Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 61.43 billion HKD for 2023, a year-on-year increase of 2.70%, with product sales revenue reaching 56.27 billion HKD, reflecting a growth of 11.23% [1] - The net profit attributable to shareholders was 5.33 billion HKD, showing a decline of 11.94% year-on-year [1] - The company has seen continuous improvement in management efficiency and significant optimization of its financial structure [1] - Revenue growth was observed across three major fields, with double-digit growth in product sales recovery [1] - The company launched five new products in 2023, with significant potential for growth in the oncology sector [1][2] Financial Summary - The projected revenues for 2024, 2025, and 2026 are 68.11 billion HKD, 83.95 billion HKD, and 99.25 billion HKD, representing year-on-year growth rates of 11%, 23%, and 18% respectively [2][3] - The net profit attributable to shareholders is expected to be 7.75 billion HKD, 12.40 billion HKD, and 15.98 billion HKD for the years 2024, 2025, and 2026, with corresponding growth rates of 46%, 60%, and 29% [2][3] - The gross margin is projected to improve from 68.44% in 2023 to 73.79% in 2025, before slightly decreasing to 72.94% in 2026 [3][5] - The company’s asset-liability ratio is expected to decrease from 46.93% in 2023 to 36.10% in 2026, indicating a continued effort to reduce debt [5] Product and Market Development - The oncology treatment revenue reached 21.22 billion HKD, while the cardiovascular and central nervous system treatment revenues were 16.87 billion HKD and 16.95 billion HKD, reflecting increases of 10.8% and 28.1% respectively [1] - The company has successfully entered international markets with its cardiovascular products and has maintained a strong market position for its CNS products [1] - Several new products are expected to be approved soon, which will lay a solid foundation for future growth [1][2]

Financial Performance - Revenue increased by RMB 161.4 million or 2.7% to RMB 6,143.1 million compared to the year ended December 31, 2022[2]. - EBITDA rose by RMB 264.6 million or 14.6% to RMB 2,077.4 million compared to the previous year[2]. - Gross profit increased by RMB 63.7 million or 1.5% to RMB 4,204.2 million, with a gross profit margin of 68.4%[2]. - Profit before tax increased by RMB 30.3 million or 4.5% to RMB 700.1 million compared to the year ended December 31, 2022[2]. - Net profit attributable to shareholders decreased to RMB 532.6 million, a decline of RMB 72.2 million compared to the previous year[2]. - Basic earnings per share decreased to RMB 14.29 from RMB 17.38 in the previous year[2]. - Total revenue for the year ended December 31, 2023, was RMB 6,143,078 thousand, an increase from RMB 5,981,656 thousand in 2022, representing a growth of approximately 2.7%[23][26]. - The pre-tax profit for the year ended December 31, 2023, was RMB 700,100 thousand, compared to RMB 669,762 thousand in 2022, indicating an increase of about 4.5%[21][23]. Assets and Liabilities - Total non-current assets increased to RMB 14,787.4 million from RMB 13,463.8 million in the previous year[6]. - Current assets totaled RMB 10,703.3 million, slightly down from RMB 10,785.8 million in the previous year[6]. - Cash and cash equivalents increased to RMB 3,238.9 million from RMB 2,323.7 million in the previous year[6]. - As of December 31, 2023, total current liabilities decreased to RMB 8,137,807 thousand from RMB 9,487,203 thousand in 2022, representing a reduction of approximately 14.3%[7]. - The net value of current assets increased significantly to RMB 2,565,475 thousand in 2023, compared to RMB 1,298,610 thousand in 2022, marking a growth of approximately 97.6%[7]. - Total assets minus current liabilities rose to RMB 17,352,908 thousand in 2023, up from RMB 14,762,422 thousand in 2022, indicating an increase of about 17.7%[7]. - The total equity attributable to the parent company increased to RMB 12,531,185 thousand in 2023 from RMB 10,175,954 thousand in 2022, reflecting a growth of approximately 23.2%[8]. - The company’s total non-current liabilities amounted to RMB 3,824,414 thousand in 2023, slightly up from RMB 3,720,700 thousand in 2022, indicating a marginal increase of about 2.8%[7]. Revenue Breakdown - The segment revenue from tumor drugs was RMB 5,627,352 thousand for 2023, while the revenue from cardiovascular system drugs was RMB 1,687,359 thousand[22]. - Revenue from sales products amounted to RMB 5,627,352 thousand in 2023, compared to RMB 5,059,298 thousand in 2022, reflecting an increase of about 11.2%[25][26]. - The revenue from R&D services was RMB 81,550 thousand in 2023, up from RMB 86,689 thousand in 2022, indicating a decrease of approximately 6.5%[25][26]. - The total revenue from the Chinese mainland market was RMB 5,029,604 thousand in 2023, a slight decrease from RMB 5,031,164 thousand in 2022, reflecting a marginal decline of approximately 0.03%[25][26]. Expenses and Costs - Administrative expenses for the year were RMB 643,967 thousand, up from RMB 582,870 thousand in 2022, reflecting an increase of approximately 10.5%[21][23]. - The cost of goods sold for 2023 was RMB 1,866,830,000, compared to RMB 1,762,326,000 in 2022, indicating an increase of about 5.9%[30]. - Research and development expenses decreased to RMB 586,157,000 in 2023 from RMB 857,337,000 in 2022, a reduction of approximately 31.6%[30]. - Total financial costs rose to RMB 675,454,000 in 2023, up from RMB 471,755,000 in 2022, marking an increase of about 43.2%[32]. - The total tax expense for the year was RMB 161,023,000, significantly higher than RMB 86,466,000 in 2022, reflecting an increase of approximately 86.2%[35]. Dividends and Share Capital - The board does not recommend the payment of a dividend for the year ended December 31, 2023[2]. - The company did not declare or propose any interim or final dividends for the year ending