Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.00, indicating a potential upside of 56.0% from the current price of HKD 6.41 [1][2][7]. Core Insights - The company reported a revenue increase of 1.7% year-on-year to RMB 31.45 billion for 2023, which met expectations. The basic profit rose by 2.8% to RMB 6.28 billion. The fourth quarter of 2023 saw revenue and basic profit growth of 1.9% and 5.3%, respectively [1][2]. - The company expects to maintain double-digit growth in revenue and net profit for 2024, driven by new product sales and market access progress. The sales from new and next-generation products are projected to exceed RMB 3 billion [2][3]. - The company is positioned at a critical turning point with the clearing of procurement impacts, validated R&D platforms, and multiple innovative technologies nearing commercialization [2][3]. Financial Summary - For 2023, the company achieved a revenue of RMB 31,450 million, with a gross profit margin of 70.5%, down 1.4 percentage points from the previous year. The operating profit margin increased by 0.5 percentage points due to effective control of selling expenses [1][3]. - The forecast for 2024 estimates revenue of RMB 34,901 million, with a projected net profit of RMB 6,858 million, reflecting a decrease in profit estimates of 3% for 2024 and 4% for 2025 [2][5]. - The company’s earnings per share (EPS) for 2024 is projected at RMB 0.58, with a price-to-earnings (P/E) ratio of 10.2 times [3][5]. Product Pipeline and Market Access - The company anticipates the approval of over 50 new products or indications within the next five years, with key products expected to be approved in the U.S. in 2024 [2][3]. - Recent market access achievements include rapid hospital entry for new products such as Mingfule and Gumeitini, with approximately 1,600 hospitals reached by February 2024, and expectations to increase to 2,700 by the end of March [2][3].

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 31.45 billion, an increase of 1.7% compared to RMB 30.94 billion in 2022[2]. - The basic profit attributable to shareholders was RMB 6.28 billion, up 2.8% from RMB 6.10 billion in 2022[3]. - The profit attributable to shareholders decreased by 3.6% to RMB 5.87 billion from RMB 6.09 billion in 2022[3]. - The proposed final dividend for 2023 is HKD 0.14 per share, resulting in a total annual dividend of HKD 0.28 per share, an increase of 33.3% from HKD 0.21 in 2022[4]. - The company's profit attributable to shareholders for 2023 was RMB 5,873,325, a decrease of 3.6% from RMB 6,091,390 in 2022[66]. - The total comprehensive income for 2023 was RMB 6,049,146, compared to RMB 6,295,556 in 2022, reflecting a decrease of 3.9%[70]. - The gross profit margin for the year decreased by 1.4 percentage points to 70.5%, attributed to changes in revenue structure and a decline in the sales price of Vitamin C products[60]. - The company recorded a net loss of RMB 105 million for the year, compared to a net profit of RMB 291 million in 2022, primarily due to fair value losses on financial assets[62]. - The cash inflow from operating activities in 2023 was RMB 4,179 million, down from RMB 7,627 million in 2022, indicating a decline of 45.1%[68]. - The company's capital expenditure for 2023 was RMB 1,863 million, primarily for building production facilities and improving production efficiency[68]. Market and Product Development - The pharmaceutical industry is recovering post-pandemic, with a 61.7% average price reduction for newly negotiated drugs in the national medical insurance catalog[5]. - The number of approved innovative drugs has significantly increased, indicating improved R&D capabilities of domestic pharmaceutical companies[6]. - The company has over 60 key candidate products in clinical stages, with several having global patents and high market value[7]. - The company is expanding internationally, establishing a headquarters in Singapore and focusing on high-end complex formulations in markets like Europe, the US, and Japan[7]. - The company completed three major product licensing agreements, including an exclusive licensing agreement with Corbus Pharmaceuticals for SYS6002, marking a significant milestone in its international recognition[8]. - The company aims to enhance its R&D capabilities and international presence, focusing on gene therapy and cell therapy, while pursuing collaborations with biotech firms[9]. - The pharmaceutical group recorded a revenue of RMB 25.637 billion in 2023, an increase of 4.6% compared to the previous year[13]. - The group has approximately 130 new drug projects in development, with nearly 50 innovative drugs expected to be submitted for approval in the next five years[12]. - The group has established a professional marketing team of over 10,000 people, enhancing its market penetration and coverage[12]. - The group is actively expanding its market presence in county-level markets to provide quality medications to grassroots populations[12]. Sales Performance by Segment - The sales in the neurology segment reached RMB 9.089 billion, reflecting a growth of 12.1%[13]. - The oncology segment experienced a decline in sales, totaling RMB 6.139 billion, down 16.4%[13]. - The respiratory segment saw significant growth, with sales increasing by 124.0% to RMB 1.560 billion[13]. - The new product, 多恩益®, quickly gained market traction after its approval this year, contributing to the oncology segment's performance[16]. - 多恩達® has been well received in the market, covering over 670 hospitals, and was successfully included in the national medical insurance catalog in December 2023, positively impacting future sales[17]. - 多恩益® was approved in September 2023 for use in metastatic pancreatic cancer, with rapid sales growth expected as it focuses on gastrointestinal tumors[17]. - 津立泰®, a first-in-class IgG4 RANKL inhibitor, received approval in September 2023 and is being actively promoted for market coverage[17]. - 克必妥®, the first approved dual-target PI3K δ/γ inhibitor in China, was included in the national medical insurance catalog in December 2023, which is expected to boost sales[18]. - 戈瑞特® sales have rapidly increased since being selected in the national procurement process in 2022, with plans to expand into additional cancer types[18]. - 安複利克® sales revenue doubled due to strong market demand and successful academic promotion activities, highlighting its clinical advantages[19]. Research and Development - Research and development expenses reached RMB 4.830 billion in 2023, a 21.2% increase year-on-year, accounting for 18.8% of the revenue from the pharmaceutical business[28]. - Four innovative drugs and one special formulation were approved for market entry in China from the beginning of 2023, with five innovative drug applications accepted[29]. - The company developed a new mRNA vaccine for COVID-19, which was included for emergency use in China in March 2023, marking it as the first mRNA vaccine approved in the country[30]. - The innovative drug JMT103 was approved in September 2023 for treating inoperable bone giant cell tumors, being the first IgG4 subtype fully human anti-RANKL monoclonal antibody approved globally[31]. - The company has 60+ key drugs in clinical or application stages, with 7 submitted for market approval and 18 in the registration clinical phase[28]. - Eight generic drugs received registration approval since the beginning of 2023, including the first generic of Duloxetine, enhancing the company's product line in the mental health sector[35]. - The company submitted an NDA for Liposomal Irinotecan to the FDA in December 2023, indicating progress in its oncology pipeline[35]. - The Phase III clinical trial for the combination of Pertuzumab, Trastuzumab, and Docetaxel in early or locally advanced HER2-positive breast cancer commenced in January 2023, with patient enrollment ongoing[35]. - The company achieved a significant milestone with the publication of TRACE-2 trial results in The Lancet, demonstrating non-inferiority of its thrombolytic agent compared to Alteplase[44]. - The Phase III clinical trial for the treatment of moderate to severe plaque psoriasis with Ustekinumab began in April 2023, with the first patient dosed[40]. Financial Position and Management - The company's net assets increased to RMB 35,018,012 thousand in 2023, up from RMB 31,641,875 thousand in 2022, reflecting a growth of approximately 10.5%[72]. - The total liabilities decreased from RMB 10,182,573 thousand in 2022 to RMB 8,958,000 thousand in 2023, indicating a reduction of about 12%[72]. - The company reported a significant increase in accounts payable, rising to RMB 2,426,115 thousand in 2023 from RMB 1,507,986 thousand in 2022, which is an increase of approximately 60.9%[72]. - The company’s reserves grew to RMB 22,303,796 thousand in 2023, compared to RMB 19,298,122 thousand in 2022, marking an increase of about 15.5%[72]. - The company has restructured its operational categories to enhance business synergies, with new classifications for certain products[75]. - The company’s bank borrowings increased to RMB 450,216 thousand in 2023 from RMB 153,484 thousand in 2022, reflecting a significant rise of approximately 194%[72]. - The company anticipates that all outstanding sales contracts will be fulfilled within one year, indicating a strong outlook for revenue recognition[76]. - The company’s financial expenses were RMB 24,891 thousand, reflecting a stable cost structure[79]. - The company repurchased a total of 30,000,000 shares during the year, with a total cost of RMB 200,358,000, aimed at enhancing shareholder value[99].

