Sihuan Pharmaceutical Holdings Group (460) H2 2024 earnings summary

Executive summary

• Achieved strategic transformation to a dual-engine model focused on medical aesthetics and innovative pharmaceuticals, with significant business breakthroughs and strengthened industrial chain synergy in FY24.

• Total revenue rose 2.2% year-over-year to RMB1,901.1 million, driven by strong growth in medical aesthetics and innovative medicine, offset by a decline in generic medicine sales.

• Medical aesthetics revenue surged 65.4% to RMB744.2 million, while generic medicine revenue fell 21.4% to RMB1,099.3 million due to centralized procurement and regulatory pressures.

• Loss for the year increased 83.0% to RMB471.5 million, mainly due to higher share-based payments related to subsidiary incentives.

• 28 new products approved for marketing, including key launches in medical aesthetics, diabetes, and oncology.

Financial highlights

• Total revenue reached RMB 1.9 billion in FY24, up from RMB 1.86 billion in FY23.

• Medical aesthetic segment revenue grew 65.4% year-over-year to RMB 744.2 million; segment profit rose 173.4% to RMB 251.0 million.

• Innovative and other medicine segment revenue increased 388.1% year-over-year to RMB 57.6 million, though segment loss widened to RMB 948 million.

• Generic medicine segment revenue declined 21.4% year-over-year to RMB 1.1 billion, with segment profit down 36.8% to RMB 356.5 million.

• R&D expenses decreased 18.0% year-over-year to RMB 473.9 million, representing 41.0% of medicine sales revenue.

Outlook and guidance

• Focus on high-growth medical aesthetic business and launch of new diabetes biologics and oncology drugs in 2025.

• Continued optimization of resource allocation and deepening international cooperation to drive value growth.

• Plans to further invest in R&D, expand medical aesthetics and diabetes biopharmaceuticals, and accelerate international market entry.

• Focus on product innovation, brand strengthening, and international partnerships in both medical aesthetics and innovative pharmaceuticals.

• No final dividend recommended for 2024.