CCHT(SZ:000661) Hua Xia Shi Bao·2025-09-20 00:50Core Viewpoint - Changchun High-tech is facing significant challenges due to price reductions from centralized procurement of its core product, growth hormone, and a lack of new business opportunities, leading to a dramatic decline in net profit by 42.85% in the mid-2025 report [2][3]. Financial Performance - In the mid-2025 report, the company reported revenue of 6.603 billion yuan, a year-on-year decrease of 0.54%, and net profit attributable to shareholders of 983 million yuan, down 42.85% [3]. - This marks the first occurrence of simultaneous revenue and net profit decline in nearly 20 years for the company [3]. - The second quarter of 2025 showed revenue of 3.605 billion yuan, a slight increase of 4.16% year-on-year, but net profit fell by 48.83% to 463 million yuan, indicating a "revenue without profit" situation due to rising sales and R&D expenses [3]. Business Structure and Risks - The core reason for the "revenue without profit" phenomenon is the decline in net profit from the core subsidiary, Jinsai Pharmaceutical, and losses at Baike Biotechnology [4]. - The company is overly reliant on a single product, which exposes it to risks from market demand changes and increased competition [4]. - The losses at Baike Biotechnology may stem from an unreasonable pipeline layout and poor market prospects for R&D products [4]. Policy and Industry Context - The significant drop in net profit can be attributed to policy impacts and industry cycles, including the expansion of centralized procurement for growth hormone, which saw price reductions exceeding 50% in some regions [5]. - The company’s core product accounts for over 70% of revenue, highlighting its vulnerability due to reliance on a single product [5]. - The domestic innovative pharmaceutical industry is facing challenges transitioning from a "generic-driven" to an "innovation-driven" model, with high R&D costs and long commercialization cycles putting pressure on cash flow [5]. Expense Management - The company reported a significant increase in expenses, with sales expenses reaching 2.386 billion yuan (up 23.43%) and R&D expenses at 1.155 billion yuan (up 30.22%), together accounting for 53.6% of revenue [7]. - The high sales expenses are attributed to market promotion for new products and expansion into new medical departments [7]. - R&D expenses have surged due to the advancement of new technology platforms and clinical trials, with R&D investment reaching 20.21% of revenue, the highest in five years [7]. Comparative Analysis - The company's expense ratio of 46.97% is significantly higher than the industry average of 35%, indicating structural issues in expense management [8]. - The high sales expenses are driven by increased market competition and the need for extensive promotional activities [8]. - In contrast, other companies like Heng Rui Pharmaceutical have managed to reduce their expense ratios through sales team integration and digital marketing strategies, highlighting potential areas for efficiency improvement for Changchun High-tech [9].