Gelonghui, April 25 | Huadong Pharmaceutical (000963.SZ) released its report for the first quarter of 2024. During the reporting period, the company achieved operating income of 10.411 billion yuan, up 2.93% year on year; realized net profit of 862 million yuan, up 14.18% year on year; realized net profit to mother after deducting non-recurring profit and loss of 838 million yuan, an increase of 10.66% year on year; both operating income and net profit achieved positive growth over the fourth quarter of 2023. After deducting equity incentive expenses and profits and losses from participating R&D institutions, etc., net profit of 928 million yuan attributable to shareholders of listed companies after deducting non-recurring profit and loss was achieved during the reporting period, an increase of 22.45% compared to net profit and loss attributable to shareholders of listed companies in the first quarter of 2023 after deducting non-recurring gains and losses.

During the reporting period, the overall operations of the core subsidiary China and the US East China continued to maintain a steady growth trend, achieving operating income (including CSO business) of 3.399 billion yuan, an increase of 10.53% over the previous year; consolidated net profit of 751 million yuan, an increase of 11.67% over the previous year.

During the reporting period, the company's pharmaceutical business achieved overall revenue of 6.717 billion yuan, a year-on-year decrease of 1.86%, and realized net profit of 107 million yuan, an increase of 1.51% over the previous year. The decline in the company's pharmaceutical commercial revenue was mainly affected by the high base in the first quarter of 2023. It is expected that the pharmaceutical commercial business will return to positive growth in the second quarter.

The overall medical and aesthetic business of the company continued to maintain a good growth trend during the reporting period. The medical and aesthetic sector achieved a total revenue of 630 million yuan (excluding internal offsets), an increase of 25.30% over the previous year. The wholly-owned subsidiary Sinclair in the UK continued to expand the global medical and aesthetic market. During the reporting period, it achieved consolidated revenue of about RMB 272 million. Demand fluctuated due to the slowdown in global macroeconomic growth, which led to a year-on-year decline of 4.40%. Overall revenue reached the operating target for the first quarter. The growth rate is expected to gradually pick up from the second quarter. Xinkley Aesthetics, a wholly-owned subsidiary of domestic medical and aesthetic medicine, actively expanded the domestic market. During the reporting period, it achieved revenue of 257 million yuan, an increase of 22.65% over the previous year, and an increase of 13.38% over the fourth quarter of 2023.

During the reporting period, the company's revenue in the industrial microbiology sector maintained steady growth, with a year-on-year increase of 23.00%. In the future, with the active expansion of overseas markets, the domestic animal insurance business will increase online and offline marketing and the commissioning of Hubei Meiqi Health. It is expected that the growth rate of the industrial microbiology sector business will accelerate.