Summary of first-half results:
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Revenue of HK$3,333 million, down 2.1% (in RMB terms, growth of 4.7%);
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Net profit of HK$639 million, up 12%;
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The Board of Directors has decided to pay an interim dividend of HK$0.07/share.
HONG KONG SAR – Media OutReach – August 29, 2023 – SSY Group Limited (“SSY” or the “Company”; Stock Code: 2005.HK) and its subsidiaries (together, the “Group”) presents the interim results of the Company for the six months ended June 30, 2023 (“First Half 2023”) . or “first half of the year”).
During the first half of 2023, the Group achieved sales of approximately 2,962 million Renminbi (“RMB”), an increase of approximately 4.7% compared to the corresponding period of the year last. However, due to the renminbi’s depreciation against the Hong Kong dollar by approximately 6.5% compared to the same period last year, in terms of Hong Kong dollars, the Group’s sales amounted to approximately HK$3,333 million in the first half of this year, representing a decrease. 2.1% compared to the corresponding period last year. The Group achieved a net profit of approximately HK$639 million, an increase of approximately 12% compared to the corresponding period last year. Faced with the difficult challenges of the national and international pharmaceutical markets, the Group was determined to be ambitious, seize opportunities and overcome difficulties. Thanks to a series of operational measures such as the acceleration of research, development and innovation, the integration of market resources and the active exploration of potentials, the Group has continued to maintain a favorable development trend. stable and healthy.
The board of directors has decided to pay an interim dividend of HK$0.07 per share for the year 2023, up 16.7% compared to the corresponding period last year. The total amount payable is approximately HK$208 million.
During the first half of the year, the cumulative sales volume of intravenous infusion solutions reached approximately 936 million vials (sachets), with sales revenue of HK$2,069 million, an increase of approximately 24 .1% and 12.8% respectively compared to the corresponding period last year. Among them, the production and sales of therapeutic infusion solutions grew steadily with revenue of HK$566 million, an increase of 24.7% over the corresponding period of the year. last year. Exports of preparations to foreign countries have increased against the trend, the export revenue of infusion solutions amounted to about 80.08 million HK dollars, which represents a growth of about 25% compared to compared to the corresponding period last year. Ampoule products recorded continued growth in sales volume. In the first half, the sales volume reached approximately 131 million, representing a growth of approximately 92% compared to the corresponding period last year. The Oral Preparations business segment accelerated its expansion and development. In the first half, sales reached HK$244 million, representing growth of approximately 68% over the corresponding period last year. Due to the impacts of slower market demand and lower bulk pharmaceutical market prices in the first half, sales revenue was approximately HK$454 million, which which represents a decrease of approximately 42% compared to the corresponding period last year. External sales of medical equipment in Hong Kong dollars are roughly at the same level as the corresponding period last year.
The Group has taken the lead in innovation to integrate its own advantages and coordinated progress to advance the research and development of generic drugs, bulk pharmaceuticals, innovative drugs, medical devices as well as kinds of products subject to consistency assessment. with the aim of establishing a new path and a new advantage in the development of generic drugs and high-end complex preparations. In the first half of the year, the Group was at the forefront of all pharmaceutical companies in China in terms of the number of preparations submitted for approval and passing consistency assessments, and obtained a total of 34 production approvals for various types. , including 8 for bulk pharmaceuticals and 26 for preparations. In the first half of the year, the number of the Group’s products that passed the consistency assessment or considered to have passed the consistency assessment reached 51 product types with 67 specifications, which made it possible to seize the opportunities for improving the competitiveness of products in the market. Positive progress has been made in the search for innovative medicines. The phase I clinical trial of the innovative type I chemical antitumor drug project NP-01 has made positive progress. Communication with the CDE prior to the application of the phase I clinical trial concerning the innovative anti-liver fibrosis drug ADN-9 has been established. Preclinical research on the anti-pulmonary hypertension drug SYN-045 has been fully launched.
The Group accelerated the construction of infrastructure projects. The 3-in-1 plastic bulb production lines project has been completed and is in the pilot production and verification phase. Guangxiang Pharmaceutical’s bulk pharmaceutical production lines project was completed and entered the equipment commissioning stage in mid-July. The project of PP vertical soft bag injection production lines is expected to be completed and put into pilot production at the end of September.
Looking ahead to the second half of 2023, in the face of new trends and the environment of the pharmaceutical industry, the Group will continue to promote the deep integration of the innovation chain, the industrial chain and the value chain, to maintain a relatively robust and rapid development momentum and to strive for better and more solid business results. During the second half of the year, the Group will conduct in-depth and systematic research and analysis of national and local purchasing policies to ensure precise market access, and capitalize on the influence and driving effects of the purchasing organization program of the group. The Group will focus on increasing the sales volume of the main types of therapeutic infusion products in order to ensure the sustainable growth of production and sales of infusion products. The Group will increase efforts to increase sales of new bulb products, explore the market potential of mainstream products, and develop types that can generate sales of RMB 100 million. In bulk pharmaceuticals, while stabilizing its customer base abroad, the Group will accelerate domestic sales of products with distinctive advantages. At the same time, the Group will continue to improve its product mix. In terms of developing specialty generic drugs, high-end complex preparations and innovative drugs, the Group will rely on the cooperation mechanism and talent recruitment mechanism with universities and scientific research institutes to organize the types of products in its pipeline and plan, and will explore more high-quality research projects. In the second half of the year, the Group will coordinate to advance new construction and ongoing construction projects, and accelerate the advancement of Jiangsu Best New Medical Material on the A-share market of the Beijing Stock Exchange. On the other hand, the Group will actively identify opportunities for merger and acquisition as well as investment in the pharmaceutical industry, which will strengthen the Group’s market and product position, and improve the return on investment.
Mr. Qu Jiguang, Chairman and CEO of SSY said: “The Group will take the necessary initiatives for its development, maintain the resilience and momentum of innovation and development, and facilitate the high-quality development of the Group with concrete actions and solid results. We sincerely believe that with our advantages of scale, quality, management and brand image built in the industry over the years, and through our continuous innovation drive, we will bring satisfactory returns to our investors with stronger development results.
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The issuer is solely responsible for the content of this announcement.
