Investment Rating - The report maintains a "Neutral" rating for the company with a target price adjusted to HKD 5.06 [3][5][16]. Core Views - The company is expected to face continued pressure on its performance in the short term, primarily due to a decline in the revenue of its pharmaceutical segment, which has resulted in a year-on-year revenue drop of 4.9% to RMB 22.686 billion for the first three quarters [1][2]. - The decline in revenue is attributed to several factors, including a 14.5% quarter-on-quarter decrease in the pharmaceutical segment's revenue, impacted by price controls and increased competition [1][2]. - The company has increased its R&D spending, leading to a rise in the R&D expense ratio by 2.1 percentage points [1]. Summary by Sections Financial Performance - For the first three quarters, the company's revenue decreased by 4.9% to RMB 22.686 billion, and net profit attributable to shareholders fell by 15.9% to RMB 3.78 billion [1]. - The third quarter saw a significant decline in revenue and net profit, with year-on-year drops of 17.8% and 51.5%, respectively [1]. - The pharmaceutical segment, which has the highest gross margin, experienced a revenue decline, leading to a 3.1 percentage point drop in gross margin for the third quarter [1]. Revenue Forecast - The revenue forecast for the pharmaceutical business remains unchanged, with an expected year-on-year decline of 7.0% in 2024, followed by a gradual recovery in 2025-2026 [2]. - New drug approvals are anticipated to partially offset the impact of price reductions, but significant revenue recovery is not expected in the short term due to market competition and price controls [2]. Adjustments to Projections - Revenue projections for raw materials and functional foods have been slightly lowered, with 2024-2026 revenue estimates adjusted down by 1.0%, 1.6%, and 1.6%, respectively [3]. - R&D expense forecasts for 2024-2026 have been increased by 7.8% to 11.5%, while net profit estimates for the same period have been reduced by 3.7%, 4.8%, and 2.2% [3].

Investment Rating - The report assigns a "Neutral" rating to the company with a target price of HKD 5.80, indicating a potential upside of 13.0% from the current closing price of HKD 5.13 [1][4][9]. Core Insights - The company experienced significant pressure in its business segments during Q3 2024, with revenues and net profits declining by 17.8% and 50.4% respectively. The decline was attributed to various factors, including a 20% drop in the pharmaceutical segment, particularly a 31% decrease in the oncology sector due to competitive pricing pressures and inventory adjustments [1][2]. - The management anticipates a recovery in 2025, driven by the launch of six new products by the end of 2024, which is expected to restore positive growth in operating income outside of business development (BD) [1][2]. - The company has entered a significant business development phase, with a global rights deal for an Lp(a) inhibitor with AstraZeneca potentially worth up to USD 1.65 billion, including a USD 100 million upfront payment expected to be recognized in Q4 2024 [2][5]. Financial Model Updates - Revenue forecasts for 2024-2026 have been adjusted downward by 17-26%, and net profit forecasts have been reduced by 28-37% due to the disappointing Q3 performance [2][3]. - The updated financial projections indicate a revenue of RMB 29,632 million for 2024, down from the previous estimate of RMB 35,518 million, with a corresponding net profit of RMB 4,966 million, reflecting a significant decrease from the prior forecast [3][11]. Business Development Potential - The company is expected to generate at least two external licensing deals annually, with the potential for each deal to exceed the scale of the AstraZeneca transaction. This includes ongoing development in various innovative platforms such as ADC, siRNA, and mRNA vaccines [2][5]. - The management is actively exploring collaborations in early product development with AI drug discovery and gene therapy technologies, indicating a strategic focus on innovation and partnerships [2][5].

Core Viewpoint - The report from CICC indicates that CSPC Pharmaceutical Group's performance in the first three quarters of 2023 was poor, with revenue declining by 4.9% year-on-year, and net profit and core net profit decreasing by 15.9% and 15.2% respectively [1][2]. Group 1 - The decline in performance is attributed to the impact of centralized procurement and medical insurance cost control on the traditional Chinese medicine business, as well as a decrease in demand and prices for raw materials [2]. - The third quarter's performance fell short of expectations, prompting a downward revision of the core net profit forecast for CSPC for this year and next year, while maintaining an "outperforming the industry" rating [2]. - The target price has been reduced by 19% to HKD 6.8 [2].

