今日港股回调，创新药再度逆市上涨！港股通创新药ETF（159570）强势大涨近3%，成交额继续爆量，盘中成交近5亿元！上周五成交额再度刷新历史，天 量成交16.49亿元！资金持续乐观，上周累计获资金净流入近2亿元，今日盘中再获净申购4300万份！ 港股通创新药ETF（159570）成分股多数飘红：乐普生物涨超12%，百济神州涨超5%，信达生物涨超3%，晶泰控股涨超2%，康方生物、药明生物、科伦博 泰生物涨超1%。 资金狂涌创新药，港股通创新药ETF（159570）近60日"吸金"近10亿元，融资余额保持历史高位，反映杠杆资金布局意愿！最新规模19.27亿元创上市新 高，1个月实现规模翻倍！ 【机构：医药见底回暖，创新药主线强化】 光大证券认为，医药行情见底回暖，优化集采政策有望稳定资产盈利能力。近期，医药行情整体已显现见底回暖迹象，从2025.1.2~2025.3.27期间，港股创 新药指数上涨26.28%，跑赢恒生科技1.20pp。2025年工作报告提出"优化药品集采政策"，有望优化产业竞争环境，仿制药利润压缩接近尾声，竞争格局趋于 稳定，龙头白马企业凭借技术壁垒与产能优势，盈利能力有望企稳。后集采时代，行 ...

Investment Rating - The investment rating for the company is "Buy" with a target price of 18.59 HKD [8][9]. Core Views - The company is expected to achieve a revenue of 13.759 billion RMB in 2024, a slight increase of 0.1% year-on-year, and a net profit of 2.660 billion RMB, a decrease of 1.5% year-on-year, primarily due to seasonal factory maintenance in the second half of 2024 [1]. - The company has entered a significant partnership with Novo Nordisk for the overseas development and commercialization rights of UBT251, marking a milestone in GLP-1 related transactions in China [2]. - The diabetes segment is projected to grow steadily in 2025, driven by existing product demand and new product launches [2]. - The intermediate segment achieved sales of 2.659 billion RMB in 2024, a 15% year-on-year increase, supported by stable pricing and export opportunities [3]. - The animal health segment saw a 17% year-on-year increase in revenue in 2024, with expectations for accelerated growth in 2025 due to new product launches and partnerships [4]. - The company anticipates a rapid increase in net profit in 2025, supported by the confirmation of UBT251's upfront payment [5]. Summary by Sections Financial Performance - The company forecasts revenues of 14.945 billion RMB in 2025, with a year-on-year growth of 8.62% [7]. - The net profit is expected to rise to 4.146 billion RMB in 2025, reflecting a 55.87% increase year-on-year [7]. - The EPS for 2025 is projected at 2.28 RMB, with a PE ratio of 7.5x [5]. Business Segments - The diabetes segment is expected to generate 1.248 billion RMB in revenue in 2024, a 9.5% increase year-on-year, with further growth anticipated in 2025 [2]. - The intermediate segment's revenue is projected to remain stable in 2025, supported by controlled pricing and export opportunities [3]. - The animal health segment is expected to see significant growth in 2025 due to new product launches and collaborations with industry leaders [4]. Valuation - The target price of 18.59 HKD is based on a PE ratio of 7.5x for 2025, compared to a comparable company average of 9x [5].

