Core Viewpoint - The approval of the domestic antiviral drug Marzula Shave (brand name: Yisuda) marks a significant shift in the influenza treatment market, potentially breaking the monopoly of imported antiviral drugs [1][2]. Group 1: Product Overview - Marzula Shave is China's first self-developed antiviral drug targeting the influenza virus RNA polymerase PA subunit, filling a gap in the domestic market and providing a strong upgrade to the long-imported drug-dominated influenza treatment market [2]. - The drug works by inhibiting the viral RNA polymerase PA subunit, directly blocking mRNA synthesis, allowing for rapid intervention in the early stages of viral replication [2]. - Compared to traditional neuraminidase inhibitors (like Oseltamivir) and existing PA inhibitors (like Roche's Baloxavir), Marzula Shave offers significant advantages, including a single oral dose for the entire treatment course, improved patient compliance, and a median virus clearance time reduced by 25 hours compared to placebo [2][10]. Group 2: Market Dynamics - The global influenza market sees approximately 5%-10% of adults and 20%-30% of children infected annually, leading to up to 500 million severe cases and 650,000 deaths, highlighting the critical need for effective treatments [3]. - The Chinese antiviral drug market is projected to grow to 26.9 billion yuan by 2028, with a dual-track competition emerging between neuraminidase inhibitors (like Oseltamivir) and PA inhibitors (like Baloxavir and Marzula Shave) [6]. - Oseltamivir, which has dominated the market, accounted for 92% of global sales as of mid-2023, with significant market share held by domestic manufacturers [7]. Group 3: Competitive Landscape - Marzula Shave's entry into the market is expected to shift the competitive landscape from a dual monopoly of Oseltamivir and Baloxavir to a three-way competition involving domestic innovative drugs, imported original drugs, and generic drugs [11]. - The pricing strategy for Marzula Shave is anticipated to be 30%-40% lower than Baloxavir, which could enhance its market penetration, especially given its production capacity of over 4.5 billion tablets annually [10][12]. - The drug's unique positioning focuses on treating healthy individuals aged 12 and above, who represent over 70% of the annual 100 million influenza infections in China [9]. Group 4: Future Prospects - The company plans to expand clinical research for Marzula Shave in pediatric patients and high-risk groups, with potential market capacity expansion of 2-3 times if successful [12]. - The drug is expected to enjoy a six-year data protection period as a new drug, with potential for inclusion in national medical insurance negotiations, providing a competitive edge in the market [10][12].

Financial Performance - The company's revenue for the year ending December 31, 2024, was RMB 3,723.78 million, a decrease of 40.84% compared to the previous year[3]. - EBITDA for the same period was RMB 1,070.42 million, down 61.01% year-over-year[3]. - Profit attributable to equity holders was RMB 482.71 million, a decline of 75.78% from RMB 1,992.62 million in the previous year[3]. - The basic and diluted earnings per share for the year ending December 31, 2024, were RMB 0.55[3]. - Total revenue for 2024 reached RMB 3,723,783,000, compared to RMB 6,294,585,000 in 2023, indicating a decrease of approximately 40%[8]. - Gross profit for 2024 was RMB 2,794,058,000, down from RMB 4,985,764,000 in 2023, reflecting a decline of about 44%[8]. - Operating profit for 2024 was RMB 674,469,000, significantly lower than RMB 2,354,198,000 in 2023, representing a decrease of around 71%[8]. - Net profit attributable to the parent company for 2024 was RMB 482,712,000, compared to RMB 1,992,624,000 in 2023, a drop of approximately 76%[8]. - Basic earnings per share for 2024 were RMB 0.55, down from RMB 2.26 in 2023, indicating a decline of about 76%[8]. Revenue Growth and Product Development - The company launched five self-developed insulin products, generating revenue of RMB 136.53 million, a significant increase of 101.14% year-over-year[4]. - The new drug line represented by Emtricitabine achieved revenue of RMB 89.49 million, marking a substantial growth of 120.06% compared to the previous year[5]. - The company has made significant breakthroughs in new drug development, solidifying its competitive advantage in the hepatitis C treatment market[5]. - The company is focusing on market expansion and brand building through various sales strategies, including increased advertising investment[4]. - The company has ongoing research and development projects that have been capitalized, contributing to the overall development expenses[35]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 7,395,812,000, compared to RMB 6,691,273,000 in 2023, showing an increase of approximately 10%[9]. - Current assets totaled RMB 5,033,403,000 in 2024, up from RMB 6,053,056,000 in 2023, reflecting a decrease of about 17%[9]. - Cash and cash equivalents were RMB 1,403,777,000 in 2024, compared to RMB 1,674,413,000 in 2023, indicating a decline of approximately 16%[9]. - The total liabilities increased from 4,332,220 thousand RMB in 2023 to 2,840,531 thousand RMB in 2024, which is a decrease of approximately 34.4%[10]. - The total assets decreased from 9,588,684 thousand RMB in 2023 to 8,412,109 thousand RMB in 2024, representing a decline of approximately 12.2%[10]. Research and Development - The company reported a significant increase in research and development expenses, totaling RMB 493,443,000 in 2024, compared to RMB 192,287,000 in 2023, an increase of about 157%[8]. - Research and development expenses totaled RMB 687.23 million, accounting for 18.46% of revenue, an increase of 103.77% year-over-year[74]. Market Strategy and Competitive Position - The company is focusing on precision medicine and personalized treatment as core innovation directions in response to evolving healthcare needs[43]. - The group has strengthened its market position with its core product, Kewai (Oseltamivir Phosphate), maintaining a leading position in the domestic antiviral market and enhancing brand recognition through targeted marketing strategies[48]. - The group is actively expanding its sales channels to grassroots medical institutions, aiming to enhance Kewai's market share and brand influence among pediatricians and parents[49]. - The company is leveraging national centralized procurement policies to provide high-quality diabetes treatment medications at competitive prices[53]. Financial Management and Governance - The company has not declared or paid dividends for the years ending December 31, 2023, and December 31, 2024[41]. - The company confirms compliance with corporate governance standards as per the listing rules throughout the reporting period[100]. - The audit committee has reviewed the company's annual performance announcement and financial statements prepared in accordance with international financial reporting standards[104]. Mergers and Acquisitions - The company is in the process of merging with Guangdong Dongyang Pharmaceutical, which will result in the company being delisted from the stock exchange and its assets being absorbed by Guangdong Dongyang Pharmaceutical[106]. - The merger agreement was established on May 10, 2024, pending the fulfillment of certain conditions[106]. - The company will issue H shares to Guangdong Dongyang Pharmaceutical as part of the merger process, which will be listed on the main board of the stock exchange[107]. Customer Concentration and Revenue Sources - The company had four customers contributing over 10% of total revenue, generating approximately RMB 1,894,720,000 in 2024, down from RMB 3,533,998,000 in 2023, indicating a decrease of about 46.3%[19]. - The company has a diversified customer base, with significant revenue contributions from a few key clients, highlighting the importance of customer concentration risk[19].