December 31, 2023, consistent with 2022[38]. - Basic earnings per share for the year were calculated based on 3,728,362,856 shares, an increase from 3,480,852,775 shares in 2022[38]. - The issued share capital rose to RMB 486,107 thousand in 2023, up from RMB 456,953 thousand in 2022, which is an increase of about 6.4%[8]. Research and Development - The R&D team consists of 931 employees, including 86 PhDs and 467 Master's degree holders, as of December 31, 2023[70]. - The company holds 271 patents in China and 508 patents overseas, with 61 and 123 patents pending, respectively[70]. - The company is actively engaged in strategic development in cell therapy and gene therapy[54]. - The company has over 30 domestic and more than 10 international products in the research pipeline[54]. Market and Product Development - The company has established eight production bases globally and maintains a GMP quality management system[54]. - The company has initiated multiple global collaborations, including a partnership with Abacus Medicine Pharma Services for the exclusive distribution of Lurbinectedin in Hong Kong[91]. - The company signed an agreement with Zhengda Qingdao for the exclusive sales rights of Dushudan injection in mainland China in January 2023[91]. - The company completed strategic cooperation with Baijie Shenzhou for the commercialization of its innovative formulation, Goserelin microspheres, in mainland China in July 2023[91]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[20]. - The group expects existing products to achieve stable growth, with new products approved in the past three years anticipated to ramp up quickly[93]. - The innovative formulation of Baitowei for prostate and breast cancer treatment has been approved for commercialization in China, with a significant market potential estimated at RMB 9.72 billion[94].

Reward Shares - The total number of reward shares granted in the fiscal year 2022 was 26,389,000, with 25,206,000 shares having vested by May 15, 2022[1] - As of December 31, 2022, there were no unvested reward shares held by the top five highest-paid employees, who collectively held 1,135,000 unvested shares at the beginning of the fiscal year[2] - The closing price of the shares on the stock exchange prior to the vesting date was HKD 2.33 per share[2]

Financial Performance - Revenue increased by RMB 53.3 million or 1.9% to RMB 2,904.1 million compared to the six months ended June 30, 2022[7]. - Gross profit decreased by RMB 106.7 million or 5.2% to RMB 1,943.4 million, with a gross margin of 66.9%[7]. - Net profit attributable to shareholders decreased by RMB 147.0 million or 49.5% to RMB 150.0 million[7]. - EBITDA decreased by RMB 48.7 million or 5.3% to RMB 867.3 million[7]. - The group recorded a significant increase in product sales revenue of 18.7% to RMB 2,784.5 million for the six months ended June 30, 2023, compared to the same period in 2022[9]. - Total revenue, including product sales and licensing agreements, increased by 1.9% to RMB 2,904.1 million during the same period[9]. - In the oncology treatment sector, revenue decreased by 11.2% to RMB 910.3 million, while cardiovascular treatment revenue increased by 24.2% to RMB 977.9 million[10]. - The central nervous system treatment revenue rose by 4.4% to RMB 680.4 million, whereas metabolic treatment revenue decreased by 23.4% to RMB 247.1 million[10]. - The group’s net profit for the six months ended June 30, 2023, was approximately RMB 145.4 million, a decrease of about RMB 157.8 million or 52.0% compared to RMB 303.2 million for the same period in 2022[52]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 4.06, down from RMB 8.54 in 2022, representing a decline of approximately 52.4%[80]. Research and Development - As of June 30, 2023, the group has 39 products under development in China, including 13 oncology products and 12 CNS products[4]. - The R&D team consists of 908 employees, including 79 PhDs and 447 Master's degree holders[3]. - The group holds 272 patents in China and 481 patents overseas, with additional patents pending[3]. - The group aims to continue investing in the strategic therapeutic areas of oncology, CNS, cardiovascular, and digestive and metabolic diseases[3]. - The company continues to invest in four strategic therapeutic areas: oncology, central nervous system, cardiovascular, and metabolic diseases, with 39 products in various stages of development in China as of June 30, 2023[23]. - LY03003, a long-acting injectable for Parkinson's disease, has its New Drug Application (NDA) accepted by the CDE in August 2023, marking it as the first global product to provide continuous dopamine stimulation[25]. - Bai Tuo Wei (Goserelin microspheres) is the first and only approved long-acting microsphere formulation globally, approved in June 2023 for prostate cancer treatment, and in September 2023 for breast cancer in premenopausal women[26]. - The innovative microsphere technology of Bai Tuo Wei significantly improves patient experience with a needle diameter of only 0.8 mm, enhancing the drug delivery process[26]. Market and Product Development - The group has established a national sales and distribution network covering over 21,660 hospitals across 31 provinces in China[3]. - The group has established a global supply chain with 8 production bases and a GMP quality management system[8]. - The group has over 30 domestic and more than 10 international products in the pipeline, focusing on innovative drug delivery technologies[8]. - The group’s major products in China include 4 oncology drugs, 3 central nervous system drugs, 3 cardiovascular drugs, and 1 metabolic drug[10]. - The company aims to maintain or steadily grow its market share in high-prevalence disease areas with its 12 major products[11]. - The flagship product Xuezhikang generated over RMB 1 billion in sales in 2021 and is expected to maintain double-digit