Financial Performance - Total revenue for the first half of 2024 reached RMB 16.284 billion, a 1.3% increase compared to the same period last year[4] - Net profit attributable to shareholders increased by 1.7% to RMB 3.217 billion, with basic earnings per share rising by 2.2% to RMB 27.17[4] - Gross margin increased by 1.7 percentage points to 71.6% in the first half of 2024, driven by higher revenue contribution from the pharmaceutical business[49] - Revenue from the pharmaceutical business generated revenue of RMB 13.549 billion, up 4.8% year-on-year, driven by growth in the neurological and anti-infective therapy areas[4][9][10] - Revenue from the digestive and metabolic therapy area surged by 55.4% to RMB 647 million, while the respiratory therapy area declined by 13.5% to RMB 756 million[10] - The company's functional food and other products segment saw a significant decline of 25.2% in revenue to RMB 880.4 million[4] - Raw material product sales revenue decreased by 5.8% YoY to RMB 1.855 billion in H1 2024, with vitamin C product sales dropping 5.4% to RMB 984 million and antibiotic product sales declining 6.4% to RMB 871 million[22] - Functional food and other business revenue decreased by 25.2% YoY to RMB 880 million in H1 2024, mainly due to a drop in caffeine product prices[23] - Revenue for the six months ended June 30, 2024, increased to RMB 16,284,282 thousand, up 1.3% from RMB 16,080,412 thousand in the same period in 2023[62] - Gross profit rose to RMB 11,654,547 thousand, a 3.7% increase from RMB 11,237,639 thousand in 2023[62] - Net profit attributable to the company's owners was RMB 3,020,374 thousand, a 1.8% increase from RMB 2,966,987 thousand in 2023[62] - Total comprehensive income for the period was RMB 3,973,266 thousand, up 29.2% from RMB 3,076,096 thousand in 2023[63] - Revenue from Mainland China accounted for RMB 14,256,973 thousand in 2024, up from RMB 13,841,284 thousand in 2023, representing a growth of 3.0%[76] - Revenue from other Asian regions decreased to RMB 643,601 thousand in 2024 from RMB 823,567 thousand in 2023, a decline of 21.9%[76] - Revenue from North America dropped to RMB 398,320 thousand in 2024 from RMB 489,542 thousand in 2023, a decrease of 18.6%[76] - Revenue from Europe remained stable at RMB 692,788 thousand in 2024, compared to RMB 691,814 thousand in 2023[76] - Revenue from pharmaceutical products reached RMB 13,549,079 thousand, accounting for the majority of the company's total revenue[78] - Revenue from functional foods and other products was RMB 880,409 thousand, showing a slight decrease compared to the previous year[78] - Profit from pharmaceutical products was RMB 3,488,515 thousand, contributing significantly to the overall profit[78] - The company's pre-tax profit for the period was RMB 3,801,130 thousand[78] - Net profit attributable to the company's owners increased to RMB 3,020,374 thousand in the first half of 2024, up from RMB 2,966,987 thousand in the same period of 2023[87] R&D and Innovation - The company has a robust R&D pipeline with approximately 130 innovative drug projects, including over 40 large molecules, 40 small molecules, and 40 novel formulations[7] - The company's R&D team comprises over 2,000 professionals, with key research centers in Shijiazhuang, Shanghai, Beijing, and the United States[7] - R&D expenses increased by 10.3% YoY to RMB 2.542 billion in H1 2024, accounting for 18.8% of pharmaceutical business revenue, with over 60 key drugs in clinical or application stages[23] - R&D expenses increased to RMB 2,541,991 thousand, up 10.3% from RMB 2,303,611 thousand in 2023[62] - Mingfu Le® (recombinant human TNK tissue-type plasminogen activator, rhTNK-tPA) received approval in China for thrombolytic treatment of acute ischemic stroke patients, marking the first approval of its kind in China and the second indication for the product[24] - Ensuximab® (recombinant anti-PD-1 fully human monoclonal antibody) received conditional approval in China