Group 1 - Federal Pharmaceutical (03933) shares rose over 10%, reaching HKD 15.32 with a trading volume of HKD 450 million [1] - The company announced an exclusive licensing agreement with Novo Nordisk for UBT251, retaining rights in China while granting global rights (excluding mainland China, Hong Kong, Macau, and Taiwan) to Novo Nordisk [1] - Federal Biotech will receive an upfront payment of USD 200 million and up to USD 1.8 billion in potential milestone payments, along with tiered sales royalties based on annual net sales outside of China [1] Group 2 - Federal Pharmaceutical reported a revenue of approximately RMB 13.759 billion for 2024, a year-on-year increase of 0.1%, while net profit attributable to shareholders was about RMB 2.66 billion, a decrease of 1.5% [2] - The company proposed a final dividend of HKD 0.28 per share and a special dividend of HKD 0.12 per share [2] - Due to expected short-term pressure on the sales of intermediates, raw materials, and antibiotics, revenue forecasts for 2025-2026 were adjusted downwards by 8.9% and 12.3% respectively, although the company anticipates receiving the USD 200 million upfront payment from Novo Nordisk in 2025 [2]

Financial Performance - The total revenue for the year 2024 was approximately RMB 13,758.9 million, showing a slight increase of 0.1% compared to 2023[3]. - The profit attributable to the company's owners for the year was RMB 2,659.7 million, reflecting a decrease of 1.5% year-on-year[4]. - The basic earnings per share for the year were RMB 146.39, down 1.5% from the previous year[3]. - Gross profit decreased to RMB 6,082,391 thousand in 2024 from RMB 6,334,837 thousand in 2023, reflecting a decline of about 3.98%[13]. - The company reported a net profit of RMB 2,657,821 thousand for 2024, down from RMB 2,700,845 thousand in 2023, indicating a decrease of approximately 1.6%[13]. - The revenue breakdown for 2024 includes RMB 2,658,691 thousand from intermediate products, RMB 6,372,683 thousand from active pharmaceutical ingredients, and RMB 4,727,563 thousand from formulation products[30]. - The segment profit before R&D expenses for 2024 was RMB 4,009,219 thousand, compared to RMB 4,112,034 thousand in 2023, indicating a decrease of about 2.5%[30][32]. - R&D expenses for 2024 totaled RMB 890,757 thousand, an increase from RMB 757,248 thousand in 2023, reflecting a rise of approximately 17.6%[34]. - The company reported a pre-tax profit of RMB 3,288,898 thousand for 2024, compared to RMB 3,344,148 thousand in 2023, showing a decrease of about 1.65%[32]. - The total other income for 2024 was RMB 356,929 thousand, significantly higher than RMB 212,475 thousand in 2023, representing an increase of about 67.9%[33]. - The company’s external customer revenue from the Chinese market was RMB 11,115,585 thousand in 2024, slightly down from RMB 11,124,265 thousand in 2023, a decrease of about 0.08%[32]. - The company’s net profit attributable to shareholders was RMB 2,659,700,000, a decrease of 1.5% year-on-year, with earnings per share at RMB 146.39[62]. - The company’s formulation product segment saw a significant profit decline of 47.0%, primarily due to price reductions from national drug procurement policies[62]. Dividends and Shareholder Returns - The company declared a total annual dividend of RMB 56.0 per share, representing a 7.7% increase compared to the previous year[3]. - The total dividend declared for 2024 was RMB 726,733,000, consistent with the previous year's total of RMB 726,811,000, indicating stability in dividend distribution[39]. Assets and Liabilities - The total assets increased to RMB 17,060,503 thousand in 2024 from RMB 14,390,448 thousand in 2023, marking a growth of about 18.6%[14]. - Non-current assets rose to RMB 9,762,356 thousand in 2024, compared to RMB 7,229,979 thousand in 2023, an increase of approximately 35%[14]. - The company’s total assets rose to approximately RMB 25,833,100,000 from RMB 21,017,200,000 in 2023, while total liabilities increased to RMB 11,397,800,000 from RMB 8,269,600,000[65]. - The company’s accounts payable for trade and supplier financing arrangements amounted to RMB 2,088,785,000, a decrease from RMB 2,238,152,000 in 2023[13]. Investments and Expenditures - The company invested approximately RMB 2,858,081,000 in property, plant, and equipment in 2024, significantly higher than RMB 1,143,439,000 in 2023, representing an increase of about 150%[41]. - The company has committed to capital expenditures of RMB 2,147,126,000 for property, plant, and equipment that have been contracted but not yet provided for in the financial statements[45]. - The company recorded a depreciation expense of RMB 579,883,000 for property, plant, and equipment in 2024, compared to RMB 536,303,000 in 2023, reflecting an increase of about 8.1%[39]. Research and Development - The company has 8 Class 1 new drug projects in clinical stages, including several high-value products[5]. - The company is actively pursuing new drug projects for overseas licensing to provide comprehensive treatment options globally[5]. - The company has established a comprehensive R&D system, including multiple platforms for biological, chemical, and innovative drug development[59]. - The company invested approximately RMB 985,500,000 in drug research and development, with R&D expenses increasing by 21.9% year-on-year[59]. - The company has 45 new human drug products in development, including 22 Class 1 new drugs focusing on endocrine, metabolism, autoimmune, ophthalmology, and anti-infection fields[59]. Market Expansion and Partnerships - The company has secured 6 overseas registrations for its animal health products and is expanding its international market presence[8]. - Strategic partnerships have been formed with various domestic and international partners to enhance the company's global footprint[8]. - The company achieved record overseas revenue in its intermediates and raw materials business, enhancing its international brand recognition[9]. Corporate Governance and Management - The company has adopted and complied with the corporate governance code as per the Stock Exchange Listing Rules, with some deviations noted[72]. - There is currently no Chief Executive Officer, and the company plans to appoint one at an appropriate time[73]. - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2024[75]. - The board of directors includes six executive directors and three independent non-executive directors as of the announcement date[77]. Compliance and Accounting Standards - The group has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, including HKFRS 16 regarding lease liabilities and HKAS 1 for classifying liabilities as current or non-current[17]. - The adoption of these amendments did not have a significant impact on the consolidated financial statements[22]. - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[23]. Legal Matters - The group is involved in a lawsuit to recover approximately RMB 340,000,000 in unpaid receivables, with a court ruling on December 28, 2024, ordering Chengdu Evergrande to pay approximately RMB 136,300,000[69].

