The main cause is the cash paid to the
Other cash paid related
5,400,000.00 - banks as the deposits for letter of
to investment activities
credit and bank acceptance bills.
The main cause is the increase of
Cash received from
49,000,000.00 investments in Dankang Company by
investors -
Joincare.
The main cause is the increase of
Cash from loans 890,630,519.37 502,257,886.64 77.33%
bank loans.
Other cash received The main cause is that the group
related to financing - 13,250,000.00 -100.00% received the released funds of HKD
activities loans in previous year, but it has not
8
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
received any funds in this year.
The main cause is the increase of
Repayments of loans 992,072,044.60 620,250,531.16 59.95%
repayment to bank loans.
The main cause is that the group paid
Other cash payments the formality fee for issuing of
related to financing - 1,600,000.00 -100.00% securities in same period of previous
activities year, but it has not paid any fees in this
year.
II. Analysis and particulars of major events, their effects and resolutions
Description of major events Disclosure date Search index about disclosure website of temporary
reports
th
On January 30, 2013, the 14 meeting of The disclosure document: Announcement about
th th th
the 7 Board of Directors examined and resolutions passed in the 14 meeting of the 7 Board of
approved that, the company intends to Directors of Livzon Pharmaceutical Group Inc.
change the listing place of domestically (No. :2013-06); Livzon Pharmaceutical Group Inc.
January 31,
listed foreign shares (B-shares) and list changes the listing place of domestically listed foreign
2013
and trade them in on the Main Board of shares (B-shares) and list and trade them in on the Main
Hongkong Stock Exchange by the mode Board of Hongkong Stock Exchange by the mode of
of introduction. introduction; disclosure website: Juchao website
(http://www.cninfo.com.cn/)
The development of above events is described as follows:
1.On February 20, 2013, the 2013 first temporary shareholders’ meeting of Livzon Pharmaceutical Group Inc. examined
and passed relevant proposals including Livzon Pharmaceutical Group Inc. changes the listing place of domestically
listed foreign shares (B-shares) and list and trade them in on the Main Board of Hongkong Stock Exchange by the mode
of introduction;
2. On April 15, 2013, the company received the Acceptance Notice About Administrative Licensing Application to China
Securities Regulatory Commission (130242) issued by China securities regulatory commission:
3. On June 3, 2013, the company submitted to the Hong Kong stock exchange the A1 (A1 Submission) - the company
Livzon Pharmaceutical Group Inc. changes the listing place of domestically listed foreign shares (B-shares) and list and
trade them on the Main Board of Hongkong Stock Exchange by the mode of introduction, and officially received the
acceptance letter issued by Hong Kong stock exchange on June 6, 2013;
4. On September 29, 2013, the company received from China Securities Regulatory Commission the Reply about
Approval of the Listing of Livzon Pharmaceutical Group Inc. on the Main Board of Hong Kong Stock Exchange (Zheng
Jian Xu Ke [2013] No. 1248) regarding the application of the company Livzon Pharmaceutical Group Inc. changing the
listing place of domestically listed foreign shares (B-shares) and listing and trading them on the Main Board of Hongkong
Stock Exchange by the mode of introduction, and the reply approved that the company transferred the existing
111,993,354 domestically listed foreign shares to the overseas listed foreign shares and be traded on the main board of
Hong Kong Stock Exchange;
The affair that the domestically listed foreign shares of the company will be listed and traded on the Main Board of
Hongkong Stock Exchange by the mode of introduction needs a hearing held by the listing committee of Hong Kong Stock
9
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Exchange, and the question about whether the final approval can be given by Hongkong Stock Exchange is still
uncertain.
III. Commitments that the company and shareholders holding over 5% of total shares
have made that occurred in this period or that occurred in previous period but have
extended to this report period
Commitm Commitm Performa
Commitments Principal Commitment content
ent date ent period nce
Commitments about
share reform
Commitments in the
purchase report or
equity change
reports
Commitments at the
time of asset
restructuring
Commitments at the
time of first public
issuing or refinancing
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
Joincare Perform
Original Shares Released from Trading Restrictions
Pharma based
([2008] No. 15 announcement) issued by China Decembe
Other commitments to ceutical Long-ter on
Securities Regulatory Commission. r 17,
medium and small Group m actual
(2) Joincare plans to reduce its tradable shares of 2008
shareholders of Industry situatio
Livzon Group whose trading restriction has been
company Co., Ltd n
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.
