FINANCIAL PERFORMANCE
 

In 2024, the Group’s flagship biologics, Beifushu® series and Beifuji® series (the basic fibroblast growth factor (bFGF) based biologic drugs), have since been subjected to the system of centralised procurement in all provinces in the PRC. The tenacity, resilience and solidarity, together with relentless effort for the Group’s flagship biologics to continue to broaden coverage of indications and patient access, are factors that enabled the Group to weather the headwinds and managed to turn in satisfactory performances.

The Group achieved a turnover of approximately HK$1,669.8 million, representing a decrease of 3.9% (or approximately RMB1,569.2 million, representing a decrease of 2.0%) as compared to last year. The decrease is attributable to certain hawkish policies and measures enacted by the PRC regulators in the pharmaceutical and medical industry. The Group, however, expects that the consequential adversity will be eased off when these policies and measures become familiar (the “Unforeseen Factor”).
 
Despite the decrease in turnover, the Group achieved a net profit of approximately HK$307.2 million, representing an increase of 11.6% (or approximately RMB282.9 million, representing an increase of 13.8%) as compared to last year.
 
The Group’s turnover is primarily made up of the ophthalmology segment (“Ophthalmology”), surgical (wound care and healing) segment (“Surgical”) and provision of services segment. The core products that are current growth drivers under each segment are:
 
1. Ophthalmology – Beifushu^® series (Beifushu^® eye drops, Beifushu^® eye gel and Beifushu^® unit-dose eye drops), Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops, Moxifloxacin Hydrochloride Eye Drops, Diquafosol Sodium Eye Drops, 適麗順^® (Iodized Lecithin Capsules), Soft Hydrophilic Contact Lens, Foldable Capsular Vitreous Body and other medical devices for myopia control and prevention such as eye-protection lamp and Seewant defocus customised glasses;

2. Surgical (wound care and healing) – Beifuji^® series (Beifuji^® spray, Beifuji^® lyophilised powder and Beifuxin^® gel), Carisolv^® dental caries removal gel, 伢典醫生 (Dr. YaDian) oral care products, 伊血 安顆粒 (Yi Xue An Granules), Portable Ultraviolet Phototherapy Devices, PELNACTM collagen-based artificial dermis, SCALGENTM double-layered artificial dermis and Osteopore’s bioresorbable implants (Osteomesh^® and Osteoplug^®） for dental surgery in Singapore; and

3. Provision of services – Healthtech e-platform related medical services.
 
The sectoral turnover of Ophthalmology and Surgical is approximately 46.2% and 52.7% of the Group’s turnover, respectively. The combined turnover of the Group’s flagship biologics, Beifushu^® series and Beifuji^® series (the basic fibroblast growth factor (bFGF) based biologic drugs), represented about 84.5% of the Group’s total turnover, of which Beifushu^® series and Beifuji^® series accounted for 35.1% and 49.4% of the Group’s turnover, respectively. The remaining 15.5% of the Group’s turnover is mainly contributed by sales of Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops, 適麗順^® (Iodized Lecithin Capsules), Carisolv^® dental caries removal gel, 伢典醫生 (Dr. YaDian) oral care products, 伊血安顆粒 (Yi Xue An Granules) and PELNACTM collagen-based artificial dermis, collectively.
 
Ophthalmology contributed approximately HK$771.5 million to the Group’s turnover for the year ended 31 December 2024, representing an increase of 2.2% as compared to 2023. Surgical recorded a total turnover of approximately HK$879.9 million for the year ended 31 December 2024, representing a decrease of 9.3% as compared to 2023. The decrease was attributable to the Unforeseen Factor.
 
As at 31 December 2024, the Group had cash and cash equivalents of approximately HK$557.2 million (2023: approximately HK$509.8 million).
 
SIGNIFICANT BUSINESS DEVELOPMENT ACTIVITIES

During the year under review, the Group’s production capacity expanded well. The new Blow-Fill-Seal (“BFS”) manufacturing line has increased the production capacity for Beifushu® unit-dose eye drops. Further, the construction of the new eye gel manufacturing line has been substantially completed with key equipment installed and production to be commenced soon.
 
R&D innovation continues progressing, with multiple pipelines advancing smoothly. The global phase 3 clinical project of bevacizumab ophthalmic injection (EB12-20145P) has successfully enrolled patients in the PRC, Australia, European Union countries and the United States; the last patient last visit was completed.
 
In 2024, National Medical Products Administration (“NMPA”) approved the registration and commercialisation of the preservative-free unit-dose Diquafosol Sodium Eye Drops and Sodium Hyaluronate Eye Drops (0.3%) in the PRC. In addition, the Group has secured an exclusive agency right for SCALGENTM double-layered artificial dermis.
 
