HANSOH PHARMA(03692)2024-08-27 10:17Financial Performance - The company reported revenue of approximately RMB 6.506 billion for the six months ended June 30, 2024, representing a year-on-year growth of approximately 44.2%[2]. - The company's profit was approximately RMB 2.726 billion, reflecting a year-on-year increase of approximately 111.5%[2]. - Basic earnings per share were approximately RMB 0.046, up approximately 111.4% compared to the same period last year[2]. - Gross profit for the same period was RMB 5,926,283 thousand, reflecting a gross margin improvement from 88.0% in 2023 to 91.1% in 2024[35]. - The company achieved a profit before tax of RMB 3,118,186 thousand, up 108.5% from RMB 1,499,883 thousand in the previous year[35]. - Net profit for the period was RMB 2,725,525 thousand, representing a year-on-year increase of 111.0% compared to RMB 1,288,848 thousand[36]. - The total comprehensive income for the period was RMB 2,810,182 thousand, compared to RMB 1,752,778 thousand in the same period of the previous year[36]. - For the six months ended June 30, 2024, the total income tax expense was RMB 392,661,000, compared to RMB 211,035,000 for the same period in 2023, representing an increase of approximately 86%[48]. Revenue Breakdown - Revenue from innovative drugs and collaborative products reached approximately RMB 5.032 billion, an increase of approximately 80.6% year-on-year, accounting for about 77.4% of total revenue[2]. - The company’s revenue from the oncology segment reached approximately RMB 4.475 billion, accounting for about 68.8% of total revenue[7]. - Revenue from central nervous system diseases reached approximately RMB 733 million, accounting for about 11.3% of total revenue[9]. - Revenue from metabolic and other diseases reached approximately RMB 597 million, accounting for about 9.1% of total revenue[10]. - Revenue from product sales amounted to RMB 5,103,080 thousand, up from RMB 4,483,227 thousand, indicating a year-over-year increase of about 13.8%[43]. - Collaborative income surged to RMB 1,402,421 thousand, compared to RMB 27,990 thousand in the previous year, reflecting a dramatic increase of over 4900%[43]. Research and Development - Research and development expenses amounted to approximately RMB 1.196 billion, a year-on-year increase of approximately 28.7%, representing about 18.4% of total revenue[2]. - The company has received approval for seven innovative drugs, all included in the National Medical Insurance Catalogue in China[3]. - The company has over 50 ongoing clinical trials for innovative drugs, covering more than 30 products as of June 30, 2024[22]. - HS-20094, a dual agonist for GLP-1 and GIP receptors, showed good safety and efficacy in reducing blood sugar and weight in type 2 diabetes patients during the 2024 ADA annual meeting[23]. - HS-20093, a B7-H3 targeted ADC, demonstrated strong anti-tumor activity in patients with recurrent or refractory bone and soft tissue sarcoma, surpassing existing standard treatments[24]. - The company has established a comprehensive R&D platform with over 1,700 researchers across four centers in the U.S. and China[21]. Innovative Drug Approvals - In January 2024, the company obtained clinical trial approval for the innovative drug HS-10501, intended for treating type 2 diabetes and adult obesity[3]. - In April 2024, the company entered into a licensing agreement with Jiangsu Quanxin Biopharmaceutical Co., Ltd. for the development and commercialization of HS-20137 monoclonal antibody in China[4]. - The innovative drug Amelot® has been approved for two indications and has been included in the national medical insurance catalog as of January 2023[13]. - The innovative drug Haosenxinfu® is recommended as a first-line treatment for chronic myeloid leukemia in national treatment guidelines[15]. - The innovative drug Fulaimi® is the first domestically developed GLP-1RA weekly formulation, approved for type 2 diabetes treatment[16]. - The innovative drug Hengmu® is the first oral antiviral drug for hepatitis B in China, included in the national medical insurance catalog as of December 2023[17]. - Multiple clinical studies for Hengmu® have demonstrated its long-term efficacy and safety in chronic hepatitis B patients[17]. - Amelot® has multiple ongoing Phase III clinical trials for various indications, including postoperative adjuvant therapy[14]. - The company continues to advance regulatory procedures for Amelot®'s marketing authorization applications in the UK and EU[14]. - The drug Xinyue® (Inalizumab injection) received approval in China in March 2022 and was included in the national medical insurance catalog in January 2023[18]. - Shengluo® (Pemosate injection) was approved for two indications in June 2023, targeting anemia caused by chronic kidney disease, and was included in the national medical insurance catalog in December 2023[19]. Financial Position - As of June 30, 2024, the company had cash and bank deposits totaling RMB 21.745 billion, a decrease from RMB 22.435 billion as of December 31, 2023[30]. - The company's asset-liability ratio was approximately 11.9% as of June 30, 2024, down from 21.9% as of December 31, 2023[30]. - The company has generated a net cash inflow of RMB 2.682 billion from operating activities for the six months ended June 30, 2024[29]. - Capital expenditures during the review period amounted to RMB 306 million, primarily for land use rights, workshop construction, and equipment purchases[29]. - The net asset value as of June 30, 2024, was RMB 27,903,275 thousand, an increase from RMB 25,794,773 thousand as of December 31, 2023, marking a growth of approximately 8.2%[38]. - Total liabilities amounted to RMB 2,410,159,000, an increase from RMB 2,375,680,000 as of December 31, 2023, reflecting a growth of approximately 1.5%[56]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[57][58]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2024, in conjunction with external auditors[60]. - The company has confirmed that all directors have complied with the company's code of conduct regarding securities transactions for the six months ended June 30, 2024[59]. - The company has not reported any significant changes or delays in the use of proceeds from fundraising activities as of June 30, 2024[65]. Shareholder Returns - The declared final dividend for 2023 is HKD 0.1422 per share, totaling approximately RMB 768,760,000, compared to RMB 268,852,000 for the final dividend of 2022, reflecting a significant increase[49]. - The interim dividend declared for the six months ended June 30, 2024, is HKD 0.201 per share, up from HKD 0.0707 per share for the same period in 2023, representing an increase of approximately 184.5%[62]. Fundraising and Utilization - The company successfully issued $600 million zero-coupon convertible bonds due in 2026, with net proceeds of approximately $595.65 million allocated for R&D, facility upgrades, and general corporate purposes[66]. - As of June 30, 2024, the company has utilized $591.65 million of the net proceeds, with 65% ($387.17 million) used for R&D expenses, including clinical trials and drug development[67]. - 25% ($148.91 million) of the proceeds were allocated for upgrading and expanding existing production facilities, including R&D facilities[67]. - 10% ($59.57 million) of the proceeds were designated for general corporate purposes, all of which have been fully utilized as of June 30, 2024[67].