李氏大药厂中期报告2024

2024INTERIM REPORT INTERIM FINANCIALSTATEMENTS The Directors present herewith the unauditedconsolidated interim financial results (the “InterimResults”) of the Group for the six months ended30 June 2024, together with the comparativefigures for the corresponding period in 2023. TheInterim Results are unaudited, but have beenreviewed by the Company’s auditor, ConfuciusInternationalCPA Limited(the“Auditor”)inaccordance with Hong Kong Standard on ReviewEngagements 2410 “Review of Interim FinancialInformation Performed by the Independent Auditorof the Entity” issued by the Hong Kong Institute ofCertified Public Accountants. The Audit Committeehas also reviewed with the management and theAuditor the Interim Results before recommending itto the Board for approval. 2410 BUSINESS REVIEW Revenue and Profit Building upon previous hurdles, during the first-half 2024, the pharmaceutical industry in themainland China continues to face new challengesfrom multiple angles. Pricing pressures stem fromthe industry’s shift towards a post-retail era,where retail prices influence medical pricing. Onthe marketing front, significant shifts are observedin the pharmaceutical and healthcare sectorsamidst anti-corruption campaigns. Additionally,the decrease in online transactions, linked to thescale back of spending, poses a bottleneck phasefor e-commerce platforms. Nevertheless, the agingpopulation in the region, alongside continuousinterlinked reforms in healthcare, health insurance,and pharmaceuticals, indicates decent potential inthe industry. 658,345,000512,308,00028.5%®56.8%®®187.2%232.1%® The Group’s first-half 2024 revenue amounted toHK$658,345,000, marking a considerable 28.5%increase from the same period last year’s figureofHK$512,308,000.This growth is primarilyattributed to the exceptional sales performanceof products listed on the updated NRDL. Notably,products such as Treprostinil Injection (®)demonstrated a remarkable growth of 56.8%,while Teglutik®surged by 187.2% and Trittico®by 232.1%. Furthermore, products selected underthe VBP program, including Nadroparin CalciumInjection (®) which experienced a staggeringtenfold increase in sales. These sales surge notonly drove revenue growth decently but also helpedmitigate the impact of certain stagnant productsales during the period under review. 38.9%46.9%61.1%53.1%6.6%47.9% The sales dynamics within the Group have beenexperiencing a significant transformation as thecontribution from licensed-in products continuesto decrease steadily, signaling a strategic shifttowards proprietary and generic products, primarilydriven by changes in the market environment. Inthe first-half 2024, sales of licensed-in productsrepresented38.9%of the Group’s revenue,down from 46.9% in the same period in 2023,while sales of proprietary and generic productsaccounted for 61.1% of revenue, up from 53.1% inthe same period in 2023. Revenue growth rate forthe Group’s licensed-in products, and proprietaryandgeneric products were 6.6%and 47.9%,respectively. 55.5%2.253.3%350,595,000284,463,00023.2% D e s p i t et h e l o w e r g r o s s p r o f i t m a r g i n o f53.3% in the first-half 2024, decreased by 2.2percentage points from 55.5% achieved in thefirst-half 2023, the Group’s overall gross profithas improved. First-half 2024 gross profit of theGroup was HK$350,595,000 (First-half 2023:HK$284,463,000), an increase of 23.2% comparedtothe same period last year.The Group hastransitioned towards providing a more extensivearray of products, incorporating lower-margingeneric products within the national reimbursementscheme and national VBP program. While this moveinitially led to a decrease in the overall gross profitmargin, this impact has been stabilised over time. 84,713,000113,634,00025.5%12.9%22.2%34,076,00048,798,00050,637,00064,836,000 R&D expenses represented new drugs developmentin major therapeutic areas such as cardiovascular,w o m a nh e a l t h ,p a e d i a t r i c s ,r a r e d i s e a s e s ,dermatology and obstetrics, as well as in oncologyunder a separate R&D arm within the Group.During the first-half 2024, the Group remainsfocused on optimising resource allocation amongprioritised R&D projects and maintaining efforts tosave costs. An aggregate of HK$84,713,000 hasbeen spent in the first-half 2024 (First-half 2023:HK$113,634,000), decreased by 25.5% comparedto the same period last year and represented12.9%to the corresponding revenue for theperiod (First-half 2023: 22.2%). Among whichHK$34,076,000 (First-half 2023: HK$48,798,000)h a sb e e n r e c o g n i s e d a s e x p e n s e s a n dHK$50,637,000 (First-half 2023: HK$64,836,000)has been capitalised as intangible assets. TheGroup selects new initiatives thoughtfully whileprevious R&D projects conclude over time, resultingin a decrease in R&D expenditure during the reviewperiod. 172,265,000146,931,00025,334,00017.2%26.2%28.7%2.5 The Group’s selling and distribution expenses wasHK$172,265,000 in the first-half 2024, representi