Financial Performance - Revenue for the six months ended 30 June 2024 was RMB 2,454,762 thousand, a decrease of 23.5% compared to RMB 3,209,002 thousand in the same period in 2023[4] - Gross profit for the six months ended 30 June 2024 was RMB 1,949,232 thousand, with a gross profit margin of 79.4%, slightly down from 79.9% in the same period in 2023[4] - Net profit attributable to shareholders for the six months ended 30 June 2024 was RMB 684,731 thousand, a decrease of 33.5% compared to RMB 1,029,495 thousand in the same period in 2023[4] - Total assets as of 30 June 2024 were RMB 12,494,196 thousand, a decrease of 7.1% compared to RMB 13,444,196 thousand as of 30 June 2023[4] - Revenue for the six months ended 30 June 2024 decreased to RMB 2,454.76 million, compared to RMB 3,209.00 million in the same period in 2023[162] - Gross profit for the period was RMB 1,949.23 million, down from RMB 2,563.94 million in 2023[162] - Profit for the period was RMB 684.73 million, a decrease from RMB 1,023.92 million in 2023[162] - Basic and diluted earnings per share were RMB 0.78, down from RMB 1.17 in 2023[162] - Total non-current assets increased to RMB 7,025.35 million, up from RMB 6,691.27 million at the end of 2023[165] - Total current assets decreased to RMB 5,468.84 million, compared to RMB 6,053.06 million at the end of 2023[165] - Total current liabilities decreased to RMB 2,538.46 million, down from RMB 4,332.22 million at the end of 2023[167] - Net assets increased to RMB 8,665.38 million, up from RMB 7,935.51 million at the end of 2023[167] - Total equity attributable to equity shareholders of the Company increased to RMB 8,665.38 million, compared to RMB 7,935.51 million at the end of 2023[167] - Total equity increased to RMB 8,665,380,000 as of 30 June 2024, up from RMB 7,935,513,000 at the beginning of the year[172] - Retained earnings grew to RMB 4,631,875,000 by 30 June 2024, compared to RMB 3,947,144,000 at the start of 2024[172] - Profit and total comprehensive income for the six months ended 30 June 2024 was RMB 684,731,000[172] - Cash generated from operations for the six months ended 30 June 2024 was RMB 265,040,000, significantly lower than the RMB 1,346,755,000 generated in the same period in 2023[175] - Net cash generated from operating activities for the six months ended 30 June 2024 was RMB 24,405,000, down from RMB 1,244,799,000 in the same period in 2023[175] - Proceeds from disposal of financial assets in the six months ended 30 June 2024 amounted to RMB 1,940,000,000[175] - Payments for purchase of property, plant, and equipment in the six months ended 30 June 2024 totaled RMB 401,892,000[175] - Development costs incurred in the six months ended 30 June 2024 were RMB 90,567,000[175] - Net cash generated from investing activities for the six months ended 30 June 2024 was RMB 150,554,000[175] - Equity-settled share-based payments in the six months ended 30 June 2024 amounted to RMB 45,136,000[172] - Bank loan proceeds decreased to RMB 913.9 million in 2024 from RMB 1,533.5 million in 2023, a decline of 40.4%[177] - Repayments of bank loans increased significantly to RMB 1,254.3 million in 2024 compared to RMB 22.2 million in 2023[177] - Net cash used in financing activities was RMB 326.3 million in 2024, compared to net cash generated of RMB 395.5 million in 2023[177] - Cash and cash equivalents decreased by RMB 151.3 million in 2024, contrasting with an increase of RMB 2,858.1 million in 2023[177] - The company's cash and cash equivalents stood at RMB 1,523.1 million as of 30 June 2024, down from RMB 3,781.6 million a year earlier[177] - Total revenue for the twelve months ended 30 June 2024 was RMB 5,540,346,000, a slight decrease from RMB 5,660,646,000 in the same period in 2023[190] - Gross profit for the twelve months ended 30 June 2024 was RMB 4,371,059,000, down from RMB 4,449,354,000 in 2023[190] - Interest income for the six months ended 30 June 2024 was RMB 46,430,000[193] - Government grants for the six months ended 30 June 2024 amounted to RMB 12,173,000[193] - Interest and other borrowing costs for the six months ended 30 June 2024 were RMB 62,016,000[196] - Amortization cost of intangible assets for the six months ended 30 June 2024 was RMB 94,307,000[197] - Current tax provision for PRC corporate income tax for the six months ended 30 June 2024 was RMB 89.287 million, compared to RMB 217.452 million in the same period in 2023[199] - Under-provision for PRC corporate income tax in respect of prior years was RMB 6.417 million for the six months ended 30 June 2024[199] - Total current tax provision for the six months ended 30 June 2024 was RMB 95.704 million, compared to RMB 217.386 million in the same period in 2023[199] - Deferred tax related to origination and reversal of temporary differences was RMB 33.096 million for the six months ended 30 June 2024, compared to RMB 20.543 million in the same period in 2023[199] - Total income tax expense for the six months ended 30 June 2024 was RMB 128.8 million, compared to RMB 237.929 million in the same period in 2023[199] - The PRC corporate income tax rate is 25% for the six months ended 30 June 2024 and 2023[199] - The company was recognized as a "High and New Technology Enterprise" (HNTE) and enjoyed a preferential CIT rate of 15% for the six months ended 30 June 2024 and 2023[199] - A subsidiary, YiChang HEC Pharmaceutical Manufacturing Co., Ltd., was also recognized as HNTE and enjoyed a preferential CIT rate of 15% for the six months ended 30 June 2024 and 2023[199] Product and Market Performance - The company has 1,897 professional sales staff across its nationwide product distribution network in China as of 30 June 2024[5] - Kewei (Oseltamivir Phosphate), one of the company's core products, is the first-line drug for clinical application of anti-influenza virus in China and its granules form is the exclusive patented product of the company[5] - The company entered into a strategic cooperation framework agreement with Jointown Pharmaceutical Group Co., Ltd., authorizing it as the exclusive general distribution agent for Kewei products sold through the OTC channel in China[7] - The company plans to further expand its product lines and markets, enhance international production standards, and continue to expand the coverage of promotion and sales to facilitate further growth of business and profitability[8] - The company has established strategic partnerships with several renowned pharmaceutical companies, including Guoyao Group Yizheng Co., Ltd. (SZSE: 000028) and Jiuzhoutong Medical Group Co., Ltd., granting exclusive distribution rights for certain products in the OTC channel in mainland China[9] - The company signed an intent agreement with the Wuhan Institute of Virology, the National Emergency Prevention and Control Drug Engineering Technology Research Center, and Guangdong Dongyangguang Pharmaceutical Co., Ltd. to establish a national emergency prevention and control drug industrialization platform and national antiviral drug center[9] - Kewei (Oseltamivir Phosphate) maintains its leading position in the domestic anti-influenza field, with increased brand recognition and market growth[21][22] - The Group has enhanced Kewei's production capacity to better prepare for future influenza outbreaks[21][22] - Kewei's brand ranking improved to 19th among China's top 50 health brands in 2024, up 17 places from 2023[23][24] - The Group upgraded the positioning of Kewei from "the first choice for the prevention and treatment of influenza" to "the cornerstone drug for the prevention and treatment of influenza"[23][24] - Technological upgrades to Kewei granules have improved children's medication compliance and brand recognition[23][24] - The hospital sales system strengthened daily management and capacity training, with the product