Mar 24, 2024 | Business
China BlueChemical Ltd. (“China BlueChem” or the “Company,” stock code: 3983), China’s largest chemical fertilizer central enterprise in both production capacity and production volume, has announced its audited annual results for the year ended 31 December 2023. In 2023, the Company realized a revenue of RMB12.990 billion. Net profit attributable to owners of the Company grew 45.0% year-on-yearly to RMB 2.382 billion, which was the best performance since the establishment of the Company. The Board has recommended the payment of a final dividend of RMB0.207 per share (tax inclusive) for 2023, hitting record high and representing a payout ratio of 40%.
Mr. HOU Xiaofeng, CEO and President of China BlueChem said, “The Company clearly defines its development position and has been promoting the transformation and upgrade of the traditional industrial structure, while, at the same time, it has achieved safe production and pursues to increase its sales efficiency. As a result, China BlueChem’s brand value has been enhancing continuously and reached RMB5.404 billion in 2023, up by RMB1.433 billion as compared with the previous year, which was a record-high increment. To consistently implement the Company’s green and low-carbon development strategy and improve ESG management level, the Company sold 67% of equity interest in a subsidiary, Tianye Chemical (now renamed as New Material Company), which is under urea and methanol segments, which resulted in a one-time revenue of RMB 850 million, thus further optimizing the Company’s asset structure and also significantly driving the growth of the Company’s profits.”
In 2023, the Company’s methanol plant was awarded the honorary title of “Energy Efficiency Leader” by the China Petroleum and Chemical Industry Federation for the twelfth consecutive year, and the synthetic ammonia plant was awarded the honorary title of “Water Efficiency Leader” by the China Nitrogen Fertiliser Industry Association for the fourth consecutive year.
In respect of production management, the Company adhered to the principle of safe production and continued to strengthen management and control over the production operation. There were no production-related accidents throughout the year, and for the second consecutive year, there were no environmental pollution incidents, hence the best performance since the founding of the Company. Hainan Phase I methanol plant once again recorded a long-term operation period of over 500 days, and the continuous operation days of the CNOOC Huahe fertilizer plant and the production volume of urea both achieved record highs. Benefiting from such developments, the Company’s annual production of urea increased significantly year on year. In 2023, the Company produced 2,006 thousand tonnes of urea, 814 thousand tonnes of phosphate and compound fertilizers, 1,462 thousand tonnes of methanol and 165 thousand tonnes of acrylonitrile and related products.
With regard to sales management, the Company continued to strengthen market promotions and promoted refined pricing management. It enhanced its influence across channels and increased sales in the high-price range, to achieve greater sales at higher prices and increase both sales volume and profit. The Company also intensified brand building efforts, focusing on bolstering its position as a “Plant Nutrition Solution Provider”. Furthermore, the Company sought to increase e-commerce direct sales. As a consequence, the e-commerce direct sales to farmers reached 84.6 thousand tonnes, representing a year-on-year increase of 110%. In 2023, the Company sold 1,992 thousand tonnes of urea, 1,444 thousand tonnes of methanol, 473 thousand tonnes of phosphate fertilizers, 353 thousand tonnes of compound fertilizers and 159 thousand tonnes of acrylonitrile and relating products. During the year, the Company exported a total of 153 thousand tonnes of urea and 130 thousand tonnes of DAP, and the export volume of fertilizers increased by 80% year on year. Export of methanol amounted to 25 thousand tonnes.
