Revenue and Financial Performance - Revenue increased by approximately 178.3% from about RMB 343 million for the six months ended June 30, 2023, to about RMB 956 million for the six months ended June 30, 2024[4]. - The company reported a revenue increase of 178.3%, from RMB 34.3 million for the six months ended June 30, 2023, to RMB 95.6 million for the six months ended June 30, 2024, primarily due to increased sales of hair disease and skincare products[21]. - Revenue for the six months ended June 30, 2024, was RMB 95,575 thousand, a significant increase from RMB 34,343 thousand in the same period of 2023, representing an increase of 178%[102]. - Gross profit for the same period was RMB 50,335 thousand, compared to RMB 21,260 thousand in 2023, indicating a growth of 136%[102]. - The total loss for the period was RMB 200,926 thousand, a reduction from a loss of RMB 1,640,339 thousand in the previous year, showing an improvement of 87%[102]. - Basic and diluted loss per share was RMB (0.66), compared to RMB (15.84) in the prior year, reflecting a significant reduction in loss per share[102]. - The adjusted net loss for the six months ended June 30, 2024, was approximately RMB 1.61 billion, with the adjusted net loss as a percentage of revenue further narrowing[4]. Product Performance and Development - During the "618 event," the combined GMV of hair disease and care products and skin care products grew nearly fivefold year-on-year[5]. - The revenue of the "Qing Si Ji He" selenium disulfide shampoo increased by 12,100% year-on-year in the first half of 2024[5]. - CU-40102, the world's first and only approved topical finasteride for androgenetic alopecia, had its NDA accepted by the National Medical Products Administration in January 2024[5]. - CU-10201, the world's first and only approved topical minocycline for acne treatment, received NDA acceptance in September 2023[6]. - CU-30101, a topical lidocaine-dinoprost cream for skin surface surgeries, had its drug listing application accepted in July 2024[6]. - CU-40102 is the world's first and only approved topical finasteride spray for androgenetic alopecia, with its NDA accepted by the National Medical Products Administration (NMPA) in January 2024[10]. - CU-10201 is the first and only approved topical minocycline foam for the treatment of acne, with its NDA accepted by the NMPA in September 2023[11]. - CU-30101 completed its Phase III clinical trial in January 2024, with its drug registration application accepted by the NMPA in July 2024[13]. - CU-20401 is currently undergoing a Phase II clinical trial for submental fat accumulation, expected to complete by 2025 and aims for regulatory approval in 2028[14]. Marketing and Sales Strategy - The company is focused on expanding its online marketing strategy and enhancing sales capabilities across various e-commerce and social media platforms[20]. - The "Qing Si Ji He®" flagship store on e-commerce platforms has a repurchase rate and customer inquiry conversion rate consistently above industry averages[16]. - The company is expanding its interest e-commerce channels, with significant year-on-year revenue growth in the first half of 2024[16]. - The "Ouma" olive oil series products account for over 70% of skin care product sales[16]. - The online sales performance during the "618 event" saw a nearly fivefold year-on-year increase in GMV for hair and skin care products[16]. Expenses and Cost Management - The cost of sales rose from RMB 13.1 million to RMB 45.2 million, an increase of RMB 32.1 million, consistent with business growth[22]. - Sales and distribution expenses increased by 78.3% from RMB 58.0 million to RMB 103.5 million, driven by expanded online marketing activities[26]. - Research and development costs rose by 9.8% from RMB 90.1 million to RMB 99.0 million, attributed to an increase in R&D personnel and milestone-related expenses[27]. - Administrative expenses decreased by 23.1% from RMB 87.9 million to RMB 67.6 million, primarily due to reduced share-based payment expenses[29]. - Financial costs increased by 182.4% from RMB 1.7 million to RMB 4.8 million, mainly due to increased bank loans for operational funding[30]. - Other