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On August 26, Cailian News reported (Reporter He Fan) that the main product H1 revenue of Duorui Pharmaceutical (301075.SZ) decreased by 46.63% year-on-year, and the net profit declined significantly. This is also the first time that the company has reported a loss since its listing. Despite the company's effort to improve the current situation of a single product structure by claiming to accelerate the development of new products, the research and development investment has actually decreased by nearly 50%.

Tonight, Duorui Pharmaceutical disclosed its interim report, with H1 achieving an operating income of 0.15 billion yuan, a year-on-year decline of 11.75%; the net profit attributable to the parent company was -3.2764 million yuan, a year-on-year decline of 122.81%.

The sales revenue of Sodium Acetate Ringer's Injection, the main product of H1 Duorui Pharmaceutical, was 65.6405 million yuan, a 46.63% year-on-year decrease due to market conditions. The product's revenue accounted for 43.65% of the current operating income, a decrease from 72.19% compared to the same period last year.

By sector, the pharmaceutical distribution and other business sectors exceeded the formulation sector to become the highest revenue-generating sector for Duorui Pharmaceutical. The H1 pharmaceutical distribution and other business sectors achieved a revenue of 84.0154 million yuan, accounting for 55.87% of the total revenue, an increase of 90.07% year-on-year; the formulation business achieved a revenue of 66.1341 million yuan, a decrease of 47.62% year-on-year.

Meanwhile, there was a significant increase in the company's cost of goods sold. During the reporting period, Duorui Pharmaceutical's cost of goods sold sharply increased by 87.61% to reach 91.8364 million yuan. The company stated that this was due to changes in revenue structure, resulting in lower gross margin for the new business.

Moreover, based on this calculation, the sales revenue of Sodium Acetate Ringer's Injection accounted for 99.25% of the formulation sector. Duorui Pharmaceutical also acknowledged the high proportion of revenue from Sodium Acetate Ringer's Injection and stated that there is a "risk of a single product structure."

Despite the risks posed by a high proportion of single products, the company stated that it is accelerating the development of new products in the areas of plasma substitutes, emergency rescue drugs, pediatric drugs, and psychiatric medications. However, in the first half of this year, the company's research and development investment was 6.4135 million yuan, accounting for only 4.26% of revenue, a decrease of 48.29% compared to the same period last year. During the reporting period, the company's oral solution of levetiracetam entered the application and registration stage, and levofloxacin sodium chloride injection has obtained drug registration approval.

It is worth noting that Duori Pharmaceutical no longer distributes intravenous cefoperazone sodium and signed an exclusive import and distribution agreement with Zhengde Pharmaceuticals in October 2019.

In the first half of this year, Duori Pharmaceutical distributed the drug amoxicillin sodium and potassium clavulanate for injection, which is manufactured by Hunan Kelun. During the reporting period, this agency product achieved sales revenue of 19.5668 million yuan, accounting for 13.01% of total revenue.