①In the first half of this year, Chongqing Taiji Industry's net income was 0.495 billion yuan, a year-on-year decrease of 12.51%; ② The company stated that the unsatisfactory performance in the first half of the year was mainly affected by the high base in the same period last year and the high social inventory of some products.
When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.
Caifl.com, August 22nd (Reporter Liang Xiangcai, Intern Reporter Yan Jiayi) affected by the high base in the same period last year and the high social inventory of some products, Chongqing Taiji Industry (600129.SH) saw a year-on-year decline of more than 10% in net profit in the first half of this year.
Tonight, Chongqing Taiji Industry released its 2024 interim report, achieving a revenue of 7.817 billion yuan in the first half of the year, a year-on-year decrease of 13.64%; the net profit attributable to shareholders of the listed company was 0.495 billion yuan, a year-on-year decrease of 12.51%.
Regarding the reasons for the performance changes in the first half of the year, Chongqing Taiji Industry explained in the announcement: first, the high performance base in the same period last year, and second, the high social inventory level of some products, which led to a year-on-year decrease in sales revenue in the first half of this year, thus affecting the overall revenue and profit performance.
At Chongqing Taiji Industry's 2024 interim work conference, Yu Min, the director and general manager of Chongqing Taiji Industry, stated that the company should correctly understand the complex environment and difficult challenges it faces, maintain a global strategy, and do everything possible to accomplish the annual goals.
Chongqing Taiji Industry's core products are Huoxiang Zhengqi Oral Liquid and Jizhi Syrup. In the first half of 2024, the decline in revenue was mainly due to the decreased sales of Huoxiang Zhengqi Oral Liquid, cefoperazone sodium for injection, and other products.
The company's core products did not maintain last year's growth momentum. In the first half of 2023, the sales of the company's core products saw a significant increase, resulting in a year-on-year revenue growth of over 20%. In addition to the company's high product inventory, the overall changes in the industry's operation environment also had an impact on the company's operational performance for the year.
In recent years, the national medical insurance policy has been continuously adjusted, imposing higher requirements on drug prices and market access. Some products may face the risk of price reduction through medical insurance negotiations or being removed from the medical insurance catalog, which will directly impact the sales and profits of traditional Chinese medicine companies.
In addition, the implementation of the "four-same drugs" pricing policy (i.e. the same drug produced by the same drug manufacturer, and the same drug produced by a drug manufacturer through consistency evaluation) has also intensified market competition and had a certain impact on the sales of traditional Chinese medicine products.
Under these circumstances, the pharmaceutical industry has been under pressure in the first half of this year.
According to forecasts by the Zhongkang Industrial Research Institute, the annual growth rate of pharmaceuticals in all end markets is expected to decline to 4.9% in 2024. The operating environment for physical pharmacies has become increasingly challenging, with the annual growth rate of drug categories projected to be only 2.9%. The growth rate of the B2C market has also narrowed to 6%. The overall performance of the pharmaceutical industry and research and development services sector is also unsatisfactory.
Data from the National Bureau of Statistics shows that in the first half of this year, the added value of industrial enterprises in the pharmaceutical manufacturing industry above a certain scale only increased by 2%. Various CXO enterprises are also facing a scenario of significant decline in revenue, profits, and market cap.