Group 1 - The core viewpoint of the article highlights the significant presence of large private equity firms in the A-share market, with 21 private equity firms holding shares in 51 A-share companies, totaling a market value of 20.2 billion yuan as of April 14 [2] - In the fourth quarter, 16 new stocks were added by private equity firms, 7 stocks were increased, 17 stocks remained unchanged, and 11 stocks were reduced [2] - The distribution of heavy holdings by private equity firms shows that the basic chemical industry had the highest number of stocks at 10, followed by the electronics industry with 9, and both machinery equipment and pharmaceutical biology industries with 6 each [2] Group 2 - Gao Yi Asset held 11 stocks in the fourth quarter, with a total market value of 10.194 billion yuan, including a new investment in Yangnong Chemical of 3.932 million shares valued at 2.275 billion yuan [2] - Gao Yi Asset increased its holdings in Tong Ren Tang, Zhongju High-tech, Zijin Mining, and Ruifeng New Materials, with respective increases of 8.5 million shares, 7.7 million shares, 7.2151 million shares, and 1 million shares, valued at 954 million yuan, 694 million yuan, 5.169 billion yuan, and 619 million yuan [2] - Gao Yi Asset maintained its holdings in Shengyi Technology and Tiandi Technology, with market values of 1.203 billion yuan and 104 million yuan respectively, while reducing its holdings in Yuntianhua, Angel Yeast, Dongcheng Pharmaceutical, and Health元 by 942,400 shares, 10 million shares, 1 million shares, and 1,854,640 shares respectively [3]

Core Viewpoint - The company Health元 (600380.SH) continues to face operational pressure due to a complex external environment, with both revenue and net profit declining for the second consecutive year in 2024 [1][6]. Financial Performance - In 2024, Health元 reported revenue of 15.619 billion and a net profit attributable to shareholders of 1.387 billion, representing a year-on-year decline of 6.17% and 3.90% respectively [4][6]. - The company has experienced a rare occurrence of consecutive declines in revenue and net profit, with the last similar instance occurring in 2023 [6][7]. - Quarterly revenue for 2024 showed a consistent decline across all four quarters, with figures of 4.340 billion, 3.895 billion, 3.664 billion, and 3.721 billion, reflecting year-on-year decreases of 4.81%, 6.39%, 6.80%, and 6.87% respectively [7][8]. Research and Development - Despite increasing focus on innovative drug development, Health元's R&D investment has been decreasing, with 2024 R&D spending at 1.532 billion, down 318 million from 2021 [2][11]. - The proportion of R&D investment relative to revenue has also declined, from 11.63% in 2021 to 9.81% in 2024 [11]. - The company has reduced its R&D personnel by 70 in 2024, with the total number of R&D staff at 1,670, accounting for 11.63% of total employees [10][11]. Dividend Policy - Health元's dividend distribution remains low, with a proposed cash dividend of 366 million for 2024, resulting in a dividend payout ratio of 26.39% [2][12]. - The company has maintained a dividend payout ratio below 30% for five consecutive years [3][13]. Cost Management - Health元 has managed to reduce sales and management expenses, totaling a decrease of 755.6 million in 2024 compared to 2023 [8][9]. - Despite the reduction in expenses, the company's net profit continued to decline, indicating challenges in reversing the downward trend in operational performance [9]. Cash Position - As of the end of 2024, Health元 reported cash and cash equivalents of 14.852 billion, with interest-bearing liabilities of 5.276 billion, indicating a strong liquidity position [15].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6][16] Core Views - The company achieved a revenue of 15.619 billion yuan in 2024, a year-on-year decrease of 6.17%, with a net profit attributable to shareholders of 1.387 billion yuan, down 3.90% year-on-year [6] - The gross margin for 2024 was 62.69%, an increase of 0.53 percentage points, while the net margin was 19.10%, up 1.97 percentage points [6] - The company is in a product transition phase, with sales of Tobramycin and Shuleide gradually improving, and new drugs like TG-1000 expected to contribute to revenue growth [6][8] Financial Summary - In Q4 2024, the company reported a revenue of 3.721 billion yuan, a decrease of 6.87% year-on-year but an increase of 1.54% quarter-on-quarter [6] - The projected net profits for 2025, 2026, and 2027 are 1.463 billion yuan, 1.568 billion