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Shanghai Pharmaceuticals Released 2016 Interim Results
Manufacturing and Retail Drove Business Growth;
Implement Intensive Strategies for Innovation
HONG KONG, Aug 25, 2016 - (ACN Newswire) - Shanghai Pharmaceuticals Holding Co., Ltd. ("Shanghai Pharmaceuticals" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 601607.SH; 2607.HK), the integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical products and service markets, today released its interim results for the first half of 2016 (the "reporting period"). According to the data, from January to June 2016, Shanghai Pharmaceuticals' operating revenue was RMB59.695 billion, up by 17.16% on a year-on-year ("YOY") basis. Net profit attributable to the equity holders of listed company was RMB1.732 billion, representing an increase of 12.94% on a YOY basis. Basic earnings per share amounted to RMB0.6443, up by 12.94% on a YOY basis; and basic earnings per share after deducting non-recurring profits and losses were RMB0.5956, up by 10.03% on a YOY basis. The Company adhered to the new three-year strategic objectives and annual budget plans, as such, the operational objectives of the first half of the year were satisfactorily fulfilled, thereby laying a good foundation for fully accomplishing the annual objectives.
For the aspect of pharmaceutical research and development, Shanghai Pharmaceuticals' research and development (the "R&D") expenses for the first half of 2016 amounted to a total of RMB288 million, accounted for 4.50% of the Company's manufacturing sales revenue. The sales revenue from the Company's new products launched through the R&D amounted to RMB856 million, accounted for 13.35% of the Company's manufacturing sales revenue. The Company applied for 3 drug clinical trial approvals and obtained 22 drug clinical trial approvals. Also, the Company filed 58 invention patent applications and was granted 26 invention patents. As at the end of the Reporting Period, the Company owned a total of 286 invention patents. Shanghai Pharmaceuticals continued to optimize the R&D system, expand and enrich its product line. In the meantime, it propelled clinical trial researches on innovative drugs. By integrating the R&D resources and adopting an open R&D model, the Company has formed close collaborative relationships with Chinese Academy of Sciences, China Pharmaceutical University, Shenyang Pharmaceutical University, the Second Military Medical University, Sichuan University, Mitsubishi Tanabe Pharma Corporation and Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. Meanwhile, the Company has carried out consistency evaluation for the quality of generic drugs proactively according to the government's policy, as to guarantee the quality and efficacy of its products.
In respect of the pharmaceutical manufacturing business, Shanghai Pharmaceuticals' sales revenue in the first half of 2016 was RMB6.411 billion, representing an increase of 5.34% on a YOY basis; its gross profit margin was 51.74%, an increase of 2.55 percentage points on a YOY basis. The Company continued to implement its strategy of focusing on key products, and sales revenue of 60 key products reached RMB3.48 billion, up by 9.26% on a YOY basis, accounting for 54.28% of the revenue from industrial sales, up by approximately 0.7 percentage point on a YOY basis. The gross profit margin of the key products was 69.01%, up by 1.73 percentage points on a YOY basis. Among the key products, 39 products achieved a growth rate higher than or equivalent to that of similar products of IMS Health Inc. 24 key products are expected to achieve sales revenue for the year exceeding RMB100 million. Shanghai Pharmaceuticals committed to technical innovation and production upgrade, and announced a new round of lean development plans to maintains its advantage in quality and cost. During the Reporting Period, the Company also deepened its marketing system construction and expanded its market access network based on industrial enterprises from 8 offices in 4 zones to 10 offices in 4 zones, stepping further to promote system construction of Marketing Department I, II and III. The Company vigorously explored new products and business fields. Its subsidiary Shanghai Traditional Chinese Medicine Co., Ltd. jointly established a joint venture with Japan Tsumura to speed up the entry to the market of TCM formula granule, and strived to create a new developing pattern for the whole industry chain of Chinese medicine.
In respect of pharmaceutical service business, during the Reporting Period, the sales revenue from pharmaceutical distribution business was RMB53.374 billion, representing an increase of 18.97% on a YOY basis. The gross profit margin was 6.02%, up by 0.08 percentage point on a YOY basis. Shanghai Pharmaceuticals achieved growth in its existing pharmaceutical distribution business and which became the main driver for the Company's performance growth, continued to expand and diversify its production lines, and further expanded its innovative services on hospital supply chain, entrusting a total of 99 hospital pharmacies. During the Reporting Period, the Company's sales revenue from pharmaceutical retail business was RMB2.490 billion, up by 7.64% on a YOY basis; gross profit margin was 15.64%, decline 0.15 percentage point on a YOY basis. Shanghai Pharmaceuticals implemented its strategic layout of "building e-commerce platform online with three-layer network offline" in order to develop a new model which integrates online/offline retail and patient service. In addition, SPH Cloud Health completed A+ round financing to further push forward the prescription drug e-commerce business. In respect of value-added services, financial products under "Yiyao Members" were launched to relieve patients' financial pressure regarding buying costly drugs; the unified "Yiyao Pharmacies" were launched to provide a "one-stop" retail solution regarding prescription drugs; "Yiyaobao" project was also launched to offer a comprehensive "Internet Plus" drug supply chain solution, contributing to a mutual benefit of realizing the Company's commercial value and achieving social benefit.
Source: Shanghai Pharmaceuticals
Sectors: Daily Finance, BioTech, Healthcare & Pharm
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