1、,1,2,The 2011 First Quarterly Report of Livzon Pharmaceutical Group Inc.,Stock code: 000513, 200513,Stock abbreviation: Livzon Group, Livzon B,Announcement No: 2011-13,The 2011 First Quarterly Report of Livzon Pharmaceutical Group Inc. Important notice1.1 The Board of Directors (BOD), Board of Super
2、visors (BOS), directors, supervisors, and senior executiveshereby guarantee that the data in the present report contain no false representation, misleading statements andserious omissions, and shall be severally and jointly liable for the authenticity, accuracy and completeness of thecontent.1.2 The
3、 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. SiYanxia, the principal of the Accounting Department hereby declare: We guarantee the authenticity andcompleteness of the Fi
4、nancial Report in this quarterly report. Brief introduction of the Company2.1 Financial highlightsUnit :( RMB) Yuan,End of this reportperiod,End of previous Year,Increase or decrease(%),Total assets (RMB Yuan)Owners equity attributable to the shareholders of listedcompany (RMB Yuan)Share capital (sh
5、are)Net assets per share attributable to the shareholders of listedcompany (RMB Yuan/share)Total operating income (RMB Yuan)Net profit attributable to the shareholders of listed company(RMB Yuan)Net cash flows from operating activities (RMB Yuan)Net cash flows per share from operating activities (RM
6、BYuan/share)Basic profit per share (RMB Yuan/share)Diluted profit per share (RMB Yuan/share)Weighed average yield rate of net assets (%)Weighed average yield rate of net assets after deduction ofnon-recurring profit and loss (%),3,855,913,664.242,640,631,605.39295,721,852.008.93End of this reportper
7、iod749,385,019.01125,815,417.35118,304,818.200.400.430.434.88%4.46%,3,661,991,627.952,517,438,110.24295,721,852.008.51Same period inprevious year649,272,090.29126,624,416.91168,502,351.480.570.430.435.72%5.47%,5.30%4.89%0.00%4.94%Increase or decrease(%)15.42%-0.64%-29.79%-29.82%0.00%0.00%Down 0.84pe
8、rcentage pointsDown 1.01percentage points,Items of non-recurring profit and loss Applicable InapplicableUnit :( RMB) YuanAmount from the year,Items of non-recurring profit and lossProfit and loss in disposal of non-circulation assets,1,beginning to end of reportperiod302,414.96,Remarks,Type,3,The 20
9、11 First Quarterly Report of Livzon Pharmaceutical Group Inc.Governmental allowance accrued to the current profit and loss, except,those that are closely related to the normal operation businesses ofcompany, comply with the national policies, and are continuously grantedbased on the certain standard
10、 quota or certain quantityExcept the effective hedge business related to the normal operationbusiness of the company, the profit and loss in the changes of fair valuescaused by the holding of tradable financial assets and tradable financialliabilities as well as the investment returns in disposal of
11、 tradable financialassets, tradable financial liabilities and saleable financial assetsOther net non-operating income and payment except the above itemsSubtotalMinus: Effect of income taxEffect of the minority of shareholders equitiesTotal,10,110,594.201,561,018.531,209,605.5313,183,633.221,791,505.
