Health & Beauty

Recently, China Pharmaceutical Health Industry Co., Ltd. (hereinafter referred to as "China Pharmaceutical"), a subsidiary of General technology Group, held a performance presentation meeting for 2022 and the first quarter of 2023. In 2022, China Pharmaceutical continued to expand its main business, seize market opportunities, explore innovative business models, successfully reverse the double decline situation and demonstrate a high-quality development trend. In 2022, its operating revenue was 37.593 billion yuan, a year-on-year increase of 3.75%; The net profit attributable to listed shareholders was 736 million yuan, a year-on-year increase of 13.70%; In the first quarter of 2023, the revenue increased significantly by 47.08% year-on-year, and the net profit attributable to the parent company increased by 9.27% year-on-year.

At the 86th National Drug Fair held recently, China Pharmaceutical, along with 9 companies including Tianfang Pharmaceutical and Sanyo Pharmaceutical, actively participated in the exhibition and diversified promotion, connecting high-quality resources with market demand, strengthening in-depth communication and cooperation within the industry, further expanding market cooperation space, and enhancing the influence of China Pharmaceutical in the pharmaceutical industry and society; And won the "Industry Benchmark Award for Best Industrial Enterprise" award at the "Top 30 of the Spring Festival" ceremony.

Accelerate the extension to the entire industrial chain

Strong growth in the pharmaceutical business sector

In 2022, the domestic economic situation has not yet fully recovered, the demand in the international trade market continues to shrink, and the pharmaceutical industry as a whole is under pressure. China Pharmaceutical has accelerated the optimization of its industrial layout structure, strengthened innovation drive, and actively leveraged its collaborative advantages. With the pharmaceutical and medical device business as the engine and the pharmaceutical industry as the support, the integrated industrial pattern of trade, industry, technology, and service has been continuously established and consolidated. As a result, it has created a revenue of 37.593 billion yuan and a net profit attributable to the parent company of 736 million yuan for the entire year, with a year-on-year increase of 3.75% and 13.70%, successfully reversing the double decline in 2021.

As of the end of 2022, the total assets of China's pharmaceutical industry amounted to 35.899 billion yuan, a year-on-year increase of 15.39%.

From a business perspective, in 2022, China Pharmaceutical will continue to consolidate its international trade sector, plan its overseas network layout, strategically explore international trade markets, open up multiple channels, and develop multiple cooperation opportunities. It has achieved more than ten exclusive cooperation businesses in key regional markets such as Latin America, Africa, and Central Asia.

According to the annual report, the import pharmaceutical trade business in the international trade sector has achieved continuous growth year-on-year. In 2022, it achieved revenue of 8.766 billion yuan, a year-on-year increase of 4.32%, and achieved operating profit of 692 million yuan, a year-on-year increase of 10.51%.

The business development of the pharmaceutical commercial sector is more eye-catching, with a revenue of 27.393 billion yuan last year, a year-on-year increase of 10.60%; The operating profit was 595 million yuan, with a strong year-on-year growth of 203.15%.

This is mainly due to China Pharmaceutical increasing its efforts in developing new varieties in 2022, actively seizing upstream resources, and continuously developing end customers. Throughout the year, it added over 10000 new varieties, more than 2700 new development suppliers, more than 1800 new end customers, and more than ten new cooperation projects. It continued to promote the implementation of SPD projects, continuously improving commercial area coverage and comprehensive service capabilities.

In the pharmaceutical industry sector, China Pharmaceutical has continuously strengthened its marketing of chemical medicine business, achieved breakthroughs in online channels, and achieved initial results in innovative sales models; At the same time, we have strengthened the construction of varieties and made significant progress in drug research and development. Last year, 21 varieties were approved and 17 varieties were registered and declared. Affected by cost growth factors such as volume procurement and fuel power, the revenue of the pharmaceutical industry sector in 2022 was 3.582 billion yuan, slightly decreasing compared to the same period.

China Pharmaceutical continues to promote the coordinated development of industrial, commercial, and trade businesses, actively extending to the entire pharmaceutical and health industry chain. In 2022, due to the centralized sales and receipts of cold medicine and antiviral drugs, and the related purchase payments have not yet been settled, the net cash flow generated by China's pharmaceutical operating activities reached 1.646 billion yuan, a strong year-on-year growth of 1008.92%.

Continued growth in Q1 performance

Focusing on Advantages and Precise Effort

In 2023, China Pharmaceutical will accelerate the cultivation of its medical device business, continuously improve its technological innovation system, strengthen variety construction, and consolidate effective support for scientific and technological foundation management, continuing to maintain a high-quality development trend.

The announcement stated that in the context of deepening the impact of policies such as centralized procurement, the company seized market opportunities and achieved a revenue of 12.531 billion yuan in the first quarter, a significant increase of 47.08% year-on-year. The net profit attributable to the parent company was 269 million yuan, a year-on-year increase of 9.27%; The net profit attributable to the parent company after deducting non income was 252 million yuan, a year-on-year increase of 16.81%.

At the recent performance briefing, the company stated that in the future, it will further focus on advantages and make precise efforts based on industry development trends and national policy guidance.

For example, pharmaceutical businesses will adhere to the "Dianqiang Netcom" policy and actively expand new retail businesses such as DTP pharmacies; Medical devices will accelerate the implementation of integrated business operations, achieve a "one network" of pharmaceutical devices, and deeply cultivate fields such as imaging diagnosis and treatment equipment, in vitro diagnosis, medical consumables, SPD systems, etc; The pharmaceutical industry will strengthen variety construction based on demand, improve research and development accuracy and product competitiveness; The traditional Chinese medicine industry will achieve breakthroughs in the production of high-quality and low-cost drugs.

Relying on the competitive advantage of the entire pharmaceutical and medical device industry chain, China Pharmaceutical will continue to enrich its business model, strengthen business collaboration, regional collaboration, and resource collaboration, continue to optimize international trade, strengthen pharmaceutical commerce, expand medical devices, and strengthen the pharmaceutical industry, and accelerate the construction of a world-class comprehensive service provider for pharmaceuticals and medical devices.