【下周公布业绩】 小米集团(01810.HK)、同程艺龙(00780.HK)、波司登(03998.HK)、周大福(01929.HK)、石药集团 (01093.HK) 【分拆上市】 复星医药(02196.HK)：Gland Pharma已于印度时间11月20日在孟交所及印交所上市 李氏大药厂(00950.HK)分拆兆科眼科上市获联交所批准 【财务数据】 中国心连心化肥(01866.HK)前三季度纯利升2%至4.2亿元 车用尿素溶液销量大增340% 信利国际(00732.HK)中期净利4.08亿港元 同比增长141.7% 南旋控股(01982.HK)中期纯利减少12%至2.385亿元 中期息3.8港仙 美高域(01985.HK)中期净利增长73%至2178万港元 中期息0.05港元 电讯首科(03997.HK)中期纯利511.6万港元 同比增长56.8% 荣智控股(06080.HK)中期亏损约2750万港元 东方报业集团(00018.HK)中期纯利升139.16%至8732.3万港元 美建集团(00335.HK)中期净利3922.9万港元 同比减少8.89% 万嘉集团(00401.HK)中期亏损收窄133.53% ...

Company Overview - The company has over 30 years of experience in the pharmaceutical industry in China, focusing on research-driven and market-oriented biopharmaceutical development[10]. - The group currently markets over 25 proprietary, generic, and licensed-in pharmaceutical products across Mainland China, Hong Kong, Macau, and Taiwan[11]. - The therapeutic areas of focus include cardiovascular health, women's health, pediatrics, rare diseases, oncology, dermatology, and obstetrics, with a strong project pipeline[12]. - The company has established partnerships with around 30 international companies for development and commercialization rights[11]. - The company is committed to maintaining a strong infrastructure in drug development, clinical development, regulatory compliance, manufacturing, sales, and marketing[11]. Manufacturing and Operations - The manufacturing plant in Hefei, Anhui Province, operates four GMP-compliant workshops for various pharmaceutical products, while the Guangzhou site includes solid dosage production lines for tablets and capsules[13]. - The Nansha manufacturing facilities, established in 2015, are now contributing meaningfully to revenue with advanced production capabilities[40]. - The Hefei manufacturing facility recorded a 34% increase in total production volume in 2024, with a 77% surge in pre-filled syringe production volume[69]. Financial Performance - Revenue for 2024 reached HK$1,399,969, representing a 32.9% increase from HK$1,053,034 in 2023[21]. - Gross profit increased by 36.6% to HK$753,355 from HK$551,311 in the previous year[21]. - Profit attributable to the owners of the Company surged by 457.5% to HK$93,099 compared to HK$16,698 in 2023[21]. - Basic earnings per share rose to 15.81 HK cents, a 456.7% increase from 2.84 HK cents in 2023[21]. - Total dividend per share increased by 150.0% to 4.5 HK cents from 1.8 HK cents in 2023[21]. - The dividend payout ratio decreased to 28.5% from 63.4% in the previous year[21]. Research and Development - The drug development pipeline includes major therapeutic areas such as cardiovascular health, women's health, and oncology, with 4 projects currently under review by the CDE[44]. - Research and development expenses were reduced to HK$83.8 million in 2024 from HK$96.8 million in 2023, optimizing resource allocation[34]. - The Group is collaborating with Auransa Inc. to manufacture AU409, an AI-derived drug targeting advanced hepatocellular carcinoma, with the Phase I clinical trial expected to conclude by Q2 2025[46]. - The Group's R&D efforts have led to the development of new products, including Sokazoli monoclonal antibody injection and INOmax® inhaled nitric oxide gas[180]. Product Portfolio - The Company has a diverse product portfolio including proprietary and licensed-in products across various markets[18][19]. - New products include Livaracine® and Nadroparin Calcium Injection, targeting blood clots and deep vein thrombosis[18]. - The Group's new product Socazolimab Injection (善克鈺®) and Adapalene and Clindamycin Combination Gel (馥霖安®) are expected to drive future growth after being listed in procurement platforms[90]. Market Strategy - The sales and distribution network covers most provinces and cities in Mainland China, utilizing both direct and channel sales[13]. - The company aims to expand its market presence and enhance its product offerings through ongoing research and development initiatives[12]. - The Group's strategic direction includes expanding its market presence and enhancing its R&D capabilities through collaboration with renowned scientists[185]. Corporate Governance and Leadership - The company has a strong leadership team with extensive experience in finance and management, including key personnel like Li Xiaofang and Li Yini, who have been with the company since 1997[148][149]. - The company is focused on maintaining high standards of corporate governance and financial transparency, which is critical for investor confidence and long-term success[156][162]. - The Group established a Risk Control Centre in 2020 to enhance compliance and audit operations[165]. Challenges and Future Outlook - The Group's strategic execution and commitment to innovation have positioned it for long-term growth despite challenges from legacy product agreements and the scaling of new products[58]. - The Group is focusing on cost-control measures and enhancing operational efficiency to navigate challenges in China's pharmaceutical industry[140]. - The Group's commitment to cost-saving measures aims to enhance operational performance and profitability while managing expenditures effectively[64].

Financial Performance - Revenue for the year ended December 31, 2024, reached HKD 1,399,969, representing a 32.9% increase from HKD 1,053,034 in 2023[2] - Gross profit increased by 36.6% to HKD 753,355, up from HKD 551,311 in the previous year[2] - Profit attributable to owners of the company surged by 457.5% to HKD 93,099, compared to HKD 16,698 in 2023[2] - Basic and diluted earnings per share rose by 456.7% to HKD 15.81, up from HKD 2.84 in the prior year[2] - Operating profit for the year was HKD 113,142, significantly up from HKD 43,553 in 2023[4] - The total comprehensive income for the year was HKD 124,663,000, compared to HKD 127,582,000 in the previous year, a slight decrease of about 2%[8] - The company reported a profit of HKD 93,099,000 for the year, which is a recovery from a loss in the previous period[8] - The group recorded revenue of HKD 1,399,969,000 for the fiscal year ending December 31, 2024, a significant increase of 32.9% compared to HKD 1,053,034,000 in the previous year[33] - Gross profit reached HKD 753,355,000, up 36.6% from HKD 551,311,000 last year, with a gross margin improvement from 52.4% to 53.8%[36] - The group achieved a net profit attributable to shareholders of HKD 93,099,000 for 2024, a substantial improvement from HKD 16,698,000 in 2023[39] Dividends - The board proposed a final dividend of HKD 0.025 per share, an increase from HKD 0.01 in 2023[2] - The company declared an interim dividend of HKD 0.020 per share, totaling HKD 11,777,000, compared to HKD 0.008 per share and HKD 4,711,000 in the previous year[26] - The company plans to propose a final dividend of HKD 0.025 per share, totaling HKD 14,721,000, compared to HKD 5,888,000 in the previous year[27] - The board of directors proposed a final dividend of HKD 0.025 per share for the year 2023, an increase from HKD 0.010 per share in the previous year[55] - The final dividend will be distributed on June 16, 2025, pending shareholder approval at the annual general meeting[59] Assets and Liabilities - Non-current assets decreased to HKD 1,833,281 from HKD 2,234,040 in 2023[6] - Current liabilities increased to HKD 771,254 from HKD 648,818 in the previous year[6] - Total equity attributable to the company's owners decreased from HKD 2,038,955,000 in 2023 to HKD 1,651,799,000 in 2024, a decline of approximately 19%[7] - Total equity decreased from HKD 1,960,598,000 in 2023 to HKD 1,548,906,000 in 2024, representing a decline of about 21%[8] - The total assets of the group for 2024 were HKD 2,617,866,000, a decrease from HKD 2,890,667,000 in 2023[19] - The total liabilities for 2024 increased to HKD 1,068,960,000 from HKD 930,069,000 in 2023[19] Research and Development - Research and development expenses increased to HKD 83,829,000 in 2024 from HKD 96,804,000 in 2023, indicating a focus on innovation[14] - The group invested a total of HKD 193,085,000 in research and development, representing 13.8% of annual revenue, down from 20.9% in the previous year[37] - The company is currently developing multiple assets in key therapeutic areas including cardiovascular health, women's health, pediatrics, rare diseases, dermatology, and obstetrics, with several projects in late-stage development[42] Market and Sales Performance - Over 90% of the group's revenue in 2024 was derived from operations in the People's Republic of China[18] - The sales of newly introduced products increased significantly, with sales of "布累迪寧®" rising by 24.5% to HKD 133,800,000 and "芮舒延®" soaring by 143.4% to HKD 20,700,000[34] - The group’s proprietary products showed strong performance, with sales of "立騰菁®" increasing by 130.4% to HKD 192,700,000[34] Operational Challenges and Strategies - The company is facing significant challenges due to the inclusion of products in the national medical insurance plan, leading to profit declines and increased operational costs[53] - The company is implementing strict cost control measures to enhance operational efficiency in response to profit pressure from drug procurement policies[54] - The company continues to focus on innovation and optimizing its product portfolio to overcome challenges and ensure long-term growth[35] Corporate Governance - The annual general meeting is scheduled for May 22, 2025, to discuss shareholder matters[56] - The company will suspend share transfer registration from May 19, 2025, to May 22, 2025, to determine eligible shareholders for the annual general meeting[57] - The independent auditor has reviewed the preliminary performance announcement, confirming consistency with the audited financial statements[65] - The company will publish its annual report for the year ending December 31, 2024, on its website and the designated exchange website[66] - The board of directors includes Chairperson Li Xiaofang and Executive Director Li Yeni[67] - The company has independent non-executive directors including Chen Youzheng, Jiang Qihua, and Zhan Huaqiang[67] - The meeting was held on March 27, 2025, indicating ongoing corporate governance and transparency efforts[67]

