Investment Rating - The report upgrades the investment rating for the company from "Hold" to "Buy" [3][4]. Core Views - The company reported a strong performance in the first half of 2024, with revenue exceeding expectations, driven primarily by the oncology drug segment, which saw a revenue increase of 75.1% year-on-year [2]. - The forecast for revenue and net profit for 2024-2026 has been adjusted upwards due to the strong performance in the oncology segment, with expected revenue growth from 61.6 billion RMB in 2023 to 90.8 billion RMB in 2026, representing a CAGR of 13.8% [2][3]. Summary by Sections Financial Performance - The company's revenue for the first half of 2024 increased by 44.2% to approximately 6.506 billion RMB, with the core pharmaceutical sales rising by 13.8% to 5.1 billion RMB after excluding project prepayments [2]. - The net profit attributable to shareholders surged by 111.5% to 2.73 billion RMB, driven by a 3.0 percentage point increase in gross margin and a 3.5 percentage point decrease in the sales expense ratio [2]. Earnings Forecast - The revenue forecast for 2024 has been raised by 2.2%, while the forecasts for 2025 and 2026 have been slightly lowered by 4.1% and 0.1%, respectively [2]. - The net profit forecasts for 2024, 2025, and 2026 have been increased by 5.5%, 0.1%, and 4.6%, respectively, reflecting the strong growth in the oncology drug segment [2]. Target Price - The target price has been raised to 23.40 HKD, reflecting the upward adjustments in profit forecasts [3][5].

Investment Rating - The report assigns a Neutral rating to the company with a target price of HKD 20.40, indicating a potential upside of 12% from the current price of HKD 18.22 [1][6]. Core Insights - The company's 1H24 revenue and profit exceeded market expectations, leading to an upward revision of the 2024-26 profit forecasts by 12-17% [1]. - The strong performance was driven by a 44% year-on-year revenue growth and a 111% increase in net profit, primarily due to the sales growth of the innovative drug Ameluz [1][2]. - The report highlights that the innovative drug revenue grew by 81%, increasing its share of total revenue from 61.8% in 1H23 to 77.4% in 1H24 [1]. - The company maintains guidance for double-digit growth in non-BD operating revenue for the full year [1]. Financial Forecast Changes - Revenue forecasts for 2024, 2025, and 2026 have been adjusted to RMB 12,637 million, RMB 13,265 million, and RMB 14,630 million respectively, reflecting increases of 2.7%, 2.7%, and 4.3% compared to previous estimates [3]. - Net profit forecasts for the same years have been revised to RMB 4,451 million, RMB 4,040 million, and RMB 4,690 million, showing increases of 11.5%, 15.6%, and 16.7% respectively [3]. - The gross profit margin is expected to remain stable at around 90.5% for 2024, with slight variations in subsequent years [3]. Sales Performance - The oncology line revenue (excluding BD) grew by 24%, with the core product Ameluz expected to achieve over 20% sales growth for the year [2]. - The anti-infection and neurology lines saw revenue increases of 17% and 5% respectively, while the generic drug segment faced a decline of approximately 15% due to competitive pressures [2]. - The company anticipates the launch of several new products in the coming years, including Chitosan and additional indications for Ameluz and other innovative drugs [2].

