2023-11-14-深交所-华东医药_2023年第三季度报告（英文版）_22页_441kb

Third Quarterly Report Summary: Huadong Medicine Co., Ltd. (2023 Q3)

Overview

Huadong Medicine Co., Ltd. (Stock code: 000963) issued its third-quarter 2023 report, covering financial performance, business operations, and significant developments. The company assures the authenticity and completeness of the report, with no retroactive adjustments. The report includes quarterly and year-to-date financial data, focus on operational segments, and R&D efforts.

Financial Highlights

The company's year-to-date operating revenue reached 30.395 billion yuan, showing a 9.10% year-over-year increase. Net profit attributable to shareholders after deducting non-recurring losses rose by 13.62% year-over-year to 2.160 billion yuan. Key financial indicators for Q3 2023 include a 3.61% year-over-year increase in operating revenue, and a net profit of approximately 733 million yuan, up 16.43% year-over-year. Net cash flow from operating activities was strong, increasing by 70.37%, while net cash flow from financing activities saw a significant outflow due to debt repayment.

Business Segment Performance

The pharmaceutical business was stable with steady revenue growth, contributing to overall corporate performance. Industrial microbiology showed promising growth, particularly in markets for ADC raw materials and animal health products, with a year-on-year increase in sales revenue of 36.22% after specific business adjustments. The aesthetic medicine segment experienced rapid expansion, with revenue up 36.99%, driven by global operations through subsidiaries like Sinclair and its Shanghai affiliate, which maintained strong profitability in international markets.

Research and Development (R&D)

The company invested heavily in R&D, focusing on innovative medicines. Notable advancements include the BLA submission for mirvetuximab soravtine (ELAHERE®) for ovarian cancer, multiple pipeline drugs targeting oncology, endocrinology, and autoimmune diseases, and several new product developments. The aesthetics sector saw further innovation, with new filler and device products advancing through clinical trials and registrations.

Shareholder Information

At the end of Q3 2023, the company had 81,155 common shareholders. Top shareholders include China Grand Enterprises (41.66% stake), Hangzhou Huadong Medicine Group (16.42%), and Hong Kong Securities Clearing Company (2.60%). No significant associated party or concerted action declarations were made, and there was no involvement through margin trading among top shareholders.

Key Matters and Conclusion

The company faced market challenges but demonstrated resilience. New overseas partnerships and license agreements expanded the product portfolio, particularly in topical preparations and aesthetic medicine. Overall, the quarter saw solid progress in financial and operational metrics, setting a positive foundation for achieving annual goals, with a focus on global innovation and market expansion.