Financial Performance - The Group's revenue for the first half of 2024 reached HK$658,345,000, a significant increase of 28.5% compared to HK$512,308,000 in the same period of 2023[4] - Gross profit for the first half of 2024 was HK$350,595,000, reflecting a 23.2% increase from HK$284,463,000 in the first half of 2023, despite a decrease in gross profit margin to 53.3%[7] - Net profit attributable to the owners of the Company was HK$62,478,000, a remarkable increase of 287.7% from HK$16,117,000 in the first half of 2023[10] - Profit for the period increased significantly to HK$54,869,000, compared to HK$20,909,000 in 2023, marking a 162.5% year-over-year growth[115] - Basic and diluted earnings per share for the period were both HK$10.61, compared to HK$2.74 in the previous year, reflecting a substantial increase[115] Revenue Composition - Notable product sales growth included Treprostinil Injection at 56.8%, Teglutik® at 187.2%, and Trittico® at 232.1%, with Nadroparin Calcium Injection experiencing a tenfold increase[4] - The contribution from licensed-in products decreased to 38.9% of revenue, down from 46.9% in the same period of 2023, while proprietary and generic products increased to 61.1% from 53.1%[6] - The Group's strategic shift towards proprietary and generic products is driven by changes in the market environment[6] Expenses and Cost Management - Research and development expenses totaled HK$84,713,000, a decrease of 25.5% from HK$113,634,000 in the same period last year, representing 12.9% of revenue[9] - Selling and distribution expenses rose to HK$172,265,000, an increase of 17.2% compared to HK$146,931,000 in the same period last year, with a selling expenses to revenue ratio of 26.2%[10] - The Group faces challenges from increased competition and rising operating costs, necessitating strategic management and focus[30] - To address these challenges, the Group will implement stringent cost control measures and emphasize efficiency across the value chain, particularly in sales and R&D functions[33] Research and Development - The Group is focusing on optimizing resource allocation among prioritized R&D projects while maintaining cost-saving efforts[9] - The oncology pipeline includes 6 innovative treatments and 4 generics, with a recent submission for indication expansion of Socazolimab Injection to the NMPA based on Phase III trial results for extensive-stage small-cell lung cancer[18] - The Group maintains a strong project pipeline, with the NDA for Cetraxal® Plus submitted in 2023 and currently under review by the CDE[14] Financial Position - As of June 30, 2024, the Group's current ratio improved to 1.10 from 1.01 on December 31, 2023, indicating better liquidity[44] - The Group's net debt position increased to HK$36,488,000 as of June 30, 2024, compared to HK$19,563,000 on December 31, 2023[44] - Total equity attributable to the owners of the Company decreased from HK$2,038,955,000 as of December 31, 2023, to HK$1,713,545,000 as of June 30, 2024, a decline of approximately 15.9%[121] Share Options and Employee Compensation - The company adopted a new share option scheme in May 2022, replacing the previous scheme that expired in May 2022[51] - The share options granted under the 2012 scheme before its expiry remain valid, subject to the same terms and conditions[52] - The company is committed to ensuring that it does not face foreign exchange issues when dealing with its earnings and costs denominated in various currencies[50] - The share option schemes are designed to incentivize employees and align their interests with those of shareholders[51] Dividends and Shareholder Returns - The company reported an interim dividend of HK$0.020 per share, an increase from HK$0.008 in 2023, reflecting a 150% rise[96] - The company paid dividends amounting to HK$5,888,000 during the period, consistent with the previous year[125] Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since the year-end[139] - The Group's financial risk management practices are designed to mitigate exposure to identified financial risks[140] Corporate Governance - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2024[103] - The company’s board of directors includes both executive and non-executive members, ensuring diverse governance[103] - The company is committed to reviewing its corporate governance practices to ensure ongoing compliance[103]

Financial Performance - For the six months ended June 30, 2024, the company's revenue was HKD 658,345,000, an increase of 28.5% compared to HKD 512,308,000 in the same period last year[3]. - Gross profit for the same period was HKD 350,595,000, reflecting a 23.2% increase from HKD 284,463,000 year-on-year[4]. - The profit attributable to the company's owners surged to HKD 62,478,000, marking a significant increase of 287.7% from HKD 16,117,000 in the previous year[5]. - Basic and diluted earnings per share rose to HKD 10.61, up 287.2% from HKD 2.74 in the same period last year[1]. - The interim dividend per share was increased to HKD 2.00, representing a 150.0% rise from HKD 0.80 in the previous year[1]. - The company reported a profit of HKD 54,869,000 for the six months ended June 30, 2024, compared to HKD 20,909,000 for the same period in 2023, representing a significant increase of 161.5%[16]. - Basic earnings per share increased to HKD 10.61 for the six months ended June 30, 2024, compared to HKD 2.74 for the same period in 2023[15]. - The operating profit for the period was HKD 68,134,000, up from HKD 33,067,000 in the previous year, indicating a 106% growth[26]. Revenue Sources - Sales from newly introduced products accounted for 38.9% of total revenue, down from 46.9% in the same period last year, while sales from proprietary and generic products increased to 61.1% from 53.1%[4]. - The group reported segment revenue of HKD 402,343,000 for the six months ended June 30, 2024, compared to HKD 272,091,000 for the same period in 2023, representing a 48% increase[26]. - The company generated over 90% of its revenue from operations in the People's Republic of China, indicating a strong market presence[28]. Expenses and Cost Management - Research and development expenses decreased by 25.5% to HKD 84,713,000, representing 12.9% of revenue compared to 22.2% in the previous year[5]. - Sales and distribution expenses increased by 17.2% to HKD 172,265,000, with the ratio to revenue decreasing to 26.2% from 28.7% year-on-year[5]. - The company is implementing strict cost control measures to enhance profitability and operational efficiency in response to rising operational costs and inflation pressures[14]. - Research and development expenses increased to HKD 90,082,000 from HKD 58,978,000, reflecting a 53% rise year-over-year[26]. Asset and Liability Management - Non-current assets decreased to HKD 1,851,952,000 as of June 30, 2024, down from HKD 2,234,040,000 at the end of 2023, reflecting a decline of 17.1%[17]. - Current assets increased to HKD 696,760,000, up from HKD 656,627,000, indicating a growth of 6.5%[17]. - Total equity attributable to the owners of the company decreased to HKD 1,713,545,000 from HKD 2,038,955,000, a decline of 16.0%[18]. - The company’s total liabilities decreased to HKD 288,788,000 from HKD 281,251,000, reflecting a slight increase of 2.0%[18]. - Trade receivables increased significantly to HKD 127,271,000 from HKD 84,590,000, representing a growth of 50.5%[17]. Cash Flow and Investments - Operating cash generated for the six months ended June 30, 2024, was HKD 67,203,000, compared to HKD 44,205,000 for the same period in 2023, representing a 52% increase[20]. - Net cash generated from operating activities for the six months ended June 30, 2024, was HKD 58,976,000, up from HKD 39,063,000 in 2023, reflecting a 51% growth[20]. - Cash