GIANT BIOGENE (2367) H2 2024 earnings summary

Executive summary

• Revenue grew 57.2% year-over-year to RMB5,538.8 million, driven by product expansion, omni-channel growth, and strong brand performance.

• Net profit increased 42.4% to RMB2,061.7 million; adjusted net profit rose 46.5% to RMB2,151.5 million.

• Comfy and Collgene brands led growth, with Comfy revenue up 62.9% and Collgene up 36.3% year-over-year.

• R&D investment increased 42.1% to RMB106.5 million, with 188 ongoing projects and 74 new patents granted or applied.

• Final and special dividends totaling RMB1.1942 per share proposed, pending shareholder approval.

Financial highlights

• Gross profit rose 54.3% to RMB4,546.9 million; gross margin slightly decreased to 82.1% from 83.6%.

• Basic EPS increased 40.9% to RMB2.10; diluted EPS up 39.2% to RMB2.06.

• Cash and cash equivalents reached RMB4,030.2 million, up 61.0% year-over-year.

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

• Capital expenditures for the year were RMB251.2 million, mainly for new plants and production lines.

Outlook and guidance

• Plans to increase R&D investment, expand product portfolios, and pursue class III medical device commercialization.

• Focus on brand building, channel expansion, and regulatory approvals to drive future growth.

• Confident in the long-term potential of China's beauty and health industry.