Welcome!

News Feed Item

Sihuan Pharmaceutical Announces 2013 Annual Results

Revenue and Profit Attributable to Owners of the Company Up by 55.6% and 44.1% Respectively

HONG KONG, March 11, 2014 /PRNewswire/ -- Sihuan Pharmaceutical Holdings Group Ltd. (HKEx: 0460) ("Sihuan Pharmaceutical" or the "Company"), a leading pharmaceutical company with the largest cardio-cerebral vascular ("CCV") drug franchise in China's prescription drug market, today announced its annual results for the year ended 31 December 2013 ("2013" or the "Year").

Financial Highlights


For the Year Ended 31 Dec 2013

Key Income Statement Items

RMB Million

Change


2013

2012


Revenue

4,732.7

3,042.5

+55.6%

Gross Profit

3,699.7

2,289.4

+61.6%

Profit Attributable to Owners of the Company

1,303.0

904.4

+44.1%

Proposed Final Dividend per Share (RMB Cents)

2.1

5.8

N/A






In 2013, the Company not only achieved a sharp sales rebound for its two key products, Kelinao and Oudimei, but also recorded rapid growth of its fast-growing promising products such as Yuanzhijiu, Yeduojia, and Danshen Chuangxionqin. With the increase of sales growth of our CCV drugs, the Company's revenue surged 55.6% to RMB4,732.7 million. Overall gross profit increased by 61.6% from RMB2,289.4 million in 2012 to RMB3,699.7 million in 2013 due to an increase in the sales of products with higher gross profit margins, while profit attributable to owners of the Company jumped 44.1% to RMB1,303 million. A final dividend of RMB2.1 cents per share (2012: RMB5.8 cents) was recommended by the Board together with a bonus issue of 1 bonus ordinary share at par value of HK$0.01 each for every 1 existing ordinary share in return for shareholders' support and are subject to the approval of the shareholders at the annual general meeting of the Company to be held on 30 May 2014.   

Dr. Che Fengsheng, Chairman and CEO of the Company, said, "Backed by our industry-leading capabilities in integration and sales and marketing, we not only completed integrating of the acquired companies, but also grew bigger and stronger in the increasingly fierce pharmaceutical market. In 2013, we reaped the fruits of our labor and achieved rapid financial growth and outstanding operational results. This reflected the success of our previous expansion, which brought us a more diversified product portfolio, further balanced revenue stream and strengthened market leadership. On top of that, we achieved breakthroughs in our research and development for new drugs, ensuring that our strong growth momentum will be sustained by an enhanced product pipeline in the long run. As a result, we become the fourth largest pharmaceutical company in the Chinese hospital market and kept our lead in China's cardio-cerebral vascular ("CCV") prescription drug market."

Sharp Rebounds of Key CCV Products and Rapid Growth of Fast-growing Promising Products Boosted Strong Growth in Sales

CCV Products

Thanks to a young and diversified product portfolio, sales of CCV products grew 60.7% to RMB4,505.0 million, which accounted for 95.2% of the Company's total revenue, continuing to be the Company's largest revenue contributor. The significant growth was mainly attributable to the exciting rebound in sales for its two key products, Kelinao and Oudimei, and the rapid growth of its promising products. The Company stepped up its support to Kelinao's distributors for academic promotion and deepened its penetration into low-end markets, sales of Kelinao increased by 71.7% year-on-year to RMB1,115.3 million. As for Oudimei, the successful integration of its distribution network boosted its sales and marketing efficiency. As a result, sales of Oudimei jumped 93.1% to RMB 1,343.9 million during the Year. Promising products such as Yeoduojia, Danshen Chuanxiongqin, Guhong, Yimaining and Yuanzhijiu maintained strong growth in sales, which were up significantly by 225.7%, 83.9%, 59.8%, 54.9% and 19.7% respectively.

Non-CCV Products

The Company's non-CCV products maintained stable growth in sales volume. The Company launched its first non-CCV exclusive first-to-market generic drug Roxatidine, which has expanded its market by tender wins in two provinces and supplementary tender submissions in another province. In addition, it entered drug reimbursement list ("DRL") of one province. The product is expected to generate significantly more revenue with more extensive marketing and after winning tenders and entering provincial DRL in more provinces.

