Revenue Up 33.4% to RMB6,208 Million
Underlying Profit* Climbs 22.4% to RMB976 Million

Sino BIopharmaceutical

Sino Biopharmaceutical Limited (“Sino Biopharmaceutical” or the “Company”, together with its subsidiaries, the “Group”) (HKEX:1177), a leading and innovation-driven pharmaceutical conglomerate in the PRC, has announced its unaudited first quarterly results for the three months ended 31 March 2019 (“the review period”).

Results Highlights
– Self-developed new oncology medicine Anlotinib has enjoyed strong demand after its launch. As its sales surged to a new high, total revenue and profit grew significantly compared with the corresponding period last year.
– Production approval has been secured for Lenalidomide Capsules and Linezolid and Glucose Injections (2 specifications).
– Cardio-cerebral medicine Olmesartan Medoxomil Tablet and respiratory medicine Fudosteine tablets have passed Consistency Evaluation.
– A total of 12 new invention patent approvals have been obtained, and 96 applications for invention patents have been filed.
– According to a “Report on Competitiveness of Jiangsu Talent (2018)” jointly published by Jiangsu Academy of Talent Development and the Jiangsu Talent Association, Group member company CT Tianqing ranked 5th among companies in Jiangsu province in terms of staff competitiveness.

Results
For the three months ended 31 March 2019, the Group recorded revenue of approximately RMB6,208 million, representing an increase of approximately 33.4% over the same period last year. During the period, profit attributable to the owners of the parent was approximately RMB857 million, approximately 11.1% higher than that of the same period last year. Underlying profit attributable to owners of the parent amounted to approximately RMB976 million, surging by approximately 22.4% as compared with the same period last year. Based on underlying profit attributable to the owners of the parent, the earnings per share were approximately RMB7.75 cents, 16.4% higher than that of the same period last year. The Group has maintained a strong financial position with cash and bank balances reaching approximately RMB6,190 million at the period end (as at 31 December 2018: approximately RMB6,676 million).

The Board of Directors declared a quarterly dividend of HK2 cents per share (2018 first quarter: HK2 cents).

Business Highlights
During the review period, some of the Company’s key products have been included in the catalogue of centralized drug procurement in “4+7” cities, and sales of these products grew strongly after price reductions. With the sensational performance of its heavyweight oncology medicine, the Company continued to strengthen the cooperation with academic institutions for several oncology products and conduct comprehensive in-depth clinical research. In addition to the sales of Anlotinib reaching new heights, other oncology-related products including Qianping, Genike, Yinishu, Yigu and Saiweijian also recorded satisfactory results. As the Company continued to penetrate different channels of the markets and enhance its services, sales of its digestive product Aisuping, respiratory product Tianqingsule, and cardio-cerebral products Yilunping and Tuotuo maintained their rapid growth. These factors have contributed to the total revenue and profit of the Company rising far above the level in the corresponding period last year.

As for R&D, the Company has obtained 3 approvals for drug registration during the review period: Lenalidomide Capsules and Linezolid and Glucose Injection (2 specifications). 2 medicines have passed Consistency Evaluation: Olmesartan Medoxomil Tablet and Fudosteine tablets, and 2 more have obtained clinical approvals. Applications have been filed for clinical trials for 4 Category 1 chemical medicines while 6 applications have been made for Consistency Evaluation. In addition, the Company has received 19 authorized patent notices, 12 of which are for invention patents. At the same time, 101 new patent applications have been filed, including 96 invention patents.

During the review period, the sales performance of the Group’s major medicine types are outlined below:

Hepatitis medicines
– The sales of hepatitis medicines amounted to approximately RMB1,742 million, representing approximately 28.1% of the Group’s revenue.
Ganlixin injections and capsules sales amounted to approximately RMB22.04 million.
Tianqingganping enteric capsules sales amounted to approximately RMB123 million, an increase of approximately 18.0% against the same period last year.
Tianqingganmei injections recorded sales of approximately RMB436 million.
Mingzheng capsule sales amounted to approximately RMB51.59 million.
Runzhong (Entecavir) dispersible tablet sales amounted to approximately RMB895 million.
Sales of Tianding tablets amounted to approximately RMB121 million, an increase of approximately 0.6% against the same period last year.
Sales of Ganze (Entecavir) capsules amounted to approximately RMB35.25 million, an increase of approximately 3.9% against the same period last year.
Sales of Qingzhong tablets amounted to approximately RMB42.45 million, a sharp increase of approximately 209.2% against the same period last year.

