-- Operating Revenue Surges 17.6%
-- Change of Board of Directors On Schedule
HONG KONG, April 29, 2013 /PRNewswire/ -- Shanghai Pharmaceuticals Holding Co. Ltd., ("Shanghai Pharmaceuticals" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 601607.SH; 02607.HK), today announced its first quarterly results for 2013 along with a list of candidates for the new Board of Directors.
Sustained and steady growth results
According to the report, Shanghai Pharmaceuticals continued to maintain steady growth in its overall results. During the reporting period, the Company realised operating revenues of RMB19.59 billion, a YOY increase of 17.6%. Net profit attributable to shareholders of the Company Came to RMB626 million, a YOY increase of 8.5%.
For the pharmaceutical manufacturing business, during the reporting period, the Company recorded operating revenue from industrial business before elimination on consolidation was RMB2.81 billion, representing a YOY increase of 11.1%, of which key products contributed for RMB1.66 billion, representing a YOY increase of 18.5%. This was due primarily to the Company's further focus on its products structure and the success achieved with reasonable adjustments to its marketing strategies and terminal marketing model.
During the reporting period, the Company's pharmaceutical distribution operating revenues before elimination on consolidation came to RMB16.98 billion, a YOY increase of 17.8%. While strengthening the advantages inherent in the main regions of the country, the Company will also continue to develop its operations in weaker areas as well. To this end, they will actively participate in Pilot Programs of pharmacy trusteeship with hospitals and make forward-looking plans during the process of reformation. In future, the Company will emphasize profitability in its distribution business through strategies like offering value-added services and strictly controlling its SG&A Expenses. Guosen Securities issued a research report pointing out that the Company has adequate potential varieties of pharmaceutical industry; and its pharmaceutical distribution business will also benefit while the market share of top players continues to expand.
Against a backdrop of continued favourable governmental policies aimed at developing the pharmaceutical industry, Shanghai Pharmaceuticals enjoys the superior advantages of operating an entire industrial chain that covers its pharmaceutical core business and enhanced financial strength from H share funds, which will continue to benefit from the growth in demand in the pharmaceutical and healthcare markets.
Change of Board of Directors on schedule
The change of the Board of Directors is currently being carried out as planned on schedule. According to the Circular, Zuo Min, Zhou Jie, Jiang Ming, Hu Fengxiang, Lou Dingbo, Wan Kam To, Chen Naiwei, Li Zhenfu and Tse Cho Che, were nominated as candidates for the fifth session of the Board of Directors; Zhang Zhenbei and Xin Keng were nominated as candidates for the fifth session of the Board of supervisors, both with a term of three years. The re-election results of the Board of Directors this year saw the retention of core members of the previous Board in order to ensure a smooth transition and to promote a continuation of the company's long-term strategies. The Board changeover also saw the addition of several professionals in business management as well as the pharmaceuticals industry, which is expected to inject new vitality into the development and revitalisation of Shanghai Pharmaceuticals.
The nomination of candidates is based on two important principles: "youth" and "professionalism". For the election of the fifth session of the Board Directors, the Board of supervisors will hold a vote during the shareholders' meeting to be held on June 5.
Practicing corporate social responsibility
As a leading listed company in China's pharmaceutical industry, Shanghai Pharmaceuticals actively takes effective measures to protect public health while caring for those affected by the recent the H7N9 avian flu outbreak and Ya'an Lushan 7.0 earthquake.
Zhongxi Sunve Pharmaceutical, subsidiary of Shanghai Pharmaceuticals, was the first company officially authorised by Roche to produce Oseltamivir (Tamiflu) in mainland China. Tamiflu is recommended by the National Health and Family Planning Commission to prevent and treat avian influenza. Immediately after the outbreak, Shanghai Pharmaceuticals checked its stocks in storage and the expiry date of its drugs and says it has adequate supply of Tamiflu to meet market needs.
On April 20, the same day as the Ya'an Lushan earthquake, the Company began relief donations. In response to the situation on-site at the disaster area, the Company delivered anti-infection agents, tablets to treat colds, disposable infusion sets, gauze, disinfectants, bandages and other equipment and supplies valued at nearly RMB5 million to the area. Knowing the Ya'an Lushan earthquake happened, the Company's Subsidiary Keyuan Xinhai Pharmaceutical actively contact Ya'an Municipal Health Bureau Emergency Office in order to know the situation of shortage of drugs at disaster area; prepared and delivered a value of RMB75 million emergency relief medicines to the affected areas overnight. Keyuan Xinhai Pharmaceutical also donated RMB25 million for the Health Bureau of Ya'an for preparation for the emergency medical supplies.
About Shanghai Pharmaceuticals Holding Co., Ltd.
Shanghai Pharmaceuticals is the only integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets. It was China's second-largest pharmaceutical distributor and third-largest pharmaceutical producer. The Group adopts an integrated vertical business model and provides solutions in pharmaceutical manufacturing, distribution, logistics storage and retail. The Group currently offers more than 800 pharmaceutical products as well as pharmaceutical distribution and supply chain solutions to more than 8,000 hospitals and medical institutions in China. The Group also operates approximately 1,700 self-operated and franchise stores nationwide.
Issued by Porda Havas International Finance Communications Group for and on behalf of Shanghai Pharmaceuticals Holding Co., Ltd.
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