Investment Rating - The report maintains a BUY rating for CSPC Pharmaceutical, despite ongoing sales pressure and a downward revision of the target price from HK$6.21 to HK$5.97, indicating a potential upside of 16.3% from the current price of HK$5.13 [1][3]. Core Insights - CSPC's total revenue for 9M24 decreased by 3.5% YoY to RMB22.69 billion, with attributable net profit falling by 15.9% YoY to RMB3.78 billion, representing 71% and 64% of previous full-year estimates respectively [1]. - The company faces significant sales pressure from legacy products, particularly in CNS, oncology, cardiovascular, and respiratory disease segments, with notable YoY declines in sales [1]. - New product sales are expected to partially offset the decline from legacy products, with management targeting RMB2.0 billion in sales from new products in 2024E and forecasting further growth in 2025E [1]. Financial Performance Summary - Revenue for FY24E is projected at RMB29.47 billion, a decrease of 6.3% YoY, with net profit expected to decline by 19.0% to RMB4.92 billion [2][8]. - Gross profit margin is anticipated to be 70.42% in FY24E, decreasing to 69.45% in FY25E [2][11]. - The company’s operating profit is expected to decline to RMB6.26 billion in FY24E, with a further decrease to RMB5.90 billion in FY25E [2][11]. Sales and Product Insights - Sales from finished drugs in 3Q24 were RMB5.21 billion, reflecting an 18.9% YoY decrease, primarily due to price cuts and regulatory pressures [1]. - The anticipated inclusion of Duomeisu in the national VBP from March 2025 is expected to lead to further price reductions and continued sales pressure [1]. - CSPC has out-licensed global rights for a pre-clinical stage product to AstraZeneca, which could provide additional profit sources in the future [1].

Revenue and Profit Performance - Revenue for the first nine months of 2024 decreased by 4.9% year-on-year to RMB 22.686 billion, primarily due to a decline in pharmaceutical business revenue[3] - Shareholders' basic profit decreased by 15.2% year-on-year to RMB 3.998 billion, while reported profit decreased by 15.9% to RMB 3.778 billion[3] - Revenue for the nine months ended September 30, 2024, was RMB 22,686.151 million, a decrease of 4.9% compared to RMB 23,865.076 million in the same period in 2023[57] - Gross profit for the nine months ended September 30, 2024, was RMB 15,985.244 million, a decrease of 4.8% compared to RMB 16,792.100 million in the same period in 2023[57] - Net profit attributable to the company's owners for the nine months ended September 30, 2024, was RMB 3,778.039 million, a decrease of 15.9% compared to RMB 4,494.641 million in the same period in 2023[57] - Profit before tax for the nine months ended September 30, 2024, was RMB 4,745.513 million, a decrease of 15.4% compared to RMB 5,609.759 million in the same period in 2023[57] - Earnings per share (basic) for the nine months ended September 30, 2024, was RMB 32.03, a decrease of 15.4% compared to RMB 37.84 in the same period in 2023[57] Pharmaceutical Business Performance - Pharmaceutical business revenue decreased by 3.5% to RMB 18.670 billion, with notable growth in the nervous system (+4.5%) and digestive metabolism (+30.7%) therapeutic areas[4] - Anti-tumor therapeutic area revenue decreased by 17.6%, driven by price reductions of key products due to centralized procurement policies[5] - Cardiovascular therapeutic area revenue decreased by 11.1%, impacted by the failure of Xuanning® to win in the 2023 national centralized procurement[6] - Respiratory system therapeutic area revenue decreased by 18.8%, with significant declines in Qixiao® sales due to reduced market demand[7] - Digestive metabolism therapeutic area revenue increased by 30.7%, driven by strong sales growth of Oubetuo® and Debixin®[7] - Revenue from the pharmaceutical segment for the nine months ended September 30, 2024, was RMB 18,670.189 million, a decrease of 3.3% compared to RMB 19,303.355 million in the same period in 2023[60][61] Raw Materials and Functional Foods Performance - Revenue from raw material products decreased by 5.2% to RMB 2.726 billion, with vitamin C product sales down 3.4% to RMB 1.462 billion and antibiotic product revenue down 7.2% to RMB 1.264 billion[8] - Functional food and other business revenue decreased by 21.9% to RMB 1.290 billion, with caffeine product prices stable but significantly lower compared to the same period last year[8] - Revenue from the raw materials segment (Vitamin C) for the nine