Investment Rating - The report initiates coverage with an "Outperform" rating for Shanghai Pharmaceuticals [4][66]. Core Views - Shanghai Pharmaceuticals is a leading pharmaceutical distributor in China, with strong capabilities in both pharmaceutical distribution and manufacturing. The company achieved sales of RMB 260.3 billion in 2023, representing a year-on-year growth of 12.2% [63][64]. - The pharmaceutical distribution segment is expected to benefit from innovative services and increasing industry concentration, with a projected revenue CAGR of 9.0%-13.7% for leading companies, significantly outpacing the industry average of 6.6% [64][66]. - The pharmaceutical manufacturing segment is anticipated to experience growth driven by traditional Chinese medicine (TCM) rebranding and innovative drugs, with a stable cash flow from generic drugs [65][66]. Summary by Sections 1. Chinese Pharmaceutical Distribution Market - The market size reached RMB 27,516 billion in 2022, with a CAGR of 6.6% from 2017 to 2022. The market is characterized by strong consumer demand and a trend towards consolidation among leading companies [7][8]. - The concentration ratio of the top four companies in the market increased from 37.6% in 2017 to 45.5% in 2022, indicating a strong trend of "the rich getting richer" [11][12]. 2. Shanghai Pharmaceuticals Overview - Shanghai Pharmaceuticals operates in two main segments: pharmaceutical distribution and manufacturing. In 2023, the distribution revenue was RMB 233.8 billion, accounting for 89.8% of total revenue [18][20]. - The company has a robust distribution network covering over 31 provinces and municipalities in China, serving more than 32,000 medical institutions [20]. 3. Pharmaceutical Distribution - The distribution segment is expected to maintain high growth due to innovative services, including a significant partnership with Sanofi worth over RMB 5 billion [21][64]. - The company aims to enhance its market share through both organic growth and acquisitions, leveraging its strong logistics network [24][28]. 4. Pharmaceutical Manufacturing - The manufacturing segment is set to benefit from the launch of innovative drugs, with three innovative drugs already on the market and 68 projects in clinical stages as of 2023 [65][66]. - The TCM segment is implementing a "Big Brand + Big Product" strategy, which is expected to drive revenue growth through rebranding and multi-channel sales [37][65]. 5. Financial Forecast and Valuation - Revenue projections for FY24-26 are RMB 284.8 billion, RMB 311.6 billion, and RMB 340.4 billion, respectively, indicating a three-year CAGR of 9.4% [66]. - The target price for the stock is set at HKD 14.54, based on a DCF model with a WACC of 6.2% and a perpetual growth rate of 3% [66].

Investment Rating - Initiation coverage with an "Outperform" rating and a target price of HKD 14.54 [4] Core Investment Thesis - Shanghai Pharmaceuticals (SH Pharma) is a leading pharmaceutical distributor in China, with dual engines of pharmaceutical distribution and drug manufacturing [2] - The company achieved RMB 260.3 billion in revenue in 2023, a 12.2% YoY growth, with distribution and industrial revenues of RMB 233.8 billion and RMB 26.3 billion respectively [2] - The pharmaceutical distribution business is expected to benefit from innovative services in the short term and industry consolidation in the long term, with the top 4 players holding a 45.5% market share in 2022 [2] - The pharmaceutical manufacturing business is entering a harvest period, driven by traditional Chinese medicine (TCM) brand revitalization and innovative drug pipelines [3] Pharmaceutical Distribution Business - Short-term growth is driven by innovative services, including a RMB 5 billion+ collaboration with Sanofi and comprehensive lifecycle management services for innovative drugs [2] - Long-term growth is supported by market share gains through organic growth and M&A, with the top 4 players' market share increasing from 37.6% in 2017 to 45.5% in 2022 [2] - The CSO business is expected to see explosive growth in 2024, with Q1 2024 revenue surging 128% YoY to RMB 1.7 billion [24] - The company has a strong logistics network covering 31 provinces and serves over 32,000 medical institutions [23] Pharmaceutical Manufacturing Business - The TCM segment is a key growth driver, with a "big brand + big product" strategy driving a 10.3% YoY revenue growth to RMB 9.82 billion in 2023 [43] - The innovative drug pipeline includes 68 clinical projects, with 3 drugs already launched and 3 more expected to be approved by 2025 [39] - The generic drug segment is expected to face short-term pressure in 2024 but will provide stable cash flow from 2025 onwards [46] Financial Performance and Valuation - Revenue is expected to grow at a 9.4% CAGR from FY24 to FY26, reaching RMB 340.4 billion in FY26 [4] - Net profit attributable to shareholders is forecasted to be RMB 5.17 billion, RMB 5.67 billion, and RMB 6.28 billion in FY24-26 respectively [4] - The current valuation implies a FY24/FY25 P/E of 7.7x/7.0x [4] Industry Overview - China's pharmaceutical distribution market reached RMB 27.5 trillion in 2022, with a 6.6% CAGR from 2017 to 2022 [6] - The market is characterized by increasing concentration, with the top 4 players' market share rising from 37.6% in 2017 to 45.5% in 2022 [12] - The industry is expected to continue its steady growth, driven by China's aging population and increasing healthcare expenditure [10]