used in investing activities for the six months ended June 30, 2024, was HKD 65,206,000, a decrease from HKD 88,587,000 in 2023, indicating a 26% reduction[20]. - Cash and cash equivalents increased by HKD 21,769,000 for the six months ended June 30, 2024, compared to a decrease of HKD 28,782,000 in the same period of 2023[20]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.020 per share for the six months ended June 30, 2024, compared to HKD 0.008 per share in 2023, totaling HKD 11,777,000[33]. - The company paid dividends of HKD 5,888,000 for both the six months ended June 30, 2024, and 2023, indicating stable dividend distribution[20]. Corporate Governance and Compliance - The company has not early adopted any new or revised Hong Kong Financial Reporting Standards that may significantly impact its financial performance[23]. - The company’s accounting policies remain consistent with those used in the annual financial statements for the year ended December 31, 2023[22]. - The company continues to comply with the corporate governance code as per the listing rules[52]. Product Development and Market Strategy - The company has submitted a new drug application for "Cetraxal® Plus" in 2023, which is currently under review by the drug evaluation center[7]. - The company is expanding production capacity for "Lichangqing®" and "Litengqing®" with a new pre-filled production line expected to be operational in 2024[6]. - The company is actively developing multiple assets in key therapeutic areas, including cardiovascular, women's health, and oncology, with a strong pipeline of innovative drugs[8][9]. - The sales and marketing team has successfully adjusted sales growth trajectories, with ten products included in the updated national medical insurance catalog[13].

Financial Performance - Revenue for the year ended December 31, 2023, was HK$1,053,034,000, a decrease of 14.6% from HK$1,233,148,000 in 2022[141]. - Gross profit for 2023 was HK$551,311,000, compared to HK$770,755,000 in 2022, reflecting a decline of 28.4%[141]. - Profit for the year was HK$19,949,000, down 56.5% from HK$45,835,000 in the previous year[144]. - Basic and diluted earnings per share for 2023 were both HK$2.84, a decrease from HK$8.71 in 2022[141]. - Total comprehensive income for the year was HK$127,582,000, compared to a loss of HK$536,605,000 in 2022, indicating a significant recovery[144]. - Research and development expenses for 2023 were HK$96,804,000, down from HK$168,885,000 in 2022, showing a reduction of 42.6%[141]. - Other comprehensive income for the year, net of tax, was HK$107,633,000, compared to an expense of HK$582,440,000 in 2022, marking a substantial improvement[144]. - The company reported a share of results from associates of HK$870,000, compared to a loss of HK$1,104,000 in 2022, indicating a positive turnaround[141]. - The total comprehensive income for the year was a loss of HK$528,438,000, compared to a loss of HK$536,605,000 in 2022, showing a slight improvement[162]. Expenses and Costs - The total interest expenses for financial liabilities amounted to HK$11,898,000, an increase from HK$7,595,000 in 2022, representing a growth of approximately 56.5%[3]. - Finance costs increased to HK$11,898,000 in 2023 from HK$7,595,000 in 2022, representing a rise of 56.3%[141]. - Amortisation of intangible assets increased to HK$56,307,000 in 2023 from HK$38,857,000 in 2022, reflecting a rise of 45.0%[162]. - Depreciation of property, plant, and equipment decreased to HK$93,194,000 in 2023 from HK$113,642,000 in 2022, a decline of 18.0%[162]. - Impairment loss recognized rose to HK$32,964,000 in 2023 compared to HK$2,022,000 in 2022, indicating a substantial increase[162]. - The current tax expense for the year was HK$12,013,000, compared to HK$13,443,000 in 2022, indicating a decrease of 10.6%[67]. - The tax charge for the year amounted to HK$10,836,000, down from HK$22,026,000 in the previous year, representing a decline of 50.8%[71]. Dividends - The final dividend for the year ended December 31, 2023, is recommended at HK$0.010 per share, maintaining the same level as 2022, with a total distribution of HK$0.018 per share for the year[97]. - The interim dividend paid on October 4, 2023, was HK$0.008 per share, compared to HK$0.010 per share in 2022[97]. - The total dividend distribution for the year ended December 31, 2023, is lower than the previous year's total of HK$0.020 per share[97]. - The company maintained a dividend payout ratio of 63.4%, with total dividends per share decreasing by 10.0% to HK$1.8[187]. Assets and Liabilities - Total assets increased to HK$2,234,040, up from HK$2,130,394, representing a growth of 4.85% year-over-year[148]. - Current assets rose to HK$656,627, compared to HK$651,634 in the previous year, reflecting a slight increase of 0.46%[148]. - Inventories increased significantly to HK$298,106, up 19.6% from HK$249,222 in 2022[148]. - Trade payables decreased to HK$74,147, down 26.8% from HK$101,301 in 2022[148]. - Total equity attributable to the owners of the Company reached HK$2,038,955, an increase of 5.95% from HK$1,924,107[149]. - Non-controlling interests improved to (HK$78,357), a reduction from (HK$81,583) in the previous year[149]. - Deferred tax assets rose to HK$10,199, compared to HK$7,584 in 2022, marking an increase of 34.3%[148]. Management and Governance - The company held its most recent annual general meeting on May 17, 2023, allowing shareholders to engage with the board[21]. - The five highest-paid individuals included three directors, with their remuneration detailed in the report[19]. - The company is committed to providing fair disclosure and transparent reporting to investors[21]. - There were no significant transactions or contracts involving directors with material interests during the year[17]. - The Company reviewed its shareholders' communication policy during the reporting period and found it to be appropriate and effective[26]. Market and Business Strategy - The Group has established extensive partnerships with over 20 international companies and currently markets over 25 proprietary, generic, and licensed-in pharmaceutical products in Mainland China, Hong Kong, Macau, and Taiwan[125]. - The Group focuses on several key disease areas including cardiovascular, women's health, pediatrics, rare diseases, oncology, dermatology, and obstetrics, with more than 40 products under different development stages[126]. - The Group has recently established an office in Thailand to conduct sales and distribution activities within the Thai market in the near future[127]. - The Group's mission is to become a successful biopharmaceutical group in Asia, providing innovative products to fight diseases and improve health and quality of life[128]. - The Group's proprietary products include Livaracine® and Nadroparin Calcium Injection, both targeting blood clots and deep vein thrombosis[172]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2023[36]. - Key audit matters were identified as significant in the audit of the consolidated financial statements, including revenue recognition[39]. - The Company’s financial statements were prepared in compliance with Hong Kong Financial Reporting Standards[36]. - The Group is responsible for ensuring the consolidated financial statements are free from material misstatement due to fraud or error[87].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,053,034 thousand, a decrease of 14.6% compared to HKD 1,233,148 thousand in 2022[1] - Gross profit for the same period was HKD 551,311 thousand, down 28.5% from HKD 770,755 thousand in the previous year[1] - Profit attributable to owners of the company was HKD 16,698 thousand, representing a significant decline of 67.4% from HKD 51,284 thousand in 2022[1] - Basic and diluted earnings per share for 2023 were both HKD 2.84, a decrease of 67.4% compared to HKD 8.71 in 2022[1] - Operating profit decreased to HKD 43,553 thousand in 2023 from HKD 76,560 thousand in 2022, representing a decline of 43.2%[18] - Net profit for the year was HKD 19,949 thousand, a significant drop of 56.5% compared to HKD 45,835 thousand in 2022[18] - Total comprehensive income attributable to owners of the company was HKD 124,663 thousand, down from HKD 528,438 thousand in the previous year[6] - Total comprehensive income for 2023 was HKD 127,582 thousand, compared to a loss of HKD 536,605 thousand in 2022[20] Dividends - The board recommended a final dividend of HKD 0.01 per share for the year ended December 31, 2023, unchanged from the previous year[1] - The company declared a total dividend of HKD 10,599,000 for the year, down from HKD 24,142,000 in 2022[78] - The board has proposed a final dividend of HKD 0.010 per share, consistent with the previous year[126] - The company proposes to pay a final dividend subject to shareholder approval at the Annual General Meeting, with payment scheduled for June 17, 2024[153] Assets and Liabilities - Non-current assets decreased to