香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 1 Grand Pharmaceutical Group Limited 遠大醫藥集團有限公司* (於百慕達註冊成立之有限公司) (股份代號: 00512) 截至二零二二年十二月三十一日止年度之 全年業績公佈 | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Research and Development - The company has 114 ongoing R&D projects, with 46 (40.4%) being innovative projects and 68 (59.6%) being generic and other projects[18]. - In the innovative projects, 10 (21.7%) are focused on nuclear medicine for tumor diagnosis and treatment, while 15 (32.6%) are in the field of cardiovascular precision intervention[18]. - The company aims to enhance its profitability and R&D innovation capabilities, supported by strong acquisition and integration abilities[7]. - The strategic focus is on "stable growth, strong innovation, and strategic layout," with a commitment to meeting patient needs and responding to market developments[7]. - The company is pursuing a dual-driven strategy of independent R&D and global expansion, aiming for a new development pattern that promotes domestic and international dual circulation[7]. - The company has made significant investments in advanced technologies to enrich and improve its product pipeline[7]. - The company emphasizes the integration of raw material formulations to enhance its industrial chain structure[7]. - The company has established several R&D centers, including the Wuhan Optics Valley International R&D Center and the Nanjing mRNA R&D Center, to strengthen its capabilities in innovative drug development and mRNA technology[36]. - The company has established multiple international R&D centers, including a 13,000 square meter facility in Wuhan focused on ophthalmology and respiratory treatments, equipped with advanced research instruments[40]. - The R&D team consists of over 630 personnel, with nearly 400 holding master's or doctoral degrees, representing over 60% of the team[117]. - The company has established multiple R&D platforms globally, including mRNA and DNA technology platforms, focusing on oncology and infectious disease treatments[116]. Product Development and Pipeline - The product pipeline includes innovative products like AuroLase, for which the company holds priority negotiation rights[20]. - The company’s innovative drug STC3141 for treating ARDS has completed patient enrollment in a Phase Ib clinical trial in China, with the clinical research report expected in the next 6 months[23]. - The company has received formal acceptance from NMPA for IND applications of TLX591-CDx for prostate cancer and TLX250-CDx for ccRCC[22]. - The company has completed the first patient enrollment in a Phase III clinical study for Ryaltris nasal spray for treating seasonal allergic rhinitis in patients aged 12 and above in China[23]. - The company has obtained marketing approval from NMPA for its innovative product Yttrium-90 microsphere injection for treating unresectable colorectal cancer liver metastases[23]. - The company has expanded its product pipeline with a new innovative drug for treating severe allergic reactions, which has also received IND acceptance in China[34]. - The innovative drug GPN00153 (CBT-001) for treating pterygium has completed Phase II clinical trials in the U.S. and is expected to enter Phase III trials, with IND application in China anticipated in the second half of 2022[45]. - The company is developing a new anti-inflammatory eye drop GPN00833, which has shown effective results in Phase II trials in the U.S. and is also expected to submit an IND application in China in the second half of 2022[46]. - The global innovative drug GPN00136 (BRM421) for dry eye syndrome has completed Phase II clinical studies in the U.S., demonstrating high safety and potential for rapid symptom relief, with an IND application in China expected by the end of 2022[47]. - The innovative product Yigantai® Yttrium-90 microsphere injection was approved by NMPA in January 2022 for treating unresectable colorectal cancer liver metastases, providing a new treatment option for patients[76]. Financial Performance - The company’s revenue for the first half of 2022 was reported at HKD 4,567 million, reflecting a compound annual growth rate (CAGR) of 13.0% from 2019 to 2021[26]. - The company recorded revenue of approximately HKD 5,212.58 million, an increase of about 14.1% compared to the same period in 2021[32]. - Gross profit margin was approximately 62.5%, a decrease of about 0.8 percentage points compared to 63.3% in the same period last year[32]. - Net profit attributable to shareholders was approximately HKD 710.41 million, a decrease of about 40.92% year-on-year, primarily due to a fair value loss of approximately HKD 379.56 million from the investment in Telix[32]. - The biotechnology segment generated revenue of approximately HKD 1,488.17 million, a year-on-year increase of about 32.0%, with the amino acid segment contributing approximately HKD 1,251.43 million, up about 40.3%[110]. - The pharmaceutical technology products recorded revenue of approximately HKD 3,598.61 million, an increase of about 7.5% year-on-year, driven by the gradual introduction of new products[109]. - The ophthalmology segment achieved revenue of approximately HKD 660.88 million, reflecting a year-on-year increase of 14.7% due to steady growth in core products[109]. - The group recorded revenue of approximately HKD 5,212.58 million for the six months ended June 30, 2022, representing a year-on-year increase of about 14.1%[109]. - The company reported a profit before tax of HKD 915,700,000, down from HKD 1,408,536,000 in the previous year, reflecting a decrease of approximately 35%[164]. - Net profit for the period was HKD 697,923,000, a decline from HKD 1,204,237,000 in the prior year, which is a decrease of around 42%[164]. Strategic Partnerships and Acquisitions - The company