Financial Performance - The group's revenue for the six months ended June 30, 2024, was RMB 2,086,695,000, a decrease of 13.0% compared to the same period last year[2] - Net profit increased by 27.5% to RMB 626,479,000, with a net profit margin rising from 20.5% to 30.0%[3] - Earnings per share rose by 27.7% to RMB 0.83[2] - Cash generated from operating activities was RMB 564,116,000, an increase of 75.5%[3] - The total sales for the first half of 2024 decreased by 13.0% to RMB 2,086,695,000, compared to RMB 2,398,680,000 in the same period of 2023[10] - The group's net profit for the first six months of 2024 was RMB 626,479,000, an increase of 27.5% compared to the same period last year, primarily due to growth in other income and investment income, as well as a decrease in sales and distribution costs[32] Sales Performance - Sales of injection products decreased by 18.6% to RMB 779,238,000, accounting for 37.3% of total sales[5] - Oral products accounted for 62.7% of total sales, with a total sales amount of RMB 1,307,457,000, down 9.3%[5] - The overall sales of essential medicines decreased by 9.5% to RMB 840,358,000, representing 40.3% of total sales[8] - Prescription drugs and OTC drugs accounted for approximately 88.9% and 11.1% of total sales, respectively, with prescription drugs down 9.9% and OTC drugs down 32.0%[9] - The sales of traditional Chinese medicine granules fell by 11.8% to RMB 554,726,000, accounting for 26.6% of total sales[11] - The sales of respiratory prescription drugs decreased by 1.7% to RMB 504,343,000, representing 24.2% of total sales[13] - The sales of cardiovascular injection prescription drugs dropped significantly by 30.6% to RMB 345,926,000, making up 16.6% of total sales[15] - Exclusive oral prescription drugs saw a growth of 12.0%, with sales reaching RMB 257,390,000, accounting for 12.3% of total sales[10] - OTC drug sales decreased by 32.0% to RMB 232,526,000, which is 11.1% of total sales[10] - The sales of the "Cleansing Spirit Injection" decreased by 8.6% to RMB 366,322,000, which is 17.6% of total sales[13] Research and Development - The group invested 2.1% of total sales revenue in R&D during the period, focusing on modern traditional Chinese medicine[19] - The group is developing over 100 new drugs based on ancient classic formulas, aiming for regulatory approval[20] - The group is in the process of clinical trials for several innovative drugs, with the goal of submitting production license applications by the end of the year[19] Cash Flow and Investments - The group generated free cash flow of approximately RMB 489,618,000, equivalent to RMB 0.59 per share[3] - Other income increased significantly to RMB 162,297,000 from RMB 8,812,000 in the previous year, primarily from government grants[25] - Investment income rose to RMB 116,556,000, up from RMB 52,486,000 in the same period last year[26] - The group recorded a net foreign exchange gain of RMB 19,118,000, compared to RMB 7,054,000 in the previous year[27] - The group purchased property, plant, and equipment worth RMB 40,518,000 in the first half of 2024, including land leases and machinery[34] Dividends and Shareholder Information - The group declared an interim dividend of RMB 0.11 per share for 2024, totaling RMB 0.54 per share for the twelve months ending December 31, 2024[3] - The group declared an interim dividend of RMB 0.43 per share, totaling RMB 324,822,000, compared to RMB 0.31 per share totaling RMB 234,174,000 in the previous year[52] - The company will suspend the handling of shareholder registration from September 12 to September 13, 2024, to qualify for the second interim dividend for the fiscal year 2024[69] Assets and Liabilities - The group's total assets as of June 30, 2024, were RMB 8,465,054,000, compared to RMB 8,154,730,000 as of December 31, 2023[38] - The net assets of the group increased to RMB 7,336,425,000 as of June 30, 2024, from RMB 7,034,768,000 as of December 31, 2023[41] - Trade receivables, net of expected credit loss provisions, totaled RMB 840,813,000 as of June 30, 2024, an increase from RMB 758,205,000 as of December 31, 2023[55] - The group reported a decrease in trade payables to RMB 460,685,000 as of June 30, 2024, from RMB 484,791,000 as of December 31, 2023[59] - The expected credit loss provision for trade receivables was RMB 34,427,000 as of June 30, 2024, compared to RMB 29,639,000 as of December 31, 2023[55] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with a deviation noted regarding the roles of the chairman and CEO[70] - The chairman and president, Mr. Li Zhenjiang, holds both positions, with responsibilities clearly defined and approved by the board[70] - The company has adopted the standard code of conduct for securities transactions, ensuring compliance by all directors during the six months ending June 30, 2024[71] - The audit committee has reviewed the accounting principles and policies used by the group for the unaudited consolidated results for the six months ending June 30, 2024[72] Taxation - The effective tax rate increased from 26.8% in the same period of 2023 to 27.3% in the first half of 2024, primarily due to withholding tax from dividends distributed by domestic subsidiaries[31] - The company’s effective tax rate for subsidiaries in China was 25%, with some subsidiaries benefiting from a reduced rate of 15%[49] Miscellaneous - The group added construction projects amounting to RMB 40,518,000 in the six months ended June 30, 2024, compared to RMB 10,523,000 in the same period of 2023[54] - The group signed multiple lease agreements with a term of three years, recognizing right-of-use assets and lease liabilities of RMB 23,797,000 each[54] - The group did not grant any stock options under the share option plan during the reporting period[61] - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the six months ending June 30, 2024[70] - The interim report for 2024 will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website at an appropriate time[72] - The company expresses gratitude to shareholders and employees for their support and efforts[72]
神威药业(02877) - 2024 - 中期业绩