coverage in retail pharmacies close to 70%[26] - The chronic disease business pipeline represented by insulin achieved revenue of RMB180.0 million in the first half of 2024, a significant increase of 140.7% compared to the same period last year[28] - The oral hypoglycemic product Linagliptin increased by 394.0% over the same period last year[31] - The Group's self-developed insulin products, including Recombinant Human Insulin Injection and Insulin Glargine Injection, have all been approved for launching and awarded bids for centralized bulk procurement[28] - The application for new drug launch of Class I innovative drug SGLT-2 Inhibitor Rongliflozin for the treatment of type 2 diabetes has been submitted[31] - The Group successfully held a number of large-scale academic conferences with national influence in the first half of 2024[31] - Emitasvir Phosphate revenue in the first half of 2024 was approximately RMB40.8 million, representing a 188.5% increase compared to the same period last year[34] - Cumulative sales of Emitasvir Phosphate have exceeded RMB100 million, with the drug ranking among the top three in the industry in the first half of 2024[34] - The total number of confirmed chronic Hepatitis C cases in China in 2022 was 2.5 million, expected to reach 2.8 million by 2026 and 3.1 million by 2030[36] - The company's centralized procurement and new retail business generated revenue of approximately RMB346.1 million in the first half of 2024, a 60.8% increase year-over-year[39] - Esomeprazole magnesium Enteric-Coated Capsules revenue increased by 79.2% in the first half of 2024 compared to the same period last year[39] - Telmisartan revenue increased by 53.7% in the first half of 2024 compared to the same period last year[39] - The company has 12 different types of chemical generic products selected in the national centralized procurement[39] - The company's new retail system is becoming more mature, leveraging in-hospital prescriptions to drive out-of-hospital retail business growth[39] - The company aims to expand its new retail product line and increase pharmaceutical retail market channels[39] - The company has a competitive advantage in the primary care market for Hepatitis C treatment, with a strong R&D foundation in anti-infection[36] - The Group achieved significant R&D progress in chronic disease and new drug business pipelines during the first half of 2024, with five insulin products approved for launch, including Recombinant Human Insulin Injection and Insulin Glargine Injection[42] - The Group acquired diabetes treatment drugs from Sunshine Lake Pharma, including the Class I innovative drug SGLT-2 Inhibitor Rongliflozin, which is expected to enhance the chronic disease business pipeline and improve revenue structure[44] - R&D investment for Rongliflozin amounted to RMB 92.382 million, accounting for 3.8% of operating revenue and 18.3% of operating costs[46] - The new drug application for Emitasvir Phosphate, a treatment for hepatitis C genotype 1, was approved, and the application for Yiqibuvir Tablets (0.3g) was accepted by the NMPA[48] - Revenue from the chronic disease business pipeline reached RMB 180.0 million, a 140.7% increase compared to the same period last year[50] - Revenue from Emitasvir Phosphate capsules was RMB 40.8 million, representing a 188.5% increase year-over-year[50] - Centralized procurement and new retail business pipelines generated RMB 346.1 million in revenue, a 60.8% increase compared to the same period last year[50] - The Group's revenue for the six months ended 30 June 2024 was RMB2,454.8 million, with a total profit and comprehensive income attributable to equity holders of RMB684.7 million[60] - R&D expenses increased by approximately RMB184.1 million during the same period, and excluding this increase, the total profit and comprehensive income would have been RMB868.8 million[60] - The chronic disease business pipeline, represented by insulin, achieved a revenue of RMB180.0 million in the first half of 2024, a 140.7% increase over the same period last year[62] - The revenue of the product Linagliptin increased by 394.0% compared to the same period last year[62] - The Group's Hubei Yidu production base is the world's largest production base for Oseltamivir Phosphate[56] - The Group has a total of 1,897 staff in its sales teams as of 30 June 2024[54] - The Group has started to expand its online pharmacy channel and cooperated with several well-known online channel operators[54] - The Group's insulin series products have 5 products approved for launching and won the bid for centralized bulk procurement[62] - The application for approval for the Class I innovative drug SGLT-2 Inhibitor Rongliflozin has been successfully submitted[62] - Revenue from the chronic disease business line, represented by insulin, reached RMB 180.0 million in the first half of 2024, a significant increase of 140.7% year-over-year[63] - Revenue from the oral small molecule hypoglycemic drug Liglutide increased by 394.0% year-over-year[63] - Revenue from the new drug business pipeline, represented by Emitasvir Phosphate, reached RMB 40.8 million in the first half of 2024, a significant increase of 188.5% year-over-year[66] - Revenue from centralized procurement and new retail business pipelines reached RMB 346.1 million in the first half of 2024, an increase of 60.8% year-over-year[66] - Revenue from Esomeprazole magnesium Enteric-coated Capsules increased by 79.2% year-over-year[66] - Revenue from Telmisartan increased by 53.7% year-over-year[66] - Revenue from anti-infective pediatrics business pipeline decreased to RMB 1,864,527,000 in 2024 from RMB 2,880,538,000 in 2023, a decline of 35.3%[187] - Revenue from chronic disease business pipeline increased significantly to RMB 179,944,000 in 2024 from RMB 74,745,000 in 2023, a growth of 140.7%[187] - Revenue from new drugs business pipeline rose to RMB 40,848,000 in 2024 from RMB 14,158,000 in 2023, an increase of 188.5%[187] - Revenue from centralized procurement and new retail line grew to RMB 346,078,000 in 2024 from RMB 215,178,000 in 2023, an increase of 60.8%[187] R&D and Innovation - The company plans to further expand its product lines and markets, enhance international production standards, and continue to expand the coverage of promotion and sales to facilitate further growth of business and profitability[8] - The company signed an intent agreement with the Wuhan Institute of Virology, the National Emergency Prevention and Control Drug Engineering Technology Research Center, and Guangdong Dongyangguang Pharmaceutical Co., Ltd. to establish a national emergency prevention and control drug industrialization platform and national antiviral drug center[9] - The Group achieved significant R&D progress in chronic disease and new drug business pipelines during the first half of 2024, with five insulin products approved for launch, including Recombinant Human Insulin Injection and Insulin Glargine Injection[42] - The Group acquired diabetes treatment drugs from Sunshine Lake Pharma, including the Class I innovative drug SGLT-2 Inhibitor Rongliflozin, which is expected to enhance the chronic disease business pipeline and improve revenue structure[44] - R&D investment for Rongliflozin amounted to RMB 92.382 million, accounting for 3.8% of operating revenue and 18.3% of operating costs[46] - The new drug application for Emitasvir Phosphate, a treatment for hepatitis C genotype 1, was approved, and the application for Yiqibuvir Tablets (0.3g) was accepted by the NMPA[48] - The application for approval for the Class I innovative drug SGLT-2 Inhibitor Rongliflozin has been successfully submitted[62] - Research and development costs increased significantly to RMB 265.93 million, up from RMB 98.26 million in 2023[162] - R&D costs surged by 170.6% to RMB 265.93 million, with total R&D investment reaching RMB 358.4 million, representing 14.6% of revenue[77][80] Industry and Policy Trends - The pharmaceutical industry in China demonstrated strong growth momentum in the first half of 2024, driven by the steady recovery of the global economy, advancements in scientific and technological innovation, and increased government focus on public health[10][12] - The National Medical Reimbursement Drug List in China was dynamically adjusted in 2024, including more innovative drugs and drugs for rare diseases, while drug prices were significantly reduced through centralized procurement, benefiting millions of patients[11][13] - The China National

