Jiangsu Nhwa Pharmaceutical (002262) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 5.70 billion in 2024, up 13.01% year-over-year; net profit attributable to shareholders was RMB 1.14 billion, up 10.28%.

• Gross margin remained strong across core product lines, with continued leadership in CNS drugs.

• R&D investment increased 17.48% to RMB 721 million, with 14 innovative drugs and 52 generics in the pipeline.

• Cash dividend of RMB 3.60 per 10 shares proposed, totaling RMB 365.8 million, representing 31.99% payout ratio.

• 2024 marked by product launches, digital health expansion, and recognition as a "Green Factory".

Financial highlights

• Operating income: RMB 5.70 billion, up 13.01% year-over-year.

• Net profit attributable to shareholders: RMB 1.14 billion, up 10.28% year-over-year.

• Basic and diluted EPS: RMB 1.13, up 9.71% year-over-year.

• Gross margin for anesthesia, psychiatric, and neurology drugs remained above 70%.

• Operating cash flow: RMB 916 million, down 9.14% year-over-year.

Outlook and guidance

• 2025 focus on innovation-driven growth, digital transformation, and international expansion.

• R&D to accelerate with 9 clinical trials for innovative drugs and 4 generics expected to be approved.

• Continued investment in production capacity, digital health, and talent development.

• Targeting further market share gains in CNS, anesthesia, and digital health segments.