HKD 2,234,040 thousand in 2023 from HKD 2,130,394 thousand in 2022, an increase of 4.9%[22] - Current assets increased to HKD 656,627 thousand in 2023 from HKD 651,634 thousand in 2022, a slight increase of 0.5%[22] - The company reported a total asset value of HKD 2,890,667,000, up from HKD 2,782,028,000 in the previous year[43] - The total liabilities amounted to HKD 930,069,000, slightly down from HKD 939,504,000 in the previous year[43] - Total liabilities as of December 31, 2023, were HKD 930,069,000, slightly down from HKD 939,504,000 in 2022[70] Research and Development - The company reported a decrease in research and development expenses to HKD 96,804 thousand in 2023 from HKD 168,885 thousand in 2022, a reduction of 42.6%[18] - Research and development expenses for the year were HKD 219,849,000, a decrease of 37.5% compared to HKD 351,602,000 in the previous year, accounting for 20.9% of the corresponding annual revenue[114] - The company has over 40 projects in various stages of development, highlighting a robust pipeline for future growth[117] - The company is developing multiple assets in key therapeutic areas, including a new drug application for "Cetraxal® Plus" submitted in January 2023[95] - Research and development expenses are focused on new drug development across major therapeutic areas, including cardiovascular, women's health, pediatrics, rare diseases, dermatology, and obstetrics[137] Sales and Marketing - Sales of introduced products amounted to HKD 467,276,000, representing 44.4% of total revenue, down from 59.5% in the previous year[46] - Sales of patented and generic products reached HKD 585,758,000, accounting for 55.6% of total revenue, up from 40.5% in the previous year[46] - The company continues to strengthen its sales and marketing capabilities to adapt to the increasingly competitive business environment[56] - The company reported a significant increase in sales for its product "布累迪宁™", surpassing HKD 100 million with a growth rate of 18.9%[90] - Sales for "菲普利®" exceeded HKD 200 million, reflecting an 11.3% growth[90] - The company recorded a sales figure of HKD 113.7 million for "曲前列宁注射液（《芮旎尔®》）", with a growth of 13.9%[90] - The company achieved a substantial increase in sales for "曲特恪®", reaching HKD 50.8 million, a remarkable growth of 219.3%[90] Operational Challenges - The company faces challenges due to increasing competition and changing market dynamics, particularly with profit reductions from products included in national medical insurance plans[148] - Rising operational costs and inflation are ongoing challenges that require strategic management and careful attention from the company[148] - The company aims to enhance production capacity while implementing cost-saving measures in response to changing market conditions[50] Regulatory and Compliance - Socazolimab received conditional approval in China for the treatment of recurrent or metastatic cervical cancer, marking a significant milestone for the company[52] - The company has obtained three registration approvals from the National Medical Products Administration during the review period[53] - The INOmax DSIR Plus Delivery System™ received medical device registration from the National Medical Products Administration on May 25, 2023, indicating progress in new product development[120] - Ten products have been included in the latest medical insurance drug list, reflecting the company's efforts to expand market access[123] Future Plans - The company plans to continue implementing cost control measures to enhance profitability and ensure long-term sustainability[125] - The company plans to explore the possibility of entering the next drug procurement program after careful consideration[144] - The production capacity for "立暢青®" and "立騰菁®" is nearing saturation, and a new production line is being designed and constructed, expected to be operational in 2024[139] - The company has successfully completed the production verification for a new injectable product for neonatal respiratory distress syndrome, which is now ready for U.S. supplemental application[139] Shareholder Information - The company will hold its Annual General Meeting on May 22, 2024, with a notice to be sent to shareholders in due course[150] - The company will suspend share transfer registration from May 17, 2024, to May 22, 2024, to determine eligible shareholders for the Annual General Meeting[151]

Financial Performance - For the six months ended June 30, 2023, the company reported a net cash generated from operating activities of HK$39,063,000, a decrease from HK$252,218,000 in the same period of 2022[32]. - The company reported a profit/(loss) for the period of HK$28,460,000, a significant change from the previous year's loss of HK$290,005,000[31]. - The Group's net profit attributable to shareholders for the first half of 2023 was HK$16,117,000, a decrease of 43.4% compared to the same period last year[146]. - The Group's revenue for the first half of 2023 was HK$512,308,000, a decrease of 21.1% compared to HK$649,166,000 in the same period of 2022[157]. - The Group's gross profit for the first half of 2023 was HK$284,463,000, a decrease of 32.2% compared to HK$419,478,000 in the same period last year, with a gross profit margin of 55.5%, down 9.1 percentage points from 64.6% in the first half of 2022[141][160]. Cash and Liquidity - As of June 30, 2023, the company's cash and bank balances were HK$161,519,000, down from HK$368,047,000 as of June 30, 2022, indicating a decline of approximately 56.2%[34]. - The net decrease in cash and cash equivalents for the six months ended 30 June 2023 was HK$ (28,782) thousand, down from an increase of HK$ 85,194 thousand in the same period last year[46]. - Cash and cash equivalents at 30 June 2023 amounted to HK$ 161,519 thousand, a decrease from HK$ 368,047 thousand at the end of the previous period[46]. - The Group's principal sources of working capital include cash flow from operating and financing activities[194]. Investments and Dividends - The company incurred a net cash used in investing activities of HK$1,929,000 for the six months ended June 30, 2023, compared to HK$19,450,000 in the same period of 2022[32]. - The company paid dividends amounting to HK$88,587,000 during the reporting period, compared to HK$116,475,000 in the previous year[32]. Assets and Liabilities - The total liabilities of the Group reached HK$1,001,133,000 as of June 30, 2023[114]. - Total assets increased to HK$2,897,746,000 as of June 30, 2023, compared to HK$2,782,028,000 in 2022, reflecting a growth of approximately 4.1%[114]. - Segment liabilities rose to HK$596,649,000 as of June 30, 2023, up from HK$574,762,000 in 2022, indicating an increase of about 3.0%[114]. Research and Development - Research and development expenses for the same period amounted to (116,590), compared to (48,798) in the prior period, indicating increased investment in innovation[95]. - R&D expenses totaled HK$113,634,000, a 45.0% decrease from HK$206,517,000 in the first half of 2022, accounting for 22.2% of revenue[159]. - The Group is currently developing over 40 projects in its pipeline, including late-stage programs for various therapeutic areas such as cardiovascular and rare diseases[198][199]. - The NDA for Cetraxal® Plus was successfully submitted and accepted by the CDE in January 2023, following the completion of its Phase III clinical trial in 2022[199]. Market and Competition - More than 90% of the Group's revenue was derived from activities conducted in the People's Republic of China during the six months ended June 30, 2023[115]. - The Group is facing challenges from increased competition and elevated operating costs due to inflation in the second half of 2023[177]. - The Group is facing challenges from increased competition and profit reductions from products included in national procurement plans, necessitating strategic management[179]. Operational Efficiency and Strategy - The Group is focusing on enhancing production yield and pursuing cost-saving measures to adapt to the evolving market environment[148]. - The Group's operational efficiency has improved, allowing it to navigate the risks and opportunities presented by national reimbursement schemes[155]. - The Group's strategy includes optimizing resource allocation for priority R&D projects to continuously reduce costs[143]. - The Group aims to expand market reach and increase sales through participation in national reimbursement schemes and volume-based procurement programs[139]. Financial Reporting and Compliance - The company’s financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance and accuracy[2]. - The unaudited condensed consolidated financial statements have been prepared in accordance with HKAS 34 and the applicable disclosure requirements of the Listing Rules[48]. - The application of amendments to HKFRS has had no material effect on the reported amounts in the unaudited condensed consolidated financial statements[54].

