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Financial Association news on October 24 (Reporter He Fan): Influenced by a significant decrease in revenue and the termination of the research and development pipeline, Tonghua Dongbao (600867.SH) submitted a loss-making third quarter report tonight. From the perspective of Q3 performance, the company's revenue shows a certain recovery trend, but the sales expenses rising quarter by quarter have led to a situation of "increased revenue but not increased profitability". In the previous 2024 insulin continuity procurement, Tonghua Dongbao intends to select products at a certain price reduction compared to the original price.

Tonight, Tonghua Dongbao released the 2024 third quarter report, with the company achieving revenue of 1.448 billion yuan in the first three quarters, a year-on-year decrease of 30.78%; the net loss attributable to the parent company was 66.3724 million yuan, a year-on-year change from profit to loss; the non-net income was 0.135 billion yuan, a year-on-year decrease of 82.16%. Among them, Q3 achieved revenue of 0.708 billion yuan, a year-on-year decrease of 2.41%; the net profit attributable to the parent company was 0.164 billion yuan, a year-on-year decrease of 40.40%.

Regarding the reasons for the decline in performance, Tonghua Dongbao stated that the year-on-year decrease in revenue in the first three quarters of this year was mainly due to the implementation of the continuation bidding of the insulin injection product series before the commercial company controlled and adjusted inventory, leading to a decrease in company shipments. In addition, the loss in the first three quarters was due to a substantial decrease in revenue combined with the termination of the research and development project for soluble glucagon praline dual insulin injection (THDB0207 injection), and the recognition of R&D capitalization amount and prepayment of commercial rights related to it as losses. On the other hand, the significant increase in sales expenses compared to the same period led to the decline in the net profit attributable to the parent company in Q3.

From the perspective of sales expenses, Tonghua Dongbao's sales expenses reached 0.788 billion yuan in the first three quarters of this year, an increase of 24.49% year-on-year. Accordingly, the company's sales expenses in Q3 were approximately 0.339 billion yuan, while these expenses in Q1 and Q2 were 0.183 billion yuan and 2.66 billion yuan respectively.

In April of this year, in the 2024 insulin continuation procurement, Tonghua Dongbao's human insulin injection, recombinant human insulin hybrid injection, recombinant human insulin hybrid injection (30R), winter cherry insulin injection, soluble glucagon insulin injection, and winter cherry insulin 30 injection were all successfully tendered. The prices of the first five products were reduced compared to the previous procurement, while the winter cherry 30 insulin participated in the procurement for the first time and won the bid at the lowest price, with a quote lower than Gan & Lee Pharmaceuticals (603087.SH) and United Lab (03933.HK).