Financial Performance - Total revenue for the nine months ended September 30, 2023, was RMB 23.87 billion, an increase of 1.6% compared to RMB 23.50 billion in the same period last year[3] - Shareholders' basic profit attributable to the company was RMB 4.95 billion, up 0.6% from RMB 4.47 billion year-on-year[3] - The company reported a net profit attributable to shareholders of RMB 4,494,641,000 for the nine months ended September 30, 2023, compared to RMB 4,467,837,000 for the same period in 2022, reflecting a slight increase[17] - The basic earnings attributable to shareholders for the same period was RMB 4,715,187,000, up from RMB 4,623,720,000 in 2022, indicating a growth of approximately 2%[17] - The company reported total comprehensive income of RMB 4,654,129 thousand, compared to RMB 4,681,430 thousand in the same period last year[20] - Net profit for the period was RMB 4,645,016 thousand, a slight increase from RMB 4,570,945 thousand in the prior year, resulting in a basic earnings per share of RMB 37.84[19][20] Revenue Breakdown - The pharmaceutical business generated revenue of RMB 19.34 billion, a 3.9% increase, despite a decline in sales of anti-tumor products[4] - Revenue from functional foods and others was RMB 1.65 billion, down 5.6% year-on-year[7] - The raw materials business reported a revenue of RMB 2.88 billion, a decrease of 8.2%, primarily due to weak pricing, with vitamin C sales down 23.5%[6] - Sales in the neurology segment increased by 15.2% to RMB 6.93 billion, while anti-tumor sales decreased by 21.2% to RMB 4.62 billion[5] - Sales of pharmaceutical products reached RMB 19,303,355 thousand, while vitamin C sales were RMB 1,512,917 thousand, indicating a strong performance in these categories[24] Research and Development - R&D expenses reached RMB 3.68 billion, a 25.9% increase, accounting for 19.0% of the pharmaceutical business revenue[7] - The company has approximately 60 key drugs in clinical or application stages, with 7 submitted for market approval[7] - New product approvals include a novel mRNA vaccine for COVID-19 and several new drugs for various cancers and conditions[8][9] - The company received clinical trial approvals for 15 innovative drugs and 13 new indications since the beginning of 2023[10] - The company initiated a Phase III clinical trial for Mingfule® (rhTNK-tPA) for treating acute ischemic stroke, showing non-inferiority to alteplase in efficacy[13] - The company initiated a Phase II clinical study for CM326 (TSLP antibody) in moderate to severe asthma, with the first patient enrolled in May 2023[13] - The company received drug registration approvals for seven generic drugs since the beginning of 2023, including Apremilast tablets and Mirabegron extended-release tablets[11] - CPO301 (antibody-drug conjugate) received clinical trial approval in the US in April 2023 and was granted Fast Track designation in June 2023[12] - The company signed an exclusive licensing agreement with Corbus Pharmaceuticals for SYS6002 (Nectin-4 ADC), receiving an upfront payment of $7.5 million and potential milestone payments totaling up to $1.3 billion[15] - The company has submitted 20 PCT international patent applications and received 58 patent grants since the beginning of 2023[14] Financial Costs and Expenses - The company reported a fair value loss of RMB 88,932,000 on financial assets measured at fair value through profit or loss for the nine months ended September 30, 2023[17] - The company recognized other income of RMB 464,997 thousand, up from RMB 336,615 thousand in the previous year, reflecting improved operational efficiency[19] - The financial cost for the period was RMB 16,877 thousand, a slight increase from RMB 15,000 thousand in the previous year[19] - The company reported total depreciation and amortization amounted to RMB 811,850,000, an increase of 11.2% from RMB 729,754,000 in the same period of 2022[27] - The share-based employee compensation expense for the nine months ended September 30, 2023, was RMB 169,297,000, up 28.1% from RMB 132,110,000 in the prior year[27] - Government grants recognized as other income decreased to RMB (168,065,000) for the nine months ended September 30, 2023, compared to RMB (80,578,000) in the same period of 2022[27] - Fair value losses on financial assets recognized in profit or loss were RMB 88,932,000 for the nine months ended September 30, 2023, significantly higher than RMB 26,113,000 in the previous year[27] - The net foreign exchange loss for the nine months ended September 30, 2023, was RMB (77,356,000), compared to RMB (125,359,000) in the same period of 2022, indicating an improvement[27] - The depreciation of property, plant, and equipment for the nine months ended September 30, 2023, was RMB 629,108,000, an increase of 7.5% from RMB 585,214,000 in the same period of 2022[27] - The amortization of intangible assets increased to RMB 53,594,000 for the nine months ended September 30, 2023, compared to RMB 33,108,000 in the same period of 2022, reflecting a growth of 61.9%[27] Corporate Governance and Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[19] - The restructuring of operational categories aims to enhance business synergies and improve reporting efficiency[23] - The company’s financial data for the nine months ended September 30, 2023, was prepared based on internal records and management accounts and has not been reviewed or audited by external auditors[29] - The board of directors includes a diverse group of executives and independent non-executive directors, ensuring a broad range of insights and governance[29]

Financial Performance - Total revenue for the first half of 2023 was RMB 16.08 billion, an increase of 3.0% compared to RMB 15.61 billion in the same period of 2022[10]. - Shareholders' basic profit for the first half of 2023 was RMB 3.16 billion, up 3.0% from RMB 3.07 billion in the same period of 2022[10]. - The revenue from the pharmaceutical business was RMB 12.93 billion, representing a growth of 5.2% year-on-year[14]. - The sales revenue in the neurology sector increased by 17.5% to RMB 4.55 billion, while oncology sales decreased by 26.0% to RMB 2.99 billion[15]. - The revenue from the cardiovascular sector decreased by 15.3% to RMB 1.29 billion, while respiratory sales surged by 219.2% to RMB 874 million[15]. - The sales revenue for the raw material products business in the first half of 2023 was RMB 1.97 billion, a year-on-year decrease of 9.6%, with Vitamin C sales dropping by 25.7% to RMB 1.04 billion[26]. - The functional foods and other businesses recorded sales revenue of RMB 1.18 billion in the first half of 2023, representing a year-on-year growth of 3.5%[27]. - The gross profit margin for the first half of 2023 decreased by 2.7 percentage points to 69.9%, attributed to changes in revenue structure and a decline in the sales price of Vitamin C products[39]. - The company recorded net income of RMB 20 million in the first half of 2023, down from RMB 50 million in the same period of 2022, mainly due to fair value losses on financial assets[41]. Research and Development - The R&D team consists of over 2,000 members, focusing on innovative drug development in various therapeutic areas including oncology and infectious diseases[11]. - The company invested RMB 2.30 billion in R&D in the first half of 2023, an increase of 22.3%, accounting for 17.8% of the pharmaceutical business revenue[29]. - The company has 60 key drug candidates in clinical or application stages, with 8 submitted for market approval and 16 in registration or nearing submission[29]. - The company is leveraging advanced technologies such as mRNA and AI in drug development, with a focus on unmet clinical needs[11]. - The new COVID-19 mRNA vaccine, Duentai, was included for emergency use in March 2023, targeting individuals over 18 for booster immunization[28]. - The results of the TRACE-2 Phase III clinical trial for Mingfule® (rhTNK-tPA) were published in The Lancet, demonstrating non-inferior efficacy compared to alteplase and similar safety profiles[34]. - The Phase III trial for SYSA1903 (injectable omalizumab) achieved its predefined endpoints for chronic spontaneous urticaria patients who remained symptomatic after H1 antihistamine treatment[34]. - The company is focusing on expanding its pipeline with multiple drugs in critical clinical trials across various therapeutic areas, including oncology and immunology[36]. Product Development and Sales - The company is actively developing new products and expanding its sales channels, including retail and internet pharmaceutical platforms[13]. - Shuanling® recorded rapid sales growth by expanding into neurology and endocrinology, while also developing the nephrology field[16]. - The sales of Enlivi® (Lacosamide) rapidly increased following its inclusion in the national medical insurance catalog in March 2023 through price negotiation[16]. - The newly launched Oushuan® for treating schizophrenia is currently the lowest-cost paliperidone product in daily treatment expenses[16]. - The sales of Jinyouli® (Pegylated Recombinant Human Granulocyte Colony-Stimulating Factor Injection) achieved rapid growth in six provinces after the implementation of the Guangdong Alliance procurement results[19]. - The sales revenue of Kelei® (Paclitaxel Injection) significantly declined due to new procurement prices implemented in various provinces after the Henan Alliance procurement renewal in 2022[19]. - The sales of multiple anti-infection products, including Nuomolin® and Weihong®, accelerated due to selection in national or provincial alliance procurement[20]. - The respiratory product line, including Yiluo Da® (Nintedanib), achieved