CCM: High-performing Zhejiang Medicine vigorously extends into healthcare product business 09-22-2016

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

Product

Revenue, million USD

YoY change, %

Gross profit margin, %

YoY change, percentage point

Synthetic vitamin E series

109.93

+50.33

32.34

+23.88

Vitamin A series

23.01

+89.84

47.00

+33.72

Natrual vitamin E series

8.25

-23.74

9.05

-27.34

Vancomycin HCL series

22.06

+45.97

58.11

+9.49

Teicoplanin series

7.31

-7.69

64.05

+1.71

Source: Zhejiang Medicine Co., Ltd.


 

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

 



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: vitamin  pharmaceutical

 

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