In 2024, both the supply and demand for urea are anticipated to increase, which can be attributed to its direct application in agricultural products and through the procurement of raw materials for compound fertilizer factories. Due to seasonality, supply and demand are expected to enter different phases based on low and peak seasons. As for phosphate fertilizer, the new overseas production capacity is anticipated to fulfill part of the export demand. The overall balance between supply and demand will be relatively loose in the market, though the cost of raw materials is expected to decline, hence the price of phosphate fertilizer may return to a reasonable level with fluctuations based on the season. With gradual stability entering the global supply chain and adjustments being made in the raw materials market, the cost of raw materials for compound fertilizer will potentially sustain relative balance. Overall, the compound fertilizer market is facing certain fluctuations, and is expected to observe a neutral trend. Regarding methanol, its import will continue to remain at a high level. It is worth noting that the demand from downstream industries for olefins will be stable, whereas traditional downstream industries will show a growth trend, and the alternative application of energy will maintain growth. Furthermore, the overall price center of the methanol market is expected to improve over last year. In respect of acrylonitrile, the growth rate of domestic acrylonitrile production capacity will slow down as the release of existing production capacity has been the main driver of supply. Since the capacity expansion in downstream industries such as ABS and carbon fiber will be relatively concentrated, the overall supply and demand structure will be adjusted and revamped, and the sale in the markets will further improve.
Mr. HOU Xiaofeng, CEO and President of China BlueChem said, “In 2024, the Company will continue to place safety and environmental protection as its top priority, hence it will further strengthen the refined production management, and promote the full implementation of the new Heath, Safety, and Environment (HSE) management system. The Company will also seek product and service upgrades, strengthen its position as a “Plant Nutrition Solution Provider”, precisely implement cost reduction measures, and continuously optimize the value of its products in terms of cost per tonne. Furthermore, the Company will intensify research on the resource utilization of carbon-rich natural gas and CO2 to champion carbon reduction. While promoting industrial innovation with scientific and technological innovation, the Company will master more fertilizer and chemical-related core technologies, and conduct both self-initiated and cooperative research and development. Moreover, it will focus comprehensively on digital and intelligent transformation, intensify research efforts on strategic emerging industries, and optimize planning and deployment, in order to facilitate the Company’s high-quality development.”
About China BlueChemical Ltd.
China BlueChemical Ltd. (“China BlueChem”) is a listed company that specialises in the development, production and sales of chemical fertilisers and synthetic chemical products. It is the largest Central enterprise in the field of chemical fertilisers in terms of both production capacity and production volume. The Company is a subsidiary of China National Offshore Oil Corporation which mainly engages in the exploration, development, production and sales of crude oil and natural gas. On 29 September 2006, China BlueChem was listed on the main board of The Stock Exchange of Hong Kong Limited with the stock code 3983. Currently, its production facilities are located in Hainan, Hubei and Heilongjiang, China, with a total designed annual production capacity of 1.84 million tonnes of urea, 1 million tonnes of phosphate and compound fertilisers (mono-ammonium phosphate, di-ammonium phosphate and compound fertiliser), 1.4 million tonnes of methanol, 200,000 tonnes of acrylonitrile and 70,000 tonnes MMA. It has a deep water port with a designed annual throughout capacity of 18.28 million tonnes in Dongfang city, Hainan province. Boasting continued growth of its brand value, the Company’s brand value reached RMB5.404 billion in 2023, up by RMB1.433 billion as compared with 2022. In early 2023, the Company was granted “The Outstanding Listed Enterprise Awards 2022 – Excellent Results Performance” by Capital Media in recognition of its impressive and growing financial results.
For more information about the Company, please visit its website:
www.chinabluechem.com.cn.
Topic: Press release summary
Mar 19, 2024 | Business
China Lilang Limited (“China Lilang” or the “Company”, together with its subsidiaries, the “Group”; stock code: 1234) today announced its 2023 annual results.
Mr. Wang Dong Xing, Chairman and Non-Executive Director of China Lilang, said:
“In 2023, China welcomed its first year of recovery after three years of pandemic. Despite the continued complex and ever-changing global situation, the economy in Mainland demonstrated resilience. Under the guidance of the encourage consumption policy by the Central Government, the retail market has gradually recovered and achieved a moderate growth in the second half of the year. During the year, the Group pushed forward the Lilang brand’s strategic upgrade, achieving both revenue and profit growth, and laying a solid foundation for future sustainable development.”