（於中華人民共和國註冊成立的股份有限公司） （股份代碼：02607） 2024年第一季度報告 本公告乃根據證券及期貨條例（香港法例第571章）第XIVA部及香港聯合交易所有限公司 證券上市規則第13.09條而發表。 以下為上海醫藥集團股份有限公司2024年第一季度報告，其所載財務報告根據中國企業 會計準則編製，並且未經審計。 承董事會命 上海醫藥集團股份有限公司 楊秋華 董事長 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，概不對因本公告全部或任何部份內容 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。 上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd. * 中國上海，二零二四年四月二十六日 於本公告日期，本公司的執行董事為楊秋華先生、沈波先生、李永忠先生及董明先生； 非執行董事為陳發樹先生；以及獨立非執行董事為顧朝陽先生、霍文遜先生及王忠先生。 * 僅供識別 - 1 - 本公司董事會及全體董事保證本公告內容不存在任何虛假記載、誤導性陳述或者重大遺 漏，並對其內容的真實 ...

(於中華人民共和國註冊成立的股份有限公司) (H股股份代號：02607) (A股股份代號：601607) 上海醫藥集團股份有限公司 年度報告 2023 * 僅供識別 www.sphchina.com 上海醫藥集團股份有限公司 年年度報告 2023 上海醫藥集團股份有限公司 我們的願景 成為受人尊敬、擁有行業美譽度的領先品牌藥製造商 和健康領域服務商 我們的使命 持之以恆，致力於提升民眾的健康生活品質 我們的核心價值觀 創新、誠信、合作、包容、責任 | 目錄 | | | | --- | --- | --- | | 第一節 | 釋義 | 2 | | 第二節 | 企業資料 | 7 | | 第三節 | 財務摘要 | 9 | | 第四節 | 致股東函 | 10 | | 第五節 | 管理層討論與分析 | 13 | | 第六節 | 董事會報告 | 45 | | 第七節 | 董事、監事及高級管理層情況 | 74 | | 第八節 | 企業管治報告 | 86 | | 第九節 | 財務報表及審計報告 | 97 | 在本報告書中，除非文義另有所指，下列詞語具有如下含義： 常用詞語釋義 | 「本集團」、「集團」、 | 指 | 上海醫藥 ...

Investment Rating - The report maintains a "Buy" rating for Shanghai Pharmaceuticals-A with a target price of RMB 22.37, down from the previous target of RMB 23.63, indicating a potential upside of 27% from the current price of RMB 17.62 [1][6][14]. Core Insights - The company experienced steady revenue growth in 2023, achieving revenue of RMB 263 billion, a year-on-year increase of 12%. However, the net profit of RMB 3.768 billion fell short of expectations, declining by 33% year-on-year [1][2]. - The pharmaceutical distribution segment showed strong performance with revenue of RMB 233.76 billion, up 14% year-on-year, while the pharmaceutical manufacturing segment saw a slight decline in revenue [1][2]. - The innovative drug pipeline is entering a harvest phase, with several new drugs in various stages of clinical trials and applications [2][14]. Financial Summary - In 2023, the company reported a net profit of RMB 3.768 billion, down 33% from the previous year, with a corresponding EPS of RMB 1.02, a decrease of 35% [1][8]. - The operating cash flow for 2023 was RMB 5.232 billion, reflecting a 10% increase year-on-year [1][8]. - The report forecasts a compound annual growth rate (CAGR) for revenue and net profit of 11% and 19%, respectively, from 2023 to 2026 [1][2]. Segment Performance - The pharmaceutical distribution segment generated revenue of RMB 233.76 billion, with a gross margin of 6.3%, down 0.27 percentage points year-on-year [1][9]. - The pharmaceutical manufacturing segment reported revenue of RMB 26.26 billion, a decrease of 2% year-on-year, with a gross margin of 58.5% [2][9]. - The retail segment achieved revenue of RMB 9.11 billion, up 10% year-on-year, but with a declining gross margin of 12.0% [9]. Earnings Forecast Adjustments - Due to lower-than-expected performance in 2023, the report has revised down the earnings forecasts for 2024 and 2025, with EPS estimates adjusted to RMB 1.56 and RMB 1.66, representing decreases of 18% and 19% respectively [3][11][13].