Cardio-cerebral medicines
– The sales of cardio-cerebral medicines amounted to approximately RMB782 million, representing approximately 12.6% of the Group’s revenue.
Tianqingning injections recorded sales of approximately RMB33.63 million.
Sales of Yilunping tablets amounted to approximately RMB233 million, a year-on-year increase of approximately 10.3%.
Sales of Tuotuo calcium tablets amounted to approximately RMB187 million, a year-on-year increase of approximately 7.5%.
Sales of Kaishi injections amounted to approximately RMB172 million.
Sales of Beraprost sodium tablets amounted to approximately RMB112 million, an increase of approximately 12.8% as compared with the same period last year.

Oncology medicines
– The sales of oncology medicines amounted to approximately RMB1,231 million, representing approximately 19.8% of the Group’s revenue.
Sales of Zhiruo injections amounted to approximately RMB30.89 million.
Sales of Saiweijian injections amounted to approximately RMB155 million during the review period, an increase of approximately 48.6% as compared with the same period last year.
Sales of Tianqingyitai injections amounted to approximately RMB55.14 million.
Sales of Qingweike injections amounted to approximately RMB56.04 million, an increase of 8.1% as compared with the same period last year.
Sales of Shoufu tablets amounted to approximately RMB52.46 million, an increase of 16.5% as compared with the same period last year.
Sales of Genike capsules amounted to approximately RMB64.81 million, an increase of approximately 13.0% as compared with the same period last year.
Sales of Yinishu tablets amounted to approximately RMB59.06 million, a significant increase of approximately 61.0% as compared with the same period last year.

Analgesic medicines
– The sales of analgesic medicines amounted to approximately RMB477 million, representing approximately 7.7% of the Group’s revenue.
Sales of Kaifen injections amounted to approximately RMB316 million.
Sales of Flurbiprofen Cataplasm amounted to approximately RMB161 million, approximately 5.8% higher than that of the same period last year.

Orthopedic medicines
– The sales of orthopedic medicines amounted to approximately RMB422 million, representing approximately 6.8% of the Group’s revenue.
Sales of Gaisanchun capsules amounted to approximately RMB259 million, rising by approximately 5.9% as compared with the same period last year.
Sales of Jiuli tablets amounted to approximately RMB78.17 million, an increase of approximately 29.6% against the same period last year.
Sales of Yigu injections amounted to approximately RMB69.83 million, a remarkable increase of approximately 79.7% against the same period last year.

Digestive system medicines
– The sales of digestive system medicines amounted to approximately RMB355 million, representing approximately 5.7% of the Group’s revenue.
Sales of Getai tablets amounted to approximately RMB62.05 million, an increase of approximately 8.2% as compared with the same period last year.
Sales of Aisuping injection amounted to approximately RMB230 million, a significant increase of approximately 32.0% as compared with the same period last year.

Respiratory system medicines
– The sales of respiratory medicines amounted to approximately RMB298 million, representing approximately 4.8% of the Group’s revenue.
Sales of Tianqingsule inhalation powder amounted to approximately RMB178 million, an increase of approximately 15.5% as compared with the same period last year.
Sales of Chia Tai Suke tablets amounted to approximately RMB65.61 million, an increase of approximately 3.4% as compared with the same period last year.
Sales of Zhongchang tablets amounted to approximately RMB40.62 million, a significant increase of approximately 108.0% as compared with the same period last year.

Anti-infectious medicines
– The sales of anti-infectious medicines amounted to approximately RMB293 million, representing approximately 4.7% of the Group’s revenue.
Sales of Tiance injections amounted to approximately RMB178 million.
Sales of Tianjie injections amounted to approximately RMB83.55 million, an increase of approximately 19.2% against the same period last year.