Investment Rating - The report assigns a "BUY" rating to the company, indicating a potential return exceeding 15% over the next 12 months [15]. Core Insights - The company reported strong growth in innovative drug sales, with a revenue of 6.51 billion RMB in the first half of the fiscal year 2024, including a 185 million USD upfront payment from GSK related to the licensing of HS-20093 [1]. - The innovative drug sales accounted for 77% of total revenue, with a year-on-year growth of 31.6% when excluding collaboration revenue [1]. - The company plans to distribute approximately 40% of its net profit of 2.73 billion RMB as dividends [1]. - The target price for the company's stock has been raised to HK$24.11 from HK$22.06, reflecting a 17% upside from the current price of HK$20.60 [1]. Financial Performance - For FY24E, the company expects total revenue to grow by 21% to 12.23 billion RMB, with organic revenue growth projected at 14.3% and 14.1% for FY24E and FY25E, respectively [3][4]. - The net profit is expected to increase by 33.3% to 4.37 billion RMB in FY24E, followed by a decrease of 25.1% in FY25E [4][12]. - The company has improved cost efficiency, with sales expense ratio decreasing to 33.7% from 37.5% in FY23 [1]. Product Pipeline and Growth Drivers - The company is expanding the indications for aumolertinib, with new drug applications accepted for postoperative adjuvant therapy and maintenance treatment for locally advanced unresectable non-small cell lung cancer [1]. - Aumolertinib's sales are expected to grow by 22% by the end of FY24, reaching 438 million RMB, with a target of 600 million RMB by 2026 [1]. - The company is also advancing its ADC pipeline, with HS-20093 showing promising early signals in clinical trials for small cell lung cancer [3]. Market Position and Competitive Landscape - As an early entrant in the third-generation EGFR-TKI market in China, the company is well-positioned to capture market share with its innovative products [1]. - The company is expected to submit another NDA for aumolertinib in combination with chemotherapy in Q4 2024, differentiating itself from domestic competitors [1]. Valuation Metrics - The report provides a DCF valuation with a target price of HK$24.11, based on a weighted average cost of capital of 8.52% and a terminal growth rate of 3.5% [5][7]. - The company's P/E ratio is projected to be 25.6x for FY24E, reflecting a strong growth outlook [12].

Hansoh Pharma (3692 HK) Strong sales growth of innovative drugs Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding the out-licensing of HS-20093 (B7-H3 ADC). In 1H24, Hansoh recorded RMB5.10bn (+13.8% YoY) revenue from product sales, representing 48% of our previous FY24 estimate, in line with our expectations. In 1H24, 77% of the total revenue came from innovative drugs. Excluding collaboration revenue, the sales ...

Investment Rating - Buy (Maintained) [2] Core Views - The company's 2024 interim results exceeded expectations, driven by significant growth in innovative drug revenue and successful transformation into an innovation-driven growth cycle [2] - The company's revenue and profit surged due to the recognition of a USD 185 million upfront payment from GSK in the first half of the year [2] - Innovative drug revenue grew rapidly, accounting for 77.4% of total revenue in H1 2024, with a year-on-year increase of 80.6% [2] - The company's R&D pipeline is robust, with global strategic布局 and accelerated international BD collaborations, providing long-term support for innovation transformation [2] Financial Performance - H1 2024 total revenue reached RMB 6.506 billion, a year-on-year increase of 44.2%, with net profit of RMB 2.726 billion, up 111.5% year-on-year [2] - Operating income, excluding milestone payments, was RMB 5.103 billion, up 13.83% year-on-year [2] - Revenue breakdown: Oncology (68.8%), CNS (11.3%), Anti-infectives (10.8%), Metabolism & Others (9.1%) [2] R&D and Innovation - Seven approved innovative drugs and nine indications have been included in the national医保目录 [2] - Core product Ameile (阿美替尼) has seen its third and fourth indications for NSCLC NDA accepted in July and August 2024, respectively [2] - The company's R&D pipeline includes领先 global progress in dual-target GLP-1, B7-H4 ADC, and B7-H3 ADC, with total授权金额 exceeding USD 1.7 billion [2] Profit Forecast and Valuation - Forecasted total revenue for 2024-2026: RMB 11.874 billion, RMB 12.714 billion, and RMB 14.827 billion, respectively [2][3] - Forecasted net profit for 2024-2026: RMB 3.524 billion, RMB 3.704 billion, and RMB 4.103 billion, respectively [2][3] - ROE for 2024-2026 is projected at 12.1%, 11.3%, and 11.2%, respectively [3] Stock Data - Closing price on August 28, 2024: HKD 20.60 [4] - Year-to-date high/low: HKD 20.75/HKD 9.43 [4] - Total market capitalization: HKD 122.274 billion [4]

