Summary of the Conference Call Company and Industry Involved - The conference call involves **Huayan Pharmaceutical** and its leadership team, including Mr. Tang Guochao and Mr. Zhao [1] Core Points and Arguments - The meeting is structured into two main parts: **company introduction** and **Q&A session** [1] Other Important but Possibly Overlooked Content - The call is described as a **three-way communication** between listed companies, indicating a collaborative approach to discussing strategies and insights [1]

Market Position and Share - The company holds a 65.0% market share in the platelet reduction therapy market in mainland China for its product Tevazo as of 2023[6]. - The company has a 42.2% market share in the rhEPO market in mainland China, maintaining its leadership for over 20 years[6]. - The company’s product Mandi has a dominant market share of 72.6% in the minoxidil tincture market in mainland China as of 2023[6]. - Te Bi Ao has captured a 33.4% market share by volume and a 65.0% market share by sales in the treatment of thrombocytopenia in mainland China[24]. - Yisaipu holds a 22.7% market share in the TNFα inhibitor market in mainland China as of 2023, having been the first TNFα inhibitor launched in the region[26]. Financial Performance - The company's revenue for 2023 reached RMB 7,815,938 thousand, marking a significant increase from RMB 6,865,735 thousand in 2022, representing a growth of approximately 13.8%[10]. - Gross profit for 2023 was RMB 6,641,640 thousand, up from RMB 5,671,574 thousand in 2022, reflecting a growth of about 17.1%[10]. - The adjusted operating EBITDA for 2023 was RMB 2,768,353 thousand, compared to RMB 2,303,777 thousand in 2022, indicating an increase of approximately 20.2%[10]. - The company's total assets reached RMB 23,625,028 thousand in 2023, an increase from RMB 22,008,962 thousand in 2022, reflecting a growth of approximately 7.3%[10]. - The total liabilities increased to RMB 7,111,428 thousand in 2023 from RMB 6,645,381 thousand in 2022, representing a growth of about 7.0%[10]. Research and Development - The company has 29 active R&D projects, with 25 being innovative drugs developed in mainland China[6]. - The company has 29 products in its research pipeline, with 5 products approved for market or passed consistency evaluation in 2023[13]. - The company is actively developing 29 products, with 25 of them focused on innovative drug development in mainland China[38]. - The R&D team consists of over 600 experienced scientists focused on accelerating clinical development and seeking breakthrough therapies[37]. - The company is developing multiple innovative biological products, including SSS06 (NuPIAO) for anemia and CS1003 (anti-PD-1 antibody) for advanced liver cancer[36]. Strategic Initiatives - The company aims to expand its product marketing to developed countries and has established operations in 25 countries as of 2023[7]. - The company is focusing on developing therapies for unmet medical needs, particularly in the biotechnology sector, which is supported by the Chinese government[6]. - The company has established strategic partnerships, including exclusive rights for the anti-PD-1 monoclonal antibody Nofazinlimab (CS1003) in mainland China, enhancing its product portfolio[15]. - The company plans to submit a New Drug Application (NDA) for NuPIAO (rESP, SSS06) in 2024 after completing Phase III clinical trials for treating anemia in chronic kidney disease[13]. - The company aims to optimize the structure of chronic disease medications and deepen its presence in grassroots markets as part of its future development strategy[16]. Market Expansion and Product Launches - The launch of the Minoxidil foam product, Man Di, has been approved, which is the first domestically produced minoxidil foam in China, showing comparable efficacy to ROGAINE®[22]. - The NDA for Li Mei Zhi has been approved for the treatment of pruritus in hemodialysis patients, marking it as the first selective opioid kappa receptor agonist approved for this indication in China[20]. - TRK-820, a drug for treating pruritus in hemodialysis patients, has received NDA approval in mainland China, addressing a significant unmet medical need[30]. - The company plans to continue expanding the clinical application and market penetration of its products, focusing on middle and lower-tier cities[26][27]. - The company