Financial Performance - Shanghai Pharmaceuticals reported a revenue of RMB 100 billion for the fiscal year 2023, representing a year-on-year growth of 15%[3]. - The company achieved a net profit of RMB 8 billion, which is an increase of 10% compared to the previous year[3]. - In 2023, Shanghai Pharmaceuticals reported a revenue of RMB 260,295,089 thousand, representing a year-on-year increase of 12.2% from RMB 231,981,300 thousand in 2022[23]. - The company's profit before tax for 2023 was RMB 7,054,297 thousand, a decrease of 20% compared to RMB 8,808,353 thousand in 2022[23]. - The net profit attributable to the owners of the company for 2023 was RMB 3,768,000 thousand, a decline from RMB 5,617,152 thousand in 2022, representing a decrease of 32.9%[23]. - The gross margin for the year was reported at 40%, maintaining stability compared to the previous year[3]. - The company reported a significant increase in other income, which rose by 101.43% to ¥793.16 million, primarily due to increased government subsidies[95]. - The company's operating revenue for the reporting period reached ¥260.30 billion, an increase of 12.21% compared to ¥231.98 billion in the same period last year[95]. - Operating costs rose to ¥228.97 billion, reflecting a 13.63% increase from ¥201.49 billion, driven by higher sales revenue[95]. Market Expansion and Product Development - Shanghai Pharmaceuticals plans to launch three new products in 2024, targeting a market expansion of 25% in the healthcare sector[3]. - The company aims to expand its market presence in Southeast Asia, with a projected growth rate of 30% in that region[3]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of RMB 2 billion allocated for potential mergers[3]. - The company has 68 new drug pipelines in various stages, including 55 innovative drugs and 13 modified new drugs, with 3 innovative drugs submitted for pre-NDA or market application[40]. - The company has 16 ongoing projects in its rare disease platform, focusing on innovative drugs and urgently needed medications[75]. - The company is actively developing I001 for inflammatory bowel disease and diabetic nephropathy, with ongoing patient recruitment[47]. - The company has completed the enrollment for Phase II clinical trials of B013, a new drug for triple-negative breast cancer, with good safety results reported[51]. - The company has 6 projects in Phase III clinical trials, including BCD-100 for cervical cancer and non-small cell lung cancer[42]. Research and Development - The company has invested RMB 1.5 billion in R&D for new technologies, focusing on innovative drug development[3]. - Research and development investment totaled RMB 2.602 billion, with R&D expenses of RMB 2.204 billion, a year-on-year increase of 4.35%[37]. - The total R&D investment for the period amounted to RMB 260,226,000, representing 9.91% of operating revenue[106]. - The company aims to enhance its R&D capabilities by building high-quality teams and establishing open R&D platforms in collaboration with universities and research institutions[132]. - The company is increasing R&D investment and optimizing innovation resource allocation to enhance its competitive edge in innovative drug development[135]. Corporate Social Responsibility and Governance - The company emphasized its commitment to corporate social responsibility, aiming to improve public health quality through various initiatives[3]. - The company’s ESG efforts have been recognized with an AA rating from MSCI and Wind, placing it among the leading peers in the industry[73]. - The company aims to enhance corporate governance and retain talent through the stock option incentive plan, aligning the interests of management with the long-term development of the company[173]. Strategic Partnerships and Collaborations - The company established strategic partnerships with Shanghai Jiao Tong University and China Pharmaceutical University to enhance its innovation capabilities in drug research[27]. - The company has formed a strategic partnership with Sanofi for nationwide multi-channel cooperation, showcasing its strength as China's largest drug and medical device import and export platform[29]. - The company has completed the acquisition of Hunan Runji Pharmaceutical and Zhengda Tianqing's commercial segment, expanding its domestic pharmaceutical distribution network[63]. International Development - The company is actively expanding its international business, with steady growth in international revenue and substantial progress in product registrations[62]. - The company has made significant progress in the Philippines market, with the registration of Rosuvastatin Calcium Tablets and two other products approved for pre-review[64]. - The company plans to accelerate its international development, focusing on generic drugs and innovative drug layouts, while seeking overseas acquisition opportunities[132]. Stock Options and Incentive Plans - The stock option incentive plan approved in December 2019 involved granting 25,600,000 stock options to 210 incentive targets[168]. - The company aims to enhance corporate governance and retain talent through the stock option incentive plan, aligning the interests of management with the long-term development of the company[173]. - The total number of A-share stock options granted under the incentive plan is 24,355,720 shares, which does not exceed 1% of the company's total issued shares as of the report date[177]. - The exercise price for the stock options granted under the incentive plan is set at RMB 18.41 per A-share[183]. - The stock options granted under the incentive plan have a maximum validity period of 60 months from the grant registration date[185].

