CSPC Pharmaceutical Group (1093) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 1.7% to RMB31.45B; underlying profit attributable to shareholders increased 2.8% to RMB6.275B, while reported profit fell 3.6% to RMB5.873B.

• Finished drugs drove growth, led by nervous-system and anti-infective products; weaker vitamin C pricing and lower gross margin weighed on results.

Financial highlights

• Revenue was RMB31,450M versus RMB30,937M in 2022, up 1.7%; gross profit was RMB22,177M, down 0.4%.

• R&D expenses rose 21.2% to RMB4,831M; underlying profit attributable to shareholders increased 2.8% to RMB6,275M.

• Reported profit attributable to shareholders declined 3.6% to RMB5,873M from RMB6,091M.

Outlook and guidance

• More than 50 new drugs or indications are expected to be approved over the coming five years; the launch plan spans 2024–2028.

• 17 generic-product marketing applications were filed, with approvals expected in 2024–2025; more than 20 additional candidates are in pharmaceutical research for potential 2026–2027 approvals.

• Pipeline includes 40+ biologic drugs, 40+ small-molecule new drugs and 30+ new formulations under development.