29 Chinese Pharmaceutical Companies Report Year-over-Year Net Profit Growth in Both Full-Year 2023 and Q1 2024

　　【Pharmaceutical Network Industry Dynamics】Data from East Money Choice shows that, as of April 21, more than 400 listed companies in the A-share market have released their 2023 annual reports and Q1 2024 earnings reports. Among them, 29 pharmaceutical companies reported year-over-year growth in net profits for both last year and this year’s first quarter, including Shanxi C&Y Pharmaceutical Co Ltd, Xiangyu Medical Co., Ltd., Zhejiang Jolly Pharmaceutical Co., Ltd., Kawin, and others.
 

For example, Shanxi C&Y Pharmaceutical Co Ltd achieved operating revenue of 799 million yuan in 2023, a year-on-year decrease of 3.58%; net profit attributable to shareholders was 25.1956 million yuan, a year-on-year increase of 121.26%. In the first quarter of 2024, the company's revenue was approximately 189 million yuan, a year-on-year increase of 3.44%; net profit attributable to shareholders of the listed company was approximately 18.28 million yuan; basic earnings per share were 0.0757 yuan. The main reason for the company's performance change in 2023 was that in June 2023, the company signed the "Equity Repurchase Agreement of Jiangsu Jiayi Pharmaceutical Co., Ltd." with Lizze Fund, Zhang Yu, and other parties. The company acquired part of the equity of Nantong Hengjia. The repurchase price of the remaining equity of Nantong Hengjia was based on the shareholder equity valuation of Nantong Hengjia as of December 31, 2022. Therefore, starting from July 2023, the company no longer accrued financial expenses corresponding to financial liabilities, resulting in a reduction in interest expenses during the reporting period compared to the previous year.
 

Sunnyou Medical Benefits from the Continuous Support of National Policies and the Growth in Demand for Rehabilitation Medical Services. In 2023, the company achieved operating revenue of 745 million yuan, representing a year-on-year increase of 52.46%; net profit attributable to shareholders of the listed company was 227 million yuan, marking an 81.03% increase year-on-year. In the first quarter of 2024, the company achieved operating revenue of 169 million yuan, up 18.12% year-on-year; net profit attributable to shareholders was 39.0738 million yuan, increasing by 3.34% year-on-year.
 

Zhejiang Jolly Pharmaceutical Co., Ltd. achieved operating revenue of 1.942 billion yuan last year, representing a year-on-year increase of 7.61%; the net profit attributable to parent company was 383 million yuan, increasing by 40.27% year-on-year. In the first quarter of 2024, the company achieved operating revenue of 673 million yuan, a year-on-year increase of 35.75%; the net profit attributable to parent company was 142 million yuan, increasing by 46.14% year-on-year. Core products were the main driver of the company's growth. In the first quarter of 2024, the operating revenue of the Wuling series increased by 35.30% year-on-year, mainly due to the sales volume and sales amount of Wuling capsules increasing by 43.86% and 37.25% respectively year-on-year; the sales volume and sales amount of Lingze tablets increased by 25.19% and 24.33% respectively year-on-year; the sales volume of Bailing tablets increased by 7.11% year-on-year while the sales amount decreased by 18.98%; the revenue from traditional Chinese medicine formula granules increased by 332.99% over the same period last year; and the revenue from traditional Chinese medicine decoction pieces increased by 25.50% over the same period last year.
 

Kawin Achieves Strong Growth in Q1 2024 with Operating Revenue of 213 Million Yuan, Up 10.34% Year-over-Year; Net Profit Attributable to Shareholders at 22.14 Million Yuan, Up 4.75%. In 2023, Total Revenue Reached 1.412 Billion Yuan, a Year-over-Year Increase of 21.73%; Net Profit Attributable to Shareholders Was 117 Million Yuan, Surging 39.71%. According to the company's report, Kalewe® demonstrated robust growth, with full-year sales revenue in 2023 increasing by over 200% year-over-year.
 

Aiboi Medical's 2023 annual report shows that the company achieved a revenue of 951 million yuan in 2023, representing a year-on-year increase of 64.14%; the net profit attributable to parent company was 304 million yuan, increasing by 30.63% year-on-year. In the first quarter of 2024, the company achieved operating income of 310 million yuan, up 63.55% year-on-year, with a net profit of 103 million yuan, an increase of 31.26% year-on-year, and basic earnings per share of 0.98 yuan. Aiboi Medical stated that the reasons for changes in operating income were: continuous growth in surgical treatment and myopia prevention and control businesses; rapid growth in vision care business. The reasons for changes in net profit were: revenue growth drove net profit growth. Among them: the vision care business is in the early stage of expansion, with higher unit costs, and the industry’s average gross profit margin is lower than the company’s surgical treatment and myopia prevention and control businesses, resulting in a net profit growth rate lower than operating income.
 

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