Financial Performance - Shanghai Pharmaceuticals reported a revenue of RMB 100 billion for the fiscal year 2023, representing a year-on-year growth of 15%[3] - The company achieved a net profit of RMB 10 billion, an increase of 20% compared to the previous year[3] - In 2023, Shanghai Pharmaceuticals reported a revenue of RMB 260,295,089 thousand, representing a year-on-year increase of 12.2% from RMB 231,981,300 thousand in 2022[23] - The company's profit before tax for 2023 was RMB 7,054,297 thousand, a decrease of 20% compared to RMB 8,808,353 thousand in 2022[23] - The net profit attributable to the owners of the company for 2023 was RMB 3,768,000 thousand, down from RMB 5,617,152 thousand in 2022, a decline of 32.9%[23] - The net profit attributable to shareholders was RMB 3.768 billion, a year-on-year decrease of 32.92%, but the net profit excluding one-time special gains was RMB 4.919 billion, a year-on-year increase of 2.99%[36] - The company maintained a net cash inflow from operating activities of RMB 5.232 billion, a year-on-year increase of 10.29%[39] - The company's operating revenue for the reporting period reached ¥260.30 billion, an increase of 12.21% compared to ¥231.98 billion in the previous year[96] - Operating costs rose to ¥228.97 billion, reflecting a 13.63% increase from ¥201.49 billion, driven by higher sales revenue[96] Research and Development - The company has allocated RMB 1 billion for research and development in new technologies, focusing on biopharmaceuticals[3] - Shanghai Pharmaceuticals has made significant investments in R&D for innovative drugs, with breakthroughs in multiple clinical stages for biopharmaceuticals, chemical drugs, traditional Chinese medicine, and rare disease medications[27] - Research and development investment totaled RMB 2.602 billion, with R&D expenses of RMB 2.204 billion, reflecting a year-on-year increase of 4.35%[38] - The total R&D investment for the period amounted to RMB 260,226,000, representing 9.91% of operating revenue[107] - The company has a total of 1,666 R&D personnel, accounting for 3.46% of the total workforce[107] - The company aims to enhance its R&D capabilities by building high-quality teams and establishing open R&D platforms with domestic universities and research institutions[133] Market Expansion and Strategy - Shanghai Pharmaceuticals plans to launch three new products in 2024, targeting a market expansion of 30% in the oncology segment[3] - Market expansion efforts include entering two new international markets, aiming for a 10% contribution to total revenue by 2025[3] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of RMB 2 billion for potential deals[3] - The company aims to enhance its international influence and is committed to improving public health quality through strategic investments and acquisitions[31] - The company is actively expanding into international markets and plans to accelerate the launch of key new products as part of its market strategy[136] Product Development and Pipeline - The company has 68 new drug pipelines in various stages, including 55 innovative drugs and 13 improved new drugs, with 3 innovative drugs submitted for pre-NDA or listing applications[41] - The NDA application for the I001 project, targeting primary mild to moderate hypertension, was accepted in June 2023, with a market potential in China's antihypertensive drug market valued at CNY 23.46 billion in 2023[48] - The NDA application for the X842 project, a new generation potassium competitive acid blocker for reflux esophagitis, was accepted in February 2023, with the traditional PPI market sales reaching CNY 13 billion in 2022[49] - The I037 project, a new drug for acute ischemic stroke, completed Phase I clinical trials and received Phase II trial approval in September 2022, with the market size for cerebrovascular and peripheral vascular treatment drugs at CNY 17.7 billion in 2023[51] - The company has 7 projects in clinical application that have been accepted, including 4 that have received clinical approval[43] Corporate Governance and Shareholder Information - The company plans to distribute a cash dividend of RMB 4.10 per 10 shares, totaling approximately RMB 1.52 billion, which represents 40.30% of the net profit attributable to shareholders for the year[141] - The company maintains a stable profit distribution policy, ensuring that cash dividends over the last three years account for at least 30% of the average distributable profit[145] - The top five customers contributed RMB 1.47 billion, accounting for 5.66% of total annual sales, while the top five suppliers accounted for RMB 2.39 billion, or 10.42% of total annual purchases[150] - The top ten shareholders at the end of the reporting period include Shanghai Pharmaceutical Group holding 716,516,039 shares (19.35%) and Yunnan Baiyao holding 665,626,796 shares (17.97%) [160] Quality and Compliance - The company received 27 national quality awards and 112 provincial and municipal quality awards, highlighting its commitment to quality management[30] - The company has completed the consistency evaluation for a total of 60 products, ranking among the industry leaders[56] - The company aims to enhance the quality and efficacy consistency of generic drugs and original research drugs through improved quality standards[85] Environmental, Social, and Governance (ESG) - The company has received AA ratings in ESG assessments from both MSCI and Wind, indicating strong performance in environmental, social, and governance practices[74] Challenges and Risks - The company has identified risks related to geopolitical and economic conditions that may impact international trade and investment in the short term[136] - The company has proposed proactive measures to mitigate potential risks that could affect overall business operations[136] Manufacturing and Operations - The company is enhancing its manufacturing capabilities, with the completion of the first biopharmaceutical project and the establishment of a continuous manufacturing model[62] - The company aims to enhance its manufacturing system to improve supply, quality, cost reduction, and efficiency[135] - The company is focusing on integrating the pharmaceutical value chain, creating synergies across manufacturing, distribution, and retail[88]

