Northeast Pharmaceutical suffered a serious loss in 2015, mainly due to the downturn in
VC price and the increasing fixed cost from factory relocation, etc.
Source: Baidu
On
22 March, 2016, Northeast Pharmaceutical Group Co., Ltd. (Northeast
Pharmaceutical) released its 2015 financial report, showing that it suffered a
serious loss last year.
-
Revenue:
USD586,439,096.28 (RMB3,834,432,031) , down by 11.51% YoY
-
Net
loss: USD58,783,786.69 (RMB384,357,789.29), a huge decline from the net
profit of USD13,317,277.09 (RMB87,075,016.25) in 2014
Northeast Pharmaceutical attributed the loss to the increasing fixed cost from
factory relocation, the continuous decrease in the price of vitamin C (VC), and
the increasing cost of labor, etc.
In 2015, the price of VC, one of the major products of Northeast
Pharmaceutical, was in downturn. Besides VC, the prices of VC derivatives of
the company also dropped YoY, leading to a reduction in net profit. The report
showed that the gross profit margin from sales of APIs dropped by 15 percentage
points.
In Feb. 2016, the company revealed that the sales price of VC was still very
low. It seems that, Northeast Pharmaceutical, a giant player in the domestic VC
industry, still suffered huge operation pressure.
The company's 2015 cash flow generated from operating activities was USD15.25
million (RMB99.70 million), a deep gap between net profit. This was mainly
attributed to the company's huge expenses of USD68,570,023.71 (RMB448,345,100)
on the following three aspects:
-
Impairment
of assets: USD12,609,849.35 (RMB82,449,500)
-
Depreciation
of fixed assets and amortization of intangible assets: USD32,580,071.88
(RMB213,024,800)
-
Financial
expenses: USD23,380,102.47 (RMB152,870,800)
Northeast Pharmaceutical is a pharmaceutical enterprise mainly engaged in
production and sales of chemical APIs and technical, wholesale and retail of
pharmaceutical products, production and sales of biologicals. It mainly
produces 10 series of products, such as antibiotics, vitamins, heart and
cerebral vessels drugs, digestives, narcotic, birth control drugs, and
biological diagnostic reagent.
Northeast
Pharmaceutical's performance in Q1-Q4, million USD, 2015
|
/
|
Q1
|
Q2
|
Q3
|
Q4
|
|
Revenue
|
160.97
|
162.76
|
133.28
|
129.42
|
|
Net profit
|
-4.74
|
-8.44
|
-20.81
|
-24.80
|
Source:
Northeast Pharmaceutical Group Co., Ltd.
Performance of
Northeast Pharmaceutical by products, 2015
|
/
|
Revenue,
million USD
|
YoY
change
|
Gross
profit margin
|
YoY
change
|
|
APIs sales
|
145.55
|
-7.21%
|
24.37%
|
-15.34%
|
|
Formulations sales
|
211.39
|
-23.22%
|
44.36%
|
-1.10%
|
Source:
Northeast Pharmaceutical Group Co., Ltd.
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Tag: Pharmaceutical