yuan, and 1.715 billion yuan respectively, with corresponding EPS of 0.80 yuan, 0.86 yuan, and 0.94 yuan [6][10] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 13.3, 12.4, and 11.3 respectively [6][10] Business Performance - The company’s revenue from hormone products was 2.812 billion yuan, up 1.64% year-on-year, while respiratory system products saw a significant decline of 36.98% to 1.097 billion yuan [7] - The health food segment experienced substantial growth, with revenue increasing by 92.32% to 377 million yuan, and biological products revenue surged by 102.42% to 171 million yuan [7] - The company is focusing on a comprehensive matrix for respiratory diseases, with several innovative drugs making significant progress in clinical trials [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6][16] Core Views - The company achieved a revenue of 15.619 billion yuan in 2024, a year-on-year decrease of 6.17%, with a net profit attributable to shareholders of 1.387 billion yuan, down 3.90% year-on-year [6] - The gross margin for 2024 was 62.69%, an increase of 0.53 percentage points, while the net margin was 19.10%, up 1.97 percentage points [6] - The company is in a product transition phase, with the sales of Tobramycin and Shulide gradually improving, and new drugs like TG-1000 expected to contribute to revenue growth [6][8] Financial Summary - In 2024, the company reported a quarterly revenue of 3.721 billion yuan in Q4, a decrease of 6.87% year-on-year but an increase of 1.54% quarter-on-quarter [6] - The projected net profits for 2025, 2026, and 2027 are 1.463 billion yuan, 1.568 billion yuan, and 1.715 billion yuan respectively, with corresponding EPS of 0.80 yuan, 0.86 yuan, and 0.94 yuan [6][10] - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 13.3, 12.4, and 11.3 respectively [6][10] Business Performance - The company’s revenue from hormone products was 2.812 billion yuan in 2024, up 1.64% year-on-year, while respiratory system products saw a significant decline of 36.98% to 1.097 billion yuan [7] - The health food segment experienced substantial growth, with revenue increasing by 92.32% to 377 million yuan, and biological products revenue surged by 102.42% to 171 million yuan [7] - The company is focusing on a comprehensive matrix for respiratory diseases, with several innovative drugs making significant progress in clinical trials [8]

Core Viewpoint - Health元 has reported a decline in both revenue and net profit for the second consecutive year, indicating ongoing challenges in its business operations [2][4]. Financial Performance - For the reporting period, Health元 achieved operating revenue of 15.619 billion yuan, a decrease of approximately 6.17% year-on-year [2]. - The net profit attributable to shareholders was 1.387 billion yuan, down about 3.90% compared to the previous year [2]. - Excluding contributions from丽珠集团 and丽珠单抗, Health元's revenue was 4.140 billion yuan, a decline of approximately 9.13%, with net profit dropping by about 31.83% to 630 million yuan [3]. Business Segment Performance - The chemical preparations segment faced revenue declines due to high base effects from 2023, inclusion in centralized procurement, and price reductions in medical insurance [3]. - The raw materials and intermediates segment also saw a slight revenue decrease due to price drops and intensified market competition [3]. - The traditional Chinese medicine segment experienced a revenue decline as market demand receded following the high sales during the COVID-19 pandemic [3]. Key Subsidiaries -丽珠集团 (excluding丽珠单抗) reported operating revenue of 11.766 billion yuan, down about 6.03%, contributing a net profit of approximately 1.064 billion yuan to Health元 [4]. - Conversely,丽珠单抗 reported a loss, negatively impacting Health元's net profit by about 291 million yuan [4]. Highlighted Business Areas - The health food segment remains a bright spot for Health元, with revenue growth of 61.56% in 2023, reaching 196 million yuan [6]. - In 2024, the health food and OTC segments achieved revenue of 697 million yuan, a year-on-year increase of approximately 53.91% [6]. Market Strategy - Health元 is focusing on respiratory medications and has participated in national centralized procurement to expand its market presence [7]. - Despite winning bids in national procurement, the respiratory segment's revenue fell by about 36.98% to 1.097 billion yuan in 2024 [7]. Research and Development - R&D expenses for Health元 decreased to 1.435 billion yuan, down 13.62% year-on-year [8].