Revenue and Profit Performance - Revenue for the first half of 2024 was RMB 2,454.8 million, a decrease of 23.5% compared to the same period in 2023[3] - Gross profit for the first half of 2024 was RMB 1,949.2 million, a decrease of 24.0% compared to the same period in 2023[3] - EBITDA for the first half of 2024 was RMB 1,064.2 million, a decrease of 33.1% compared to the same period in 2023[3] - Profit attributable to equity holders of the company for the first half of 2024 was RMB 684.7 million, a decrease of 33.5% compared to the same period in 2023[3] - Revenue for the six months ended June 30, 2024, was RMB 3,209,002 thousand, compared to RMB 2,454,762 thousand in the same period last year, representing a 30.7% increase[10] - Gross profit for the six months ended June 30, 2024, was RMB 2,563,937 thousand, up 31.5% from RMB 1,949,232 thousand in the same period last year[10] - Operating profit for the six months ended June 30, 2024, was RMB 867,385 thousand, a decrease of 38.0% compared to RMB 1,398,121 thousand in the same period last year[10] - Profit before tax for the six months ended June 30, 2024, was RMB 813,531 thousand, down 35.5% from RMB 1,261,853 thousand in the same period last year[10] - Net profit attributable to equity shareholders for the six months ended June 30, 2024, was RMB 684,731 thousand, a 33.5% decrease from RMB 1,029,495 thousand in the same period last year[10] - Total revenue for the 12 months ending June 30, 2024, was RMB 5,540,346 thousand, slightly down from RMB 5,660,646 thousand in the same period last year[26] - Gross profit for the 12 months ending June 30, 2024, was RMB 4,371,059 thousand, compared to RMB 4,449,354 thousand in the previous year[26] - Total revenue for the first half of 2024 reached RMB 2,454.8 million, with net profit attributable to shareholders of RMB 684.7 million[118] - The group's gross profit decreased by 24.0% to RMB 1,949.2 million in the first half of 2024, mainly due to a decrease in sales volume of the core product Kewei[123] - The group's profit before tax decreased by 35.5% to RMB 813.5 million in the first half of 2024, primarily due to a decrease in sales volume of the core product Kewei[131] - The group's net profit decreased by 33.1% to RMB 684.7 million in the first half of 2024, primarily due to a decrease in sales volume of the core product Kewei[133] - Net profit attributable to equity holders decreased by 33.5% to RMB 684.7 million in the first half of 2024, compared to RMB 1,029.5 million in the same period of 2023, primarily due to reduced sales of the core product, Kewei[135] R&D and Innovation - R&D expenses increased by RMB 184.1 million in the first half of 2024, and excluding this increase, profit attributable to equity holders would have been RMB 868.8 million[4] - R&D costs for the six months ended June 30, 2024, were RMB 265,925 thousand, a significant increase of 170.6% compared to RMB 98,264 thousand in the same period last year[10] - The group's R&D investment totaled RMB 358.4 million in the first half of 2024, accounting for 14.6% of revenue, a year-on-year increase of 196.9%[129] - The company's self-developed SGLT-2 inhibitor, Rongliflozin, has submitted a new drug application for market approval[98] - The R&D investment for Rongliflozin was RMB 92,382 thousand, accounting for 3.8% of revenue and 18.3% of cost[109] - The company has a comprehensive layout in the hepatitis C product line, with Emitasvir Phosphate already approved and Yingqiangbuwei Tablets (0.3g) under regulatory review[111] - New drug Yingqiangbuwei tablets (0.3g) for chronic hepatitis C treatment has been accepted for market application[120] Product Performance - Sales of the insulin product line reached RMB 180.0 million in the first half of 2024, a significant increase of 140.7% compared to the same period in 2023[4] - Revenue from the new drug line represented by Emtricitabine reached RMB 40.8 million in the first half of 2024, a significant increase of 188.5% compared to the same period in 2023[6] - Revenue from the centralized procurement and new retail business line reached RMB 346.1 million in the first half of 2024, an increase of 60.8% compared to the same period in 2023[7] - The company has 12 chemical generic drug products that have won bids in the national centralized procurement program, with products like Esomeprazole Magnesium Enteric-coated Capsules showing a 79.2% increase in revenue compared to the same period in 2023[7] - Revenue from anti-infective products reached RMB 1,864,527 thousand, accounting for a significant portion of total sales[24] - Revenue from chronic disease products was RMB 179,944 thousand, showing a notable increase compared to the previous period[24] - Revenue from new drug products stood at RMB 40,848 thousand, reflecting growth in this segment[24] - The insulin product line achieved a revenue of RMB 180.0 million in the first half of 2024, a year-on-year increase of 140.7%[97] - The oral hypoglycemic product Linagliptin saw a year-on-year growth of 394.0%[98] - The new drug line represented by Emitasvir Phosphate Capsules achieved a revenue of approximately RMB 40.8 million in the first half of 2024, a year-on-year increase of 188.5%[101] - Emitasvir Phosphate Capsules has accumulated sales exceeding RMB 100 million and ranked among the top three in the industry in the first half of 2024[101] - The centralized procurement and new retail business line achieved a revenue of approximately RMB 346.1 million in the first half of 2024, a year-on-year increase of 60.8%[104] - Esomeprazole Magnesium Enteric-coated Capsules grew by 79.2% year-on-year, and Telmisartan grew by 53.7% year-on-year in the first half of 2024[104] - The company has developed five insulin products, including recombinant human insulin injection and glargine insulin injection, which have been approved for market[107] - Core product Ke Wei (oseltamivir phosphate) generated revenue of RMB 1,864.5 million, maintaining stable performance[113] - Chronic disease business line achieved revenue of RMB 180.0 million, a year-on-year increase of 140.7%[113] - New drug line revenue reached RMB 40.8 million, a year-on-year growth of 188.5%[113] - Centralized procurement and new retail business line revenue was RMB 346.1 million, up 60.8% year-on-year[113] - The company's insulin series products have 5 products selected in centralized procurement, with oral small molecule diabetes drug Liglutide showing 394.0% year-on-year growth[118] - The group's procurement and new retail business lines achieved a revenue of RMB 346.1 million in the first half of 2024, a year-on-year increase of 60.8%[121] Financial Position and Assets - Total non-current assets increased to RMB 7,025,353 thousand as of June 30, 2024, compared to RMB 6,691,273 thousand as of December 31, 2023[12] - Total current assets decreased to RMB 5,468,843 thousand as of June 30, 2024, from RMB 6,053,056 thousand as of December 31, 2023[12] - Total current liabilities decreased to RMB 2,538,462 thousand as of June 30, 2024, from RMB 4,332,220 thousand as of December 31, 2023[12] - Net current assets increased to RMB 