income decreased by 44.6% from RMB 21.5 million to RMB 11.9 million, mainly due to reduced government subsidies and lower bank interest income[24]. Shareholder and Equity Information - As of June 30, 2024, the beneficial ownership of shares includes Zhang Lele with 27,524,275 shares (9.03%) and Huang Yuqing with 4,750,000 shares (1.56%) in the company[50]. - As of June 30, 2024, 6 Dimensions Capital, L.P. holds 61,771,710 shares, representing approximately 20.27% of the total shares[51]. - 6 Dimensions Capital GP, LLC controls 65,022,855 shares, accounting for about 21.34% of the total shares[51]. - The total shareholding structure indicates significant concentration among a few major shareholders, with the top three shareholders holding over 60% of the total shares[51]. - The company has a diverse shareholder base, including various investment partnerships and funds, indicating strong institutional interest[51]. - The company repurchased a total of 585,800 shares at a total cost of approximately HKD 4.2 million, representing about 0.19223% of the issued shares as of the date of the repurchase resolution[56]. - The total number of issued shares remains unchanged at 304,738,625 shares after the repurchase[56]. Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents totaled RMB 276.0 million, a decrease of 41.7% from RMB 473.1 million as of December 31, 2023, primarily due to expenditures in R&D and operations[36]. - The company's current assets amounted to RMB 1,210.1 million, including cash and cash equivalents of RMB 276.0 million, while current liabilities were RMB 237.8 million[36]. - The debt-to-asset ratio as of June 30, 2024, was 21.2%, slightly up from 21.0% as of December 31, 2023[38]. - The total equity of Cutia Therapeutics is RMB 1,188,333,000, down from RMB 1,349,039,000 as of December 31, 2023, representing a decrease of approximately 11.93%[104]. - The company’s cash and cash equivalents decreased to RMB 276,047,000 as of June 30, 2024, down from RMB 693,557,000 as of June 30, 2023, a decline of approximately 60.19%[109]. - The total amount of loans payable within one year increased to RMB 170,332,000 as of June 30, 2024, compared to RMB 129,411,000 as of December 31, 2023[131]. Corporate Governance and Compliance - The company has adopted the principles and code provisions of the corporate governance code and has complied with all applicable code provisions for the six months ending June 30, 2024[90]. - The company has complied with the standard code of conduct for securities trading, with no violations reported by employees who may possess inside information[58]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[95]. - There were no significant breaches of loan agreements during the reporting period[93]. - The company did not issue any equity securities or sell treasury shares for cash during the reporting period[94].

Fund Allocation and Utilization - Global offering net proceeds amounted to approximately HKD 392.7 million (equivalent to approximately RMB 356.8 million)[1] - 42% of the net proceeds (HKD 164.9 million) allocated for CU-20401 R&D personnel costs and ongoing R&D activities[1] - 11% of the net proceeds (HKD 43.2 million) allocated for CU-40102 and CU-10201 R&D personnel costs and ongoing R&D activities[1] - 10% of the net proceeds (HKD 39.3 million) allocated for technology and business development for pipeline expansion[1] - 5% of the net proceeds (HKD 19.6 million) allocated for working capital and general corporate purposes[1] - As of December 31, 2023, HKD 130.2 million of the net proceeds had been utilized, with HKD 262.5 million remaining unused[1] Equity Incentive Plan - 30,402,446 shares were available for issuance under the post-IPO equity incentive plan, representing 9.98% of the company's issued shares[2] - The post-IPO equity incentive plan allows for the granting of options or share awards with a minimum holding period of 12 months from the grant date[2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 0.96 billion yuan in H1 2024, representing a year-on-year increase of 178.3%. The net loss attributable to shareholders was 2.01 billion yuan, with adjusted net profit at -1.61 billion