Tianche From January 9, 2012 to January 8, 2013, Tiancheng January The
6 months
ng Industry Co., Ltd., a wholly owned subsidiary of the 8, 2013 performa
10
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Industry controlling shareholder of company Joincare, increase nce is
Co., Ltd the quantity of B shares through the centralized complete
competition mode in Shenzhen Stock Exchange trading d.
system, and made the following commitments after the
completion of implementation: after the completion of
this share increase, the lock-up period of share-holding
is 6 months from the completion date of the share
increase.
While planning to perform the transfer project from
B-shares to H-shares, Tiancheng Industry Co., Ltd
signed a following letter of commitment: in the Until the
conditions that the third party arranged by Livzon Group impleme
provides the Company with a cash option about the ntation
transfer from B-shares to H-shares, with respect to the plan
50,660,052 B shares of Livzon Group that the about
Tianche During
Company currently holds, the Company agreed to transfer
ng January the
waive the exercise of such cash option, and agreed to from
Industry 25, 2013 performa
continue to hold and retain these shares to the date B-share
Co., Ltd nce
when they are changed to H Shares in accordance with to
this plan and are listed and traded n the Hongkong H-share
Stock Exchange, and from the date of signing of the is
letter of commitment to the completion of the complet
implementation of this plan, the Company will not ed.
purchase or sell the shares of Livzon Group (including
A-shares and B-shares).
Have the
commitments been Yes
duly performed?
Reason for failure to
perform them and next Inapplicable
plans
IV. Forecast about operation performance in 2013
Warning and relevant reasons for the forecast that the accumulative net profit from the beginning of 2013 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 √ Not applicable.
V. Securities Investments
Sec Securiti Securities Initial Holding Sharehol Holding Sharehol Book Profit and Accountin Shar
uriti es abbreviati investment quantity at ding quantity ding Values at loss during g e
es Code on amount the percenta at the percenta the end the report calculatio sourc
11
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Typ (RMB Yuan) beginning ge at the end of ge at the of period period n subject e
e of period beginnin period end of (RMB
(share) g of (share) period Yuan)
period (%)
(%)
Purc
hase
Saleable
Stoc Kunlun 1,000,00 8,594,71 -2,338,637. from
00135 4,267,542.24 1,000,000 financial
k Energy 0 0.80 92 the
assets
mark
et
Purc
hase
Saleable
Fun Penghua 569,449. from
206001 150,000.00 619,573 619,573 52,168.05 financial
d Fund 51 the
assets
mark
et
1,619,57 9,164,16 -2,286,469.
Total 4,417,542.24 1,619,573 -- -- -- --
3 0.31 87
Shareholding particulars of other listed companies
√ Applicable □ Not applicable.
Securitie Securities Initial Percentag Book value Profit Changes
s code abbreviation investment e of total at the end of and of owners’
capital shares of this period loss equities
Accountin
this durin during the
g Share
Company g the report
calculatio source
repor period
n subject
t (RMB
perio Yuan)
d
Bank of Saleable Share
2,450,179.0 349,183.4
601328 Communicatio 0.0025% 6,528,212.70 financial participatio
0 - 7
ns assets n
Huadong Saleable Share
370,813.9
000963 Medicine Co., 0.0211% 4,019,440.10 financial participatio
39,851.86 - 5
Ltd assets n
Total 2,490,030.8 10,547,652.8 719,997.4
6 0 - 2
12
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
VI. Investments in derivative products
□ Applicable √ Not applicable.
VII. List of Activities in which the Company receives the investigation,
communication and interview, etc during the report period
Reception date Reception Reception Objects Discussion topics and provided materials
Type of objects
place mode
They inquired about the operation status
of company and development details
Telephone
Individual about transfer from B-share to H-share,
July 4, 2013 Company office communica Individual
investor and the company answered them based
tion
on actual situation, and did not provide
any written data.
They inquired about the implementation
Telephone details of 2012 annual profit distribution
Individual
July 23, 2013 Company office communica Individual plan, and the company answered them
investor
tion based on actual situation, and did not
provide any written data.
They inquired about the details about
Telephone t2013 third temporary shareholders’
Individual
August 12, 2013 Company office communica Individual meeting, and the company answered
investor
tion them based on actual situation, and did
not provide any data.
