Financial Performance - The Group's revenue for the first half of 2021 totaled HK$584,052,000, representing a 4.9% increase compared to HK$556,716,000 in the first half of 2020[6]. - Second-quarter 2021 revenue reached HK$300,910,000, up 6.1% from HK$283,732,000 in the same quarter of 2020, and a sequential increase of 6.3% over the first quarter of 2021[6]. - Net profit attributable to owners in the first half of 2021 was HK$2,155,200,000, an increase of approximately 21 times compared to the first half of 2020, aided by a one-time gain of HK$2.3 billion from the derecognition of investment in Zhaoke Ophthalmology Limited[21][23]. - Profit for the period attributable to owners of the company was HK$2,155,200,000 for the six months ended June 30, 2021, compared to HK$96,982,000 in 2020, indicating a significant increase[197]. - Basic earnings per share for the six months ended June 30, 2021, was HK$366.24, up from HK$16.49 in the same period of 2020[197]. Gross Profit and Margins - Gross profit for the first half of 2021 was HK$386,546,000, a 5.7% increase from HK$365,619,000 in the first half of 2020[11]. - The overall gross profit margin improved to 66.2% in the first half of 2021, up 0.5 percentage points from 65.7% in the same period of 2020[11]. - The second-quarter 2021 gross profit margin was 64.5%, a decrease of 0.7 percentage points from 65.2% in the prior-year quarter[11]. - The Group recorded a gross profit of HK$386,546,000 for the six months ended June 30, 2021, an increase of 5.7% compared to HK$365,619,000 in the same period last year, with a gross profit margin of 66.2%[74]. Research and Development - The Group's R&D expenses focused on new drug development in major therapeutic areas, including cardiovascular, women's health, pediatrics, rare diseases, dermatology, and oncology[12]. - R&D expenses for the first half of 2021 totaled HK$240,043,000, representing 41.1% of corresponding revenue, up from 27.1% in the first half of 2020[19][22]. - Research and development expenses for the six months ended June 30, 2021, totaled HK$112,899,000, compared to HK$75,160,000 in 2020, reflecting an increase in investment in R&D[197]. Selling and Administrative Expenses - Selling expenses to revenue ratio increased to 28.1% in the first half of 2021, compared to 21.9% in the same period last year[20][22]. - Selling and distribution expenses increased by 34.4% to HK$164,118,000, accounting for 28.1% of the Group's revenue, up 6.2 percentage points from 21.9% in the same period last year[76]. - Administrative expenses increased by 11.8% to HK$124,201,000, attributed to business expansion and professional fees related to ZKO's separate listing[83]. Drug Development and Clinical Trials - The Group identified 14 drug development programs that may be postponed or terminated due to concerns about their future revenue potential, leading to a one-time loss of approximately HK$190.1 million in the second quarter of 2021[16]. - The NDA for Lutrate® Depot for advanced prostate cancer treatment has been accepted for review by NMPA[34]. - The Group is actively progressing with the manufacturing of Tecarfarin and Nokxaban tablets for GMP applications and clinical trials[25][29]. - Clinical trial for Intrarosa® is expected to initiate patient recruitment in September 2021 after receiving necessary approvals[32]. - The Phase III clinical trial for Socazolimab in osteosarcoma is progressing well, with 105 patients enrolled to date[51][54]. Share Options and Corporate Governance - The total number of share options granted during the period was 588,000[147]. - The Board recommended an interim dividend of HK$0.030 per share, an increase from HK$0.027 in 2020[175]. - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2021, with some deviations noted[177]. - The Company’s financial statements were reviewed in compliance with Hong Kong Accounting Standard 34[185]. Market and Financial Position - The Group anticipates ongoing challenges in 2021 due to drug price pressures as China updates its National Reimbursement Drug List[67]. - As of June 30, 2021, the Group's current ratio was 1.15, down from 1.31 on December 31, 2020, indicating a decrease in liquidity[89]. - The Group's net cash position as of June 30, 2021, was HK$143,444,000, a decrease from HK$297,183,000 on December 31, 2020[89]. - The Group believes it has adequate financial resources to meet future operational and development needs[92].
李氏大药厂(00950) - 2021 - 中期财报