rapid sales growth since its launch in 2022, specifically targeting SSc-ILD and PF-ILD[24]. Financial Position - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 11.21 billion, an increase from RMB 10.50 billion at the end of 2022[47]. - The company’s asset-liability ratio was 0.2% as of June 30, 2023, down from 0.6% at the end of 2022, indicating a strong financial position[47]. - The company reported a total asset value of RMB 33,511,887,000 as of June 30, 2023, compared to RMB 31,641,875,000 at the end of 2022, indicating an increase of about 5.9%[60]. - The company's equity attributable to owners increased to RMB 31,819,480,000 from RMB 30,197,534,000, marking a rise of about 5.4%[58]. - The company’s total reserves rose to RMB 20,920,068,000, compared to RMB 19,298,122,000, reflecting an increase of about 8.4%[58]. - The company’s bank borrowings decreased significantly to RMB 55,370,000 from RMB 153,484,000, a reduction of approximately 64.0%[58]. Shareholder Information - The company declared an interim dividend of HKD 0.14 per share, a 40.0% increase from HKD 0.10 per share in 2022[10]. - The company repurchased a total of 30,000,000 shares, reducing the issued shares to 11,903,219,732 as of June 30, 2023[22]. - Major shareholder Tsai Dongchen holds 2,600,868,710 shares, representing approximately 23.74% of the company's issued shares[138]. - The second major shareholder, Liancheng Holdings Limited, owns 2,600,868,710 shares, accounting for 21.85% of the total[138]. - The company aims to align the interests of selected participants with shareholders through its share reward plan[123]. Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules throughout the reporting period[140]. - The company has adopted the standard code of conduct for securities transactions as per the listing rules[141]. - The company’s audit committee reviewed the interim results for the six months ended June 30, 2023[142].

Financial Performance - Total revenue for the first half of 2023 was RMB 16.08 billion, an increase of 3.0% compared to RMB 15.61 billion in the same period of 2022[3]. - Shareholders' profit attributable to the company was RMB 2.97 billion, remaining stable compared to RMB 2.97 billion in the same period of 2022[3]. - Basic earnings per share for the first half of 2023 was RMB 24.95, up 0.2% from RMB 24.89 in the same period of 2022[3]. - The total comprehensive income for the first half of 2023 was RMB 3.076 billion, compared to RMB 3.080 billion in the same period of 2022[39]. - The net profit for the first half of 2023 was RMB 20 million, a decrease from RMB 50 million in the same period of 2022, primarily due to a fair value loss of RMB 91 million on financial assets[31]. - The gross profit margin for the first half of 2023 decreased by 2.7 percentage points to 69.9%, attributed to changes in revenue structure and a decline in the selling price of vitamin C products[29]. - The company reported a pre-tax profit of RMB 3,681,554,000 for the six months ended June 30, 2023, compared to RMB 3,719,460,000 for the same period in 2022[52]. Dividends - The company declared an interim dividend of HKD 0.14 per share, a 40.0% increase from HKD 0.10 per share in 2022[4]. - The company declared an interim dividend of HKD 0.14 per share for 2023, compared to HKD 0.10 per share in 2022, amounting to approximately RMB 1,077,797,000[57]. - The company declared an interim dividend of HKD 0.11 per share (approximately RMB 0.101) for the fiscal year, compared to HKD 0.10 per share (approximately RMB 0.086) in the previous year, resulting in a total dividend payment of RMB 1,203,729 thousand for the current period, up from RMB 1,019,165 thousand in the prior period[58]. Revenue Breakdown - Revenue from the pharmaceutical business reached RMB 12.93 billion, a year-on-year increase of 5.2%[7]. - The revenue breakdown includes RMB 12,933,714,000 from pharmaceuticals, RMB 1,043,289,000 from Vitamin C, RMB 1,068,199,000 from antibiotic raw materials, and RMB 1,289,081,000 from functional foods and others[49]. - The total sales from external customers for pharmaceuticals reached RMB 12,899,014,000, while sales from functional foods amounted to RMB 1,176,881,000[49]. Research and Development - R&D expenses for the first half of 2023 amounted to RMB 2.30 billion, a year-on-year increase of 22.3%, representing 17.8% of the pharmaceutical business revenue[21]. - The company has approximately 60 key drugs in clinical or application stages, with 8 submitted for market approval[21]. - The company is advancing the development of iterative mRNA vaccines targeting new variants of COVID-19[21]. - The company is developing a range of new products, including a multi-valent mRNA vaccine targeting COVID-19 variants and a long-acting GLP1-IgD/IgG4 Fc fusion protein[27]. - The antibody-drug conjugate CPO301 received clinical trial approval in the U.S. in April 2023 and fast track designation in June 2023[23]. Market and Product Development - The company is focusing on developing innovative products in areas such as oncology, cardiovascular, and infectious diseases, leveraging advanced technologies like mRNA and AI[6]. - The company has established a professional marketing team of over 10,000 people to enhance market penetration and develop county-level market potential[6]. - Duomeisu® is the leading brand of liposomal doxorubicin in China, supported by the National Key Laboratory for New Drug Formulation and Materials, and has seen steady growth through market expansion in cities and counties[11]. - Jinyouli® is China's first independently developed long-acting white blood cell booster, with rapid sales growth in six provinces following the implementation of the Guangdong alliance procurement results[12]. - Kelei® experienced a significant drop in sales revenue due to new procurement prices implemented in various provinces, prompting the company to promote its use in more tumor types to increase market share[12]. - Duenda® is the world's first marketed mitoxantrone nano-drug, launched in January 2022, and has received positive market feedback through academic promotion and evidence-based medicine[12]. - Anfuleke® was prioritized for approval as a clinically urgent product and has seen rapid sales growth after being included in the national medical insurance catalog[13]. - Mingfuluo® is a third-generation thrombolytic drug recommended in multiple clinical guidelines, with new indications for acute ischemic stroke submitted for approval, which will significantly expand its market[15]. - YiluoDa® is the first generic version of nintedanib in China, with continuous rapid sales growth since its launch in 2022[16]. - Qixin® is a first-line antiviral drug for influenza, with strong sales growth following its selection in the national centralized procurement[16]. - The company is actively promoting KebiTuo®, a dual-target inhibitor, to enhance its academic outreach and market presence[12]. - The sales of various anti-infection products, including Nuomoling® and Weihong®, have accelerated due to selection in national or provincial alliance procurements[13]. Financial Position - As of June 30, 2023, the current ratio was 2.7, unchanged from six months prior, indicating stable financial health[37]. - The bank deposits and cash as of June 30, 2023, amounted to RMB 11.205 billion, an increase from RMB 10.498 billion as of December 31, 2022[37]. - As of June 30, 2023, total assets amounted to RMB 34,647,565 thousand, an increase of 5.6% from RMB 32,811,774 thousand as of December 31, 2022[41]. - The company reported an increase in non-current assets to RMB 19,291,668 thousand as of June 30, 2023, compared to RMB 17,812,614 thousand at the end of 2022, reflecting a growth of 8.2%[40]. - Trade receivables rose significantly to RMB 5,415,329 thousand, a 37.5% increase from RMB 3,937,967 thousand as of December 31, 2022[40]. - The company's cash and cash equivalents stood at RMB 10,465,265 thousand, slightly up from RMB 10,298,007 thousand at the end of 2022, indicating a 1.6% increase[40]. - Current liabilities increased to RMB 9,025,669 thousand, compared to RMB 8,958,000 thousand at the end of 2022, marking a rise of 0.7%[41]. - The net asset value of the company reached RMB 33,511,887 thousand, up from RMB 31,641,875 thousand, representing a growth of 5.9%[41]. - The company’s total equity increased to RMB 33,511,887 thousand, compared to RMB 31,641,875 thousand, indicating a growth of 5.9%[41]. Operational Efficiency - Sales and distribution expenses for the first half of 2023 were RMB 4.902 billion, a reduction of 9.4% compared to RMB 5.410 billion in the first half of 2022[32]. - Research and development expenses increased by 22.3% to RMB 2.304 billion in the first half of 2023, up from RMB 1.884 billion in the same period of 2022, due to increased spending on ongoing and newly initiated clinical studies[32]. - The company incurred total depreciation and amortization expenses of RMB 531,900,000 for the six months ended June 30, 2023, compared to RMB 481,634,000 for the same period in 2022[52]. - The company has restructured its operational segments to enhance synergies, with certain raw materials now reported under functional foods[48]. Corporate Governance and Shareholder Engagement - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[68]. - The company repurchased a total of 30,000,000 shares during the six months ended June 30, 2023, at a total cost of RMB 200,358 thousand, aimed at enhancing earnings per share and maximizing shareholder returns[70]. - The company plans to suspend share registration from September 11 to September 12, 2023, to ensure entitlement to the interim dividend[69].