12、08488,889.1310,903,239.01,Financial allowance thatthe company has got.The profit and loss in thechanges of fair values oftradable financial assetsheld by the company.,2.2 Table about total quantity of all shareholders and shareholding particulars of top ten shareholderswithout trading restriction at
13、 the end of report periodUnit: share,Total quantity of shareholders at the end of reportperiod,The shareholder quantity of the company amounted to 21,634 (including 8,146B-share holders),Shares held by top ten tradable shareholders without trading restrictionQuantity of tradable shares without,Share
14、holder name (full name),trading restriction at the end of reportperiod,Joincare Pharmaceutical Group Industry Co., LtdTiancheng Industry Co., LtdFirst Shanghai Securities Co., LtdGAOLING FUND,L.P.Dacheng Value Growth Securities Investment FundAgricultural Bank of China- Greatwall Anxin Return MixedS
15、ecurities Investment FundShenzhen Haibin Pharmaceutical Co., LtdBank of Communications- Great Wall Jiufu Core GrowthStock-type Securities Investment Fund (LOF)Bank of Communications Bosera New Growth Stock-typeSecurities Investment FundAgricultural Bank of China LOF,77,510,16745,769,07010,914,5669,0
16、35,8928,726,2676,200,0205,892,9435,005,6254,426,6383,855,422,Domestic non-state-owned legalpersonForeign legal personForeign legal personForeign legal personOthersOthersDomestic non-state-owned legalpersonOthersOthersOthers, Major events3.1 Great changes and reasons of main financial statement items
17、 and financial indexes of the Company Applicable Inapplicable3.1.1 Major changes of items in balance sheet,Item,Amount at the endof period (RMBYuan),Amount at thebeginning ofperiod (RMBYuan),Increase ordecrease,Cause,2,-,-,The 2011 First Quarterly Report of Livzon Pharmaceutical Group Inc.The reloca
18、tion project of new factory of Livzon,Engineering underconstruction,145,477,281.15,317,906,371.50,-54.24%,Pharmaceutical Factory has been partlycompleted, and the engineering underconstruction has been transferred to the fixed,assets.The engineering goods of Limin Pharmaceutical,Engineering goods,4,
19、126,139.10,25,195,844.94,-83.62%,factory under the company has been transferred,to the engineering under construction.,Short-term loansNon-currentliabilities due withinone yearLong-term loansDeferred profit,405,830,410.00400,000.001,200,000.0043,532,140.59,207,460,286.8070,400,000.0066,796,116.2328,
20、556,183.49,95.62%-99.43%-98.20%52.44%,The company issued the short-term bondsduring the report period.The company repaid the loans to banks duringthe report period.The company repaid the loans to banks.The company obtained the special funds forstrategic new industry.,3.1.2 Major change of items in P
21、rofit Statement,Item,Amount in thisperiod (RMBYuan),Amount inprevious period(RMB Yuan),Changerate,Cause,During the report period, the company has,Operating tax andsurtax,8,351,082.68,1,061,215.85,686.94%,withdrawn the City construction tax and educationalexpense surtax, and the enterprises in Guangd
22、ongProvince withdrew the local educational expense,surtax.,Sales expenseFinancial expenseReturns from thechanges of fair valuesNon-operating income,174,436,383.41-1,365,483.721,541,484.9611,690,162.11,133,960,772.161,272,933.713,398,436.323,459,766.27,30.21%-207.27%-54.64%237.89%,The sales income ab
23、out preparations-type productshas increased.The interests income of deposits in banks hasincreased.During the report period, the prices of securitiesmarket have fluctuated.During the report period, the governmentalallowances have increased.,3.1.3 Major change of items in cash flow Statement,ItemTax
24、refundingOther cash receivedrelated to otheroperating activities,Amount in thisperiod (RMBYuan)4,537,980.8943,940,368.04,Amount inprevious period(RMB Yuan)1,969,870.4214,990,719.05,Changerate130.37%193.12%,CauseThe amount from tax refunding received by thetrading company under the Company has increa
25、sed.During the report period, the company obtained thefinancial allowances.,The company funds are sufficient due to the bonds,Cash from loansCash received fromthe issuing of bondsRepayments of loans,59,215,460.00200,000,000.00194,568,876.34,109,851,250.00109,836,600.00,-46.09%77.14%,financing, so th
26、e company has not increased anynew loans.During the report period, the company issued theshort-item bonds.During the report period, the loans that thecompany repaid to banks have increased.,3.2 Analysis and particulars of major events, their effects and resolutions Applicable Inapplicable3,The 2011
27、First Quarterly Report of Livzon Pharmaceutical Group Inc.3.2.1 Non-standard opinions Applicable Inapplicable3.2.2 Particulars about the Company providing the capitals to the controlling shareholders and theirassociated parties or providing the external guaranty by violating the relevant regulations
28、 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 InapplicableThe 2010 second temporary shareholders meeting of Livzon Group was convened on July 30, 2010. The
29、meeting examined andpassed the Proposal of the Company on Applying for the Issuing of the Short-Tem Financing Bonds. The meeting resolution waspublished in Securities Times, China Securities Journal, and Juchao Website (Announcement No. 2010-22) on July 31, 2010. By theend of report period, the comp
