Hansoh Pharmaceutical Group (3692) H2 2024 earnings summary

Executive summary

• Revenue rose 21.3% year-over-year to RMB12,261 million, driven by innovative drugs and collaborations.

• Net profit increased 33.4% year-over-year to RMB4,372 million; basic EPS up 33.3% to RMB0.74.

• Innovative drugs and collaborative products contributed 77.3% of total revenue, up 38.1% year-over-year.

• R&D expenditure grew 28.8% to RMB2,702 million, representing 22% of revenue.

• Board recommends a final dividend of HK$13.53 cents per share, with full-year dividend at HK$33.63 cents per share.

Financial highlights

• Gross profit reached RMB11,155 million, up from RMB9,073 million in 2023.

• Operating cash inflow was RMB3,862 million; capital expenditure was RMB473 million.

• Cash and bank balances stood at RMB22,622 million as of year-end.

• Gearing ratio improved to 9.4% from 21.9% a year earlier.

• Collaboration revenue from GSK accounted for 12% of total revenue.

Outlook and guidance

• Focus remains on R&D of innovative drugs, internationalization, and expanding core product pipelines.

• Plans to deepen presence in oncology, CNS, metabolism, and autoimmunity, and accelerate global market strategies.

• Will continue to strengthen business development collaborations and multi-channel commercialization.