[Financial Summary](index=1&type=section&id=Financial%20Summary) The overall financial performance for H1 2023 showed a decline in key metrics including revenue, profit, and interim dividend [Overview of Financial Summary](index=1&type=section&id=Overview%20of%20Financial%20Summary) Lee's Pharmaceutical's revenue, gross profit, profit attributable to owners, and EPS decreased, along with a reduced interim dividend for H1 2023 Financial Summary for the Six Months Ended June 30 | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 512,308 | 649,166 | -21.1% | | Gross Profit | 284,463 | 419,478 | -32.2% | | Profit Attributable to Owners of the Company | 16,117 | 28,460 | -43.4% | | Earnings Per Share (Basic) | 2.74 HK Cents | 4.83 HK Cents | -43.3% | | Earnings Per Share (Diluted) | 2.74 HK Cents | 4.83 HK Cents | -43.3% | | Interim Dividend Per Share | 0.80 HK Cents | 1.00 HK Cents | -20.0% | [Business Review](index=2&type=section&id=Business%20Review) The business review highlights revenue decline, R&D focus, manufacturing upgrades, pipeline progress, new product approvals, enhanced sales, and a challenging outlook [Revenue and Profit](index=2&type=section&id=Revenue%20and%20Profit) H1 2023 revenue decreased by 21.1% to HK$512.3 million due to license expirations and RMB depreciation, with gross margin falling to 55.5% despite some product growth - The Group's H1 2023 revenue was **HK$512,308,000**, a **21.1% decrease** year-on-year, primarily due to product license expirations, declining sales, and RMB depreciation[25](index=25&type=chunk) - Gross profit was **HK$284,463,000**, a **32.2% decrease** year-on-year. Overall gross profit margin was **55.5%**, down **9.1 percentage points** from 64.6% in H1 2022, mainly due to a shift towards lower-margin generic products[27](index=27&type=chunk) Major Product Sales Growth in H1 2023 | Product Name | Growth Rate (%) | | :--- | :--- | | Fepril® | 39.6% | | Breadyne™ | 43.4% | | Sancuso® | 197.4% | | Tratek® | 176.3% | | Fondaparinux Sodium Injection | 584.1% | | Sodium Phenylbutyrate Granules | 83.5% | - Profit attributable to owners of the company was **HK$16,117,000**, a **43.4% decrease** compared to H1 2022[28](index=28&type=chunk) [Research and Development](index=3&type=section&id=Research%20and%20Development) H1 2023 R&D expenses decreased by 45.0% to HK$113.6 million, representing 22.2% of revenue, due to strategic project selection and cost optimization H1 2023 R&D Expenses | Indicator | H1 2023 (HK$ Thousand) | H1 2022 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total R&D Expenses | 113,634 | 206,517 | -45.0% | | % of Revenue | 22.2% | 31.8% | -9.6 percentage points | | Recognized as Expense | 48,798 | 116,590 | -58.1% | | Capitalized as Intangible Assets | 64,836 | 89,927 | -27.8% | - The decrease in R&D expenses resulted from strategically selecting new projects after the completion of previous ones and continuously optimizing resource allocation for priority R&D projects to reduce costs[8](index=8&type=chunk) [Manufacturing Facilities and Production Capacity](index=3&type=section&id=Manufacturing%20Facilities%20and%20Production%20Capacity) The Group aims to increase production and save costs, with Hefei and Nansha bases completing facility upgrades and process enhancements - The Group's primary objectives are to increase production output while implementing cost-saving measures to adapt to the evolving market environment[10](index=10&type=chunk) - - Hefei Base: Completed capacity enhancement and process scale-up facility upgrades for Yujingan®, co-line facility upgrades for new pre-filled syringe products before launch, and registration batch production for new oral lyophilized powder dosage forms[29](index=29&type=chunk)[30](index=30&type=chunk) - - Nansha Base: Process scale-up equipment for aerosol inhalants has been installed and commissioned, with trial production expected shortly; production process upgrades for oral antihypertensive products are progressing well, with three pilot tests completed[29](index=29&type=chunk)[30](index=30&type=chunk) [Drug Development](index=4&type=section&id=Drug%20Development) The Group has over 40 drug development projects across multiple therapeutic areas, with several late-stage programs showing positive progress - The Group's pipeline includes over **40 projects** at various early to late development stages[31](index=31&type=chunk) - - Cetraxal® Plus: New Drug Application (NDA) for acute otitis externa and acute otitis media with tympanostomy tubes was submitted to CDE and accepted in January 2023[11](index=11&type=chunk) - - Intrarosa®: Currently in Phase III clinical trials for vulvovaginal atrophy, with the clinical database locked and unblinded, and data expected to be published soon[11](index=11&type=chunk) - - Fentanyl Aerosol Inhaler: Phase IIa clinical trial successfully met its primary endpoints in August 2023, with results to accelerate NDA review and approval[11](index=11&type=chunk) [Oncology Pipeline](index=4&type=section&id=Oncology%20Pipeline) COF, the Group's oncology R&D branch, has a pipeline of 10 assets, including Socazolimab and other novel drug candidates in various clinical stages - China Oncology Focus Limited (COF), the Group's R&D branch in oncology, has established a pipeline of **10 oncology assets**, comprising **6 innovative drugs** and **4 generic drugs**[32](index=32&type=chunk) - - Socazolimab (anti-PD-L1 antibody): New Drug Application (NDA) stage for recurrent or metastatic cervical cancer in China; Phase III clinical trial for osteosarcoma; Phase III clinical trial for small cell lung cancer combined with chemotherapy has completed patient enrollment[32](index=32&type=chunk)[33](index=33&type=chunk) - - Zotiraciclib: An oral multi-kinase inhibitor, currently in Phase I clinical trials for glioblastoma[32](index=32&type=chunk)[33](index=33&type=chunk) - - Gemcitabine: A topoisomerase I inhibitor, currently in Phase II clinical trials for ovarian cancer, Phase Ib/II clinical trials for small cell lung cancer, and Phase I clinical trials for pancreatic cancer in China[32](index=32&type=chunk)[33](index=33&type=chunk) - - Socazolimab combined with Pexa-vec (oncolytic virus): Currently in Phase Ib clinical trials for melanoma[32](index=32&type=chunk)[33](index=33&type=chunk) [New Product Approvals](index=5&type=section&id=New%20Product%20Approvals) The Group secured two NMPA approvals, including INOmax DSIR Plus Delivery System™ and Apremilast Tablets, with the latter launching in Q4 2023 - The Group has obtained **two registration approvals** from the National Medical Products Administration ("NMPA")[14](index=14&type=chunk) - - INOmax DSIR Plus Delivery System™: Obtained NMPA's national medical device registration certificate on May 25, 2023, for treating term and near-term infants (≥34 weeks gestation) with hypoxic respiratory failure associated with pulmonary hypertension[35](index=35&type=chunk)[143](index=143&type=chunk) - - Apremilast Tablets: Approved for registration by NMPA on June 14, 2023, for adult patients with moderate to severe plaque psoriasis eligible for phototherapy or systemic therapy, expected to launch in Q4 2023[35](index=35&type=chunk)[143](index=143&type=chunk) [Sales and Marketing](index=5&type=section&id=Sales%20and%20Marketing) The Group enhanced sales and marketing, focusing on market access, with several products, including rare disease drugs, newly added to China's NRDL - The Group has significantly strengthened its sales and marketing capabilities in recent years, with market access becoming a crucial aspect, implementing various steps to empower the market access team within China's complex healthcare landscape[15](index=15&type=chunk) - The Group's commercialized products, Treprostinil Injection, Teglutik®, and Tratek®, were newly included in China's National Reimbursement Drug List (NRDL), bringing