aims to launch new drugs into commercialization each year starting in 2024, including long-acting erythropoietin and other self-developed or collaborative products[48]. Corporate Governance and Management - The company has a comprehensive leadership structure with experienced executives overseeing various subsidiaries and initiatives[85]. - The board consists of two executive directors, one non-executive director, and four independent non-executive directors, ensuring compliance with the minimum requirements set by the Hong Kong Stock Exchange[156]. - The company emphasizes the importance of compliance with anti-corruption laws to maintain its market position and access to public procurement[79]. - The independent non-executive directors collectively bring over 28 years of experience in the financial sector, with significant roles in major financial institutions such as Deutsche Bank and UBS[87]. - The company has established a remuneration committee to review the remuneration policies for all directors and senior management, considering the company's performance and market practices[113]. Employee and Operational Insights - The company employs 5,412 staff across its operational facilities in Shenyang, Shanghai, Hangzhou, Shenzhen, and Como, Italy[7]. - Employee costs for the reporting period amounted to approximately RMB 1,271.5 million, compared to RMB 1,254.4 million in the same period of 2022[75]. - The company emphasizes the importance of attracting, recruiting, and retaining quality employees, providing regular training to maintain employee quality, knowledge, and skills[144]. - The company has a large sales and distribution network in mainland China, consisting of approximately 2,724 sales and marketing personnel, 1,146 distributors, and 2,061 third-party promoters[47]. - The company recognizes the benefits of a diverse board and has adopted a policy to promote diversity among board members[156]. Challenges and Risks - The company faces intense competition in the biotechnology and pharmaceutical industry, which may hinder its ability to compete effectively with existing and future competitors[76]. - The government’s centralized procurement policies may lead to significant price reductions for products, potentially affecting revenue and profit levels negatively[77]. - The approval process for new drugs by the National Medical Products Administration can take several years and may involve high costs and uncertainties[78]. - The management team acknowledges the risks associated with corruption and improper promotion of products, which could damage the company's reputation and lead to regulatory investigations[79]. - The company may lose market share and face adverse impacts on revenue and profitability if it fails to win bids in provincial tendering processes for selling products to hospitals[77]. Corporate Social Responsibility - The group made donations of approximately RMB 21.6 million to various medical charity projects during the reporting period[141]. - The group has established detailed internal rules regarding environmental protection and complies with national emission standards[143]. - The company maintains long-term relationships with major distributors based on qualifications, reputation, market coverage, and sales experience[145]. - The company emphasizes long-term financial performance as a governance goal, focusing on innovation in core therapeutic areas[174]. - The company is committed to maintaining high standards of corporate governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange regulations[153].

Summary of Conference Call Company Overview - The company expressed gratitude towards investors and market participants for their attention to the business [1] Financial Performance - The company reported strong performance for the entire year, indicating positive revenue and marketing results [1]

2024年04月12日 公 司点评 公 买入 / 维持 司 三生制药(01530) 研 究 目标价: 昨收盘:6.08 医药 特比澳儿童 ITP 适应症获批，有望支撑收入端持续增长 事件  走势比较 2024年4月11日，公司宣布重组人血小板生成素注射液（特比澳） 新适应症已于 4 月 2 日获得批准，用于治疗儿童或青少年的持续性或慢 10% 性原发免疫性血小板减少症（ITP）。 太 0% 点评 平 (10%)11/4/32 12/6/32 13/8/32 01/11/32 02/1/42 13/3/42 主研发特 的比 重澳 组收 人入 血快 小速 板增 生长 成，适 素应 注增 射覆 液盖 ，此人 前群 已持 获续 批增 成加 人。 实特 体比 瘤澳 化是 疗由 后公 血司 小自 洋 (20%) 板减少症（CIT）和成人原发免疫性血小板减少症（ITP）适应症，近年来 证 (30%) 通过适应症覆盖人群的不断扩展，实现了销售收入的快速增长。2022 版 券 (40%) CSCO 肿瘤治疗所致血小板减少症（CTIT）诊疗指南将特比澳列为Ⅰ级推 股 荐，2023 年医保报销范围由实体瘤化疗后导致的严重血小板减 ...