业绩简评 2024 年 8 月 27 日，公司发布中期业绩，1H24,公司营收/归母/扣 非净利润 65.06/27.26/26.84 亿元，同比增长 44.17%/111.47%/ 118.39%。业绩好于预期。 点评 创新药收入占比近八成，ADC 突破，净利润翻倍高增长。（1）业绩： 公司 1H24 营收 65.06 亿元，同比增长 44.2%；其中，创新药及合 作产品销售收入 50.32 亿元，同比增长 80.6%，在公司收入占比从 2023 年的 61.8%上升到 2024 年的 77.4%。创新药中，肿瘤/抗感染 /中枢神经系统/代谢等板块，分别收入 44.75/7.01/7.33/ 5.97 亿元，同比增长 68.8%/10.8%/11.3%/9.1%。（2）ADC（抗体偶 联药物）突破：公司 HS-20089 和 HS20093 两款 ADC 分别在 2023 年 10 月和 12 月，与 GSK（葛兰素史克公司）签订合作协议，分别 获得8500万美元和1.85亿美元首付款及未来数十亿美元里程碑款 和商业化阶段的分级特许使用权费。（3）公司 7 款创新药及其 9 项适应症均已被纳入国家医保目录。 ...

Financial Performance - The company reported revenue of approximately RMB 6.506 billion for the six months ended June 30, 2024, representing a year-on-year growth of approximately 44.2%[2]. - The company's profit was approximately RMB 2.726 billion, reflecting a year-on-year increase of approximately 111.5%[2]. - Basic earnings per share were approximately RMB 0.046, up approximately 111.4% compared to the same period last year[2]. - Gross profit for the same period was RMB 5,926,283 thousand, reflecting a gross margin improvement from 88.0% in 2023 to 91.1% in 2024[35]. - The company achieved a profit before tax of RMB 3,118,186 thousand, up 108.5% from RMB 1,499,883 thousand in the previous year[35]. - Net profit for the period was RMB 2,725,525 thousand, representing a year-on-year increase of 111.0% compared to RMB 1,288,848 thousand[36]. - The total comprehensive income for the period was RMB 2,810,182 thousand, compared to RMB 1,752,778 thousand in the same period of the previous year[36]. - For the six months ended June 30, 2024, the total income tax expense was RMB 392,661,000, compared to RMB 211,035,000 for the same period in 2023, representing an increase of approximately 86%[48]. Revenue Breakdown - Revenue from innovative drugs and collaborative products reached approximately RMB 5.032 billion, an increase of approximately 80.6% year-on-year, accounting for about 77.4% of total revenue[2]. - The company’s revenue from the oncology segment reached approximately RMB 4.475 billion, accounting for about 68.8% of total revenue[7]. - Revenue from central nervous system diseases reached approximately RMB 733 million, accounting for about 11.3% of total revenue[9]. - Revenue from metabolic and other diseases reached approximately RMB 597 million, accounting for about 9.1% of total revenue[10]. - Revenue from product sales amounted to RMB 5,103,080 thousand, up from RMB 4,483,227 thousand, indicating a year-over-year increase of about 13.8%[43]. - Collaborative income surged to RMB 1,402,421 thousand, compared to RMB 27,990 thousand in the previous year, reflecting a dramatic increase of over 4900%[43]. Research and Development - Research and development expenses amounted to approximately RMB 1.196 billion, a year-on-year increase of approximately 28.7%, representing about 18.4% of total revenue[2]. - The company has received approval for seven innovative drugs, all included in the National Medical Insurance Catalogue in China[3]. - The company has over 50 ongoing clinical trials for innovative drugs, covering more than 30 products as of June 30, 2024[22]. - HS-20094, a dual agonist for GLP-1 and GIP receptors, showed good safety and efficacy in reducing blood sugar and weight in type 2 diabetes patients during the 2024 ADA annual meeting[23]. - HS-20093, a B7-H3 targeted ADC, demonstrated strong anti-tumor activity in patients with recurrent or refractory bone and soft tissue sarcoma, surpassing existing standard treatments[24]. - The company has established a comprehensive R&D platform with over 1,700 researchers across four centers in the U.S. and China[21]. Innovative Drug Approvals - In January 