signed a share acquisition agreement with Hubei Bafeng to acquire 100% equity for up to RMB 270 million, which will allow the company to hold over 70% of the registered numbers for amino acid raw materials in China[22]. - The company entered into a strategic cooperation agreement with XELTIS, acquiring approximately 11% equity for a total of €15 million, along with rights to future products in the dialysis field in Greater China[22]. - The company has signed a strategic cooperation agreement with Wenzhou Medical University to acquire rights for a new eye formulation GPN00884, with a phased payment of RMB 70 million based on R&D progress[23]. - The company has established a distribution agreement with Sirtex Medical, appointing Beijing Purweiye as the exclusive agent for Sirtex products in China[22]. - The company reached a strategic cooperation agreement with XELTIS AG to acquire approximately 11% equity for €15 million and exclusive development rights for innovative vascular graft products in Greater China[129]. Market Position and Competitive Advantage - The company has a diverse business structure that effectively strengthens its comprehensive advantages[7]. - The company ranked 24th in the "Top 100 Chinese Chemical Pharmaceutical Enterprises" list in July 2022[38]. - The company has established a strong presence in the cardiovascular precision intervention sector, with a focus on three key areas: channel management, structural heart disease, and electrophysiology, aiming for international expansion and differentiated innovation[136]. - The company holds 95 invention patents and has contributed to nearly 40 national industry standards in the biotechnology sector, focusing on high-quality amino acid production[102]. - The core product, cysteine series, ranks first in global market position and production capacity, while taurine ranks second globally, benefiting from international business expansion strategies[102]. Regulatory and Compliance - The company has received regulatory approvals for radioactive drug production and is actively participating in the development of clinical evaluation guidelines for radioactive internal treatment drugs[74]. - The company has established an audit committee to oversee the integrity of financial statements and risk management systems[159]. - The company has adhered to the corporate governance code throughout the reporting period, ensuring compliance with relevant regulations[159]. Challenges and Legal Matters - The company has received court rulings related to product quality issues, with compensation payments totaling approximately RMB 32.06 million, while ongoing litigation is not expected to significantly impact the company[140]. - The company has successfully reclaimed RMB 10 million from a joint bank account as part of a legal settlement regarding performance commitments from the acquisition of Tianjin Jingming, with an additional RMB 11.20 million to be returned[141].

Product Development and Innovation - The company has over 90 products listed in the National Essential Medicines List (2018 version) and more than 200 products included in the National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug List (2021 version) [6] - The company is focusing on three innovative strategies: precision interventional diagnosis and treatment for cardiovascular diseases, interventional nuclear medicine and immunotherapy for tumors, and critical care and anti-infection [6] - In the precision interventional diagnosis and treatment sector, the company has ten products in reserve, with two vascular intervention products already approved for sale in China [7] - The company aims to achieve phased and tiered launches of innovative products in the coming years, driving significant growth in this sector [7] - The company is actively developing innovative products in the fields of respiratory and ENT, cardiovascular emergency, and has five products in late-stage clinical trials or already launched overseas [6] - The company is implementing a strategy of "high walls, deep digging, and accumulating grain" to expand and realize new growth points in technology innovation [6] - The company is positioned as a leading platform for precision interventional diagnosis and treatment in China and aims to become a global leader in the field of tumor diagnosis and critical care [6] - The company has established a comprehensive layout in the field of radionuclide-drug conjugates (RDC), with 16 innovative products covering 13 types of cancer, including liver cancer and colorectal cancer [8] - The flagship product, SIR-Spheres® Y-90 microsphere injection, has received approval from the National Medical Products Administration (NMPA) in China for treating unresectable colorectal cancer liver metastases after standard treatment failure [8] - The company aims to establish at least one Class A production platform and complete the pipeline layout of over 25 radionuclide therapeutic products within the next 1-2 years [8] - In the severe and anti-infection field, the company has four innovative drugs in the pipeline, including STC3141 and APAD for treating sepsis and ARDS, with six clinical approvals across five countries [9] - The mRNA vaccine R&D center established in partnership with eTheRNA Immunotherapies NV is now operational, equipped to meet clinical research requirements for therapeutic and preventive mRNA vaccines [9] - The company is focused on addressing unmet clinical needs in the oncology and immunotherapy sectors, enhancing its product pipeline and industry layout [8] - The company has a strong emphasis on innovation, with 43 ongoing innovative projects and a commitment to developing advanced medical devices and therapies [27] Financial Performance - The company's revenue for 2021 was HKD 8,597,975, an increase of 