yuan, indicating a narrowing loss margin relative to revenue [1] - The company is positioned as a rising star in the field of dermatological treatments, with a comprehensive product lineup in hair care. The approval of external minocycline, external finasteride, and lidocaine ointment is expected to contribute to revenue growth [1] - The revenue forecast for 2024-2026 is projected at -4.97 billion yuan, -3.41 billion yuan, and -1.70 billion yuan for net profit, with corresponding EPS of -1.63, -1.12, and -0.56 yuan, and revenue of 2.79 billion yuan, 5.49 billion yuan, and 10.09 billion yuan respectively [1] Revenue and Profitability - Hair care revenue in H1 2024 was approximately 476 million yuan, with the core product Bailleul ranking first in Tmall International for 16 consecutive months. The revenue from hair care products, excluding the main product, has been increasing significantly [2] - Skin care revenue in H1 2024 was around 470 million yuan, with the OMA olive oil series accounting for over 70% of sales. The contribution from interest e-commerce channels has also increased year-on-year [2] - The gross margin for H1 2024 was 53%, showing a 5 percentage point increase from H2 2023, indicating a positive trend in profitability [2] Pipeline Progress - The company has a strong pipeline with several products under development, including OTC minoxidil solution and external finasteride spray, which are expected to launch between H2 2024 and 2025. The approval of these products will further enhance growth potential [3] - The company completed Phase II clinical enrollment for a recombinant mutant collagenase for submental fat accumulation in June, with expectations to complete Phase II by 2025 and obtain approval by 2028 [3] - An IND application for a new topical small molecule for atopic dermatitis was approved in May [3] Financial Metrics - The projected revenue for 2024 is 2.79 billion yuan, with a year-on-year growth rate of 103%. The net profit is expected to be -497 million yuan, with a gross margin of 58.5% [4] - The company’s P/S ratio is projected to decrease from 12.8 in 2024 to 3.5 in 2026, indicating a potential undervaluation as revenue grows [4]

Revenue Growth - Revenue increased by approximately 178.3% from about RMB 343 million for the six months ended June 30, 2023, to about RMB 956 million for the six months ended June 30, 2024[2]. - Revenue increased by 178.3% from RMB 34.3 million for the six months ended June 30, 2023, to RMB 95.6 million for the six months ended June 30, 2024, primarily due to increased sales of hair disease and care products and daily skincare products[12]. - The company reported a significant increase in customer contract revenue, reaching RMB 95,575 thousand for the six months ended June 30, 2024, compared to RMB 34,343 thousand for the same period in 2023, representing a growth of approximately 178%[46]. Gross Margin and Profit - Gross margin improved by approximately 5 percentage points from about 48% for the six months ended December 31, 2023, to about 53% for the six months ended June 30, 2024[2]. - Gross profit increased by 136.8% from RMB 21.3 million for the six months ended June 30, 2023, to RMB 50.3 million for the six months ended June 30, 2024[14]. - Gross margin decreased from approximately 62% for the six months ended June 30, 2023, to approximately 53% for the six months ended June 30, 2024, but increased by about 5 percentage points from approximately 48% for the six months ended December 31, 2023[14]. Loss and Financial Performance - Adjusted net loss for the six months ended June 30, 2024, was approximately RMB 161 million, with the adjusted net loss as a percentage of revenue further narrowing[2]. - The company recorded a loss of RMB 200.9 million for the six months ended June 30, 2024, a decrease of RMB 1,439.4 million compared to a loss of RMB 1,640.3 million for the six months ended June 30, 2023[23]. - Basic and diluted loss per share improved to RMB (0.66) from RMB (15.84) year-over-year[38]. Research and Development - CU-40102, the first and only approved topical finasteride product for androgenetic alopecia, had its NDA accepted by the National Medical Products