months ended September 30, 2024, was RMB 1,461.726 million, a decrease of 3.4% compared to RMB 1,512.917 million in the same period in 2023[60][61] - Revenue from the raw materials segment (antibiotics) for the nine months ended September 30, 2024, was RMB 1,264.396 million, a decrease of 7.2% compared to RMB 1,362.316 million in the same period in 2023[60][61] - Revenue from the functional foods and other segment for the nine months ended September 30, 2024, was RMB 1,289.840 million, a decrease of 21.9% compared to RMB 1,651.788 million in the same period in 2023[60][61] R&D and Innovation - R&D expenses increased by 5.5% to RMB 3.880 billion, accounting for 20.8% of pharmaceutical business revenue, with over 60 key drugs in clinical or application stages[9] - 6 drugs have submitted marketing applications, and 24 products (30 indications) are in the registration clinical stage[9] - 2 innovative drugs (new indications), 1 biosimilar, and 1 special formulation were approved for marketing in China, with 34 clinical trial approvals and 7 generic drug registrations[10] - 3 innovative drugs in North America received clinical trial approvals, with 1 fast-track designation[10] - Mingfule® (rhTNK-tPA) was approved in China for acute ischemic stroke, marking the first approval for this indication in the country[10] - Ensuxin® (anti-PD-1 monoclonal antibody) received conditional approval for PD-L1-positive recurrent or metastatic cervical cancer[11] - Amphotericin B liposome injection was approved for systemic fungal infections, neutropenic fever, and visceral leishmaniasis[11] - Enyitan® (omalizumab injection) was approved as the first biosimilar in China for chronic spontaneous urticaria[11] - R&D expenses for the nine months ended September 30, 2024, were RMB 3,879.728 million, an increase of 5.5% compared to RMB 3,677.949 million in the same period in 2023[57] Clinical Trials and Drug Development - SYSA1801 injection is being developed for the treatment of Claudin18.2-positive gastric cancer in combination with CAPOX and SG001 or irinotecan hydrochloride liposome injection[14] - JMT101 injection is being developed for the treatment of EGFR-positive lung squamous cell carcinoma in combination with docetaxel albumin[14] - DP303c injection has initiated a Phase III clinical trial in China for the treatment of HER2-positive advanced breast cancer, currently in the enrollment phase[16] - SYS6020 injection (CAR-T) is being developed for the treatment of systemic lupus erythematosus and myasthenia gravis[15] - SYH2039 tablet (MAT2A inhibitor) received US clinical trial approval in April 2024[16] - CPO301 (EGFR-ADC) received Fast Track designation from the FDA for the treatment of EGFR-overexpressing recurrent or metastatic squamous non-small cell lung cancer[16] - TG103 injection (GLP-1 receptor agonist) completed enrollment for its Phase III clinical trial in China for the treatment of overweight and obesity in January 2024[20] - Semaglutide injection completed enrollment for its Phase III clinical trial in China for the treatment of type 2 diabetes in August 2024[18] - JMT103 (narlumab injection) initiated a Phase III clinical trial in China for the treatment of bone metastases in malignant solid tumors in March 2024[18] - SYHX2011 (albumin-bound paclitaxel injection) completed enrollment for its Phase III clinical trial in China for the treatment of advanced breast cancer in March 2024[19] - JMT101 combined with osimertinib initiated Phase III clinical trial in China for NSCLC patients with EGFR exon 20 insertion mutations, currently in the enrollment phase[21] - SYSA1902 achieved primary endpoints in Phase III clinical trial for moderate to severe plaque psoriasis in China[21] - SYS6002 demonstrated clear efficacy signals and good tolerability in Phase I clinical study for advanced solid tumors, presented at ASCO-GU 2024[21] - DBPR108 showed significant glucose-lowering efficacy and safety comparable to placebo and sitagliptin in Phase III clinical study for diabetes[23] - First-generation COVID-19 mRNA vaccine demonstrated good protective efficacy, immunogenicity, and safety against XBB variant[24] - TG103 significantly reduced body weight compared to placebo in Phase Ib clinical study for overweight or obese patients without type 2 diabetes[25] - SG001 showed promising efficacy and safety in Phase Ib clinical study for recurrent or metastatic cervical cancer[25] - JMT103 demonstrated low immunogenicity and good safety in Phase Ib clinical study for bone