CCHT(SZ:000661) Hua Xia Shi Bao·2025-04-25 12:49Core Viewpoint - Changchun High-tech has reported a significant decline in both revenue and net profit for the first time in 20 years, indicating a challenging financial situation for the company amid industry pressures [2][4][5]. Financial Performance - In the past year, Changchun High-tech achieved revenue of 13.466 billion yuan and a net profit of 2.583 billion yuan, representing declines of 7.55% and 43.01% year-on-year, respectively [2]. - The first quarter of 2025 continued this downward trend, with revenue and net profit again decreasing, with net profit dropping by 44.95% year-on-year [4]. Business Segments - The company operates in four main segments: biological products, vaccines, traditional Chinese medicine, and real estate, with the majority of its performance driven by its subsidiary, Jinsai Pharmaceutical, particularly in growth hormone products [7]. - In Q1 2025, Jinsai Pharmaceutical reported revenue of 2.617 billion yuan, a year-on-year increase of 5.94%, but its net profit fell by 38.31% [7]. Market Dynamics - The growth hormone market is facing increased competition with new entrants and products, which has led to a significant drop in Changchun High-tech's stock price from a peak of 497.54 yuan per share in 2021 to 85.24 yuan per share [5][9]. - The company is under pressure to diversify its product offerings, with plans to reduce the contribution of growth hormone products to 60% in five years and 30% in ten years [8]. Product Development - Changchun High-tech has been expanding the indications for its growth hormone products, which now cover 11 conditions, but this has not yet translated into improved financial performance [8]. - The long-acting growth hormone formulations are gaining traction, with their revenue share increasing to approximately 32% in 2024 and 35% in Q1 2025 [13]. Competitive Landscape - The growth hormone market is becoming increasingly competitive, with several new products approved for market entry, indicating a shift in the industry dynamics [9][10]. - The market remains focused on pediatric applications, but there is potential for expansion into adult indications, which could reshape the competitive landscape [10][12].