Hua Xia Shi Bao·2025-08-18 11:02Core Viewpoint - Lijun Group (000513) is experiencing a dual trend of declining revenue and increasing profit, primarily due to cost optimization measures, raising concerns about the sustainability of this model [1][3]. Financial Performance - The company has seen a continuous decline in operating revenue for seven consecutive quarters from Q1 2024 to Q1 2025, with the largest drop of -7.24% in Q2 2024 and a slight recovery to -1.92% in Q1 2025 [2]. - Despite a 1.92% decline in revenue, the net profit attributable to shareholders increased by 4.75%, driven by significant cost reductions [3]. - Total expenses decreased by 137 million yuan in Q1 2025, with sales and management expense ratios declining, which indirectly boosted profits [3]. - In 2024, sales expenses were 3.43 billion yuan, down from 3.598 billion yuan in 2023, while management expenses fell from 654 million yuan to 613 million yuan [3]. Asset Impairment and R&D Investment - Asset impairment losses decreased from 310 million yuan in 2023 to 182 million yuan in 2024, a reduction of 41.44%, contributing an additional 128 million yuan to net profit [4]. - R&D expenses have been declining, with 2023 expenses at 1.335 billion yuan (down 6.44%), further dropping to 1.033 billion yuan in 2024 (down 22.58%) [6][7]. - The R&D expense ratio fell from 10.5% in 2023 to 6.79% in Q1 2025, indicating a significant reduction in investment in innovation [7]. Project Termination and Pipeline Challenges - The termination of the PD-1 project (LZM009) in January 2025 marked a significant shift in the company's R&D strategy, reflecting challenges in the competitive landscape of tumor immunotherapy [8]. - The company has faced frequent terminations of early-stage projects, including ADC and CAR-T, due to rapid international technological advancements and high production costs [10]. - Core pipeline projects are progressing slowly, with key products like the quadrivalent influenza vaccine and anti-epileptic drug NS-041 lagging behind competitors [10]. Revenue Decline in Core Segments - Overall revenue for 2024 decreased by 4.97%, primarily driven by declines in the chemical and traditional Chinese medicine segments [11]. - The chemical segment, the largest revenue source, saw a 6.87% decline due to national medical insurance negotiations and centralized procurement policies [11]. - Traditional Chinese medicine revenue dropped by 19.27%, with significant declines in antiviral granules and limited growth in other products [12][13].