metastases in solid tumors[28] - DP303c exhibited good efficacy in HER2-expressing advanced solid tumors, particularly in breast cancer, in Phase I clinical study[30] - KN026 combined therapy showed outstanding efficacy and good safety in Phase II clinical study for HER2-positive advanced gastric cancer[32] - CM310 significantly improved lung function and reduced asthma exacerbations, especially in the 150 mg dose group, with low TEAE incidence mainly being respiratory infections[34] - NBL-012 demonstrated good safety and tolerability in healthy Chinese subjects, showing linear pharmacokinetics within the 20 mg to 400 mg dose range[35] - SYHX1901 achieved significantly higher PASI75 rates compared to placebo at 12 weeks in moderate to severe plaque psoriasis, with good overall safety and tolerability[36] Marketing Applications and Approvals - DBPR108 (Prucalopride Tablets) has submitted a marketing application for type 2 diabetes[37] - Meloxicam Nanocrystal Injection has submitted a marketing application for moderate to severe pain in adults[37] - Amphotericin B Liposome for Injection has submitted a marketing application in the US for invasive fungal infections[37] - Irinotecan Hydrochloride Liposome Injection has submitted a marketing application in the US for pancreatic cancer[37] - Clevidipine Butyrate Injection Emulsion has submitted a marketing application for hypertension[37] - Batoclimab (HBM9161) has submitted a marketing application for myasthenia gravis[38] - JMT101 Injection is in key clinical trials for non-small cell lung cancer and lung squamous carcinoma[40] Intellectual Property and Licensing Agreements - The company submitted 36 PCT international applications and filed 229 patents (127 domestic and 102 foreign) since early 2024, with 60 patents granted (31 domestic and 29 foreign)[50] - As of September 30, 2024, the company has submitted a total of 198 PCT international applications, filed 2,023 patents (1,311 domestic and 712 foreign), and obtained 959 patent grants (636 domestic and 323 foreign)[50] - In September 2024, the company entered into an exclusive licensing agreement with Jiangsu Alphamab to develop, sell, and commercialize JSKN003, a HER2-targeting bispecific antibody-drug conjugate (ADC), in mainland China for tumor-related indications[52] - In October 2024, the company signed an exclusive global licensing agreement with AstraZeneca for the development, manufacturing, and commercialization of its Lp(a) inhibitor YS2302018, receiving an upfront payment of $100 million and potential milestone payments of up to $3.7 billion for development and $15.5 billion for sales, plus tiered royalties[53] Financial Reporting and Governance - The company reported a shareholder's reported profit of RMB 3,778,039 thousand and a basic profit of RMB 3,998,789 thousand, adjusted for fair value losses on financial assets and share-based employee compensation expenses[55] - Financial data for the nine months ended September 30, 2024, was prepared based on the company's internal records and management accounts, reviewed by the audit committee but not audited by external auditors[63] - The board of directors includes executive directors such as Cai Dongchen, Zhang Cuilong, Wang Zhenguo, Pan Weidong, Wang Huaiyu, Li Chunlei, Jiang Hao, Yao Bing, and Cai Xin, as well as independent non-executive directors like Wang Bo, Chen Chuan, Wang Hongguang, Ou Zhenguo, Luo Zhuojian, and Li Quan[64]

Investment Rating - The report maintains a "Neutral" rating for the company with a target price adjusted to HKD 5.18 [3][5][14] Core Views - The company anticipates a significant decline in profit for the first three quarters of 2024, projecting a year-on-year decrease of 16% to approximately RMB 3.8 billion due to a substantial drop in revenue from its main pharmaceutical business [1][2] - The decline in revenue is primarily attributed to a worsening sales performance in the oncology segment, particularly for its key products, which have been adversely affected by centralized procurement policies [1][2] - The report indicates that the core products in the neurological and cardiovascular segments are also underperforming, with a notable decrease in revenue growth for the second half of the year [1][2] Summary by Sections Financial Performance - The company expects total revenue for 2024 to be approximately RMB 29.4 billion, reflecting a decrease from previous estimates [4] - Shareholder net profit is projected to decline to RMB 4.89 billion in 2024, down from