Huadong Medicine Co (000963) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 results with operating revenue of ¥20.97B, up 2.84% year-over-year, and net profit attributable to shareholders of ¥1.70B, up 18.29% year-over-year.

• All four business segments—pharmaceutical industry, pharmaceutical business, aesthetic medicine, and industrial microbiology—delivered steady growth and improved operational quality.

• Continued focus on innovation, R&D, and international expansion, with significant progress in new drug development and product launches.

• Announced interim cash dividend of ¥3.50 per 10 shares, totaling ¥614M, reflecting strong shareholder returns.

• Maintained robust ESG performance, receiving multiple high ratings and industry awards.

Financial highlights

• Operating revenue: ¥20.97B, up 2.84% year-over-year; Q2 revenue ¥10.55B, up 2.76% year-over-year.

• Net profit attributable to shareholders: ¥1.70B, up 18.29% year-over-year; Q2 net profit ¥834M, up 22.85% year-over-year.

• Net profit after deducting non-recurring gains/losses: ¥1.63B, up 13.85% year-over-year.

• Basic EPS: ¥0.9675, up 18.07% year-over-year; diluted EPS: ¥0.9686, up 18.27% year-over-year.

• Net cash flow from operating activities: ¥2.28B, up 12.54% year-over-year.

Outlook and guidance

• Expects continued improvement in China’s economy and pharmaceutical industry, driven by policy support for innovative medicines.

• Company will focus on high-quality, efficient growth, innovation, and internationalization, aiming to achieve annual operational goals.

• Ongoing investment in R&D and product pipeline to sustain long-term growth.