for the treatment of recurrent or metastatic cervical cancer patients with PD-L1 expression (CPS≥1) who have failed prior platinum-containing chemotherapy[24] - 10 first-in-class indications and 12 additional indications for investigational drugs received clinical trial approvals in China[24] - JMT106 injection (GPC3 and interferon receptor bispecific fusion protein) received clinical trial approval in the US in January 2024[28] - SYH2039 tablet (MAT2A inhibitor) received clinical trial approval in the US in April 2024[28] - SYS6023 (ADC) received clinical trial approval in the US in July 2024[28] - DP303c (recombinant humanized anti-HER2 monoclonal antibody-MMAE conjugate injection) initiated a Phase III trial in China for second-line and above HER2-positive advanced breast cancer in February 2024, currently in the enrollment phase[29] - TG103 injection (GLP-1 receptor agonist) completed enrollment for a Phase III trial in China for overweight and obesity in January 2024 and initiated a Phase III trial for type 2 diabetes in April 2024[33] - SYS6002 (anti-Nectin-4 monoclonal antibody-drug conjugate) demonstrated clear efficacy signals and good tolerability in Phase I trials for advanced solid tumors, with results presented at ASCO-GU and ASCO in 2024[34] - The first-generation COVID-19 mRNA vaccine showed good protective efficacy, immunogenicity, and safety against XBB variant, with clinical study results published in international journals in 2024[36] - JMT101 combined with osimertinib showed promising efficacy in NSCLC patients with EGFR exon 20 insertion mutations, with manageable safety[37] - TG103 demonstrated significant weight reduction compared to placebo in a Phase Ib study for overweight or obese patients without type 2 diabetes[38] - SG001 exhibited durable anti-tumor activity and acceptable safety in PD-L1 positive recurrent/metastatic cervical cancer patients[39] - JMT103 showed low immunogenicity and good efficacy in reducing bone metabolism biomarkers in solid tumor bone metastasis[41] - The company submitted 30 PCT international applications and 154 patents (95 domestic, 59 foreign) in 2024, with 52 patents granted (28 domestic, 24 foreign)[47] - The company has accumulated 192 PCT international applications, 1,948 patent applications (1,279 domestic, 669 foreign), and 951 granted patents (633 domestic, 318 foreign) as of July 31, 2024[48] Shareholder Returns and Share Repurchases - The company declared an interim dividend of 16 HK cents per share, a 14.3% increase from the previous year[6] - The company completed a share repurchase of HK1 billion[6] - The company repurchased 36,350,000 shares in June 2024 at an average price of HKD 6.58 per share, totaling HKD 231,848 thousand[108] - The company repurchased a total of 62,978,000 shares during the period from April to June 2024, with 26,628,000 shares repurchased in April and 36,350,000 shares repurchased in June[149] - The repurchased shares in April and June 2024 were canceled in May and July 2024, respectively, aiming to enhance earnings per share and maximize shareholder returns[147] - The total value of shares repurchased in April 2024 was HKD 155,616,000, while in June 2024, it was HKD 231,848,000, with an average price of HKD 5.99 and HKD 6.58 per share, respectively[149] - The company declared an interim dividend of 16 HK cents per share for 2024, amounting to approximately RMB 1,529,135 thousand, compared to 14 HK cents per share in 2023[88] - Dividends paid increased to RMB 1,531,855 thousand in 2024 from RMB 1,203,729 thousand in 2023, reflecting a 27.3% rise[69] - Repurchase of ordinary shares amounted to RMB 353,166 thousand in 2024, up from RMB 200,358 thousand in 2023[69] Market and Product Performance - Enbipu® continued to grow in the first half of 2024, with Mingfule® receiving approval for a new indication for treating acute ischemic stroke patients, providing new growth momentum[11] - Mingfule® is a third-generation thrombolytic drug with