They inquired about the operation status
of company in the first half of 2013 and
Telephone
Individual development details about transfer from
August 29, 2013 Company office communica Individual
investor B-share to H-share, and the company
tion
answered them in details, and did not
provide any data.
They inquired about the development
Telephone details about transfer from B-share to
September 17, Individual
Company office communica Individual H-share, and the company answered
2013 investor
tion them based on actual situation, and did
not provide any written data.
13
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Section IV Financial Statement
I. Financial Statement
1. Consolidated Balance Sheet
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Balance at the end of period Balance at the beginning of year
Current assets:
Currency capital 1,057,071,437.94 1,221,332,802.40
Tradable financial assets 9,164,160.31 59,319,616.94
Notes receivable 181,942,920.98 112,482,782.18
Accounts receivable 912,010,559.51 774,021,470.88
Advance money 231,393,588.27 207,180,789.68
Interests receivable
Dividend receivable
Other accounts receivable 65,909,288.04 53,040,257.13
Purchase of resold financial assets
Inventory 640,081,664.36 546,497,999.53
Non-current assets due within one year
Other current assets
Total of current assets 3,097,573,619.41 2,973,875,718.74
Non-current assets:
Issuing of entrusted loans and advance money
Saleable financial assets 10,547,652.80 10,612,859.66
Investment held to the maturity date
Long-term accounts receivable
Long-term equity investment 123,031,687.95 120,961,203.38
Real estate for Investment
Fixed assets 1,248,362,193.30 1,127,285,485.37
Engineering under construction 1,636,265,970.55 1,028,769,050.48
Engineering goods 2,008,814.04 1,623,576.06
Liquidation of fixed assets
14
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Production biology assets
Oil and gas assets
Intangible assets 227,689,561.03 205,129,693.66
Development expenses 1,510,153.51
Goodwill 103,040,497.85 103,040,497.85
Long-term deferred and prepaid expenses 16,442,287.66 17,785,870.45
Assets with deferred income taxes 43,824,604.66 43,159,851.98
Other non-current assets
Subtotal of non-current assets 3,411,213,269.84 2,659,878,242.40
Total of assets 6,508,786,889.25 5,633,753,961.14
Current liabilities:
Short-term loans 681,931,195.20 536,169,502.91
Tradable financial liabilities
Notes payable 372,798,618.20 283,581,118.89
Accounts payable 382,408,641.29 311,814,060.41
Deposit receivable 55,414,624.94 37,950,040.42
Payroll payable 66,858,460.22 74,462,512.02
Tax payable 81,943,917.83 96,658,310.36
Interests payable 11,280,270.92 10,454,004.86
Dividend payable 2,531,984.46 2,531,984.46
Other accounts payable 751,582,981.30 622,164,203.12
Non-current liabilities due within one year 400,000.00 400,000.00
Other current liabilities 400,000,000.00
Total of current liabilities 2,407,150,694.36 2,376,185,737.45
Non-current liabilities
Long-term loan 149,900,000.00 700,000.00
Bonds payable 400,000,000.00
Long-term accounts payable
Special accounts payable
Anticipation liability
Liabilities with the deferred income taxes 2,827,124.19 2,576,489.15
Other non-current liabilities 68,304,937.50 74,172,485.90
Subtotal of non-current liabilities 621,032,061.69 77,448,975.05
Total of liabilities 3,028,182,756.05 2,453,634,712.50
15
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Owners' equity (or shareholders’ equities):
Paid-up capital (or share capital) 295,721,852.00 295,721,852.00
Capital reserve 219,054,779.84 219,110,205.68
Minus: treasury share
Special reserve
Surplus reserve 490,319,036.90 490,319,036.90
General risk reserve
Undistributed profit 2,254,222,904.85 2,023,348,842.58
Conversion margin in foreign currency statement -22,241,541.50 -20,484,128.53
Subtotal of equities attributable to the owners of
3,237,077,032.09 3,008,015,808.63
parent company
Equities of the minority of shareholders 243,527,101.11 172,103,440.01
Subtotal of owners’ equities 3,480,604,133.20 3,180,119,248.64