Parenteral nutritious medicines
– The sales of parenteral medicines amounted to approximately RMB156 million, representing approximately 2.5% of the Group’s revenue.
Sales of Xinhaineng injections amounted to approximately RMB113 million, an increase of approximately 7.2% against the same period last year.
Sales of Fenghaineng fructose injections amounted to approximately RMB39.92 million.

Diabetic medicines
– The sales of diabetic medicines amounted to approximately RMB41.83 million, representing approximately 0.7% of the Group’s revenue.
Sales of Taibai sustained release tablets amounted to approximately RMB37.32 million, an increase of approximately 32.9% as compared with the same period last year.

R&D
The Group has continued to focus its R&D efforts on new cardio-cerebral, hepatitis, oncology, analgesic and respiratory system medicines. During the first quarter, the Group was granted 2 clinical approvals, 3 production approvals, and 2 approvals for Consistency Evaluation, and made 4 clinical applications, 6 applications for Consistency Evaluation and 8 production applications after the completion of bioequivalency. Cumulatively, a total of 501 pharmaceutical products had obtained clinical approval, or were under clinical trial or applying for production approval. Out of these, 54 were for cardio-cerebral medicines, 40 for hepatitis medicines, 208 for oncology medicines, 25 for respiratory system medicines, 26 for diabetic medicines and 148 for other medicines.

The Group also emphasizes the protection of intellectual property rights. It encourages its enterprises to submit patent applications as a means to enhance the Group’s core competitiveness. During the first quarter, the Group has received 19 authorized patent notices (12 invention patents, 3 utility model patents and 4 apparel design patents) and has filed 101 new patent applications (96 invention patents and 5 apparel design patents). Cumulatively, the Group has obtained 695 invention patent approvals, 23 utility model patents and 79 apparel design patents.

Prospects
The gradual implementation of the centralized drug procurement program in “4+7” cities and its associated effects are bringing a greater impact on the revenue and profit of the pharmaceutical industry. The National Healthcare Security Administration plans to start making adjustments to the National Drug Reimbursement List in the second half of the year, focusing more on the clinical efficacy and financial impact of medicines and placing particular emphasis on medicines for treating critical illnesses such as cancer and chronic diseases, pediatric medicines and drugs for emergency use. These adjustments represent a clear direction of national policies to support quality products with high value. The rollout of the abovementioned measures is set to change the product landscape of the pharmaceutical industry and at the same time accelerate differentiation of pharmaceutical enterprises. This will subsequently create greater room for development of enterprises like Sino Pharmaceutical boasting strong R&D, production and quality control capabilities.

About Sino Biopharmaceutical Limited (HKEX:1177)
Sino Biopharmaceutical Limited is a leading innovation-driven pharmaceutical conglomerate in the PRC. Its business encompasses a fully-integrated chain which spans from R&D to the manufacture and sales of pharmaceutical products. The Group’s products have gained a competitive foothold across various therapeutic categories with promising potential, covering a vast array of biopharmaceutical and chemical medicines for treating liver diseases, tumors, cardio-cerebral diseases, analgesia, respiratory system diseases, digestive system and orthopedic diseases.

Sino Biopharmaceutical is a constituent stock of the following indices: MSCI Global Standard Indices – MSCI China Index, Hang Seng Index, Hang Seng Index – Commerce & Industry, Hang Seng Composite Index, Hang Seng Composite Industry Index – Consumer Goods, Hang Seng Composite LargeCap Index, Hang Seng Composite LargeCap & MidCap Index, Hang Seng China (Hong Kong-listed) 100 Index and Hang Seng Stock Connect Hong Kong Index. Sino Biopharmaceutical was ranked as one of “Asia’s Fab 50 Companies” by Forbes Asia for three consecutive years in 2016, 2017 and 2018.

Notes:
* Refers to profit attributable to owners of the parent, excluding the impact of the amortization expenses of new identifiable assets arising from the acquisition of 24% interests in Beijing Tide, as well as the unrealized fair value gains and losses on equity investments and financial assets
** Based on underlying profit

Source: ACN Newswire

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