Baiyunshan reports a 53% growth in net income attributable to shareholders net of non-recurring gain

2021-08-26 17:51:29 GPHL GPHL

On August 18th, GPHL’s listed arm Guangzhou Baiyunshan Pharmaceutical Co., Ltd. (“Baiyunshan”, SH600332, HK0874) reported outstanding financial results for the first half of 2021, indicating the high quality of the company’s earnings.

The company’s operating revenue was 36.129 billion RMB, up 18.57% year on year (YoY). Its net income attributable to the company’s shareholders reached 2.502 billion RMB, up 41.84% YoY. Net income attributable to the company’s shareholders net of non-recurring gains and losses was 2.496 billion RMB, a 53.35% increase YoY. It recorded cash flows from operating activities of 2.184 billion RMB, with a year-on-year net increase of 4.589 billion RMB, up 190.84% YoY.

Guangzhou Pharmaceuticals Co., Ltd., the division that Baiyunshan has spun off, has received the China Securities Regulatory Commission’s approval on its issuance of overseas listed foreign invested shares. Its operating revenue and net income reported growth of 18.41% and 53.03% respectively for the first half of 2021.

On August 2nd, GPHL was made into the Fortune Global 500 list in 2021.

Baiyunshan’s Great Southern TCM segment has increased sales of major products by investing heavily in flagship products, strengthening the development and maintenance of distribution channels, reinforcing end consumer sales promotion and marketing, exploring the potential of second-tier products, and otherwise.

In the reporting period, the group delivered significant growth of sales in a variety of brands, such as Sildenafil Citrate Tablets (Baiyunshan Jinge), Zishen Yutai Pills, Amoxicillin, Hua Tuo Restorative Pills, and Zhuang Yao Jian Shen Pills.


Selected major products of GPHL

The Great Health segment further consolidated Wanglaoji ’s position in the herbal tea market. It launched personalized products, such as surname customized cans and a blind box collection, to tag young consumers and increase the sales of the herbal tea brand. Three new products, Ciningji, Yerou Coconut Juice, and Dazhai Walnut Beverage, were launched to enrich its beverage portfolio, providing new momentum for growth. The figures show that Baiyunshan’s Great Health segment generated 6.604 billion RMB in first-half sales, up 46.71% YoY.


Wanglaoji surname customized can

In the Great Medical Care segment, Guangzhou Baiyunshan Hospital enhanced its comprehensive strength by enrolling experts specialized in gynaecology and obstetrics, general surgery, internal medicine, rehabilitation, etc. from the 157th Medical Group. Its subsidiary companies Baiyunshan Yihu and Baiyunshan Jianhu developed new products, such as masks with culture and creative features as well as self-sanitising and deodorising masks, to drive the growth of the new business.

In the first half of 2021, Baiyunshan increased its investment in scientific research, spending 386 million RMB in R&D, up 43.54% YoY. GPHL entered into a cooperation agreement on new drug development, platform construction, and professional cultivation with Xu Tao, an academic from the Chinese Academy of Sciences and the director of the Bioland Laboratory. GPHL also appointed Wang Songling, academic from the Chinese Academy of Engineering (CAE) and vice-president of the Capital University of Medical Sciences, as the Group’s chief scientist. They signed a cooperation agreement on new drug development and clinical trials.

The Group entered into a strategic cooperation agreement with the Research Institute of Tsinghua, Pearl River Delta to jointly build a new experiment platform that helps achieve breakthroughs in key and core technologies and commercialisation of scientific and technological achievements. GPHL also worked with China-based manufacturing companies, education institutes, research institutes, healthcare institutes, associations (academies), and application organizations to establish the Alliance for Commercialisation of the International Biomedical and Health Innovations.


GPHL's 12 time-honoured brands

With regard to scientific and technological innovation, more than 30 product development projects will be carried out during the 14th Five-year Plan period, such as discovering new uses for existing products, generic drug development, consistency evaluation, R&D of special topical medications and special medical foods as well as sleep-aid and wake-up products, and crude drug management improvement. In addition, GPHL will establish some scientific and research platforms, such as an anti-cancer whole-industry-chain platform and the Guangdong Plant-Based Beverages Engineering Technology Research Centre.

With regard to industrial zones, GPHL plans to establish its R&D headquarters at the Guangzhou International Bio Island and build the industrial park for time-honoured brands in Zhongluotan of Baiyun District, the medical chemistry industrial park in Huangpu District, and the Wanglaoji great health industrial park and great health industrial headquarters in Nansha, Guangzhou.

Relying on the resources of Tonghe Land and Tonghe Property, the Group will establish a modern and international cluster for healthcare and rehabilitation industries. The Lingnan TCM Museum will be built upon the Shennong Caotang Museum and is expected to become a AAAAA tourist attraction and TCM culture landmark that combines the delights of museum, plantation, theme park, hotel, health care and leisure facilities, and shopping mall.


Masterplan for the Lingnan TCM Museum

In addition, GPHL will integrate rural revitalization efforts with plantations, production facilities, and commercial logistics of medicinal herbs in North China, Central China, East China, Northwest China, Southwest China, and other areas. While the international headquarters in Macao are taking GPHL global, the Group expands its size to match those of the Fortune Global 500 peers and develops the industry system for growth.

Authors: Monica & Michelle

Editors: Olivia & Jerry

NULL