Total of liabilities and owners’ equities 6,508,786,889.25 5,633,753,961.14
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
2. Balance Sheet of Parent Company
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Balance at the end of period Balance at the beginning of year
Current assets:
Currency capital 932,965,251.61 1,140,415,395.77
Tradable financial assets
Notes receivable 85,646,375.56 18,838,299.32
Accounts receivable 471,821,187.37 356,944,182.17
Advance money 19,974,228.94 11,947,252.36
Interests receivable
Dividend receivable
Other accounts receivable 839,216,867.58 672,875,015.59
Inventory 86,140,592.23 80,003,596.83
Non-current assets due within one year
Other current assets
Total of current assets 2,435,764,503.29 2,281,023,742.04
16
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Non-current assets:
Saleable financial assets 10,547,652.80 10,612,859.66
Investment held to the maturity date
Long-term accounts receivable
Long-term equity investment 1,711,460,502.16 1,660,096,199.25
Real estate for Investment
Fixed assets 86,941,465.35 89,894,096.64
Engineering under construction
Engineering goods
Liquidation of fixed assets
Production biology assets
Oil and gas assets
Intangible assets 31,617,790.19 33,297,100.50
Development expenses 1,289,662.78
Goodwill
Long-term deferred and prepaid expenses
Assets with deferred income taxes 14,142,053.92 13,899,260.85
Other non-current assets
Subtotal of non-current assets 1,854,709,464.42 1,809,089,179.68
Total of assets 4,290,473,967.71 4,090,112,921.72
Current liabilities:
Short-term loans 551,900,515.20 403,190,102.91
Tradable financial liabilities
Notes payable 657,216,167.48 565,951,118.89
Accounts payable 183,064,968.25 117,634,591.39
Deposit receivable 10,347,671.77 7,154,698.64
Payroll payable 15,222,749.58 24,141,017.37
Tax payable 45,630,288.27 24,119,667.76
Interests payable 10,420,823.75 9,058,796.48
Dividend payable 20,174.46 20,174.46
Other accounts payable 962,211,687.24 1,042,693,215.88
Non-current liabilities due within one year
Other current liabilities 400,000,000.00
Total of current liabilities 2,436,035,046.00 2,593,963,383.78
17
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Non-current liabilities
Long-term loan
Bonds payable 400,000,000.00
Long-term accounts payable
Special accounts payable
Anticipation liability
Liabilities with the deferred income taxes 1,208,643.31 1,218,424.33
Other non-current liabilities 6,360,398.37 9,311,879.60
Subtotal of non-current liabilities 407,569,041.68 10,530,303.93
Total of liabilities 2,843,604,087.68 2,604,493,687.71
Owners' equity (or shareholders’ equities):
Paid-up capital (or share capital) 295,721,852.00 295,721,852.00
Capital reserve 339,063,718.66 339,119,144.50
Minus: treasury share
Special reserve
Surplus reserve 285,355,983.32 285,355,983.32
General risk reserve
Undistributed profit 526,728,326.05 565,422,254.19
Conversion margin in foreign currency statement
Subtotal of owners’ equities 1,446,869,880.03 1,485,619,234.01
Total of liabilities and owners’ equities 4,290,473,967.71 4,090,112,921.72
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
3. Consolidated Profit statement in this report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Amount in this period Amount in previous period
I. Total operating income 1,071,097,691.06 1,024,017,114.12
Including: operating income 1,071,097,691.06 1,024,017,114.12
II. Total operating cost 929,637,492.82 886,983,260.25
Including: operating cost 355,685,496.77 395,932,474.47
Operating tax and surtax 14,155,981.46 16,166,042.36
Sales expense 449,060,580.12 388,588,598.71
18
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Management expense 107,486,496.42 82,212,107.88
Financial expense -151,931.11 -801,453.78
Loss from asset depreciation 3,400,869.16 4,885,490.61
Plus: returns from the changes of fair values (the
-2,286,469.87 2,685,743.04
loss is listed beginning with “-”).
Investment returns (the loss is listed beginning with
723,630.82 -62,961.81
“-”).