Administration in January 2024[5]. - CU-10201, the first and only approved topical minocycline foam for acne treatment, received priority review qualification in August 2023 and had its NDA accepted in September 2023[5]. - The company is conducting a Phase II clinical trial for CU-20401, aimed at treating submental fat accumulation, with the last patient enrolled in June 2024[3]. - The company is actively engaged in research and development, focusing on core products such as CU-20401, CU-40102, and CU-10201[58]. Sales and Marketing - During the "618 event," the combined GMV of hair disease and care products and skin care products grew nearly fivefold year-on-year[3]. - Online sales performance showed significant growth, with GMV for hair disease and care products and skincare products increasing nearly fivefold during the "618 event" period[8]. - The company aims to enhance its online marketing strategy and strengthen sales capabilities across various e-commerce and social media platforms to increase brand awareness[11]. Expenses and Costs - Sales cost rose from RMB 13.1 million for the six months ended June 30, 2023, to RMB 45.2 million for the six months ended June 30, 2024, an increase of RMB 32.1 million, consistent with business growth[13]. - Sales and distribution expenses increased by 78.3% from RMB 58.0 million for the six months ended June 30, 2023, to RMB 103.5 million for the six months ended June 30, 2024, driven by expanded online marketing activities[16]. - R&D costs rose by 9.8% from RMB 90.1 million for the six months ended June 30, 2023, to RMB 99.0 million for the six months ended June 30, 2024, due to an increase in R&D personnel and higher purchasing/licensing expenses[17]. Assets and Liabilities - Cash and cash equivalents totaled RMB 276.0 million as of June 30, 2024, a decrease of 41.7% from RMB 473.1 million as of December 31, 2023, mainly due to expenditures in R&D and other operating activities[25]. - The company’s current assets amounted to RMB 1,210.1 million, including cash and cash equivalents of RMB 276.0 million, while current liabilities were RMB 237.8 million[25]. - Interest-bearing bank borrowings increased to RMB 210.3 million as of June 30, 2024, compared to RMB 189.4 million as of December 31, 2023, reflecting a growth of approximately 11.5%[26]. Employee and Compensation - The total employee compensation cost for the six months ended June 30, 2024, was RMB 113.7 million, down from RMB 134.4 million for the same period in 2023, primarily due to a decrease in share-based payment expenses[32]. - The company had a total of 360 employees as of June 30, 2024, with 57.2% in sales, marketing, and management roles[32]. Other Financial Information - Other income decreased by 44.6% from RMB 21.5 million for the six months ended June 30, 2023, to RMB 11.9 million for the six months ended June 30, 2024, primarily due to reduced government subsidies and lower bank interest income[15]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[37]. - The company has not recognized deferred tax assets due to the uncertainty of future taxable profits, which may not offset tax losses[49].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's application for the local anesthetic lidocaine-dinoprost cream has been accepted, indicating progress in its product pipeline [4] - The company reported a significant revenue increase of approximately 123% year-on-year for Q1 2024, reaching about 34.1 million yuan [3] - The company has demonstrated strong commercialization capabilities, with notable performance in its hair care and skin care segments [3] - The company has initiated a share buyback program, reflecting confidence in its future prospects [5] Financial Performance - For Q1 2024, the core product in the hair care segment, the French small white tube, achieved over 60% growth in GMV and turned profitable [3] - The revenue contribution from Tmall, Douyin, and Xiaohongshu for skin care products was 49.2%, 33.3%, and 17.4% respectively, showcasing effective channel expansion [3] - The company’s total revenue is projected to grow from 138 million yuan in 2023 to 279 million yuan in 2024, representing a year-on-year growth of 103% [6] Product Pipeline and Market Potential - The company has several key products in the pipeline, including the lidocaine-dinoprost cream, which is expected to capture a significant share of the compliant market for topical anesthetics in China [4] - Other products such as the external minocycline foam and finasteride spray are anticipated to receive approval between H2 2024 and 2025, further enhancing growth potential [5] - The company’s R&D spending is at a moderate level compared to peers, supporting its growth strategy [4]

