Revenue and Financial Performance - Total revenue for 2023 reached RMB 6.608 billion, a 4.5% increase from RMB 6.324 billion in 2022[6] - Revenue from innovative drug business was RMB 4.756 billion, accounting for 72.0% of total revenue, a 15.2% increase from RMB 4.128 billion in 2022[6] - Revenue from the oncology field was RMB 1.576 billion, accounting for 23.9% of total revenue, a 10.2% increase from 2022[6] - Revenue from the autoimmune field was RMB 1.415 billion, accounting for 21.4% of total revenue, a 10.5% increase from 2022[6] - Revenue from other fields was RMB 1.648 billion, accounting for 24.9% of total revenue, a 22.3% increase from 2022[6] - Net profit attributable to equity shareholders was RMB 715 million, a 23.2% decrease from RMB 931 million in 2022[6] - Basic earnings per share were RMB 0.27, a 25.0% decrease from RMB 0.36 in 2022[6] - The company's innovative drug business accounted for 72.0% of total revenue in 2023, up from 35% five years ago[8] - Net profit attributable to equity shareholders in 2023 was approximately RMB 715 million, a decrease of RMB 216 million (23.2%) compared to RMB 931 million in 2022[64] - Cash and cash equivalents as of December 31, 2023, were approximately RMB 2.007 billion, up from RMB 1.658 billion in 2022[65] - The company's asset-liability ratio was 33.5% as of December 31, 2023, slightly down from 33.7% in 2022[65] - The company declared a final dividend of RMB 0.16 per share for 2023, totaling approximately RMB 417.56 million[72] - The company's bank loan balance as of December 31, 2023, was approximately RMB 1.221 billion, with RMB 1.015 billion due within one year[65] - The company's fixed deposit balance decreased significantly to RMB 12 million as of December 31, 2023, from RMB 975 million in 2022[65] - The company's pledged assets as of December 31, 2023, included RMB 76 million in receivables and RMB 53 million in bank deposits[66] - Available distributable reserves as of December 31, 2023, were RMB 132,582,000, down from RMB 252,418,000 in 2022[83] R&D and Innovation - R&D expenses were RMB 1.563 billion, a 9.6% decrease from RMB 1.728 billion in 2022, accounting for 23.7% of total revenue[6] - The company's R&D investment exceeded RMB 7 billion over the past five years[8] - The company has 14 products included in over 100 guidelines and pathways issued by government agencies or authoritative professional societies[7] - The company has a total of 1,000 R&D personnel, including approximately 170 PhDs and 490 master's degree holders[7] - The company plans to launch five to six innovative drugs in the next three years[8] - The company has an innovative product pipeline of over 60 new drugs, with 15 innovative drugs currently undergoing registration clinical studies[12] - Three new drug molecules are in the NDA or Phase III clinical research stage: Xianbixin® sublingual tablets, Enzesu® (Suvizumab for Injection), and Daliresin Hydrochloride Tablets[12] - Seven new preclinical candidate compounds (PCC) were added in 2023, including SIM0500, SIM0501, SIM0505, SIM0508, SIM0810, SIM0391, and SIM0682[12] - Six new indications/combinations entered clinical trials in 2023, including SIM0270, SIM0235, Xianbixin®, SIM0348, SIM0237, and Xianbixin® sublingual tablets[12] - Six first-in-human (FIH) trials were achieved in 2023, including SIM0237, SIM0348, Xianbixin®, SIM0278, Xianbixin® sublingual tablets, and Daliresin[12] - Enzesu® (Suvizumab for Injection) achieved the primary endpoint in a Phase III clinical trial for recurrent platinum-resistant epithelial ovarian cancer, fallopian tube cancer, and primary peritoneal cancer[13] - Xianbixin® sublingual tablets showed a significant improvement in functional outcomes for acute ischemic stroke patients compared to placebo (64.4% vs. 54.7%)[13] - The company's total R&D investment in 2023 was approximately RMB 1.96 billion, a 1.2% increase from 2022[15] - R&D expenses in 2023 were approximately RMB 1.563 billion, a 9.6% decrease from 2022[15] - New intangible assets from licensed rights in 2023 were approximately RMB 397 million, an 89.4% increase from 2022[15] - The company plans to accelerate the implementation of Innovation Strategy 2.0 in 2024, focusing on maximizing the value of innovation in China and expanding global innovation capabilities[16] - The company currently has six commercialized innovative drugs and nearly 60 innovative drug pipelines, with 15 new