SSY Group Limited announces 2019 interim results

August, 26/2019 - 07:17
SSY Group Limited announces 2019 interim results

Net profits up 23% to HK$548 million with interimdividend HK$0.05/share

Continuously kept leading position in theindustry

Dynamics of R&D and bulk pharmaceuticalsprojects emerged

Results summary:

  • Total revenue HK$2,326 million for first half year, representing anincrease of 11.1% year over year
  • Net profit HK$548 million, representing an increase of 23.1% yearover year
  • The Board resolved to pay an increased interim dividend of HK$0.05per share

HONG KONG,CHINA - Media OutReach - 26 August 2019 - 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 ended30 June 2019 ("first half of the year" or the "period").


During the first half of the year, the Groupachieved a revenue of HK$2,326 million, representing an increase of 11.1%compared to the corresponding period of last year, and the gross profit margin increased by 1 percentage point.The net profit was HK$548 million, representing an increase of 23.1% comparedto the corresponding period of last year. During thefirst half of the year, the Company an emphasis was on the reinforcement ofpenetration rate in major provincial markets. We completed market developmentfor over 100 new hospitals, focused on adjustments to product mix, improved thesales growth of therapeutic infusion solutions, and ensured that bothproduction and sales of the Company's products were vigorous. We continued to be the Companywith the fastest growth of production and sales volume in the intravenousinfusion solutions industry.


The Board ofdirectors resolved to pay an interim dividend of HK$0.05 per share for year 2019,which represented an increase compared to last year interim dividend of HK$0.04per share. The total amount of interim dividend this year to be paid is HK$152million.


During thefirst half of the year, sales volume of intravenous infusion solutions reached approximately780 million bottles/bags, representing an increase of approximately 8% year-on-year,of which the proportion of therapeutic infusion solutions increased to 21.5%,representing an increase of 1.7 percentage points year-on-year. Access to different markets by newly approvedproducts being gradually completed. Of those, the tendering/online tender ofMoxifloxacin Sodium Chloride Injection has been completed in 12 provinces andhas formed the sales in 16 provinces, achieving a sales of HK$40,170,000 duringthe first half of 2019. With progress of market access and development inhospitals in the second half of the year, there will be significant growth insales. The export sales to foreign countries kept growing steadily with agrowth of 13% in volume during the first half of the year year-on-year. Wecompleted the export registration procedures and obtained registrationcertificates for 20 product specifications in 6 countries, and increased 3 newcountries for export. Ampoule products had a fast growth. During the first halfof the year, the sales of ampoule products amounted to HK$151 million,representing a growth of 312% year-on-year. In respect of medical materials,Jiangsu Best obtained 4 sets of registration numbers for medical materials ofbutyl rubber stopper. As far as the policy for national medical reform wasconcerned, consistency evaluation for injection was conducted actively.


Technological innovation capabilities havebeen further enhanced, gradually forming a set of comprehensive, scientific andtransparent systems for technical innovation. In the first half of year 2019, reassessmentof National Centre for Enterprise Technology, Model Enterprises for NationalTechnology Innovation, National and Local Joint Laboratory and Workstation forPostdoctoral Scientific Research have been started. During the first half ofthe year, submissions for registration of 60 items were completed, of which 5items obtained consistency evaluation and 4 items related to raw and auxiliarypackage assessment. The Company has obtained 14 approvals for production ofgeneric drugs, of which Tirofiban Hydrochloride and Sodium Chloride Injection,a cardiovascular drug clinically used to treat acute coronary syndrome, wasviewed as a theraputical drug of great potential in promoting for clinical useand thus a key product for the Company's performance development. Approval forperitoneal dialysis solution series, combining with the Company's existinghemodialysis product portfolio will bring the Company a nice room for marketgrowth. Hydroxyethyl starch 130 sodium chloride injection will win a place inthe markets. Fluconazole tablet 50mg & 150mg passing consistencyevaluation, of which that of 150mg specification being the first type passingconsistency evaluation in the PRC.


In the aspect of development of projects, theCompany's newly-built high-value-added infusion production line for largevolume and specification, with GMP certification obtained in May and 20 millionbags/year as designed capacity, has already been in production and operation.The phase-one bulk pharmaceuticals project, which was invested and constructedin Bohai new district under Hebei Guangxiang Pharmaceutical Co., Ltd., has beencompleted and come into trial-run production. It was planned for an on-spotinspection for GMP certification in August 2019.

Looking aheadfor the second half of the year, the global economy will be more complicatedand dynamic. Facing numerous uncertain factors such as medical payment system, "4+7" centralised procurement and trade conflicts, the Group willkeep its composure, keep the progress of implementation of innovative drugs andconsistency evaluations, improve continuously the business and product mix. RegardingR&D of new products, the Company will adhere to the new productsdevelopment idea of "combininggeneric drugs and innovative drugs" with injection as the basis, reinforcing the Company's technological and productadvantages in the intravenous infusion solutions industry of China. We willcomprehensively promote the development of new products for therapeuticinjections and focus on various fields including treatment of chronic diseasesand circulatory systems, emergency anaesthesia therapy, antipyretic andanalgesic therapy, as well as the new anti-infective therapy. We expect toobtain approximately 6 production approvals for injection and oral formulationin the second half of this year, gradually create product series in high-endanti-infective, respiratory field and in the field of kidney disease anddialysis. For bulk pharmaceuticals project, it is planned to complete anon-spot inspection for GMP certification in the second half of the year.


Mr. QuJiguang, Chairman and CEO of SSY Group Limited said, "We arefull of confidence on future development of the Company. Leveraging oncompetitive edges on our scale, quality and lean management, our developmentwill definitely be strengthened further despite strong market competition. Weare committed to bringing satisfactory return to our investors. I would like totake this opportunity to express our gratitude to our investors and all staffof the Group for their support to the development of the Company."

About SSY Group Limited

SSY Group Limited is one of the leading pharmaceutical manufacturers in China withnearly 7 decades of operation history and a well-established brand name. TheGroup went public on the Hong Kong Stock Exchange in December 2005 with stockcode 2005. The group has become a component stock of Morgan Stanley CapitalInternational Index (MSCI) China Index from June 2018. The Group is principallyengaged in the research, development, manufacture and sale of a wide range ofpharmaceutical products, including OTC drugs, bulk medicine and medicalmaterials, mainly intravenous infusion solution to hospital and distributors.The manufacturing plants of the Group locates in Hebei Province and JiangsuProvince in China, its products take leading position in the high-end hospitalmarket in China.