Financial Performance - Total revenue for the first quarter of 2023 was RMB 8.05 billion, an increase of 2.3% compared to RMB 7.87 billion in the same period of 2022[3]. - Shareholders' profit attributable to the company was RMB 1.43 billion, up 1.7% from RMB 1.40 billion in the same period of 2022[3]. - The gross profit for the same period was RMB 5,518,599 thousand, down from RMB 5,810,962 thousand in 2022, indicating a decrease of 5.0%[16]. - The company reported a net profit attributable to shareholders of RMB 1,428,843 thousand for the three months ended March 31, 2023, compared to RMB 1,404,519 thousand in 2022, reflecting a growth of 1.7%[14]. - The company recorded a net profit of RMB 258,075 thousand for the three months ended March 31, 2023, compared to RMB 238,994 thousand in the same period last year, reflecting an increase of approximately 7.99%[23]. - The company’s financial expenses amounted to RMB 4,429 thousand during the reporting period[20]. Revenue Breakdown - The revenue from the pharmaceutical business was RMB 6.42 billion, reflecting a 1.9% increase year-on-year, despite weak sales in anti-tumor products due to price reductions[4]. - The sales revenue from raw materials decreased by 4.6% to RMB 1.02 billion, primarily due to a decline in vitamin C sales[6]. - Revenue from functional foods and other products increased by 21.7% to RMB 615 million, driven by growth in caffeine products[7]. - The total sales from functional foods and other categories were RMB 681,788 thousand, showing a significant contribution to overall revenue[20]. - The sales of pharmaceutical products reached RMB 6,386,810 thousand, while raw material products generated RMB 551,046 thousand in revenue[20]. Research and Development - R&D expenses for the period were RMB 1.01 billion, an increase of 11.8%, accounting for 15.7% of pharmaceutical business revenue[9]. - Research and development expenses increased to RMB 1,007,649 thousand from RMB 901,517 thousand in the previous year, showing a rise of 11.8%[16]. - The company submitted 9 PCT international applications and received 16 patent grants, indicating ongoing innovation and intellectual property development[11]. Clinical Trials and Product Development - The company launched a new mRNA vaccine for COVID-19 in March 2023, which is now included in emergency use in China[8]. - In March 2023, the company completed the first patient dosing in a Phase III clinical trial for Donada (mitoxantrone hydrochloride liposome injection) for the treatment of platinum-resistant recurrent metastatic nasopharyngeal carcinoma[11]. - The company achieved the predefined endpoint in a Phase III trial for SYSA1903, a recombinant anti-IgE monoclonal antibody, for chronic spontaneous urticaria after H1 antihistamine treatment[11]. - The company initiated a randomized, double-blind, placebo-controlled Phase II/III clinical study for CM310 (IL-4Rα antibody) targeting moderate to severe asthma in March 2023[11]. - The company plans to continue developing new mRNA vaccines to address ongoing virus mutations and health threats[8]. Strategic Partnerships and Agreements - The company signed an exclusive licensing agreement with Corbus Pharmaceuticals, receiving an upfront payment of USD 7.5 million for the development and commercialization rights of SYS6002 (Nectin-4 ADC) in multiple regions[12]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[24]. Market Performance - Sales in the neurology segment increased by 9.8% to RMB 2.13 billion, while anti-tumor sales decreased by 33.1% to RMB 1.44 billion[5]. - The company reported a pre-tax profit of RMB 1,780,961 thousand for the three months ended March 31, 2023[20]. - Total revenue for the three months ended March 31, 2023, was RMB 8,208,384 thousand, a slight increase from RMB 7,967,163 thousand in the same period last year, representing a growth of approximately 3.02%[21]. - The gross profit for the same period was RMB 1,822,014 thousand, compared to RMB 1,873,870 thousand in the previous year, indicating a decrease of about 2.76%[21].