Investment Rating - The report maintains a "Buy" rating for the company [1][4][17]. Core Views - The company achieved a revenue of 7.816 billion yuan in 2023, representing a growth of 13.8%. Gross profit reached 6.642 billion yuan, with a gross margin of 85.0%, an increase of 2.4 percentage points. However, the net profit attributable to shareholders decreased by 19.1% to 1.549 billion yuan, while the adjusted operating net profit increased by 17.7% to 1.952 billion yuan [1][5][12]. - The sales performance of key products, such as Tebiou and Mandi, was strong, with Tebiou sales reaching 4.205 billion yuan (+23.8%) and Mandi sales at 1.124 billion yuan (+25.8%). Mandi captured a market share of 72.6% in domestic medical institutions [1][12][16]. - The company is focusing on both self-research and business development in key therapeutic areas, with numerous pipelines in nephrology, hematology and oncology, autoimmune diseases, and hair and skin health [1][12][16]. Financial Performance Summary - Revenue for 2023 was 78.16 billion yuan, up 13.8% from the previous year. The gross profit was 66.42 billion yuan, reflecting a 17.1% increase, with a gross margin of 85.0% [1][5][12]. - The company’s R&D expenses were 7.95 billion yuan (+14.6%), with an R&D expense ratio of 10.2%. Sales expenses were 30.06 billion yuan (+16.5%), and management expenses were 4.81 billion yuan (+22.2%) [1][5][12]. - The forecast for net profit attributable to shareholders for 2024-2026 is 1.93 billion yuan, 2.15 billion yuan, and 2.42 billion yuan, respectively, with growth rates of 24.7%, 11.4%, and 12.6% [1][17][18]. Product Performance Summary - Tebiou's sales are expected to continue growing due to the increasing number of hospitals covered and the expansion of indications. The product holds a market share of approximately 65.0% in the treatment of thrombocytopenia [1][12][16]. - Mandi's sales in the hair loss sector reached 11.42 billion yuan, with a strong growth trend and a market share of 72.6% in domestic medical institutions [1][12][16]. - The company has a robust pipeline in various therapeutic areas, with several products in late-stage clinical trials, indicating a promising future for its product portfolio [1][12][16].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 5.50 HKD [1][10]. Core Insights - The company's main business shows steady growth, with a 2023 revenue of 78.16 billion HKD, reflecting a year-on-year increase of 13.8%. However, the net profit attributable to shareholders decreased by 19.1% to 15.49 billion HKD. The adjusted operating net profit increased by 17.7% to 19.52 billion HKD [2][4]. - The company plans to pay a final dividend of 0.25 HKD per share for the year ending December 31, 2023, corresponding to an expected dividend yield of 4.5% [2][4]. - The revenue growth is primarily driven by the sales increase of key products, while the decline in net profit is attributed to changes in the fair value of trading financial assets and foreign exchange losses [2][4]. - The company has a robust pipeline of innovative products, with several expected to be launched in 2024, including treatments for psoriasis and chronic kidney disease anemia [2][4]. Financial Summary - For 2023, the company reported a revenue of 78.16 billion HKD, with a growth rate of 14%. The projected revenues for 2024, 2025, and 2026 are 87.44 billion HKD, 95.35 billion HKD, and 102.69 billion HKD, respectively, with growth rates of 12%, 9%, and 8% [4][8]. - The net profit attributable to shareholders for 2023 was 15.49 billion HKD, with projections of 20.13 billion HKD, 22.44 billion HKD, and 25.08 billion HKD for the following years, reflecting growth rates of 30%, 12%, and 12% [4][8]. - The company's gross margin for 2023 was 85.0%, an increase of 2.4 percentage points year-on-year, indicating continuous improvement in profitability [2][4]. Product Performance - Key products showed stable performance, with revenue from Teva and Mandi increasing by 23.77% and 26.16%, respectively. However, revenue from the dual-brand Erythropoietin decreased by 16.71% [2][4]. - The company is advancing its research pipeline, with multiple products receiving approval for market launch in 2023, indicating a strong commitment to innovation [2][4].

Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Insights - The company achieved a revenue of 7.82 billion RMB in 2023, representing a year-on-year growth of 13.8%. The adjusted net profit was 1.95 billion RMB, up 17.7% from the previous year [1][2] - The core product, Tevizo, continues to show strong growth, holding a 65% market share in the platelet reduction treatment market in mainland China. Tevizo's sales revenue reached 4.205 billion RMB in 2023, a 23.8% increase year-on-year [1][2] - The company is a leader in the hair health sector with its Minoxidil product, which captured 72.6% of the market share in 2023, generating revenue of 1.12 billion RMB, a 25.8% increase from the previous year [1][2] - The company has a robust pipeline with 13 products in hematology/oncology and 11 in autoimmune diseases, indicating a diverse therapeutic focus [1][2] Financial Summary - Revenue projections for 2024, 2025, and 2026 are 8.801 billion RMB, 9.925 billion RMB, and 11.116 billion RMB, respectively, with growth rates of 12.6%, 12.8%, and 12.0% [2][4] - Net profit estimates for the same years are 1.891 billion RMB, 2.280 billion RMB, and 2.746 billion RMB, with corresponding growth rates of 22.1%, 20.6%, and 20.4% [2][4] - The company’s P/E ratios are projected to be 7, 5, and 4 for 2024, 2025, and 2026, respectively, indicating a favorable valuation trend [2][4]

Financial Performance - Revenue increased by RMB 950.2 million or 13.8% to RMB 7,815.9 million[2] - Gross profit rose by RMB 970.0 million or 17.1% to RMB 6,641.6 million, with a gross margin of 85.0%[2] - Net profit attributable to equity holders decreased by RMB 366.5 million or 19.1% to RMB 1,549.2 million, while adjusted operating profit increased by RMB 293.3 million or 17.7% to RMB 1,952.4 million[2] - EBITDA decreased by RMB 226.0 million or 8.6% to RMB 2,389.1 million, while adjusted operating EBITDA increased by RMB 464.6 million or 20.2% to RMB 2,768.4 million[2] - Total revenue for 2023 reached RMB 7,815,938 thousand, a 13.8% increase from RMB 6,865,735 thousand in 2022[18] - The company reported a net profit of RMB 1,586.3 million for the year, down from RMB 1,908.9 million in the previous year[5] - Basic earnings per share decreased to RMB 0.64 from RMB 0.78 year-on-year[4] - The group reported a net loss from the fair value changes of financial assets amounting to RMB 358,548 thousand in 2023, with no such loss reported in 2022[28] Assets and Liabilities - Total non-current assets increased to RMB 14,432.3 million from RMB 12,258.4 million year-on-year[7] - Current assets increased to RMB 9,750.5 million from RMB 7,906.6 million year-on-year[7] - Total liabilities increased to RMB 3,727.6 million from RMB 1,843.9 million year-on-year[7] - Non-current liabilities decreased from RMB 4,801,470 thousand in 2022 to RMB 3,383,818 thousand in 2023, a reduction of approximately 29.5%[8] - The net asset value increased from RMB 15,363,581 thousand in 2022 to RMB 16,513,600 thousand in 2023, representing a growth of about 7.5%[9] - Total equity attributable to owners of the parent rose from RMB 12,925,805 thousand in 2022 to RMB 14,033,771 thousand in 2023, an increase of approximately 8.6%[9] Market and Product Development - The company is focused on expanding its biopharmaceutical product development and marketing efforts in mainland China, aiming to enhance market presence[10] - The company has a strategic focus on research and development of new products and technologies to drive future growth and market expansion[10] - The company is committed to maintaining a strong financial position while exploring potential mergers and acquisitions to enhance its portfolio[10] - The company holds a 65.0% market share in the platelet reduction treatment market in mainland China as of 2023, according to IQVIA[52] - The company has a 42.2% market share in the rhEPO market in mainland China as of 2023[52] - The company’s product Mandi holds a dominant market share of 72.6% in the milo-dex market in mainland China as of 2023[52] - The company’s TNFα inhibitor product Yisai Pu has a market share of 22.7% in the TNFα market in mainland China as of 2023[52] Research and Development - The company is actively developing 29 pipeline products, with 25 of them being innovative drugs in mainland China, including 15 antibodies and 7 small molecule drugs[80] - The research and development team consists of over 600 experienced scientists focused on accelerating