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Tonghua Dongbao reports YoY increase of 14.63% in annual net profit 2020
Date：2021-04-15
Author：東寶
Views：175
On the evening of April 15, Tonghua Dongbao Pharmaceutical Co., Ltd. (stock code: 600867, hereinafter referred to as "Tonghua Dongbao" or the "Company") released its 2020 annual report, disclosing that the Company recorded operating revenue of RMB 2.892 billion, up 4.14% YoY, a net profit attributable to owners of the parent company of RMB 930 million, up 14.63% YoY, and a net profit excluding non-recurring gains and losses attributable to shareholders of the listed company of RMB 955 million, up 18.00% YoY.
Steady growth of main business and greatly enhanced profitability
The Company’s main business contributed an increasing share of the revenue, demonstrating greater profitability. The overall revenue from insulin products hit RMB 2.4 billion in 2020, up 8.19% YoY. The sales revenue of recombinant human insulin injections hit RMB 2.207 billion, up 5.00% YoY, with a market share of 34%. In the meantime, insulin glargine generated a sales revenue of RMB 131 million, and is approved for use in more than 2,900 secondary and above hospitals in 25 provinces and cities across China. Thanks to the decrease in procurement costs, the Company achieved a consolidated gross profit margin of 79.66%, up 5.64 percentage points YoY, and a net profit margin of 32.15%, up 2.94 percentage points YoY.
A strong foray into the field of novel drugs, accelerating new drug R&D
With increased profitability, Tonghua Dongbao will invest more in R&D. In 2020, the Company’s total R&D investment hit RMB 243 million, up 22.17% YoY. The Company boasts the most comprehensive portfolio of products for diabetes treatment in the industry, with mainstream second/third/ultra-rapid-acting insulin, GLP-1, oral hypoglycemic drugs, and Class 1 new drugs on offer or under development. The notice of manufacturing site inspection for Insulin Aspart was received in December 2020, and now the product is undergoing inspections of the registered manufacturing site and GMP compliance. The pre-NDA meeting application for Insulin Aspart 30 and 50 Injections was submitted in early 2021. The phase III clinical trial of liraglutide is nearing an end, and a database lock is expected to be put in place in mid-2021. In March 2021, the Company and WuXi AppTec signed a strategic cooperation memorandum and the technology transfer and co-development contract for the R&D of three Class 1 new drugs for the treatment of diabetes, signaling its foray into the realm of novel drugs.
Innovation-driven development steering the Company to an industry leader
In 2020, Tonghua Dongbao pushed radical reforms and invested heavily in corporate governance and product R&D, which have produced impressive results and further increased the Company’s value. This year, a group of young and professional executives became board members and introduced a series of reforms. At the same time, Dehong Capital became a strategic investor of the Company, who would help the Company further optimize its shareholding and governance structure, modern management system, and incentive mechanism, and work with the Company in targeted operation, investment and M&A, and global growth. In addition, the Company has launched an equity incentive plan, which combines the interests of shareholders, the interests of the Company, and the personal interests of the core team to facilitate the Company’s long-term success.
Guided by the philosophy of "Establishing a Global Brand Through Consistent Innovation", Tonghua Dongbao will continue to focus on cutting-edge therapies for diabetes and other endocrine diseases and promote innovation to achieve its vision of being an explorer and leader of novel drugs R&D in the field of endocrinology as soon as possible.
