Revenue and Profit Performance - Revenue for the first half of 2024 was RMB 2,454.8 million, a decrease of 23.5% compared to the same period in 2023[3] - Gross profit for the first half of 2024 was RMB 1,949.2 million, a decrease of 24.0% compared to the same period in 2023[3] - EBITDA for the first half of 2024 was RMB 1,064.2 million, a decrease of 33.1% compared to the same period in 2023[3] - Profit attributable to equity holders of the company for the first half of 2024 was RMB 684.7 million, a decrease of 33.5% compared to the same period in 2023[3] - Revenue for the six months ended June 30, 2024, was RMB 3,209,002 thousand, compared to RMB 2,454,762 thousand in the same period last year, representing a 30.7% increase[10] - Gross profit for the six months ended June 30, 2024, was RMB 2,563,937 thousand, up 31.5% from RMB 1,949,232 thousand in the same period last year[10] - Operating profit for the six months ended June 30, 2024, was RMB 867,385 thousand, a decrease of 38.0% compared to RMB 1,398,121 thousand in the same period last year[10] - Profit before tax for the six months ended June 30, 2024, was RMB 813,531 thousand, down 35.5% from RMB 1,261,853 thousand in the same period last year[10] - Net profit attributable to equity shareholders for the six months ended June 30, 2024, was RMB 684,731 thousand, a 33.5% decrease from RMB 1,029,495 thousand in the same period last year[10] - Total revenue for the 12 months ending June 30, 2024, was RMB 5,540,346 thousand, slightly down from RMB 5,660,646 thousand in the same period last year[26] - Gross profit for the 12 months ending June 30, 2024, was RMB 4,371,059 thousand, compared to RMB 4,449,354 thousand in the previous year[26] - Total revenue for the first half of 2024 reached RMB 2,454.8 million, with net profit attributable to shareholders of RMB 684.7 million[118] - The group's gross profit decreased by 24.0% to RMB 1,949.2 million in the first half of 2024, mainly due to a decrease in sales volume of the core product Kewei[123] - The group's profit before tax decreased by 35.5% to RMB 813.5 million in the first half of 2024, primarily due to a decrease in sales volume of the core product Kewei[131] - The group's net profit decreased by 33.1% to RMB 684.7 million in the first half of 2024, primarily due to a decrease in sales volume of the core product Kewei[133] - Net profit attributable to equity holders decreased by 33.5% to RMB 684.7 million in the first half of 2024, compared to RMB 1,029.5 million in the same period of 2023, primarily due to reduced sales of the core product, Kewei[135] R&D and Innovation - R&D expenses increased by RMB 184.1 million in the first half of 2024, and excluding this increase, profit attributable to equity holders would have been RMB 868.8 million[4] - R&D costs for the six months ended June 30, 2024, were RMB 265,925 thousand, a significant increase of 170.6% compared to RMB 98,264 thousand in the same period last year[10] - The group's R&D investment totaled RMB 358.4 million in the first half of 2024, accounting for 14.6% of revenue, a year-on-year increase of 196.9%[129] - The company's self-developed SGLT-2 inhibitor, Rongliflozin, has submitted a new drug application for market approval[98] - The R&D investment for Rongliflozin was RMB 92,382 thousand, accounting for 3.8% of revenue and 18.3% of cost[109] - The company has a comprehensive layout in the hepatitis C product line, with Emitasvir Phosphate already approved and Yingqiangbuwei Tablets (0.3g) under regulatory review[111] - New drug Yingqiangbuwei tablets (0.3g) for chronic hepatitis C treatment has been accepted for market application[120] Product Performance - Sales of the insulin product line reached RMB 180.0 million in the first half of 2024, a significant increase of 140.7% compared to the same period in 2023[4] - Revenue from the new drug line represented by Emtricitabine reached RMB 40.8 million in the first half of 2024, a significant increase of 188.5% compared to the same period in 2023[6] - Revenue from the centralized procurement and new retail business line reached RMB 346.1 million in the first half of 2024, an increase of 60.8% compared to the same period in 2023[7] - The company has 12 chemical generic drug products that have won bids in the national centralized procurement program, with products like Esomeprazole Magnesium Enteric-coated Capsules showing a 79.2% increase in revenue compared to the same period in 2023[7] - Revenue from anti-infective products reached RMB 1,864,527 thousand, accounting for a significant portion of total sales[24] - Revenue from chronic disease products was RMB 179,944 thousand, showing a notable increase compared to the previous period[24] - Revenue from new drug products stood at RMB 40,848 thousand, reflecting growth in this segment[24] - The insulin product line