drug molecules undergoing registration clinical studies, including three in NDA or Phase III, 12 in Phase I/II, and approximately 40 in preclinical stages[17] - The company's innovative drug pipeline includes monoclonal antibodies, bispecific antibodies, multi-antibodies, fusion proteins, ADCs, and small molecule drugs, with significant clinical and commercialization potential[17] - The company has completed the construction of a new API base and antibody factory to enhance production efficiency and cost advantages, supporting pipeline expansion and market competitiveness[16] - The company is actively seeking external licensing opportunities and collaborating with industry partners to drive innovation and achieve win-win outcomes[16] - The company aims to improve R&D and business development (BD) capabilities, focusing on differentiated mechanisms, targets, and drug forms to enhance clinical value and pipeline synergy[16] - The company is committed to upgrading management and improving R&D and marketing operational efficiency to explore sustainable innovation development paths[16] - The company's drug Xianbixin® has been included in multiple clinical guidelines and consensus documents in China, and its Phase III clinical trial results were published in the international medical journal "STROKE"[21] - The TASTE II study for Xianbixin® completed follow-up of the last patient, enrolling over 1,300 AIS patients within 24 hours of onset, with results expected to be published in academic journals or conferences[23] - Xianbixin® is the only Class IIa recommended brain cell protection drug in the "Chinese Clinical Management Guidelines for Cerebrovascular Diseases (2nd Edition)" based on positive results from the TASTE study[23] - The EXPAND study for Xianbixin® completed enrollment of 4,750 AIS patients, with preliminary results selected for presentation at the 2024 ESOC conference[23] - Xianbixin® covered approximately 1.07 million patients and over 5,000 medical institutions as of December 31, 2023[23] - The company's drug Xianbixin® (edaravone dexborneol injection) has been approved for a new indication for intracerebral hemorrhage (ICH) and has initiated a Phase II clinical trial, with over 80 patients enrolled as of the report date[21][22] Product Performance and Market Coverage - The company's product Xiannuoxin® (Xiannuotewei tablets/Ritonavir tablets combination package) has covered 31 provinces, 306 cities, and over 3,800 medical institutions, benefiting 670,000 patients[11] - The company's product Xianbixin® (Edaravone Dexborneol Injection Concentrate) has benefited approximately 1.07 million patients and covered about 5,000 medical institutions[10] - The company's product Aidisin® (Ailamod Tablets) saw a year-on-year growth of approximately 21% in benefiting Chinese rheumatoid arthritis patients[11] - The company's product Kecera® (Trilaciclib Hydrochloride for Injection) achieved commercialization in China and was approved for regular marketing on October 27, 2023[10] - The company's marketing network covers over 2,800 tertiary hospitals, approximately 17,000 other hospitals and medical institutions, and over 200 large national or regional chain pharmacies[7] - Endostar® (recombinant human endostatin injection) was included in the national medical insurance drug list in 2017 and is recommended in multiple clinical practice guidelines for NSCLC[25] - Two studies on Endostar® combined with immunotherapy presented at the 2023 ASCO annual meeting showed promising results for first-line and second-line treatment of advanced NSCLC[25] - The ENPOWER study presented at the 2023 WCLC showed that Endostar® combined with PD-1 inhibitors and chemotherapy provided good clinical efficacy and tolerable toxicity for EGFR/ALK-negative advanced NSCLC[26] - Envafolimab® (Envarsus®) was included in six important CSCO guidelines for 2023, including gastric cancer, colorectal cancer, and endometrial cancer[28] - Envafolimab® studies on liver cancer and rectal cancer were selected for poster presentations at the 2023 ASCO Gastrointestinal Cancers Symposium[28] - Endostar® was recommended in the 2023 Chinese Expert Consensus on Malignant Pleural Effusion Treatment and the 2024 Expert Consensus on Diagnosis and Treatment of Lung Cancer with Malignant Pleural Effusion[27] - Envida® (Envafolimab) was recommended for the treatment of advanced/recurrent gynecological tumors with