Hualan Biological Engineering (002007) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥4.38 billion, down 18.02% year-over-year; net profit attributable to shareholders was ¥1.09 billion, down 26.57% year-over-year.

• Blood products revenue grew 10.91% year-over-year, while vaccine revenue declined 53.54% due to market competition and pricing pressure.

• Cash dividend of ¥2 per 10 shares (total ¥365.76 million) was proposed for 2024.

• R&D investment increased 18.63% to ¥333 million, focusing on new blood products, vaccines, and innovative biologics.

Financial highlights

• Operating cash flow was ¥1.06 billion, down 21.29% year-over-year.

• Gross margin for blood products was 54.41%, and for vaccines 81.93%.

• Basic EPS was ¥0.5958, down 26.63% year-over-year.

• Total assets at year-end were ¥16.31 billion, up 1.27% from the previous year.

• Net assets attributable to shareholders were ¥11.86 billion, up 4.40% year-over-year.

Outlook and guidance

• Plans to further expand plasma collection, optimize product structure, and accelerate R&D for new products in 2025.

• Focus on increasing plasma supply, enhancing vaccine R&D and sales, and expanding international markets.

• Continued investment in digital transformation and information systems to improve operational efficiency.