clinical development and seeking breakthrough therapies to meet unmet medical needs[79] - The company emphasizes the importance of its comprehensive R&D platform, which includes antibody discovery, molecular cloning, and clinical trial management[77] Financial Management and Governance - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency in financial reporting[11] - The company maintains control over its subsidiaries, which are consolidated into the financial statements from the date control is obtained until it ceases[12] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules to enhance shareholder rights and corporate value[122] - The roles of the Chairman and CEO are not separated, with the same individual holding both positions to ensure consistent leadership direction[123] Shareholder Information - The board proposed a final dividend of HKD 0.25 per share for the year ended December 31, 2023, compared to HKD 0.10 in 2022[2] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.10 per share, subject to shareholder approval[34] - The company will suspend the registration of shareholders from June 20, 2024, to June 25, 2024, for the annual general meeting[120] - The company will also suspend the registration of shareholders from July 24, 2024, to July 26, 2024, for the final dividend entitlement[121] Compliance and Audit - Ernst & Young confirmed that the financial data in the preliminary performance announcement aligns with the consolidated financial statements for the reporting period[128] - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the accounting principles and annual performance for the reporting period[127]

三生制药（1530.HK）深度研究 基本面稳健，生发产品蔓迪及后续管线持续发力 2024年03月08日 ➢ 主营业务稳健，特色产品持续发力。2023H1 实现营业收入 37.8 亿元，同 推荐 首次评级 比增长22.3%；2023H1实现归母净利润9.8亿元，同比增长1.4%。2023H1生 当前价格： 4.94港元 物制品板块收入同比增长 20%；毛发健康板块收入同比增长 36%，618 及双十 一大促电商销售再摘榜首；CDMO收入同比增长72%。 [Table_Author] ➢ 核心产品特比澳以销售额计，继续居于升血小板市场首位。特比澳是 2005 年上市的全球唯一商业化重组血小板生成素。2023 年上半年销售额同比增长 28.2%，主要系于2023年特比澳的医保谈判价格没有下降，此外特比澳产品在 2023 年争取到的政策环境有利产品放量，过去纳入《中国肿瘤化疗相关性血小 板减少症专家诊疗共识》，现在已纳入《中国肿瘤药物相关血小板减少诊疗专家 共识》的推荐用药，覆盖治疗人群得到进一步扩大。按比例计算，今年特比澳产 分析师 王班 品贡献接近40亿元报表收入，特比澳产品营收占总集团营收一半。 执业证书： S ...

Market Share and Product Performance - The company holds a 64.6% market share in the treatment of thrombocytopenia in mainland China for its product Tevazo, according to IQVIA data for the first half of 2023[5]. - The company has a 42.9% market share in the rhEPO market in mainland China, maintaining its leadership for the past 20 years[5]. - The company’s product Mandi has a dominant market share of 70.3% in the minoxidil solution market in mainland China as of the first half of 2023[5]. - The company’s TNFα inhibitor product Yisai has captured 23.7% of the TNFα market in mainland China during the same period[5]. - Tebentafusp holds a 33.1% market share by volume and 64.6% by sales in the treatment of thrombocytopenia in mainland China as of the first half of 2023[13]. - Yibiao has maintained a dominant position in the rhEPO market in mainland China since 2002, with a significant market share alongside Cybor[14]. - Yisaipu's market share in the TNFα inhibitor market in mainland China was 23.7% in the first half of 2023, reflecting a decline due to increased competition and price adjustments[15]. - Mandi holds a 70.3% market share in mainland China with a sales growth of 35.3% year-on-year in the first half of 2023[18]. Financial Performance - Revenue increased by RMB 689.3 million or 22.3% to RMB 3,783.8 million for the six months ended June 30, 2022[10]. - Gross profit rose by RMB 636.4 million or 24.8% to RMB 3,201.6 million, with gross margin increasing from 82.9% to 84.6%[10]. - Net profit attributable to equity holders increased by RMB 13.7 million or 1.4% to RMB 980.6 million, while normalized net profit rose by RMB 199.3 million or 20.1% to RMB 1,191.5 million[10]. - EBITDA grew by RMB 37.5 million or 2.9% to RMB 1,330.5 million, with normalized EBITDA increasing by RMB 228.4 million or 17.7% to RMB 1,518.1 million[10]. - The company's revenue for the reporting period was approximately RMB 3,783.8 million, an increase of about RMB 689.3 million or 22.3% compared to RMB 3,094.5 million for the same period last year[36]. - The gross profit increased to approximately RMB 3,201.6 million, up by about RMB 636.4 million or 24.8%, with a gross margin rising from approximately 82.9% to 84.6%[40]. - The company reported a total comprehensive income of