35.3% compared to HKD 6,352,919 in 2020 [49] - The profit before tax for 2021 was HKD 2,785,832, up 34.3% from HKD 2,073,583 in 2020 [49] - The net profit for 2021 reached HKD 2,405,032, representing a growth of 35% compared to HKD 1,781,209 in 2020 [49] - Total assets increased to HKD 21,057,030 in 2021, a rise of 24.4% from HKD 16,984,345 in 2020 [50] - Total liabilities rose to HKD 7,614,168 in 2021, up 35% from HKD 5,640,136 in 2020 [50] - The net assets for 2021 were HKD 13,442,862, an increase of 18.5% compared to HKD 11,344,209 in 2020 [50] - The pharmaceutical manufacturing industry in China saw a revenue growth rate of approximately 20.1% in 2021 [57] - The profit total for the pharmaceutical industry increased by about 77.9% in 2021 [57] - The company recorded revenue of approximately HKD 8,597,980,000 for the year ended December 31, 2021, representing a year-on-year increase of about 35.3% [60] - The gross profit margin for the year was approximately 61.0%, down from 63.5% in the previous year, a decrease of about 2.5 percentage points [60] - The profit attributable to the owners of the company for the year was approximately HKD 2,402,560,000, an increase of about 34.0% compared to the previous year [60] Market Expansion and Strategic Partnerships - The company has established stable long-term partnerships with numerous high-quality overseas clients, which supports its continuous stable development [6] - The company is committed to a dual system of local and global R&D and production, enhancing its R&D capabilities while accelerating product launches [7] - The company has expanded its global footprint, holding significant stakes in key joint ventures in Australia and the USA, and establishing strategic partnerships across North America, Europe, Oceania, and Asia [9] - The company has entered into a strategic collaboration with ITM to obtain exclusive development, production, and commercialization rights for three globally innovative RDC products in Greater China for a total of up to €520 million in licensing fees and milestone payments [33] - The company acquired approximately 17.8% equity in InnovHeart for about €43.8 million, gaining exclusive rights for the development, production, and commercialization of the Saturn device for mitral valve replacement in mainland China, Hong Kong, Macau, and Taiwan [33] - The company has secured long-term exclusive commercialization rights for Jext® pre-filled adrenaline auto-injectors in mainland China, Macau, and Taiwan for a total of €12 million in upfront and milestone payments [33] Research and Development - The company operates five technical R&D platforms and five R&D centers globally, with production bases in the USA, Canada, Germany, and Singapore [25] - The company has a pipeline of 106 projects in development, with 21 production approvals and 8 new drug applications submitted during the year [77] - The company is focusing on internationalization and innovation in key therapeutic areas, including cardiovascular, oncology, critical care, and respiratory medicine [77] - The company has launched 10 innovative products in the cardiovascular precision intervention field, covering six strategic markets including coronary intervention and peripheral vascular intervention [78] - The company is developing a new medical device, CoRISMA, for end-stage heart failure patients, utilizing advanced wireless power transmission technology [80] - The company has established four global R&D platforms and five R&D centers, enhancing its innovation capabilities [88] - The R&D team has grown by 22% year-on-year, totaling 643 personnel, with nearly 60% holding master's or doctoral degrees [89] Corporate Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure [136] - The company has established a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance performance [137] - The audit committee held two meetings during the year to review accounting principles and discuss financial reporting matters, ensuring compliance and integrity [140] - The remuneration committee reviewed the compensation policies for all directors and senior management, reflecting individual performance and responsibilities [143] - The nomination committee evaluated the board's structure and independence of non-executive directors, ensuring effective governance practices [144] - The company has established a compliance management team to oversee anti-corruption measures, especially in high-risk areas [182] - The company has implemented a mechanism for anonymous compliance reporting to detect and address misconduct [182] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to integrating environmental, social, and governance (ESG) considerations into its operations and decision-making processes [158] - The group has established effective management policies and internal control systems regarding ESG matters during the reporting period [158] - The group emphasizes the integration of environmental, social, and governance (ESG) factors into daily operations, aiming for sustainable development and high product quality [159] - The group has not experienced any major environmental pollution incidents this year and has not been penalized by environmental authorities [162] - The group is committed to enhancing its environmental management system and has established a systematic inspection mechanism for environmental facilities, conducting checks every six months [163] - The group has implemented various methods for managing emissions, including tail gas absorption and dust filtration, to ensure compliance with pollution discharge standards [164] Employee and Community Engagement - The company employed approximately 10,029 staff as of December 31, 2021, an increase from about 8,722 staff as of December 31, 2020, reflecting a growth in human resources [129] - The average training hours for male and female employees were 86 hours and 79 hours respectively, with senior and middle management receiving an average of 73 hours and 95 hours of training [176] - The group donated approximately RMB 1 million worth of medical supplies to flood-affected areas in Henan in July 2021, and RMB 1.7 million worth of medicines to the Shaanxi Red Cross in June 2021 [178] - The group has established a comprehensive quality control system for drug production, with most products certified by GMP/GSP [180] - In 2021, the group received 236 customer complaints, with a 100% satisfaction rate for responses to these complaints [180]

