Tianda Pharma Announces 2022/23 Interim Results
Tianda Pharmaceuticals Limited (“Tianda Pharma” or “the Group”; stock code: 0455.HK) today announced its interim results for the six months ended 30 September 2022 (“the Period”). During the Period, the Group adopted proactive marketing strategy and improved its results notably. Its revenue increased by 5.6% to approximately HK$250 million. Gross profit rose by 10.2% to approximately HK$120 million and profit before taxation, depreciation and amortization turned around from loss of HK$6.9 million in the same period last year to profit of HK$2.3 million for the period.
Recorded strong sales of core products and continued to optimize Chinese medicine business layout
The Group has worked hard cultivating the cardiovascular, cerebrovascular and pediatric disease realms and owns unique generic product pipelines. Boasting notable efficacy and competitive price, Tuoping Valsartan capsules, the Group’s core product for treating cardio-cerebrovascular disease, has been ranked the No. 1 best-selling product in its category in Mainland China since the success in securing first place in the nation’s Centralized Drug Procurement. During the Period, sales of the product reached HK$92.3 million, representing a year-on-year growth of approximately 21%. Tuoen Ibuprofen oral suspension, a pediatric drug, was among the top three in terms of market share in the country due to effective marketing, achieving strong sales of HK$64.0 million for the Period, up approximately 70% year-on-year.
The Group has basically built for itself a complete traditional Chinese medicine (“TCM”) industrial chain, from trading of Chinese medicinal materials, TCM decoction pieces and formula granules to innovative Chinese medicine R&D and international trade. During the Period, it continued to increase operating product varieties, expand sales channels and strengthen procurement sources, including exporting TCM decoction pieces to Australia and planning for importing to China special variety of Chinese medicinal materials from overseas. Insisted on the inheritance and innovation of TCM, it brought in innovative Chinese medicine transformation projects and embarked on cooperation in developing innovative Chinese medicines.
During the Period, overall revenue of TDMalls increased by 81%. The first clinic to adopt the equity investment cooperation model, TDMall (Tsim Sha Tsui) has famous medical experts as shareholders who also participate in the management. Starting to make profit eight months after opening, TDMall (Tsim Sha Tsui) provides valuable experience and serving as a model for expanding the business across the nation and worldwide. The Group is pushing forward with opening a TDMall in Shenzhen, another important step in expanding its presence in the Guangdong-Hong Kong-Macao Bay Area. The Group also continued to invest in “intelligent” development of Chinese medicines. The Chinese medicine cloud technology-based platform “TDMall on Cloud” of the Group played an important role in the Group’s “Free Consultation and Medicine” charity campaign during the fifth wave of COVID-19 outbreaks in Hong Kong, offering comprehensive remote Chinese medicine services to the public.
Strengthened R&D across the board and capability to bring in business, actively expanded revenue sources
The Group has insisted on combining generic drug endeavors with innovation and, via its own R&D efforts and cooperation with external R&D institutions, continued to enrich its product pipelines. During the Period, the Group increased R&D investment, spending HK$12.0 million, up 260% year-on-year, set to allow it to come up with more new products that can become new and strong growth drivers for its medium and long-term development. The Group is currently pursuing 22 R&D projects, including class I innovative Chinese medicines, class III new Chinese medicines, class III chemical drug plus APIs, class IV chemical drugs and healthcare product series. During the Period, the Group actively introduced innovative Chinese medicine transformation projects in which the industry, academia, research and medical sectors come together to develop innovative Chinese medicines for treating chronic heart failure. Such initiatives have given the Group a rich and diversified product development portfolio that covers high-end generic drugs, classic Chinese medicines, modern Chinese medicines and healthcare products. The Group also actively introduced approved proprietary Chinese medicine products. Following the acquisition of the proprietary Chinese medicine product Xiaoer Qingre Zhike Granule last year, it acquired Jianerle Granule, a proprietary Chinese medicine for children during the Period, continuing to expand its pediatric product categories.
In addition, the Group launched contract development and manufacturing organization (“CDMO”) and contract manufacturing organization (“CMO”) businesses to expand its revenue sources and promote business development. As at the end of September 2022, it had seven contracts signed for R&D technology service mainly for liquid pharmaceutical preparations and completed production for two projects during the Period. The two business modes are expected to become growth drivers that can continuously generate revenue for the Group.
Stepped up efforts in three business segments, consolidated business foundation and achieved leapfrog development
To seize the opportunities in the continuously expanding pharmaceutical and healthcare market, the Group will keep growing its three business segments, namely Chinese medicines, medical and healthcare services and pharmaceuticals and medical technologies, in the future. It will also speed up bringing in products and product R&D, strengthen business expansion efforts, and investment and M&As, so as to achieve leapfrog development. For the Chinese medicine business, leveraging the country’s policies to vigorously help the Chinese medicine industry develop, the Group will grasp the policy dividend of TCM and continue to develop the whole industry chain, increasing the trading of Chinese medicinal materials focusing on varieties, while accelerating the development of TCM decoction pieces and formula granules, which have huge market potential. It will also actively invest in the R&D and introduction of innovative Chinese medicines, classic ancient prescriptions of Chinese medicines, finished dosages and proprietary Chinese medicines. For its medical and healthcare services business, the Group will strengthen operation of the TDMalls and speeding up expansion via building its own clinics, franchising and mergers and acquisitions, and as well using different equity investment and cooperation modes. While prioritizing the development in the Guangdong-Hong Kong-Macao Bay Area, the Group will push for nationwide and global reach. At the same time, the Group will continue to improve and perfect its “TDMall on Cloud” app to “enhance user experience”, for better online and offline integration, providing patients with convenient and intelligent high-quality Chinese medicine services. On the pharmaceuticals and medical technologies business front, the Group will strive to build up its core product brands such as Tuoping and Tuoen, focusing on developing cardio-cerebrovascular and pediatric products and consolidating relevant advantages. It will also expand its sales network to cover lower-tier markets so as to booster market share and actively expand CDMO and CMO business to boost revenue. In the future, it will apply 3D tactics (BD – business development, ID – investment and development, and R&D – research and development) in developing products with market potential, especially major product types, to provide impetus for long-term sustainable development.
About Tianda Pharmaceuticals Limited
Tianda Pharmaceuticals Limited (“Tianda Pharmaceuticals”, listed on the Hong Kong Stock Exchange, stock code: 0455.HK) implements the following development strategies: development of Traditional Chinese medicine (“TCM”) as its foundation, development of innovative drugs and medical technologies, as well as development of high-quality medical and healthcare services, striving to become a leading pharmaceutical enterprise that sets its footholds in China while seeking to expand its presence worldwide.
Topic: Press release summary