the total to **nine products** in the latest NRDL edition to date[16](index=16&type=chunk)[50](index=50&type=chunk) - As of 2023, the Group has **two newly approved products**, with **two more new drug applications** expected to be approved by year-end, which, combined with **seven products approved in 2022**, will generate new revenue streams in the near future[51](index=51&type=chunk) [Outlook](index=6&type=section&id=Outlook) The Group anticipates a challenging H2 2023 due to competition, market changes, reduced margins, and rising costs, responding with cost-saving measures and efficiency optimization - - Market Environment Challenges: Intensified competition, evolving market dynamics, reduced profit margins for products included in the National Reimbursement Drug List (NRDL) or National Centralized Drug Procurement program, rising operating costs, and inflationary pressures[37](index=37&type=chunk)[38](index=38&type=chunk) - - Response Strategy: The Group will continue to steadfastly implement cost-saving measures across all operational levels, prioritizing efficiency and resource optimization to ensure sustainable profitability[37](index=37&type=chunk)[38](index=38&type=chunk) [Interim Financial Statements](index=7&type=section&id=Interim%20Financial%20Statements) This section presents the condensed consolidated financial statements, including statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2023 revenue was HK$512.3 million, with gross profit of HK$284.5 million and profit attributable to owners of HK$16.1 million Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 512,308 | 649,166 | | Cost of Sales | (227,845) | (229,688) | | Gross Profit | 284,463 | 419,478 | | Other Income | 40,949 | 45,702 | | Net Other Gains and Losses | (5,736) | (5,227) | | Selling and Distribution Expenses | (146,931) | (176,215) | | Administrative Expenses | (90,584) | (111,075) | | Provision for Expected Credit Losses on Financial Assets | (296) | (253) | | Research and Development Expenses | (48,798) | (116,590) | | Operating Profit | 33,067 | 55,820 | | Finance Costs | (5,439) | (3,499) | | Share of Results of Associates | (440) | (526) | | Profit Before Tax | 27,188 | 51,795 | | Taxation | (6,279) | (24,713) | | Profit for the Period | 20,909 | 27,082 | | Profit Attributable to Owners of the Company | 16,117 | 28,460 | | Non-controlling Interests | 4,792 | (1,378) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2023 profit for the period was HK$20.9 million, with total comprehensive income of HK$59.4 million, driven by fair value changes and exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Profit for the Period | 20,909 | 27,082 | | Other Comprehensive (Expense) / Income: | | | | - Exchange differences on translation of financial statements of overseas subsidiaries | (48,217) | (49,811) | | - Fair value changes of financial assets at fair value through other comprehensive income | 86,690 | (291,865) | | Other Comprehensive Income / (Expense) for the Period, Net of Tax | 38,473 | (341,676) | | Total Comprehensive Income / (Expense) for the Period | 59,382 | (314,594) | | Total Comprehensive Income / (Expense) for the Period Attributable to: | | | | Owners of the Company | 55,214 | (310,998) | | Non-controlling Interests | 4,168 | (3,596) | [Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, total assets increased to HK$2.9 billion, driven by non-current assets and increased inventories, while total liabilities reached HK$1 billion due to higher borrowings Condensed Consolidated Statement of Financial Position (As of June 30, 2023) | Indicator | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 495,148 | 540,665 | | Intangible Assets | 1,035,691 | 1,023,494 | | Financial Assets at Fair Value Through Other Comprehensive Income | 625,208 | 536,452 | | Total Non-current Assets | 2,190,878 | 2,130,394 | | **Current Assets** | | | | Inventories | 325,092 | 249,222 | | Trade Receivables | 120,072 | 111,278 | | Cash and Bank Balances | 161,519 | 189,301 | | Total Current Assets | 706,868 | 651,634 | | **Current Liabilities** | | | | Trade Payables | 115,269 | 101,301 | | Bank and Other Borrowings | 108,883 | 76,727 | | Total Current Liabilities | 704,766 | 650,104 | | **Non-current Liabilities** | | | | Bank and Other Borrowings | 77,363 | 77,363 | | Deferred Tax Liabilities | 71,012 | 73,897 | | Total Non-current Liabilities | 296,367 | 289,400 | | **Total Equity** | | | | Equity Attributable to Owners of the Company | 1,974,028 | 1,924,107 | | Non-controlling Interests | (77,415) | (81,583) | | Total Equity | 1,896,613 | 1,842,524 | [Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners increased to HK$1.97 billion by June 30, 2023, driven by profit and fair value changes, despite dividend payments - Equity attributable to owners of the company increased to **HK$1,974,028 thousand** as of June 30, 2023, from **HK$1,924,107 thousand** on January 1, 2023[136](index=136&type=chunk) - - Profit for the period contributed **HK$16,117 thousand**[136](index=136&type=chunk) - - Fair value changes of financial assets at fair value through other comprehensive income resulted in a gain of **HK$86,917 thousand**[136](index=136&type=chunk) - - Payment of 2022 final dividend amounted to **HK$5,888 thousand**[136](index=136&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) H1 2023 net cash from operations significantly decreased to HK$39.1 million, with net cash used in investing at HK$88.6 million, resulting in a period-end cash balance of HK$161.5 million Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 39,063 | 252,218 | | Net Cash Used in Investing Activities | (88,587) | (116,475) | | Net Cash Generated from / (Used in) Financing Activities | 20,742 | (50,549) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (28,782) | 85,194 | | Cash and Cash Equivalents at June 30 | 161,519 | 368,047 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the unaudited condensed consolidated financial statements, covering accounting policies, segment data, and various financial components [Basis of Preparation and Principal Accounting Policies](index=13&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules, with new HFRS amendments having no material impact - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants (HKICPA) and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62](index=62&type=chunk) - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA, mandatory for annual periods beginning on or after January 1, 2023, were first applied in this reporting period but had no significant impact on the amounts presented and/or disclosures contained in these unaudited condensed consolidated financial statements[47](index=47&type=chunk) [Segment Information](index=14&type=section&id=Segment%20Information) The Group's segments are "Proprietary and Generic Products" and "In-licensed Products," with H1 2023 showing growth in the former and decline in the latter, and over 90% of revenue from China - The Group's reportable and operating segments are "Proprietary and Generic Products" (manufacturing and sales of self-developed and generic drugs) and "In-licensed Products" (trading of in-licensed drugs)[49](index=49&type=chunk)[66](index=66&type=chunk)[82](index=82&type=chunk) - For the six months ended June 30, 2023 and 2022, over **90% of the Group's revenue** was derived from operations in the People's Republic of China, thus no geographical information on revenue is presented[69](index=69&type=chunk) [Segment Revenue and Results](index=15&type=section&id=Segment%20Revenue%20and%20Results) H1 2023 saw proprietary and generic product revenue grow to HK$272.1 million, while in-licensed product revenue significantly dropped to HK$240.2 million Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2023 Revenue (HK$ Thousand) | 2022 Revenue (HK$ Thousand) | 2023 Operating