2,930,381 thousand as of June 30, 2024, compared to RMB 1,720,836 thousand as of December 31, 2023[14] - Total assets minus current liabilities increased to RMB 9,955,734 thousand as of June 30, 2024, from RMB 8,412,109 thousand as of December 31, 2023[14] - Total non-current liabilities increased to RMB 1,290,354 thousand as of June 30, 2024, from RMB 476,596 thousand as of December 31, 2023[14] - Net assets increased to RMB 8,665,380 thousand as of June 30, 2024, compared to RMB 7,935,513 thousand as of December 31, 2023[14] - Share capital remained unchanged at RMB 879,968 thousand as of June 30, 2024, and December 31, 2023[14] - Reserves increased to RMB 7,785,412 thousand as of June 30, 2024, from RMB 7,055,545 thousand as of December 31, 2023[14] - Total equity attributable to equity shareholders of the company increased to RMB 8,665,380 thousand as of June 30, 2024, from RMB 7,935,513 thousand as of December 31, 2023[14] - Total equity as of June 30, 2024, reached RMB 8,665,380 thousand, reflecting an increase from RMB 7,935,513 thousand at the beginning of the year[16] - Net profit and comprehensive income for the six months ended June 30, 2024, amounted to RMB 684,731 thousand[16] - Equity-settled share-based payments during the period totaled RMB 45,136 thousand[16] - The company's retained earnings as of June 30, 2024, stood at RMB 4,631,875 thousand, up from RMB 3,947,144 thousand at the start of the year[16] - Non-controlling interests were fully eliminated by June 30, 2024, compared to RMB 179,546 thousand at the end of June 2023[16] - The company's capital reserves increased to RMB 2,713,550 thousand as of June 30, 2024, from RMB 2,668,414 thousand at the beginning of the year[16] - Total fixed assets increased to RMB 4,753.881 million as of June 30, 2024, up from RMB 4,483.493 million at the end of 2023[37] - Additions to property, plant, and equipment in 2024 amounted to RMB 263.605 million, with an additional RMB 15.652 million in leasehold improvements[37] - The net book value of property, plant, and equipment stood at RMB 3,558.807 million as of June 30, 2024[37] - Accumulated depreciation and amortization reached RMB 781.800 million for property, plant, and equipment by mid-2024[37] - The company has RMB 434.898 million worth of properties pending ownership certificates as of June 30, 2024[38] - Assets pledged as collateral for bank loans include: RMB 286.300 million in leasehold land rights, RMB 740.038 million in construction in progress, and RMB 702.276 million in factory buildings[38] - The book value of sale-and-leaseback transactions involving factory buildings and machinery reached RMB 440.338 million as of June 30, 2024[38] - Intangible assets increased to RMB 4,028,011 thousand as of June 30, 2024, up from RMB 3,935,464 thousand at the end of 2023, driven by internal development and prepayments[39] - Impairment losses for intangible assets totaled RMB 552,194 thousand as of June 30, 2024, with a notable impairment of RMB 2,386 thousand for one generic drug[39][41] - The company paid RMB 1,641,250 thousand to Guangdong Dongyangguang Pharmaceutical as of June 30, 2024, consistent with the previous year[41] - Fair value losses on listed equity securities amounted to RMB 6,377 thousand for the six months ending June 30, 2024, compared to RMB 2,855 thousand in the same period in 2023[42] - Foreign currency option contracts generated a net fair value gain of RMB 14,472 thousand for the six months ending June 30, 2024, down from RMB 19,118 thousand in the same period in 2023[44] - The company acquired 33 drug-related technologies and intellectual properties from Guangdong Dongyangguang Pharmaceutical for a total consideration of RMB 2,131,635 thousand, including milestone and contingent payments[43] - Intangible assets prepayments increased to 6,135 thousand RMB in 2024 from 6,135 thousand RMB in 2023, while property, plant, and equipment prepayments surged to 317,078 thousand RMB from 109,244 thousand RMB[45] - Inventory levels rose to 581,153 thousand RMB in 2024 from 409,050 thousand RMB in 2023, with raw materials accounting for 331,475 thousand RMB and finished goods at 143,505 thousand RMB[45] - Trade and other receivables totaled 1,850,470 thousand RMB in 2024, with 1,106,394 thousand RMB due within 3 months and 736,363 thousand RMB due within 1 year[47] - Accounts receivable and notes receivable decreased to 2,072,611 thousand RMB in 2023 from 1,850,470 thousand RMB in 2024, with 1,803,219 thousand RMB due within 3 months[47] - Trade and other payables increased to 458,126 thousand RMB in 2024 from 200,088 thousand RMB in 2023, with 107,024 thousand RMB due within 1 month and 266,857 thousand RMB due within 1-3 months[50] - Non-current bank loans rose significantly to 990,780 thousand RMB in 2024 from 253,998 thousand RMB in 2023[50] - Current bank loans decreased to 1,077,346 thousand RMB in 2024 from 2,165,438 thousand RMB in 2023[50] - Total bank loans and other borrowings stood at 2,323,768 thousand RMB in 2024, slightly down from 2,607,804 thousand RMB in 2023[50] - Accounts payable and notes payable increased to 458,126 thousand RMB in 2024 from 200,088 thousand RMB in 2023[50] - Prepaid taxes and deductible VAT increased to 96,995 thousand RMB in 2024 from 20,565 thousand RMB in 2023[47] - Total bank loans amounted to RMB 2,068,126,000 as of June 30, 2024, compared to RMB 2,419,436,000 as of December 31, 2023[52] - Loans due within 1 year increased to RMB 1,077,346,000 as of June 30, 2024, from RMB 2,165,438,000 as of December 31, 2023[52] - Secured bank loans decreased to RMB 1,690,242,000 as of June 30, 2024, from RMB 2,269,633,000 as of December 31, 2023[52] - Unsecured bank loans increased to RMB 377,884,000 as of June 30, 2024, from RMB 149,803,000 as of December 31, 2023[52] - Additional guarantees for bank loans increased to RMB 1,079,822,000 as of June 30, 2024, from RMB 564,248,000 as of December 31, 2023[54] - Discounted bills with recourse increased to RMB 47,225,000 as of June 30, 2024, from RMB 19,512,000 as of December 31, 2023[54] - Total obligations from sale and leaseback transactions increased to RMB 268,232,000 as of June 30, 2024, from RMB 197,790,000 as of December 31, 2023[55] - Restricted shares granted under the 2023 Restricted Share Plan amounted to 7,926,777 shares with a total fair value of RMB 457,496,000[57][58] - Total compensation expenses for restricted shares granted to employees amounted to RMB 45,136,000 for the six months ended June 30, 2024, compared to zero in the same period last year[59] - The weighted average remaining contractual period for unvested restricted shares was 48 months as of June 30, 2024, down from 54 months as of December 31, 2023[59] - The company issued and fully paid ordinary shares remained unchanged at 879,967,700 shares as of June 30, 2024 and December 31, 2023[62] - Selected employees were granted 7,926,777 restricted shares under the 2023 Restricted Share Plan on July 18, 2023[63] - The fair value of listed equity securities classified as Level 1 was RMB 13,210,000 as of June 30, 2024, down from RMB 19,587,000 as of December 31, 2023[68] - The fair value of foreign currency option contracts classified as Level 2 was RMB 13,333,000 as of June 30, 2024, down from RMB 18,686,000 as of December 31, 2023[68] - The company had capital commitments of RMB 1,634,214,000 as of June 30, 2024,

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 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. 宜 昌 東 陽 光 長 江 藥 業 股 份 有 限 公 司 （在中華人民共和國註冊成立之股份有限公司） （股份代號：01558） 有關二零二三年年報 之補充公告 茲提述宜昌東陽光長江藥業股份有限公司（「本公司」，連同其附屬公司統稱「本集 團」）二零二三年年報（「年報」）及本公司日期為二零二四年四月二十六日有關分成 協議之持續關連交易的公告（「該公告」）。除另有界定者外，本公告所用詞彙與年 報及該公告所界定者具有相同涵義。 除年報所載資料外，本公司董事會謹此提供年報的以下補充資料，年報應與以下 資料一併閱讀。 上 市 規 則 附 錄 C1 第 D .2.4 段 所 說 明 ， 董 事 會 須 對 本 集 團 維 持 良 好 及 有 效 風 險 管 ...