achieved a revenue of RMB 180.0 million in the first half of 2024, a year-on-year increase of 140.7%[97] - The oral hypoglycemic product Linagliptin saw a year-on-year growth of 394.0%[98] - The new drug line represented by Emitasvir Phosphate Capsules achieved a revenue of approximately RMB 40.8 million in the first half of 2024, a year-on-year increase of 188.5%[101] - Emitasvir Phosphate Capsules has accumulated sales exceeding RMB 100 million and ranked among the top three in the industry in the first half of 2024[101] - The centralized procurement and new retail business line achieved a revenue of approximately RMB 346.1 million in the first half of 2024, a year-on-year increase of 60.8%[104] - Esomeprazole Magnesium Enteric-coated Capsules grew by 79.2% year-on-year, and Telmisartan grew by 53.7% year-on-year in the first half of 2024[104] - The company has developed five insulin products, including recombinant human insulin injection and glargine insulin injection, which have been approved for market[107] - Core product Ke Wei (oseltamivir phosphate) generated revenue of RMB 1,864.5 million, maintaining stable performance[113] - Chronic disease business line achieved revenue of RMB 180.0 million, a year-on-year increase of 140.7%[113] - New drug line revenue reached RMB 40.8 million, a year-on-year growth of 188.5%[113] - Centralized procurement and new retail business line revenue was RMB 346.1 million, up 60.8% year-on-year[113] - The company's insulin series products have 5 products selected in centralized procurement, with oral small molecule diabetes drug Liglutide showing 394.0% year-on-year growth[118] - The group's procurement and new retail business lines achieved a revenue of RMB 346.1 million in the first half of 2024, a year-on-year increase of 60.8%[121] Financial Position and Assets - Total non-current assets increased to RMB 7,025,353 thousand as of June 30, 2024, compared to RMB 6,691,273 thousand as of December 31, 2023[12] - Total current assets decreased to RMB 5,468,843 thousand as of June 30, 2024, from RMB 6,053,056 thousand as of December 31, 2023[12] - Total current liabilities decreased to RMB 2,538,462 thousand as of June 30, 2024, from RMB 4,332,220 thousand as of December 31, 2023[12] - Net current assets increased to RMB 2,930,381 thousand as of June 30, 2024, compared to RMB 1,720,836 thousand as of December 31, 2023[14] - Total assets minus current liabilities increased to RMB 9,955,734 thousand as of June 30, 2024, from RMB 8,412,109 thousand as of December 31, 2023[14] - Total non-current liabilities increased to RMB 1,290,354 thousand as of June 30, 2024, from RMB 476,596 thousand as of December 31, 2023[14] - Net assets increased to RMB 8,665,380 thousand as of June 30, 2024, compared to RMB 7,935,513 thousand as of December 31, 2023[14] - Share capital remained unchanged at RMB 879,968 thousand as of June 30, 2024, and December 31, 2023[14] - Reserves increased to RMB 7,785,412 thousand as of June 30, 2024, from RMB 7,055,545 thousand as of December 31, 2023[14] - Total equity attributable to equity shareholders of the company increased to RMB 8,665,380 thousand as of June 30, 2024, from RMB 7,935,513 thousand as of December 31, 2023[14] - Total equity as of June 30, 2024, reached RMB 8,665,380 thousand, reflecting an increase from RMB 7,935,513 thousand at the beginning of the year[16] - Net profit and comprehensive income for the six months ended June 30, 2024, amounted to RMB 684,731 thousand[16] - Equity-settled share-based payments during the period totaled RMB 45,136 thousand[16] - The company's retained earnings as of June 30, 2024, stood at RMB 4,631,875 thousand, up from RMB 3,947,144 thousand at the start of the year[16] - Non-controlling interests were fully eliminated by June 30, 2024, compared to RMB 179,546 thousand at the end of June 2023[16] - The company's capital reserves increased to RMB 2,713,550 thousand as of June 30, 2024, from RMB 2,668,414 thousand at the beginning of the year[16] - Total fixed assets increased to RMB 4,753.881 million as of June 30, 2024, up from RMB 4,483.493 million at the end of 2023[37] - Additions to property, plant, and equipment in 2024 amounted to RMB 263.605 million, with an additional RMB 15.652 million in leasehold improvements[37] - The net book value of property, plant, and equipment stood at RMB 3,558.807 million as of June 30, 2024[37] - Accumulated depreciation and amortization reached RMB 781.800 million for property, plant, and equipment by mid-2024[37] - The company has RMB 434.898 million worth of properties pending ownership certificates as of June 30, 2024[38] - Assets pledged as collateral for bank loans include: RMB 286.300 million in leasehold land rights, RMB 740.038 million in construction in progress, and RMB 702.276 million in factory buildings[38] - The book value of