Fundraising Overview - The company raised a total of RMB 171,599.38 million from a share placement in 2018, with a net amount of RMB 166,974.02 million after deducting issuance costs [1][2] - As of December 31, 2024, the company has used RMB 170,176.55 million of the raised funds, with a remaining balance of RMB 3,060.36 million [2][8] - The company issued Global Depository Receipts (GDR) in 2022, raising approximately USD 9,204 million, with a remaining balance of USD 9,627.91 million as of December 31, 2024 [3][8] Fund Utilization - In 2024, the company utilized RMB 37,454.76 million of the raised funds, with a cumulative usage of RMB 170,176.55 million [2][10] - Approximately 70% of the GDR funds are allocated for global R&D and industrialization plans, while 10% is for global sales and service network development, and 20% for working capital [9][10] Fund Management - The company has established a fundraising management system to ensure dedicated use of the funds, with strict approval processes in place [5][6] - The company has signed tripartite supervision agreements with banks and sponsors to manage the funds effectively [5][6] Project Updates - The company has completed the replacement of self-raised funds with raised funds for investment projects, amounting to RMB 21,532.82 million [10][11] - The company has also approved the temporary use of idle raised funds for working capital, with a maximum of RMB 20,000 million for the year 2024 [12][13] Financial Performance - In 2024, the company achieved an operating income of RMB 15.619 billion and a net profit attributable to shareholders of RMB 1.387 billion [20] - The company has maintained a stable performance despite challenges in the pharmaceutical sector, focusing on innovation and R&D [20][21] Governance and Compliance - The company emphasizes corporate governance, adhering to relevant laws and regulations, and has conducted multiple board meetings to ensure compliance [25][26] - The company has implemented measures to enhance investor relations and communication, including annual reports and shareholder meetings [28][29] Investor Returns - The company plans to distribute a cash dividend of RMB 2.00 per share for the 2024 fiscal year, reflecting its commitment to shareholder returns [43][29] - The company has conducted multiple share buybacks, totaling nearly RMB 2.7 billion, to enhance shareholder value [29][30] ESG Commitment - The company maintains a strong focus on ESG principles, achieving an MSCI ESG rating of AA and ranking among the top four in the Chinese pharmaceutical sector [31][32] - The company is committed to sustainable development, aiming for carbon neutrality by 2055 and actively participating in community health initiatives [31][32]

Financial Performance - The company achieved a revenue of RMB 15.619 billion and a net profit attributable to shareholders of RMB 1.387 billion for the year 2024, with a net cash flow from operating activities of RMB 3.636 billion[17]. - The company's operating revenue for 2024 was approximately ¥15.62 billion, a decrease of 6.17% compared to ¥16.65 billion in 2023[40]. - The net profit attributable to shareholders for 2024 was approximately ¥1.39 billion, down 3.90% from ¥1.44 billion in 2023[40]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2024 was approximately ¥1.32 billion, a decrease of 3.99% compared to ¥1.37 billion in 2023[40]. - The net cash flow from operating activities for 2024 was approximately ¥3.64 billion, down 7.45% from ¥3.93 billion in 2023[40]. - Basic earnings per share for 2024 decreased by 2.63% to CNY 0.74 compared to CNY 0.76 in 2023[41]. - The weighted average return on equity for 2024 was 9.74%, down 1.26 percentage points from 11.00% in 2023[41]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares to all shareholders, based on the total share capital as of the dividend record date[8]. - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares (tax included) to all shareholders in 2024, reflecting its commitment to returning value to investors[59]. Research and Development - The company has launched