与诺和诺德官宣合作"不敌"去年净利下滑 联邦制药盘中跌13% 3月25日，联邦制药国际控股有限公司（联邦制药，3933.HK）盘中跌超13%，收跌11.78%，报14.68港元/股，市值266.74亿港元。 此次股价波动令不少投资者感到意外。消息面上，3月25日晚间，联邦制药官宣了与丹麦制药企业诺和诺德就一款GLP-1/GIP/GCG三靶点减肥 药UBT251的独家许可协议。 内分泌代谢是联邦制药的重要业务板块之一，主要产品包括人胰岛素注射液、甘精胰岛素注射液、格列吡嗪片等。2024年，糖尿病产品总销 售收入达到12.483亿元，同比上升9.5%。公司称，2024年4月，在国家药品集中采购（胰岛素专项接续）中，集团全线胰岛素产品均以A类中选， 采购基础量显著增加52.5%，同时全部A类中选产品还将获得分配剩余量。受益于本次中选，集团相关产品迅速以量补价，销售规模及市场占有率 持续提升。2024年，胰岛素类似物销量同比上升17.2%。 与诺和诺德达成合作的UBT251由联邦制药自主研发。2024年财报显示，该药在2024年7月完成在中国健康受试者的Ia期临床研究。目前，公 司是中国首家、全球第二家以化学合成多肽 ...

Financial Performance - The total revenue for the year 2024 was approximately RMB 13,758.9 million, showing a slight increase of 0.1% compared to 2023[3] - The profit attributable to the company's owners for 2024 was RMB 2,659.7 million, reflecting a decrease of 1.5% year-on-year[3] - The basic earnings per share for 2024 were RMB 146.39, down 1.5% from the previous year[3] - The gross profit for 2024 was RMB 6,082,391 thousand, down from RMB 6,334,837 thousand in 2023, indicating a decrease of about 3.98%[14] - The company achieved a net profit of RMB 2,657,821 thousand for 2024, compared to RMB 2,700,845 thousand in 2023, reflecting a decline of approximately 1.6%[14] - The company’s net profit attributable to shareholders for 2024 was RMB 2,659,704,000, a slight decrease from RMB 2,701,350,000 in 2023, representing a decline of about 1.5%[46] - The company reported a pre-tax profit of RMB 3,288,898 thousand for the fiscal year ending December 31, 2024, compared to RMB 3,344,148 thousand in 2023, reflecting a decrease of about 1.66%[35] - The total tax expenses for 2024 amounted to RMB 631,077,000, compared to RMB 643,303,000 in 2023, reflecting a decrease of approximately 1.9%[41] Dividends and Shareholder Returns - The company declared a total annual dividend of RMB 56.0 per share, an increase of 7.7% compared to the previous year, with a payout ratio of 38.3%[5] - The company declared a total dividend of RMB 726,733,000 for the year ending December 31, 2024, slightly lower than RMB 726,811,000 in 2023[44] Research and Development - The company has 8 Class 1 new drug projects in clinical stages, including several high-value products, and is actively advancing its R&D efforts[6] - The company has entered into an exclusive licensing agreement with Novo Nordisk for the self-developed product UBT251, marking a significant milestone in its R&D progress[12] - R&D expenses for the year amounted to RMB 890,757 thousand, up from RMB 757,248 thousand in 2023, indicating an increase of approximately 17.6%[38] - The company invested approximately RMB 985,500,000 in drug research and development, with R&D expenses increasing by 21.9% year-on-year[68] - The company has established a comprehensive R&D system, including multiple platforms for biological, chemical, and innovative drug research, as well as clinical studies and external collaborations[68] - The company has initiated several key clinical trials for new drugs, including TUL01101 and UBT251, with significant milestones achieved in 2024[69] Market Expansion and Strategic Initiatives - The company has signed a strategic cooperation agreement with New Zealand Riverland Foods Ltd. to enter the high-end pet food market in China[9] - The company has obtained 6 overseas registration approvals for its animal health products and aims to expand its market presence in Southeast Asia, Latin America, the Middle East, and Africa[9] - The company achieved record overseas revenue in its intermediates and raw materials business, enhancing its global brand recognition[10] - The company plans to enhance its core industry advantages and strengthen vertical integration while optimizing its diversified business layout and resource allocation to accelerate international market expansion[12] - The company aims to maintain its leading position in the industry amidst ongoing healthcare reforms and demographic changes in China, which are expected to drive market growth[12] Financial Position and Assets - The total assets as of December 31, 2024, amounted to RMB 17,060,503 thousand, an increase from RMB 14,390,448 thousand in 2023, showing a growth of about 18.6%[15] - The company’s cash and cash equivalents rose to RMB 6,329,841 thousand in 2024, up from RMB 4,261,989 thousand in 2023, marking an increase of approximately 48.5%[15] - The company’s total equity increased to RMB 14,435,240 thousand in 2024 from RMB 12,747,618 thousand