Financial Performance - The company recorded revenue of approximately HKD 45.7 billion for the first half of 2021, representing a year-on-year growth of about 40.3%[4] - The net profit attributable to the company's owners for the same period was approximately HKD 12.0 billion, reflecting a year-on-year increase of approximately 67.4%[4] - Revenue for the first half of 2021 reached HKD 4,567 million, compared to HKD 3,256 million in the first half of 2020, representing an increase of approximately 40%[16] - Net profit attributable to shareholders for the first half of 2021 was HKD 1,203 million, up from HKD 719 million in the first half of 2020, marking a growth of about 67%[18] - The gross profit margin for the period was approximately 63.3%, an increase of about 0.6 percentage points compared to 62.7% in the same period of 2020[61] - The company reported revenue of HKD 4,566,530,000 for the six months ended June 30, 2021, representing a 40.1% increase from HKD 3,255,784,000 in the same period of 2020[180] - Net profit for the period was HKD 1,204,237,000, reflecting a 70.7% increase from HKD 705,816,000 in the prior year[180] - The company declared a dividend of HKD 6 per share for the reporting period, compared to no dividends declared in the previous year[185] Research and Development - The company has 115 ongoing research projects, with an investment of approximately HKD 1.53 billion in R&D and new projects[26] - The product pipeline includes 41 innovative projects, accounting for 35.7% of the total, with a focus on oncology, cardiovascular, and respiratory treatments[27] - The company operates four overseas R&D centers located in the USA, Belgium, and Australia, employing over 600 R&D personnel[26] - The company has established four technology R&D platforms and five R&D centers globally to support its innovation strategy[58] - The company achieved 8 R&D milestones for innovative projects during the reporting period[78] - The company has developed 9 innovative products in the field of cardiovascular precision intervention, covering five strategic areas including vascular intervention and neurointervention[79] Product Development and Pipeline - The company has 13 global innovative products in its pipeline, with 10 products currently in clinical trials worldwide, covering 10 major solid tumor treatment areas[10] - The oncology product pipeline includes 10 products in various stages, with expected market launches ranging from 2021 to 2028[33] - The company aims to launch several key products, including LEGFLOW® for peripheral vascular diseases expected in 2024 and NOVASIGHT for coronary imaging anticipated in 2023[32] - The company is focusing on innovative products with market and technical barriers, particularly in the pharmaceutical formulations and medical devices sector, to drive growth[61] - The company is focusing on expanding its product offerings in the field of radioactive nuclide products, establishing a solid foundation for its SIR-Spheres® Yttrium-90 resin microspheres and six RDC products[132] Strategic Partnerships and Collaborations - The company has established strategic partnerships and equity collaborations with several international firms, expanding its global footprint across North America, Europe, Australia, and Asia[13] - The company has entered a strategic partnership with CoRISMA MCS Systems, acquiring approximately 22.2% equity and rights to innovative medical devices for heart failure treatment[36] - The company has signed an exclusive licensing agreement with ALK-Abelló A/S for the Jext® auto-injector for severe allergic reactions, enhancing its product portfolio[36] - The company has entered into a collaboration with OncoSec for a Phase III study of TAVO™ in combination with KEYTRUDA® for advanced metastatic melanoma[37] - The company has established a joint venture with eTheRNA to develop mRNA therapies, enhancing its capabilities in this emerging field[11] Market and Industry Trends - The Chinese healthcare market is expected to see significant growth due to an aging population and increased healthcare spending, providing opportunities for the company[55] - The demand for antiviral drugs is projected to grow at a compound annual growth rate of 7.6%, potentially reaching RMB 59.5 billion by 2024[141] - The Chinese medical device market reached approximately RMB 734.1 billion in 2020, with a year-on-year growth of 18.3%[137] - The market is expected to exceed RMB 1 trillion by 2023, indicating significant future growth potential[137] Financial Position and Assets - As of June 30, 2021, the group's current assets amounted to HKD 6,767,130,000, an increase from HKD 5,318,960,000 as of December 31, 2020, while current liabilities were HKD 4,432,670,000, up from HKD 4,302,930,000[150] - The group's cash and bank balances as of June 30, 2021, were HKD 2,337,520,000, compared to HKD 1,836,700,000 as of December 31, 2020[150] - The outstanding bank loans as of June 30, 2021, were approximately HKD 2,842,980,000, an increase from HKD 2,345,690,000 as of December 31, 2020[151] - The debt-to-equity ratio as of June 30, 2021, was approximately 