growth in the coming years[38]. - The company plans to expand its sales team in core therapeutic areas and deepen its market coverage in oncology and central nervous system treatments[42]. Financial Position and Liabilities - The total assets as of June 30, 2023, amounted to RMB 26,300.2 million, while total liabilities were RMB 14,105.9 million[7]. - As of June 30, 2023, the group had total borrowings of approximately RMB 8,372.6 million, an increase from RMB 7,642.7 million as of December 31, 2022[54]. - The company reported a total of RMB 12,855,350,000 in financial liabilities as of June 30, 2023, including interest-bearing loans and borrowings of RMB 7,642,713,000[157]. - The company has secured bank loans with actual interest rates ranging from 2.80% to 5.00% due between 2023 and 2024, totaling RMB 3,388,117 thousand[132]. - The company has a total of RMB 379,664 thousand in other non-current liabilities as of June 30, 2023[136]. Shareholder Information and Corporate Governance - Major shareholders include Green Leaf Pharmaceutical Investment Limited, holding 1,257,196,703 shares (33.42%)[67]. - Hillhouse NEV Holdings Limited holds 552,324,108 shares, representing 14.68% of the company[67]. - UBS Group AG has a holding of 414,017,118 shares (11.01%) and 368,053,174 shares in short positions (9.78%)[67]. - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual[60]. - The company’s audit committee reviewed the unaudited interim financial statements for the six months ended June 30, 2023, and recommended their adoption to the board[63]. Cash Flow and Investments - Net cash flow from operating activities increased to RMB 689,727 thousand, up from RMB 604,447 thousand year-over-year, representing a growth of approximately 14.1%[89]. - Total cash and cash equivalents at the end of the period reached RMB 4,472,767 thousand, compared to RMB 3,372,826 thousand in the previous year, reflecting an increase of about 32.5%[90]. - Cash flow from investing activities showed a net outflow of RMB 78,019 thousand, a significant decrease from a net inflow of RMB 319,776 thousand in the prior year[89]. - The company reported a significant increase in interest expenses, totaling RMB 306,837 thousand, up from RMB 214,111 thousand, which is an increase of about 43.3%[88]. Related Party Transactions and Legal Matters - The group reported related party transactions totaling RMB 5,035,000 in product sales to Steward Cross and RMB 2,709,000 to Qingdao Luye for the six months ended June 30, 2023[142]. - The group has outstanding receivables from related parties amounting to RMB 24,673,000 as of June 30, 2023, with significant amounts due from Yantai Painuo (RMB 19,411,000) and Qingdao Luye (RMB 1,365,000)[144]. - The group has received approval to appeal a court decision regarding the arbitration ruling, with a hearing scheduled for the end of 2023[138]. Employee Incentives and Share Plans - The company adopted a share incentive plan on January 10, 2017, which is effective for ten years, aimed at rewarding employees and retaining talent[146]. - The share incentive plan was terminated early on January 20, 2023, due to the share price falling below HKD 4, resulting in all granted shares becoming void[148]. - The company confirmed zero expenses related to share-based payments during the reporting period, compared to RMB 6,966,000 for the six months ending June 30, 2022[150].

Financial Performance - Revenue increased by RMB 53.3 million or 1.9% to RMB 2,904.1 million compared to the six months ended June 30, 2022[2] - Gross profit decreased by RMB 106.7 million or 5.2% to RMB 1,943.4 million, with a gross profit margin of 66.9%[2] - Net profit attributable to shareholders decreased by RMB 147.0 million or 49.5% to RMB 150.0 million[2] - EBITDA decreased by RMB 48.7 million or 5.3% to RMB 867.3 million[2] - Basic earnings per share were RMB 4.06, down from RMB 8.54 for the six months ended June 30, 2022[3] - Total revenue for the six months ended June 30, 2023, was RMB 2,904,108 thousand, an increase from RMB 2,850,826 thousand for the same period in 2022, representing a growth of approximately 1.9%[24] - The pre-tax profit for the six months ended June 30, 2023, was RMB 922,980 thousand, compared to RMB 800,742 thousand for the same period in 2022, indicating an increase of about 15.3%[25] - Total tax expense for the six months ended June 30, 2023, was RMB 83,634,000, an increase of 15.5% compared to RMB 72,187,000 for the same period in 2022[28] - The group’s total comprehensive income attributable to equity holders of the parent company for the six months ended June 30, 2023, was RMB (201) thousand, compared to RMB (140) thousand for the same period in 2022[18] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 14,892.5 million, compared to RMB 14,762.4 million as of December 31, 2022[6] - Non-current assets increased to RMB 13,191.2 million from RMB 13,463.8 million[5] - Current assets totaled RMB 13,109.0 million, up from RMB 10,785.8 million[5] - Total equity attributable to equity holders of the parent increased to RMB 11,334.8 million from RMB 10,175.9 million[6] - Non-current liabilities decreased to RMB 2,698,179 thousand as of June 30, 2023, down from RMB 3,720,700 thousand as of December 31, 2022, representing a decline of about 27.4%[7] - Trade receivables and notes receivable as of June 30, 2023, amounted to RMB 1,876,917,000, an increase from RMB 1,435,170,000 as of December 31, 2022[31] - Trade payables as of June 30, 2023, totaled RMB 439,628,000, an increase from RMB 417,814,000 as of December 31, 2022[38] - The total amount of discounted notes receivable was RMB 1,783,389,000 as of June 30, 2023, compared to RMB 1,713,387,000 as of December 31, 2022[34] - As of June 30, 2023, the total interest-bearing bank and other borrowings amounted to RMB 8,372,648 thousand, an increase from RMB 7,642,713 thousand as of December 31, 