Financial Performance - Revenue for the six months ended 30 June 2024 was RMB 2,454,762 thousand, a decrease of 23.5% compared to RMB 3,209,002 thousand in the same period in 2023[4] - Gross profit for the six months ended 30 June 2024 was RMB 1,949,232 thousand, with a gross profit margin of 79.4%, slightly down from 79.9% in the same period in 2023[4] - Net profit attributable to shareholders for the six months ended 30 June 2024 was RMB 684,731 thousand, a decrease of 33.5% compared to RMB 1,029,495 thousand in the same period in 2023[4] - Total assets as of 30 June 2024 were RMB 12,494,196 thousand, a decrease of 7.1% compared to RMB 13,444,196 thousand as of 30 June 2023[4] - Revenue for the six months ended 30 June 2024 decreased to RMB 2,454.76 million, compared to RMB 3,209.00 million in the same period in 2023[162] - Gross profit for the period was RMB 1,949.23 million, down from RMB 2,563.94 million in 2023[162] - Profit for the period was RMB 684.73 million, a decrease from RMB 1,023.92 million in 2023[162] - Basic and diluted earnings per share were RMB 0.78, down from RMB 1.17 in 2023[162] - Total non-current assets increased to RMB 7,025.35 million, up from RMB 6,691.27 million at the end of 2023[165] - Total current assets decreased to RMB 5,468.84 million, compared to RMB 6,053.06 million at the end of 2023[165] - Total current liabilities decreased to RMB 2,538.46 million, down from RMB 4,332.22 million at the end of 2023[167] - Net assets increased to RMB 8,665.38 million, up from RMB 7,935.51 million at the end of 2023[167] - Total equity attributable to equity shareholders of the Company increased to RMB 8,665.38 million, compared to RMB 7,935.51 million at the end of 2023[167] - Total equity increased to RMB 8,665,380,000 as of 30 June 2024, up from RMB 7,935,513,000 at the beginning of the year[172] - Retained earnings grew to RMB 4,631,875,000 by 30 June 2024, compared to RMB 3,947,144,000 at the start of 2024[172] - Profit and total comprehensive income for the six months ended 30 June 2024 was RMB 684,731,000[172] - Cash generated from operations for the six months ended 30 June 2024 was RMB 265,040,000, significantly lower than the RMB 1,346,755,000 generated in the same period in 2023[175] - Net cash generated from operating activities for the six months ended 30 June 2024 was RMB 24,405,000, down from RMB 1,244,799,000 in the same period in 2023[175] - Proceeds from disposal of financial assets in the six months ended 30 June 2024 amounted to RMB 1,940,000,000[175] - Payments for purchase of property, plant, and equipment in the six months ended 30 June 2024 totaled RMB 401,892,000[175] - Development costs incurred in the six months ended 30 June 2024 were RMB 90,567,000[175] - Net cash generated from investing activities for the six months ended 30 June 2024 was RMB 150,554,000[175] - Equity-settled share-based payments in the six months ended 30 June 2024 amounted to RMB 45,136,000[172] - Bank loan proceeds decreased to RMB 913.9 million in 2024 from RMB 1,533.5 million in 2023, a decline of 40.4%[177] - Repayments of bank loans increased significantly to RMB 1,254.3 million in 2024 compared to RMB 22.2 million in 2023[177] - Net cash used in financing activities was RMB 326.3 million in 2024, compared to net cash generated of RMB 395.5 million in 2023[177] - Cash and cash equivalents decreased by RMB 151.3 million in 2024, contrasting with an increase of RMB 2,858.1 million in 2023[177] - The company's cash and cash equivalents stood at RMB 1,523.1 million as of 30 June 2024, down from RMB 3,781.6 million a year earlier[177] - Total revenue for the twelve months ended 30 June 2024 was RMB 5,540,346,000, a slight decrease from RMB 5,660,646,000 in the same period in 2023[190] - Gross profit for the twelve months ended 30 June 2024 was RMB 4,371,059,000, down from RMB 4,449,354,000 in 2023[190] - Interest income for the six months ended 30 June 2024 was RMB 46,430,000[193] - Government grants for the six months ended 30 June 2024 amounted to RMB 12,173,000[193] - Interest and other borrowing costs for the six months ended 30 June 2024 were RMB 62,016,000[196] - Amortization cost of intangible assets for the six months ended 30 June 2024 was RMB 94,307,000[197] - Current tax provision for PRC corporate income tax for the six months ended 30 June 2024 was RMB 89.287 million, compared to RMB 217.452 million in the same period in 2023[199] - Under-provision for PRC corporate income tax in respect of prior years was RMB 6.417 million for the six months ended 30 June 2024[199] - Total current tax provision for the six months ended 30 June 2024 was RMB 95.704 million, compared to RMB 217.386 million in the same period in 2023[199] - Deferred tax related to origination and reversal of temporary differences was RMB 33.096 million for the six months ended 30 June 2024, compared to RMB 20.543 million in the same period in 2023[199] - Total income tax expense for the six months ended 30 June 2024 was RMB 128.8 million, compared to RMB 237.929 million in the same period in 2023[199] - The PRC corporate income tax rate is 25% for the six months ended 30 June 2024 and 2023[199] - The company was recognized as a "High and New Technology Enterprise" (HNTE) and enjoyed a preferential CIT rate of 15% for the six months ended 30 June 2024 and 2023[199] - A subsidiary, YiChang HEC Pharmaceutical Manufacturing Co., Ltd., was also recognized as HNTE and enjoyed a preferential