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
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
The Art of DevOps provides a fun overview to help teams understand DevOps. Written in the style of the famous 6th century Chinese manuscript “The Art of War,” this eBook describes DevOps in the form of a mission to continuously deliver assets to the operational battlegrounds safely, securely, and quickly. It’s a fun read with valuable insights.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...