in 2023, reflecting a growth of about 13.2%[17] - The company’s total assets increased to approximately RMB 25,833,100,000, compared to RMB 21,017,200,000 in 2023, while total liabilities rose to RMB 11,397,800,000 from RMB 8,269,600,000[74] Operational Efficiency - The company reported a decrease in selling and distribution expenses to RMB 1,402,483 thousand in 2024 from RMB 1,593,799 thousand in 2023, a reduction of approximately 11.97%[14] - The company’s financial costs decreased to RMB 34,958 thousand in 2024 from RMB 66,896 thousand in 2023, a reduction of approximately 47.8%[40] - The company’s employee costs, including director remuneration, rose to RMB 1,827,993,000 in 2024 from RMB 1,648,745,000 in 2023, an increase of about 10.9%[44] - The inventory cost recognized in expenses for 2024 was RMB 7,692,205,000, compared to RMB 7,361,854,000 in 2023, representing an increase of approximately 4.5%[44] Corporate Governance and Compliance - The group has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which include HKFRS 16 regarding lease liabilities and HKAS 1 for classifying liabilities as current or non-current[20] - The group has retrospectively applied new accounting policies for classifying liabilities as current or non-current, with no significant impact on the consolidated financial statements[23] - The company has adopted and complied with the corporate governance code as per the Stock Exchange Listing Rules, with a commitment to high standards of corporate governance[81] - There is currently no Chief Executive Officer, and the company plans to appoint one at an appropriate time[82] - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2024[84] Legal Matters - The company is involved in a lawsuit to recover approximately RMB 340,000,000 in unpaid receivables from Chengdu Evergrande, with a court ruling on December 18, 2024, ordering payment of approximately RMB 136,300,000[78]

Investment Rating - The report initiates coverage on Federal Pharmaceutical (03933 HK) with a "Buy" rating [2][3] Core Investment Thesis - Federal Pharmaceutical is a leading player in the penicillin-based antibiotics sector, benefiting from the current high industry demand [1] - The company has a well-established presence in the insulin and GLP-1 markets, with a robust pipeline including the innovative triple-target UBT251, which has global rights and is in advanced clinical stages [1] - The animal health business is poised to become a second growth driver, with three new production bases expected to alleviate capacity constraints [1] - The company has implemented an equity incentive plan in 2023, granting 12 0969 million shares, which is expected to enhance group cohesion [1] Antibiotics Business - Federal Pharmaceutical is the global leader in penicillin intermediates, with a nearly 50% market share in 6-APA production [1] - The company's 6-APA production is supported by high environmental barriers, ensuring stable competition [1] - In H1 2024, the company's intermediate revenue increased by 25 4% to RMB 1 314 billion, while API revenue rose by 1 2% to RMB 3 464 billion [1] - The company is expanding into higher-value sterile APIs, with a RMB 1 2 billion project in Gaolan Port expected to commence production in 2025 [1] Insulin and GLP-1 Pipeline - Federal Pharmaceutical has a comprehensive pipeline in the diabetes and weight loss sector, with 44 R&D projects, including GLP-1 products like liraglutide and semaglutide [2] - The company's UBT251, a triple-target GLP-1/GIP/GCG agonist, is the first in China and second globally to enter clinical trials using chemical synthesis [2] - The company's insulin products, including U40, U100, and premixed insulins, have secured favorable positions in national procurement, with a 52 5% increase in procurement volume [2] Animal Health Business - The animal health business has shown rapid growth, with a CAGR of 75% from 2020 to 2023 [2] - The company's core products in the animal health sector are primarily antibiotic formulations, leveraging its expertise in antibiotics [2] - Three new production bases are expected to be operational by the end of 2024, with a combined output value exceeding RMB 5 billion [2] - The pet drug segment is a key focus, with over 40 pet drugs in the pipeline, including five Class 1 new veterinary drugs [2] Financial Projections - The company is expected to achieve net profits of RMB 3 095 billion, RMB 