Financial Performance - Total revenue increased by 11.0% to RMB 30.94 billion in 2022, with net profit attributable to shareholders rising by 8.7% to RMB 6.09 billion[4][5] - Revenue from the pharmaceutical business grew by 8.1% to RMB 24.52 billion, while revenue from raw material products increased by 16.5% to RMB 4.45 billion[4] - Functional food and other products revenue surged by 43.9% to RMB 1.97 billion[4] - Basic earnings per share increased by 9.0% to RMB 51.11 cents, with a full-year dividend per share rising by 16.7% to 21 HK cents[4][6] - Revenue for the year reached RMB 30.937 billion, an increase of 11.0% compared to RMB 27.867 billion in 2021, driven by growth in pharmaceutical, raw material, and functional food businesses[50] - Gross margin decreased by 3.9 percentage points to 71.9%, primarily due to changes in revenue structure and a decline in vitamin C product prices[50] - Revenue increased to RMB 30,936,904 thousand in 2022, up from RMB 27,866,870 thousand in 2021, representing an 11% growth[144] - Gross profit rose to RMB 22,256,414 thousand in 2022, compared to RMB 21,135,094 thousand in 2021, a 5.3% increase[144] - Net profit for the year reached RMB 6,232,050 thousand in 2022, up from RMB 5,688,124 thousand in 2021, a 9.6% growth[144] - Basic earnings per share increased to RMB 51.11 cents in 2022, compared to RMB 46.89 cents in 2021, a 9% rise[144] - Total comprehensive income for the year was RMB 6,295,556 thousand in 2022, up from RMB 5,676,201 thousand in 2021, a 10.9% increase[145] - Revenue for the year ended December 31, 2022, was RMB 10,899,412 thousand[149] - Net profit attributable to the company's owners for the year was RMB 6,091,390 thousand[149] - Other comprehensive income for the year, net of tax, was RMB 63,506 thousand[149] - Total comprehensive income for the year was RMB 6,295,556 thousand[149] - Dividends paid to equity holders amounted to RMB 2,086,961 thousand[149] - The company's total equity as of December 31, 2022, was RMB 31,641,875 thousand[149] - Operating profit before tax increased to RMB 7,582,261 thousand in 2022, up from RMB 6,847,096 thousand in 2021, reflecting a growth of 10.7%[151] - Net cash generated from operating activities reached RMB 7,627,064 thousand in 2022, a significant increase from RMB 4,636,627 thousand in 2021, showing a growth of 64.5%[151] - Dividends paid amounted to RMB 2,096,961 thousand in 2022, up from RMB 1,690,763 thousand in 2021, reflecting a 24% increase[153] - The company's cash and cash equivalents at the end of 2022 stood at RMB 8,000,852 thousand, down from RMB 9,059,709 thousand at the beginning of the year[153] Product and Business Performance - The company's pharmaceutical business recorded revenue of RMB 24.52 billion in 2022, an increase of 8.1% year-on-year, including RMB 186 million in licensing fee revenue[17] - The company's anti-infective drug sales increased by 20.1% to RMB 3.54 billion in 2022, while respiratory system drug sales surged by 54.5% to RMB 621 million[18] - The company's neurological drug sales reached RMB 8.108 billion in 2022, a 7.5% increase year-on-year, with its flagship product Enbipu maintaining stable sales growth[18][19] - Sales revenue of Vitamin C increased by 17.7% to RMB 2.529 billion in 2022, with production and sales volumes rising simultaneously[26] - Antibiotics and other products saw a 15.1% increase in sales revenue to RMB 1.922 billion in 2022, driven by higher sales volumes and prices[27] - Functional food and other business sales revenue reached RMB 1.966 billion in 2022, a 43.9% increase year-over-year, driven by growth in caffeine product sales volume and average selling price, although sales of Guoweikang® (vitamin C health products) declined[28] R&D and Innovation - The company launched two new innovative drugs in 2022: Duoneda® (Mitoxantrone Hydrochloride Liposome Injection) in January and Kebituo® (Duvelisib Capsules) in November[8] - The company's mRNA COVID-19 vaccine (SYS6006) was granted emergency use authorization in China in March 2023[8] - Over 50 new drugs are in clinical stages, with 9 submitted for market approval and 16 in key clinical trials[9] - The company completed 2 product licensing and acquisition projects, as well as 2 out-licensing deals for innovative antibody-drug conjugates[9] - The company's R&D team consists of over 2,000 people, with five key R&D centers located in Shijiazhuang, Shanghai, Beijing, and the United States, focusing on six major therapeutic areas[15] - The company has over 110 innovative drug projects in the pipeline, including approximately 40 large molecules, 40 small molecules, and 30 novel formulations, with more than 40 innovative drugs expected to be approved in the next five years[15] - The company's broad-spectrum anti-variant COVID-19 mRNA vaccine received emergency use authorization in March 2023[15] - The company is advancing its research in nucleic acid drugs, gene therapy, and cell therapy, aiming to develop innovative CAR-T therapies and establish a leading position in these emerging technology fields[11] - The company is strengthening its overseas R&D team and accelerating the development and approval of innovative drugs in the US and other international markets[11] - R&D expenses in 2022 amounted to RMB 3.987 billion, a 16.1% increase year-over-year, accounting for 16.3% of the pharmaceutical business revenue[29] - The company has over 50 key drugs in clinical or application stages, with 9 submitted for market approval and 16 in registration clinical or about to submit for market approval[29] - The company's self-developed anti-tumor nanodrug, Duoneda® (mitoxantrone hydrochloride liposome injection), received market approval in January 2022 for treating peripheral T-cell lymphoma (PTCL)[30] - The company's mRNA vaccine for COVID-19 (SYS6006) was included in emergency use in China in March 2023[30] - Since the beginning of 2022, the company has obtained clinical trial approvals for 14 first indications and 10 additional indications of innovative drugs[31] - The company has completed Phase I and II clinical trials and sequential booster immunization clinical trials for its COVID-19 mRNA vaccine (SYS6006), involving over 5,500 participants, demonstrating its efficacy and safety[35] - The company has built a GMP-compliant production facility for its COVID-19 mRNA vaccine, achieving self-sufficiency in key raw materials and excipients, significantly reducing production costs[35] - In the US, JMT601 (CPO107) received Fast Track designation in January 2022 for treating relapsed or refractory diffuse large B-cell lymphoma[34] - Since the beginning of 2022, the company has obtained 16 generic drug registration approvals, including lenvatinib mesylate capsules and esomeprazole sodium for injection[33] - Doxorubicin Hydrochloride Liposome Injection (Doxorubicin®) showed controllable safety and visible efficacy in Ib clinical trials for platinum-refractory or platinum-resistant recurrent ovarian cancer and recurrent/metastatic head and neck squamous cell carcinoma, with results presented at ASCO 2022[36] - Doxorubicin® combined with pegaspargase demonstrated significant efficacy in treating extranodal NK/T-cell lymphoma (ENKTCL), particularly in treatment-naive patients, with results presented at ESMO 2022[36] - Recombinant Human TNK Tissue Plasminogen Activator (Mingfule®) met the primary endpoint in a Phase III trial for acute ischemic stroke, showing non-inferior efficacy to alteplase and a trend of improved efficacy, with results published in The Lancet[37] - JMT103 (Naloxone Baiting Injection) achieved a tumor response rate of 93.5% in a key clinical trial for unresectable or difficult-to-operate giant cell tumor of bone, showing better efficacy than the denosumab group[38] - DBPR108 (Puloglitide Tablets) met primary endpoints in two Phase III trials for type 2 diabetes, showing significant HbA1c reduction compared to placebo and non-inferiority to sitagliptin[39] - SYHA1813 oral solution demonstrated acceptable tolerability and preliminary anti-tumor activity in a Phase I trial for recurrent or advanced solid tumors, with results presented at ESMO 2022[40] - SYSA1903 (Recombinant Anti-IgE Monoclonal Antibody Injection) met the primary endpoint in a Phase III equivalence trial for chronic spontaneous urticaria[41] - Naloxone Baiting Injection (JMT103) has submitted a Biologics License Application (BLA) for giant cell tumor of bone[42] - Recombinant Human TNK Tissue Plasminogen Activator (Mingfule®) has submitted a BLA for hyperacute ischemic stroke[42] - DBPR108 (Puloglitide Tablets) has submitted a pre-NDA for diabetes treatment[42] Corporate Governance and Leadership - The company maintains an MSCI ESG rating of 'A' in 2022[9] - The company separated the roles of Chairman and CEO on May 27, 2022, appointing Zhang Cuilong as CEO while Cai Dongchen remained as Chairman[63] - The board consists of 14 male and 1 female members, with a total workforce of 24,837 employees (51.4% female, 48.6% male)[65] - The Remuneration Committee held 3 meetings in 2022 to review executive compensation policies and structures[66] - The Nomination Committee held 3 meetings in 2022 to evaluate board structure and recommend new director appointments[67] - The Audit Committee held 4 meetings in 2022 to review financial reports, risk management, and internal control systems[68] - All directors confirmed compliance with the Model Code for Securities Transactions throughout 2022[69] - All directors participated in continuous professional development training in 2022, including attending training courses, seminars, forums, and meetings, as well as reviewing materials related to the company or its business[71] - The company has established an effective mechanism for the board to obtain independent opinions and advice, which is reviewed annually for effectiveness[72] - The company's risk management framework ensures effective control of risks within the group's risk appetite, with business units responsible for identifying and managing risks, management overseeing activities, and the board reviewing system effectiveness[73] - The internal audit function conducted an annual review of the effectiveness of the company's risk management and internal control systems in 2022, covering major