For the year ended 31 December 2023, the Group’s revenue increased by 14.8% year-on-year to RMB3.544 billion. The increase in sales was mainly due to the resumption of normal operations of all stores together with the resumption of social activities. In addition, the turnover of smart casual business increased significantly by 35.2% due to the opening of more new stores and the increase in single-store sales and average unit price. The distributors of the core collection had to digest the inventory from 2022, which suppressed the order growth in 2023. Sales of the core collection increased by 10.7%.
Gross profit margin was 48.2%, an increase of 2.2 percentage points year-on-year. This was attributable to the significant growth in sales of the self-operated smart casual business during the year, and an increase in the proportion of high-end products in total sales as a result of the strategy of maintaining high quality and value. Net profit climbed by 18.4% year-on-year to RMB530 million. Net profit margin increased by 0.5 percentage points to 15.0%. Basic earnings per share were RMB44.30 cents, representing a year-on-year increase of 18.4%.
During the year, the Group maintained a healthy financial position and sufficient cash flow. The Board of Directors has recommended the payment of a final dividend of HK13 cents per share and a special final dividend of HK5 cents per share. Together with the interim dividend already paid, total dividend for the year amounted to HK36 cents per share, representing an increase of 12.5% from last year, and maintaining a stable dividend payout ratio.
The Group continued to promote its new retail business by vigorously developing interactive and entertaining live-streaming sales models to enhance consumer’s online shopping experience and stimulate their desire to buy. Leveraging the complementary advantages of direct-to-retail online stores and WeChat Mall, the e-commerce business achieved a growth rate of 17.6% for the year, outperforming the overall growth rate.
The Group has been actively reforming its sales channels. After three years of hard work, the Group has established four sales channels: the distribution and consignment models of the core collection, the direct-to-retail stores of the smart casual collection and the direct-to-retail stores under the e-commerce sales model. This has allowed the Group to closely match its products and services with the purchasing patterns of Chinese menswear consumers and drive sales growth. During the year, each of the sales channel has recorded profit and sales per store increased significantly, further reflecting the effectiveness of the sales channel reform. As of the end of 2023, the Group had a total of 2,695 stores, including 302 smart casual collection stores and a total of 2,393 core collection stores, representing a net year-on-year increase of 51 stores.
With respect to inventory management, 22 more outlet stores were opened and sold seasonal products that were not sold in other stores. The sold-out rate of core collection and smart casual stores has increased. The new logistics center became operational, together with its intelligent logistics system has accelerated the delivery speed of goods to stores, while improving inventory control and achieving cost reduction. As at the end of 2023, the Group’s average inventory turnover days decreased by 25 days from the end of 2022 to 170 days, reflecting a more efficient level of inventory management.
In terms of brand promotion, the Group sells menswear products comprising two collections – the core collection and the smart casual collection. It continues to provide consumers with high-quality simple menswear and new wearing experiences for fashionable items, enhancing the brand’s appeal through the concept of “Simplified Design Excellent Quality”. During the year, the Group launched a re-designed logo. Based on the original logo, the visual proportion and graphic design have been optimized to enhance the brand’s vitality and sense of fashion. In addition, store spaces use immersive technology installations that create a chic environment suitable for young people.
Looking at 2024, faced with an ever-changing international environment and domestic economic challenges, the Central Government has designated 2024 as the “Year of Consumption Promotion” to boost market confidence and stimulate the vitality of the retail sector. China Lilang has responded positively. It plans to further upgrade the brand image of “Lilang Minimalist Menswear” through innovative product development and differentiated brand strategies, coupled with a sales channel that is more geared towards young consumers, to cater for and lead in satisfying the needs of consumers, as well as further enhance its sales performance.
The Group plans to achieve a net increase of 100-200 stores, particularly in upscale shopping malls and outlet malls in provincial capitals and prefecture-level cities. It will also vigorously develop a new retail business, offering personalized shopping experiences via live-streaming on Tik Tok, in order to have close contact with consumers. The Group aims for the new retail business to achieve year-on-year sales growth of 20% and overall sales growth of 15% in 2024. In addition, the Group plans to complete the seventh-generation renovation project for 400 stores to enhance the brand image and shopping experience of consumers.
