Hua Xia Shi Bao·2025-04-28 07:59Core Insights - The company has experienced a decline in revenue for two consecutive years, with a reported revenue of 41.067 billion yuan in 2024, down 0.8% year-on-year [4][5] - Despite the revenue decline, net profit increased by 16.08% to 2.770 billion yuan, primarily due to non-recurring gains and a reduction in R&D expenses [10][11] - The company's reliance on short-term financial maneuvers raises concerns about its long-term growth potential [2][3] Revenue Performance - In 2022, the company achieved a peak revenue of 43.952 billion yuan, but revenue fell to 41.400 billion yuan in 2023, a decrease of 5.81% [5][6] - The core pharmaceutical business saw a revenue drop of 4.29% in 2024, with significant declines in key product categories such as anti-infection and central nervous system drugs [6][8] - The only growth area was cardiovascular products, which saw a revenue increase of 14% [7] Profitability Factors - The increase in net profit was supported by non-recurring gains of 456 million yuan, including asset disposal gains of 371 million yuan and government subsidies of 614 million yuan [10][11] - R&D expenses were reduced by 16.15%, with a significant portion of R&D spending being capitalized, leading to an increase in intangible assets to 14.468 billion yuan [11][12] - The company's net profit margin improved to 8.55%, up 1.56 percentage points, due to reduced R&D expenses [15] Debt and Financial Structure - The company experienced a significant increase in short-term borrowings, reaching 18.711 billion yuan, which raised concerns about its debt structure [15] - The proportion of short-term borrowings in total interest-bearing liabilities increased from 52.2% in 2023 to 64.7% in 2024, indicating a shift towards short-term financing [15] - Financial expenses rose by 12.82% to 1.111 billion yuan, reflecting the deteriorating debt structure [15]