2024, the company obtained clinical trial approval for the innovative drug HS-10501, intended for treating type 2 diabetes and adult obesity[3]. - In April 2024, the company entered into a licensing agreement with Jiangsu Quanxin Biopharmaceutical Co., Ltd. for the development and commercialization of HS-20137 monoclonal antibody in China[4]. - The innovative drug Amelot® has been approved for two indications and has been included in the national medical insurance catalog as of January 2023[13]. - The innovative drug Haosenxinfu® is recommended as a first-line treatment for chronic myeloid leukemia in national treatment guidelines[15]. - The innovative drug Fulaimi® is the first domestically developed GLP-1RA weekly formulation, approved for type 2 diabetes treatment[16]. - The innovative drug Hengmu® is the first oral antiviral drug for hepatitis B in China, included in the national medical insurance catalog as of December 2023[17]. - Multiple clinical studies for Hengmu® have demonstrated its long-term efficacy and safety in chronic hepatitis B patients[17]. - Amelot® has multiple ongoing Phase III clinical trials for various indications, including postoperative adjuvant therapy[14]. - The company continues to advance regulatory procedures for Amelot®'s marketing authorization applications in the UK and EU[14]. - The drug Xinyue® (Inalizumab injection) received approval in China in March 2022 and was included in the national medical insurance catalog in January 2023[18]. - Shengluo® (Pemosate injection) was approved for two indications in June 2023, targeting anemia caused by chronic kidney disease, and was included in the national medical insurance catalog in December 2023[19]. Financial Position - As of June 30, 2024, the company had cash and bank deposits totaling RMB 21.745 billion, a decrease from RMB 22.435 billion as of December 31, 2023[30]. - The company's asset-liability ratio was approximately 11.9% as of June 30, 2024, down from 21.9% as of December 31, 2023[30]. - The company has generated a net cash inflow of RMB 2.682 billion from operating activities for the six months ended June 30, 2024[29]. - Capital expenditures during the review period amounted to RMB 306 million, primarily for land use rights, workshop construction, and equipment purchases[29]. - The net asset value as of June 30, 2024, was RMB 27,903,275 thousand, an increase from RMB 25,794,773 thousand as of December 31, 2023, marking a growth of approximately 8.2%[38]. - Total liabilities amounted to RMB 2,410,159,000, an increase from RMB 2,375,680,000 as of December 31, 2023, reflecting a growth of approximately 1.5%[56]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[57][58]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024, in conjunction with external auditors[60]. - The company has confirmed that all directors have complied with the company's code of conduct regarding securities transactions for the six months ended June 30, 2024[59]. - The company has not reported any significant changes or delays in the use of proceeds from fundraising activities as of June 30, 2024[65]. Shareholder Returns - The declared final dividend for 2023 is HKD 0.1422 per share, totaling approximately RMB 768,760,000, compared to RMB 268,852,000 for the final dividend of 2022, reflecting a significant increase[49]. - The interim dividend declared for the six months ended June 30, 2024, is HKD 0.201 per share, up from HKD 0.0707 per share for the same period in 2023, representing an increase of approximately 184.5%[62]. Fundraising and Utilization - The company successfully issued $600 million zero-coupon convertible bonds due in 2026, with net proceeds of approximately $595.65 million allocated for R&D, facility upgrades, and general corporate purposes[66]. - As of June 30, 2024, the company has utilized $591.65 million of the net proceeds, with 65% ($387.17 million) used for R&D expenses, including clinical trials and drug development[67]. - 25% ($148.91 million) of the proceeds were allocated for upgrading and expanding existing production facilities, including R&D facilities[67]. - 10% ($59.57 million) of the proceeds were designated for general corporate purposes, all of which have been fully utilized as of June 30, 2024[67].

