Huadong Medicine Co (000963) Q4 2024 earnings summary

Executive summary

• Achieved record operating revenue of ¥41.91 billion in 2024, up 3.16% year-over-year, and net profit attributable to shareholders of ¥3.51 billion, up 23.72% year-over-year.

• All four core business segments—pharmaceutical industry, pharmaceutical business, aesthetic medicine, and industrial microbiology—delivered growth, with pharmaceutical industry and industrial microbiology showing the strongest momentum.

• R&D investment increased 16.77% year-over-year to ¥2.68 billion, with over 80 innovative medicine pipelines and 133 pharmaceutical projects under development.

• Major product launches and regulatory approvals included China’s first FRa-targeting ADC (Elahere®), biosimilar Ustekinumab Injection (Sailexin®), and the world’s first bedside renal function assessment device.

• Implemented robust ESG practices, earning multiple top-tier ratings and awards.

Financial highlights

• Operating revenue: ¥41.91 billion (+3.16% YoY); net profit attributable to shareholders: ¥3.51 billion (+23.72% YoY); net profit after non-recurring items: ¥3.35 billion (+22.48% YoY).

• Gross margin: 33.21% (+0.81% YoY); net cash flow from operating activities: ¥3.75 billion.

• Total assets: ¥37.88 billion; net assets attributable to shareholders: ¥23.06 billion; asset-liability ratio: 37.79%; ROE: 15.93%.

• Basic EPS: ¥2.0046 (+23.60% YoY); cash dividends: ¥1.63 billion distributed in 2024.

Outlook and guidance

• Strategic focus on accelerating R&D, enhancing product differentiation, and globalizing innovative medicine pipelines.

• Plans to expand market share beyond Zhejiang Province, strengthen out-of-hospital and retail channels, and further internationalize the aesthetic medicine and industrial microbiology businesses.

• 2025 will see continued investment in R&D, new product launches, and operational reforms to drive sustainable growth.