financial, operational, and compliance controls[74] - The company has adopted an anti-corruption policy and a whistleblowing policy to regulate employee conduct and provide guidance for reporting suspected or actual misconduct[75] - The company has an insider information disclosure policy with management controls to ensure timely identification, assessment, and submission of potential insider information for board decision-making[76] - The board is responsible for corporate governance functions, including reviewing and monitoring director and senior management training and continuous professional development[77] - The company's external auditor, Deloitte Touche Tohmatsu, was paid RMB 7,339,000 for audit services and RMB 467,000 for non-audit services (tax advisory and compliance) in 2022[78] - The company secretary, Mr. Lo Tai On, confirmed that he received at least 15 hours of relevant professional training in 2022[80] - The company's management attended over 300 one-on-one and group meetings with investors in 2022 to enhance transparency and understanding of the business model and development strategies[81] - Shareholders holding at least 5% of the total voting rights can request to convene a general meeting, with the request needing to specify the nature of the business to be addressed[82] - Directors must convene a general meeting within 21 days of being required to do so, and the meeting must be held within 28 days of the notice being issued[83] - Shareholders holding at least 2.5% of the total voting rights or at least 50 shareholders can request to circulate a resolution at the annual general meeting[84] - The company's main subsidiaries, associates, and joint ventures are detailed in the consolidated financial statements notes 44, 18, and 19[85] - The company faces risks related to drug approval delays or failures, which could impact the actual launch time of products in development[87] - The company's sales and profitability depend on the success of its products in China's drug bidding and centralized procurement processes[88] - The company must comply with Chinese environmental and safety regulations, with violations potentially leading to significant fines or operational disruptions[89] - The exclusion of products from the national medical insurance catalog could adversely affect sales and may require price reductions[90] - The company prohibits illegal activities by employees or third-party distributors that could influence hospital procurement decisions, with potential reputational and regulatory risks[91] - The company's total dividend for the year ended December 31, 2022, is 21 Hong Kong cents per share, consisting of an interim dividend of 10 Hong Kong cents and a proposed final dividend of 11 Hong Kong cents[99] - The company's distributable reserves as of December 31, 2022, amounted to RMB 1,798,632,000[99] - The company made charitable donations totaling RMB 84,992,000 during the year[100] - The company acquired buildings, machinery, and equipment worth RMB 1,823,293,000 during the year[101] - The company's sales to its top five customers and purchases from its top five suppliers each accounted for less than 30% of its total revenue and total purchases for the year[100] - Zhang Cuilong, aged 54, was appointed as the CEO of the company on May 27, 2022, and has been an executive director since July 2018. He holds a Bachelor's degree in Pharmacy from Hebei Medical University and has extensive experience in the pharmaceutical industry[105] - Wang Zhenguo, aged 53, has been an executive director since January 2012 and holds a Bachelor's degree in Chemistry from Nankai University. He has extensive experience in the pharmaceutical industry[106] - Pan Weidong, aged 53, has been an executive director since October 2006 and holds an Executive MBA from Tsinghua University. He has extensive experience in finance, accounting, and investment in the pharmaceutical industry[107] - Wang Huaiyu, aged 59, has been an executive director since October 2010 and holds a Bachelor's degree in Microbiology and Biochemistry from Hebei University. He has extensive experience in technology and management in the pharmaceutical industry[108] - Li Chunlei, aged 46, has been an executive director since December 2017 and is the Chief Scientist of the group, overseeing R&D. He holds a Bachelor's degree in Bio-pharmaceuticals from Jilin University and Shenyang Pharmaceutical University, a Master's degree in Microbiology and Biochemical Pharmacy from Jilin University, and a Ph.D. in Pharmaceutics from Shenyang Pharmaceutical University[109] - Wang Qingxi, aged 57, has been an executive director since August 2018 and holds a Bachelor's and Master's degree in Chemistry from Nankai University, a Master's degree in Polymer Science from the University of Connecticut, a Ph.D. in Chemistry, and an MBA from Temple University. He previously worked at Merck & Co., Inc. for 20 years[110] - Zhai Jianwen, aged 57, has been an executive director since December 2005 and is a member of the Hong Kong Institute of Certified Public Accountants and a Fellow of the Association of Chartered Certified Accountants. He holds a Bachelor's degree in Social Sciences from the University of Hong Kong and has extensive experience in finance, accounting, and investor relations[111] - Jiang Hao, aged 39, has been an executive director since November 2020 and holds a Bachelor's degree in Management from Hebei University of Technology, a Master's degree in Economic Management and Industrial Engineering from Politecnico di Milano, and a Ph.D. in Management (Technical Economics and Management) from Hebei University of Technology. He previously held senior positions at Fastenal Company and Baidu Tianjin Marketing Center[112] - Wang Bo, aged 62, has been an independent non-executive director since December 2012 and is a member of the Audit, Nomination, and Remuneration Committees. He holds a degree from Beijing Iron and Steel Institute and has extensive experience in pharmaceutical policy research and industry consulting[113] - Chen Chuan, aged 59, has been an independent non-executive director since June 2016 and is a member of the Audit, Nomination, and Remuneration Committees. He holds a Bachelor's degree in Medicine from Bethune Medical University and a Master's degree in Science from Albert Einstein College of Medicine, Yeshiva University[114] - The company's Chairman, Cai Dongchen, holds a total of 2,822,001,670 shares, representing approximately 23.65% of the company's issued shares[122] - Liancheng Holdings Limited, controlled by Cai Dongchen, holds 2,600,868,710 shares, representing approximately 21.80% of the company's issued shares[126] - Dingda Group Limited holds 1,218,834,470 shares, representing approximately 10.21% of the company's issued shares[126] - UBS Group AG holds 803,666,707 shares, representing approximately 6.73% of the company's issued shares[126] - The company's subsidiaries entered into lease agreements with Shiyao Holding Group for properties in Shijiazhuang, Hebei, with a total value of approximately RMB 220,764,000[128] - The lease agreements have a term of three years, starting from June 25, 2022, July 1, 2022,

Financial Performance - The company's total revenue for the fiscal year ended December 31, 2022, increased by 11.0% to RMB 30.94 billion, with a net profit attributable to shareholders rising by 8.7% to RMB 6.09 billion[3]. - Basic earnings per share increased to RMB 51.11, reflecting a growth of 9.0% compared to the previous year[3]. - The company reported a net profit attributable to shareholders for 2022 was RMB 6,091,390, an increase of 8.66% from RMB 5,605,185 in 2021[57]. - Cash inflow from operating activities for 2022 was RMB 7,627 million, a significant increase of 64.5% compared to RMB 4,637 million in 2021[58]. - The company's total revenue for 2022 reached RMB 30,936,904, representing a growth of 11.5% from RMB 27,866,870 in 2021[60]. - Gross margin decreased by 3.9 percentage points to 71.9%, primarily due to changes in revenue structure and a decline in the sales price of Vitamin C products[51]. - Other income for the year was RMB 604 million, up from RMB 411 million in 2021, mainly from bank interest income and government grants[52]. - The company reported a net gain of RMB 291 million in other income or losses, compared to RMB 243 million in 2021, including fair value gains on financial assets and foreign exchange gains[53]. - The company’s total liabilities increased to RMB 8,958,000 thousand in 2022 from RMB 7,226,043 thousand in 2021, indicating a rise of 24.0%[66]. - The company’s net asset value was RMB 31,641,875 thousand as of December 31, 2022, up from RMB 26,828,231 thousand in 2021, reflecting a growth of 17.5%[66]. Dividend and Shareholder Returns - The company proposed a final dividend of HKD 0.11 per share, leading to a total annual dividend of HKD 0.21, which is an increase of 16.7% from 2021[4]. - The board aims for a dividend payout ratio of no less than 30% of the group's annual core profit, subject to various factors[59]. - The company declared an interim dividend of 10 Hong Kong cents per share in 2022, compared to 8 Hong Kong cents per share in 2021, representing an increase of 25%[78]. - The company repurchased 2,054,000 shares in January 2022 at a maximum price of HKD 8.49 and a minimum price of HKD 8.44, totaling HKD 17,409,000 before expenses[89]. - The share repurchase aimed to enhance earnings per share and maximize shareholder returns[89]. Pharmaceutical Business Growth - The pharmaceutical business maintained stable growth, with new products contributing significantly to revenue, including the launch of the innovative drug Donada® and the first approved PI3K inhibitor in China[6]. - The pharmaceutical business recorded revenue of RMB 24.52 billion, an increase of 8.1% compared to the previous year[14]. - The company has over 50 new drugs in clinical stages, with 9 submitted for market approval and 16 in critical clinical trial phases, showcasing a robust pipeline[6]. - The company has over 110 innovative drug projects in development, with expectations of over 40 innovative drugs being approved in the next five years[13]. - The sales in the respiratory system treatment area increased by 54.5%, while the sales in the anti-tumor