On the evening of March 27, Junshi Biosciences (688180. SH) disclosed its annual report, and its operating income in 2024 will be 1.948 billion yuan, a year-on-year increase of 29.67%; The net profit attributable to shareholders of the listed company was a loss of 1.281 billion yuan, compared with a loss of 2.283 billion yuan in the same period last year.

The operating income increased by about 450 million yuan over the same period of last year, an increase of 29.67%, mainly due to the increase in sales revenue of commercial drugs compared with the same period last year.

The net profit attributable to shareholders of the listed company and the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses decreased compared with the same period last year, mainly due to the fact that the company actively implemented the action plan of "improving quality and efficiency and emphasizing returns" while increasing operating income, continuously strengthened various expense control, reduced unit production costs, improved sales efficiency, and focused resources on more potential R&D projects.

Compared with the same period last year, the net cash flow from operating activities decreased due to the increase in cash received from the sale of commercial drugs, and the decrease in cash expenditure for the purchase of goods and services received by the Company in the current period.

As of the end of the Reporting Period, the Company had four commercial drugs: toripalimab injection (trade name: Tuoyi), adalimumab injection (trade name: Junmaikang), deuterium hydrobromide tablets (trade name: Mindwei) and ongreximab injection (trade name: Junshida).

With the increase in the number of approved indications for toripalimab and its inclusion in the National Medical Insurance Catalogue, the sales of the company's core product toripalimab in the domestic market increased significantly year-on-year during the reporting period.

Junshi Biosciences has also been reducing its R&D investment in recent years. In 2021 and 2022, the R&D scale of Junshi Biosciences will exceed 2 billion yuan, in 2023, Junshi Biosciences' R&D expenses will drop to 1.937 billion yuan, and in 2024, Junshi Biosciences' R&D investment will continue to decrease to 1.275 billion yuan, a year-on-year decrease of 34.18%.

The

decline in R&D investment is mainly due to the gradual completion of a number of registered clinical trials of the company's products Tuoyi, Junshida and other drugs, and the company has also focused its resources on more potential R&D projects, and actively promoted the implementation of the action plan of "improving quality and efficiency and emphasizing returns", and the clinical research and technical service fees and employee salaries have been reduced accordingly.

Founded in December 2012, Junshi Biosciences was successfully listed in Hong Kong, China in 2018 and listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in 2020. Public data shows that the company has never made a profit, setting a record loss of 2.388 billion yuan in 2022 and continuing to lose 2.283 billion yuan in 2023.

It has no hematopoietic capacity and can only rely on external capital for blood transfusion. On December 2, 2022, Junshi Biosciences completed the first private placement after its listing on the Science and Technology Innovation Board, with an issue price of 53.95 yuan per share, a discount of about 18% from the market, and a total of 3.777 billion yuan raised.

There are a total of 17 institutions and individuals in this private placement, including Wang Zhenhua and Shi Wen, natural persons, UBS Group, and China Asset Management, Galaxy Securities and GF Securities also participated, and the funds raised were mainly used for innovative drug research and development and Shanghai Junshi Biotechnology headquarters and R&D base projects.

The

funds to get the fixed increase shares at a discount originally hoped to make a lot of money, but in the end it backfired. After the end of the 6-month lifting period, the closing price of Junshi Biosciences on June 2, 2023 was 44 yuan per share, which has decreased by 18.44% compared with the fixed increase price.

In the secondary market, as of the close of trading on the 27th, Junshi Biosciences reported 29.82 yuan per share, with a total market value of 29.393 billion yuan. The stock price has fallen by more than 40% since its listing.