Chengyi : Nuggets Marine Medicine to Achieve Greater Investor Interests

With 50 years of development history, Zhejiang Chengyi  Pharmaceutical Co., Ltd.(hereinafter referred to as the "Chengyi pharmaceutical industry", "603811.SH") is showing a new development.

In April 13th, Chengyi pharmaceuticals announced that the company in July last year, 12~15 received from the U.S. Food and Drug Administration (hereinafter referred to as "FDA") a comprehensive cGMP (current GMP) on-site inspection, and received written notice of the FDA and the attached verification report in April 13th, certified by FDA.

The company said that the API will be approved by the US FDA and will have a positive impact on the development of the global Chengyi pharmaceutical market.

 

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It is understood that in the deepening of drug development at the same time, Chengyi pharmaceutical will be driven by technical innovation, innovation double, vigorously develop high-end small variety "green marine drugs" and "disease medication", improve the company's core competitiveness.

"To operate a high-tech pharmaceutical enterprises, the key to focus on, the eyes should look forward, but also down-to-earth." Chengyi pharmaceutical chairman Yan Yiyi said that in the next 5 years, the company will deepen the transformation from raw materials to finished products at the same time, continue to advance towards the development of marine medicine, biological medicine and traditional Chinese medicine in the direction of building health industry.

 

Technical research and development, double wheel drive
Wenzhou Chengyi pharmaceutical industry as the first to lead a listed enterprise, the Chengyi pharmaceutical industry has gone through 50 years of development history, the company formerly known as Copper Mt. pharmaceutical factory, was founded in October 1966. It has become a professional production of medicine injection, capsules, pharmaceutical raw materials and intermediates of the joint-stock modern integrated pharmaceutical enterprises, products exported to the United States, Canada, Europe and South Africa, Southeast Asia and other more than 20 countries and regions.

According to the prospectus, the successful listing of Chengyi pharmaceutical raised a total of nearly 336 million yuan, mainly to invest in preparation for building technological transformation projects, marketing network construction projects, R & D center construction project, the company will raise funds through the construction of investment projects, to further expand product market share, to further enhance the level of drug development and testing capabilities strengthened to enhance the marketing network layout in the country, lay a good foundation for the sustained and stable development."

In the "13th Five-Year" period, Chengyi pharmaceutical set the "13th Five-Year" growth target, target value, sales, the company in 2020 net profit in 2016 than the current situation (in 2016 the company's revenue was 321 million yuan, net profit of 68 million 170 thousand yuan) have significant growth.

"Enterprise development needs stamina, and it needs technical support."." Yan Yiyi said that the company's development should be forward-looking, strengthen scientific research strength, do high-end, high value-added products.

Pharmaceutical innovation and transformation and upgrading is becoming the key word for the development of the pharmaceutical industry, and further expanding the proportion of preparations will become an important direction of the company's transformation and development. It is understood that the pharmaceutical sincerity will increase the development of new drugs in the "13th Five-Year" period will invest at least 210 million yuan for the new drug development and technical innovation of production, R & D funds will reach annual sales of more than 4%, so that the company's business transformation based preparations.
 Data show that over the past ten years, the sincerity of pharmaceutical been constantly changing, gradually expand the current formulation preparation products, product sales revenue has accounted for more than 50% of sales, has been successfully by the API transition to the formulation.

To strengthen the cooperation with scientific research institutes and universities, in addition to Chinese and Shanghai Institute of Materia Medica Academy of cooperation, sincerity and Hangzhou Zhejiang Pharmaceutical Pharmaceutical Technology Co. Ltd., Beijing Minkang herbal medicine science and technology limited company, Nanjing top Ying Pharmaceutical Technology Co., Ltd. and Beijing Bo Jian Pharmaceutical Technology Co. Ltd. and other units signed agreement of technical cooperation, development of various new drugs and technology improvement.

The next three years, the company's new product development focus on marine medicine, biological medicine and traditional Chinese medicine, in tablets, granules, extension of the existing product development agents and other forms of freeze dry at the same time, the development of new products is more focused on the preparation of products, 42 products in the development of the new plan, there are 33 genera preparation of products, accounting for 78.57%.