MSI-H/dMMR in the "Guidelines for Clinical Application of Immune Checkpoint Inhibitors in Gynecological Tumors (2023 Edition)" based on CN006 study (2B evidence)[29] - At the 2023 ASCO Annual Meeting, two Envida®-related studies were presented, showing promising efficacy in gastric cancer and soft tissue sarcoma, particularly in combination with SOX (oxaliplatin and tegafur) for PD-L1-positive advanced gastric adenocarcinoma[29] - Envida® was recommended for advanced/recurrent endometrial cancer with MSI-H/dMMR in the "Chinese Medical Association Gynecological Oncology Clinical Guidelines 7th Edition (2023)" (2B evidence)[29] - Three Envida® clinical studies were presented at the 23rd World Conference on Lung Cancer (WCLC), showing efficacy and tolerability in combination with Endostar® for PD-L1≥1% advanced NSCLC, and promising results in combination with Endostar® and β-glucan for immunotherapy-resistant NSCLC[29] - Five Envida® studies were presented at the 2023 ESMO Congress, demonstrating antitumor efficacy and safety in hepatocellular carcinoma, NSCLC, and colorectal cancer cohorts, as well as in combination with lenvatinib for PD-1-resistant NSCLC[29] - Cosela® (Trilaciclib) reduced the incidence of ADC-related adverse events by more than 50% in a Phase II trial for unresectable locally advanced or metastatic triple-negative breast cancer (TNBC)[31] - A population pharmacokinetic analysis of Trilaciclib in extensive-stage small cell lung cancer (ES-SCLC) showed stable myeloprotection at the recommended dose (240mg/m2) without dose adjustment based on age, sex, or liver/kidney function[31] - Trilaciclib combined with Sacituzumab Govitecan (SG) in a Phase II study for metastatic TNBC (mTNBC) showed potential to reduce adverse events such as neutropenia, anemia, nausea, and diarrhea[31] - Trilaciclib was recommended in the "Chinese Medical Association Lung Cancer Clinical Diagnosis and Treatment Guidelines (2023 Edition)" for prophylactic use before chemotherapy to reduce chemotherapy-induced myelosuppression (Class 1 evidence)[32] - Cosela® received NMPA approval for routine marketing and localization production in China, enhancing accessibility for Chinese cancer patients[32] - Aidi Xin (Iguratimod Tablets) was included in the National Medical Insurance Drug Catalog in 2017 and is recommended as a primary treatment for active rheumatoid arthritis by multiple clinical practice guidelines[33] - Seven research achievements related to Iguratimod were released at the 2023 EULAR conference, covering indications such as rheumatoid arthritis (RA), secondary osteoporosis, and osteoarthritis (OA)[33] - A study published in August 2023 in *Frontiers in Immunology* showed that Tofacitinib combined with Iguratimod is more effective than Methotrexate/Leflunomide in treating RA-related interstitial lung disease (RA-UIP)[33] - Iguratimod was included in the 2023 edition of the *Primary Sjögren's Syndrome Diagnosis and Treatment Guidelines* and the *Chinese Clinical Practice Guidelines for Off-label Drug Use in Sjögren's Syndrome (2023 Edition)*[34] - Xiannuoxin (Xiannuotavir/Ritonavir Combination) was conditionally approved by the NMPA on January 28, 2023, for treating mild to moderate COVID-19 in adults[35] - Xiannuoxin was temporarily included in the medical insurance payment scope on February 8, 2023, and later officially included in the 2023 National Medical Insurance Drug Catalog, with the price reduced to RMB 479 per box/course[35][37] - Two real-world studies of Xiannuoxin involving approximately 2,200 patients were initiated in April 2023[36] - Xiannuoxin was ranked first among domestic COVID-19 small-molecule antiviral drugs with a total score of 70.1 in the *COVID-19 Small-Molecule Antiviral Drug Evaluation and Selection Expert Consensus* released by the Guangdong Pharmaceutical Association in September 2023[36] - The storage conditions for Xiannuoxin were updated to "sealed, stored at no more than 30°C," and its shelf life was extended from 12 months to 18 months on August 24, 2023[36] - The discovery process and preclinical research results of Xiannuotavir, the active ingredient of Xiannuoxin, were published online in *Nature Communications* on October 13, 2023[36] - Xiannuoxin® significantly reduced the median time to sustained recovery of 11 target COVID-19 symptoms by 35.8 hours in the mITT1 population and by 60.4 hours in the subgroup with high-risk