RMB 5.87 billion in 2023, indicating a significant drop in profitability [4][8] - The report outlines a downward revision of revenue forecasts for the oncology segment by 16%-25% for FY24-26, with expected revenues of RMB 4.9 billion, RMB 5.5 billion, and RMB 6.4 billion respectively [2] Valuation Metrics - The adjusted DCF model suggests a target price of HKD 5.18 per share, with a current market price of HKD 5.27, indicating limited upside potential [3][5] - The report provides a detailed financial summary, including projected earnings per share of RMB 0.41 for 2024, with a P/E ratio of 11.7 [4][8] Market Context - The report highlights the competitive pressures in the oncology market due to price reductions from centralized procurement, which have not led to a significant increase in sales volume for the affected products [2] - The company faces challenges in rapidly recovering sales in the neurological and cardiovascular segments, with established products showing limited growth potential in the current market environment [2][3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 9.15 per share, based on a 15x PE valuation for 2025 [4] Core Views - The company has entered into an exclusive licensing agreement with AstraZeneca for the global development, manufacturing, and commercialization of its Lp(a) inhibitor YS2302018 The deal includes a $100 million upfront payment, up to $370 million in potential development milestone payments, and up to $1.55 billion in potential sales milestone payments, along with tiered royalties [2] - YS2302018, a small molecule Lp(a) inhibitor developed using the company's AI-driven drug design platform, shows promising preclinical results with excellent pharmacokinetics, efficacy, and safety Lp(a) is a potential target for lipid management, and multiple therapies, including siRNA, ASO, and small molecule inhibitors, are under development globally [2] - The company is accelerating its internationalization efforts, with over 2,000 R&D personnel and eight major technology innovation platforms, including nanomedicine, siRNA, and ADC In H1 2024, R&D expenses reached RMB 2.542 billion, accounting for 18.8% of pharmaceutical revenue The company has over 130 innovative drug projects in its pipeline, with nearly 50 new products/indications expected to be submitted for approval in the next five years [2] Financial Projections - Revenue is projected to grow from RMB 30.937 billion in 2022 to RMB 38.991 billion in 2026, with a CAGR of 5.9% [3] - Net profit attributable to shareholders is expected to increase from RMB 6.091 billion in 2022 to RMB 7.339 billion in 2026, with a CAGR of 4.7% [3] - EPS is forecasted to grow from RMB 0.51 in 2022 to RMB 0.62 in 2026 [3] - ROE is expected to decline slightly from 19.7% in 2022 to 15.7% in 2026, reflecting the company's ongoing investment in R&D and international expansion [3] Financial Ratios - The company maintains a strong balance sheet, with total assets projected to grow from RMB 41.770 billion in 2022 to RMB 60.355 billion in 2026 [7] - The debt-to-asset ratio is expected to decrease from 24.2% in 2022 to 20.4% in 2026, indicating improving financial health [8] - Operating cash flow is forecasted to remain robust, increasing from RMB 7.627 billion in 2022 to RMB 7.951 billion in 2026 [7] - The company's valuation multiples are attractive, with a forward PE of 12.2x for 2024 and an EV/EBITDA of 7.0x, reflecting its growth potential and strong market position [3]

8 October 2024 | 6:23AM HKT CSPC Pharma (1093.HK): First overseas BD deal with MNC; Licensing-out a metabolism drug Licensing-out a pre-clinical metabolism asset to AstraZeneca (AZ): CSPC announced plans to license out the global rights of YS2302018, a lipoprotein(a) (Lpa) small molecule inhibitor in pre-clinical stage and any product that contains YS2302018, which could refer to combination therapy, to AstraZeneca for: 1) an upfront payment of US$100mn, which we see as quite meaningful for a pre-clinical a ...

石药集团（1093） 更新报告 集采致短期承压增速放缓，新产品陆续获批未来可期 买入 2024 年 10 月 4 日 高小迪 852-25321960 上半年收入增速不达预期：2024 年上半年公司营收 162.8 亿元（同比 +1.3%，下同），毛利 116.5 亿元（+3.7%），毛利率 71.6%（+1.7pts）。基 于财务报表所示股东应占溢利 20.2 亿元（+1.8%），归母净利率 18.5% （+0.1pts）。分板块看，成药板块录得收入 135.5 亿元（+4.8%），Q2 收入 环比出现明显萎缩；虽然维 C 原料产品价格缓慢回升，但需求回落，板块收 入上半年同比仍下降 5.4%，得 9.8 亿元；抗生素原料板块忧郁海外需求减 少，收入 8.7 亿元（-6.4%）；由于咖啡因产品价格下跌，功能食品板块收入 8.8 亿元（-25.2%）。 明复乐助力神经领域维持增长，恩必普院外市场开发空间广阔：成药板块 中，神经领域实现收入 52.36 亿元（+15.0%）。明复乐获批脑梗适应症，为 神经领域增长注入充足动力。相比心梗适应症，脑梗适应症能够更快速地放 量。恩必普 DoT 受医院医疗模式限制，尚未 ...