23.4%, compared to 20.9% as of December 31, 2020[151] - Total assets as of June 30, 2021, amounted to HKD 18,922,725,000, an increase from HKD 16,987,345,000 as of December 31, 2020, indicating a growth of approximately 11.4%[186] Corporate Governance and Management - The company has established an audit committee to oversee the integrity of financial statements and risk management systems[171] - The company has adhered to the corporate governance code throughout the reporting period[170] - The board of directors has undergone changes, with new executive directors appointed effective June 1, 2021[176] - The company is actively enhancing its investor relations management, which has led to recognition as the "Best Pharmaceutical and Medical Company" in the 2020 Golden Hong Kong Stocks Awards[128] Legal and Compliance Matters - The company is pursuing legal actions related to product quality issues, with a total of approximately RMB 5.14 million involved in ongoing litigation[145] - The company has recovered approximately RMB 6.6 million from the original shareholders of Tianjin Jingming as part of the enforcement of court judgments related to product quality incidents[146]

年 報 2020 China Grand Pharmaceutical and Healthcare Holdings Limited 遠大醫藥健康控股有限公司 （於百慕達註冊成立之有限公司） 股份代號：00512 New_E206342N_Trigiant (AR20)-0421 1742 (Incorporated in Bermuda with limited liability) Stock Code: 00512 China Grand Pharmaceutical and Healthcare Holdings Limited 遠大醫藥健康控股有限公司 China Grand Pharmaceutical and Healthcare Holdings Limited 遠大醫藥健康控股 有限公 司 Annual Report 2020 年報 目 錄 | 公 | 司 | 資 | 料 | | | | | | | | | | 2 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

Financial Performance - The company recorded revenue of approximately HKD 3,255,780,000, a year-on-year decrease of 9.2%[6] - The profit attributable to owners for the period was approximately HKD 718,510,000, representing a year-on-year increase of 31.4%[6] - Excluding the impact of RMB exchange rate fluctuations, the profit attributable to owners increased by approximately 38.3% year-on-year[6] - Revenue from pharmaceutical formulations and medical devices was approximately RMB 1,901,970,000, a decrease of about 4.9% compared to RMB 1,998,830,000 in the same period of 2019, primarily due to sales pressure on prescription drugs during the pandemic[38] - Revenue from respiratory and ENT products was approximately RMB 686,430,000, a decrease of about 16.0% compared to RMB 817,650,000 in the same period of 2019, with the key product "Qie Nuo" seeing a revenue drop of approximately 16.0%[39] - Revenue from cardiovascular drugs increased by approximately 2.2% to RMB 665,050,000, with core products generating approximately RMB 622,850,000, a growth of about 0.7% year-on-year[40] - Revenue from biotechnology and health products was approximately RMB 697,710,000, a decrease of about 6.6%, although amino acid products grew by approximately 13.0% to RMB 286,780,000[41] - The company reported revenue of HKD 3,255,784, a decrease of 9.2% compared to HKD 3,587,058 in the same period last year[91] - Gross profit for the period was HKD 2,040,589, down from HKD 2,272,479, reflecting a gross margin of approximately 62.6%[91] - The company achieved a profit before tax of HKD 871,321, an increase of 28.3% from HKD 679,487 in the previous year[91] - Net profit for the period was HKD 705,816, compared to HKD 555,554, representing a year-over-year increase of 26.9%[92] Investments and Acquisitions - The group successfully issued a total of 172,000,000 new shares, raising approximately HKD 1,013,600,000[25] - The group committed RMB 100,000,000 to the Nanjing Fund for investments in healthcare, pharmaceuticals, and medical devices[26] - The group invested RMB 30,000,000 to acquire approximately 9.7% equity in Xing Shen Biotech and secured global exclusive rights for the innovative product VSV-GPM for colorectal cancer treatment[26] - The group made a capital commitment of USD 50,000,000 to the Xinyin Fund, which aims to raise a total of USD 200,000,000 for investments in leading pharmaceutical companies[27] - The group invested EUR 9,000,000 to acquire approximately 12% of Class B preferred shares in eTheRNA, with plans for strategic cooperation on mRNA production technology[28] - The company plans to acquire 100% equity in Nanjing Kainite, enhancing its product line in neurointervention with a new thrombectomy stent for ischemic stroke treatment[59] Research and Development - The company continues to invest in innovative pipelines across multiple therapeutic areas, focusing on precision intervention, tumor immunotherapy, and antiviral treatments[6] - The company has a robust pipeline of products in development, including RESTORE® and APERTO® for various medical conditions[22] - The company has a total of approximately 74 projects in its research pipeline, focusing on both global expansion and independent research[46] - The company invested over RMB 900 million in research projects, including preclinical research, clinical trials, and registration for market launch[50] - The group’s gene immunotherapy product TAVO™ achieved a 41% overall response rate in treating advanced metastatic melanoma[29] - The group received approval for the HIP project to conduct Phase II clinical trials for treating COVID-19 ARDS in Australia[29] - The group developed the first drug-coated balloon for dialysis patients in China, receiving a medical device registration certificate from NMPA[30] - The group acquired technology and related intellectual property for the APAD new drug for treating sepsis, enabling product development and sales[31] - The company has established an international R&D center in Wuhan, China, with over 30 renowned scientists and a total R&D team exceeding 480 members[49] - The company has obtained exclusive rights for the