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Funds Link News on October 23 (Reporter He Fan): Due to the continued drag of the low price of caffeine and the continuous increase in research and development investment of CSPC Innovation Pharmaceutical, New CSPC Innovation Pharmaceutical (300765.SZ) released a performance report with both revenue and net profit declining this evening. Q3 also became the worst quarter for the company's profitability so far. On the other hand, after months of planning, CSPC Innovation Pharmaceutical's acquisition of Stone Pharmaceutical finally made progress recently.

This evening, CSPC Innovation Pharmaceutical released the third quarter report for 2024. The company achieved revenue of 1.479 billion yuan in the first three quarters, a year-on-year decrease of 23.66%; net profit attributable to shareholders of the listed company was 0.139 billion yuan, a year-on-year decrease of 63.5%. Among them, Q3 achieved revenue of 0.507 billion yuan, a year-on-year decrease of 14.48%; net profit attributable to the mother was 2.3019 million yuan, a year-on-year decrease of 98.03%, setting a new low for quarterly net profit.

CSPC Innovation Pharmaceutical stated that although the price of caffeine remained relatively stable in Q2 and Q3 of this year, the average price of caffeine from January to September this year showed a significant decrease compared to the same period last year. At the same time, the health food business was affected by the market, resulting in a decrease in its revenue. Therefore, the company's revenue for the first three quarters decreased by approximately 23.66% compared to the same period last year.

However, the research and development investment of CSPC Innovation Pharmaceutical's controlling subsidiary, CSPC Innovation Pharmaceutical, has been continuously increasing. With 5 products entering the clinical research and development stage, the clinical trial enrollment for key products such as EGFRADC and Nectin4 ADC has accelerated, leading to a significant increase in research and development expenses during the reporting period. In the first three quarters of this year, CSPC Innovation Pharmaceutical's research and development expenses were 0.404 billion yuan. In Q3 of this year, research and development expenses were 0.186 billion yuan, an increase of 48.40% compared to the same period last year, and an increase of 56.64% compared to Q2 of this year, which to some extent affected the overall performance of the company.

These factors also led to a significant contraction in the cash flow of CSPC Innovation Pharmaceutical. In the first three quarters of this year, the company's cash and cash equivalents decreased by 2.483 billion yuan, a 282.38% year-on-year decrease. Among them, operating cash flow decreased by 0.956 billion yuan, investment cash flow decreased by 0.919 billion yuan, and financing cash flow decreased by 0.607 billion yuan.

On the 15th of this month, CSPC Innovation Pharmaceutical's acquisition of 100% equity of Stone Pharmaceutical made progress. The restructuring proposal shows that CSPC Innovation Pharmaceutical plans to purchase 100% equity of Stone Pharmaceutical held by the controlling shareholder through the issuance of shares and cash payment, with a transaction amount of 7.6 billion yuan. At the same time, it plans to issue shares to raise matching funds from no more than 35 specific investors. However, this acquisition seems to have caused dissatisfaction among investors, with the company's stock price plummeting rapidly the day after the transaction. As of the close on the 16th, the decline reached 11.04%.