Financial Performance - Total revenue for the first half of 2024 reached RMB 16.284 billion, a 1.3% increase compared to the same period last year[4] - Net profit attributable to shareholders increased by 1.7% to RMB 3.217 billion, with basic earnings per share rising by 2.2% to RMB 27.17[4] - Gross margin increased by 1.7 percentage points to 71.6% in the first half of 2024, driven by higher revenue contribution from the pharmaceutical business[49] - Revenue from the pharmaceutical business generated revenue of RMB 13.549 billion, up 4.8% year-on-year, driven by growth in the neurological and anti-infective therapy areas[4][9][10] - Revenue from the digestive and metabolic therapy area surged by 55.4% to RMB 647 million, while the respiratory therapy area declined by 13.5% to RMB 756 million[10] - The company's functional food and other products segment saw a significant decline of 25.2% in revenue to RMB 880.4 million[4] - Raw material product sales revenue decreased by 5.8% YoY to RMB 1.855 billion in H1 2024, with vitamin C product sales dropping 5.4% to RMB 984 million and antibiotic product sales declining 6.4% to RMB 871 million[22] - Functional food and other business revenue decreased by 25.2% YoY to RMB 880 million in H1 2024, mainly due to a drop in caffeine product prices[23] - Revenue for the six months ended June 30, 2024, increased to RMB 16,284,282 thousand, up 1.3% from RMB 16,080,412 thousand in the same period in 2023[62] - Gross profit rose to RMB 11,654,547 thousand, a 3.7% increase from RMB 11,237,639 thousand in 2023[62] - Net profit attributable to the company's owners was RMB 3,020,374 thousand, a 1.8% increase from RMB 2,966,987 thousand in 2023[62] - Total comprehensive income for the period was RMB 3,973,266 thousand, up 29.2% from RMB 3,076,096 thousand in 2023[63] - Revenue from Mainland China accounted for RMB 14,256,973 thousand in 2024, up from RMB 13,841,284 thousand in 2023, representing a growth of 3.0%[76] - Revenue from other Asian regions decreased to RMB 643,601 thousand in 2024 from RMB 823,567 thousand in 2023, a decline of 21.9%[76] - Revenue from North America dropped to RMB 398,320 thousand in 2024 from RMB 489,542 thousand in 2023, a decrease of 18.6%[76] - Revenue from Europe remained stable at RMB 692,788 thousand in 2024, compared to RMB 691,814 thousand in 2023[76] - Revenue from pharmaceutical products reached RMB 13,549,079 thousand, accounting for the majority of the company's total revenue[78] - Revenue from functional foods and other products was RMB 880,409 thousand, showing a slight decrease compared to the previous year[78] - Profit from pharmaceutical products was RMB 3,488,515 thousand, contributing significantly to the overall profit[78] - The company's pre-tax profit for the period was RMB 3,801,130 thousand[78] - Net profit attributable to the company's owners increased to RMB 3,020,374 thousand in the first half of 2024, up from RMB 2,966,987 thousand in the same period of 2023[87] R&D and Innovation - The company has a robust R&D pipeline with approximately 130 innovative drug projects, including over 40 large molecules, 40 small molecules, and 40 novel formulations[7] - The company's R&D team comprises over 2,000 professionals, with key research centers in Shijiazhuang, Shanghai, Beijing, and the United States[7] - R&D expenses increased by 10.3% YoY to RMB 2.542 billion in H1 2024, accounting for 18.8% of pharmaceutical business revenue, with over 60 key drugs in clinical or application stages[23] - R&D expenses increased to RMB 2,541,991 thousand, up 10.3% from RMB 2,303,611 thousand in 2023[62] - Mingfu Le® (recombinant human TNK tissue-type plasminogen activator, rhTNK-tPA) received approval in China for thrombolytic treatment of acute ischemic stroke patients, marking the first approval of its kind in China and the second indication for the product[24] - Ensuximab® (recombinant anti-PD-1 fully human monoclonal antibody) received conditional approval in China for the treatment of recurrent or metastatic cervical cancer patients with PD-L1 expression (CPS≥1) who have failed prior platinum-containing chemotherapy[24] - 10 first-in-class indications and 12 additional indications for investigational drugs received clinical trial approvals in China[24] - JMT106 injection (GPC3 and interferon receptor bispecific fusion protein) received clinical trial approval in the US in January 2024[28] - SYH2039 tablet (MAT2A inhibitor) received clinical trial approval in the US in April 2024[28] - SYS6023 (ADC) received clinical trial approval in the US in July 2024[28] - DP303c (recombinant humanized anti-HER2 monoclonal antibody-MMAE conjugate injection) initiated a Phase III trial in China for second-line and above HER2-positive advanced breast cancer in February 2024, currently in the enrollment phase[29] - TG103 injection (GLP-1 receptor agonist) completed enrollment for a Phase III trial in China for overweight and obesity in January 2024 and initiated a Phase III trial for type 2 diabetes in April 2024[33] - SYS6002 (anti-Nectin-4 monoclonal antibody-drug conjugate) demonstrated clear efficacy signals and good tolerability in Phase I trials for advanced solid tumors, with results presented at ASCO-GU and ASCO in 2024[34] - The first-generation COVID-19 mRNA vaccine showed good protective