Welcome!

News Feed Item

Jintian Pharmaceutical Announces 2013 Annual Results

- M&A and Organic Growth Boost Revenue and Profit
- Distinctive Business Model Drives Substantial Improvement in Profitability


Hong Kong, Mar 21, 2014 - (ACN Newswire) - Jintian Pharmaceutical Group Limited ("Jintian Pharmaceutical" or "the Company", stock code: 2211) is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2013(the "The Reporting Period").

In 2013, the Company achieved significant growth in both retail and distribution businesses through implementation of effective marketing strategies and smooth integration of newly acquired businesses. During the Reporting Period, the Company recorded revenue of RMB3, 323.5 million, representing an increase of RMB997.2 million or 42.9% as compared with the corresponding period of last year; gross profit of the Company during the Reporting Period was approximately RMB 936.4 million, representing an increase of 71.6% as compared with the corresponding period of last year, of which gross profit from retail business increased significantly by approximately 89.2% to RMB605.2 million, while gross profit from distribution business rose by approximately 46.6% to RMB331.2 million; profit attributable to shareholders was RMB355.1 million, representing an increase of 66.1% as compared with the corresponding period of last year; Diluted earnings per share amounted to RMB0.22, representing an increase of 69.2% as compared with 2012.

The significantly improvement of Jintian Pharmaceutical's profitability is due to the distinctive business model which improved overall gross margin in an all-round way. During the Reporting Period, gross margins of the company reached 28.2%, representing an increase of 4.7 percentage points as compared with that of 2012. Gross margins of retail business in 2013 were 39.1%, representing an increase of 4 percentage points as compared with that of 2012. The rapid growth of retail business segment, high margin products and effective Direct-supply Model are main drivers for the significant growth of gross margin in 2013. Also, in-house training and development center Jintian institute and the membership program, which focuses on promoting customer loyalty, also contribute to the growth of gross margin.

Business Review

For the retail business segment, during the Reporting Period, the Company continued to expand its retail network through organic growth and acquisitive expansion. The Company successfully acquired 192 retail pharmacies and opened 3 new ones. As at 31 December 2013, the Company had 794 retail pharmacies in total. In respect of retail product mix, the Company offers its customers a wide range of pharmaceutical products, healthcare products, medical devices and other personal and family care products at competitive prices.

For the distribution business segment, focusing on high margin products (including licensed products and products with exclusive distribution rights), the Company has established an effective Direct-supply Model and has an extensive nationwide distribution network with large number of end-customers (i.e. third-party retail pharmacies, hospitals and clinics). As at 31 December 2013, revenue and gross profit of high margin products accounted for 32.7% and 57.5% of total revenue and gross profit of distribution business, respectively. The Company had a nationwide distribution network covering approximately 3,800 customers, including approximately 2,600 pharmaceutical retailers, hospitals and clinics and approximately 1,200 distributors.

In addition, during the Reporting Period, the company's member base grew rapidly. And besides the traditional discounts on purchases and membership points, the company's members were also provided with additional value-added services, such as free body check-ups, give-away and affectionate services, which further promoted customer loyalty, increased brand awareness and became a strong driver for our sales revenue.

Future Plan

Looking forward, the Company will continue to focus on our business expansion in North China and explore expansion opportunities in the Greater China Region. The company will further expand our geographical coverage and improve revenue and profitability through business acquisitions. By further deepening the brand of "Jintian Aixin" and expanding the depth and breadth of brands, we will establish the Company's reputation and product awareness. Through continuous diversification of value-added services provided to our members, the Company will expand its member base and keep enhancing the service level. According to market trends and customer preferences, we will also adjust and diversify our retail and distribution product mix and introduce suitable new brands and products under our Direct-supply Model. The launch of online pharmacy and layout of offline pharmacies will be accelerated.

Jin Dongtao, Chairman and executive Director of the company commented, "Jintian Group has an exclusive business model, a model that helps to solve the puzzles in Chinese pharmaceuticals industry. We have featured product portfolio with high gross profit, and our exclusive Direct-supply Model enables us to streamline our supply chain by eliminating and reducing distribution intermediaries which maximizes our profit. We have strong merger and acquisition capacity, through which we are able to purchase and integrate more retail pharmacies to our current net work. Meanwhile, we also promote our brand and product sales through Jintian's particular membership loyalty program. Therefore, we are able to maintain stable and high profit margin while achieving rapid growth in our business model. "





Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International 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 ...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Managing mission-critical SAP systems and landscapes has never been easy. Add public cloud with its myriad of powerful cloud native services and this may not change any time soon. Public cloud offers exciting new possibilities for enterprise workloads. But to make use of these possibilities and capabilities, IT teams need to re-think everything they have done before. Otherwise, they will just end up using public cloud as a hosting platform for their workloads, aka known as “lift and shift.”
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...