Results (HK$ Thousand) | 2022 Operating Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Proprietary and Generic Products | 272,091 | 252,087 | 58,978 | 85,948 | | In-licensed Products | 240,217 | 397,079 | 35,889 | 105,795 | | Consolidated Total | 512,308 | 649,166 | 94,867 | 191,743 | - Research and development expenses for the Proprietary and Generic Products segment were **HK$16,713 thousand** (2022: HK$30,915 thousand), and for the In-licensed Products segment were **HK$32,085 thousand** (2022: HK$85,675 thousand)[67](index=67&type=chunk) [Segment Assets and Liabilities and Geographical Information](index=16&type=section&id=Segment%20Assets%20and%20Liabilities%20and%20Geographical%20Information) As of June 30, 2023, total assets were HK$2.9 billion and total liabilities were HK$1 billion, with China accounting for a significant portion Segment Assets and Liabilities (As of June 30, 2023) | Segment | June 30, 2023 Assets (HK$ Thousand) | December 31, 2022 Assets (HK$ Thousand) | June 30, 2023 Liabilities (HK$ Thousand) | December 31, 2022 Liabilities (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Proprietary and Generic Products | 779,089 | 726,742 | 226,069 | 176,617 | | In-licensed Products | 1,311,250 | 1,311,699 | 370,580 | 398,145 | | Consolidated Total | 2,897,746 | 2,782,028 | 1,001,133 | 939,504 | Geographical Assets and Liabilities (As of June 30, 2023) | Region | June 30, 2023 Assets (HK$ Thousand) | December 31, 2022 Assets (HK$ Thousand) | June 30, 2023 Liabilities (HK$ Thousand) | December 31, 2022 Liabilities (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | China | 1,708,843 | 1,696,915 | 444,703 | 406,734 | | Hong Kong and Others | 1,188,903 | 1,085,113 | 556,430 | 532,770 | | Total | 2,897,746 | 2,782,028 | 1,001,133 | 939,504 | [Other Income](index=17&type=section&id=Other%20Income) H1 2023 other income decreased to HK$40.9 million, primarily from development grants and rental income, while R&D service income significantly declined Other Income Details (For the Six Months Ended June 30) | Income Category | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 662 | 1,183 | | Development and Government Grants | 26,179 | 17,094 | | Rental and Utility Income | 7,525 | 5,997 | | Research and Development Service Income | 4,067 | 19,220 | | Miscellaneous Income | 2,516 | 2,208 | | **Total** | **40,949** | **45,702** | - The Group received development grants from local governments in recognition of its performance and development of high-tech pharmaceutical products[85](index=85&type=chunk) [Profit Before Tax](index=17&type=section&id=Profit%20Before%20Tax) H1 2023 profit before tax was calculated after deducting HK$77.7 million in depreciation and amortization, HK$4.6 million in interest, and HK$0.6 million in share-based payments Profit Before Tax Deductions (For the Six Months Ended June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment (including right-of-use assets) | 49,601 | 60,606 | | Amortization of Intangible Assets | 28,146 | 17,930 | | **Total Depreciation and Amortization** | **77,747** | **78,536** | | Interest Expense on Borrowings | 4,594 | 2,513 | | Interest Expense on Lease Liabilities | 361 | 226 | | Share-based Payments | 595 | 6,349 | | - Directors | 186 | 4,441 | | - Employees | 409 | 1,908 | [Taxation](index=18&type=section&id=Taxation) H1 2023 total taxation significantly decreased to HK$6.3 million, with Hong Kong profits tax on a two-tiered system and a deferred tax credit Taxation Details (For the Six Months Ended June 30) | Tax Category | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax: | | | | Hong Kong Profits Tax | 10,895 | 12,436 | | China Corporate Income Tax | – | 362 | | Under-provision in Prior Years: | | | | China Corporate Income Tax | 17 | – | | Deferred Tax (Credit) / Charge for Temporary Differences | (4,633) | 11,915 | | **Total** | **6,279** | **24,713** | - Hong Kong profits tax is calculated at **8.25%** on the first HK$2 million of estimated assessable profits and **16.5%** on profits above HK$2 million. Taxes arising in China are calculated at the prevailing local tax rates[72](index=72&type=chunk) [Dividends](index=18&type=section&id=Dividends) The Board proposed an interim dividend of HK$0.008 per share, totaling HK$4.7 million, declared post-period and not recognized as a liability - The declared interim dividend is **HK$0.008 per ordinary share** (2022: HK$0.010), totaling **HK$4,711 thousand**[73](index=73&type=chunk) - This dividend was declared after the interim report date and therefore has not been recognized as a liability in the condensed consolidated statement of financial position[151](index=151&type=chunk) - The 2022 final dividend of **HK$0.010 per share** (totaling **HK$5,888,000**) was paid on June 15, 2023[151](index=151&type=chunk) [Earnings Per Share](index=19&type=section&id=Earnings%20Per%20Share) H1 2023 basic and diluted EPS attributable to owners decreased to **HK$0.0274**, based on 588.8 million weighted average ordinary shares Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2023 (HK Cents) | 2022 (HK Cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 2.74 | 4.83 | | Diluted Earnings Per Share | 2.74 | 4.83 | - Profit attributable to owners of the company for the purpose of calculating basic and diluted earnings per share was **HK$16,117 thousand** (2022: HK$28,460 thousand)[89](index=89&type=chunk) - The weighted average number of ordinary shares for the purpose of calculating basic earnings per share was **588,835 thousand shares**[90](index=90&type=chunk) [Property, Plant and Equipment and Intangible Assets](index=19&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) H1 2023 saw additions of HK$13 million in right-of-use assets, HK$15 million in PPE, and HK$72 million in intangible assets, with no impairment recognized - - Additions to right-of-use assets amounted to approximately **HK$13,000 thousand** (2022: approximately HK$2,000 thousand)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - - Additions to owned property, plant and equipment amounted to approximately **HK$15,000 thousand** (2022: approximately HK$7,000 thousand)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - - Additions to intangible assets amounted to approximately **HK$72,000 thousand** (2022: approximately HK$90,000 thousand), which included patent fees and development costs[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - No impairment provisions or write-offs for intangible assets were recognized in profit or loss for the six months ended June 30, 2022 and 2023[92](index=92&type=chunk) [Interests in Associates](index=20&type=section&id=Interests%20in%20Associates) As of June 30, 2023, interests in associates totaled HK$5.3 million, including Prolife Pharmaceutical and Zhihe Bio-Tech, engaged in drug development and radiopharmaceutical services Changes in Interests in Associates (As of June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | At Beginning of Period / Year | 5,163 | 6,267 | | Additions | 605 | – | | Share of Post-acquisition Losses | (440) | (1,104) | | At End of Period / Year | 5,328 | 5,163 | Details of Principal Associates (As of June 30, 2023) | Associate Name | Place of Incorporation / Operation | Proportion of Ownership Interest Held by the Group | Principal Activities | | :--- | :--- | :--- | :--- | | Prolife Pharmaceutical Co., Limited | British Virgin Islands / Hong Kong | 33.92% | Development, manufacture and sale of pharmaceutical products | | Zhihe Bio-Tech Limited | Hong Kong / Hong Kong | 37.69% | Investment holding and operation of a central pharmacy for compound radiopharmaceuticals | [Trade Receivables](index=20&type=section&id=Trade%20Receivables) As of June 30, 2023, trade receivables increased to HK$120.1 million, with an average credit period of 30-120 days and most balances aged 0-30 days - The Group grants an