commercialization of the innovative dry eye treatment BRM421, which has completed Phase II clinical trials[48] - The innovative drug STC3141 for treating sepsis has been approved for Phase II clinical trials in Australia for COVID-19 related ARDS[48] - The company has filed over 10 patent applications and received 20 patent grants during the reporting period, with a total of over 300 valid patents[52] Market Strategy and Expansion - The company aims to enhance its global presence and advanced technology through a dual-driven strategy of self-research and global expansion[7] - The company is focusing on the development of key products in the antiviral and respiratory fields to strengthen its competitive advantage[7] - The group is focusing on high-barrier product lines and expanding its market presence in the precision interventional treatment sector, aiming to establish a comprehensive interventional diagnosis and treatment platform[65] - The group has launched two key drug-coated balloon products, RESTORE DEB and APERTO OTW, which are expected to significantly impact the market due to their unique indications[66] - The SIR-Spheres® Yttrium-90 resin microspheres, the only FDA-approved internal radiation product for liver cancer, are progressing well in China, addressing a significant market need[66] - The breakthrough in clinical research for the TAVO™ gene immunotherapy product could tap into a market potential of hundreds of billions of dollars, addressing 60%-90% of patients unresponsive to current immunotherapy[66] - The company plans to enhance its e-commerce strategy to further expand its sales channels and promote health upgrades[69] Financial Position and Assets - As of June 30, 2020, the company's current assets amounted to HKD 4,372,980,000, an increase from HKD 3,816,320,000 as of December 31, 2019[70] - The company's current liabilities as of June 30, 2020, were HKD 4,404,460,000, compared to HKD 3,589,560,000 at the end of 2019, resulting in a current ratio of approximately 0.99[70] - The company's cash and bank balances as of June 30, 2020, were HKD 1,396,060,000, up from HKD 1,059,270,000 at the end of 2019[70] - The company's outstanding bank loans as of June 30, 2020, were approximately HKD 2,699,450,000, an increase from HKD 2,010,160,000 at the end of 2019[70] - The company's debt ratio, calculated as bank loans to shareholders' equity, was approximately 31.0% as of June 30, 2020, compared to 24.0% at the end of 2019[70] - The company’s total assets as of June 30, 2020, were HKD 10,688,076, up from HKD 10,223,744 at the end of 2019[94] - The company's equity attributable to owners increased to HKD 8,721,471 from HKD 8,375,267, reflecting a growth of 4.1%[94] - The company reported a basic earnings per share of HKD 21.27, compared to HKD 17.22 in the previous year, indicating a 23.7% increase[92] - The company’s total liabilities increased to HKD 4,404,456 from HKD 3,589,563, indicating a rise of 22.7%[93] Shareholder Information - Outwit Investments Limited holds 1,671,671,149 shares, representing 49.49% of the equity[78] - Hu Kaijun and his spouse Zhou Tong collectively own 1,998,730,302 shares, accounting for 59.17% of the equity[78] - Shanghai Yuanda Chanin Investment Management Co., Ltd. has an equity interest of 286,039,153 shares, which is 8.47%[78] - CDH Giant Health I Limited holds 356,648,142 shares, representing 10.56% of the equity[78] - GL Healthcare Investment LP is the beneficial owner of 44,570,000 shares[80] - GL China Long Equity Opportunities Fund SPV LP owns 53,672,000 shares[81] - Lion River I N.V. is deemed to have an interest in 279,311,959 shares[82] - GL Saino holds 181,069,959 shares, representing 5.36% of the equity[81] Compliance and Governance - The company did not buy, sell, or redeem any of its listed securities during the six months ending June 30, 2020[84] - The company has complied with the relevant provisions of the standard code of conduct for securities trading by directors[84] - The company maintained active communication with investors through various channels, including roadshows and online strategy meetings, attracting nearly 200 institutional investors[61] - The company's investor relations management was recognized in March 2020, ranking on the "Best IR Hong Kong Stock Company (H Shares)" list by New Fortune[61] Legal and Contingent Liabilities - Tianjin Jingming's original shareholders are required to compensate approximately RMB 8,090,000 due to product quality incidents, with ongoing litigation for other related cases[62] - The group has obtained a court ruling allowing the recovery of RMB 10,000,000 from the sellers of Tianjin Jingming, along with an additional RMB 21,200,000 due to unmet performance commitments[63] - The company has no significant contingent liabilities as of June 30, 2020, consistent with the previous year[123]

Financial Performance - The company achieved a revenue of approximately HKD 6.59 billion, with a net profit attributable to shareholders of about HKD 1.15 billion, representing a year-on-year growth of approximately 61.4%[4] - The company's revenue for the year ended December 31, 2019, was HKD 6,590,635, an increase from HKD 5,958,355 in 2018, representing a growth of approximately 10.6%[29] - The pre-tax profit for the same period was HKD 1,355,973, compared to HKD 883,899 in 2018, indicating a growth of about 53.3%[29] - The net profit attributable to shareholders for 2019 was HKD 1,125,488, up from HKD 736,439 in 2018, reflecting a growth of approximately 52.8%[29] - The company reported a total comprehensive income of HKD 1,060,419 for 2019, compared to HKD 586,083 in 2018, indicating an increase of about 80.7%[174] - The company's profit for the year was HKD 1,150,948,000, reflecting a significant increase from the previous year's