Continuously deepening and refining market and brand promotion, Cheng Yi Pharmaceutical's revenue in the first half of the year increased by 10.89% year-on-year

On the evening of August 20th, Cheng Yi Pharmaceutical disclosed its 2024 semi annual report. During the reporting period, the company achieved a total operating revenue of 356 million yuan, a year-on-year increase of 10.89%; The net profit attributable to the parent company was 76.4655 million yuan. During the reporting period, Cheng Yi Pharmaceutical's basic earnings per share were 0.23 yuan, with a weighted average return on equity of 6.27%.

The announcement stated that the changes in the company's operating revenue were mainly due to varying degrees of growth in sales of joint and vitamin products.

From a product perspective, in the first half of the year, the company's main business generated a revenue of 285 million yuan from formulations, a year-on-year increase of 15.60%, accounting for 80.15% of the operating revenue; The revenue from raw materials was 60 million yuan, a year-on-year increase of 0.78%, accounting for 16.86% of the operating revenue.

Cheng Yi Pharmaceutical's main product is Glucosamine Hydrochloride Capsules (Vilgu), and the company is a major raw material manufacturer of Glucosamine Hydrochloride in China. The company also has dual approvals for the production of hydrochloride glucosamine raw materials and formulations. At present, the company's three specifications of glucosamine hydrochloride capsules have all passed the national generic drug consistency evaluation. In August 2020, they participated in the third batch of national centralized procurement and won the bid in the first place, achieving a market share of over 41% in 9 provinces and cities across the country. In October 2023, the national procurement period will expire and the company will switch to inter provincial alliance centralized procurement. As of the disclosure date of the report, the company's hydrochloride glucosamine capsules have won the bid for centralized procurement in 22 provincial-level regions across the country.

In terms of sales, during the reporting period, the company continued to deeply cultivate the target markets of various product lines, explore the potential of product lines, continuously expand the breadth and depth of the marketing network, and select regional distributors and agents at all levels. The company continues to promote its advantageous products in the market and enterprise brand, providing specialized academic promotion services to fully realize multi-level cooperation in product academic, clinical treatment, and business models. At the same time, the company strengthens the management of distributors and agents in various regions, enhances the tracking and service of the flow of terminal medical institutions and OTC, increases market risk control, and achieves sustainable growth in the company's sales.

In terms of production, during the reporting period, the company organized a special audit of raw material suppliers, strengthened on-site management of material suppliers, and ensured product quality from the source; Continuously carry out GMP training, comprehensively implement quality risk management, and continuously strengthen GMP management through supplier audits, deviation change management, intermediate monitoring of production processes, equipment and facility optimization, and other means; According to the company's marketing needs, arrange production operations in each workshop reasonably, and complete production tasks safely, environmentally friendly, and with high quality.

In terms of research and development, during the reporting period, the company adhered to the principle of prioritizing advantageous and profitable products, and systematically promoted consistency evaluation work with emphasis and planning. There are 5 varieties for consistency evaluation of oral solid preparations; Seven varieties of small volume injections have been the first to undergo consistency evaluation, among which the key varieties, levocarnitine injection, sodium phosphatidylcholine injection, and amikacin sulfate injection, have been successfully applied for acceptance; There are 14 new products under development, among which Panamivir Injection and Dobutamine Hydrochloride API have been successfully declared and accepted; There are three approved raw materials for quality improvement, among which acetylcysteine and vitamin K1 have been successfully registered.