3 513 billion, and RMB 3 892 billion for 2024, 2025, and 2026, respectively [2] - The corresponding P/E ratios are projected at 4 8x, 4 2x, and 3 8x for the same periods [2] Industry Overview - The global antibiotics market is projected to reach USD 57 billion by 2024, with China being the largest consumer [29] - The industry faces strict regulatory controls, with limited new capacity additions due to environmental barriers [30] - Federal Pharmaceutical holds a dominant position in the 6-APA market, with a 45% market share, followed by Chia Tai Tianqing and CSPC Pharmaceutical [34]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 7,175,804 thousand, representing a 3.9% increase from RMB 6,906,524 thousand in the same period of 2023[3]. - EBITDA for the same period was RMB 2,231,943 thousand, up 14.2% from RMB 1,953,790 thousand year-over-year[3]. - Profit before tax increased by 18.0% to RMB 1,901,702 thousand, compared to RMB 1,612,155 thousand in the previous year[3]. - Net profit attributable to the company's owners rose by 16.1% to RMB 1,491,404 thousand, from RMB 1,284,496 thousand in 2023[3]. - Basic earnings per share increased to RMB 82.08, a 16.1% rise from RMB 70.69 in the prior year[3]. - The interim dividend per share was declared at RMB 16.0, reflecting a 33.3% increase from RMB 12.0 in the previous year[3]. - Gross profit increased to RMB 3,344,365 thousand, up 4.1% from RMB 3,213,298 thousand year-over-year[9]. - Net profit for the period was RMB 1,490,995 thousand, a rise of 16.1% compared to RMB 1,284,240 thousand in the previous year[9]. - Basic earnings per share increased to RMB 82.08, up from RMB 70.69, reflecting a growth of 16.5%[9]. - The company reported a pre-tax profit of RMB 1,901,702 thousand for the six months ended June 30, 2024, an increase of 17.9% compared to RMB 1,612,155 thousand for the same period in 2023[14]. - The company recognized a total comprehensive income of RMB 1,285,591 thousand for the six months ended June 30, 2024, compared to RMB 1,284,240 thousand for the same period in 2023, indicating a slight increase[12]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 15,147,724 thousand, compared to RMB 13,787,201 thousand at the end of 2023, indicating a growth of 9.9%[10]. - Non-current assets increased to RMB 7,678,405 thousand from RMB 7,229,979 thousand, marking a rise of 6.2%[10]. - Current liabilities decreased to RMB 7,733,502 thousand from RMB 7,160,469 thousand, a reduction of 8.0%[11]. - The company’s total equity attributable to owners increased to RMB 13,525,453 thousand as of June 30, 2024, compared to RMB 11,530,528 thousand as of June 30, 2023, representing a growth of 17.3%[12]. - The company’s total liabilities decreased from RMB 2,030,355 thousand in the previous year to RMB 127,000 thousand in the current year, showing a significant reduction in debt[15]. - The group’s total liabilities decreased to RMB 5,376,343,000 as of June 30, 2024, from RMB 6,084,888,000 as of December 31, 2023, reflecting a decline of approximately 11.6%[53]. Cash Flow and Investments - The company reported a cash and cash equivalents balance of RMB 6,554,830 thousand, significantly up from RMB 4,261,989 thousand, reflecting a growth of 53.7%[10]. - Operating cash flow generated was RMB 2,207,903 thousand, up from RMB 1,470,153 thousand year-over-year, reflecting a growth of 50.1%[14]. - The company recorded a net cash increase of RMB 2,292,276 thousand for the six months ended June 30, 2024, compared to a net increase of RMB 1,174 thousand in the same period of 2023[15]. - The company invested RMB 732,459 thousand in property, plant, and equipment during the six months ended June 30, 2024, compared to RMB 396,697 thousand in the same period of 2023, reflecting an increase of 84.5%[15]. - Capital expenditures on property, plant, and equipment for the six months ended June 30, 2024, were approximately RMB 741,061,000, significantly higher than RMB 395,085,000 in the same period of 2023, marking an increase of about 87.5%[46]. Revenue Sources and Market Performance - Revenue from intermediates was RMB 3,081,282 thousand, while raw materials and formulations generated RMB 3,917,640 thousand and RMB 2,397,777 thousand, respectively, contributing to the overall revenue[24]. - The revenue from the Chinese market (including Hong Kong) was RMB 5,748,478 thousand, up from RMB 5,544,083 thousand in the previous year, indicating a