2022[40][41] Corporate Governance and Compliance - The company has adopted new and revised International Financial Reporting Standards (IFRS) effective from January 1, 2023, which may impact the disclosures in the annual financial statements[12] - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[2] - The company has adopted high standards of corporate governance, complying with all applicable codes except for a deviation regarding the separation of the roles of Chairman and CEO[107] - The independent auditor has reviewed the unaudited interim financial results for the six months ended June 30, 2023, in accordance with the relevant auditing standards[111] Research and Development - The R&D team consists of 908 employees, including 79 PhDs and 447 Master's degree holders, with 272 patents granted in China as of June 30, 2023[67] - The company has 39 products in various stages of development in China, including 18 oncology products and 15 central nervous system products[67] - The company continues to invest in four strategic therapeutic areas: oncology, central nervous system, cardiovascular, and metabolism[67] - The company has developed over 30 domestic and more than 10 international products in its pipeline, maintaining a high level in innovative drug delivery technologies[51] Market and Product Performance - The company recorded product sales revenue of RMB 2,784.5 million, representing an 18.7% growth, and total revenue of RMB 2,904.1 million during the reporting period[84] - In the oncology treatment sector, revenue decreased by 11.2% to RMB 910.3 million, while cardiovascular treatment revenue increased by 24.2% to RMB 977.9 million[54] - The company has established a strong competitive advantage in 12 major products across high-prevalence disease areas, with market share expected to grow or maintain current levels[54] - The product "Baituo Wei" is expected to have significant market potential in China, with rapid sales growth anticipated due to strategic collaboration with BeiGene[85] Strategic Initiatives - The company aims to enhance management efficiency and reduce unnecessary expenses to navigate macroeconomic challenges[89] - The sales team for core therapeutic areas will be expanded to solidify market position in oncology and deepen coverage in the central nervous system treatment field[89] - The company will actively seek partnerships and explore domestic and international markets to ensure sustainable growth[89] - The strategic partnership with Abacus Medicine Pharma Services grants exclusive distribution rights for NPP drugs in Hong Kong, initiated in January 2023[81]

Financial Performance - Revenue increased by RMB 781.5 million or 15.0% to RMB 5,981.7 million compared to the year ended December 31, 2021[12]. - EBITDA rose by RMB 905.9 million or 99.9% to RMB 1,812.8 million compared to the year ended December 31, 2021[12]. - Gross profit increased by RMB 743.8 million or 21.9% to RMB 4,140.5 million, with a gross margin of 69.2%[12]. - Net profit attributable to shareholders was RMB 604.8 million, an increase of RMB 739.2 million compared to the loss for the year ended December 31, 2021[12]. - Normalized EBITDA grew by 44.8% year-on-year to RMB 1.9626 billion, while normalized net profit attributable to shareholders surged by 101.8% to RMB 886 million[14]. - The company recorded a revenue growth of 15.0% in 2022, reaching RMB 5,981.7 million, despite challenges from government policies and the COVID-19 pandemic[68]. - The company expects significant revenue growth in 2023 due to the commercialization of new products and the introduction of several new therapies[68]. Research and Development - R&D expenses increased by RMB 174.2 million or 25.5% to RMB 857.3 million compared to the year ended December 31, 2021[12]. - The company holds 257 patents in China and 486 patents overseas as of December 31, 2022[4]. - The R&D team consists of 934 employees, including 81 PhDs and 459 master's degree holders[4]. - The company has 35 products in various stages of development in China, including 15 oncology products[4]. - The company continues to invest in four strategic therapeutic areas: oncology, central nervous system, cardiovascular, and digestive and metabolic products, with 35 research products at various development stages in China as of December 31, 2022[40]. - The company has eight products under NDA review in various markets, with five products undergoing NDA review in mainland China[79]. Product Development and Launches - The company successfully launched several new drugs, including Rykindo® and the first domestically developed antidepressant, Ruo Xin Lin®[15]. - The oncology segment saw a revenue increase of 63.1%, amounting to RMB 2.3058 billion, while the cardiovascular segment's revenue rose by 7.6% to RMB 1.5357 billion[24]. - The product Lurbinectedin for small cell lung cancer has shown a 45.5% overall response rate in a Phase I trial in China, with a median progression-free survival of 6.6 months[46]. - The new drug LY03005 for generalized anxiety disorder has been approved for Phase III clinical trials in China, marking a significant breakthrough in local drug development[48]. - The product Ruoxinlin, approved for depression treatment, is the first domestically developed Class 1 chemical new drug with independent intellectual property rights in China[76]. - The product Boyoubai, launched in November 2022, is the world's first approved biosimilar of Prolia for osteoporosis treatment in postmenopausal women[77]. Market Presence and Sales - The company has established a national sales and distribution network covering over 20,150 hospitals in China[3]. - The company operates in over 80 countries and regions globally, including the US, EU, and Japan[3]. - The company has established strong sales partnerships across over 80 countries, enhancing its global market presence[58]. - The product Xuezhikang generated