Company Overview and Key Points Company Introduction - The management team provided a brief overview of the company's current situation, indicating a focus on engaging with new stakeholders and investors who may be unfamiliar with the company [1] Core Insights - The company emphasized the importance of the upcoming Q&A session, suggesting a commitment to transparency and open communication with investors [1] Additional Important Content - The introduction highlighted the company's affiliation with the technology sector, indicating potential growth opportunities and relevance in a rapidly evolving industry [1]

Summary of Conference Call Company/Industry Involved - The conference call involves Guolian Securities, a financial services company in China Core Points and Arguments - The call was initiated by a researcher from Guolian Securities, indicating a focus on discussing research topics and insights related to the financial market [1] Other Important but Possibly Overlooked Content - No specific financial data, industry trends, or detailed insights were provided in the excerpt [1]

截至2023年12月31日，我們按公平值計入損益的金融資產為人民幣469.3百萬元，較截至2022年12月31日的人民幣 43.5百萬元增加979.0%，主要是由於購買若干產品以將資本回報最大化。 | --- | --- | --- | |--------------------|-----------------------------------------|-------------------------------------| | | 截至 2023 年 12 月 31 日 人民幣千元 | 截至 2022 年 12 月 31 日 人民幣千元 | | | | | | 租賃負債 | 54,344 | 54,128 | | 計息銀行借款 | 189,411 | – | | 可轉換可贖回優先股 | – | 2,570,021 | 截至2023年12月31日，我們的資產負債比率為21.0%，而截至2022年12月31日為186.1%。該下降主要是由於在 2023年6月12日成功進行首次公開發售後，所有可轉換可贖回優先股均已自動轉換為普通股。 截至2023年12月31日，我們有關收購物業、廠房及設備以及其他無 ...

公 司 研 究 2023 年营收超预期，在研管线有望落地贡献增量 投资评级：买入（维持） 事件：2023 年营收同比+1110.8%超市场预期，现金储备充裕 毛发及护肤品管线均实现快速放量，经调整净亏损可控 商业化能力有望持续验证，在研管线有望顺利落地贡献增量 风险提示：研发进度受阻、销售不及预期、费用失控、医疗事故、监管变化。 开 源 证 券 证 券 研 究 报 告 港股公司信息更新报告 -90% -60% -30% 0% 30% 60% 2023-03 2023-07 2023-11 科笛-B 恒生指数 相关研究报告 | --- | --- | |-------------------------|--------------| | 日期 | 2024/3/28 | | 当前股价 ( 港元 ) | 7.890 | | 一年最高最低 ( 港元 ) | 32.600/5.570 | | 总市值 ( 亿港元 ) | 24.04 | | 流通市值 ( 亿港元 ) | 24.04 | | 总股本 ( 亿股 ) | 3.05 | | 流通港股 ( 亿股 ) | 3.05 | | 近 3 个月换手率 (%) | 13. ...

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its performance and growth potential [18]. Core Insights - The company achieved a revenue of 1.38 billion, reflecting a year-on-year increase of 1111%, with Q4 2023 revenue reaching 0.73 billion, up 1051% year-on-year [18]. - The hair care segment generated 0.96 billion in revenue, accounting for approximately 70% of total revenue, with significant contributions from the flagship product, the French small white tube, which represented 73% of hair product sales [18]. - The skincare line contributed 0.41 billion, making up about 30% of total revenue, primarily driven by the addition of the high-efficacy skincare brand, Ouma, in September 2023 [18]. - The company is progressing steadily with its pipeline, with key products expected to receive approval soon, including topical minocycline for acne and topical finasteride for hair loss, which are anticipated to be approved in H2 2024 and 2025, respectively [18]. - The net loss for 2023 was 19.64 billion, largely attributed to one-time factors, including fair value losses on convertible redeemable preferred shares and listing expenses [18]. - The company's stock held by Hong Kong Stock Connect has been increasing, with a notable rise from approximately 2-3% at the beginning of 2024 to 7.1% by March 28, 2024, indicating growing market interest [18]. - The investment recommendation highlights the company's strong revenue performance and the potential for significant contributions from upcoming product approvals [18].