factors[38] - Xiannuoxin® reduced viral load by 96.9% (-1.51log10 copies/mL) compared to the placebo group on day 5 of treatment in the mITT1 population[38] - Xiannuoxin® demonstrated good safety with a slightly higher incidence of adverse events compared to the placebo group, most of which were mild or moderate and resolved without intervention[38] - Xiannuoxin® was included in a study with a median patient age of 35 years, and 95.9% of patients had completed their first vaccination, with 76.7% receiving a booster dose[38] - Xianbixin® sublingual tablets showed a significant improvement in functional outcomes (mRS score 0-1) in 64.4% of patients compared to 54.7% in the placebo group at 90 days post-treatment[40] - Xianbixin® sublingual tablets demonstrated consistent benefits across various subgroups including age, gender, time to treatment, and medical history[40] - Suvexituzumab (Enzeshu®) achieved the primary endpoint of PFS in the SCORES study, showing statistically and clinically significant improvement compared to the placebo group[41] - Suvexituzumab (Enzeshu®) showed a trend towards OS benefit, although the data is not yet mature[41] - Enlituo® (EGFR) received NDA acceptance in China for the treatment of metastatic colorectal cancer, potentially becoming the first domestically produced anti-EGFR monoclonal antibody in the Chinese market[42] - The company secured exclusive commercialization rights for Enlituo® in mainland China through a partnership with Mabpharm[42] - DORA (Daridorexant) has completed Phase III clinical trials overseas, showing significant improvement in sleep onset, maintenance, and total sleep time compared to placebo, with no changes in sleep structure. It has also demonstrated good safety and tolerability, with no evidence of dependency, rebound insomnia, withdrawal symptoms, or drug abuse[43] - DORA has been approved for marketing in the US, UK, Italy, Germany, Switzerland, and Canada, and is the only DORA-class insomnia drug approved by the EMA for improving daytime function[43] - DORA achieved FPI (First Patient In) in its Phase I clinical study in China on November 30, 2023, and FPI in its Phase III clinical study in China on December 17, 2023, involving 33 centers[44] - LNK01001, a selective JAK1 inhibitor, achieved positive top-line data in a Phase II clinical study for active ankylosing spondylitis (AS) on August 23, 2023, and FPI in a Phase III study for rheumatoid arthritis on December 20, 2023[44] - ADC189, an anti-influenza PA inhibitor, has completed Phase III clinical trials for adult/adolescent influenza and received clinical approval for pediatric granules in February 2024[45] - Rademikibart (IL-4Rα) is undergoing clinical trials in China for atopic dermatitis and asthma, with exclusive rights for development, production, and commercialization in Greater China secured through a partnership with Connect Biopharma[45] - SIM0270, a second-generation SERD inhibitor, has completed dose escalation and expansion phases in combination therapy for estrogen receptor-positive breast cancer[46] - SIM0335, a topical ointment targeting IL-17A-related pathways, completed Phase IIa clinical trials for plaque psoriasis in January 2023, with low systemic exposure and minimal safety risks[46] - SIM0235, a humanized TNFR2 monoclonal antibody, has shown significant single-agent efficacy and potential for combination with PD-1 in preclinical models, with clinical trials progressing smoothly in both China and the US for recurrent or refractory advanced solid tumors and cutaneous T-cell lymphoma (CTCL)[47] - SIM0237, a PD-L1/IL15v bispecific antibody, has demonstrated superior efficacy in preclinical studies compared to PD-L1 and IL-15 monotherapies, with Phase I trials for advanced solid tumors underway in both China and the US[47][48] - SIM0501, a USP1 small molecule inhibitor, has shown significant anti-proliferative activity in HRD tumors in preclinical studies, with IND approvals from

