Zhilin Li
[外语]。谢谢Diana，大家早上好。我要感谢各位收听我们的电话会议，并感谢你们对中国医药的持续支持；积极稳步提升销售额仍是我们近几个季度的首要任务。本季度收入增长令人鼓舞。管理层将继续通过积极参与近期省级市场开放来严格推动销售，以获得新的药品招标报价，并确保进一步渗透市场。正在进行的仿制药一致性评价以及中国药品生产注册和审评政策的改革将继续对包括我们在内的中国制药企业当前业绩和未来发展产生重大影响，并可能逐步改变行业商业模式。我们将继续积极适应国家政策导向，进一步评估我们现有产品管线的市场状况和市场竞争，以优化我们的发展战略。现在我将用英语宣读李女士准备好的其余讲话内容。现在我想回顾一下我们2018年第一季度的财务业绩和资产负债表信息。截至2018年3月31日的三个月，收入增长10.1%至360万美元，而2017年同期为330万美元。这一增长主要是由于美元和人民币之间汇率的变化。截至2018年3月31日的三个月，收入为人民币2300万元，较2017年同期的2260万元增长2%。截至2018年3月31日的三个月，毛利润为110万美元，而2017年同期为70万美元。截至2018年3月31日的三个月，我们的毛利率为29.1%，而2017年同期为21.9%。我们毛利率的增长主要是由于2018年第一季度我们产品包装的总体售价上涨。截至2018年3月31日和2017年3月31日的三个月，我们的销售费用均为70万美元。销售费用占截至2018年3月31日三个月总收入的18.8%，而2017年同期为21.8%。由于医疗改革政策导致我们销售实践的调整，我们保留了基本的人员和费用来支持我们的销售和应收账款回收。截至2018年3月31日的三个月，我们的一般及行政费用为50万美元，较2017年同期的40万美元增加了10万美元。一般及行政费用分别占截至2018年3月31日和2017年3月31日三个月总收入的13.6%和12.7%。截至2018年3月31日的三个月，净亏损为30万美元，而一年前同期的净亏损为100万美元。净亏损的减少主要是毛利率提高的结果。转向资产负债表，截至2018年3月31日，公司拥有现金及现金等价物250万美元，而截至2017年12月31日为200万美元。营运资金从2017年12月31日的310万美元增加至2018年3月31日的390万美元，流动比率在2018年3月31日和2017年12月31日分别为1.4倍和1.3倍。截至2018年3月31日的三个月，经营活动产生的现金流量为50万美元，而2017年同期为1万美元。总体而言，我们将继续专注于业务发展并推动销售，相信这将支持未来对我们股东权益的公平评估。现在我们将开放电话会议进行提问。接线员？
Zhilin Li
[Foreign Language]. Thank you Diana and good morning everyone. I would like to thank each of you for tuning with us and for your continued support of China Pharma; actively and steadily increasing sales remains our top priority in recent quarters. It was encouraging to see increase in revenue in this quarter. Management will continue to rigorously promote sales through active participation in recent provincial market openings to receive new drug tender offers and ensure further penetration in to the market. The ongoing generic drug consistency evaluations and reform of the China’s drug production registration and the review policies will continue to have a significant impact on the current performance and the future development of Chinese pharmaceutical manufacturers including us, and may gradually change business patterns of the industry. We will continue to actively adapt to state policy guidance, and further evaluate market conditions for our current existing product pipeline and the competition in the market in order to optimize our development strategy. I will now read the rest of Ms. Li’s prepared remarks in English. Now I would like to review our first quarter 2018 financial results and the balance sheet information. Revenue increased by 10.1% to 3.6 million for the three months ended March 31, 2018, as compared to 3.3 million for the three months ended March 31, 2017. This increase was mainly due to the change in exchanges rates between the USD and the RMB. Revenue for the three months ended March 31, 2018 was RMB 23 million, which is an increase up to 2%, compared to RMB 22.6 million for the same period in 2017. Gross profit for the three months ended March 31, 2018 was 1.1 million compared to 0.7 million in the same period in 2017. Our gross profit margin in the three months ended March 31, 2018 was 29.1% compared to 21.9% in the same period in 2017. The increase in our gross profit margin was mainly due to the increase in general selling price of our product packages in the first quarter of 2018. Our selling expenses for the three months ended March 31, 2018 and 2017 were both 0.7 million. Selling expenses accounted for 18.8% of the total revenue in the three months ended March 31, 2018 compared to 21.8% in the same period in 2017. Because of the adjustment in our sales practices resulting from the healthcare reform policies, we reserve a basic amount of personnel and expenses to support our sales and the collection of the accounts receivable. Our general and administrative expenses for the three months ended March 31, 2018 were 0.5 million, which represented an increase of the 0.1 million compared to 0.4 million in the same period in 2017. General and administrative expenses accounted for 13.6% and 12.7% of our total revenue in the three months ended March 31, 2018 and 2017 respectively. Net loss for the three months ended March 31, 2018 was 0.3 million compared to the net loss of 1 million in the same period a year ago. The decrease in the net loss was mainly the result of the increase in gross profit margin. Turning to the balance sheet, as of March 31, 2018, the company had cash and cash equivalents of 2.5 million compared to 2 million as of December 31, 2017. Working capital increased to 3.9 million as of March 31, 2018 from 3.1 million as of December 31, 2017, and the current ratio was 1.4 and 1.3 times at March 31, 2018 and December 31, 2017 respectively. For the three months ending March 31, 2018, cash flow from the operating activity was 0.5 million, as compared to 0.01 million for the same period in 2017. Overall, we will continue focusing on our business development and promote our sales and believe that this will support the fair evaluation of our shareholders interest in the future. With that we will now open the call up for questions. Operator?
