Date: 31st March, 2016 - Hong Kong
- The revenue of the pharmaceutical preparations was RMB113.6 million, increased by approx. 17.5%; the total revenue of ENT medicines was approx. RMB400.0 million, increased by approx. 71.4%; the total revenue of cerebro-cardiovascular medicines was RMB417.0 million, increased by approx. 5.8%. Pharmaceutical intermediates (biologics, specialized raw material and healthcare products) was recorded the total revenue of approx. RMB1,466 million, medical device recorded a revenue of approx. RMB27.49 million.
China Grand Pharmaceutical and Healthcare Holdings Limited (hereinafter, the "Company") (HKEx: 00512) announced its 2015 annual results yesterday.
The Company is mainly engaged in sales, manufacture and research and development of three kinds of pharmaceutical products, including pharmaceutical preparations, medical device and pharmaceutical intermediates (biologics) and specialized raw material.
In pharmaceutical preparations, cerebro-cardiovascular medicines is one of the core segments that the Company is highly focus on, particularly has a market leading position on surgical emergency medicines; the product portfolio of ENT medicines has a broad and advanced variety of ophthalmic products; respiratory tract medicines, the product has unique formulation advantage, also has a great potential in the market. The medical device product portfolio of the Company, including ophthalmic surgical medical device and disposal products, the products reach to the international standard, with market-leading position; cardiovascular medical devices, drug-eluting balloons with world leading technology, with international market competitiveness and great potential in the China market and a wide range of applications. The pharmaceutical intermediates and specialized raw materials of the Company possess leading biological technologies to competitive in the international market. The Company ranked at 38th under the China pharmaceutical industry in 2015.
The Company will continuously strengthen the competitiveness of the three core products, enhance the product technology level, continuously expand the product variety and sales ratio of blockbuster products into the product portfolio, actively prepare for the future competitive challenge, consolidate and develop the corporate image and brands, to strive and build a modern pharmaceutical enterprise to get respect from doctors and patients in China and make contribution to the society.
The Company recorded the total revenue amount of approximately HK$3,245.55 million in 2015, which increased by approximately 4.0% in compared with the same period of last year, the growth rate is mainly due to two aspects, firstly, the Company has always aware the importance of optimization and adjustment to the product portfolio, actively devote and prioritize the development of high gross profit pharmaceutical preparations and biologics products, to ensure the growth rate of the overall gross profit of the Company reach to the expectation; secondly, the progress of preparing and completing of the GMP certification application of the subsidiaries of the Company, production and sales received a certain level of impact, up to now, all the certification has been completed, the affected products will get back on track and contribute both revenue and profit to the Company in 2016; thirdly, the products of the Company were manufactured and sold in China, due to the depreciation of the RMB over the past year, the exchange difference arising in the consolidated financial results is due to the consolidated financial statement of the Company are presented in HKD, while the functional currency of most of the subsidiaries are in RMB.
ENT is always one of the key developments of the Company, with a leading position in the China ENT sector. In 2015, the total revenue of ENT medicines was approximately RMB400.0 million, increased by approximately 71.4%. The revenue of the endogenous products were RMB276 million, with 29.8% growth, the newly acquired respiratory tract disease medicines "Qie Nuo" contributed RMB100 million of revenue. "Qie Nuo" is the executive product from the newly joined member company Beijing Jiu He Pharmaceutical Company Limited, treatments of chronic rhinosinusitis, acute rhinosinusitis and respiratory diseases, it is listed in more than 20 Province-level Reimbursement Drug Lists, it has a leading position in the China market. China pharmaceutical market has always been lack of pediatric medicines, "Qie Nuo" (pediatric formulations) is going to be a revenue stimulation point, and the Company is going to devote resources to promotion work, expecting "Qie Nuo" will contribute more than 500 million of revenue to the Company, covering 2000 hospitals nationally.
In cerebro-cardiovascular medicines, the emergency products of the Company has an influence to such market, the total revenue was RMB417 million in 2015, increased by approx. 5.8%, In which, the emergency purpose product Noradrenaline Bitartrate injection recorded at approximately RMB123 million in revenue, increased by approximately 21.0% as compared with the same period of last year. Another key product, Methoxamine Hydrochloride Injection which was used for surgical emergency purpose also contributed approximately RMB33.71 million in revenue, increased by approximately 88.6% compared to last period of last year.
In medical device, the Company is always aware the importance to developing progress of the core products such as medical device, the Company firstly received revenue contribution of RMB27.49 million from ophthalmic medical device and disposal products, these products obtain international-level of technology, with unique competitiveness, the Company believe they will bring a positive revenue and net profit contribution. Alternatively, the Company completed an acquisition of a German company, Cardionovum GmbH, which engaged in R&D, manufacture and sale of cardio interventional medical device. The newly joined member company has already received European product certification, achieved a sizable sales record in Europe, products are welcomed by medical professions and patients. The product registration in China has already started, the core drug-eluting balloon products are "RESTORE", "LEGFLOW" and "APERTO", their indications are coronary artery diseases, peripheral artery diseases and haemodialysis induced stenosis respectively, they are expecting to launch in China in 2018. According to the market data, within a few years after launching, the sales of such products will be more than RMB 1 billion, this is going to be an important milestone of the Company to take part in the strategy to introduce advanced international-level medical device.
In the pharmaceutical intermediates and healthcare products, it was affected by the market competitiveness and restriction of environmental requirement issue, the revenue of such sector was recorded as RMB612 million, dropped 7.02%. To increase the product competitiveness, the Company has adopted biotechnology and gene technology to the manufacturing processes in the following products, including some amino acids and steroid hormones intermediates. The amino acids that adopted enzymatic production products such as L- cysteine hydrochloride anhydrous, N- acetyl-cysteine and L- cysteine hydrochloride monohydrate are all under good development progresses, the gross profit of some enzymatic production amino acids could reach up to 55%. The revenue of amino acids in 2015 was RMB330 million, an increase of approximately 7.1% in compare with same period last year. The agricultural products that adopted biotechnology received a revenue of RMB120 million, with an increment of 13%. In steroid hormones intermediates, due to the delay of GMP certification application and market competitiveness, the revenue amount was RMB 242 million, dropped 9.7%. The Company has a market-leading health product, taurine, due to the completion of technical improvement that enhance production efficiency, outstanding performance, the revenue recorded as RMB223 million, increased by 17.2%.
In product development and technology enhancement, the Company is always aware, highly devote resources. The Company received 22 China GMP and international certifications in 2015, meanwhile, also received 13 new Approval Documents, including 3 Production Approval (生產批文), such as anti-glaucoma Latanoprost raw materials and Latanoprost eyedrops, these are going to be one of key development projects of the Company.
The strategic development of the Company is divided into three stages, firstly, upgrade of production plants has been completed in 2013, secondly, consolidation of the core product portfolio has been completed, and the third stage is already started, which is adding the newly blockbuster products into the product portfolio. At this stage, the Company will endeavor to cerebro-cardiovascular and ENT core therapeutic areas, actively develop innovative pharmaceutical preparations and medical device products, create a unique product competitive advantage and continuously improve the production and sales and marketing efficiency, improve product gross margin and profitability. To strength the core competiveness of the Company, gradually establish a unique product portfolio and technology, to form a team that thoroughly understand the China local market with international vision, to train up an ability to convert products to profit. Increase the visibility and market influence of the corporate image and product brands, to maintain rapid growth in annual results performance, to complete the goal of reaching the annual sales of more than HK$10 billion, rank at the top 20 in China Pharmaceutical Industry, to bring profits to all shareholders.
End of Press Release