Investment Rating - Buy rating with a current price of HKD 5.41 and a target price of HKD 11.79 [1] Core Views - The company reported 2023 revenue of RMB 6.608 billion, a 4.5% YoY increase, driven by rapid growth in innovative drug revenue, which reached RMB 4.756 billion (+15.2% YoY), accounting for 72% of total revenue [3] - R&D, sales, and management expenses were RMB 1.563 billion (-9.6% YoY), RMB 2.356 billion (-1.9% YoY), and RMB 499 million (+12.4% YoY), respectively, with expense ratios of 23.7%, 35.7%, and 7.6%, showing a stable or declining trend [3] - Net profit attributable to shareholders was RMB 715 million (-23.2% YoY), mainly affected by changes in the fair value of financial assets [3] - Revenue from the nervous system field was RMB 1.969 billion (-13.1% YoY), accounting for 29.8% of total revenue, primarily due to price reductions for Xianbixin injections [3] - Revenue from the oncology field was RMB 1.576 billion (+10.2% YoY), accounting for 23.9% of total revenue, while revenue from the autoimmune field was RMB 1.415 billion (+10.5% YoY), accounting for 21.4% of total revenue, driven by the growth of Aidexin [3] Revenue Breakdown by Segment - Oncology: Revenue of RMB 1.576 billion in 2023, expected to grow at a CAGR of 30% over the next three years, driven by the expansion of Endostar indications, localization of Cosela, and market share growth of Envida [6] - Central Nervous System: Revenue of RMB 1.969 billion in 2023, expected to recover growth as the impact of Xianbixin price reductions diminishes, with new products like Xianbixin sublingual tablets and Dalireson expected to contribute to growth [6] - Autoimmune: Revenue of RMB 1.415 billion in 2023, driven by Aidexin sales, which is recommended in clinical guidelines for rheumatoid arthritis and primary Sjögren's syndrome [6] - Other Products: Revenue of RMB 1.648 billion in 2023, expected to grow at a CAGR of 8% over the next three years [6] Financial Projections - Revenue is expected to grow to RMB 7.621 billion, RMB 8.860 billion, and RMB 10.069 billion in 2024, 2025, and 2026, respectively, with YoY growth rates of 15.3%, 16.3%, and 13.7% [4] - Net profit attributable to shareholders is projected to be RMB 1.108 billion, RMB 1.346 billion, and RMB 1.587 billion in 2024, 2025, and 2026, respectively, with YoY growth rates of 55.0%, 21.6%, and 17.8% [4] - EPS is expected to be RMB 0.42, RMB 0.52, and RMB 0.61 in 2024, 2025, and 2026, respectively [4] Valuation - The company is valued at 25x PE for 2024, with a target price of HKD 11.79 per share [4] - The company's gross margin is expected to increase to nearly 80% due to the localization of Cosela and the higher proportion of high-margin innovative drug revenue [8]

Investment Rating - Buy (Maintained) with a target price of HKD 7.62 [1] Core Views - The company is entering a period of intensive product launches, with a strong pipeline of innovative drugs [2] - Revenue in 2023 reached RMB 6.61 billion (+4.5%), while net profit was RMB 710 million (-23.2%) [2] - The proportion of innovative drugs continues to rise, accounting for 72% of total revenue in 2023 [2] - The company has six innovative drugs in the commercialization stage, with several key products expected to be approved in 2024 [2] Revenue Breakdown by Segment - **Neurology**: Revenue of RMB 1.97 billion (-13.1%), accounting for 29.8% of total revenue [2] - **Oncology**: Revenue of RMB 1.58 billion (+10.2%), accounting for 23.9% of total revenue [2] - **Autoimmune**: Revenue of RMB 1.42 billion (+10.5%), accounting for 21.4% of total revenue [2] - **Other Segments**: Revenue of RMB 1.65 billion (+22.3%), accounting for 24.9% of total revenue [2] Key Product Developments - **Xianbixin Sublingual Tablets**: NDA accepted by NMPA in June 2023, expected to meet clinical needs for stroke treatment [2] - **Enlituo (CMAB009)**: Expected to be approved for colorectal cancer in H2 2024 [2] - **Suvizumab**: Submitted for NDA in March 2024 for recurrent ovarian cancer [2] - **ADC189**: Expected to submit NDA in 2024 [2] R&D Pipeline Progress - **Xianbixin for Cerebral Hemorrhage**: Phase II clinical trials ongoing with over 80 subjects enrolled [2] - **Daliresen**: Phase III clinical trials completed in March 2024, NDA expected in H2 2024 [2] - **Lederceptib**: Exclusive rights obtained for development, production, and commercialization in Greater China [2] Financial Forecasts - **Revenue**: Expected to reach RMB 7.56 billion, RMB 8.6 billion, and RMB 9.78 billion in 2024, 2025, and 2026 respectively [2][7] - **Net Profit**: Expected to grow to RMB 974.65 million, RMB 1.28 billion, and RMB 1.69 billion in 2024, 2025, and 2026 respectively [3] - **EPS**: Forecasted at RMB 0.37, RMB 0.49, and RMB 0.65 for 2024, 2025, and 2026 respectively [3] Valuation and Peer Comparison - The company's 2024 PE ratio is 13.2x, lower than the industry average of 17.4x [8] - Comparable companies include CSPC Pharmaceutical Group, Sino Biopharmaceutical, and Hansoh Pharmaceutical [9] - The company is valued at a 19x PE ratio, supporting the target price of HKD 7.62 [8]