over 20 innovative drug projects in various fields, with 9 projects advancing to clinical phase II or beyond[17]. - The company is leveraging AI technology to enhance efficiency across its operations, including drug research and development, and has deployed a leading AI model in its core business[21]. - Continued investment in research and development is planned to support innovation and competitiveness in the pharmaceutical sector[40]. - The company has established a comprehensive R&D system covering chemical preparations and biological products, focusing on respiratory and oncology immunology fields[68]. - The total R&D investment for the reporting period was 1.532 billion RMB, accounting for 9.81% of total revenue[139]. - The company is committed to advancing its research and development efforts across multiple therapeutic areas, including infectious diseases and reproductive health[141]. Product Development and Pipeline - The company’s innovative drug pipeline in the respiratory field includes over 10 innovative drugs, with significant progress in clinical trials[19]. - The company’s anti-influenza drug "Mapasavir" has shown superior efficacy in clinical trials, with the registration application accepted by the drug regulatory authority[19]. - The company has initiated the NDA application for Marpasiwe in August 2024, aiming for a swift market entry[53]. - The company is advancing multiple R&D projects in respiratory diseases, including TSLP monoclonal antibody and IL-4R monoclonal antibody[139]. - The company is developing JP-1366 injection for the treatment of bleeding due to peptic ulcers, currently in clinical application[143]. Market Strategy and Expansion - Future outlook includes strategic market expansion and potential mergers and acquisitions to drive growth[40]. - The company aims to strengthen its market position in the respiratory disease treatment sector, benefiting from policy-driven market expansion[52]. - The company is focusing on the development of new products and technologies to enhance its market position[40]. - The company is expanding its international presence by establishing subsidiaries in the Philippines and the Netherlands, successfully obtaining drug operation licenses and building quality systems[57]. - The company plans to build its first overseas factory in Jakarta, Indonesia, in 2024, to strengthen its global supply capabilities and expand into high-end markets in Europe and the United States[81]. Financial Management and Investments - The company has conducted five share buybacks since 2020, investing nearly 2.7 billion yuan, with the fifth phase buyback of approximately 500 million yuan completed by March 2025[58]. - The company reported a net cash flow from investment activities of -1.15 billion RMB, primarily due to increased purchases of large certificates of deposit[91]. - The company’s investment strategy focuses on long-term growth through capital increases and new establishment investments[159]. - The company’s investment in Joincare Pharma resulted in a loss of 0.08 million RMB for the period[159]. Compliance and Governance - The company has established a dedicated compliance management department to ensure compliance in production, circulation, and sales, enhancing its operational integrity[127]. - The company emphasizes investor communication and has designated a department to manage investor relations and information disclosure[196]. - The company adheres to strict information disclosure regulations, ensuring timely and accurate communication with all shareholders[197]. - The company has implemented measures to manage insider information, ensuring no insider trading occurred during the reporting period[200]. Sustainability and ESG - The company received an AA rating from MSCI for its ESG performance and was included in the S&P Global Sustainable Development Yearbook (China Edition) for 2024, highlighting its commitment to sustainable practices[61]. - The company is focused on green sustainable development, improving environmental standards, and monitoring environmental information[173].

