GIANT BIOGENE (2367) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 reached RMB2,540.4 million, up 58.2% year-over-year, driven by product expansion, channel deepening, and strong marketing.

• Net profit for the period was RMB980.6 million, a 47.2% increase year-over-year, with adjusted net profit at RMB1,026.6 million.

• Comfy brand led growth with revenue of RMB2,070.9 million, up 68.6% year-over-year, while Collgene grew 23.6% to RMB396.1 million.

• The company maintained its leadership in recombinant collagen, launched new flagship products, and expanded omni-channel operations.

• Direct sales accounted for 72.4% of revenue, with online DTC stores contributing 63.1% of total revenue.

Financial highlights

• Gross profit rose 54.9% to RMB2,093.2 million, with gross margin slightly decreasing to 82.4% due to expanded product types and higher costs.

• Cash and cash equivalents rose 82.3% to RMB4,564.4 million as of 30 June 2024.

• R&D expenses grew 43.2% to RMB48.7 million, representing 1.9% of revenue.

• Selling and distribution expenses rose 60.7% to RMB892.0 million, mainly from online marketing expansion.

• No outstanding bank loans or borrowings; gearing ratio not applicable.

Outlook and guidance

• Plans to continue R&D investment, expand product and raw material portfolio, and enhance clinical applications for medical devices.

• Focus on new product launches, store operations, and omni-channel growth to drive medium- and long-term brand development.

• Intends to utilize recent capital raised for core business development, brand promotion, and liquidity.