INM Latest Report

InMed's Financial Performance

InMed (stock code: INM) recorded a total operating revenue of RMB111.17 billion as of December 31, 2024, a year-on-year decrease of approximately 10.3% from RMB124.02 billion in 2023. This change reflects a significant decline in revenue over the past year, warranting a deeper analysis of the underlying reasons.

Key Financial Data

1. Decline in Operating Revenue: InMed's operating revenue in 2024 was RMB111.17 billion, a year-on-year decrease of approximately 10.3%, mainly due to weakened market demand, poor product sales, and intensified industry competition.

2. Increase in R&D Expenses: R&D expenses in 2024 were RMB10.60367 million, a significant increase from RMB6.09791 million in 2023, significantly affecting the company's short-term operating income.

3. Rise in Marketing Expenses: Marketing, sales, and general management expenses in 2024 were RMB16.06785 million, up from RMB14.19192 million in 2023, increasing the pressure on net income.

4. Increase in Credit Losses: Due to delayed payments for budgeted projects, accounts receivable increased, resulting in a significant increase in credit losses, further compressing the company's profit margin.

5. Unfavorable Market Environment: The overall performance of the biopharmaceutical industry was weak, with a 9.44% decline in the Shenzhen Medical and Biological Index for the whole year, affected by factors such as pressure on medical insurance revenue and expenditure, and slower-than-expected recovery in hospital settings.

Peer Comparison

1. Industry-wide Analysis: The overall market performance of the biopharmaceutical industry was weak in 2024, with the Shenzhen Medical and Biological Index falling 9.44% for the whole year, affected by multiple factors such as pressure on medical insurance revenue and expenditure, and slower-than-expected recovery in hospital settings.

2. Peer Evaluation Analysis: Compared to other companies in the same industry, InMed's decline in operating revenue was more pronounced, indicating a lack of market positioning and product competitiveness. Competitors such as Yingkang Medical and Weili Medical achieved good growth, and InMed needs to pay attention to its market position and competitiveness.

Conclusion

InMed's decline in operating revenue in 2024 was mainly due to weakened market demand, product sales issues, and intensified industry competition. In addition, the increase in R&D and marketing expenses also had a negative impact on short-term income. The overall industry environment's weakness further exacerbated these challenges, and InMed needs to take effective measures to address its current operating difficulties.

Opportunities

1. Potential R&D Results: InMed has over 350 in-progress projects, with several drugs expected to enter the clinical stage in 2024, potentially bringing significant revenue growth in the future.

2. Potential Market Demand Recovery: With changes in macro policies, the biopharmaceutical industry is expected to see an improvement in its fundamentals in the next few years, providing InMed with an opportunity to regain growth.

3. Improved Product Competitiveness: Through optimizing product portfolios and market strategies, InMed can enhance its market share and alleviate current revenue pressure.

Risks

1. Persistent Industry Slump: If the overall industry environment fails to improve, InMed's revenue may face further declines.

2. Liquidity Pressure: With increased demand for working capital and increased interest expenses, the company may face financial pressure, affecting its operational capabilities.

3. Intensified Competition: Competitors in the same industry performed well, and InMed needs to increase its efforts in R&D and market promotion to maintain its competitive advantage.