Including: the investment returns from the
361,633.57 1,017,790.33
associated enterprises and joint enterprises
III. Operating profit (the loss is listed beginning with
139,897,359.19 139,656,635.10
“-”)
Plus : non-operating income 15,592,338.71 3,385,329.24
Minus: non-operating payments 279,134.37 1,688,605.08
Including: loss in the disposal of non-current assets 373,888.38 1,512,404.12
IV. Total profit (the loss is listed beginning with “-”) 155,210,563.53 141,353,359.26
Minus: income tax expense 26,230,987.29 23,044,579.35
V. Net profit (the loss is listed beginning with “-”) 128,979,576.24 118,308,779.91
Net profit attributable to the owners of parent
119,424,573.63 114,925,845.48
company
Profit and loss of the minority of shareholders 9,555,002.61 3,382,934.43
VI. Profit per share: -- --
(I) Basic profit per share 0.40 0.39
(II) Diluted profit per share 0.40 0.39
VII. Other comprehensive gains 237,308.30 -1,523,140.49
VIII. Total of comprehensive gains 129,216,884.54 116,785,639.42
Total of comprehensive gains attributable to the
119,692,119.52 113,402,704.99
owners of parent company
Total of comprehensive gains attributable to the
9,524,765.02 3,382,934.43
minority of shareholders
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
4. Profit statement of parent company in this report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
19
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Item Amount in this period Amount in previous period
I. Total operating income 561,701,330.18 471,436,667.27
Minus: operating cost 205,471,530.24 209,389,748.05
Operating tax and surtax 6,732,113.73 5,723,238.46
Sales expense 268,072,036.25 215,296,438.44
Management expense 30,848,679.82 29,788,566.10
Financial expense -2,301,228.42 887,374.45
Loss from asset depreciation 1,940,643.10 1,984,531.88
Investment returns (the loss is listed beginning with
488,331.94 -1,040,040.68
“-”).
Including: the investment returns from the
123,966.58 43,028.21
associated enterprises and joint enterprises
II. Operating profit (the loss is listed beginning with
51,425,887.40 7,326,729.21
“-”)
Plus : non-operating income 808,779.29 709,580.12
Minus: non-operating payments 19,597.73 32,175.50
Including: loss in the disposal of non-current assets 2,175.50
III. Total profit (the loss is listed beginning with “-”) 52,215,068.96 8,004,133.83
Minus: income tax expense 5,141,282.60 333,474.97
IV. Net profit (the loss is listed beginning with “-”) 47,073,786.36 7,670,658.86
V. Profit per share: -- --
VI. Other comprehensive gains 611,997.82 -26,680.83
VII. Total of comprehensive gains 47,685,784.18 7,643,978.03
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
5. Consolidated Profit Statement from year beginning to the end of report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Amount in this period Amount in previous period
I. Total operating income 3,233,359,513.46 2,909,014,289.56
Including: operating income 3,233,359,513.46 2,909,014,289.56
Interests income
Earned premium
Handling fees and commission incomes
20
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
II. Total operating cost 2,785,220,718.38 2,493,758,176.28
Including: operating cost 1,164,524,632.27 1,144,684,910.76
Interests payments
Operating tax and surtax 41,375,251.54 40,442,078.86
Sales expense 1,274,180,388.48 1,062,612,062.72
Management expense 296,657,719.29 239,848,812.08
Financial expense -10,948,720.19 -11,860,825.07
Loss from asset depreciation 19,431,446.99 18,031,136.93
Plus: returns from the changes of fair values (the
-3,528,802.13 4,800,246.94
loss is listed beginning with “-”).
Investment returns (the loss is listed beginning with
3,810,605.58 1,668,506.76
“-”).
Including: the investment returns from the
2,070,484.56 1,159,724.22
associated enterprises and joint enterprises
Profits form currency exchange (the loss is listed
beginning with “-”)
III. Operating profit (the loss is listed beginning with
448,420,598.53 421,724,866.98
“-”)
Plus : non-operating income 30,631,134.10 15,945,423.03
Minus: non-operating payments 1,741,557.95 1,913,000.47
Including: loss in the disposal of non-current assets 378,508.43 1,712,449.65
IV. Total profit (the loss is listed beginning with “-”) 477,310,174.68 435,757,289.54
Minus: income tax expense 78,654,954.54 70,716,571.44
V. Net profit (the loss is listed beginning with “-”) 398,655,220.14 365,040,718.10
Including: net profit of merged party before the
merger
Net profit attributable to the owners of parent
378,734,988.27 343,630,861.87
company
Profit and loss of the minority of shareholders 19,920,231.87 21,409,856.23
VI. Profit per share: -- --
(I) Basic profit per share 1.28 1.16
(II) Diluted profit per share 1.28 1.16
VII. Other comprehensive gains -1,812,838.80 -758,679.51
VIII. Total of comprehensive gains 396,842,381.34 364,282,038.59
Total of comprehensive gains attributable to the
376,957,528.92 342,872,182.36
owners of parent company
21
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Total of comprehensive gains attributable to the
19,884,852.42 21,409,856.23
minority of shareholders
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
6. Profit statement of parent company from year beginning to the end of this report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Amount in this period Amount in previous period
I. Total operating income 1,573,266,002.03 1,330,394,470.97
Minus: operating cost 621,512,847.93 618,489,681.40
Operating tax and surtax 18,720,658.02 15,007,084.06
Sales expense 722,735,176.19 578,787,562.33
Management expense 99,362,732.22 78,844,140.80
Financial expense -12,572,593.44 -1,050,434.13
Loss from asset depreciation 4,526,766.03 11,596,805.04
Plus: returns from the changes of fair values (the
loss is listed beginning with “-”).
