Chengda Pharmaceuticals (301201.SZ) announces an expected net loss of 21 million to 29 million yuan in 2024, a change from profit to loss year on year.

Chengda Pharmaceuticals (301201.SZ) disclosed its performance forecast for fiscal year 2024, with an expected net loss of RMB 21 million to 29 million attributable to shareholders of the listed company, and a net loss of RMB 50 million to 60 million excluding non-recurring gains and losses, turning from profit to loss compared to the previous year. The company's operating income for the reporting period is expected to decrease by approximately 16% to 27%. Specifically, the sales revenue of the raw material drug business is expected to decrease by about 33%, mainly due to the excessive stocking by customers of the drug grade L-Carnitine in 2023, leading to a decline in demand during the reporting period; the company's CDMO business saw a decrease in orders, resulting in a decline in sales revenue. In addition, the company's research and development expenses are estimated to be around RMB 90 million to 98 million, an increase of about RMB 66 million from the previous year. It is expected that the non-recurring gains and losses for the reporting period will have an impact of approximately RMB 30 million on net profit, mainly attributed to government subsidies and cash management investment income included in the current period.