Group 1 - Health元 (600380.SH) released its 2024 annual report on April 8, 2025, indicating that 359 institutional investors disclosed holding shares, totaling 1.156 billion shares, which accounts for 61.65% of the total share capital [1] - The top ten institutional investors hold a combined 56.94% of shares, with a decrease of 3.05 percentage points compared to the previous quarter [1] Group 2 - In the public fund sector, four funds increased their holdings, with a total increase of 0.16%, while ten funds decreased their holdings, with a total decrease of 0.31% [2] - A total of 337 new public funds were disclosed this period, including several focused on innovative drugs and healthcare [2] - One foreign fund, Abu Dhabi Investment Authority, reduced its holdings slightly compared to the previous quarter [2]

Group 1 - The company has agreed to provide joint liability guarantees for its wholly-owned and controlled subsidiaries to apply for credit financing of up to RMB 20.201 billion or equivalent foreign currency from banks such as the National Development Bank [1][2][18] - The total amount of guarantees is approximately RMB 20.201 billion, with RMB 9.13 billion for subsidiaries with a debt-to-asset ratio exceeding 70% and RMB 19.288 billion for those below 70% [2] - The total guarantees account for 56.56% of the company's most recent audited total assets of RMB 35.718 billion, pending approval at the company's shareholders' meeting [2] Group 2 - The company has a total guarantee balance of RMB 2.983 billion as of March 31, 2025, with RMB 1.576 billion for subsidiaries with a debt-to-asset ratio exceeding 70% and RMB 1.407 billion for those below 70% [18] - The guarantee balance represents 20.52% of the company's most recent audited net assets attributable to shareholders of RMB 14.534 billion [18] - As of March 31, 2025, there are no overdue guarantees from the company or its controlled subsidiaries [19] Group 3 - The company has several wholly-owned and controlled subsidiaries, including Shenzhen Haibin Pharmaceutical Co., Ltd. and Shenzhen Taotai Pharmaceutical Co., Ltd., which are involved in various pharmaceutical and healthcare-related businesses [3][4][5] - The subsidiaries have different registered capitals and main business activities, such as the production and sale of pharmaceutical products, research and development, and import-export operations [3][4][5][6] - The company is actively involved in the pharmaceutical industry, focusing on the production of various drug forms, including oral solutions, tablets, and inhalation preparations [4][5][6] Group 4 - The company held its ninth board meeting on April 7, 2025, where it reviewed and approved the proposal for credit financing and guarantees for its subsidiaries [18] - The board authorized the company's legal representative or their authorized person to sign relevant documents regarding the credit financing and guarantees [18] - The proposal will be submitted for approval at the company's shareholders' meeting [18]

Core Insights - Health元 reported a total revenue of 15.619 billion yuan and a net profit attributable to shareholders of 1.387 billion yuan for the year 2024, with a net operating cash flow of 3.636 billion yuan [1] - The company has established a strong position in the respiratory drug market, achieving a 22-fold growth in respiratory products since the launch of its first high-end inhalation formulation in 2019 [1][2] - Health元 is advancing its innovative drug pipeline in the respiratory field, with over 10 innovative drugs in development, including the flu drug "Marpacisavir," which has completed Phase III clinical trials [2][3] Revenue and Profitability - The company achieved an operating revenue of 15.619 billion yuan and a net profit of 1.387 billion yuan for 2024 [1] - The net profit after deducting non-recurring items was 1.319 billion yuan, indicating a strong financial performance [1] Product Development and Innovation - Health元 has developed over 10 first-class innovative drugs in the respiratory field, covering inhalation, oral, and injection forms [2] - The flu drug "Marpacisavir" has shown superior treatment effects, significantly shortening the duration of flu symptoms and demonstrating rapid relief for adolescents [2] - The company is also focusing on chronic obstructive pulmonary disease (COPD) with multiple first-in-class drugs, including TSLP monoclonal antibody and IL-4R monoclonal antibody, both in Phase II clinical trials [2] Strategic Collaborations - Health元 is collaborating with Bayer to develop a novel oral drug for COPD, which is a global first in its class, targeting the PREP enzyme to control inflammation [3] Embracing AI Technology - The company has begun integrating AI technology across its business operations to enhance efficiency and accelerate drug development processes [5] - Health元 has deployed advanced AI models for target identification, molecular design, and screening, significantly reducing research and development timelines [5] Future Outlook - The global pharmaceutical industry is undergoing significant transformation, with AI technology reshaping drug development paradigms [6] - Health元 aims to position itself as a leader in innovative respiratory drugs in the Chinese A-share market [3][6]