CIT rate of 15% for the six months ended 30 June 2024 and 2023[199] Product and Market Performance - The company has 1,897 professional sales staff across its nationwide product distribution network in China as of 30 June 2024[5] - Kewei (Oseltamivir Phosphate), one of the company's core products, is the first-line drug for clinical application of anti-influenza virus in China and its granules form is the exclusive patented product of the company[5] - The company entered into a strategic cooperation framework agreement with Jointown Pharmaceutical Group Co., Ltd., authorizing it as the exclusive general distribution agent for Kewei products sold through the OTC channel in China[7] - The company plans to further expand its product lines and markets, enhance international production standards, and continue to expand the coverage of promotion and sales to facilitate further growth of business and profitability[8] - The company has established strategic partnerships with several renowned pharmaceutical companies, including Guoyao Group Yizheng Co., Ltd. (SZSE: 000028) and Jiuzhoutong Medical Group Co., Ltd., granting exclusive distribution rights for certain products in the OTC channel in mainland China[9] - The company signed an intent agreement with the Wuhan Institute of Virology, the National Emergency Prevention and Control Drug Engineering Technology Research Center, and Guangdong Dongyangguang Pharmaceutical Co., Ltd. to establish a national emergency prevention and control drug industrialization platform and national antiviral drug center[9] - Kewei (Oseltamivir Phosphate) maintains its leading position in the domestic anti-influenza field, with increased brand recognition and market growth[21][22] - The Group has enhanced Kewei's production capacity to better prepare for future influenza outbreaks[21][22] - Kewei's brand ranking improved to 19th among China's top 50 health brands in 2024, up 17 places from 2023[23][24] - The Group upgraded the positioning of Kewei from "the first choice for the prevention and treatment of influenza" to "the cornerstone drug for the prevention and treatment of influenza"[23][24] - Technological upgrades to Kewei granules have improved children's medication compliance and brand recognition[23][24] - The hospital sales system strengthened daily management and capacity training, with the product coverage in retail pharmacies close to 70%[26] - The chronic disease business pipeline represented by insulin achieved revenue of RMB180.0 million in the first half of 2024, a significant increase of 140.7% compared to the same period last year[28] - The oral hypoglycemic product Linagliptin increased by 394.0% over the same period last year[31] - The Group's self-developed insulin products, including Recombinant Human Insulin Injection and Insulin Glargine Injection, have all been approved for launching and awarded bids for centralized bulk procurement[28] - The application for new drug launch of Class I innovative drug SGLT-2 Inhibitor Rongliflozin for the treatment of type 2 diabetes has been submitted[31] - The Group successfully held a number of large-scale academic conferences with national influence in the first half of 2024[31] - Emitasvir Phosphate revenue in the first half of 2024 was approximately RMB40.8 million, representing a 188.5% increase compared to the same period last year[34] - Cumulative sales of Emitasvir Phosphate have exceeded RMB100 million, with the drug ranking among the top three in the industry in the first half of 2024[34] - The total number of confirmed chronic Hepatitis C cases in China in 2022 was 2.5 million, expected to reach 2.8 million by 2026 and 3.1 million by 2030[36] - The company's centralized procurement and new retail business generated revenue of approximately RMB346.1 million in the first half of 2024, a 60.8% increase year-over-year[39] - Esomeprazole magnesium Enteric-Coated Capsules revenue increased by 79.2% in the first half of 2024 compared to the same period last year[39] - Telmisartan revenue increased by 53.7% in the first half of 2024 compared to the same period last year[39] - The company has 12 different types of chemical generic products selected in the national centralized procurement[39] - The company's new retail system is becoming more mature, leveraging in-hospital prescriptions to drive out-of-hospital retail business growth[39] - The company aims to expand its new retail product line and increase pharmaceutical retail market channels[39] - The company has a competitive advantage in the primary care market for Hepatitis C treatment, with a strong R&D foundation in anti-infection[36] - The Group achieved significant R&D progress in chronic disease and new drug business pipelines during the first half of 2024, with five insulin products approved for launch, including Recombinant Human Insulin Injection and Insulin Glargine Injection[42] - The Group acquired diabetes treatment drugs from Sunshine Lake Pharma, including the Class I innovative drug SGLT-2 Inhibitor Rongliflozin, which is expected to enhance the chronic disease business pipeline and improve revenue structure[44] - R&D investment for Rongliflozin amounted to RMB 92.382 million, accounting for 3.8% of operating revenue and 18.3% of operating costs[46] - The new drug application for Emitasvir Phosphate, a treatment for hepatitis C genotype 1, was approved, and the application for Yiqibuvir Tablets (0.3g) was accepted by the