JIUYUAN GENE released its interim results, with a net profit attributable to shareholders of HKD 90.174 million, a year-on-year decrease of 14.4%

According to the Zhitong Finance APP, JIUYUAN GENE (02566) released its interim results for the six months ending June 30, 2025. The group achieved revenue of RMB 639 million, a year-on-year decrease of 9.05%; gross profit of RMB 525 million, a year-on-year decrease of 2.84%; net profit attributable to shareholders of the parent company of RMB 90.174 million, a year-on-year decrease of 14.4%; and earnings per share of RMB 0.37. As of June 30, 2025, the company's total revenue decreased by 9.1% year-on-year, and profit for the period decreased by 14.4% year-on-year. The slight decline in total revenue in the first half of the year was mainly due to a combination of internal and external factors. In terms of pharmaceutical industry policies, with the continuous deepening of DRG/DIP reforms, the national medical insurance cost control efforts have been strengthened, and external procurement of drugs is facing some pressure. Public medical institutions need to rebalance in terms of medical insurance cost control indicators and drug cost-effectiveness; the reform of drug pricing governance has led to a consensus on drug listing price rules, and provincial price linkage has resulted in price adjustments for some products. On the company's side, to strengthen cash flow, the sales model of some products has been adjusted from direct sales to commercial distribution; the company's name change in the first half of the year required some hospitals to re-complete market access work for product sales, which had a certain impact on the company's performance. During the reporting period, the company's sales volume of orthopedic products increased by more than 10% year-on-year, and the penetration rate in hospitals continued to rise. Focusing on the company's annual operational goals, we implemented differentiated commercial policies aimed at stabilizing the existing market and cultivating incremental markets, striving for steady growth in annual business revenue. For the existing market, we continue to lead with professional academic promotion, organizing rich exchanges of orthopedic products, academic salons, and inter-hospital exchange meetings at multiple levels; enhancing the professional level of sales personnel to stabilize the orthopedic product market in hospitals; and strengthening the full-cycle management of orthopedic products, expanding services beyond orthopedic treatment to include postoperative rehabilitation and care. For the incremental market, we are expanding our team to increase coverage of county-level hospitals; actively organizing and participating in national and regional academic conferences to enhance in-depth training for grassroots doctors, promoting awareness of the company's orthopedic products; and actively advancing comprehensive coverage of provincial medical insurance catalogs to enhance product competitiveness. By fully utilizing the existing technology platform, we are committed to the development of innovative products in the fields of metabolism, orthopedics, oncology, and hematology. As of the date of this announcement, the company has laid out a rich R&D pipeline in the aforementioned fields, including multiple innovative drugs, biosimilars, and combinations of biological drugs and devices