area decreased by 3.8%[15]. - The company is focusing on the development of large indication products to enhance product value and accelerate the launch of new drugs[9]. - The company is actively expanding its research and development capabilities overseas, particularly in the United States and other international markets[11]. - The company is integrating internal resources to develop new CAR-T therapy drugs and focusing on emerging technology areas such as gene therapy and cell therapy[9]. - The company is enhancing its business development ecosystem to seek global collaboration opportunities and strengthen partnerships with biotech funds in Europe and the United States[10]. Research and Development - Research and development expenses for 2022 amounted to RMB 3.987 billion, a year-on-year increase of 16.1%, representing 16.3% of the pharmaceutical business revenue[28]. - The company has developed a strong commercial capability supported by a robust sales team and successful commercialization experience[13]. - The company plans to launch over 40 innovative drugs and new formulations, along with more than 60 generic drugs in the next five years, including globally patented products with significant market value[46]. - The company is actively pursuing market expansion through new product development and strategic clinical trials[35][36][38][39][40][41][42][43]. Market Expansion and Internationalization - The outlook for 2023 emphasizes leveraging policy opportunities and continuing innovation and internationalization to enhance the company's global influence[8]. - The company aims to strengthen its international business development capabilities and enhance collaboration with overseas pharmaceutical companies[11]. - The company is actively pursuing business expansion through collaborations with biotech firms and international licensing of its innovative products[47]. Sales and Revenue Breakdown - The sales revenue of Duomeisu® decreased in 2022 due to the impact of pandemic control and adjustments in the medical insurance catalog, with plans to expand market share to 40% in lower-tier cities[18]. - The sales revenue of Kelaile® faced pressure due to significant price reductions in 2022, with efforts to increase market share in non-bid provinces[19]. - The sales revenue of Vitamin C reached RMB 2.529 billion in 2022, an increase of 17.7%, with plans to optimize customer structure and expand overseas sales channels[25]. - The sales revenue of antibiotics and other products increased by 15.1% to RMB 1.922 billion in 2022, driven by increased sales volume and price rises[26]. - The sales revenue of functional foods and other businesses reached RMB 1.966 billion in 2022, an increase of 43.9% year-on-year, driven by growth in caffeine product sales and average selling prices[27]. Clinical Trials and Approvals - The anti-tumor nano drug, Dondar®, received market approval in January 2022 for treating peripheral T-cell lymphoma, showing significantly better efficacy than other drugs[29]. - The oral dual inhibitor, Kebiotuo®, was approved in March 2022 for treating relapsed or refractory follicular lymphoma, marking it as the first approved PI3K-δ and PI3K-γ dual inhibitor globally[29]. - The mRNA vaccine SYS6006 for COVID-19 was included for emergency use in China in March 2023[29]. - The clinical trial results for Donada® (liposomal mitoxantrone injection) showed controllable safety and visible efficacy for treating platinum-resistant recurrent ovarian cancer and recurrent/metastatic head and neck squamous cell carcinoma[35]. - The phase III clinical trial for Mingfuluo® (recombinant human TNK tissue-type plasminogen activator) achieved its primary endpoint, demonstrating non-inferior efficacy compared to alteplase, with a trend towards improved efficacy[36]. - JMT103 (Nalusobai monoclonal antibody injection) demonstrated a tumor response rate of 93.5% in a key clinical trial for unresectable or surgically difficult giant cell tumors[38]. - The phase III trial for SYSA1903 (recombinant anti-IgE monoclonal antibody) achieved its predefined endpoint for chronic spontaneous urticaria patients[41]. - Ongoing exploratory studies for Mingfuluo® in treating cerebral infarction are expected to influence relevant clinical guidelines[37].

Financial Performance - The group's revenue increased by 13.8% to RMB 23.50 billion for the nine months ended September 30, 2022[3]. - Shareholders' profit attributable to the company rose by 3.1% to RMB 4.47 billion, while basic profit increased by 14.5% to RMB 4.62 billion[3][5]. - For the nine months ended September 30, 2022, total revenue reached RMB 23,495,518 thousand, a 13.5% increase from RMB 20,641,753 thousand in the same period of 2021[26]. - Gross profit for the same period was RMB 17,082,304 thousand, compared to RMB 15,655,455 thousand in 2021, reflecting a gross margin improvement[26]. - The company reported a net profit of RMB 4,570,945 thousand for the nine months ended September 30, 2022, compared to RMB 4,397,058 thousand in the previous year, indicating a growth in profitability[27]. - The company reported total comprehensive income of RMB 4,681,430 thousand for the nine months ended September 30, 2022, compared to RMB 4,400,236 thousand in the previous year[27]. - The profit before tax for the nine months ended September 30, 2022, was RMB 5,221,911,000, showing an increase from RMB 4,736,249,000 in the previous year[33]. - The basic and diluted earnings per share for the period were both RMB 37.49, up from RMB 36.26 in the same period of 2021[26]. - The basic and diluted earnings per share for the nine months ended September 30, 2022, were RMB 4,467,837,000, compared to RMB 4,335,303,000 for the same period in 2021, reflecting an increase of approximately 3.06%[36]. Business Segments - The pharmaceutical business recorded revenue of RMB 18.61 billion, with product sales contributing RMB 18.43 billion, reflecting a 10.8% year-on-year growth[7]. - The raw materials business saw a revenue increase of 20.1% to RMB 3.42 billion, driven by enhanced production capacity[8]. - Revenue from functional foods and other businesses surged by 47.6% to RMB 1.46 billion, primarily due to increased sales and prices of caffeine products[9]. - The sales revenue from the anti-infection segment increased by 25.1% to RMB 2.65 billion, while cardiovascular products grew by 2.2% to RMB 2.17 billion[7]. Research and Development - Research and development expenses amounted to RMB 2.92 billion, a 16.4% increase, representing 15.7% of the pharmaceutical business revenue[10]. - The company received multiple approvals for new drugs, including a novel anti-tumor nano-drug and the first oral dual inhibitor for lymphoma treatment in China[10][11]. - Since the beginning of 2022, the company has received clinical trial approvals for 8 first indications and 6 new indications for innovative drugs[12]. - A total of 16 generic drugs have received drug registration approvals since early 2022, including Lenvatinib Mesylate Capsules and Moxifloxacin Hydrochloride Injection[12]. - The company submitted 20 PCT international applications and 136 patent applications (98 domestic, 38 foreign) since early 2022, with 37 patents granted (22 domestic, 15 foreign)[13]. - SYS6006, an mRNA vaccine for COVID-19, has completed several clinical trials, showing high immunogenicity and safety in various age groups[14][15][16]. - The clinical trial for JMT103 showed a tumor response rate of 93.5% in patients with unresectable giant cell tumors[19]. - DBPR108 for type 2 diabetes achieved significant improvements in HbA1c levels compared to placebo in two phase III trials[20]. - The company is advancing clinical trials for SYHA1813 oral solution, showing acceptable tolerability and preliminary anti-tumor activity in high-grade glioma patients[21]. - The phase III trial for Mingfuluo demonstrated non-inferior efficacy compared to alteplase in treating acute ischemic stroke[18]. - Multiple clinical trials for the drug Dondar are ongoing, aiming to expand its indications for various cancers[17]. Strategic Initiatives - The company completed the acquisition of 51% of Guangzhou Mingkang Bioengineering Co., Ltd., increasing its stake to 54.8%, enhancing its portfolio with proprietary third-generation thrombolytic drugs[24]. - An exclusive licensing agreement was signed with Elevation Oncology, Inc., granting rights for the SYSA1801 project outside Greater China, with an upfront payment of $27 million and potential milestone payments totaling up to $1.48 billion[24]. - The company is actively expanding its international business development team to seek quality collaboration opportunities globally[24]. - The company has entered into an exclusive licensing agreement for HBM9161 in Greater China, which has completed Phase III clinical trials for myasthenia gravis, indicating potential for breakthrough therapies in autoimmune diseases[25]. Financial Adjustments - The total depreciation and amortization expenses for the nine months ended September 30, 2022, amounted to RMB 729,754,000, up from RMB 640,512,000 in 2021, indicating an increase of about 13.91%[35]. - The company reported a government grant income of RMB (80,578,000) for the nine months ended September 30, 2022, compared to RMB (42,048,000) in the previous year, which is a decrease in grant income[35]. - The total sales from external sources for the nine months ended September 30, 2022, were RMB 20,593,228,000, compared to RMB 20,641,753,000 in 2021, indicating a slight decline[33]. - The weighted average number of ordinary shares used for calculating basic earnings per share was 11,917,186,000 for the nine months ended September 30, 2022, down from 11,954,570,000 in 2021[36]. - The company recognized a reversal of impairment losses of RMB 14,791,000 in the nine months ended September 30, 2022, compared to a loss of RMB (877,000) in the previous year[35]. - The financial expenses for the nine months ended September 30, 2022, were RMB (6,446,000), reflecting a decrease from the previous year[33]. - The company reported a net foreign exchange loss of RMB (125,359,000) for the nine months ended September 30, 2022, compared to a gain of RMB 7,104,000 in 2021, indicating a significant change in foreign exchange impact[35].