independent intellectual property rights, extending its indications from cardiovascular to neurological fields, and was the first of its kind in China to be approved for thrombolytic treatment of acute ischemic stroke[12] - Shu'anling® is a non-selective phosphodiesterase inhibitor that improves microcirculation through multiple mechanisms, with increasing recognition by doctors in tiered hospitals and expanding market space in grassroots markets[12] - Enxi® is a drug for treating idiopathic Parkinson's disease in adults, selected in centralized procurement, and has expanded market coverage through grassroots market penetration and retail channel expansion[12] - Oushu'an® is a treatment for schizophrenia, currently the lowest daily treatment cost among paliperidone products, with active market promotion underway[12] - Jinyouli® and Duomeisu® sales declined due to the impact of the Beijing-Tianjin-Hebei [3+N] Alliance centralized drug procurement, while new products like Duoenyi®, Duoenda®, and Geruite® saw rapid sales growth[13] - Duoenyi® is China's first generic irinotecan liposome injection, approved in September 2023 for use in combination with 5-FU and LV for metastatic pancreatic cancer patients progressing after gemcitabine treatment[14] - Duoenda® is a self-developed chemical drug by the company, the first mitoxantrone liposome drug globally, approved in 2022 and included in the national medical insurance catalog in December 2023[14] - Jinlitai® is a self-developed global first-in-class IgG4 RANKL inhibitor, approved in September 2023 for treating giant cell tumor of bone, bone metastases of solid tumors, and osteoporosis, with faster onset and better safety compared to denosumab[14] - Geruite® is indicated for unresectable hepatocellular carcinoma patients who have not received systemic treatment, and for progressive, locally advanced, or metastatic radioactive iodine-refractory differentiated thyroid cancer patients, with current focus on liver cancer and expansion into endometrial cancer, thyroid cancer, and biliary tract tumors[15] - Anti-infective product Anfulike® achieved significant sales growth due to increased recognition of its clinical advantages and stable market demand[16] - Cardiovascular product Xuanning® experienced a decline in sales due to the impact of centralized procurement policies, while Enchun®, Yishuning®, and Jianxinling® continued to show strong growth[17] - Respiratory product Yiluo® and Nuoyi'an® saw substantial sales growth in H1 2024 due to effective promotion strategies and strong market demand, while Qixiao® sales declined due to reduced market demand[19] - Digestive and metabolic products Oubetuo® and Debixin® showed significant growth, driven by effective promotion strategies and market demand[20] Operational and Financial Metrics - Sales and distribution expenses for the first half of 2024 decreased by 2.5% to RMB 4.777 billion, while administrative expenses increased by 18.1% to RMB 633 million, and R&D expenses increased by 10.3% to RMB 2.542 billion[52] - Income tax expenses for the first half of 2024 were RMB 750 million, compared to RMB 624 million in the same period of 2023[53] - Shareholders' basic profit for the first half of 2024 was RMB 3.21687 billion, compared to RMB 3.161861 billion in the same period of 2023[55] - Cash inflow from operating activities for the first half of 2024 was RMB 1.425 billion, with accounts receivable turnover days increasing to 70 days and inventory turnover days increasing to 129 days[56] - As of June 30, 2024, the company's bank deposits, balances, and cash amounted to RMB 9.885 billion, with structured deposits of RMB 2.442 billion and bank borrowings of RMB 203 million[57] - The company employed 20,300 employees as of June 30, 2024, with competitive compensation packages including stock options, stock awards, and bonuses[58] - Total assets as of June 30, 2024, stood at RMB 47,896,345 thousand, compared to RMB 46,282,170 thousand as of December 