profit[179] Product Development and Innovation - The company has established a leading position in the domestic market with several barrier products and exclusive varieties in the fields of respiratory and ophthalmology, with innovative products for dry eye syndrome, pterygium, and allergic rhinitis in late clinical stages[4] - The company plans to expand its product pipeline in the precision interventional treatment field and has received approvals for innovative products such as the RESTORE DEB balloon for coronary intervention and the APERTO OTW drug-coated balloon for renal dialysis in China[5] - The company has initiated clinical research for innovative antiviral products, including a collaboration with Griffith University for a treatment for parainfluenza and a sepsis product from the Australian National University[5] - The company aims to strengthen its leadership position by continuously enriching its product pipeline and increasing R&D investment, focusing on precision interventional treatment and antiviral fields[6] - The company has over 90 products included in the National Essential Medicines List (2018 edition) and more than 200 products in the National Medical Insurance List (2019 edition)[12] - The company launched the first generic glaucoma treatment in China, gaining production approval for the drug in January 2019, marking a significant breakthrough in the field[43] Research and Development - The company has established a research and development center in Australia and signed a collaboration agreement with Griffith University for the global development of an innovative product for treating parainfluenza[11] - The R&D team consists of over 300 members, with nearly 60% holding master's or doctoral degrees, enhancing the company's innovation capabilities[42] - The company has over 70 projects currently under research and development, focusing on cardiovascular emergency, respiratory, oncology, and ophthalmology treatments[41] Market Expansion and Partnerships - The company has established stable partnerships with numerous overseas clients in biotechnology and health products, contributing to its sustained high-speed development[4] - The company is focused on international expansion through a dual strategy of independent R&D and international acquisitions, aiming to enhance product competitiveness and operational standards[21] - The company has a strong competitive advantage in domestic and international business development capabilities, leading technology introduction, and excellent marketing and sales capabilities[6] - The company has a significant stake in various subsidiaries, with ownership percentages ranging from 49.69% to 99.84%, ensuring control over key operations[25] Financial Position and Assets - As of December 31, 2019, the group's current assets amounted to HKD 3,816,320,000, an increase from HKD 3,429,050,000 on December 31, 2018, while current liabilities decreased to HKD 3,589,560,000 from HKD 4,966,850,000[72] - The current ratio improved to approximately 1.06 as of December 31, 2019, compared to 0.69 on December 31, 2018[72] - Total assets as of December 31, 2019, were HKD 10,223,744, compared to HKD 8,529,811 in 2018, showing an increase of approximately 19.9%[177] - The company's goodwill and intangible assets related to the pharmaceutical business amounted to approximately HKD 480,321,000 and HKD 794,723,000 respectively as of December 31, 2019[165] Corporate Governance and Compliance - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a balance of power and independence[91] - The audit committee held two meetings during the fiscal year ending December 31, 2019, to review the accounting principles adopted by the group and discuss financial reporting matters[93] - The board confirmed its overall responsibility for the effectiveness of the group's risk management and internal control systems, conducting regular reviews throughout the fiscal year[99] - The company has implemented policies to ensure the accuracy, completeness, and timeliness of public disclosures regarding inside information[101] Environmental and Social Responsibility - The company invested over RMB 18 million in environmental protection facilities to enhance pollution control capabilities and reduce emissions[108] - Wastewater discharge was reduced from approximately 500 tons per day to about 220 tons per day, achieving an efficiency improvement of over 50% in wastewater treatment systems[109] - The company emphasizes a fair employment environment, ensuring equal pay for equal work and compliance with local labor laws[115] - The company actively engages in community service and poverty alleviation efforts, including infrastructure improvements in rural areas[119] Shareholder Information - The company reported a final dividend of HKD 0.096 per share, totaling approximately HKD 324,250,000 for the year ended December 31, 2019, compared to HKD 0.086 per share and HKD 290,470,000 in 2018[126] - The board of directors will consider various factors, including actual and expected financial performance, before declaring dividends, ensuring sufficient reserves for future growth[125] - The company has not disclosed any tax exemptions or reliefs available to shareholders due to their holdings[155]

Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately HKD 3,587,060,000, representing a growth of 10.9% compared to the same period in 2018[6]. - Profit attributable to the company's owners for the same period was approximately HKD 546,960,000, reflecting an increase of 73.4% year-on-year[6]. - Excluding the impact of RMB depreciation, revenue growth was approximately 18.1%, and profit growth was about 86.8% compared to the previous year[6]. - The company's revenue for the six months ended June 30, 2019, was approximately HKD 3,587,060,000, representing a year-on-year growth of about 10.9%[12]. - The net profit attributable to the company's owners for the same period was approximately HKD 546,960,000, reflecting a year-on-year increase of about 73.4%[12]. - Gross profit for the period was HKD 2,272,479,000, up from HKD 1,867,332,000 in the previous year, indicating a growth of about 21.7%[56]. - The net profit for the period was HKD 555,554,000, compared to HKD 338,306,000 in the prior year, reflecting an increase of approximately 64.3%[53]. - Total comprehensive income for the period was HKD 640,722,000, compared to HKD 306,705,000 in the previous year, showing an increase of approximately 108.5%[55]. Revenue Breakdown - Revenue from pharmaceutical formulations and medical devices was approximately RMB 1,998,830,000, a growth of about 28.4% compared to RMB 1,557,270,000 in the same period of 2018[13]. - Revenue from the ophthalmology segment was approximately RMB 354,530,000, marking a growth of about 13.1% year-on-year, driven by the core non-prescription eye drop product[14]. - Revenue from cardiovascular drugs reached approximately RMB 650,830,000, an increase of about 57.1% compared to the previous year, with core products contributing approximately RMB 618,730,000, up by about 61.1%[16]. - Revenue from biotechnology and nutritional products was approximately RMB 746,980,000, reflecting a year-on-year growth of about 5.0%[17]. - Revenue from China for the six months ended June 30, 2019, was HKD 2,867,224,000, compared to HKD 2,479,439,000 in 2018, indicating a growth of about 15.6%[74]. Expenses and Liabilities - Distribution costs and administrative expenses were approximately HKD 1,259,670,000 and HKD 329,830,000, respectively, with distribution costs accounting for about 35.1% of revenue[19]. - Financial expenses for the six months ended June 30, 2019, were approximately HKD 84,900,000, a significant decrease of about 18.7% compared to HKD 104,370,000 in the same period of 2018[21]. - The company's income tax for the six months ended June 30, 2019, was HKD 123,933,000, compared to HKD 71,276,000 for the same period in 2018, representing an increase of 73.9%[77]. - Employee costs, including wages and salaries, amounted to HKD 535,549,000 for the six months ended June 30, 2019, up from HKD 493,991,000 in 2018, reflecting a growth of 8.4%[79]. - The total liabilities as of June 30, 2019, were HKD 2,098,888,000, a decrease from HKD 2,342,539,000 as of December 31, 2018, showing a reduction of 10.4%[91]. Investments and Acquisitions - The acquisition of 55% equity in Shanghai Xudong Haipu Pharmaceutical Co., Ltd. contributed an unaudited operating income of approximately RMB 568,910,000 in the first half of 2019[6]. - The company holds a 49% equity stake in Sirtex Medical Limited, which reported an unaudited operating income of approximately USD 80,310,000 in the first half of 2019[7]. - The group acquired Sirtex, gaining access to an international platform for the development and commercialization of a radiotherapy product for late-stage liver cancer, positioning itself as a leader in nuclear medicine in China[26]. - The company has invested in Conavi Medical Inc. and obtained exclusive rights for two innovative cardiovascular diagnostic devices in China[7]. - The company completed the issuance of 228,148,148 shares at HKD 5.00 each, raising approximately HKD 1,141,000,000 for acquisition purposes[32]. Research and Development - The company has over 30 ongoing research projects, focusing on core areas such as cardiovascular drugs and rare diseases[9]. - The company is actively developing new products, including a novel combination nasal spray, Ryaltris, in collaboration with Glenmark Specialty S.A.[7]. - The company is in the process of clinical trials for three balloon catheter products in collaboration with CARDIONOVUM GmbH, with promising results reported[7]. - Research and development costs for the six months ended June 30, 2019, were HKD 95,625,000, down from HKD 107,813,000 in 2018, representing a decline of 11.3%[81]. Market Opportunities - The Chinese pharmaceutical market is undergoing significant reforms, with the National Medical Products Administration (NMPA) overseeing drug development, production, and application management, which presents both challenges and opportunities for pharmaceutical companies[23][24]. - The NMPA reports that cardiovascular diseases, cancers, respiratory diseases, and diabetes account for over 70% of the total disease burden in China, representing a significant market opportunity for products targeting these major diseases[24]. - The group has established a strong foundation in the treatment areas of cardiovascular diseases, cancers, and respiratory diseases, with a focus on product variety, market share, and commercialization capabilities[24]. - The group anticipates that its exclusive respiratory disease product will exceed RMB 3 billion in sales, while also expanding its pipeline in the ENT field with innovative products[26]. - The group emphasizes that future opportunities in the generic drug market will favor companies with fast approval processes, low production costs, and high product quality[26]. Shareholder Information - Outwit Investments Limited holds 1,779,649,149 shares, representing 52.69% of the company[39]. - Hu Kaijun and Zhou Tong together hold 2,106,708,302 shares, accounting for 62.37% of the company[39]. - CDH Giant Health I Limited has a beneficial ownership of 356,648,142 shares, which is 10.56% of the company[39]. - The company has issued 181,069,959 shares as part of the acquisition agreement for 100% of Taiwan Dongyang International Co., Ltd[44]. - The total beneficial ownership of shares by Hu Kaijun and his spouse Zhou Tong is 2,106,708,302 shares, which includes 41,020,000 shares held by Zhou Tong[42].