average credit period of **30 to 120 days** to its trade customers[94](index=94&type=chunk) Ageing Analysis of Trade Receivables (As of June 30) | Ageing | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 Days | 73,519 | 55,268 | | 31 to 120 Days | 44,173 | 39,643 | | 121 to 180 Days | 1,619 | 9,057 | | 181 to 365 Days | 742 | 7,282 | | Over 365 Days and Within 3 Years | 19 | 28 | | **Total** | **120,072** | **111,278** | [Trade Payables](index=21&type=section&id=Trade%20Payables) As of June 30, 2023, trade payables increased to HK$115.3 million, with an average credit period of 90 days and most balances aged 0-90 days - The average credit period for purchases of certain goods is **90 days**[97](index=97&type=chunk) Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 90 Days | 64,300 | 75,204 | | 91 to 180 Days | 26,383 | – | | 181 to 365 Days | 107 | 26,037 | | Over 365 Days | 24,479 | 60 | | **Total** | **115,269** | **101,301** | [Bank and Other Borrowings](index=21&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2023, total bank and other borrowings were HK$186.2 million, with all bank borrowings classified as current due to demand clauses, at 6.00% to 7.03% interest Bank and Other Borrowings (As of June 30) | Borrowing Category | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings Classified as Current Liabilities | 106,727 | 76,727 | | Unsecured Other Borrowings Classified as Current Liabilities | 2,156 | – | | Secured Bank Borrowings Classified as Non-current Liabilities | 77,363 | 77,363 | | **Total** | **186,246** | **154,090** | - Bank borrowings are classified entirely as current liabilities due to clauses granting the lenders an unconditional right to demand repayment at any time, in accordance with Hong Kong Interpretation 5[116](index=116&type=chunk) - The effective annual interest rates for the Group's bank and other borrowings ranged from **6.00% to 7.03%** (December 31, 2022: 6.42% to 6.75%), denominated in Hong Kong Dollars and Renminbi[100](index=100&type=chunk)[118](index=118&type=chunk) [Share Capital](index=22&type=section&id=Share%20Capital) As of June 30, 2023, authorized share capital was HK$50 million (1 billion shares), with issued and fully paid capital at HK$29.4 million (588.8 million shares) Share Capital Details (As of June 30) | Share Capital Category | Number of Shares as of June 30, 2023 | Share Capital as of June 30, 2023 (HK$ Thousand) | | :--- | :--- | :--- | | Authorized: Ordinary Shares of HK$0.05 Par Value Each | 1,000,000,000 | 50,000 | | Issued and Fully Paid: At Beginning and End of Period / Year | 588,835,343 | 29,442 | [Related Party Transactions](index=22&type=section&id=Related%20Party%20Transactions) During the period, key management compensation totaled HK$12.6 million, and the Group donated HK$0.2 million to the Lee To Ching Fong Scholarship, a related party Key Management Personnel Compensation (For the Six Months Ended June 30) | Compensation Category | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Short-term Employee Benefits | 9,382 | 8,541 | | Share-based Payments | 186 | 4,441 | | Retirement and Other Post-employment Benefits | 3,034 | 2,609 | | **Total** | **12,602** | **15,591** | - Donations to the Lee To Ching Fong Scholarship totaled **HK$200,000** for the six months ended June 30, 2023 (2022: HK$1,900,000)[103](index=103&type=chunk) [Capital Commitments and Pledged Assets](index=23&type=section&id=Capital%20Commitments%20and%20Pledged%20Assets) As of June 30, 2023, capital commitments totaled HK$161.1 million for investments in financial assets, intangible assets, and PPE, with no pledged assets Contracted Capital Commitments (As of June 30) | Commitment Category | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Investments in Financial Assets at Fair Value Through Other Comprehensive Income | 20,588 | 22,654 | | Intangible Assets - Patent Fees and Development Costs | 114,809 | 129,770 | | Property, Plant and Equipment | 25,744 | 79,295 | | **Total** | **161,141** | **231,719** | - No assets were pledged as of June 30, 2023, and December 31, 2022[104](index=104&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section provides additional information on the company's operations, including securities activities, dividend declarations, corporate governance, and board composition [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during H1 2023 - For the six months ended June 30, 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[128](index=128&type=chunk) [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The Board recommended an interim dividend of HK$0.008 per share to shareholders registered by September 15, 2023 - The Board recommended an interim dividend of **HK$0.008 per share** (2022: HK$0.010) to shareholders registered in the company's register of members at the close of business on Friday, September 15, 2023[105](index=105&type=chunk) [Closure of Register of Members](index=24&type=section&id=Closure%20of%20Register%20of%20Members) The company will suspend its register of members from September 14-15, 2023, for interim dividend eligibility, with transfer documents due by September 13 - The company will suspend its register of members from Thursday, September 14, 2023, to Friday, September 15, 2023 (both days inclusive)[106](index=106&type=chunk) - To ensure eligibility for the interim dividend, all transfer documents, accompanied by the relevant share certificates, must be lodged with the company's Hong Kong share registrar by 4:30 p.m. on Wednesday, September 13, 2023[106](index=106&type=chunk) [Corporate Governance Practices](index=24&type=section&id=Corporate%20Governance%20Practices) The company complied with the Listing Rules' Corporate Governance Code for H1 2023 and will continue to review practices for ongoing adherence - The company has complied with the Corporate Governance Code set out in Appendix 14 to the Listing Rules for the six months ended June 30, 2023[129](index=129&type=chunk) - The Board will continue to review the company's corporate governance practices from time to time to ensure compliance with the Corporate Governance Code[107](index=107&type=chunk) [Publication of Financial Information](index=24&type=section&id=Publication%20of%20Financial%20Information) The company will publish its H1 2023 interim report on the HKEX and company websites and dispatch it to shareholders - The company will dispatch its interim report for the six months ended June 30, 2023, to its shareholders and publish it on the website of The Stock Exchange of Hong Kong Limited (http://www.hkexnews.hk) and the company's website (http://www.leespharm.com) in due course[123](index=123&type=chunk) [Board of Directors](index=24&type=section&id=Board%20of%20Directors) As of this announcement, the Board includes Executive Directors Ms. Lee Siu Fong (Chairman) and Ms. Lee Ye Ni, two Non-executive Directors, and three Independent Non-executive Directors - - Executive Directors: Ms. Lee Siu Fong (Chairman), Ms. Lee Ye Ni[124](index=124&type=chunk) - - Non-executive Directors: Dr. Li Xiao Yi, Mr. James Charles Gale[124](index=124&type=chunk) - - Independent Non-executive Directors: Dr. Chan Hau Chong, Ms. Chiang Kwai Wah, Dr. Jim Wah Keung[124](index=124&type=chunk)

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佈的內容概不 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佈全 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。 Lee’s Pharmaceutical Holdings Limited 李 氏 大 藥 廠 控 股 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：950） 有 關 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 年 報 之 補 充 公 佈 茲提述李氏大藥廠控股有限公司（「本公司」）截至二零二二年十二月三十一日 止年度之年報（「年報」）。除非文義另有所指，否則本公佈所用之專有詞彙與年 報所界定者具相同涵義。 除年報「購股權計劃」一節及綜合財務報表附註中之附註37所提供之資料外， 董事會謹此就購股權計劃下之購股權提供以下進一步資料。 年報載列，2,510,000份購股權已於報告年度內註銷或失效，具體而言全部均為 於報告年度內按照二零一二年購股權計劃之條款失效之購股權，並無購股權 於報告年度內註銷。 以上額外資料並不影響年報所載任何其他資料。除本公佈所披露者外，年報所 ...