Financial Summary The Group's financial performance for the six months ended June 30, 2025, shows significant growth in profit and earnings per share Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | 收入 | 7,518,683 | 7,175,804 | 4.8% | | Earnings before interest, taxes, depreciation and amortization (EBITDA) | 2,752,120 | 2,231,943 | 23.3% | | Profit before tax | 2,419,651 | 1,901,702 | 27.2% | | Profit attributable to owners of the Company for the period | 1,894,314 | 1,491,404 | 27.0% | | Earnings per share - Basic (RMB cents) | 104.26 | 82.08 | 27.0% | | 中期股息 (每股人民幣分) | 16.0 | 16.0 | 0.0% | Condensed Consolidated Financial Statements The condensed consolidated financial statements provide an overview of the Group's financial position and performance Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue increased by 4.8% to RMB 7.519 billion, gross profit grew by 17.3% to RMB 3.924 billion, and profit attributable to owners of the Company rose by 27.0% to RMB 1.894 billion, with basic earnings per share at RMB 104.26 cents Key Figures from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | 收入 | 7,518,683 | 7,175,804 | 4.8% | | Cost of sales | (3,594,809) | (3,831,439) | -6.2% | | Gross profit | 3,923,874 | 3,344,365 | 17.3% | | Other income | 128,480 | 170,015 | -24.4% | | Net other gains and losses | 61,183 | 41,958 | 45.8% | | Selling and distribution expenses | (682,161) | (706,651) | -3.5% | | Administrative expenses | (435,200) | (354,050) | 22.9% | | Research and development expenses | (498,941) | (446,800) | 11.7% | | Profit before tax | 2,419,651 | 1,901,702 | 27.2% | | Profit for the period | 1,893,507 | 1,490,995 | 27.0% | | Profit attributable to owners of the Company for the period | 1,894,314 | 1,491,404 | 27.0% | | Earnings per share - Basic (RMB cents) | 104.26 | 82.08 | 27.0% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased by 14.09% to RMB 29.435 billion from the end of 2024, with net current assets growing by 17.8% to RMB 8.598 billion and a stable current ratio of 1.89, while total equity attributable to owners increased by 8.19% to RMB 15.567 billion Key Figures from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Non-current assets | 11,131,383 | 9,762,356 | 14.02% | | Current assets | 18,303,138 | 16,070,696 | 13.89% | | LIABILITIES | | | | | Current liabilities | 9,705,569 | 8,772,549 | 10.64% | | Non-current liabilities | 4,115,975 | 2,625,263 | 56.78% | | EQUITY | | | | | Equity attributable to owners of the Company | 15,566,827 | 14,388,283 | 8.19% | | Total equity | 15,612,977 | 14,435,240 | 8.16% | | Net current assets | 8,597,569 | 7,298,147 | 17.80% | | Current ratio | 1.89 | 1.83 | 3.28% | - Property, plant and equipment significantly increased from RMB 8.725 billion at end-2024 to RMB 10.022 billion as of June 30, 2025, primarily due to capital expenditure on expanding and upgrading production facilities and office buildings422 - Cash and cash equivalents substantially increased from RMB 6.330 billion at end-2024 to RMB 9.014 billion, indicating ample Group liquidity4 Notes to the Financial Statements The notes detail the accounting policies, segment information, and specific financial items of the Group 1. Basis of Presentation The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and applicable disclosure requirements of the HKEX Listing Rules - Financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules6 2. Principal Accounting Policies The condensed consolidated financial statements are prepared primarily on a historical cost basis, consistent with 2024 annual financial statements, except for certain policies related to license fee income, with no material impact from HKFRS amendments - Financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year, except for policies related to license fee income7 - Application of HKFRS amendments (e.g., HKAS 21 amendments) had no material impact on the financial performance and position for the period8 3. Revenue and Segment Information The Group's revenue is categorized into three segments: intermediates, APIs, and finished products; as of June 30, 2025, finished products revenue (including license fees) significantly increased by 65.9%, while intermediates and APIs revenue decreased, with notable regional growth in Europe and South America offsetting a decline in China - The Group primarily operates in three business segments: intermediates (6-APA, Penicillin G Potassium), APIs (Amoxicillin), and finished products (insulin, antibiotics, nervous system drugs, ophthalmics, veterinary products, and license fee income)91011 Segment Revenue and Profit (For the Six Months Ended June 30, 2025) | Segment | 2025 Segment Revenue (RMB