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].

Investment Rating - The report maintains a "BUY" rating for CSPC Pharmaceutical, with a target price revised to HK$7.76 from HK$8.16, indicating a potential upside of 21.1% from the current price of HK$6.41 [2][4]. Core Insights - CSPC reported FY23 revenue of RMB31.45 billion, reflecting a 1.7% year-over-year growth, and an attributable net profit of RMB5.87 billion, down 3.6% year-over-year. The adjusted net profit increased by 2.8% year-over-year to RMB6.28 billion [2]. - The company expects new products to significantly contribute to revenue in 2024, forecasting an additional RMB3.5-3.6 billion from these products [2]. - CSPC's R&D expenses rose by 21.2% year-over-year to RMB4.83 billion, indicating a strong commitment to innovation [2]. Financial Performance Summary - **Revenue**: FY23 revenue was RMB31.45 billion, with projections of RMB34.80 billion for FY24E, representing a 10.6% growth [3][9]. - **Net Profit**: FY23 attributable net profit was RMB5.87 billion, with expectations of RMB6.68 billion in FY24E, a 13.7% increase [3][9]. - **Gross Profit Margin**: The gross profit margin decreased to 70.5% in FY23 from 71.9% in FY22, with expectations of 70.3% in FY24E [3][10]. Sales Performance - **Finished Drugs**: Sales of finished drugs increased by 4.6% year-over-year to RMB25.64 billion, although there was a slight decline in the second half of FY23 due to anticorruption measures in China [2]. - **CNS Products**: CNS products saw a 12.1% year-over-year growth, primarily driven by strong sales of NBP [2]. - **Oncology Products**: Sales of oncology products fell by 16.4% year-over-year, largely due to a significant price cut for Keaili [2]. New Product Pipeline - CSPC has several new products expected to drive sales growth, including Mingfule, Yiluoda, and Anfulike, with management forecasting substantial revenue contributions from these products in 2024 [2][3]. - The company has had four drugs added to the National Reimbursement Drug List (NRDL) since early 2024, enhancing market access [2]. Valuation Metrics - The report provides a DCF valuation of RMB7.76 per share, with a WACC of 11.78% and a terminal growth rate of 2.0% [4][10]. - The P/E ratio is projected to decrease from 13.0x in FY23 to 10.5x in FY24E, indicating potential undervaluation [3][10].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 截至 年 月 日止年度 2023 12 31 之全年業績 石藥集團有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司（統稱「本集 團」）截至2023年12月31日止年度之經審核綜合業績。 財務摘要 （人民幣千元，除非另有指明） 2023年 2022年 變動 按業務劃分之收入： 成藥 25,637,134 24,520,067 +4.6% 原料產品 3,641,328 4,031,947 -9.7% 功能食品及其它 2,171,647 2,384,890 -8.9% 收入總額 31,450,109 30,936,904 +1.7% ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 截至 年 月 日止九個月之 2023 9 30 季度業績 石藥集團有限公司（「本公司」）董事會欣然公佈本公司及其附屬公司（「本集團」）截至2023年9 月30日止九個月之未經審核綜合業績。 財務摘要 （人民幣千元，除非另有指明） 截至9月30日止九個月 2023年 2022年 變動 （未經審核） （未經審核） 按業務劃分之收入： ...

2023 N N O O INTERIM I I T T A A V V O O N N REPORT N N I I REPORT 中期報告 中期報告 INTERIM 2023 2023 目錄 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 年中期業績 2023 石藥集團有限公司（「本公司」）董事會欣然宣佈，本公司及其附屬公司（「本集團」）截至2023 年6月30日止六個月之未經審核綜合業績。 財務摘要 （人民幣千元，除非另有指明） 截至6月30日止六個月 2023年 2022年 變幅 按業務劃分之收入： 成藥 12,933,714 12,292,908 +5.2% ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 截至 年 月 日止三個月 2023 3 31 之季度業績 石藥集團有限公司（「本公司」）董事會欣然公佈本公司及其附屬公司（「本集團」）截至2023年3 月31日止三個月之未經審核綜合業績。 財務摘要 （人民幣千元，除非另有指明） 截至3月31日止三個月 2023年 2022年 變動 ...

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,

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 截至2022年12月31日止年度 之全年業績 | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-------------------|--------------| | | | | | | 財務摘 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 （於香港註冊成立之有限公司） （股份代號：1093） 截至2022年9月30日止九個月之 季度業績 石藥集團有限公司（「本公司」）董事會欣然公佈本公司及其附屬公司（「本集團」）截至2022年9 月30日止九個月之未經審核綜合業績。 | --- | --- | --- | --- | |-----------------------------------------------------|------------------------------------|----------------------------------|-------------------| | | | | | | | 截至 9 月 30 2022 年 | 日止九個月 2021 年 | 變動 | | | （未經審核） | （未經審核） | | | 按業務劃分之收入： 成藥 原料產品 功能食品及其它 | 18,612,579 ...