It is understood that, in order to make the company more competitive in the industry, Chengyi pharmaceutical will also through mergers and acquisitions, equity participation and other forms of holding a plan, step by step, actively and steadily to enter the capital market, increase product line to improve the industrial chain.

Yan Yiyi said, the company will implement the production management and capital management development, accelerate the upgrading of products, raw materials to achieve the transition to the formulation, transformation of the leading products to marine medicine, biological medicine, Chinese medicine and new preparation, and the development of the health industry, the implementation of marketing change.

 

Enter the marine pharmaceutical industry
The blue sky and white clouds, green grass, clean the ground. Into the pharmaceutical factory district, it is difficult to imagine that this is a major pharmaceutical preparations and raw materials. In the eyes of Yan Yiyi, do companies need to follow the "do not harm themselves, do not harm the surrounding environmental principles do not harm future generations".

It is understood that the Chengyi pharmaceutical  industry is located in the marine resources rich Wenzhou Dongtou District, the development of marine pharmaceutical, natural raw materials advantages.
Adhering to the "saying" the idea of Chengyi pharmaceutical with regional advantages to build a number of excellent marine drugs, the main products of glucosamine hydrochloride (Zhunzi H20060748) with chitin hydrolysis of shells of crab and shrimp production, has become one of the API manufacturers domestic hydrochloride glucose according to the maximum. Statistics South of CFDA, Chengyi pharmaceutical glucosamine hydrochloride preparations national market share from 9.97% in 2011 jumped to 26.11% in 2015, ranking.

It is noteworthy that the development of marine pharmaceutical industry is also in line with the relevant departments of the state previously issued the "biological industry development plan" in the "strengthening of marine biological resources development and utilization" of the recommendations. Among them, it is pointed out that the development and application of marine bioactive substances should be accelerated, and new marine products such as industrial enzymes, medical functional materials, biological separation materials, green agricultural biological preparations and innovative drugs will be developed.

The national "13th Five-Year plan" also made it clear that optimizing the industry structure, promote the development of fishery, sea water desalination scale applications, support marine biomedicine, marine equipment manufacturing and other industries, accelerate the development of marine service industry.

 

Published by the relevant departments of the state "in 2016 China marine economic statistical bulletin" shows that in a good development environment, marine bio pharmaceutical industry continued rapid growth in 2016, the added value of 33 billion 600 million yuan, a year-on-year increase of 13.2%.

According to the construction of Zhejiang marine province goal, Yan Yiyi the development of marine drugs listed in the "13th Five-Year" plan, actively study the development and utilization of ocean resources in the local related drugs, constantly enrich the marine heavy products.

Yan Yiyi said the company will continue to work towards research and development of marine medicine, biological medicine and traditional Chinese medicine development, construction of health industry, I hope through research cooperation with various research institutions the opportunity to dig into a "sea of gold".

Combined with the current macroeconomic situation of the pharmaceutical industry, the development of industry and business, pharmaceutical sincerity will continue to maintain steady operation, according to the sincerity of pharmaceutical April 27th announcement in the first quarter of 2017 report, operating income was 82 million 310 thousand yuan, compared to the same period last year the growth rate of 16.48%; net profit attributable to shareholders of the parent company was 14 million 180 thousand yuan. Compared to the same period last year the growth rate of 23.75%; net profit after deduction of non attributable to shareholders of the parent company was 13 million 20 thousand yuan, compared to the same period last year the growth rate was 14.59%.

"Before the listing, the Chengyi pharmaceutical industry has cash dividend every year; after the listing, we will not because of the listing of dividends."." In the eyes of Yan Yiyi, the dividend is responsible for the majority of investors, for investors is responsible for the enterprise, responsible for the staff responsible, responsible for the government, "the company will continue to improve the internal management mechanism, by increasing investment and strengthening the capability of technological innovation, accelerate the innovation of industrialization and technological achievements, and constantly improve the core competitiveness of enterprises, achieve the investor a greater benefit."



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