Clear Sales and Tendering Strategies Achieved Promising Results

During the Year, the Company stepped up its academic promotion work and boosted incentives to distributors for Kelinao and Oudimei, to motivate distributors to promote the Company's products. In the meantime, the Company devised clear tendering strategies for its products, i.e. horizontal expansion to increase market coverage of its products by provincial tender wins and supplementary tender submissions, as well as vertical expansion into low-end markets with provincial Essential Drug List ("EDL") tender wins and provincial New Rural Cooperative Medical Scheme List ("NRCMSL").

Positive Results from New Products Development

The Company has intensified efforts on innovative drug projects and achieved promising results by leveraging its effective resources integration. To date, the Company has submitted investigational new drug ("IND") applications for seven Category 1.1 innovative drugs and has obtained Approval for Clinical Trial for five Category 1 innovative drugs from the China State Food and Drug Administration ("CFDA"). Among them, Category 1.1 innovative drug Benapenem and Imigliptin Dihydrochloride have been awarded as The National Major Innovative Drug Projects.

As for generic drugs, after securing production licenses for the exclusive first-to-market generic drug Roxatidine and Category 3.1 new drug Nalmefene Hydrochloride Injection at the end of 2012 and start of 2013 respectively, the products have successfully passed on-site inspections and were officially launched. In total, the Company has 17 Category 3.1 first-to-market generic drug projects under development. By the end of 2013, production license applications of 22 generic drugs were filed in total and these products are expected to be launched progressively in the coming years.

Production and Quality Management

The Company completed the construction of its main production and R&D base in Tongzhou, Beijing and the upgrade of all its other production bases. In compliance with the new Good Manufacturing Practice standard, these constructions projects cover a total of over 300,000 square meters which mark the largest constructions in the Company's history. The Company's Active Pharmaceutical Ingredients production base, Langfang Gaobo Jingband, received certification from the Food and Drug Administration of United States during the Year.

Future Prospects

Looking forward, the development of China's pharmaceutical industry will continue to be driven by market potential released from expanded national medical insurance coverage, accelerated urbanization and ageing population, enabling it to maintain fast growth in 2014. The management believes that companies such as Sihuan Pharmaceutical will reap benefits from the government's policies for encouraging innovation and industry consolidation, being an innovative company with strong integrated capabilities, in R&D, production and sales and marketing, with its focus on exclusive and patented drugs. 

Looking ahead, the Company plans to continue to tap potential of its strong existing product resources, with all six key and potential blockbusters being exclusive products, coupled with over ten products with exclusive formulations or dosages. In addition, many of its products have been included in the national or provincial EDL or were recently added to NRCMSL of many provinces to further market penetration. This is a prestigious product mix which helps the Company to differentiate itself amidst fierce market competition, and is expected to sustain business growth in the coming years. Also, the Company will continue to reinforce its nationwide distribution network and optimize its unique sales and marketing system. Moreover, the Company will continue to enriching its product resources through R&D, acquisitions and product collaboration. The Company's long-term growth momentum will be supported by a variety of patented drugs and first-to-market generic drugs under development. These products are expected to launch from 2015.

Dr. Che concluded, "I have full confidence in Sihuan Pharmaceutical's future development, as we have established an effective operating system and a solid business foundation. I firmly believe that we are poised to seize opportunities arising from the industry consolidation and will be able to achieve stable and sustainable growth. We are making strides towards achieving our goal of becoming the most competitive Chinese pharmaceutical company and developing a global reputation for excellence." 

About Sihuan Pharmaceutical Holdings Group Ltd.

Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading Chinese pharmaceutical corporation and the largest cardio-cerebral vascular drug franchise in China's prescription drug market by market share. The Company also became the fourth largest pharmaceutical company in terms of hospital purchase in China's hospital market by the end of 2013. The success of the Company can be attributed to its differentiated and proven sales and marketing model, extensive nationwide distribution network, young and diversified product portfolio, and strong R&D capabilities. The Company's current products encompass the top five medical therapeutic areas in China: cardio-cerebral vascular system, central nervous system, metabolism, oncology and anti-infectives. Its major products such as Kelinao, Oudimei, Yuanzhijiu, Yeduojia and Guhong are widely used in the treatment of various cardio-cerebral vascular diseases.

SOURCE Sihuan Pharmaceutical Holdings Group Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...