efficacy, immunogenicity, and safety against XBB variant, with clinical study results published in international journals in 2024[36] - JMT101 combined with osimertinib showed promising efficacy in NSCLC patients with EGFR exon 20 insertion mutations, with manageable safety[37] - TG103 demonstrated significant weight reduction compared to placebo in a Phase Ib study for overweight or obese patients without type 2 diabetes[38] - SG001 exhibited durable anti-tumor activity and acceptable safety in PD-L1 positive recurrent/metastatic cervical cancer patients[39] - JMT103 showed low immunogenicity and good efficacy in reducing bone metabolism biomarkers in solid tumor bone metastasis[41] - The company submitted 30 PCT international applications and 154 patents (95 domestic, 59 foreign) in 2024, with 52 patents granted (28 domestic, 24 foreign)[47] - The company has accumulated 192 PCT international applications, 1,948 patent applications (1,279 domestic, 669 foreign), and 951 granted patents (633 domestic, 318 foreign) as of July 31, 2024[48] Shareholder Returns and Share Repurchases - The company declared an interim dividend of 16 HK cents per share, a 14.3% increase from the previous year[6] - The company completed a share repurchase of HK$387 million in the first half of 2024 and approved an additional repurchase of up to HK$1 billion[6] - The company repurchased 36,350,000 shares in June 2024 at an average price of HKD 6.58 per share, totaling HKD 231,848 thousand[108] - The company repurchased a total of 62,978,000 shares during the period from April to June 2024, with 26,628,000 shares repurchased in April and 36,350,000 shares repurchased in June[149] - The repurchased shares in April and June 2024 were canceled in May and July 2024, respectively, aiming to enhance earnings per share and maximize shareholder returns[147] - The total value of shares repurchased in April 2024 was HKD 155,616,000, while in June 2024, it was HKD 231,848,000, with an average price of HKD 5.99 and HKD 6.58 per share, respectively[149] - The company declared an interim dividend of 16 HK cents per share for 2024, amounting to approximately RMB 1,529,135 thousand, compared to 14 HK cents per share in 2023[88] - Dividends paid increased to RMB 1,531,855 thousand in 2024 from RMB 1,203,729 thousand in 2023, reflecting a 27.3% rise[69] - Repurchase of ordinary shares amounted to RMB 353,166 thousand in 2024, up from RMB 200,358 thousand in 2023[69] Market and Product Performance - Enbipu® continued to grow in the first half of 2024, with Mingfule® receiving approval for a new indication for treating acute ischemic stroke patients, providing new growth momentum[11] - Mingfule® is a third-generation thrombolytic drug with independent intellectual property rights, extending its indications from cardiovascular to neurological fields, and was the first of its kind in China to be approved for thrombolytic treatment of acute ischemic stroke[12] - Shu'anling® is a non-selective phosphodiesterase inhibitor that improves microcirculation through multiple mechanisms, with increasing recognition by doctors in tiered hospitals and expanding market space in grassroots markets[12] - Enxi® is a drug for treating idiopathic Parkinson's disease in adults, selected in centralized procurement, and has expanded market coverage through grassroots market penetration and retail channel expansion[12] - Oushu'an® is a treatment for schizophrenia, currently the lowest daily treatment cost among paliperidone products, with active market promotion underway[12] - Jinyouli® and Duomeisu® sales declined due to the impact of the Beijing-Tianjin-Hebei [3+N] Alliance centralized drug procurement, while new products like Duoenyi®, Duoenda®, and Geruite® saw rapid sales growth[13] - Duoenyi® is China's first generic irinotecan liposome injection, approved in September 2023 for use in combination with 5-FU and LV for metastatic pancreatic cancer patients progressing after gemcitabine treatment[14] - Duoenda® is a self-developed chemical drug by the company, the first mitoxantrone liposome drug globally, approved in 2022 and included in the national medical insurance catalog in December 2023[14] - Jinlitai® is a self-developed global first-in-class IgG4 RANKL inhibitor, approved in September 2023 for treating giant cell tumor of bone, bone metastases of solid tumors, and osteoporosis, with faster onset and better safety compared to denosumab[14] - Geruite® is indicated for unresectable hepatocellular carcinoma patients who have not received systemic treatment, and for progressive, locally advanced, or metastatic radioactive iodine-refractory differentiated thyroid cancer patients, with current focus on liver cancer and expansion into endometrial cancer, thyroid cancer, and biliary tract tumors[15] - Anti-infective product Anfulike® achieved significant sales growth due to increased recognition of its clinical advantages and stable market demand[16] - Cardiovascular product Xuanning® experienced a decline in sales due to the impact of centralized procurement policies, while Enchun®, Yishuning®, and Jianxinling® continued to show strong growth[17] - Respiratory product Yiluo® and Nuoyi'an® saw substantial sales growth in H1 2024 due to effective promotion strategies and strong market demand, while Qixiao® sales declined due to reduced