growth of about 3.7%[26]. - The company reported a significant increase in sales of antibiotic products, generating RMB 5,150,288 thousand, compared to RMB 5,144,679 thousand in the prior period, reflecting stable demand[24]. - The insulin product line contributed RMB 528,341 thousand in revenue, showing a positive trend in this segment[24]. - The company plans to continue expanding its market presence, particularly in Europe and India, where revenues were RMB 376,958 thousand and RMB 331,769 thousand, respectively[26]. - The total segment revenue for intermediates, APIs, and formulations for the first half of 2024 was RMB 9,396,699,000, with a total inter-segment sales of RMB 2,220,895,000[28]. Research and Development - Research and development expenses rose to RMB 446,800 thousand, an increase of 32.0% from RMB 338,678 thousand in the previous year[9]. - The company invested RMB 479,400,000 in drug research and development, a 36.9% increase compared to the previous year[74]. - The company has 44 new human drug products under development, including 19 Class 1 new drugs focusing on various therapeutic areas[74]. - The company is focused on enhancing its research and innovation capabilities to adapt to industry changes[84]. Shareholder and Corporate Governance - The company declared an interim dividend of RMB 0.16 per ordinary share for the six months ended June 30, 2024, totaling RMB 290,724,000, compared to RMB 218,043,000 for the same period in 2023[46]. - The company is committed to creating more value for shareholders and society amidst the transformation of the pharmaceutical industry in China[84]. - The company adopted a share incentive plan on October 26, 2023, allowing for the issuance of up to 181,702,650 shares, representing 10% of the total issued shares[93]. - A total of 12,096,900 shares were granted under the share incentive plan on November 13, 2023, all acquired through market transactions[93]. - The board of directors confirmed compliance with the standards set forth in the code of conduct for securities trading during the six-month period ending June 30, 2024[98]. Employee and Operational Metrics - The total employee costs, including directors' remuneration, for the six months ended June 30, 2024, were RMB 916,843,000, up from RMB 769,768,000 in the previous year, indicating a rise of approximately 19.1%[41]. - The company employed approximately 15,000 staff as of June 30, 2024, maintaining the same number as at the end of 2023[81]. - The total remuneration for directors for the six months ended June 30, 2024, was RMB 10,034,000, compared to RMB 9,630,000 for the same period in 2023, reflecting an increase of 4.2%[63]. Compliance and Regulatory Matters - The company has implemented revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial performance for the current and prior periods[21]. - The company has no significant contracts or interests that conflict with its business operations as of the reporting period[86]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six-month period ending June 30, 2024[100].

Share Incentive Plan - The company granted a total of 12,096,900 shares under the share incentive plan on November 13, 2023, which will not result in the issuance of new shares[2] - A total of 169,605,750 shares are available for grant under the share incentive plan, representing 9.33% of the company's issued shares as of the 2023 annual report date[4] - The share incentive plan aims to align the interests of the company's directors and employees with those of shareholders[2] - The share incentive plan allows for a maximum of 10% of the issued shares to be granted, equating to 181,702,650 shares[2] - The total number of shares granted to the five highest-paid individuals amounted to 1,618,800 shares[2] - The vesting period for the granted shares is from November 13, 2024, to November 13, 2026[2] Share Valuation - The fair value of the granted shares on the date of award was HKD 7.45 per share, with the closing prices being HKD 7.77 and HKD 7.45 on the respective dates[3] - The company did not purchase any incentive shares during the fiscal year ending December 31, 2023[3] Corporate Governance - The company’s board of directors includes six executive directors and three independent non-executive directors[5] - The announcement does not affect other information contained in the 2023 annual report, which remains accurate and unchanged[4]