30、any has completed the issuing of the 2011 first phase of short-term financing bonds of RMB 200million Yuan, and the above capitals have been completely available on March 7, 2011.3.3 Performance of commitments by the Company, shareholders and actual controllers,Applicable,Inapplicable,(I) Commitment
31、s of the Company1. In 2002, This Company signed the patent license agreement with Korea Yiyang Medicine Company. This agreement approves ourcompanys exclusive and irrevocable right to use the patent PPI (proton pump inhibitor) compound and Yiyang patent in Chinaincluding Hong Kong and Macao for the
32、purpose of production, processing and distribution. The transfer fee will be USD 2.50million, and by December 31, 2008, the company has fully paid it. The company agrees to give Yiyang the commission of 10% ofsales amount during the first three years when this product begins to be sold, 8% of sales
33、amount during the next five years, and 6%of sales amount from the remaining time to July 22, 2014 (the expiry date of agreement). Since 2009, the company has started thesales and paid the commissions in accordance with the agreement.2. In 2005, the company signed the approval and supply agreement wi
34、th Korea LG life science Ltd. (hereinafter referred to as LGCompany), and it grants Gemifloxacin Mesylate with the relevant certificates about intellectual properties and specifies that thepermission fees of the methanesulfonic acid spasmolytic and pellet will be USD1, 000,000 respectively (they hav
35、e been fully paid byDecember 31, 2006). This agreement specifies as follows:Within the first five years from the validity date of the agreement, the companys net sales volume of above final pellet products willamount to 1.5 million bags (3 pellets in each bag) and LG Company will refund USD 500,000
36、after the taxation at one time withintwo months after the company has submitted the net sales volume certificate. At the same time, during the validity period of theagreement (by the end of 2015), the company should pay a royalty of 1.5% of net sales volume after the taxation to LG Companyduring 30
37、days after each quarter. The company has begun the selling activities in 2008 and paid the royalties in accordance with theagreements.Within the first five years from the validity date of the agreement, the company will pay a royalty of 10% of net sales volume afterthe taxation about injection produ
38、cts to LG Company within 30 days after each quarter. The company will pay a royalty of 6% of netsales volume after the taxation about injection products to LG Company within 30 days after each quarter from the sixth businessyear to the expiry date of agreement (by the end of 2019).(II) Commitments o
39、f shareholders holding over 5% of total shares of the companyDuring the report period, the controlling shareholder Joincare made the following commitments while handling the restriction releaseof shares with trading restriction: 1. When Joincare transfers its tradable shares of Livzon Group whose tr
40、ading restriction has beenreleased, it will strictly comply with the relevant regulations of the Guiding Opinions on the Listed Companies Transfer of OriginalShares Released from Trading Restrictions (2008 No. 15 announcement) issued by China Securities Regulatory Commission. (2)Joincare plans to re
41、duce its tradable shares of Livzon Group whose trading restriction has been released through the competing pricetrading system in the stock exchange in the future and the reduced quantity of shares amounts to over 5% within 6 months from thefirst reduction, then Joincare will disclose the reminder a
42、nnouncement about the selling affairs via Livzon Group in 2 trading daysbefore the first reduction.During the report period, Joincare did not decrease the stocks issued by the company.4,1,2,3,4,5,6,7,8,9,-,-,-,The 2011 First Quarterly Report of Livzon Pharmaceutical Group Inc.3.4 Warning and relevan
43、t reasons for the forecast that the accumulative net profit from the beginning of2010 to the end of next report period may suffer from any loss or have any great changes over the sameperiod of previous year Applicable Inapplicable3.5 Particulars about Other Major events3.5.1 Particulars about Securi
44、ties investment Applicable InapplicableUnit :( RMB) YuanPercentage of,No.,SecuritiesType,SecuritiesCode,Securitiesabbreviation,Initial investmentamount (RMBYuan),Holdingquantity(share),Book Values at total Profit and lossthe end of investment in during theperiod (RMB the securities report periodYuan
45、) at the end of (RMB Yuan),period (%),StockStock,0013500152,Kunlun EnergyShenzhenInternational,6,768,572.189,714,948.71,1,500,00017,000,000,15,665,850.009,736,410.00,26.64%16.55%,431,760.90287,840.60,China National,Stock,00883,Offshore Oil,2,759,846.90,560,000,9,244,536.00,15.72%,549,944.86,Corporation,StockStockStock,020070188000438,Phoenix IslandBaili CompanyRainbowgroup,20,079,949.372,257,545.696,020,712.22,2,450,000428,0005,016,000,7,015,942.505,140,487.585,069,671.20,11.93%8.74%8.62%,871,141.11405,821.38-636,974.32,China Railway,Stock,00390,Engineering,1,544,040.12,314,000,1,327,621.83,
