LIVZON GROUP(SZ:000513)2024-06-06 10:47Financial Performance - In Q1 2024, the company achieved a revenue of RMB 3.243 billion, a year-on-year decrease of 6.08% but an increase of 4.45% compared to the previous quarter [1] - The net profit attributable to shareholders was RMB 590 million, representing a year-on-year increase of 3.57% [1] - The net profit margin for Q1 2024 was 22.08%, an increase compared to previous quarters, attributed to optimized market strategies and reduced R&D expenses [2] Business Segment Performance - Chemical preparations generated revenue of RMB 1.586 billion, down 2.31% year-on-year [1] - Revenue from APIs and intermediates was RMB 955 million, a decrease of 3.89% [1] - Traditional Chinese medicine (TCM) products saw a significant decline in revenue to RMB 389 million, down 29.61% [1] - Diagnostic reagents and equipment experienced a growth of 60.26%, with revenue reaching RMB 236 million [1][4] Market Strategy and Future Outlook - The company plans to continue optimizing market strategies to enhance sales efficiency and drive innovation [2] - In the API segment, despite a 3.9% decline in sales revenue, profit increased due to improved cost management and sales of high-end antibiotics [2] - The company is focusing on expanding its TCM product line, particularly in oncology, and enhancing its market presence for antiviral products [3] Dividend and Share Buyback - For the fiscal year 2023, the company proposed a cash dividend of RMB 1.35 per share, totaling approximately RMB 1.251 billion [4] - The company has repurchased shares worth approximately RMB 346 million, maintaining a dividend payout ratio above 80% [4] Regulatory and Market Challenges - The company has faced challenges due to regulatory changes in the pharmaceutical industry, impacting sales and market promotion efforts [6] - Despite these challenges, the company is adapting to new regulations and focusing on compliance to ensure sustainable growth [6] Product Development and Innovation - The company has several new products approved in 2023, expected to contribute significantly to revenue in the next 1-2 years [5] - Ongoing clinical trials for innovative products, such as the IL-17A/F monoclonal antibody, are anticipated to enhance market competitiveness [6]