thousands) | 2024 Segment Revenue (RMB thousands) | Revenue Change Rate | 2025 Segment Profit (RMB thousands) | 2024 Segment Profit (RMB thousands) | Profit Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Intermediates | 2,304,311 | 3,081,282 | -25.2% | 634,619 | 1,068,451 | -40.6% | | APIs | 2,999,314 | 3,917,640 | -23.4% | 250,649 | 521,959 | -52.0% | | Finished Products | 3,978,471 | 2,397,777 | 65.9% | 1,505,572 | 241,181 | 524.2% | | License fee income (included in Finished Products) | 1,433,900 | - | N/A | N/A | N/A | N/A | Revenue by Customer Geographical Market | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | PRC (including Hong Kong) | 4,725,243 | 5,748,478 | -17.79% | | Europe | 1,741,465 | 411,566 | 323.16% | | India | 197,687 | 376,958 | -47.54% | | Middle East | 13,641 | 36,418 | -62.54% | | South America | 450,590 | 170,105 | 164.89% | | Other Asia | 258,367 | 318,585 | -18.89% | | Other Regions | 131,690 | 113,694 | 15.83% | | Total | 7,518,683 | 7,175,804 | 4.8% | 4. Other Income Other income for the period decreased by 24.4% to RMB 128 million, primarily due to a reduction in subsidy income Details of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Bank interest income | 65,468 | 57,599 | 13.66% | | Scrap sales | 3,133 | 5,073 | -38.24% | | Subsidy income | 54,959 | 100,709 | -45.42% | | Miscellaneous income | 4,920 | 6,634 | -25.83% | | Total | 128,480 | 170,015 | -24.43% | - Subsidy income includes tax subsidies and government grants from the Chinese government, specifically for (i) capital expenditure on plant and machinery; (ii) incentives and other subsidies for R&D activities; and (iii) unconditional incentives14 5. Net Other Gains and Losses Net other gains and losses for the period increased by 45.8% to RMB 61.183 million, driven by gains from fair value changes in derivative financial instruments and sales of financial assets, despite a shift from foreign exchange gains to losses Details of Net Other Gains and Losses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Net foreign exchange (losses) gains | (37,058) | 30,773 | -220.33% | | Net gains from fair value changes of derivative financial instruments | 72,973 | 70,815 | 3.05% | | Gains on sales of financial assets at FVTPL | 74,971 | 29,626 | 153.06% | | Net gains (losses) on disposal of property, plant and equipment | 7,556 | (441) | -1812.92% | | Write-off of property, plant and equipment | (57,389) | (88,329) | -35.03% | | Others | 130 | (486) | -126.75% | | Total | 61,183 | 41,958 | 45.82% | - The Group entered into various foreign currency forward contracts to mitigate foreign exchange risk, with these derivative instruments not accounted for under hedge accounting15 6. Finance Costs Finance costs for the period decreased by 17.4% to RMB 20.797 million, primarily due to a significant increase in borrowing costs capitalized to property, plant and equipment Details of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Interest on borrowings | 41,229 | 31,269 | 31.87% | | Interest on lease liabilities | 377 | 400 | -5.80% | | Less: Amount capitalized to property, plant and equipment | (20,809) | (6,497) | 220.30% | | Total | 20,797 | 25,172 | -17.38% | - Borrowing costs capitalized during the interim period arose from general borrowing arrangements, calculated at an average capitalization rate of 2.55% per annum for qualifying asset expenditures, lower than 2.87% in the prior period16 7. Tax Expense Tax expense for the period increased by 28.1% to RMB 526 million, mainly due to new Danish withholding tax on license fee income Details of Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 923 | 1,189 | -22.37% | | PRC corporate income tax | 306,813 | 336,336 | -8.78% | | Danish withholding tax on license fee income | 143,390 | - | N/A | | Deferred tax expense | 75,018 | 73,182 | 2.51% | | Total | 526,144 | 410,707 | 28.11% | - Danish withholding tax on license fee income is subject to a statutory rate of 22% on the gross amount, but the Group benefited from a preferential tax rate of 10% for the period under applicable double taxation avoidance arrangements18 8. Profit for the Period Profit for the period increased by 27.0% to RMB 1.894 billion, supported by decreases in staff costs, depreciation and amortization, and net inventory provisions Profit for the Period Deductions | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Staff costs | 827,144 | 877,789 | -5.88% | | Depreciation | 301,490 | 296,297 | 1.75% | | Amortization of intangible assets | 10,182 | 8,772 | 16.07% | | Net provision for inventories | 2,824 | 6,214 | -54.55% | | Inventory costs recognized as expense | 3,526,447 | 3,831,439 | -7.96% | [9
联邦制药(03933) - 2025 - 中期业绩