fosun pharma announces 2013 interim results, net profit surged 50.07%, core business maintained stable growth
unaudited financial summary
for the six months ended 30 june
profit before tax
profit attributable to owners of the parent
earnings per share attributable to ordinary equity holdings of the parent
- basic and diluted (rmb)
27 august 2013], shanghai fosun pharmaceutical (group) co., ltd. (“fosun pharma” or the “company” ; stock code: 02196; and, together with its subsidiaries, the “group”), a leading healthcare company in the prc, announced its unaudited interim results for the six months ended 30 june 2013 (“period under review”).
during the period under review, the principal businesses of the group grew rapidly as it continuously adhered to its business philosophy of ‘‘innovation for good health’’, focused on its core pharmaceutical business, continued to develop product innovation and management improvement, and promoted the strategies of organic growth, external expansion and integrated development. in the first half of 2013, the revenue of the group amounted to rmb4,473.64 million, representing an increase of 29.14% from the same period of 2012. the group recorded profit before tax of rmb1,451.09 million, increased by 46.99% compared with the same period on last year. net profit attributable to owners of the parent of rmb1,053.14 million, which increased by 50.07% compared with the corresponding period of 2012. the increase in revenue was mainly due to the growth in the sales of the pharmaceutical manufacturing, and the medical diagnosis and medical devices manufacturing business segments as well as the business contribution from the newly acquired and merged companies. the board of directors of the group does not recommend payment of an interim dividend for the six months ended 30 june 2013.
mr. chen qiyu, executive director and chairman of fosun pharma, said, “in the first half of 2013, we have made unremitting efforts and achieved remarkable progress in the implementation of internationalization strategy, strengthening market position and social responsibility. in april this year, we acquired alma lasers ltd., a leading manufacturer of medical laser, light-based, radiofrequency and ultrasound devices. this showed that we are very optimistic in the prospects of the global aesthetics industry, especially in the emerging markets among developing countries. it also marked an important step forward for the development of fosun pharma’s globalization. ”
during the period under review, the pharmaceutical manufacturing and r&d segment of the group recorded a revenue of rmb3,034.61 million, representing an increase of 39.47% compared with the corresponding period of 2012, and segment results of rmb525.51 million, representing a year-on-year increase of 45.08% compared with the corresponding period of 2012. the increase in the revenue and segment results was mainly due to the increase in the sales revenue of major products and changes in the scope of consolidated statements. during the period under review, the group recorded a total profit of rmb576.12 million in the pharmaceutical manufacturing and r&d segment, representing an increase of 28.84% compared with the corresponding period of 2012. during the period under review, the pharmaceutical manufacturing segment of the group grew rapidly and the development of its professional operational team was further strengthened. in the first half of 2013, the sales of the group’s major products in therapeutic areas such as cardiovascular system, central nervous system, blood system, metabolism and alimentary tract and anti-infection maintained their growth momentum.
during the period under review, the group continued to increase its investments, focusing on the r&d of generic biopharmaceutical drugs and innovative drugs. as of the end of the reporting period, the group invented 114 pipeline drugs and vaccines. during the reporting period, feibusita apis and formulation have been granted with production approvals and new medicines and entecavir apis have also been granted with production approvals. during the period under review, the group had applied for 12 patents in the pharmaceutical manufacturing and r&d segment. during the year under review, the group has completed construction and selection of high-expressing production cell lines for four monoclonal antibody products, tendered applications for clinical trial to the state food and drug administration for two monoclonal antibody products and expects to obtain approval for the clinical trial for a new small molecular innovative chemical drug by the end of the year.