over RMB 1 billion in sales in 2021 and is expected to maintain double-digit growth in the coming years[71]. - The product Oukai has been rapidly growing and is now a significant product in the cardiovascular treatment sector, with ongoing exploration of its market potential[71]. Financial Position and Capital Management - As of December 31, 2022, the group's net current assets were approximately RMB 1,298.6 million, down from RMB 3,066.5 million as of December 31, 2021[97]. - The current ratio decreased from approximately 1.42 on December 31, 2021, to approximately 1.14 on December 31, 2022, primarily due to an increase in loans and borrowings[97]. - Total borrowings amounted to approximately RMB 7,642.7 million as of December 31, 2022, compared to RMB 7,620.1 million as of December 31, 2021[98]. - The company issued convertible bonds totaling RMB 1,200 million and RMB 300 million in August and September 2022, respectively, with a conversion price of HKD 3.50 per share[104]. - The net proceeds from the August 2022 convertible bonds were approximately HKD 1,371.15 million, with planned uses including RMB 548.46 million for product development and RMB 411.35 million for debt repayment[110]. Corporate Governance and Management - The company has a strong board of directors, including Mr. Song Ruilin, who has extensive experience in healthcare law and policy, and has held various significant positions in the industry[128]. - The company is committed to enhancing its corporate governance through a diverse and experienced board of directors, ensuring effective oversight and strategic direction[135]. - The company has established a remuneration committee to review its remuneration policies and structures for all directors and senior management, considering the company's performance and market practices[192]. - The independent non-executive directors have confirmed their independence according to the listing rules, and the company considers all of them to be independent[185]. Risk Management and Compliance - The company has established risk management procedures to mitigate financial risks, including interest rate, foreign exchange, credit, and liquidity risks[165]. - The company has allocated resources to ensure compliance with regulatory requirements, maintaining good relationships with regulatory authorities[170]. - The company has a structured approach to managing operational risks through standard operating procedures and regular assessments[160]. Employee and Operational Insights - As of December 31, 2022, the company employed 5,005 staff, an increase from 4,845 staff as of December 31, 2021[117]. - Employee costs for the year ended December 31, 2022, were approximately RMB 778.3 million, down from RMB 830.0 million in the previous year[117]. - The company aims to attract and retain skilled personnel by offering competitive compensation packages[162].

Financial Performance - Revenue increased by RMB 781.5 million or 15.0% to RMB 5,981.7 million compared to the year ended December 31, 2021[2] - EBITDA rose by RMB 905.9 million or 99.9% to RMB 1,812.8 million, while normalized EBITDA increased by RMB 607.3 million or 44.8% to RMB 1,962.6 million[2] - Gross profit increased by RMB 743.8 million or 21.9% to RMB 4,140.5 million, with a gross profit margin of 69.2%[2] - Net profit attributable to shareholders was RMB 604.8 million, an increase of RMB 739.2 million compared to a net loss in the previous year[2] - Total comprehensive income for the year was RMB 576.9 million, compared to a loss of RMB 168.9 million in the previous year[6] - Basic earnings per share were RMB 17.38, compared to a loss of RMB 3.90 per share in the previous year[5] Revenue Breakdown - The revenue from product sales was RMB 5,059,298,000, with significant contributions from various therapeutic areas including cardiovascular and oncology[18] - Revenue in the oncology treatment sector increased by 63.1% to RMB 2,305.8 million in 2022[53] - Cardiovascular treatment revenue rose by 7.6% to RMB 1,535.7 million, while central nervous system treatment revenue decreased by 0.1% to RMB 1,322.7 million[53] - The sales revenue from digestive and metabolic products decreased to RMB 632.4 million, a decline of approximately RMB 266.1 million or 29.6% compared to RMB 898.5 million in the previous year[90] Expenses and Costs - Research and development expenses increased by RMB 174.2 million or 25.5% to RMB 857.3 million, with total R&D expenses amounting to RMB 1,399.4 million[2] - Administrative expenses for the year were RMB 582,870,000, while other expenses totaled RMB 990,405,000[18] - Financial costs rose to RMB 471,755 thousand in 2022 from RMB 399,458 thousand in 2021, marking an increase of about 18.1%[31] - Total tax expense for the year was RMB 86,466 thousand, compared to RMB 70,226 thousand in 2021, indicating an increase of approximately 23.1%[34] Assets and Liabilities - Non-current assets increased to RMB 13,463,812 thousand in 2022 from RMB 12,185,397 thousand in 2021, representing an increase of approximately 10.5%[8] - Current assets totaled RMB 10,785,813 thousand in 2022, up from RMB 10,396,664 thousand in 2021, reflecting a growth of about 3.7%[8] - Total liabilities rose to RMB 13,207,903 thousand in 2022, compared to RMB 13,468,158 thousand in 2021, indicating a decrease of approximately 1.9%[9] - The company's net assets increased to RMB 11,041,722 thousand in 2022, up from RMB 9,113,903 thousand in 2021, marking a growth of around 21.1%[10] Shareholder Returns - The board did not recommend the declaration of any dividend for the year ended December 31, 2022[5] - No interim or final dividends were declared for the year ended December 31, 2022, consistent with 2021[36] Market and Product Development - The company is investing in four strategic therapeutic areas: oncology, central nervous system, cardiovascular, and digestive and metabolic diseases, with 35 products in various stages of development in China[65] - The company has eight products under NDA review in various markets, with five products undergoing NDA review in mainland China[88] - The newly launched product, Bo You Bei, is the world's first approved biosimilar of Prolia for treating osteoporosis in postmenopausal women, significantly reducing fracture risks[87] Compliance and Governance - The company has complied with all applicable corporate governance codes as of December 31, 2022, with one exception regarding the roles of the chairman and CEO[111] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors for the year ending December 31, 2022[112]