Investment returns (the loss is listed beginning with
“-”).
Including: the investment returns from the
364,302.91 -732,296.10
associated enterprises and joint enterprises
II. Operating profit (the loss is listed beginning with
120,052,833.35 79,171,682.18
“-”)
Plus : non-operating income 4,955,607.50 1,921,939.59
Minus: non-operating payments 1,134,580.78 51,495.58
Including: loss in the disposal of non-current assets 4,620.05 4,133.00
III. Total profit (the loss is listed beginning with “-”) 123,873,860.07 81,042,126.19
Minus: income tax expense 14,706,862.21 2,772,376.79
IV. Net profit (the loss is listed beginning with “-”) 109,166,997.86 78,269,749.40
V. Profit per share: -- --
(I) Basic profit per share
(II) Diluted profit per share
VI. Other comprehensive gains -55,425.83 329,360.84
VII. Total of comprehensive gains 109,111,572.03 78,599,110.24
22
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
7. Consolidated Cash Flow Statement from year beginning to the end of report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
Item Amount in this period Amount in previous period
I. Cash flows from operating activities
Cash received from sales of goods or rendering of
3,227,364,226.96 2,979,324,386.94
services
Net increase from disposal of tradable financial
assets
Tax refunding 12,652,412.75 15,341,233.91
Other cash received related to operating activities 127,951,785.53 193,038,701.95
Subtotal of cash inflow from the operating activities 3,367,968,425.24 3,187,704,322.80
Cash paid for purchase of goods or receiving of
829,328,377.58 742,838,101.48
services
Cash paid to and on behalf of employees 285,246,906.79 234,507,204.82
Tax payments 467,995,209.93 429,747,964.16
Other cashes paid to operating activities 1,432,767,128.38 1,251,391,775.83
Subtotal of cash outflow from operating activities 3,015,337,622.68 2,658,485,046.29
Net cash flow from operating activities 352,630,802.56 529,219,276.51
II. Cash flow from investment activities:
Cash received from disposal of investments 46,725,339.60 1,979,144.92
Cash received from investment returns 892,281.75 1,033,253.97
Net cash received from disposal of fixed assets,
153,808.00 315,123.60
intangible assets and other long-term assets
Net cash amount received from the disposal of
subcompanies and other business units
Other cash received related to investment activities 3,860,000.00
Subtotal of cash inflow from the investment
51,631,429.35 3,327,522.49
activities
Cash paid to acquire and construct fixed assets,
727,691,800.27 669,948,180.40
intangible assets and other long-term assets
Cash paid to acquire investments 75,766,298.43
Net increase from the mortgage loan
23
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Net cash amount paid to acquire the
subcompanies and other operating units
Other cash paid related to investment activities 5,400,000.00
Subtotal of cash outflow from investment activities 733,091,800.27 745,714,478.83
Net amount of cash flow received from the
-681,460,370.92 -742,386,956.34
investment activities
III. Cash flow from financing activities:
Cash received from investors 49,000,000.00
Including: cash received from the investment of
49,000,000.00
minority of shareholders in the subcompanies
Cash from loans 890,630,519.37 502,257,886.64
Cash received from the issuing of bonds 400,000,000.00 400,000,000.00
Other cash received related to financing activities 13,250,000.00
Subtotal of cash inflow from the financing activities 1,339,630,519.37 915,507,886.64
Repayments of loans 992,072,044.60 620,250,531.16
Cash paid for distribution of dividends, profits and
182,581,502.72 199,049,650.22
repayment of interests
Including: the dividends and profits paid to the
minority of shareholders by the subcompanies
Other cash payments related to financing activities 1,600,000.00
Sub-total of cash outflow from the financing
1,174,653,547.32 820,900,181.38
activities
Net cash flow from financing activities 164,976,972.05 94,607,705.26
IV. Effect of foreign exchange fluctuation on cash
-654,024.48 1,237,771.65
and cash equivalents
V. Net increase of cash and cash equivalents -164,506,620.79 -117,322,202.92
Plus: Balance of cash and cash equivalents at the
1,178,636,300.52 1,432,175,794.78
beginning of the period
VI Balance of cash and cash equivalents at the end
1,014,129,679.73 1,314,853,591.86
of the period
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
8. Cash Flow Statement of Parent Company from year beginning to the end of report period
Prepared by: Livzon Pharmaceutical Group Inc.