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 6,294.59 million, representing an increase of 68.08% compared to 2022[5]. - Profit attributable to equity shareholders was RMB 1,992.62 million, a significant increase of 2,501.23% compared to a loss of RMB 76.60 million in 2022[5]. - Basic and diluted earnings per share for the year were RMB 2.26[5]. - Gross profit for 2023 was RMB 4,985.76 million, with a gross profit margin of 79.21%[7]. - Net profit margin for the year was 37.40%[7]. - Total assets increased to RMB 12,744.33 million as of December 31, 2023[7]. - Total equity attributable to equity shareholders rose to RMB 7,935.51 million[7]. - Cash generated from operating activities was RMB 1,673.21 million[7]. - For the year ended December 31, 2023, the Group's revenue amounted to RMB 6,294.59 million, representing an increase of 68.08% compared to 2022[67]. - Profit attributable to equity shareholders for the same period was RMB 1,992.62 million, a significant increase of 2,501.23% from RMB 76.60 million in 2022[67]. - The increase in profit was primarily due to enhanced brand recognition of the core product, Kewei, and strong performance across all business pipelines[67]. Product Development and R&D - The Company plans to further develop and expand its product lines and markets, enhancing production standards and quality to drive business growth and profitability[14]. - The Company completed the repurchase of H share convertible bonds in full and launched several new products, including Insulin Aspart Injection and Metoprolol Succinate Sustained-release Tablets[16]. - The Company is increasing investment in drug R&D, focusing on anti-infective, endocrine, and metabolic diseases to accelerate clinical applications[44]. - The Company has received approval for the launch of the Mixed Protamine Human Insulin Injection, which will enhance its product portfolio in treating endocrine and metabolic diseases[47]. - The Company aims to enhance its R&D capabilities and continuously introduce new products to enrich its existing product lineup[54]. - The Group has developed a comprehensive product line for insulin, covering both second and third generations, with products approved for launch including Recombinant Human Insulin Injection and Insulin Glargine Injection[79]. - The Group's comprehensive R&D system for insulin products adheres to biosimilar drug standards adopted in Europe and the United States[79]. - The company aims to expand its product portfolio in antiviral drugs with the approval of Yiqibuvir Tablets, enhancing affordable treatment options for patients[179]. - Continuous efforts will be made in product R&D and innovation to enhance market competitiveness and introduce new products[193]. Market Strategy and Positioning - The Company aims to create unique brand characteristics and core competitiveness in the pharmaceutical industry through strategic resource integration[12]. - The Company aims to strengthen its marketing strategy and enhance its reputation in the domestic market to support the rapid launch of new products[44]. - The pharmaceutical industry in China is shifting focus from generic drugs to innovative drugs, which is becoming the core competitiveness for future development[43]. - The Group's strategy includes focusing on the Consistency Evaluation to ensure the quality and curative effect of generic drugs[187]. - The shift in China's pharmaceutical industry from generic to innovative drugs is recognized as a core competitiveness for future development[195]. - The Company plans to consolidate and expand strategic target markets to better capture industry competition[195]. Operational Highlights - The Company has over 23 years of operational history in the pharmaceutical industry, focusing on anti-infection and endocrine diseases[8]. - As of December 31, 2023, the Company has 1,788 professional sales staff across a nationwide product distribution network[10]. - The Group's new retail system has matured, forming a stable business model that integrates online and offline sales channels for pharmaceutical retail[76]. - The Group aims to diversify its new retail product line and expand market channels to provide patients with high-quality and fairly priced medical choices[76]. - The Group's production base in Hubei Yidu is the world's largest production base for oseltamivir phosphate, producing a full range of insulin products[87]. - The establishment of multi-channel sales teams is expected to enhance the sales volume of the Group's product portfolio across various sales channels[86]. Financial Stability and Investments - The gearing ratio as of December 31, 2023 was 32.86%, down from 62.96% as of December 31, 2022, indicating improved financial stability[119]. - The quick ratio as of December 31, 2023 was 1.30 times, compared to 0.95 times as of December 31, 2022, reflecting better liquidity management[119]. - The Group's total capital expenditure for construction, equipment, and approvals as of December 31, 2023, was RMB 595.08 million[124]. - The Group's employee age distribution shows that 28.93% are 30 or below, 68.80% are between 31-50, and 2.27% are above 50[136]. - The Group's remuneration policy aims to motivate and retain talented employees, with regular reviews based on industry standards[138]. Regulatory and Compliance - The Company has been included in the Hang Seng family of indexes and the Hong Kong Stock Connect List, reflecting its strong market presence[23]. - The Company became the only manufacturer of Oseltamivir Phosphate Granule in China after registration with the China Food and Drug Administration[33]. - The new version of the National Medical Reimbursement Drug List, effective from December 7, 2023, added 126 types of drugs, which is expected to expand the market size for innovative drugs in China[191]. - The risk of drug price decline is heightened due to centralized procurement and reforms in the medical insurance system, which could lead to a declining trend in drug prices[191]. Shareholder and Corporate Governance - The Company repurchased H Share Convertible Bonds with a total purchase price of US$60,000,000, including US$43,118,778 in the second tranche[146]. - The Company completed the disposal of 9.9134% of the Target Equity in Sunshine Lake Pharma for a consideration of RMB2,312,319,650 on June 27, 2023[176]. - The resignation of Mr. CHEN Yangui and the appointment of Mr. CHEN Hao as an executive director were approved by shareholders on September 8, 2023[178]. - The Board proposed an upward adjustment of RMB940,000 for the annual cap under the Energy Purchase Framework Agreement for 2023, bringing the revised cap to RMB51,340,000[160].

智通财经APP讯，东阳光长江药业(01558)公布2023年业绩，营业额为约人民币62.95亿元，同比增加 68.08%。归属于公司权益持有人的溢利及全面收益总额为约19.93亿元，同比增加2501.23%。每股基本 及摊薄盈利为人民币2.26元。 公告称，业绩增长主要由于集团长期不断加强学术推广及品牌建设之路，核心产品可威的品牌认知度进 一步得到提升，且各管线业务均呈现良好的业绩表现，整体业务已体现出多产品线共同发展的态势。 具体业绩方面，于2023年，公司核心产品可威(磷酸奥司他韦胶囊及颗粒)、尔同舒(苯溴马隆片)、欧美 宁(替米沙坦片)、琳罗星(盐酸莫西沙星片)及奥美沙坦酯片的营业额占总营业额的比重分别为87.53%、 1.51%、1.24%、0.71%及0.66%。同时新制药产品的陆续获批上市，在进一步丰富集团的产品组合的同 时，也为广大患者提供质价双优的用药选择。 核心产品可威(磷酸奥司他韦胶囊及颗粒)的销售额为55.095亿元，较去年同期增加78.15%。可威销售额 的增加主要原因是由于2023年国内人员流动及日常社交活动已日趋正常化，终端医疗机构人流量、诊疗 活动及药品处方量恢复势头良好。 ...