Financial Performance - Revenue decreased by RMB 100.8 million or 3.4% to RMB 2,850.8 million compared to the six months ended June 30, 2021[10]. - Net profit attributable to shareholders decreased by RMB 89.6 million or 23.2% to RMB 297.0 million[10]. - EBITDA decreased by RMB 38.7 million or 4.1% to RMB 916.0 million[10]. - The group's revenue decreased by 3.4% year-on-year for the first half of 2022, impacted by the COVID-19 pandemic and global economic fluctuations[13]. - The company recorded revenue of approximately RMB 2,850.8 million for the six months ended June 30, 2022, a decrease of about RMB 100.8 million or 3.4% compared to RMB 2,951.7 million for the same period in 2021[39]. - Net profit for the six months ended June 30, 2022, was approximately RMB 303.2 million, a decrease of about RMB 104.8 million or 25.7% from RMB 408.0 million for the same period in 2021[48]. - The total comprehensive income for the period was RMB 262,470 thousand, down from RMB 434,699 thousand in the same period last year, a decline of 39.5%[77]. Revenue Breakdown - Revenue from cardiovascular products decreased by 1.7% to RMB 787.1 million, while revenue from digestive and metabolic products decreased by 29.6% to RMB 322.7 million[14]. - Sales revenue from oncology products increased by 10.6% to RMB 1,025.0 million, indicating strong performance in this segment[14]. - Revenue from oncology drugs reached RMB 1,024,989 thousand, accounting for approximately 36% of total revenue[92]. - The cardiovascular system drugs segment generated RMB 787,061 thousand, representing a 3% decrease compared to RMB 800,653 thousand in the previous year[92][93]. Research and Development - The company has 32 products under development in China, including 13 oncology products and 12 central nervous system products[4]. - As of June 30, 2022, the R&D team consisted of 839 employees, including 72 PhDs and 407 Master's degree holders[3]. - The company holds 248 patents in China and 615 patents overseas, with additional patents pending[3]. - The company aims to continue investing in strategic therapeutic areas, including oncology, central nervous system, cardiovascular, and digestive and metabolic diseases[24]. - The company plans to enhance its R&D capabilities and develop in-progress products to strengthen its market position[34]. Market Presence and Distribution - The company has established a national sales and distribution network covering over 18,100 hospitals across 30 provinces in China[3]. - The company has over 50 global sales partnerships and operates in 80 countries or regions, including the US, EU, Japan, ASEAN, and Latin America[29]. - The company established a nationwide sales and distribution network in China, reaching over 18,100 hospitals, including approximately 2,200 tertiary hospitals (87% of all tertiary hospitals) and 5,400 secondary hospitals (65% of all secondary hospitals) by the first half of 2022[29]. Financial Position - The total assets as of June 30, 2022, amounted to RMB 22,568.0 million, while total liabilities were RMB 13,119.3 million[8]. - As of June 30, 2022, the company had net current assets of approximately RMB 2,865.8 million, down from RMB 3,066.5 million as of December 31, 2021, with a current ratio slightly decreasing from 1.42 to 1.39[49]. - Total borrowings as of June 30, 2022, amounted to approximately RMB 7,184.9 million, a decrease from RMB 7,578.2 million as of December 31, 2021, with RMB 5,395.7 million due within one year[50]. - The debt-to-equity ratio decreased from 83.6% as of December 31, 2021, to 76.4% as of June 30, 2022, primarily due to a reduction in total borrowings during the reporting period[51]. Expenses and Costs - Other income and gains decreased to RMB 141.9 million, down approximately RMB 20.4 million or 12.5% compared to RMB 162.3 million for the same period in 2021, primarily due to a reduction in government subsidies[42]. - Sales and distribution expenses increased to RMB 838.2 million, an increase of RMB 67.4 million or 8.7% compared to RMB 770.7 million for the same period in 2021[43]. - Administrative expenses for the six months ended June 30, 2022, were approximately RMB 266.2 million, a decrease of about RMB 15.7 million or 5.6% compared to RMB 281.9 million for the same period in 2021[44]. - Other expenses increased to approximately RMB 498.8 million for the six months ended June 30, 2022, an increase of about RMB 119.4 million or 31.5% from RMB 379.3 million in the same period of 2021, mainly due to higher R&D costs[45]. Shareholder Information - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2022[10]. - Major shareholders include Green Leaf Pharmaceutical Investment Limited, holding 1,257,196,703 shares (35.42%)[65]. - Hillhouse NEV Holdings Limited holds 552,324,108 shares, representing 15.56% of the company[65]. - The company has adopted a code of conduct for securities trading, confirming compliance by all directors for the six months ended June 30, 2022[59]. Corporate Governance - The company complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual[58]. - The audit committee reviewed the unaudited interim financial statements for the six months ended June 30, 2022, and recommended their adoption to the board[61].