Unit: (RMB) Yuan
24
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Item Amount in this period Amount in previous period
I. Cash flows from operating activities
Cash received from sales of goods or rendering of
1,588,718,737.36 1,359,174,946.52
services
Tax refunding
Other cash received related to operating activities 68,640,448.63 233,975,884.89
Subtotal of cash inflow from the operating activities 1,657,359,185.99 1,593,150,831.41
Cash paid for purchase of goods or receiving of
668,163,378.69 571,235,760.39
services
Cash paid to and on behalf of employees 61,750,294.46 56,116,061.68
Tax payments 174,016,114.15 132,879,456.76
Other cashes paid to operating activities 725,821,264.72 791,906,389.61
Subtotal of cash outflow from operating activities 1,629,751,052.02 1,552,137,668.44
Net cash flow from operating activities 27,608,133.97 41,013,162.97
II. Cash flow from investment activities:
Cash received from disposal of investments
Cash received from investment returns 708,115.36 151,818.90
Net cash received from disposal of fixed assets,
73,000.00 168,000.00
intangible assets and other long-term assets
Net cash amount received from the disposal of
subcompanies and other business units
Other cash received related to investment activities 52,115,596.80
Subtotal of cash inflow from the investment
781,115.36 52,435,415.70
activities
Cash paid to acquire and construct fixed assets,
18,068,956.71 13,976,887.82
intangible assets and other long-term assets
Cash paid to acquire investments 51,000,000.00 75,766,298.43
Net cash amount paid to acquire the
subcompanies and other operating units
Other cash paid related to investment activities
Subtotal of cash outflow from investment activities 69,068,956.71 89,743,186.25
Net amount of cash flow received from the
-68,287,841.35 -37,307,770.55
investment activities
III. Cash flow from financing activities:
Cash received from investors
Cash from loans 610,126,709.37 477,852,886.64
25
The 2013 Third Quarterly Report of Livzon Pharmaceutical Group Inc.
Loans from subcompanies 152,286,120.93
Cash received from the issuing of bonds 400,000,000.00 400,000,000.00
Other cash received related to financing activities
Subtotal of cash inflow from the financing activities 1,162,412,830.30 877,852,886.64
Repayments of loans 851,359,055.40 559,848,551.16
Cash paid for distribution of dividends, profits and
172,040,161.73 191,663,827.91
repayment of interests
Other cash payments related to financing activities 297,359,165.91 1,600,000.00
Loans paid to subcompanies 201,119,907.85
Sub-total of cash outflow from the financing
1,320,758,383.04 954,232,286.92
activities
Net cash flow from financing activities -158,345,552.74 -76,379,400.28
IV. Effect of foreign exchange fluctuation on cash
-237,533.55 308,151.43
and cash equivalents
V. Net increase of cash and cash equivalents -199,262,793.67 -72,365,856.43
Plus: Balance of cash and cash equivalents at the
1,099,218,893.89 1,306,877,982.24
beginning of the period
VI Balance of cash and cash equivalents at the end
899,956,100.22 1,234,512,125.81
of the period
Legal representative:Zhu Baoguo Principal of the Financial Department: An Ning
Principal of the Accounting Department: Si Yanxia
II. Auditing report
Have this third quarterly financial report been audited?
□ Yes √ No
This third quarterly financial report has not been audited.
Livzon Pharmaceutical Group Inc.
Chairman: Zhu Baoguo
October 28, 2013
26