CHINA NATIONAL MEDICINES CORP (600511) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ¥50.60 billion in 2024, up 1.81% year-over-year; net profit attributable to shareholders was ¥2.00 billion, down 6.80% year-over-year.

• Operating cash flow was ¥1.66 billion, a decrease of 39.15% from the previous year due to extended customer payment cycles and increased procurement payment pressure.

• Maintained leading market share in Beijing direct sales and national distribution, with strong performance in narcotic and specialty drugs.

• Continued digital transformation and compliance management, with enhanced risk controls and supply chain optimization.

Financial highlights

• Revenue: ¥50.60 billion (+1.81% YoY); net profit attributable to shareholders: ¥2.00 billion (-6.80% YoY).

• Gross margin: 7.02%; basic EPS: ¥2.6509; weighted ROE: 12.24%.

• Total assets: ¥34.93 billion (+7.63% YoY); net assets attributable to shareholders: ¥17.13 billion (+8.57% YoY).

• Operating cash flow: ¥1.66 billion (-39.15% YoY); capital expenditures and R&D investment increased.

• Quarterly net profit ranged from ¥459 million to ¥545 million; cash flow volatility due to market and policy factors.

Outlook and guidance

• Focus on core business, supply chain service enhancement, and market share consolidation in Beijing and nationwide.

• Continue digital and compliance transformation, strengthen risk management, and pursue high-quality growth.

• Expand specialty drug and narcotic drug business, and invest in R&D and new product launches.