Jiangsu Nhwa Pharmaceutical (002262) H1 2024 earnings summary

Executive summary

• Achieved revenue of ¥2.76 billion in H1 2024, up 15.13% year-over-year; net profit attributable to shareholders rose 15.46% to ¥628.92 million.

• R&D investment increased 13.03% to ¥318.90 million, with over 70 projects in the pipeline, including 20+ innovative drugs and 44 generics.

• Maintained leading market position in CNS drugs, with strong growth in anesthesia, pain, and psychiatric product lines.

• Expanded retail pharmacy network to 178 stores, and advanced digital/precision medical services.

Financial highlights

• Operating income: ¥2.76 billion, up 15.13% year-over-year; operating profit: ¥732.55 million, up 17.00%.

• Net profit attributable to shareholders: ¥628.92 million, up 15.46% year-over-year.

• Basic and diluted EPS: ¥0.62, up 14.81% year-over-year.

• Operating cash flow: ¥621.84 million, up 39.51% year-over-year.

• Gross margin for anesthesia products: 87.16%; psychiatric: 77.54%; overall industrial gross margin: 81.11%.

Outlook and guidance

• Will continue to focus on CNS drug innovation, expand product pipeline, and strengthen market leadership.

• Plans to accelerate internationalization, digital healthcare, and precision medicine initiatives.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2024.