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，概不對因本公告全部或任何部份內容 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。 上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：02607) 2023年第三季度報告 本公告乃根據證券及期貨條例（香港法例第571章）第XIVA部及香港聯合交易所有限公司 證券上市規則第13.09條而發表。 以下為上海醫藥集團股份有限公司2023年第三季度報告，其所載財務報告根據中國企業 會計準則編製，並且未經審計。 承董事會命 上海醫藥集團股份有限公司 周軍 董事長 中國上海，二零二三年十月二十八日 於本公告日期，本公司的執行董事為沈波先生、李永忠先生及董明先生；非執行董事為 周軍先生、姚嘉勇先生及陳發樹先生；以及獨立非執行董事為顧朝陽先生、霍文遜先生 及王忠先生。 * 僅供識別 - 1 - 本公司董事會及全體董事保證本公告內容不存在任何虛假記載、誤導性陳述或者重大遺 漏，並對其內 ...

2023 中 期 報 告 上海醫藥集團股份有限公司 (於中華人民共和國註冊成立的股份有限公司) (H股股份代號：02607) (A股股份代號：601607) * 僅供識別 上海醫藥集團股份有限公司 www.sphchina.com 中期報告 上海醫藥集團股份有限公司 重要提示 本報告中所涉及的未來計劃、發展戰略等前瞻性描述不構成公司對投資者的實質承諾，敬請投資者注意投資風險。 報告期內，不存在對公司生產經營產生實質性影響的特別重大風險。公司已在本報告中詳細闡述公司在生產經營過程中可 能面臨的各種風險及應對措施，敬請查閱第三節管理層討論與分析中「可能面對的風險」。 一、 本公司董事會、監事會及董事、監事、高級管理人員保證半年度報告內容的真實性、準確性、完整性，不存在虛假記載、 誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、 公司全體董事出席董事會會議。 三、 本半年度報告未經審計。 四、 公司負責人周軍、主管會計工作負責人沈波及會計機構負責人（會計主管人員）沈波聲明：保證半年度報告中財務報告的真 實、準確、完整。 五、 董事會決議通過的本報告期利潤分配預案或公積金轉增股本預案 無 六、 前瞻性陳述的風 ...

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，概不對因本公告全部或任何部份內容 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。 上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） （股份代碼：02607) 截至2023年6月30日六個月未經審計中期業績公告 上海醫藥集團股份有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 （合稱「本集團」）截至2023年6月30日六個月的中期業績。該中期業績乃根據中國企業會 計準則編製，未經審計。董事會及審計委員會已審閱並確認此中期業績。 本公司截至2023年6月30日六個月的中期報告全文附於本公告後，並在香港聯合交易所有 限公司的網站(www.hkexnews.hk)和本公司網站(www.sphchina.com)刊登。中期報告的印 刷本將於適當時候派發給本公司股東。 承董事會命 上海醫藥集團股份有限公司 周軍 董事長 中國上海，二零二三年八月三十日 ...