CCHT(SZ:000661) Hua Xia Shi Bao·2025-07-31 08:05Core Viewpoint - Changchun High-tech has experienced a significant decline in stock price and market value, reflecting the challenges faced by the Chinese pharmaceutical industry as it transitions from reliance on "miracle drugs" to comprehensive innovation [1] Financial Performance - In 2024, Changchun High-tech reported its first revenue decline in nearly 20 years, with revenue of 13.466 billion yuan, a year-on-year decrease of 7.55%, and net profit of 2.708 billion yuan, down 43.01% [2] - The company's performance continued to deteriorate in Q1 2025, with net profit of 469 million yuan, a year-on-year decline of 47.36% [3] - From 2020 to 2023, the company's revenue grew from 8.577 billion yuan to 14.566 billion yuan, and net profit increased from 3.308 billion yuan to 4.776 billion yuan, but 2024 marked a turning point with revenue dropping to 13.466 billion yuan and net profit plummeting to 2.583 billion yuan, nearly a "halving" [4] Factors Contributing to Decline - The decline in performance is attributed to three main factors: centralized procurement policies, a decrease in birth rates, and price wars with competitors [5] - The inclusion of growth hormone in centralized procurement significantly impacted the company's core subsidiary, Jinsai Pharmaceutical, which contributed over 75% of revenue. The price of its main product dropped from approximately 1,000 yuan to 300 yuan, a reduction of 70%, leading to a 40.67% profit drop for Jinsai in 2024 [6] - The declining birth rate has reduced the potential user base for growth hormones, with newborn numbers dropping from 17.23 million in 2017 to 9.02 million in 2023 [6] Competitive Landscape - The long-acting growth hormone market, previously dominated by Jinsai, has seen increased competition with new entrants like Teva and Novo Nordisk, leading to a price war that further squeezed profit margins [7] - To capture market share, Changchun High-tech increased its sales team by 58% in 2024, raising sales expenses by 11.8% to 4.439 billion yuan [7] Employee Compensation and Workload - Despite the expansion of the sales team, average employee compensation decreased by approximately 15,000 yuan in 2024, reflecting increased workload and pressure on sales personnel [8][9] Vaccine Business Challenges - Changchun High-tech's subsidiary, Baike Biotechnology, faced significant challenges, with 2024 revenue dropping to 1.229 billion yuan, a year-on-year decline of 32.64%, and net profit halving to 232 million yuan [10] - The decline in demand for its shingles vaccine, which saw a 69.8% drop in sales volume, significantly impacted overall revenue [10] Innovation and Future Outlook - The company is attempting to explore new growth channels through its innovation pipeline, but it lags behind competitors in the number of clinical projects, with only 24 key products in clinical stages compared to over 300 by peers [11] - Key projects have faced delays, with the completion date for a significant product pushed back from June 2025 to June 2026, indicating challenges in maintaining a competitive edge [11]