The Group’s development achievements have also been well recognised in the industry with endorsements, awards and accolades. 珠海億勝生物製藥有限公司 (Zhuhai Essex Bio-Pharmaceutical Company Limited), a wholly-owned subsidiary of the Company, is one of the 2023年度TOP100中國化藥企業 (2023 Top 100 Chemical Pharmaceutical Companies in the PRC). Beifushu® has been one of the Chinese reputable medicine brands for six consecutive years, and Beifushu® eye drops are a 2024年度生化、生物藥品優秀品牌 (2024 Excellent Brand of Biochemical and Biological Pharmaceutical). Further, the Group has once again been included in 2024 Forbes Asia’s Best Under A Billion List.
 
MARKET DEVELOPMENT

As at 31 December 2024, the Group maintained an extensive network of 44 regional sales offices across the PRC. Additionally, since 2020, the Group has established a strategic base in Singapore to facilitate market access into Southeast Asian countries.
 
To drive sustainable growth and expansion for our current and future products, the Group has been investing relentlessly in enhancing its competitiveness and broadening its reach through the following strategic initiatives:
 
• expanding the clinical indications for its commercialised products;
• increasing patient access in lower-tier cities across the PRC;
• developing complementary sales channels; and
• nurturing the healthtech e-platform to enhance patient access.
 
During the year under review, the vast distribution network enabled the Group’s therapeutic products to be prescribed in over 14,000 hospitals and medical providers, as well as approximately 1,810 pharmaceutical stores, covering major cities, provinces and county cities throughout the PRC.


RESEARCH AND DEVELOPMENT

The R&D division is driven by a vision that underscores its commitment to science and innovation, with a mission to develop groundbreaking therapeutics that address unmet clinical and/or commercial needs. The Group kick-started a 5-year development plan from 2021 to further strengthen its R&D capabilities and solidify its position in ophthalmology.
 
The Group’s key R&D initiatives comprise of growth factor, antibody (i.e. mAb, bsAb, sdAb, scFv, ADC/FDC, etc.), drug formulation know-how and BFS platform. Growth factor, antibody and drug formulation know-how are used for the development of therapeutic drugs in ophthalmology, surgical (wound care and healing) and oncology, whereas BFS platform is a state-of-the-art manufacturing facility for producing preservative-free unitdose drugs, in particular for ophthalmic drugs.
 
As at the date of this report, there are 16 R&D programmes in the pre-clinical to clinical stage, out of which 4 ophthalmology programmes are in clinical stage. The 4 ophthalmology programmes listed below are targeted as mid-term growth driver.
 
1. EB11-18136P: SkQ1 eye drops, second phase 3 clinical trial (United States Food and Drug Administration (the “US FDA”)) (VISTA-2) topline data released on 24 February 2021. The continuation of the VISTA programme is subject to the completion of the transfer of chemistry, manufacturing and controls (CMC), know-how and intellectual property rights relating to SkQ1, following the acquisition on 13 October 2022.
2. EB11-15120P: Azithromycin eye drops, ongoing review by external key opinion leaders (NMPA in the PRC)
3. EB12-20145P: Bevacizumab intravitreal injection for exudative (wet) age-related macular degeneration, phase 3 clinical trial (US FDA, European Medicines Agency, Therapeutic Goods Administration and NMPA in the PRC)
4. EB11-21148P: Cyclosporine eye drops, phase 2 clinical trial (NMPA in the PRC)
 
As at the date of this report, the Group has obtained a total of 100 patent certificates or authorisation letters, which include 70 發明專利 (invention patents), 15 實用新型專利 (utility model patents) and 15 外觀專利 (design patents).
 
The Group currently has multiple R&D sites located in Zhuhai (PRC), Boston (United States), London (United Kingdom) and Singapore. These sites support our efforts to develop new therapeutics and recruit global talent.

 
PROSPECTS

Barring unforeseen circumstances, the Group remains focused on executing its plans and delivering progressive results.
 
DIVIDEND

To reward our valued shareholders, the Board is pleased to propose a final dividend of HK$0.06 (2023: HK$0.045) per ordinary share to be approved at the upcoming annual general meeting of the Company. Together with the interim dividend of HK$0.06 per ordinary share which was paid on 24 September 2024, the total dividend for 2024 would be HK$0.12 (2023: HK$0.09) per ordinary share.
 
APPRECIATION

I would like to take this opportunity to express my sincere gratitude to all stakeholders, business associates and valued customers for the trust, support and cooperation accorded to us, and each and every member of the Group for their relentless efforts rendered in shaping the Group into being a progressive and promising pharmaceutical player.

Ngiam Mia Je Patrick
Chairman
 
Hong Kong
26 March 2025

* For identification purpose only