In terms of product positioning, the Group will continue its strategy of providing products that represent “high quality and value” and will continuously introduce innovative and differentiated new products to meet consumers’ desire for personalized clothing. With the successful inventory clearance and further reduction of off-season inventory, the Group will intensify the launch of new products to increase the proportion of higher-priced new items, thereby improving the average selling price and the overall profitability of the products.
To enrich the product portfolio of China Lilang and strategically upgrade the existing brands, the Group has implemented a new “multi-brand and internationalization” development strategy and is actively seeking collaborations with other brands to provide consumers with diversified choices and to meet their different clothing preferences. With a well-established sales network in the Mainland China, and an increasingly interconnected global market, the Group plans to propel the brand to the global stage, expanding into the overseas markets. The Group believes that the internationalization of its brand will not only bring about a new style for the Group and enrich the product design, but also broaden its sources of revenue and welcome more market opportunities.
Mr. Wang Dong Xing concluded:
“In the long run, China Lilang will steadfastly uphold its mission to deliver stylish menswear with superior quality and value to its customers; enhancing the competitiveness of our brand with unique product designs and marketing promotions; and further consolidating the Group’s leading position in the menswear industry, thereby enabling sustainable and long-term growth of the business for our supportive shareholders, colleagues and customers.”
About China Lilang
China Lilang is one of the leading PRC menswear enterprises. As an integrated fashion enterprise, the Group designs, sources and manufactures high-quality business and casual apparel for men and sells under the LILANZ brand across an extensive distribution network, covering 31 provinces, autonomous regions and municipalities in the PRC.
Topic: Press release summary
Feb 7, 2024 | International
People’s Bank of China to issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority
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The following is issued on behalf of the Hong Kong Monetary Authority:
The People’s Bank of China (PBOC) will issue Renminbi Bills through the Central Moneymarkets Unit of the Hong Kong Monetary Authority (HKMA). Please find attached the tender notice and the tender information memorandum of the Renminbi Bills to be issued by the PBOC. Please also find attached the tender-related information provided by the Issuing and Lodging Agent through the HKMA.
Feb 4, 2024 | Business
China Medical System Holdings Limited (“CMS” or the “Group”) is pleased to announce that on 2 February 2024, the Group through its wholly-owned subsidiary entered into a Novation Agreement (the “Novation Agreement”) with Vifor Fresenius Medical Care Renal Pharma Ltd. (“VFMCRP”) and Winhealth Investment (HK) Limited (“Winhealth Investment”) for sucroferric oxyhydroxide chewable tablets Velphoro® (the “Product”).
Winhealth Investment and VFMCRP entered into a License Agreement (the “License Agreement”) for the Product on 28 June 2023. In accordance with the License Agreement, Winhealth Investment gained an exclusive license to register，import, promote, distribute, use and sell the Product in Mainland China, Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region (the “Territory”). The License Agreement commenced on its effective date and continues to be valid until the fifteenth anniversary of the date of the Product’s first commercial sale in the Territory. Upon the expiration of the aforementioned term, the License Agreement may automatically be renewed for ten years as per certain conditions defined in the License Agreement. Thereafter, unless the parties reach a new agreement, the License Agreement will terminate upon expiration.
In accordance with the Novation Agreement, Winhealth Investment novated its above-mentioned rights and obligations for the Product to a wholly-owned subsidiary of CMS.
Velphoro® (Sucroferric Oxyhydroxide Chewable Tablets )
As of 2 February 2024, the Product is the first iron-based, non-calcium phosphate binder (PB) approved by National Medical Products Administration (NMPA) in China1, filling the gap of phosphorus-lowering treatment for Chinese paediatric patients aged 12 to 18 years old with CKD stages 4-5 or CKD on dialysis.
