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Net Profit of Kingworld Medicines Increased By 55.8%
Domestic Distribution Business Rebounded Sharply and Core Products Performed Optimistically
HONG KONG, Aug 28, 2023 - (ACN Newswire) - Kingworld Medicines Group Limited ("Kingworld Medicines" or the "Group", stock code: 01110.HK), a leading healthcare distribution company, announced its unaudited interim results for the year ended 30 June 2023 (the "Reporting Period" or the "First Half of 2023") . During the Reporting Period, benefiting from the overall recovery of China's economy and consumption, the group's revenue reached approximately RMB 553 million, an increase of 31.8% compared to the same period last year. Gross profit increased by 15.7% to approximately RMB155 million. Profit for the period increased by 35.9% to approximately RMB48 million. Profit attributable to owners of the Company increased by 55.8% to approximately RMB38 million. Basic earnings per share was increased by 59.9% to RMB 6.38 cents.
Mr. Zhao Lisheng, Chairman of the Board of Kingworld Medicines Group, said: "In the First Half of 2023, with the market recovery and consumers returning to rational consumption, there has been a heightened emphasis on the physical and mental health of individuals. Consumers are seeking to establish connections with various health resources and are actively trying to improve their lifestyles and enhance their quality of life in pursuit of a more fulfilling existence, which has been driven the growth of the group's business."
Pharmaceutical sales continue to grow, and Nin Jiom Pei Pa Koa has shown outstanding performance.
In the First Half of 2023, the group seized the opportunity of the demand for cough and respiratory products from the post-"Yangkang" group (i.e the recovering Covid-19 patients). Through the company's SMART system and collaboration with partners, the products were quickly displayed and sold on the shelves of retail outlets. Precise marketing promotion further contributed to the significant revenue growth of Nin Jiom Pei Pa Koa during the Reporting Period. On the other hand, the group's Taiko Seriogan experienced slight growth due to its excellent quality, reputation, and effective treatment, but faced challenges due to global supply shortages.
Besides, During the Reporting Period, the Group obtained the cooperation authorisation for the promotion of Fortune Coltalin in Shanghai, Henan, Anhui, Shaanxi and Gansu for three years, opening a new chapter of cooperation between the two parties. The Group has obtained the authorisation of the renowned brand product, which demonstrates the Group's strength and control over consumption terminals. Coltalin and Nin Jiom Pei Pa Koa are well-known products come from Hong Kong and are applied to fever as medicine. Accordingly, they shared common features at the end-user market. After the Pandemic, people have relaxed their Pandemic prevention awareness gradually, and the recurrence of respiratory illnesses have increased when the Group introduced the product that combines with Nin Jiom Pei Pa Koa and comes as a cross-over with a famous brand in Hong Kong.
Meanwhile, the Group has established sound commercial cooperation and coverage, covering a total of approximately 150,000 chain pharmacies and individual pharmacies, approximately 20,000 primary medical institutions, more than 10,000 hospitals and clinics, as well as some convenience stores and supermarkets.
During the Reporting Period, the group actively explored prescription drugs and clinical sales models, promoting the sales of Enalapril and Jianfu capsules and making progress in this area. The active customer base for Enalapril reached 9,526, representing a year-on-year increase of 7.40%. In the clinical exploration of Jianfu capsules, the group collaborated with partners and doctors to provide clinical data and research papers, demonstrating the effectiveness of the product in treating infertility. This has led to an increased market interest in these products.
With the increasing demand for health supplements, "Culturelle" probiotics and "life's DHA continually remain a high demand in the market.
Benefited from the rebound of visitors to Hong Kong and the trend of consumers' increasing demand for brand quality and price-performance ratio, which led to the substantial increase of the healthcare daily chemical business year-on-year. During the Reporting Period, the group's "Culturelle" probiotics and life's DHA recorded an increase 68.1% and 42.2%, respectively.
With consumers who pay more attention to safety, quality and health, there is a promising prospect for DHA products. Our online DHA products have recorded an increase of 50% in sales, substantially outperforming that of other products. As a pioneer of DHA products, and a well -known leading player in terms of DHA and the related technologies, Life's DHA, which have strong brand influence and superior product quality, have been favoured by consumers. Life's DHA, which have strong brand influence and superior product quality, have been favoured by consumers. The sales of Life's DHA has been increasing since its distribution by our Group. During the Reporting Period, the products of the Life's DHA series has recorded a rapid increase in sales and was among the JD 618 selling list.
Medical devices continue to innovate, and the "6S Lean Production " management model is being further promoted and implemented.
The non-wholly owned subsidiary of the Group, Shenzhen Dong Di Xin Technology Company Limited, is a national high-tech enterprise and was awarded the Shenzhen's Professional, Refined, Specialised and New SME Award during the Reporting Period. Under the continuous influence of the international and domestic macro environment, the overall orders of Dong Di Xin decreased year-on-year. However, through active marketing and promotion, the market share of the major products increased significantly year-on-year with an increase in gross profit margin.
Dong Di Xin will continue to deepen and solidly promote the "6S management model of lean production" to ensure high-quality products. We continued to innovate the bidding and procurement methods of electronic components, which greatly reduced the cost of raw materials and ensured the Company's gross profit margin to achieve the target level.
During the Reporting Period, Dong Di Xin has accumulated the ownership of 3 valid invention patents, 25 valid utility model patents, 1 valid design patents and 13 software copyrights
The Kingworld Longde Life and Health Industrial Park aims to promote the integration and innovation of Traditional Chinese Medicine between Shenzhen and Hong Kong.
Over the years, the Group has been committed to promote the open up and integration of traditional Chinese medicine in Shenzhen and Hong Kong and the and innovation of international layout of traditional Chinese medicine. The Group undertaking the mission of building and innovating the ecological partners of traditional Chinese medicine, The Kingworld Longde Life and Health Industrial Park has been providing specialised biopharmaceutical hardware and equipment sharing platforms,
During the Reporting Period, the overall construction of the Longde Industrial Park was 85% completed. Merchant solicitation work is also in full swing. In the meantime, the Group and Shenzhen Angel Fund of Funds have jointly held the "20+8" industry matching conference, and established two-way relationships with dozens of industrial enterprises, investment institutions and ecological partners in the biopharmaceutical, medical device and healthcare sectors.
Mr. Zhao Lisheng, Chairman of Kingworld Medicines Group, concludes: "2023 is the second year for our strategies of the Fifth Five-Year Plan. Based on the good opening in the last year, the Group has achieved encouraging development during the Reporting Period. The Group has accomplished its plans for the First Half of the year, with results exceeding the targets. We recorded a -year-on-year increase of 32%. In the second half of 2023, the Group will be continued to accelerate the decision and implementation of the strategic plans in the strategies of the Fifth Five-Year Plan. The Group will make adjustments in light of actual market conditions, and make resources integration and allocation of manpower, properties and goods, in order to ensure first priority of investing and increasing strategic resources, The Group will adhere to the concept of "highlighting its principal activities and developing related businesses", so as to continuously enhance the quality of the operation of its pharmaceutical and healthcare businesses, strengthening its competitiveness in technologies and products as well as profitability of the Group, thereby developing the Group into a large group with core competitiveness."
Sectors: Healthcare & Pharm
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