Investment Rating - Buy (Maintained) [1] Core Views - The company's performance is under short-term pressure, but the high growth driven by innovative drugs is becoming more certain [1] - Revenue in 2023 reached 6,640 million yuan (YoY +4.3%), with drug sales and promotion services contributing 6,567 million yuan [2] - Innovative drug revenue was approximately 4,756 million yuan (YoY +15.2%), accounting for 72.0% of total revenue (65.3% in 2022) [2] - Net profit attributable to the parent company was 715 million yuan (YoY -23.4%), impacted by fair value losses in the investment portfolio and one-time income from the disposal of subsidiaries [2] - Operating net profit attributable to the parent company was 757 million yuan (YoY +12.3%), showing steady growth [2] - R&D and sales expenses accounted for 23.7% and 35.7% of revenue, respectively, with both declining for three consecutive years, indicating improved operational efficiency and economies of scale [2] Financial Forecasts and Valuation - Revenue is expected to grow to 7,550 million yuan in 2024E, 8,900 million yuan in 2025E, and 10,600 million yuan in 2026E [2] - Net profit attributable to the parent company is forecasted to be 945.85 million yuan in 2024E, 1,244.75 million yuan in 2025E, and 1,635.91 million yuan in 2026E [2] - EPS is projected to be 0.36 yuan in 2024E, 0.48 yuan in 2025E, and 0.63 yuan in 2026E [2] - P/E ratios are estimated at 15.01x for 2024E, 11.41x for 2025E, and 8.68x for 2026E [2] Business Segments Neuroscience - Neuroscience revenue in 2023 was 1,970 million yuan (YoY -13%), accounting for 30% of product revenue [3] - Xianbixin has digested the impact of price reductions, with hospital listings (+26.7%) and patient numbers (+21.6%) showing steady growth [3] - Xianbixin sublingual tablets received NDA approval in June 2023, and the Xianbixin series is expected to be applied in the full course of stroke treatment [3] - Daridorexant, an anti-insomnia innovative drug, is expected to submit NDA in Q3 2024 [3] - SIM0801 (QPCT) for Alzheimer's disease is in global Phase II trials, and SIM0800 (AQP4) for brain edema is in Phase 1a trials [3] Oncology - Oncology revenue in 2023 was 1,580 million yuan (YoY +10%), accounting for 24% of total revenue [3] - The "Endu + Envida" product combination continues to grow steadily, and the new product Kosela has shown initial success in market expansion [3] - Kosela, a first-in-class full-line bone marrow protection drug, is widely recommended in multiple guidelines and has broad prospects for ADC and IO combination therapies [3] - External collaborations are accelerating commercialization, with EGFR monoclonal antibody CMAB009 expected to launch in 2024 and VEGF antibody Suvaxeta expected to submit NDA in 2024 [3] - High-potential innovative products include SIM0270 (SERD), SIM0500 (GPRC5D-BCMA-CD3), SIM0501 (USP1), and SIM0237 (PDL1/IL15v) [3] - ADC pipeline includes SIM0508 (CDH6-ADC) and SIM0686 (FGFR2b-ADC) with differentiated layouts [3] Autoimmune and Anti-Infective - Autoimmune and anti-infective revenue in 2023 was 1,600 million yuan (YoY +44%), accounting for 24% of total revenue [3] - The company has a deep layout in rheumatoid arthritis (RA) treatment, with Aitoxin maintaining growth [3] - Key targets in the autoimmune field include IL4R (Lederchibai, IL4Rα), IL17 (SIM335, IL17A), URAT1 (SIM295, URAT1), and JAK1 (LNK01001, JAK1) [3] - The anti-infective segment is in the initial construction phase, with Xiannuoxin quickly entering the market and BIC new drug ADC189 expected to bring new growth [3] Financial Ratios - ROIC is expected to increase from 8.23% in 2023A to 14.04% in 2026E [9] - ROE is projected to rise from 9.90% in 2023A to 14.81% in 2026E [9] - Gross margin is forecasted to remain stable at around 75-77% from 2023A to 2026E [9] - Net profit margin is expected to increase from 10.82% in 2023A to 15.43% in 2026E [9] - Debt-to-asset ratio is projected to decrease from 33.45% in 2023A to 28.35% in 2026E [9] Market Data - Closing price: HKD 5.44 [5] - 52-week low/high: HKD 4.94/10.42 [5] - P/B ratio: 1.98x [5] - Market capitalization: HKD 14,197.10 million [5] Key Financial Data - Total assets: 10,853.67 million yuan in 2023A, expected