Jiuzhou Pharmaceutical(SH:603456)2024-08-28 08:37Financial Performance - In the first half of 2024, the company achieved operating revenue of 2.764 billion RMB, a decrease of 15.07% year-on-year [3] - Net profit attributable to shareholders was 475 million RMB, down 23.62% year-on-year [3] Market Challenges - The decline in performance is primarily due to intensified market competition and inventory destocking by certain clients [4] - The company anticipates gradual improvement in the fourth quarter of 2024 [4] Business Development - The company’s CDMO (Contract Development and Manufacturing Organization) business pipeline has become increasingly rich, with a year-on-year increase of 14% in new projects [4] - As of June 2024, the company has 34 projects that have been launched, 81 in Phase III clinical trials, and 988 in Phase I and II clinical trials [4] CDMO Services - The formulation CDMO service has seen over 50% revenue growth, with service projects increasing by 32% year-on-year [4] - The company has introduced nearly 20 new clients for its formulation services [4] Global Expansion - The company has expanded its R&D platforms in the US, Singapore, Japan, and Germany, with an expected investment scale of 100-200 million RMB in each region [6] - The US R&D platform has been expanded to enhance project acceptance capabilities [6] Order and Pricing Trends - In the first half of 2024, the company saw a 14% year-on-year increase in new projects, with over 60% of new projects coming from overseas [7] - The overall capacity utilization rate is around 60%, with specific facilities like the Suzhou site reaching 90% [9] Product Development - The company has launched two new raw material drug varieties and two formulation varieties during the reporting period [8] - The company’s peptide and ADC (Antibody-Drug Conjugate) business is steadily increasing, with multiple projects in the NDA stage [8] Recognition and Awards - The company received multiple "Excellence Partner Awards" from key clients, indicating strong customer relationships and service quality [7]