market demand[19] - Digestive and metabolic products Oubetuo® and Debixin® showed significant growth, driven by effective promotion strategies and market demand[20] Operational and Financial Metrics - Sales and distribution expenses for the first half of 2024 decreased by 2.5% to RMB 4.777 billion, while administrative expenses increased by 18.1% to RMB 633 million, and R&D expenses increased by 10.3% to RMB 2.542 billion[52] - Income tax expenses for the first half of 2024 were RMB 750 million, compared to RMB 624 million in the same period of 2023[53] - Shareholders' basic profit for the first half of 2024 was RMB 3.21687 billion, compared to RMB 3.161861 billion in the same period of 2023[55] - Cash inflow from operating activities for the first half of 2024 was RMB 1.425 billion, with accounts receivable turnover days increasing to 70 days and inventory turnover days increasing to 129 days[56] - As of June 30, 2024, the company's bank deposits, balances, and cash amounted to RMB 9.885 billion, with structured deposits of RMB 2.442 billion and bank borrowings of RMB 203 million[57] - The company employed 20,300 employees as of June 30, 2024, with competitive compensation packages including stock options, stock awards, and bonuses[58] - Total assets as of June 30, 2024, stood at RMB 47,896,345 thousand, compared to RMB 46,282,170 thousand as of December 31, 2023[64] - Bank deposits and cash decreased to RMB 8,374,689 thousand from RMB 12,015,223 thousand as of December 31, 2023[64] - Total equity increased to RMB 36,472,338 thousand, up 4.2% from RMB 35,018,012 thousand as of December 31, 2023[65] - Non-current assets grew to RMB 21,430,094 thousand, a 9.7% increase from RMB 19,537,225 thousand as of December 31, 2023[64] - Current liabilities increased to RMB 10,435,307 thousand, up 2.5% from RMB 10,182,573 thousand as of December 31, 2023[65] - The company's attributable profit for the period was RMB 3,020,374,000, with a total comprehensive income of RMB 3,973,266,000[66] - The company's other comprehensive income, net of tax, was RMB 931,249,000[66] - The company's total equity as of June 30, 2024, was RMB 36,472,338,000[66] - The company's statutory reserves amounted to RMB 2,235,432,000, derived from post-tax profits of its subsidiaries in China[66] - The capital injection reserve includes RMB 2,631,198,000 from the fair value of consideration in a reverse acquisition and RMB 6,661,831,000 from the fair value of consideration paid in a 2012 reverse acquisition[67] - The company's other reserves include RMB 4,030,633,000, primarily from the fair value adjustments of financial assets and treasury shares repurchased by a subsidiary[67] - Operating cash flow increased to RMB 1,425,425 thousand in 2024 from RMB 1,320,437 thousand in 2023, reflecting a growth of 7.9%[68] - Investment activities resulted in a net cash outflow of RMB 2,133,408 thousand in 2024, compared to a net cash inflow of RMB 1,105,089 thousand in 2023[68] - Revenue from sales of goods reached RMB 16,284,282 thousand in 2024, a slight increase from RMB 16,045,712 thousand in 2023[74] - Cash and cash equivalents decreased by RMB 2,996,677 thousand in 2024, compared to an increase of RMB 1,123,030 thousand in 2023[69] - Depreciation and amortization expenses totaled RMB 631,531 thousand, reflecting an increase from the previous year[83] - The company's income tax expense for the period was RMB 749,664 thousand, with a significant portion attributed to Chinese corporate income tax[85] - The company's subsidiaries in China benefit from a preferential tax rate of 15% for high-tech enterprises, applicable until 2026[85] - The company's deferred tax liability related to cumulative profits in China amounted to RMB 29,204,000 thousand, with no provision made for deferred tax[86] - Property, plant, and equipment increased to RMB 10,488,048 thousand as of June 30, 2024, from RMB 10,037,227 thousand in the same period of 2023[90] - Intangible assets grew to RMB 2,240,018 thousand as of June 30, 2024, compared to RMB 2,264,522 thousand in the same period of 2023[92] - Other financial assets, including investments in partnerships and funds, totaled RMB 3,403,702 thousand as of June 30, 2024, up from RMB 2,387,159 thousand at the end of 2023[93] - Trade receivables increased to RMB 6,343,176 thousand as of June 30, 2024, from RMB 5,869,223 thousand at the end of 2023[95] - The company's structured bank deposits offer a guaranteed return of up to 2.3% annually, with an expected total return of up to 3.0%[100] - Bank deposits and cash decreased to RMB 9,884,689 thousand as of June 30, 2024, compared to RMB 12,755,223 thousand as of December 31, 2023, with a significant drop in liquid assets from RMB 12,015,223 thousand to RMB 8,374,689 thousand[101] - Trade payables increased to RMB 2,543,392 thousand as of June 30, 2024, from RMB 2,426,115 thousand as of December 31, 2023, with a notable rise in overdue payables beyond 180 days to RMB 413,708 thousand[103] - Other payables, including deferred government grants and construction costs, totaled RMB 6,736,211 thousand as of June 30, 2024, up from RMB 6,377,997 thousand as of December 31, 2023[104] - Bank borrowings decreased to RMB 202,560 thousand as of June 30, 2024, from RMB 450,216 thousand as of December 31, 2023, with all borrowings classified as