July 15, 2025
Source: drugdu
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On July 13th, Chengyi Pharmaceutical (603811) released a performance forecast announcement for the first half of the year. In the first half of 2025, the company expects to achieve a net profit attributable to the parent company of 107 million to 119 million yuan, a year-on-year increase of 40% to 55%; It is expected to achieve a non recurring net profit of 106 million to 113 million yuan, a year-on-year increase of 47.4% to 57.4%. The main reasons for the expected increase in performance are stated in the announcement, on the one hand, the continuous growth of the company's joint drug sales, and on the other hand, the reduction of losses by the subsidiary in the previous year.
The joint drug glucosamine hydrochloride capsules (hereinafter referred to as "glucosamine") are the company's main products and one of the main driving forces for performance growth in the first half of the year. The company's glucosamine will expire in October 2023 due to national procurement. Subsequently, the company has actively communicated with institutions in various provinces and achieved the renewal of national procurement standards in 30 provinces nationwide by 2024. With the support of increased investment in sales, the company has continued to expand its market share in the glucosamine market. In 2024, the company's revenue from joint drugs increased by 23.41% year-on-year, reaching 502 million yuan. By the first quarter of 2025, continuing the growth trend, the revenue from joint drugs increased by 49.62% year-on-year, reaching 143 million yuan.
The sustained growth in sales not only comes from the national procurement standards and marketing investment, but also reflects the multiple advantages of Sincere Pharmaceutical in this product. At the performance briefing in June this year, the company pointed out that Chengxin Pharmaceutical is a major integrated manufacturer of raw material preparations for glucosamine in China, with four major advantages, including product positioning advantages focusing on bone and joint health for middle-aged and elderly people, market position advantages brought by dual approval of raw material preparation production, product price advantages ensuring cost and quality of self-produced raw materials, and location advantages brought by Dongtou District, Wenzhou City, which is rich in marine resources. It is reported that the company's glucosamine is prepared by hydrolysis of chitin, which is commonly extracted from crab shells and shrimp shells. Chengxin Pharmaceutical is located in Dongtou District, where there are many islands, which can fully utilize the economic value of the ocean.
It is worth mentioning that the company fully utilizes ocean resources to shape the competitiveness of related products, which is highly consistent with the policy's emphasis on the "ocean economy". In March 2025, the government work report first mentioned "deep-sea technology", and in early July, the sixth meeting of the Central Committee for Finance and Economics also emphasized the development of emerging industries such as marine biomedicine and biological products. As the first listed company in Zhejiang Province to deeply cultivate marine biopharmaceuticals, Chengyi Pharmaceutical's glucosamine products are a positive response to policy guidance.
Not only that, around marine biopharmaceuticals, Sincere Pharmaceutical has actively promoted the construction of a thousand ton super fish oil EPA production capacity project with the core of "two strong and one large project". It is reported that 97% high-purity EPA is the first lipid-lowering EPA drug approved by the US FDA, and the market supply is scarce. The company pointed out that the infrastructure of the large health industry park has been built, and the evaluation of high-purity EPA preparations is nearing completion. The approval of high-purity EPA raw materials is also being prepared intensively. After the production capacity is reached, the company will have an integrated supply chain of fish oil raw materials and preparations, from raw materials to health food to drugs, which is conducive to achieving the growth of the company's performance.
Also disclosed in sync with the performance forecast is the draft of the 2025 employee stock ownership plan. According to disclosure, the holders of this plan include company directors (excluding independent directors), senior management personnel, middle and senior management personnel, core technical (business) backbones, outstanding young talents of the company, and other personnel deemed necessary by the company's board of directors, totaling no more than 228 people. The total amount of funds raised does not exceed approximately 48.2864 million yuan, with a transfer price of 5.02 yuan per share, and the shareholding size does not exceed approximately 9.6188 million shares, accounting for approximately 2.94% of the current total share capital.
The draft sets the assessment period as three accounting years from 2025 to 2027, with 2024 as the base year, to assess operating income or non net profit. Among them, the target growth rates for revenue assessment in 2025, 2026, and 2027 are 30%, 55%, and 85%, respectively. The target growth rates for non recurring net profit assessment are 35%, 65%, and 100%, with unlocking ratios of 40%, 30%, and 30%, respectively. The company points out that the implementation of this employee stock ownership plan aims to establish and improve a mechanism for sharing the interests of employees and shareholders, enhance employee cohesion and competitiveness, fully mobilize the enthusiasm and creativity of the company's middle and senior management and employees, accelerate the high-quality development of the company, and ensure the achievement of the company's development strategy and business goals.
Source: Securities Times website
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