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Caixin Securities reported on August 26th (Reporter: He Fan) that Duori Pharmaceutical (301075.SZ) saw a 46.63% year-on-year decrease in revenue for its main product in H1, and a significant decline in net income, marking the company's first loss since its listing. Despite the company's plans to improve the current situation of single product structure by accelerating the development of new products, research and development investment has decreased by nearly 50%.

Tonight, Duori Pharmaceutical released its semi-annual report, reporting a H1 operating revenue of 0.15 billion yuan, a 11.75% year-on-year decrease; a net profit attributable to shareholders of -3.2764 million yuan, a 122.81% year-on-year decrease.

H1 Duori Pharmaceutical's main product, Sodium Acetate Injection, generated sales revenue of 65.6405 million yuan, a 46.63% year-on-year decrease due to market conditions. The revenue from this product accounted for 43.65% of the current operating revenue, a decrease compared to 72.19% in the same period last year.

Looking at different sectors, the pharmaceutical distribution and other business sector has become the highest revenue-generating sector for Duori Pharmaceutical, surpassing the formulation sector. The pharmaceutical distribution and other business sector achieved a revenue of 84.0154 million yuan, accounting for 55.87% of total revenue, a 90.07% year-on-year increase; the formulation business achieved a revenue of 66.1341 million yuan, a 47.62% year-on-year decrease.

At the same time, the company's cost of goods sold has significantly increased. During the reporting period, Duori Pharmaceutical saw a sharp increase of 87.61% in cost of goods sold, reaching 91.8364 million yuan. The company stated that this was due to changes in revenue structure and the lower gross margin of new business.

Additionally, based on this calculation, the sales revenue of Sodium Acetate Injection accounts for 99.25% of the formulation sector. Duori Pharmaceutical is also aware of the high proportion of sales revenue from Sodium Acetate Injection and acknowledges the risk of a single product structure.

Despite the risks associated with a high proportion of single-product sales, the company stated that it is accelerating the development of new products in the areas of plasma substitutes, emergency rescue drugs, pediatric drugs, and psychiatric drugs. However, in the first half of this year, the company's R&D investment was 6.4135 million yuan, accounting for only 4.26% of the revenue, a year-on-year decrease of 48.29% in expenses. During the reporting period, the company's oral solution of levetiracetam entered the application registration stage, and levofloxacin sodium chloride injection has obtained a drug registration certificate.

It is worth noting that Sinopharm Holding's subsidiary, Beilu Pharmaceutical, is no longer distributing the injection cephalosporin cefoperazone sodium, as the company signed an exclusive import and distribution agreement with Zhengde Pharmaceutical in October 2019.

In the first half of this year, Sinopharm Holding's subsidiary, Beilu Pharmaceutical, distributed the drug Amoxicillin Sodium Clavulanate for injection, manufactured by Hunan Kelun. During the reporting period, the sales revenue of this agency product reached 19.5668 million yuan, accounting for 13.01% of the total revenue.