RMB 933,638 thousand for the first half of 2023, compared to RMB 892,185 thousand in 2022[92]. Research and Development - As of June 30, 2023, the company is actively developing 30 pipeline products, with 25 being innovative drugs in mainland China[6]. - The company is focusing on expanding its CDMO business to increase revenue scale, which has been operational since December 2021[5]. - The company is advancing multiple innovative biopharmaceuticals and small molecule drugs, including SSS06 (NuPIAO) for anemia and 608 for autoimmune diseases[26]. - The R&D team consists of nearly 600 experienced scientists focused on accelerating clinical development and seeking breakthrough therapies[26]. - The company is actively promoting the long-term efficacy and safety of Yisaipu through post-marketing clinical studies[15]. Clinical Trials and Approvals - The first patient has been enrolled in the Phase III clinical study of Tebentafusp for chronic liver disease-related thrombocytopenia[12]. - The NDA for Remitch® has been approved for treating pruritus in hemodialysis patients, marking it as the first selective opioid κ receptor agonist approved for this indication in China[12]. - Yibiao has been approved for three indications: anemia due to chronic kidney disease (CKD), chemotherapy-induced anemia (CIA), and perioperative red blood cell mobilization[14]. - The pre-filled Yisaipu injection has been approved by the National Medical Products Administration in March 2023, expected to enhance patient convenience and drive further growth[15]. - The company has initiated a Phase III clinical trial for anti-IL-17A monoclonal antibody (608) for plaque psoriasis, with primary endpoint data expected in the second half of 2023[30]. Distribution and Market Presence - The company has established a national distribution network selling products to approximately 8,700 hospitals and medical institutions across mainland China[6]. - The sales and marketing network consists of approximately 2,704 sales and marketing personnel, 1,144 distributors, and 1,889 third-party promoters[33]. - The company’s products are sold in nearly 2,700 tertiary hospitals and over 6,000 secondary or lower-level hospitals across all provinces in mainland China[33]. Employee and Operational Metrics - The company employs 5,311 staff across its operational facilities in Shenyang, Shanghai, Hangzhou, Shenzhen, and Como, Italy[6]. - The group employed a total of 5,311 employees as of June 30, 2023, compared to 5,213 employees as of December 31, 2022, with employee costs amounting to approximately RMB 604.4 million during the reporting period[59]. Debt and Financing - As of June 30, 2023, the total interest-bearing bank borrowings of the group amounted to approximately RMB 3,725.7 million, an increase from RMB 2,315.0 million as of December 31, 2022, reflecting new bank borrowings of approximately RMB 1,640.9 million during the reporting period[54]. - The group’s leverage ratio increased from approximately 29.2% as of December 31, 2022, to approximately 30.9% as of June 30, 2023[54]. - The financing costs increased to approximately RMB 88.9 million, an increase of about RMB 52.4 million or approximately 143.6% compared to RMB 36.5 million for the six months ended June 30, 2022[47]. Shareholder Information and Stock Options - The company has authorized the issuance of up to 242,439,857 shares under the stock option plan, representing approximately 9.94% of the issued shares as of the report date[67]. - The stock option plan is designed to provide selected participants with an opportunity to acquire ownership interests in the company, encouraging efforts to enhance the company's value[67]. - The stock options granted to employees (excluding directors) as of June 30, 2023, included 15,656,000 options, with 50,000 options exercised during the period[70]. - The company adopted the 2019 Share Award Scheme on July 16, 2019, allowing a maximum of 10% of the total issued shares at the adoption date for awards, which amounted to 253,500,255 shares[72]. Regulatory and Compliance - The independent review report concluded that no matters were found that would lead to a belief that the interim financial information was not prepared in accordance with International Accounting Standard 34[88]. - The company has applied new and revised International Financial Reporting Standards from January 1, 2023, with no impact on the interim consolidated financial information[106].