sale-and-leaseback transactions involving factory buildings and machinery reached RMB 440.338 million as of June 30, 2024[38] - Intangible assets increased to RMB 4,028,011 thousand as of June 30, 2024, up from RMB 3,935,464 thousand at the end of 2023, driven by internal development and prepayments[39] - Impairment losses for intangible assets totaled RMB 552,194 thousand as of June 30, 2024, with a notable impairment of RMB 2,386 thousand for one generic drug[39][41] - The company paid RMB 1,641,250 thousand to Guangdong Dongyangguang Pharmaceutical as of June 30, 2024, consistent with the previous year[41] - Fair value losses on listed equity securities amounted to RMB 6,377 thousand for the six months ending June 30, 2024, compared to RMB 2,855 thousand in the same period in 2023[42] - Foreign currency option contracts generated a net fair value gain of RMB 14,472 thousand for the six months ending June 30, 2024, down from RMB 19,118 thousand in the same period in 2023[44] - The company acquired 33 drug-related technologies and intellectual properties from Guangdong Dongyangguang Pharmaceutical for a total consideration of RMB 2,131,635 thousand, including milestone and contingent payments[43] - Intangible assets prepayments increased to 6,135 thousand RMB in 2024 from 6,135 thousand RMB in 2023, while property, plant, and equipment prepayments surged to 317,078 thousand RMB from 109,244 thousand RMB[45] - Inventory levels rose to 581,153 thousand RMB in 2024 from 409,050 thousand RMB in 2023, with raw materials accounting for 331,475 thousand RMB and finished goods at 143,505 thousand RMB[45] - Trade and other receivables totaled 1,850,470 thousand RMB in 2024, with 1,106,394 thousand RMB due within 3 months and 736,363 thousand RMB due within 1 year[47] - Accounts receivable and notes receivable decreased to 2,072,611 thousand RMB in 2023 from 1,850,470 thousand RMB in 2024, with 1,803,219 thousand RMB due within 3 months[47] - Trade and other payables increased to 458,126 thousand RMB in 2024 from 200,088 thousand RMB in 2023, with 107,024 thousand RMB due within 1 month and 266,857 thousand RMB due within 1-3 months[50] - Non-current bank loans rose significantly to 990,780 thousand RMB in 2024 from 253,998 thousand RMB in 2023[50] - Current bank loans decreased to 1,077,346 thousand RMB in 2024 from 2,165,438 thousand RMB in 2023[50] - Total bank loans and other borrowings stood at 2,323,768 thousand RMB in 2024, slightly down from 2,607,804 thousand RMB in 2023[50] - Accounts payable and notes payable increased to 458,126 thousand RMB in 2024 from 200,088 thousand RMB in 2023[50] - Prepaid taxes and deductible VAT increased to 96,995 thousand RMB in 2024 from 20,565 thousand RMB in 2023[47] - Total bank loans amounted to RMB 2,068,126,000 as of June 30, 2024, compared to RMB 2,419,436,000 as of December 31, 2023[52] - Loans due within 1 year increased to RMB 1,077,346,000 as of June 30, 2024, from RMB 2,165,438,000 as of December 31, 2023[52] - Secured bank loans decreased to RMB 1,690,242,000 as of June 30, 2024, from RMB 2,269,633,000 as of December 31, 2023[52] - Unsecured bank loans increased to RMB 377,884,000 as of June 30, 2024, from RMB 149,803,000 as of December 31, 2023[52] - Additional guarantees for bank loans increased to RMB 1,079,822,000 as of June 30, 2024, from RMB 564,248,000 as of December 31, 2023[54] - Discounted bills with recourse increased to RMB 47,225,000 as of June 30, 2024, from RMB 19,512,000 as of December 31, 2023[54] - Total obligations from sale and leaseback transactions increased to RMB 268,232,000 as of June 30, 2024, from RMB 197,790,000 as of December 31, 2023[55] - Restricted shares granted under the 2023 Restricted Share Plan amounted to 7,926,777 shares with a total fair value of RMB 457,496,000[57][58] - Total compensation expenses for restricted shares granted to employees amounted to RMB 45,136,000 for the six months ended June 30, 2024, compared to zero in the same period last year[59] - The weighted average remaining contractual period for unvested restricted shares was 48 months as of June 30, 2024, down from 54 months as of December 31, 2023[59] - The company issued and fully paid ordinary shares remained unchanged at 879,967,700 shares as of June 30, 2024 and December 31, 2023[62] - Selected employees were granted 7,926,777 restricted shares under the 2023 Restricted Share Plan on July 18, 2023[63] - The fair value of listed equity securities classified as Level 1 was RMB 13,210,000 as of June 30, 2024, down from RMB 19,587,000 as of December 31, 2023[68] - The fair value of foreign currency option contracts classified as Level 2 was RMB 13,333,000 as of June 30, 2024, down from RMB 18,686,000 as of December 31, 2023[68] - The company had capital commitments of RMB 1,634,214,000 as of June 30, 2024,
东阳光长江药业(01558) - 2024 - 中期业绩