On 29 Aug., 2016, Zhejiang Medicine Co., Ltd. (Zhejiang Medicine, stock code: 600216), a leading domestic vitamin producer, released its financial report for H1 2016:

• Revenue: USD395.68 million (RMB2.64 billion), up 23.16% YoY

• Net profit: USD28.77 million (RMB192.11 million), up 42.45% YoY

• Earnings per share: USD0.03 (RMB0.21), up 50% YoY

Source: Baidu

"The large rises were mainly ascribed to the increased prices of leading vitamins and sales of pharmaceuticals," disclosed the company.

- Vitamins

H1 2016 witnessed rebound in the domestic price of vitamin E (VE), surge in vitamin A (VA) price and fluctuations in prices of other nutritional additives. Thanks to the two leading products, Zhejiang Medicine generated USD170.59 million (RMB1.14 billion) from nutritional supplement business, up 35% YoY.

In particular, as the largest domestic VE manufacturer (≥20,000 t/a to date), Zhejiang Medicine recorded:

• Revenue from synthetic VE: USD109.93 million (RMB734.19 million)

• Revenue from natural VE: USD8.25 million (RMB55.08 million)

- Pharmaceuticals

Zhejiang Medicine's revenue from pharmaceuticals during this period reached USD84.61 million (RMB565.08 million), up 49.02% YoY, mainly thanks to:

• Stable growth in sales of key pharmaceutical preparations (Lailixin series, Laikexin, Jialixin and Laiyi), which was supported by strengthened academic-oriented marketing

• Increased sales volume of active pharmaceutical ingredients, like vancomycin HCL, benflumetol and artemether

Notably, the company's wholly-owned subsidiary, Changhai Biological Company, carried forward the Changhai Biological Industrial Park project as planned:

• VA project (1,000 t/a, 2.80 million IU/g crystal): VA intermediate production equipment and supporting facilities have been installed and adjusted; to be put into pilot production in Sept. 2016

• β-Carotene plant project: to be put into pilot production in Dec. 2016

• Oral solid preparation and softgel healthcare product project: plants have passed acceptance check

Zhejiang Medicine's financial performance, 2013-2016 (H1)

Source: Zhejiang Medicine Co., Ltd.

                                                Zhejiang Medicine's financial performance by product, H1 2016

Zhejiang Medicine is vigorously extending into healthcare product business. The company has to date developed an extensive sales network both online and offline:

• OTC (over the counter) chain drugstores: products, like Laiyi® lutein chewable tablet, Haoxinren® coenzyme Q10 and Laiyi® natural VE, started to be available in Shaanxi, Gansu and Jiangxi provinces in H1 2016 and has to date been sold in around 20,000 drugstores in 25 provinces / autonomous regions / municipalities

• E-commerce platforms: besides the Laiyi® and Haoxinren® Tmall e-flagship stores, a new store Vital was opened on JD.com in H1. Meanwhile, products are also available through many well-known online drug-selling platforms, like 7LK.com, 360kad.com and baiyangwang.com

Notably, Zhejiang Medicine newly launched Laiyi® probiotics in H1, a step to diversify its healthcare product mix.

This article comes from Vitamins China E-News 1609, CCM

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Tag: vitamin  pharmaceutical

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