Financial Performance - The company reported a revenue of RMB 6,294.59 million for the year ending December 31, 2023, representing an increase of 68.08% compared to RMB 3,744.95 million for the previous year[2]. - EBITDA for the same period was RMB 2,745.44 million, reflecting a significant increase of 293.09% from RMB 698.35 million in the prior year[2]. - Net profit attributable to equity holders was RMB 1,992.62 million, a remarkable increase of 2,501.23% from RMB 76.60 million in the previous year[2]. - Basic and diluted earnings per share for the year were RMB 2.26, compared to RMB 0.09 in the previous year[4]. - The gross profit for the year was RMB 4,985.76 million, up from RMB 2,846.07 million, indicating a strong growth in profitability[5]. - Operating profit for the year was RMB 2,354.20 million, a significant increase from RMB 321.07 million in the previous year[5]. - The pre-tax profit for the year was RMB 2,126,771,000, a substantial increase compared to RMB 39,422,000 in the previous year[22]. - The total tax expense for the year was RMB 270,945,000, compared to a tax benefit of RMB (9,817,000) in the previous year[20]. - The company reported a net profit of RMB 1,992,624 thousand for the year 2023, a substantial increase from RMB 76,603 thousand in 2022, representing a growth of over 2,500%[9]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 8,412.11 million, compared to RMB 6,949.02 million in the previous year[7]. - Cash and cash equivalents increased to RMB 1,674.41 million from RMB 923.54 million, indicating improved liquidity[7]. - Trade and other receivables rose to RMB 2,112.80 million from RMB 1,036.92 million, reflecting growth in sales and collections[7]. - The company's total liabilities decreased from RMB 879,018 thousand in 2022 to RMB 476,596 thousand in 2023, indicating a reduction of about 45.7%[8]. - The company's total liabilities increased to RMB 3,760,090,000 as of December 31, 2023, from RMB 3,670,087,000 in 2022, reflecting a growth of approximately 2.4%[31]. - The company's trade receivables amounted to RMB 2,000,557 thousand, an increase from RMB 892,611 thousand in the previous year, reflecting a significant growth[39]. - The total value of bank loans increased to RMB 2,607,804 thousand in 2023 from RMB 914,872 thousand in 2022, indicating a substantial rise in borrowing[43]. Equity and Retained Earnings - As of December 31, 2023, the company's net assets increased to RMB 7,935,513 thousand, up from RMB 6,070,001 thousand in 2022, representing a growth of approximately 30.7%[8]. - The company's retained earnings rose significantly to RMB 3,947,144 thousand in 2023 from RMB 2,065,811 thousand in 2022, marking an increase of about 91%[9]. - Total equity attributable to shareholders reached RMB 7,935,513 thousand in 2023, compared to RMB 5,884,884 thousand in 2022, reflecting a growth of approximately 34.8%[9]. Research and Development - The group’s research and development expenses were impacted by tax effects related to machinery and equipment purchases, amounting to RMB (26,709,000) in tax effects[22]. - The group’s research and development investment in 焦谷氨酸荣格列净 reached RMB 197.11 million, accounting for 3.13% of operating income[60]. - The group’s research and development in the endocrine and metabolic disease sector has shown exceptional progress, with a complete product line planning for insulin products[58]. Product and Market Development - The company operates primarily in the pharmaceutical production and sales sector, with no geographical segment reporting due to the nature of its business[12]. - The company plans to expand its product line for anti-infective drugs in response to market demand[51]. - The company aims to enhance the development of chronic disease medications, focusing on safe and effective treatment options[51]. - The company has achieved significant progress in internationalizing its innovative drug industry, with several products successfully entering international markets[50]. - The group aims to establish its brand "可威" as the leading antiviral medication through extensive academic promotion and brand building efforts, enhancing brand recognition among patients and healthcare providers[54]. Employee and Workforce - The total employee cost for the year ended December 31, 2023, was approximately RMB 714.30 million, with a total workforce of 4,618 employees[85]. - The employee distribution by age shows that 68.80% are between 31 and 50 years old, while 28.93% are 30 years old or younger[86]. - The group adheres to labor laws and provides various employee benefits, including social insurance and housing funds, with plans to enhance employee welfare in the future[88]. Corporate Governance and Compliance - The board of directors includes executive directors and independent non-executive directors, indicating a diverse governance structure[120]. - The audit committee has reviewed the annual performance announcement and the financial statements prepared in accordance with international financial reporting standards[97]. Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[2]. - The company has no declared or paid dividends for the years ending December 31, 2022, and December 31, 2023[46]. Agreements and Contracts - The company entered into a leasing and service framework agreement with Shenzhen Dongyangguang Industrial Development Co., Ltd., with proposed annual limits of RMB 12,383,300, RMB 12,999,500, and RMB 13,003,300 for three consecutive years[100]. - The company established a raw material and pharmaceutical sales framework agreement with Shenzhen Dongyangguang Industrial Development Co., Ltd., with proposed annual limits of RMB 18,000,000, RMB 20,000,000, and RMB 22,000,000 for three consecutive years[100].

Financial Performance - For the six months ended June 30, 2023, the Company reported revenue of RMB 3,209,002,000, a significant increase from RMB 1,293,308,000 for the same period in 2022, representing a growth of 147.5%[2] - Gross profit for the same period was RMB 2,563,937,000, up from RMB 960,657,000 in 2022, resulting in a gross profit margin of 79.9%, compared to 74.3% in the previous year[2] - The Company achieved a profit from operations of RMB 1,398,121,000, compared to a profit of RMB 100,611,000 in the prior year, indicating a substantial improvement in operational efficiency[2] - Profit attributable to equity shareholders was RMB 1,029,495,000, a turnaround from a loss of RMB 32,798,000 in the same period last year[2] - Basic and diluted earnings per share both stood at 117 RMB cents, compared to a loss of 4 RMB cents in the previous year[2] - Total assets increased to RMB 13,444,196,000 from RMB 10,813,721,000 in 2022, reflecting a growth of 24.1%[2] - For the six months ended June 30, 2023, the Group's revenue reached RMB 3,209.0 million, representing a 148.1% increase compared to the same period in 2022[28] - Profit attributable to equity shareholders was RMB 1,029.5 million, a significant increase of RMB 1,062.3 million from a loss of RMB 32.8 million in the first half of 2022[28] - For the six months ended June 30, 2023, the Group's revenue was RMB 3,209.0 million, an increase of 148.1% compared to the same period in 2022[30] - The profit attributable to equity holders of the Company for the same period was RMB 1,029.5 million, a significant increase of RMB 1,062.3 million from a loss of RMB 32.8 million in the prior year[30] - The gross profit for the six months ended June 30, 2023, was RMB 2,563.9 million, up 166.9% from RMB 960.7 million in the same period of 2022[77] - The Group's profit before taxation for the six months ended 30 June 2023 was RMB 1,261.9 million, a significant increase from a loss of RMB 36.4 million in the same period of 2022[95] - Net profit for the period reached RMB 1,023.9 million, compared to a net loss of RMB 32.5 million for the same period in 2022, marking an increase of RMB 1,056.4 million[97] - Total comprehensive income attributable to equity shareholders was RMB 1,029.5 million, a substantial increase from a loss of RMB 32.8 million in the same period last year[98] Product and Market Development - The Company has established strategic partnerships with major pharmaceutical enterprises, including a three-year exclusive distribution agreement with Jointown Pharmaceutical Group[11] - The Company is collaborating with the Wuhan Institute of Virology and other entities to create a national antiviral drug center, enhancing its R&D capabilities[11] - The Company’s core product, Oseltamivir Phosphate, remains a first-line treatment for influenza in China and is included in the National Essential Drug List[8] - The Company aims to expand its market presence and enhance product distribution through its nationwide network of 1,767 professional sales staff[10] - Core products, including Kewei (Oseltamivir Phosphate), accounted for 89.8% of total revenue, with other products contributing 1.2% each for Ertongshu (Benzbromarone Tablets) and Oumeining (Telmisartan Tablets)[29] - The overall lifting of pandemic restrictions and improvement in socio-economic conditions contributed to the recovery of visitor flow and drug prescription volumes in medical institutions[28] - Future plans include expanding product lines and markets, improving international production standards, and enhancing promotional coverage to drive business growth[16] - The company aims to strengthen its core competitiveness and brand recognition in the pharmaceutical industry[15] - The PRC pharmaceutical industry is experiencing significant advancements in innovative drug development, particularly in anti-infectives and endocrine drugs, creating new market opportunities[20] - The demand for endocrine and metabolic drugs is increasing, indicating a maturing market with more treatment options for patients[20] - The Group's chronic disease business, particularly insulin, is experiencing rapid