Financial Performance - Revenue decreased by RMB 339.4 million or 6.1% to RMB 5,200.2 million compared to the year ended December 31, 2020[17]. - EBITDA decreased by RMB 970.2 million or 51.7% to RMB 906.9 million compared to the year ended December 31, 2020[17]. - Gross profit decreased by RMB 593.9 million or 14.9% to RMB 3,396.7 million, with a gross margin of 65.3%[17]. - Net profit attributable to shareholders decreased by RMB 841.0 million or 119.0% to RMB -134.4 million compared to the year ended December 31, 2020[17]. - Other income and gains decreased to RMB 330.7 million, down approximately RMB 72.6 million or 18.0% compared to RMB 403.3 million in the previous year, primarily due to fewer government subsidies recognized during the year[103]. - Sales and distribution expenses increased to RMB 1,704.8 million, an increase of RMB 40.9 million or 2.5% from RMB 1,663.9 million, with the percentage of sales and distribution expenses to revenue rising from 30.0% to 32.8%[104]. - Administrative expenses rose to approximately RMB 570.8 million, an increase of about RMB 49.3 million or 9.5% from RMB 521.5 million, mainly due to higher employee costs[105]. - Other expenses increased to approximately RMB 1,127.6 million, up about RMB 283.5 million or 33.6% from RMB 844.1 million, primarily due to a one-time provision for legal claims[106]. - Financial costs decreased to RMB 399.5 million, down approximately RMB 24.5 million or 5.8% from RMB 424.0 million, mainly due to a reduction in outstanding bank loans[107]. - Income tax expenses decreased to RMB 70.2 million, a reduction of RMB 168.7 million or 70.6% from RMB 238.9 million, with an effective tax rate of -94.2%[110]. - The normalized EBITDA decreased by RMB 596.4 million or 30.6% to RMB 1,355.3 million compared to the previous year[111]. Research and Development - R&D expenses decreased by RMB 106.7 million or 13.5% to RMB 683.2 million, with total R&D expenses amounting to RMB 1,476.4 million[17]. - The company had 30 products in various stages of development in China, including 12 oncology products and 12 CNS products as of December 31, 2021[7]. - The R&D team consisted of 824 employees, including 73 PhDs and 438 Master's degree holders as of December 31, 2021[7]. - Research and development investment totaled nearly RMB 1.5 billion in 2021, representing a significant increase compared to the previous year[20]. - The company successfully launched three new products: Ruixinte®, Boyounuo®, and Lisdexamfetamine transdermal patch, while seven projects are in the listing review stage[20]. - The company anticipates launching 10 new products over the next two years, marking the beginning of a harvest period for self-developed products[21]. - The company maintains a strong pipeline with 30 domestic and 12 international products under development as of December 31, 2021[27]. - The company has developed over 10 innovative antibody products and biosimilars with international intellectual property protection, supporting long-term growth[93]. Market and Sales Performance - The company achieved a revenue of RMB 5.2 billion for the year ended December 31, 2021, despite a 6.1% decrease compared to the previous year due to the pandemic and industry challenges[27]. - Sales revenue from cardiovascular products increased by 42.1% to RMB 1.4273 billion, while sales from digestive and metabolic products rose by 22.5% to RMB 898.5 million[29]. - The oncology product revenue decreased by 36.7% to RMB 1.4141 billion, while central nervous system product sales fell by 5.5% to RMB 1.3238 billion[29]. - The company has established a national sales and distribution network covering over 19,330 hospitals in China[6]. - The company operates in over 80 countries and regions globally, including the US, EU, and Japan, with more than 50 global partners[6]. - The company established a CNS sales team of over 110 representatives to enhance market coverage and drive growth for its CNS products, including the newly approved 瑞欣妥[93]. - The company plans to deepen market coverage in lower-tier hospitals following the inclusion of its product in the national medical insurance catalog[93]. Strategic Initiatives - The company plans to accelerate the clinical and market progress of key projects in 2022, focusing on innovation and internationalization strategies[24]. - The company aims to enhance its global commercialization capabilities to support sustainable growth and value realization from innovative products[21]. - The company is committed to creating value for patients, shareholders, and society through high-quality growth in both domestic and international markets[24]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of 100 million allocated for potential deals[144]. - The management team emphasized a focus on sustainable practices, aiming to reduce operational costs by 8% through efficiency improvements[144]. Corporate Governance and Structure - The company has a strong management team with extensive experience in the biotechnology and pharmaceutical industries[159][160]. - The company has a diverse board with members holding significant positions in various listed companies, enhancing its governance and strategic direction[151][154][158]. - The board of directors includes executive directors Liu Dianbo and Yang Rongbing, among others, with terms subject to re-election at the upcoming annual general meeting[193]. - Independent non-executive directors have confirmed their independence according to Listing Rule 3.13, and the company considers all independent non-executive directors to be independent[198]. - Executive directors have signed contracts with a term of three years starting from July 9, 2020, while non-executive directors have contracts of two years starting from their respective appointment dates[199]. Risk Management and Compliance - The group faces various financial risks, including interest rate risk, foreign exchange risk, credit risk, and liquidity risk, with management procedures in place to mitigate these risks[178]. - The group has a risk management framework to identify and assess operational risks regularly[174]. - The group emphasizes compliance with regulatory requirements and has maintained compliance in all significant aspects as of December 31, 2021[183]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[144]. - New product launches are expected to contribute an additional 200 million in revenue over the next year[144]. - Market expansion plans include entering two new international markets, projected to increase market share by 5%[144].