Investment Rating - The report initiates a "Buy" rating for Hansoh Pharmaceutical with a target price of HKD 22.06, indicating a potential upside of 28% from the current price of HKD 17.24 [2][4][12]. Core Insights - Hansoh Pharmaceutical has successfully transitioned from a traditional generic drug manufacturer to an innovative biopharmaceutical company, with innovative drug sales reaching RMB 6.87 billion in FY2023, a 37.1% year-on-year increase, accounting for 68% of total revenue [1][8][14]. - The company is expected to continue strong revenue growth driven by its innovative drug portfolio, particularly key assets like Aumolertinib (Ameile), Tenofovir Amibufenamide (Hengmu), and Pegmolesatide (Saintrolai) [1][8][14]. - Hansoh's R&D spending has increased significantly, reaching RMB 21 billion in FY2023, representing 21% of total revenue, with ongoing development of over 50 clinical trials across more than 30 innovative drug products [1][11][62]. Summary by Sections Innovative Drug Growth - Hansoh's innovative drug sales are projected to grow by 37% in FY2024, reaching RMB 9.5 billion, which will constitute 79% of total revenue [2][12][129]. - Aumolertinib is expected to maintain strong sales momentum, particularly after being included in the National Reimbursement Drug List (NRDL) for first-line non-small cell lung cancer (NSCLC) [1][17][36]. Diverse Product Pipeline - The company has a robust pipeline with significant potential in areas such as antibody-drug conjugates (ADCs), GLP-1 receptor agonists, and TYK2 inhibitors, with ongoing clinical trials for multiple indications [1][11][62]. - ADC assets like HS-20093 and HS-20089 have gained global recognition through licensing agreements with GSK, enhancing their development prospects [1][12][120]. Global Collaboration - Hansoh is actively seeking global collaboration opportunities to strengthen its product pipeline, having established various exclusive licensing partnerships with both domestic and international entities [2][12][120]. - The company aims to become a leading platform for biotechnology collaborations in China, leveraging its R&D and commercialization capabilities [2][12][120]. Financial Performance - Total revenue for FY2024 is expected to grow by 19% to RMB 12 billion, with oncology-related sales projected to increase by 25% to RMB 7.7 billion [2][12][129]. - The report anticipates organic revenue growth rates of 12% and 14% for FY2024 and FY2025, respectively, with net profit expected to reach RMB 4.1 billion in FY2024 [2][12][129].

Investment Rating - Buy (First Coverage) [1][4] Core Views - The company is a leading innovation-driven BigPharma in China, with significant potential for international expansion [1] - The company has 8 innovative drugs approved for marketing, all included in the National Reimbursement Drug List, with innovative drug revenue reaching 6.865 billion yuan in 2023, a year-on-year increase of 37.1%, accounting for 67.9% of total revenue [1] - The company aims to increase the contribution of innovative drugs to 80% of total revenue by 2025 [1] - The company has a strong presence in oncology, CNS, anti-infectives, and metabolic diseases, with a robust pipeline of high-value innovative products [1][2] - The company is accelerating its global strategy through international BD collaborations, with significant milestones and licensing deals, such as the $1.85 billion deal with GSK for HS-20093 [2][14] Revenue and Profit Forecast - The company is expected to achieve total revenues of 11.846 billion yuan, 12.658 billion yuan, and 14.728 billion yuan in 2024, 2025, and 2026, respectively [2][4] - Net profits are forecasted to be 3.422 billion yuan, 3.614 billion yuan, and 4.073 billion yuan for the same periods, with corresponding P/E ratios of 28x, 26x, and 23x [2][4] - The company's fair equity value is estimated at 120.5 billion yuan, equivalent to 130.2 billion HKD, based on a DCF valuation with a perpetual growth rate of 2% and WACC of 8.29% [4] Key Therapeutic Areas Oncology - The company has a strong portfolio in oncology, with key products including Ameile (Aumolertinib) and Haosen Xinfu (Flumatinib), generating 6.169 billion yuan in revenue in 2023, accounting for 61.0% of total revenue [1][2] - Aumolertinib, a third-generation EGFR-TKI, is