Zhejiang East-Asia Pharmaceutical (SH:605177) Zheng Quan Shi Bao Wang·2025-08-28 14:47Core Viewpoint - East Asia Pharmaceutical's half-year report indicates a decline in revenue and profit due to industry challenges and competition, with a revenue of 416 million yuan and a net loss of 30.23 million yuan in the first half of 2025. However, the company is leveraging its strengths to explore market demand and expand its international market presence [2]. Group 1: Financial Performance - The company's revenue and profit have decreased in the first half of 2025, with revenue at 416 million yuan and a net loss of 30.23 million yuan [2]. - Despite short-term pressures, the company has identified several positive aspects in its business operations during the reporting period [2]. Group 2: Product Development and Sales Growth - The growth in sales of non-cephalosporin pharmaceutical intermediates and raw materials is a highlight, with revenue from this segment reaching 211 million yuan, a year-on-year increase of approximately 13% [3]. - The company holds over ten raw material drug approvals for non-cephalosporin products, including widely demanded varieties such as Etoposide and Levofloxacin [3]. Group 3: R&D Investment - The company invested 42.37 million yuan in R&D in the first half of 2025, accounting for 10.19% of its revenue, positioning it among the leaders in R&D intensity within the raw material drug industry [4]. - The company has submitted multiple registration applications for new raw materials, indicating a robust pipeline for future product offerings [4]. Group 4: International Market Expansion - The company is actively expanding its international market presence, having received the CEP certificate for its raw material drug, Cefaclor, from the European Medicines Agency, which is crucial for entering the European market [5]. - In the first half of 2025, the company achieved significant success in the South Korean market, with multiple products receiving registration [5]. Group 5: Strategic Milestones - The approval of the first formulation product, Levofloxacin tablets, marks a significant milestone in the company's integrated development strategy, enhancing its product line and competitive edge [7]. - The company is progressing with its capital projects funded by convertible bonds, which are expected to support future product registrations [7][8]. Group 6: Market Dynamics - The new national centralized procurement rules emphasize rational competition, which may benefit leading companies like East Asia Pharmaceutical by alleviating pricing pressures [8]. - The company's ongoing expansion into international markets, enhanced R&D capabilities, and integrated raw material and formulation development are expected to drive future growth [8].