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


Revenue, million USD

YoY change, %

Gross profit margin, %

YoY change, percentage point

Synthetic vitamin E series





Vitamin A series





Natrual vitamin E series





Vancomycin HCL series





Teicoplanin series





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 in H1. Meanwhile, products are also available through many well-known online drug-selling platforms, like, and

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.


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Tag: vitamin  pharmaceutical


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