31, 2023[64] - Bank deposits and cash decreased to RMB 8,374,689 thousand from RMB 12,015,223 thousand as of December 31, 2023[64] - Total equity increased to RMB 36,472,338 thousand, up 4.2% from RMB 35,018,012 thousand as of December 31, 2023[65] - Non-current assets grew to RMB 21,430,094 thousand, a 9.7% increase from RMB 19,537,225 thousand as of December 31, 2023[64] - Current liabilities increased to RMB 10,435,307 thousand, up 2.5% from RMB 10,182,573 thousand as of December 31, 2023[65] - The company's attributable profit for the period was RMB 3,020,374,000, with a total comprehensive income of RMB 3,973,266,000[66] - The company's other comprehensive income, net of tax, was RMB 931,249,000[66] - The company's total equity as of June 30, 2024, was RMB 36,472,338,000[66] - The company's statutory reserves amounted to RMB 2,235,432,000, derived from post-tax profits of its subsidiaries in China[66] - The capital injection reserve includes RMB 2,631,198,000 from the fair value of consideration in a reverse acquisition and RMB 6,661,831,000 from the fair value of consideration paid in a 2012 reverse acquisition[67] - The company's other reserves include RMB 4,030,633,000, primarily from the fair value adjustments of financial assets and treasury shares repurchased by a subsidiary[67] - Operating cash flow increased to RMB 1,425,425 thousand in 2024 from RMB 1,320,437 thousand in 2023, reflecting a growth of 7.9%[68] - Investment activities resulted in a net cash outflow of RMB 2,133,408 thousand in 2024, compared to a net cash inflow of RMB 1,105,089 thousand in 2023[68] - Revenue from sales of goods reached RMB 16,284,282 thousand in 2024, a slight increase from RMB 16,045,712 thousand in 2023[74] - Cash and cash equivalents decreased by RMB 2,996,677 thousand in 2024, compared to an increase of RMB 1,123,030 thousand in 2023[69] - Depreciation and amortization expenses totaled RMB 631,531 thousand, reflecting an increase from the previous year[83] - The company's income tax expense for the period was RMB 749,664 thousand, with a significant portion attributed to Chinese corporate income tax[85] - The company's subsidiaries in China benefit from a preferential tax rate of 15% for high-tech enterprises, applicable until 2026[85] - The company's deferred tax liability related to cumulative profits in China amounted to RMB 29,204,000 thousand, with no provision made for deferred tax[86] - Property, plant, and equipment increased to RMB 10,488,048 thousand as of June 30, 2024, from RMB 10,037,227 thousand in the same period of 2023[90] - Intangible assets grew to RMB 2,240,018 thousand as of June 30, 2024, compared to RMB 2,264,522 thousand in the same period of 2023[92] - Other financial assets, including investments in partnerships and funds, totaled RMB 3,403,702 thousand as of June 30, 2024, up from RMB 2,387,159 thousand at the end of 2023[93] - Trade receivables increased to RMB 6,343,176 thousand as of June 30, 2024, from RMB 5,869,223 thousand at the end of 2023[95] - The company's structured bank deposits offer a guaranteed return of up to 2.3% annually, with an expected total return of up to 3.0%[100] - Bank deposits and cash decreased to RMB 9,884,689 thousand as of June 30, 2024, compared to RMB 12,755,223 thousand as of December 31, 2023, with a significant drop in liquid assets from RMB 12,015,223 thousand to RMB 8,374,689 thousand[101] - Trade payables increased to RMB 2,543,392 thousand as of June 30, 2024, from RMB 2,426,115 thousand as of December 31, 2023, with a notable rise in overdue payables beyond 180 days to RMB 413,708 thousand[103] - Other payables, including deferred government grants and construction costs, totaled RMB 6,736,211 thousand as of June 30, 2024, up from RMB 6,377,997 thousand as of December 31, 2023[104] - Bank borrowings decreased to RMB 202,560 thousand as of June 30, 2024, from RMB 450,216 thousand as of December 31, 2023, with all borrowings classified as
石药集团(01093) - 2024 - 中期财报