HONG KONG, April 28, 2014 /PRNewswire/ -- Shanghai Pharmaceuticals Holding Co. Ltd., ("Shanghai Pharmaceuticals" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 601607.SH; 2607.HK), the integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets, today announced its first quarterly result. The Group recorded operating revenue of RMB21.274 billion, an 8.60% growth as compared to the same period last year. The net profit attributable to the shareholders of parent company was RMB586 million. The net profit attributable to the shareholders of parent company after deduction of non-recurring items was RMB585 million, a YOY 0.31% growth which aligned with the target of the first quarter of 2014. The slowdown in growth was mainly due to the decreased investment revenue from joint venture.
For the pharmaceutical manufacturing business, the Company recorded operating revenue of RMB2.817 billion, representing a YOY increase of 0.29% during the reporting period. The Company had met its target and achieved a gross profit margin of 46.33%. 64 key products had recorded operating revenue of RMB1.615 billion with a YOY decrease of 2.65%, due to unfavorable factors such as the impact of channel adjustment, the price reduction of raw pharmaceuticals and plant transformation, contributing 57.32% of the industrial sales, with an average gross profit margin of 61.12%. Annual sales of 25 large categories, which counted four more than last year, are estimated to reach over RMB100 million each. During which, the average growth rate of the top five products with fastest sales growth rate in the first quarter was 41.15%. Besides, the Company will continue to promote its strategy of focusing on key products, adjusting product structure, further promoting its marketing reform and implementing the customized strategy for each key product, in order to gradually improve the overall strength of the pharmaceutical manufacturing industry.
In the pharmaceutical service business sector, Shanghai Pharmaceuticals' distribution business recorded operating revenues of RMB18.503 billion, representing a YOY increase of 8.96%, and the gross profit margin slightly increase to 6.30%, indicating a further enhancement in the proportion of hospital direct sales. The Pharmaceutical retail business recorded operating revenue of RMB804 million, representing a YOY increase of 19.63%, and the gross profit margin was 20.41%. While strengthening the advantages inherent in the major regions of the territory, the Company will continue to develop its operations in weaker areas, and actively participate in the public hospital reformation projects. In the future, the Company will secure profitability in its distribution business through developing new businesses and strictly controlling its SG&A Expenses.
