2013-03-20 08:07:56 -
Shandong Luoxin Pharmacy Stock Co., Ltd. ("Luoxin" or the "Company", stock code: 8058), a leading PRC pharmaceutical enterprise, today announced its audited annual results for the year ended 31 December 2012 (the "year under review").
During the year under review, the Company continuously devoted to enhancing the capabilities in research and development, increasing the production capacity and consolidating the sales network development, focusing on the speeding up of the adjustment of product structure and the production of compressed antibiotic products, expedition of market development of products for respiratory and digestive systems. The profit margins and competitiveness of our core operations improved in an ongoing manner. The Company's turnover increased by 36.97% year-on-year to approximately RMB2,228,257,000. Gross profit rose by 49.83% to
approximately RMB1,502,280,000, with gross profit margin increased by 5.79% points to 67.42%. The Company's profit attributable to shareholders surged by 3.12% to approximately RMB439,874,000. Weighted average earnings per share were RMB0.722, representing an increase of 3.14% over the corresponding period in 2011. The board of directors of the Company recommended the payment of a final dividend of RMB0.30 per share for the year ended 31 December 2012 (2011: RMB0.20 per share).
Mr. Liu Baoqi, Chairman of Luoxin, said, "As the government proactively deepened medical reforms, continued to toughen regulations and standards and intensify investments in the pharmaceutical industry, and improved public health services, the investment into the development of medical and healthcare sector has been increasing. In addition, driven by the aging population, the accelerating urbanisation as well as the steady growth of the global pharmaceutical market, the development of pharmaceutical industry in the PRC maintained the promising momentum. As a leading modern pharmaceutical enterprise in the PRC, Luoxin has always been centering its strategies on science and technology innovation, research and development ("R&D") acceleration, distribution enhancement and production optimization. Best endeavours were used to provide reliable, high-tech and high value-added pharmaceutical products. During the year under review, to fully leverage on the opportunities arising from the growth in the market, we satisfied market demands by investing additional resources in enhancing its production capabilities and technology application, and by accelerating the R&D of new products. Meanwhile, the Company has been keen on tapping into a broader market to increase its market share so as to boost its growth in both turnover and profits, thus building a solid foundation for sustainable future development of the Company.
As at 31 December 2012, the Company's cash and cash equivalents amounted to approximately RMB437,275,000.
During the year under review, the Company obtained the approval from the National Development and Reform Commission to establish a state-province joint engineering laboratory. Prior to the year under review, the Company had established or been awarded the "Industrial Model Enterprise in the National Integrated Platform for New Pharmaceutical R&D and Technology (Shandong)", the "National Post-Doctoral Research Workstation" and "Key High-Tech Enterprise under the State Torch Program". On such basis, the Company obtained approvals to establish "Shandong Key Lyophilized Powder Injection Pharmaceutical Laboratory", the "Shandong Key Lyophilized Powder Injection Pharmaceutical Engineering Laboratory", the position of "Taishan Scholar - Pharmaceutical expert consultant" and "Enterprise Academician Workstation of Shandong Province", which enabled the Company to build a stronger platform for recruiting talents and improving technology and production technique, further strengthening the R&D capabilities and overall competitiveness of the Company.
In the aspect of Sales and Marketing, the Company has built an extensive and seamless sales network throughout China and has established a sound marketing management system, which have created sales channels for business solicitation, sale of hospital terminal products, logistics distribution, sale of third terminal products and pharmaceutical raw materials.
In the new products and patents aspect, during the year under review, the Company applied for 48 invention patents in the PRC. As of 31 December 2012, the Company had 59 patents, in which 49 were invention patents in the PRC. On the other hand, the Company was granted 12 manufacturing approvals and 3 new drug certificates, adding the total to 282 and 46 respectively as of 31 December 2012.
In the construction of production facilities aspect, Shandong Yuxin Pharmacy Co., Ltd. was granted the Drug Manufacturing Certificate, and the construction of its infusion workshop and ancillary facilities was completed. The current lyophilized powder injection workshop and solid preparation workshop built in compliance with the new national Good Manufacturing Practices ("GMP") standards have passed the certification of the new GMP. Meanwhile, the construction of pharmaceutical raw materials project of Shandong Hengxin Pharmacy Co., Ltd. is on fast track, while the synthetic raw materials workshop of the first phase of the project is in operation. In addition, teamed up with the People's Hospital of Fei County and Linyi People's Hospital, the Company established the Second People's Hospital of Fei County. With the investment of RMB40 million injected under the relevant cooperation agreement, the construction of the hospital is making smooth progress.
Mr. Liu Baoqi, Chairman of Luoxin, concluded, "Looking ahead, the pharmaceutical industry will become one of the priorities of national policies and the industry outlook is optimistic. Being one of the supported key industries under the Twelfth Five-Year Plan, the pharmaceutical industry will enjoy more resources allocated by the Central Government to the pharmaceutical and medical equipment sectors, and a modern market system for the circulation of pharmaceutical products will be established during the period of the Twelfth Five-Year Plan so as to enhance industry concentration. The Company will continue to pursue the strategic direction of a "technology-driven enterprise with determination and efforts" under the favourable operating environment. By fully leveraging on the opportunities arising from the integration of the pharmaceutical industry, the Company will continue to expand its investment in research and development to enhance the standards in research and development as well as technologies level. This will enable the Company to invent and develop more products of higher technology, better quality and higher added value. The Company also aims at reducing production cost and expanding production scale so as to achieve economies of scale, low production costs and a differentiated competitive edge. Upon the completion and commencement of production of its new plants of Yuxin and Hengxin, the Company will be able to increase its production capacity to satisfy the ever growing market demand for pharmaceutical products. The new plants will also help the introduction of new dosage forms and expand the R&D scope of new drugs more effectively, thus facilitating the Company's comprehensive business growth. The Company will also accelerate the establishment of its sales team and proactively broaden its sales network so as to enhance the market share of its products, so as to make "Luoxin" an internationally renowned brand in the pharmaceutical industry, bringing satisfactory returns to our shareholders."
About Shandong Luoxin
Luoxin has been listed on the GEM of the Stock Exchange of Hong Kong Limited since 9 December 2005. The Company has been recognised as one of the "Top Ten Pharmaceutical Enterprises with Growth Potential" and named as one of the "Top 100 Pharmaceutical Companies in China" since 2006. It was also selected on the "List of Small and Medium-sized Enterprises in China with Most Potentials" by Forbes for four consecutive years. The Company is principally engaged in the development, manufacturing and sale of different types of prescription and OTC (over-the-counter) medicines in 4 major categories: (1) system-specific medicines, including digestive system medicines, cardiovascular system medicines and respiratory system medicines; (2) anti-viral medicines; (3) antibiotics, including Cephalosporines antibiotics, Quinolones antibiotics and Macrolides antibiotics; (4) other chemical medicines, including Antineoplastic medicines. The Company's production facilities are located in the High and New Technology Experimental Zone, Linyi, Shandong Province, the PRC, and have obtained all required production permits as well as the GMP certification. Its sales and marketing networks cover 27 provinces and 4 municipalities in the PRC.
Issued by Porda Havas International Finance Communications Group for and on behalf of Shandong Luoxin Pharmacy Stock Co., Ltd.
Source: Shandong Luoxin
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