to grow to 15,404.96 million yuan in 2026E [8] - Total liabilities: 3,630.93 million yuan in 2023A, expected to increase to 4,367.16 million yuan in 2026E [8] - Shareholders' equity: 7,222.74 million yuan in 2023A, expected to grow to 11,049.24 million yuan in 2026E [8]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 11.50, indicating a potential upside of 109.4% from the current closing price of HKD 5.49 [1][12]. Core Insights - The company's performance in 2023 met expectations, with a revenue increase of 4.5% year-on-year to RMB 6.608 billion, while net profit decreased by 23.2% to RMB 715 million due to one-time losses from investments [1]. - The management has provided guidance for 2024, projecting a revenue growth of 10-15% and a 30% increase in operating net profit, with gross margin expected to recover to around 79% [1][2]. - The proportion of revenue from innovative drugs is expected to rise from 72% in 2023 to 80% by 2026, driven by the anticipated launch of five new products in the next two years [2]. - The company plans to enhance shareholder returns, proposing a dividend of RMB 0.16 per share, corresponding to a payout ratio of 59% [2]. Financial Summary - Revenue for 2023 was RMB 6.608 billion, with projections for 2024, 2025, and 2026 at RMB 7.783 billion, RMB 9.372 billion, and RMB 10.474 billion respectively, reflecting year-on-year growth rates of 17.8%, 20.4%, and 11.8% [5][13]. - The net profit for 2023 was RMB 715 million, with forecasts of RMB 1.013 billion for 2024, RMB 1.307 billion for 2025, and RMB 1.627 billion for 2026, indicating significant recovery and growth [5][13]. - The company’s gross margin is projected to improve, with estimates of 78.5% for 2024 and 79.0% for 2025 [8][13]. Research and Development Focus - Key R&D catalysts for 2024 include the completion of Phase III trials for several products, including a treatment for insomnia and a drug for triple-negative breast cancer [6]. - The company is focusing on differentiated products and unmet clinical needs, with plans to continue its development of innovative therapies [6].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Simcere Pharmaceutical Group Limited 先聲藥業集團有限公司 （於香港註冊成立的有限公司） 2096 （股份代號： ） 截至2023年12月31日止年度之全年業績公告 財務摘要 截至2023年12月31日止年度： ‧ 本集團收入約人民幣66.08億元，較2022年人民幣63.24億元增長約4.5%。其 中藥品銷售及推廣服務收入人民幣65.67億元，對外許可收入人民幣0.28億 元，研發服務收入人民幣0.13億元。 ‧ 創新藥業務收入約人民幣47.56億元，佔總收入的72.0%，較2022年人民幣 41.28億元增長約15.2%。 ‧ 本集團收入主要來自業務聚焦的治療領域。其中，神經系統領域收入約人 民幣19.69億元，佔總收入的29.8%，較2022年下降約13.1%；腫瘤領域收入約 人民幣15.76億元，佔總收入的23.9%，較2022年增長約10.2%；自身免疫領 ...

Revenue and Profit Growth - Revenue for the six months ended June 30, 2023, was approximately RMB 3.379 billion, an increase of about 25.2% compared to RMB 2.700 billion for the same period in 2022[5] - Profit attributable to equity shareholders for the period was approximately RMB 2.275 billion, a significant increase from RMB 64 million in the same period of 2022[5] - Basic earnings per share were approximately RMB 0.87, a substantial increase from RMB 0.02 in the same period of 2022[5] - The group reported a revenue growth of approximately 25.2% for the first half of 2023, reaching RMB 24.13 billion, with innovative drug revenue accounting for 71.4% of total revenue[10] - The group recorded a profit attributable to equity shareholders of approximately RMB 2.275 billion for the six months ended June 30, 2023, a significant increase from RMB 64 million in the same period of 2022[62] - The increase in profit is primarily due to a fair value change in the investment portfolio, resulting in a pre-tax net gain of approximately RMB 1.149 billion, compared to a loss of approximately RMB 331 million in the same period of 2022[62] Innovative Drug Development - Innovative drug revenue was approximately RMB 2.413 billion, accounting for 71.4% of total revenue, and increased by about 36.6% from RMB 1.767 billion in the same period of 2022[5] - The company has six innovative drugs approved for sale and 14 products included in over 100 guidelines published by government agencies or authoritative professional societies as of June 30, 2023[6] - The group has six innovative drugs in the commercialization stage, with the recent acceptance of a new drug application (NDA) for the sublingual form of Xianbixin®[10] - The group has over 60 innovative drug candidates in its pipeline, with three new NDAs and three new molecular INDs approved recently[11] - The