CSPC Pharmaceutical Group (1093) H2 2024 earnings summary

Executive summary

• Revenue declined 7.8% year-over-year to RMB 29,009M, mainly due to lower finished drug sales.

• Underlying profit attributable to shareholders fell 25.4% to RMB 4,683M; reported profit dropped 26.3%.

• R&D expenses increased 7.5% year-over-year to RMB 5,191M, representing 21.9% of finished drug revenue.

• Five new drugs approved in 2024, with significant progress in clinical trials and licensing deals.

• 340 million shares repurchased in 2024, totaling over HK$1.7B; full-year dividend at HK26 cents per share.

Financial highlights

• Revenue: RMB 29,009M (down 7.8% year-over-year); gross profit: RMB 20,299M (down 8.5%).

• Gross margin: 70.0% (down 0.5pp year-over-year); net profit margin: 14.9%.

• Underlying EPS: 39.90 RMB cents (down 24.5%); reported EPS: 36.87 RMB cents (down 25.5%).

• Operating cash inflow increased to RMB 4,535M; current ratio at 2.3.

• Gearing ratio remained low at 1.2%; bank deposits and cash at RMB 9,187M.

Outlook and guidance

• Focus on innovative drug launches, AI-driven R&D, and clinical pipeline expansion.

• Multiple pivotal trials and regulatory submissions planned through 2027.

• Expects over 50 new drugs/indications to be submitted for approval by end-2028.

• Ongoing international licensing and commercialization partnerships.

• Continued investment in innovation and leveraging policy opportunities for growth.