NMPA[48] - Revenue from the chronic disease business pipeline reached RMB 180.0 million, a 140.7% increase compared to the same period last year[50] - Revenue from Emitasvir Phosphate capsules was RMB 40.8 million, representing a 188.5% increase year-over-year[50] - Centralized procurement and new retail business pipelines generated RMB 346.1 million in revenue, a 60.8% increase compared to the same period last year[50] - The Group's revenue for the six months ended 30 June 2024 was RMB2,454.8 million, with a total profit and comprehensive income attributable to equity holders of RMB684.7 million[60] - R&D expenses increased by approximately RMB184.1 million during the same period, and excluding this increase, the total profit and comprehensive income would have been RMB868.8 million[60] - The chronic disease business pipeline, represented by insulin, achieved a revenue of RMB180.0 million in the first half of 2024, a 140.7% increase over the same period last year[62] - The revenue of the product Linagliptin increased by 394.0% compared to the same period last year[62] - The Group's Hubei Yidu production base is the world's largest production base for Oseltamivir Phosphate[56] - The Group has a total of 1,897 staff in its sales teams as of 30 June 2024[54] - The Group has started to expand its online pharmacy channel and cooperated with several well-known online channel operators[54] - The Group's insulin series products have 5 products approved for launching and won the bid for centralized bulk procurement[62] - The application for approval for the Class I innovative drug SGLT-2 Inhibitor Rongliflozin has been successfully submitted[62] - Revenue from the chronic disease business line, represented by insulin, reached RMB 180.0 million in the first half of 2024, a significant increase of 140.7% year-over-year[63] - Revenue from the oral small molecule hypoglycemic drug Liglutide increased by 394.0% year-over-year[63] - Revenue from the new drug business pipeline, represented by Emitasvir Phosphate, reached RMB 40.8 million in the first half of 2024, a significant increase of 188.5% year-over-year[66] - Revenue from centralized procurement and new retail business pipelines reached RMB 346.1 million in the first half of 2024, an increase of 60.8% year-over-year[66] - Revenue from Esomeprazole magnesium Enteric-coated Capsules increased by 79.2% year-over-year[66] - Revenue from Telmisartan increased by 53.7% year-over-year[66] - Revenue from anti-infective pediatrics business pipeline decreased to RMB 1,864,527,000 in 2024 from RMB 2,880,538,000 in 2023, a decline of 35.3%[187] - Revenue from chronic disease business pipeline increased significantly to RMB 179,944,000 in 2024 from RMB 74,745,000 in 2023, a growth of 140.7%[187] - Revenue from new drugs business pipeline rose to RMB 40,848,000 in 2024 from RMB 14,158,000 in 2023, an increase of 188.5%[187] - Revenue from centralized procurement and new retail line grew to RMB 346,078,000 in 2024 from RMB 215,178,000 in 2023, an increase of 60.8%[187] R&D and Innovation - The company plans to further expand its product lines and markets, enhance international production standards, and continue to expand the coverage of promotion and sales to facilitate further growth of business and profitability[8] - The company signed an intent agreement with the Wuhan Institute of Virology, the National Emergency Prevention and Control Drug Engineering Technology Research Center, and Guangdong Dongyangguang Pharmaceutical Co., Ltd. to establish a national emergency prevention and control drug industrialization platform and national antiviral drug center[9] - The Group achieved significant R&D progress in chronic disease and new drug business pipelines during the first half of 2024, with five insulin products approved for launch, including Recombinant Human Insulin Injection and Insulin Glargine Injection[42] - The Group acquired diabetes treatment drugs from Sunshine Lake Pharma, including the Class I innovative drug SGLT-2 Inhibitor Rongliflozin, which is expected to enhance the chronic disease business pipeline and improve revenue structure[44] - R&D investment for Rongliflozin amounted to RMB 92.382 million, accounting for 3.8% of operating revenue and 18.3% of operating costs[46] - The new drug application for Emitasvir Phosphate, a treatment for hepatitis C genotype 1, was approved, and the application for Yiqibuvir Tablets (0.3g) was accepted by the NMPA[48] - The application for approval for the Class I innovative drug SGLT-2 Inhibitor Rongliflozin has been successfully submitted[62] - Research and development costs increased significantly to RMB 265.93 million, up from RMB 98.26 million in 2023[162] - R&D costs surged by 170.6% to RMB 265.93 million, with total R&D investment reaching RMB 358.4 million, representing 14.6% of revenue[77][80] Industry and Policy Trends - The pharmaceutical industry in China demonstrated strong growth momentum in the first half of 2024, driven by the steady recovery of the global economy, advancements in scientific and technological innovation, and increased government focus on public health[10][12] - The National Medical Reimbursement Drug List in China was dynamically adjusted in 2024, including more innovative drugs and drugs for rare diseases, while drug prices were significantly reduced through centralized procurement, benefiting millions of patients[11][13] - The China National
东阳光长江药业(01558) - 2024 - 中期财报