group established a Scientific Advisory Board (SAB) to enhance early drug discovery and clinical development with leading global scientists[7] - The company is advancing the commercialization of innovative drugs, with a focus on high clinical value and compliance in operations[9] Research and Development - Research and development expenses were approximately RMB 776 million, an increase of about 19.1% from RMB 652 million in the same period of 2022[5] - The company has established research and development innovation centers in Shanghai, Nanjing, Beijing, and Boston, with approximately 1,000 R&D personnel[6] - The company is focused on research and development in pharmaceuticals, with a commitment to expanding its product offerings and market presence[109] Market Presence and Distribution - The marketing network covers over 2,800 tertiary hospitals and approximately 17,000 other hospitals and medical institutions across China[6] - The company has five drug production bases that comply with China's GMP requirements, with some production lines certified by EU GMP or inspected by the FDA[6] - The company aims to enhance market share and accessibility of existing products through specialized promotion and multi-channel development in the current fiscal year[61] Financial Position and Assets - Total assets as of June 30, 2023, amounted to RMB 10,184,363 thousand, up from RMB 7,817,385 thousand at the end of 2022, indicating strong asset growth[102] - Cash and cash equivalents increased to RMB 2,446,295 thousand from RMB 1,657,600 thousand, showing improved liquidity[102] - The company's non-current assets totaled RMB 6,800,125 thousand, compared to RMB 5,327,329 thousand at the end of 2022, reflecting ongoing investment in long-term assets[102] Shareholder and Equity Information - The total issued shares amount to 2,664,045,618[77] - The major shareholder, Ren Yong, holds 1,847,347,913 shares, representing 69.34% of the total shares[74] - The company has a family trust structure involving multiple stakeholders, including Ren Yong and Li Shimon[77] - The company has maintained compliance with the Corporate Governance Code throughout the reporting period[86] Legal and Compliance Matters - The company remains vigilant regarding potential legal claims, with a current litigation involving a subsidiary amounting to approximately RMB 200 million, but does not anticipate a negative court ruling[65] - The company is currently facing a legal claim for approximately RMB 200,000,000 related to a raw material supply arrangement, but management does not anticipate a negative ruling[168] Dividend and Share Repurchase - The board has decided not to declare any interim dividend for the six months ended June 30, 2023[92] - The company declared a dividend distribution of RMB 419,218 thousand during the reporting period[107] - The company repurchased a total of 7,043,000 shares at a total cost of HKD 53,079,460, representing 10% of the issued shares as of the 2022 Annual General Meeting[90] Other Financial Metrics - The company reported a significant increase in inventory, which rose to RMB 673,442 thousand from RMB 302,373 thousand, indicating potential growth in sales[100] - The company recognized a tax expense of RMB 51,346,000 for the six months ended June 30, 2023, compared to a tax benefit of RMB 9,398,000 in the same period of 2022[121] - The company reported a net cash outflow from financing activities of RMB (484,364) thousand, compared to RMB (293,446) thousand in the same period last year[108]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Simcere Pharmaceutical Group Limited 先聲藥業集團有限公司 （於香港註冊成立的有限公司） （股份代號：2096） 截至2023年6月30日止六個月中期業績公告 財務摘要 截至2023年6月30日止六個月，本集團錄得以下未經審核的財務業績： • 收入約人民幣33.79億元，較2022年同期人民幣27.00億元增長約25.2%。收 入增長主要歸因於創新藥收入快速上漲。 • 創新藥收入約人民幣24.13億元，佔總收入的71.4%，較2022年同期人民幣 17.67億元增長約36.6%。 • 收入主要來自本集團業務聚焦的治療領域。其中，神經系統領域收入約人 民幣10.55億元，佔總收入的31.2%，較2022年同期下降約1.5%；腫瘤領域收 ...

先聲藥業集團有限公司 （於香港註冊成立的有限公司） 股份代號: 年 報 2022 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Simcere Pharmaceutical Group Limited 先聲藥業集團有限公司 （於香港註冊成立的有限公司） 2096 （股份代號： ） 2022 12 31 截至 年 月 日止年度之全年業績公告 財務摘要 截至2022年12月31日止年度： • 本集團收入約人民幣63.19億元，較2021年人民幣50.00億元增長約26.4%。 其中藥品銷售及推廣服務收入人民幣62.13億元，對外許可收入人民幣1.06 億元。收入增長主要歸因於創新藥業務收入快速上漲。 • 創新藥業務收入約人民幣41.28億元，佔總收入的65.3%，較2021年人民幣 31.20億元增長約32.3%。 • 收入主要來自業務聚焦的治療領域。其中，神經系統領域收入約人民幣 22.67億元，佔總收入的35.9%，較2021年增長約41.0%；腫瘤領域收入約人 民幣14.30億元，佔總收入的22.6%，較2021年增長約15. ...