Financial Performance - The company's total revenue increased by 12.9% to RMB 15.61 billion for the six months ended June 30, 2022, compared to RMB 13.82 billion in the same period of 2021[4]. - Shareholders' profit attributable to the company slightly decreased by 3.1% to RMB 2.97 billion, while basic profit increased by 14.9% to RMB 3.07 billion[5]. - The company declared an interim dividend of HKD 0.10 per share, up 25.0% from HKD 0.08 per share in 2021[5]. - Revenue for the six months ended June 30, 2022, was RMB 15.61 billion, an increase from RMB 13.82 billion for the same period in 2021, driven by growth in the pharmaceutical business (9.4%), raw material products (22.7%), and functional foods and other businesses (43.5%)[40]. - Gross margin decreased by 3.5 percentage points to 72.6%, primarily due to changes in revenue structure and a decline in the selling price of vitamin C products[40]. - Sales and distribution expenses for the six months ended June 30, 2022, were RMB 5.41 billion, up from RMB 5.32 billion for the same period in 2021, mainly due to the expansion of the sales team and increased marketing efforts for pharmaceutical products[41]. - Net profit for the period was RMB 3,027,083 thousand, a decrease from RMB 3,109,111 thousand year-on-year[56]. - Basic and diluted earnings per share were both RMB 24.89, down from RMB 25.62 in the same period last year[56]. - The company reported a net loss from investment activities of RMB 5,703,196,000 for the six months ended June 30, 2022, compared to a loss of RMB 1,699,330,000 in the same period of 2021, reflecting a substantial increase in investment expenditures[63]. Research and Development - The company has established a strong international R&D team with eight innovative R&D platforms across China and the U.S.[8]. - The company is focusing on developing advanced drug delivery technologies, including nanoliposomes and antibody-drug conjugates (ADCs)[8]. - Research and development expenses reached RMB 1.884 billion in the first half of 2022, a year-on-year increase of 16.8%, accounting for 15.3% of the pharmaceutical business revenue[20]. - There are approximately 300 ongoing research projects, including over 40 small molecule and large molecule innovative drugs, focusing on oncology, immunology, respiratory, neurological, cardiovascular, metabolic, and anti-infection fields[20]. - Four candidate innovative drugs submitted for market approval during the period, with over 50 projects in clinical research[20]. - The company has obtained clinical trial approvals for 7 new indications and 3 additional indications for its innovative drugs since the beginning of 2022[27]. - The company has several drugs in critical clinical trials, including anti-PD-1 monoclonal antibody injection for cervical cancer and recombinant human TNK tissue-type plasminogen activator for acute ischemic stroke[21]. Market and Sales Strategy - The pharmaceutical business revenue grew by 9.4% to RMB 12.29 billion, with significant growth in the anti-infection segment at 23.9%[10]. - The sales team has approximately 10,000 members, enhancing commercialization capabilities across various healthcare institutions[7]. - The company is actively developing new retail sales teams to strengthen OTC channels and internet pharmacy platforms[7]. - The company aims to expand its market presence internationally, emphasizing talent and business globalization strategies[9]. - The market share of Duomeisu (liposomal doxorubicin hydrochloride injection) has exceeded 75%, with plans to accelerate market penetration[12]. - The company aims to deepen market penetration for Klai (albumin-bound paclitaxel injection) following significant price reductions from a procurement alliance[12]. Acquisitions and Partnerships - The company completed the acquisition of 51% of Guangzhou Mingkang Biotechnology Co., increasing its stake to 54.8%[38]. - An exclusive licensing agreement was signed with Elevation Oncology, Inc., granting rights for the SYSA1801 project outside Greater China, with an upfront payment of $27 million and potential milestone payments totaling up to $1.48 billion[38]. - The company acquired 100% equity of Zhuhai Zhi Fan Enterprise Management Consulting Center for RMB 302,904,000 in January 2022, which holds a 51% stake in Guangzhou Mingkang Biotechnology Co., Ltd[115]. Financial Position and Cash Flow - Cash inflow from operating activities for the first half of 2022 was RMB 4.257 billion, compared to RMB 2.743 billion in the first half of 2021[50]. - As of June 30, 2022, the current ratio was 2.7, slightly down from 2.8 six months prior, with total bank deposits and cash amounting to RMB 9.164 billion[50]. - The company reported a total cash and cash equivalents of RMB 6,865,017,000 as of June 30, 2022, down from RMB 9,059,709,000 as of December 31, 2021[106]. - The company’s bank borrowings totaled RMB 396,367,000 as of June 30, 2022, with interest rates ranging from 1.42% to 5.46%[112]. - The company’s restricted bank deposits increased to RMB 29,203,000 as of June 30, 2022, from RMB 23,933,000 as of December 31, 2021[107]. Corporate Governance - The company has complied with the corporate governance code throughout the reporting period, with a change in CEO on May 27, 2022, to enhance business strategy execution[137]. - The company has adopted a share option scheme and share award plan, details of which are included in the financial statements[136]. - The company’s board members confirmed compliance with the standards set out in the corporate governance code during the reporting period[138]. Shareholder Information - The company’s major shareholder, Cai Dongchen, holds 2,822,001,670 shares, representing 23.65% of the total issued shares[131]. - The company’s other major shareholders include Long Cheng Holdings Limited with 2,600,868,710 shares (21.80%) and Ding Da Group Limited with 1,218,834,470 shares (10.21%) as of June 30, 2022[134]. - The company repurchased 2,054,000 shares in January 2022 at a total cost of HKD 17,409,000, with a maximum price per share of HKD 8.49 and a minimum price of HKD 8.44[140]. - The share repurchase was aimed at enhancing earnings per share and maximizing shareholder returns[141].