Velphoro® is a Class 5.1 imported innovative drug, which was approved through the priority review and approval procedure in China in February 2023 for the control of serum phosphorus (sP) levels in adults with chronic kidney disease (CKD) on hemodialysis (HD) or peritoneal dialysis (PD), and meanwhile, for the control of sP levels in paediatric patients 12 years of age and older with CKD stages 4-5 (defined as glomerular filtration rate <30mL/min/1.73 m²) or CKD on dialysis. The Product has been newly included in category B of China’s National Reimbursement Drug List for Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance (2023 Version) (the “National Reimbursement Drug List”). There is an issued patent that protects the formulation, usage, particle size and manufacturing methods of the Product in China.
Hyperphosphatemia is a common complication in CKD patients, especially in patients with end-stage renal disease on dialysis, characterized by a high morbidity and a low compliance rate. It is an independent risk factor for nephropathy progression, secondary hyperparathyroidism, cardiovascular events and all-cause mortality in CKD patients2. Controlling sP levels can significantly improve the outcomes of CKD patients.
Since non-calcium PB has no risk of vascular calcification, domestic and foreign guidelines consistently recommend non-calcium PB as first-line treatment for reducing sP levels, and limit the use of calcium-based PB. Velphoro® is a new generation of iron-based, non-calcium PB, reducing sP levels of patients and increasing the sP compliance rate. Velphoro® has been launched in 51 countries/territories including the US, EU and Japan, maintaining a leading position in the global PB market.
It is demonstrated in multiple global clinical studies and real-world research data (as published in academic journals including International Urology and Nephrology, and Clinical Nephrology) and the Chinese instruction of the Product that compared with other PBs, patients maintained on Velphoro® used about 50% fewer PB pills/day3, and the proportion of patients achieving target sP increased by 95%4. Velphoro® has characteristics of good safety5 and patient compliance6 without risk of calcium and heavy metal accumulation. In addition, the Product holds the advantages of unaffected absorption of oral liposoluble vitamin D7, maintaining stable iron parameters8, improving the nutritional status in patients9, reducing hospitalization rates, and alleviating patients’ medical financial burdens10. Velphoro® is expected to further improve the dialysis patients’ quality of life and become a new option of phosphorus-lowering treatment for CKD dialysis patients in China.
CMS continues to invest in and develop differentiated innovative products, providing a continuous source of momentum for the long-term and stable development of the Group. Velphoro® is a newly approved innovative drug in China in 2023 and has been successfully included in category B of the National Reimbursement Drug List. It will rapidly expand the Group’s marketed innovative product portfolio and kidney disease product portfolio, and will synergize with the Group’s marketed products XinHuoSu (recombinant human brain natriuretic peptide for injection), Plendil (felodipine sustained-release tablets) and the innovative drug Desidustat tablets (intended to treat anemia in CKD patients) which is in the clinical development stage for registration in terms of expert network and market resources. It is expected to have a positive impact on the Group’s financial results.
More information about Hyperphosphatemia
The total number of CKD patients reaches 132 million in China, of which nearly 1 million existing patients receive dialysis treatments11, and continues to increase at a rate of approximately 10% per year. The prevalence of hyperphosphatemia reaches 72.1%12 in CKD patients on dialysis, and nearly 50% of dialysis patients need to receive oral PB to control sP levels13. According to the survey in Chinese patients with chronic kidney disease-mineral and bone disorder, combined with real-world findings, on the basis of existing phosphate-lowering treatments, the sP compliance rate of CKD dialysis patients in China is only 24.3%14. The low sP compliance rate is currently the clinical pain point of hyperphosphatemia, and there is an urgent need for more potent drugs with lower pill burden and better adherence to satisfy the clinical treatment demand of hyperphosphatemia.