a leading product in the lung cancer market, with ongoing Phase III trials for adjuvant therapy and other indications [19][20] - The company is advancing its ADC pipeline, including HS-20093 (B7-H3 ADC) and HS-20089 (B7-H4 ADC), with significant global licensing deals with GSK [14][26][27] Central Nervous System (CNS) - The company has a long-standing advantage in CNS, with products like Inebilizumab (Xinyue), the only CD19 monoclonal antibody approved for NMOSD treatment [31][32] - HS-10380, targeting schizophrenia, is in Phase Ib/II clinical trials, with potential to address unmet needs in the mental health market [33][34] Anti-Infectives - The company has two self-developed innovative drugs in the anti-infective field: Hengmu (Ainuovirine) and Mailingda (Morinidazole) [35][36] - Ibrexafungerp, a fourth-generation antifungal drug, is under review for domestic approval, with potential to address recurrent vulvovaginal candidiasis (RVVC) [39][40] Metabolic and Other Diseases - The company has launched Fulaimei (Pegylated Loxenatide) and Shengluolai (Peginesatide), with HS-20094, a GLP-1/GIP dual agonist, in Phase II clinical trials for diabetes and obesity [40][41] - HS-10374, a TYK2 inhibitor, is in Phase II trials, positioning the company as a global leader in this therapeutic area [43][44] - HS-10390, an ETA/AT1 dual receptor antagonist, is in Phase I trials for FSGS and IgA nephropathy, with potential to address unmet needs in renal diseases [45][46]

Financial Performance - The company's revenue for 2023 reached RMB 10,103.8 million, an increase from RMB 9,382.4 million in 2022, representing a growth of approximately 7.7%[15]. - The net profit for 2023 was RMB 3,277.5 million, up from RMB 2,583.7 million in 2022, indicating a growth of about 27%[15]. - Earnings per share were approximately RMB 0.55, reflecting a year-on-year increase of about 26.6%[18]. - The total comprehensive income for the year reached RMB 3,705,424 thousand in 2023, compared to RMB 3,216,633 thousand in 2022, reflecting an increase of about 15.2%[155]. - The company reported a total comprehensive income of RMB 3,705,424 thousand for 2023, compared to RMB 3,216,633 thousand in 2022, reflecting overall financial health[152]. Sales and Revenue Composition - The company achieved sales revenue of approximately RMB 6.865 billion from innovative drugs and collaborative products, accounting for about 67.9% of total revenue, driving sustainable growth[3]. - Revenue from the oncology segment reached approximately RMB 6.169 billion, accounting for about 61.0% of total revenue[19]. - The anti-infection segment generated revenue of approximately RMB 1.269 billion, representing about 12.6% of total revenue[19]. - The central nervous system disease segment recorded revenue of approximately RMB 1.367 billion, accounting for about 13.5% of total revenue[19]. - The metabolic and other segments achieved revenue of approximately RMB 1.299 billion, making up about 12.9% of total revenue[19]. Research and Development - The company has over 30 innovative drug projects in various therapeutic areas, with several products currently in critical registration clinical trials[16]. - The company's R&D expenses for 2023 were RMB 2,097.0 million, compared to RMB 1,693.3 million in 2022, reflecting a commitment to innovation[15]. - The company has launched eight innovative drugs into clinical trials for the first time in 2023, targeting various conditions including kidney disease and depression[30]. - The company aims to continue enhancing innovation and accelerating the commercialization of research and development outcomes to meet unmet medical needs[45]. - The company is committed to research and development in innovative drugs, leveraging the expertise of its senior management team[137]. Clinical Trials and Approvals - Six new products were approved for market launch during the reporting period, including one innovative drug with two approved indications[3]. - The company received clinical trial approval for the innovative drug HS-10390, intended for treating focal segmental glomerulosclerosis and IgA nephropathy[4]. - The innovative drug HS-10506, aimed at treating depression and insomnia, received clinical trial approval in May 2023[5]. - The innovative drug HS-10518, intended for treating