growth due to strengthened professional promotion and optimized sales channels[65] Research and Development - The Group is actively developing large clinical varieties suitable for centralized procurement, enhancing its business structure and integrated strengths[68] - The Group has made significant R&D progress in endocrine and metabolic diseases, with multiple diabetes drugs acquired and expected to generate considerable sales[48] - R&D investment totaled RMB120.7 million, accounting for 3.8% of revenue, with a 39.4% increase compared to the same period last year[90] - The Group's R&D costs surged by 140.2% to RMB98.3 million, reflecting a strong commitment to innovation and product development[86] Financial Position and Cash Flow - As of June 30, 2023, the Group's total assets were RMB13,444.2 million, with total liabilities of RMB6,350.3 million and shareholders' equity of RMB7,093.9 million[105] - The Group's net current assets rose by RMB 882.9 million, reflecting the increase in current assets and a RMB 717.0 million rise in total current liabilities due to the reclassification of convertible bonds[116] - Net cash generated from operating activities for the first half of 2023 was RMB 1,244.8 million, a significant increase from RMB 152.4 million in the same period last year, attributed to higher sales of Kewei[121] - The Group's net cash generated from investing activities was RMB 1,217.8 million, a turnaround from a cash outflow of RMB 476.9 million in the previous year, mainly due to increased proceeds from the disposal of equity in Sunshine Lake Pharma[122] - As of June 30, 2023, the balance of bank loans and other borrowings was RMB 2,297.3 million, reflecting an increase of RMB 1,595.5 million compared to RMB 914.8 million as of December 31, 2022[127] - Total equity attributable to equity shareholders increased to RMB 6,914.4 million as of June 30, 2023, up by RMB 1,029.5 million from RMB 5,884.9 million at the end of 2022, primarily due to profits recorded during the reporting period[128] Corporate Governance and Agreements - The Company agreed to purchase convertible bonds with a total principal amount of USD 28,911,534 for USD 40,000,000 and USD 43,118,778 for USD 60,000,000 in two tranches[150] - The total purchase price for the third tranche of repurchased bonds was USD 278,191,332, with a portion of bonds amounting to USD 194,161,057[156] - The aggregate purchase price for the second tranche of repurchased bonds was revised from USD 278,191,332 to USD 263,191,332[159] - The Group does not have any future plans for material investment or acquisition of material capital assets as of the report date[149] - The Company entered into an Entrusted Processing Framework Agreement with Shenzhen HEC Industrial, with proposed annual caps of RMB 94,805,500, RMB 108,832,000, and RMB 139,468,200 for the years ending 31 December 2023, 2024, and 2025, respectively[177][181] - The Company also established an Equipment Sales Framework Agreement with Shenzhen HEC Industrial, with a proposed annual cap of RMB 30,496,500 for the year ending 31 December 2023[177][181] - The Company completed the transfer of 9.9134% of the Target Equity in Sunshine Lake Pharma to Shenzhen HEC Industrial for a consideration of RMB 2,312,319,650 on 27 June 2023[191][193] - The Company repurchased the principal amount of H Share Convertible Bonds in full on 5 July 2023, concluding the repurchase process[196][198] - The Company changed its stock short name from "HEC PHARM" to "HEC CJ PHARM" in English and from "東陽光藥" to "東陽光長江藥業" in Chinese, effective immediately[187][189]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 3,209.0 million, an increase of 148.1% compared to the same period last year[2]. - Gross profit for the same period was RMB 2,563.9 million, reflecting a 166.9% increase year-over-year[2]. - Operating profit before interest, tax, depreciation, and amortization (EBITDA) was RMB 1,316.4 million, up from RMB 274.7 million in the previous year[2]. - Net profit attributable to equity holders was RMB 1,029.5 million, compared to a loss of RMB 32.8 million in the same period last year[3]. - Basic and diluted earnings per share were RMB 1.17, compared to a loss of RMB 0.04 per share in the previous year[3]. - For the twelve months ending June 30, 2023, the company reported revenue of RMB 5,660,646,000, a significant increase from RMB 2,004,850,000 for the same period ending June 30, 2022, representing a growth of approximately 183%[19]. - The gross profit for the twelve months ending June 30, 2023, was RMB 4,449,354,000, compared to RMB 1,343,568,000 for the same period in 2022, indicating a growth of about 231%[19]. - The company reported a net profit of RMB 1,023.9 million, compared to a net loss of RMB 32.5 million in the same period last year[98]. Assets and Liabilities - Total non-current assets amounted to RMB 6,830.3 million, slightly down from RMB 6,875.8 million at the end of 2022[6]. - Current assets increased to RMB 6,613.9 million from RMB 5,014.0 million at the end of 2022[6]. - Total current liabilities were RMB 5,657.8 million, up from RMB 4,940.8 million at the end of 2022[6]. - As of June 30, 2023, total assets decreased to RMB 7,786,400 thousand from RMB 6,949,019 thousand as of December 31, 2022, indicating a year-over-year increase of approximately 12%[8]. - Net assets increased to RMB 7,093,925 thousand as of June 30, 2023, compared to RMB 6,070,001 thousand as of December 31, 2022, reflecting a growth of about 17%[8]. - The company’s total liabilities decreased to RMB 692,475 thousand as of June 30, 2023, from RMB 879,018 thousand as of December 31, 2022, indicating a reduction of about 21%[8]. - The company reported a total of RMB 1,509,359,000 in financial liabilities measured at amortized cost as of June 30, 2023, down from RMB 1,718,222,000[47]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 1,244,799 thousand, a significant increase from RMB 152,427 thousand in the same period of 2022[11]. - Cash and cash equivalents increased to RMB 3,781,609 thousand as of June 30, 2023, compared to RMB 859,097 thousand as of June 30, 2022, showing a substantial growth[13]. - The company reported a net cash inflow from financing activities of RMB 395,490 thousand for the six months ended June 30, 2023, compared to RMB 52,666 thousand in the previous year[13]. - The company’s cash flow from investing activities showed a net inflow of RMB 1,217,801 thousand for the six months ended June 30, 2023, compared to a net outflow of RMB 476,929 thousand in the previous year[12]. Research and Development - Research and development expenses increased to RMB 98.3 million from RMB 40.9 million year-over-year[4]. - Research and development expenses amounted to RMB 120.7 million, accounting for 3.8% of total revenue, which is a 39.4% increase year-on-year[95]. - The company achieved significant progress in the research and development of innovative drugs, particularly in the areas of anti-infection and endocrine metabolism, during the first half of 2023[74]. - The company plans to increase R&D investment, focusing on drug development in areas such as anti-infectives and endocrine diseases, to enhance product competitiveness[127]. Market and Sales - Revenue from antiviral drug sales reached RMB 2,911,437,000 for the six months ending June 30, 2023, up from RMB 1,012,403,000 in the same period of 2022, reflecting an increase of approximately 187%[18]. - The core product Kewai (Oseltamivir Phosphate) generated sales of RMB 2,880.5 million, representing a growth of 186.4% year-on-year[78]. - The sales contribution of Kewai accounted for 89.8% of the total revenue, with other products contributing significantly less[77]. - The company has developed a professional promotion team for insulin products, which now consists of nearly 500 personnel, and has established connections with over 5,000 end-users[79]. - The company is actively participating in the elimination of hepatitis C, with its product Phosphorylated Emetine already included in the national medical insurance catalog[80]. - The company has strengthened its market marketing efforts to improve the recognition and competitiveness of its drugs in response to increasing health awareness among consumers[74]. - The company is actively participating in international markets, leveraging improvements in its technological capabilities and increasing global influence[75]. Corporate Governance and Compliance - The company has adhered to high standards of corporate governance and complied with all relevant rules during the reporting period[130]. - The company’s audit committee reviewed the interim results and financial statements for the six months ending June 30, 2023, prepared in accordance with international financial reporting standards[132]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023[2]. - The company has not declared any dividends for the six months ended June 30, 2023, and June 30, 2022[56]. - The total issued and paid-up ordinary shares as of June 30, 2023, is 879,967,700 shares, unchanged from December 31, 2022[57]. Agreements and Frameworks - The company has established a leasing and service framework agreement with Shenzhen Dongyangguang Industrial, with proposed annual limits of RMB 12,383,300, RMB 12,999,500, and RMB 13,003,300 for the three years ending December 31, 2025[118]. - The company has set a framework agreement for the sale of raw materials and pharmaceuticals, with proposed annual limits of RMB 18,000,000, RMB 20,000,000, and RMB 22,000,000 for the three years ending December 31, 2025[118]. - A framework agreement for commissioned processing has been established, with proposed annual limits of RMB 94,805,500, RMB 108,832,000, and RMB 139,468,200 for the three years ending December 31, 2025[121]. - All agreements mentioned have been approved by shareholders at the annual general meeting held on June 2, 2023[122].