Financial Performance - Revenue decreased by RMB 10.5 million or 0.4% to RMB 2,951.7 million compared to the six months ended June 30, 2020[16]. - Gross profit decreased by RMB 244.2 million or 11.1% to RMB 1,953.7 million, with a gross margin of 66.2%[16]. - Net profit decreased by RMB 132.3 million or 24.5% to RMB 408.0 million compared to the same period last year[16]. - Shareholders' profit decreased by RMB 152.8 million or 28.3% to RMB 386.6 million[16]. - EBITDA decreased by RMB 207.6 million or 17.9% to RMB 954.7 million[16]. - Earnings per share were RMB 11.32, down from RMB 16.90 for the six months ended June 30, 2020[16]. - The group recorded a total comprehensive income of RMB 434,699 thousand for the period, down from RMB 540,422 thousand in the previous year[107]. - The group’s pre-tax profit for the six months ended June 30, 2021, was RMB 386,585,000, down from RMB 539,416,000 in the same period of 2020, indicating a decrease of approximately 28.3%[131]. - The total tax expense for the period was RMB 80,446,000, compared to RMB 144,247,000 in the previous year, showing a decrease of approximately 44.3%[134]. Revenue Breakdown - Sales revenue from cardiovascular products increased by 86.4% to RMB 800.7 million in the first half of 2021[22]. - Sales revenue from digestive and metabolic products rose by 17.1% to RMB 458.3 million in the first half of 2021[22]. - Sales revenue from oncology products decreased by 30.5% to RMB 927.0 million in the first half of 2021[22]. - Sales revenue from central nervous system products decreased by 7.0% to RMB 694.4 million in the first half of 2021[22]. - The revenue breakdown by product type shows that oncology drugs generated RMB 926,998,000, cardiovascular drugs RMB 800,653,000, and central nervous system drugs RMB 71,327,000 for the six months ended June 30, 2021[123]. Research and Development - As of June 30, 2021, the company had 33 products in various stages of development in China, including 13 oncology products and 13 CNS products[6]. - The R&D team consisted of 856 employees, including 82 PhDs and 430 Master's degree holders[5]. - The company holds over 235 patents in China and more than 595 patents overseas, with additional patents pending[5]. - The company is developing products in four strategic therapeutic areas: oncology, central nervous system, cardiovascular, and digestive and metabolic diseases[31]. - The company has submitted New Drug Applications (NDA) for two products (LY03004 and LY03005) in the U.S., with four other products in different clinical trial phases[31]. - The company is focusing on the development of innovative drugs for treating moderate to severe pain and cancer-related breakthrough pain with LY03014[34]. Clinical Trials and Approvals - The long-acting injectable LY03004 for schizophrenia was approved for marketing in China in January 2021, marking the first innovative formulation developed by the company[33]. - The clinical trial for LY-CovMab, an innovative monoclonal antibody for COVID-19 treatment, was completed in China, showing good safety and tolerability[35]. - The company has initiated clinical trials for LY03015, a new drug for tardive dyskinesia and Huntington's disease, with an IND application submitted to the FDA in August 2021[33]. - In February 2021, the company completed the first patient dosing of its biosimilar drug LY09004 in a Phase III clinical trial in China[36]. - The company received approval in May 2021 for LY01008, a biosimilar to Avastin, for the treatment of advanced, metastatic, or recurrent non-small cell lung cancer and metastatic colorectal cancer[36]. Market Presence and Distribution - The company has established a national sales and distribution network covering over 18,800 hospitals in China[5]. - The company markets its products, including Seroquel and its extended-release version, in over 50 developed and emerging countries[30]. - The company has over 50 global sales partners and operates in markets including the US, EU, Japan, ASEAN, Latin America, and the Gulf Cooperation Council[37]. - The company granted exclusive promotion rights for LY01008 to AstraZeneca in 21 provinces and municipalities in mainland China in May 2021[40]. Financial Position and Assets - As of June 30, 2021, the group's cash and cash equivalents amounted to RMB 4,943.6 million, an increase of 27.9% from RMB 3,865.4 million as of December 31, 2020[64]. - The group's net current assets were approximately RMB 4,562.1 million as of June 30, 2021, compared to RMB 2,736.3 million as of December 31, 2020[64]. - The group's current ratio improved from approximately 1.4 as of December 31, 2020, to approximately 1.7 as of June 30, 2021[64]. - Total borrowings decreased from approximately RMB 8,170.6 million as of December 31, 2020, to approximately RMB 7,063.6 million as of June 30, 2021[66]. - The capital-to-debt ratio decreased from 100.9% as of December 31, 2020, to 72.8% as of June 30, 2021, primarily due to the reduction in total borrowings[67]. Employee and Governance - As of June 30, 2021, the group employed a total of 4,788 employees, down from 4,963 employees as of December 31, 2020[77]. - Employee costs for the six months ended June 30, 2021, amounted to RMB 467.4 million, compared to RMB 405.3 million for the same period in 2020, reflecting an increase of approximately 15.9%[77]. - The group has adopted a corporate governance code in line with the listing rules, with compliance noted except for the separation of the roles of Chairman and CEO[84]. Shareholder Information - Green Leaf Pharmaceutical Investment Limited holds 1,257,196,703 shares (35.50%) and 72,701,950 shares (2.05%) in the company[93]. - Hillhouse Capital Management, Ltd. holds 552,324,108 shares (15.60%) in the company[93]. - The company has not proposed an interim dividend for the six months ended June 30, 2021, consistent with the previous year[84]. Legal and Compliance - The group is involved in an arbitration procedure regarding a distribution agreement, with preliminary assessments indicating a strong defense against the claims[167]. - The independent auditor has reviewed the unaudited interim financial results for the six months ended June 30, 2021[89].