in the aspects of pharmaceutical distribution and retail business, the group recorded a revenue of rmb708.31 million during the period under review, representing a year-on-year increase of 2.26% as compared with the corresponding period of 2012. as of the end of the period under review, the group’s pharmaceutical retail brands, for me pharmacy and golden elephant pharmacy, had a total of over 660 retail pharmacies, maintaining leading position in their respective regional markets and leading market share in the pharmaceutical retail markets in shanghai and beijing. meanwhile, the group actively explored the transformation of the pharmaceutical retail business model and tried new business models. moreover, sinopharm group co., ltd. maintained rapid growth in retail business, generating a revenue of rmb80,066 million, which represented an increase of 20.29% compared with the same period of last year. the distribution network of sinopharm further expanded to 51 distribution centers in 30 provinces, autonomous regions and municipalities. its direct customers included 10,692 hospitals, during the period under review, sinopharm’s revenue from pharmaceutical distribution business increased by 20.95% compared with the same period of last year to rmb75,854 million. meanwhile, the pharmaceutical retail business of sinopharm also maintained growth with revenue of rmb2,275 million generated during the period under review, representing an increase of 17.14%. its pharmaceutical retail network has further expanded to over 1,762 retail pharmacies as of 30 june 2013.
in the aspect of healthcare services, during the period under review, the healthcare services entities controlled by the group recorded a total revenue of rmb165.59 million. furthermore, the group continued to support and facilitate the development and deployment of the hospital and clinic network under ‘‘united family hospital’’, a leading premium healthcare services brand of chindex. in 2013, there were significant increase and positive growth momentum in the united family hospital’s businesses in beijing, shanghai and tianjin. beijing united family rehabilitation, one of the world’s leading hospitals, commenced operation officially. during the period under review, revenue of the united family hospital increased by 22% to us$87.54 million as compared with the corresponding period last year, reflecting the growing market demand for premium healthcare services and the strong brand recognition of ‘‘united family hospital’’.
in the medical diagnosis and medical devices segment, the group furthered its development in the medical diagnosis and medical devices segment by increasing investments and enhancing business cooperation in 2013. with respect to the medical diagnosis segment, the group has invested in saladax biomedical, inc., a u.s. corporation which is principally engaged in individual dose detection, and also increased its equity interest in sd biosensor, inc., a korean company which manufactures rapid diagnostic products during the period under review. with respect to the medical devices segment, the group invested in the world’s leading supplier of laser medical equipment, alma, during the reporting period. in the first half of 2013, alma recorded a revenue of us$46.99 million (the revenue from the date of acquisition to the end of june amounted to rmb74.94 million), maintaining its global leading position in the relevant market segment. meanwhile, the group further increased the varieties of diagnostic products and expanded our market share of rapid diagnostic products in the international market through the consolidation with saladax biomedical, inc., a u.s. corporation which is principally engaged in individual dose detection, and also sd biosensor, inc., a korean company which manufactures rapid diagnostic products.
in the aspect of award and recognition, in july 2013, the pharmaceutical manufacturing segment of the group ranked 17th among the ‘‘top 100 enterprises in pharmaceutical manufacturing industry in china for 2012’’, which was released by the southern medicine economic institute under the china food and drug administration (cfda), and the group also was awarded ‘china’s most innovative pharmaceutical enterprise’. this award reaffirmed the group’s outstanding research capacity and market position. recently, the group was listed in the social responsibility dimension sample stock of ‘cctv financial 50 index (399550)’ and the ‘cctv financial 50 responsibility index (399555)’. as one of the three companies newly entering the index, we prove that we are the pioneer in the responsibility dimension among the industry.
mr. chen concluded, “looking ahead, the pharmaceutical industry in prc will be presented with numerous opportunities. under the strong support of ‘twelfth five-year plan’ by the central government, we are fully confident for the future and we believe that we are able to maintain corporate sustainability. being a leading healthcare company in the prc, the group will continue to be committed to improve public health as its mission, and adhere to its group philosophy “innovation for good health’’, so as to capture the opportunities presented by the rapid development of the pharmaceutical market in china as well as rapid growth of the generic drugs in mainstream markets such as europe and the united states. it will adhere to the development strategy of organic growth, external expansion and integrated development, and further its efforts in acquiring quality companies in the pharmaceutical industry. by continuing to optimize and integrate various resources in the pharmaceutical industry, strengthening development of product innovation and product marketing system, and enhancing the core competence of the group, the group strives to further enhance its operating results. meanwhile, the group will continue to actively explore the domestic and international financing channels, which create favourable conditions for the continuous development of the group and bring satisfactory returns to our shareholders.”