Reference
1. Drug registration information can be found on the NMPA official website, as follows: https://www.nmpa.gov.cn/datasearch/search-result.html
Or can be found in the public medical insurance materials, as follows
http://www.nhsa.gov.cn/attach/Ypsn2023/YPSW202300180/YPSW202300180-W1(ppt).pdf
2. XQ Yu, et al. Chin J Nephrol, 2018. 34(11): 867-871
3. The Instructions for Sucrose HydroxyIron Oxide Chewable Tablets
4. Coyne DW, et al. Clin Nephrol. 2017 Aug;88(8):59-67.
5. Xie, D., Ye, N. & Li, M., Int Urol Nephrol 50, 905-909 (2018)
6. Floege J, et al. Nephrol Dial Transplant. 2015 Jun;30(6):1037-46
7. Sprague SM,et al.Am J Nephrol. 2016;44(2)104-12
8. Vervloet MG et al. Clin Kidney J 2021;14:1770-9
9. Kalantar-Zadeh K, et al. BMC Nephrol . 2019 0ct 29;20(1):396
10. Kidney Med. 2020 May-Jun; 2(3): 307-316
11. The data of China’s CNRDS reported by academician, Meixiang Chen., on 2023 Annual Conference of Chinese Nephrologist Association.
12. YF Chen, et al. Chin J Blood Purif. 2022; 21(05): 305-308.
13. Kidney International Supplements, 2020, 10(2): e97–185
14. Hong, D. et al. Sci Rep 12, 16694 (2022).
1. This news/article is intended to share cutting-edge medical information. It is only for reference by medical and health professionals for academic purposes and is not for advertising purposes; it does not recommend any drugs, medical devices and/or indications.
2. The information involved in this news/article is for reference only. Please follow the advice or guidance of your doctor or other medical and health professionals. Any treatment-related decisions made by healthcare professionals should be based on the patient’s specific circumstances and in accordance with the drug package insert.
Media Contact
Brand: China Medical System Holdings Ltd.
Contact: CMS Investor Relations
Website: https://web.cms.net.cn/en/home/
Jan 21, 2024 | International
China Manned Space Exhibition receives its 150 000th visitor (with photos)
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The China Manned Space Exhibition, which is being staged at the Hong Kong Science Museum (HKScM) and the Hong Kong Museum of History (HKMH), has received overwhelming response from the local public and tourists since its opening on December 1 last year. The exhibition welcomed its 150 000th visitor today (January 21).
To thank the public for their support to this exhibition which showcases the history and remarkable achievements of China’s manned space development, the Director of Leisure and Cultural Services, Mr Vincent Liu; the Museum Director of the HKScM, Mr Lawrence Lee; and the Museum Director of the HKMH, Mr Ng Chi-wo, warmly greeted the 150 000th visitor and presented an exhibition poster and a gift pack of the Leisure and Cultural Services Department (LCSD) to the visitor today. The 150 000th visitor is from the Liu and Wang families from Chongqing. The two families also visited the exhibition at the National Museum of China in Beijing in July last year. During their visit to Hong Kong this time, they specially arranged to visit the HKScM and the HKMH. Mr Liu expressed his excitement to once again see the return capsule of the Shenzhou manned spacecraft in person, witnessing the swift progress of the nation’s aerospace development. The two ten-year-old girls particularly enjoyed the interactive exhibits in the exhibition.
The exhibition is partitioned into two zones, situated at the HKScM and the HKMH respectively. Within these zones, approximately 30 groups of exhibits are showcased, offering visitors an opportunity to delve deeper into the history and accomplishments of China’s manned space program. The 1/F Main Lobby of the HKMH houses an exhibition area dedicated to the chronicles of China’s manned space development, presenting visitors with a captivating glimpse into the remarkable three-decade journey toward this ambitious goal. On the 2/F Exhibition Hall of the HKScM, visitors can explore noteworthy engineering feats of China’s manned space program and its exhilarating prospects for future development. Highlighted exhibits include the Shenzhou spacecraft return capsule, an intravehicular space suit, a model of the space station, various carrier rocket models such as Long March-2F, Long March-7, Long March-5B, and models of the new-generation manned spacecraft and lunar lander.
The exhibition is jointly presented by the Government of the Hong Kong Special Administrative Region and the China Manned Space Agency, and organised by the LCSD. It will run until February 18 at the HKScM and the HKMH with free admission. For details of the exhibition, please visit hk.science.museum/en/web/scm/exhibition/cmse.html, or call 2732 3232 for enquiries.
