HUADONG MEDICINE(SZ:000963) Chang Jiang Shang Bao·2025-08-20 23:45Core Viewpoint - The innovative pharmaceutical business of East China Pharmaceutical (000963.SZ) is rapidly developing, becoming a new growth driver for the company's performance [2][4]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 21.675 billion yuan, a year-on-year increase of 3.39% [4]. - The net profit attributable to shareholders was 1.815 billion yuan, up 7.01% year-on-year [4]. - The net profit excluding non-recurring gains and losses was 1.762 billion yuan, reflecting an 8.4% year-on-year growth [4]. - The company plans to distribute a cash dividend of 0.35 yuan per share, totaling 614 million yuan, which accounts for 33.83% of the net profit for the first half of 2025 [2][10]. Business Segments - East China Pharmaceutical operates across four major business segments: pharmaceutical manufacturing, pharmaceutical commerce, medical aesthetics, and industrial microbiology [4][5]. - The pharmaceutical manufacturing segment remains the company's core business [5]. - The innovative product business generated sales and agency service revenue of 1.084 billion yuan, a significant increase of 59% year-on-year [8]. Investment and Strategic Initiatives - To achieve its innovative transformation strategy, the company is actively engaging in investment and acquisition activities in the fields of innovative drugs, medical aesthetics, and industrial microbiology [3][10]. - The company plans to establish a "special pharmaceutical industry investment fund" with a total subscription amount of 2 billion yuan, in which East China Pharmaceutical will contribute 980 million yuan, accounting for 49% of the fund [9][10]. Research and Development - In the first half of 2025, the company invested 1.484 billion yuan in pharmaceutical industrial research and development, a year-on-year increase of 33.75% [8]. - Direct R&D expenditure was 1.174 billion yuan, up 54.21% year-on-year, representing 15.97% of the pharmaceutical industrial revenue [8]. Market Challenges - The medical aesthetics segment faced challenges, with revenue of 1.112 billion yuan, a year-on-year decline of 17.5% [6][7]. - The global macroeconomic fluctuations and market demand adjustments have impacted the growth of the medical aesthetics business [6].