endometriosis-related pain, received clinical trial approval in June 2023[5]. - The company has submitted 23 new drug applications and obtained clinical approvals for ten innovative drugs during the reporting period[3]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[46]. - The board consists of three executive directors and three independent non-executive directors[48]. - The board has established five specialized committees, including the Audit Committee and the Remuneration Committee, to oversee specific aspects of the company's affairs[48]. - The company has implemented a three-year service contract for each executive director and a three-year appointment letter for each independent non-executive director[54]. - The company has established appropriate liability insurance for directors, which is reviewed annually[48]. Environmental, Social, and Governance (ESG) - The company was rated AA in the latest MSCI ESG rating report and ranked in the top 1% of the industry in the S&P Global Sustainability Yearbook 2023[7]. - The company aims to achieve carbon neutrality by 2055 and has enhanced its 2030 environmental goals, including quantitative targets for energy savings and pollutant reduction[38]. - The company won several awards, including the China Patent Gold Award for its innovative drug Amatinib and the 2023 ESG Corporate Award Gold Medal from The Asset[38]. - The company has a strong focus on environmental, social, and governance (ESG) initiatives, with Dr. Lu leading the ESG committee[132]. - The Environmental, Social, and Governance Committee held two meetings to review and identify key ESG issues and to develop response measures for climate change risks[64]. Shareholder Information - The company reported a proposed final dividend of HKD 0.1422 per share for the year ending December 31, 2023, compared to HKD 0.05 in 2022, resulting in a total annual dividend of HKD 0.2129 per share[82]. - The company has a distributable reserve of RMB 14,095,522,000 as of December 31, 2023, compared to RMB 13,931,541,000 in 2022[93]. - The company will suspend share transfer registration from June 7 to June 13, 2024, to determine the rights of shareholders attending the annual general meeting[85]. - The company will also suspend share transfer registration from June 21 to June 25, 2024, to determine eligibility for the proposed final dividend[85]. - The company has maintained a minimum public float of 16.21% as accepted by the stock exchange[114]. Financial Position - The total assets of the company as of 2023 amounted to RMB 33,039.1 million, compared to RMB 30,001.9 million in 2022, marking an increase of approximately 6.8%[15]. - The total liabilities of the company in 2023 were RMB 7,244.3 million, slightly down from RMB 7,354.9 million in 2022[15]. - The company's asset-liability ratio was approximately 21.9% as of December 31, 2023, down from 24.5% a year earlier[40]. - Cash and bank balances reached RMB 22,434,691 thousand, significantly higher than RMB 17,615,274 thousand in 2022, indicating strong liquidity[153]. - The total equity attributable to equity holders of the parent increased to RMB 25,794,773 thousand in 2023 from RMB 22,646,944 thousand in 2022, demonstrating strong shareholder value growth[154]. Investments and Financing - The company issued a total of 20,304,400 restricted share units during the reporting period, with 52,290,594 units available for future grants as of December 31, 2023[44]. - The company issued $600 million zero-coupon convertible bonds due in 2026, with net proceeds of approximately $595.65 million allocated primarily for R&D expenses, facility upgrades, and general corporate purposes[88]. - The company raised approximately HKD 3.477 billion from a placement of 130,380,000 shares at HKD 26.75 per share, with HKD 934.17 million already utilized for R&D projects as of December 31, 2023[90]. - The company incurred approximately RMB 229 million in business development (BD) project expenses, while receiving a BD licensing fee of USD 85 million from GSK[33]. - The company entered into licensing agreements with GSK for HS-20089 and HS-20093, receiving upfront payments of USD 85 million and USD 185 million respectively, with potential milestone payments of up to USD 1.485 billion and USD 1.525 billion[34].