Yiling Pharmaceutical (002603.SZ) released its 2020 annual report on Thursday. It achieved an operating revenue of RMB 8.782 billion in 2020, with a year-on-year growth of 50.76%; and net profit attributed to equity holders of RMB 1.219 billion, with a year-on-year growth of 100.95%.
Lianhua brand products bloomed domestically and internationally
According to the annual report, Yiling Pharmaceutical’s Lianhua Qingwen products achieved a sales revenue of RMB 4.256 billion in 2020, with a year-on-year growth of 149.89%. Data showed that, the market shares of Lianhua Qingwen products increased from 2.44% in 2017 to 9.86% in 2020 among the medicines for colds/heat-clearing in the retail terminals, becoming the first largest brand of proprietary Chinese medicines for colds in the retail market.
Lianhua Qingwen products have played an important role in the prevention and control of COVID-19, which not only drives the dramatic increase in the product sales, but also increases the coverage of blank markets structurally. Its brand influence has increased significantly, with strong market demands. Now it has become a regular medicine in many families, providing impetus for its growth in the future.
The internationalization of traditional Chinese medicines represented by Lianhua Qingwen is also accelerating. In the prevention and control and medical treatment of COVID-19, Lianhua Qingwen showed full evidences, wide applications and significant clinical efficacy, so its value is gradually recognized and affirmed internationally. Against the background of changing epidemic conditions and increasing market demand overseas, Yiling Pharmaceutical is actively implementing an international strategic layout; in 2020, it established an international trade center to accelerate the registration overseas and proactively explore the international markets. Up to now, Lianhua Qingwen Capsules has been approved for marketing in more than 20 countries and regions, including Canada, Russia, the Philippines, and Kuwait. Its overseas registrations have been initiated in more than 30 countries and regions.
Sustainable growth driven by innovative R&D
In recent years, Yiling Pharmaceutical has continued to increase investment in scientific research to promote the close link between scientific research and production. In 2020, it invested RMB 737 million in R&D, with a year-on-year growth of 43.09%, and the R&D investment accounted for more than 8% of operating revenue for consecutive years. In 2020, the company has a total of 1,996 R&D staffs, with a year-on-year growth of 26.89%.
In terms of the R&D of traditional Chinese medicines, Yiling Pharmaceutical has established a new drug research and development innovation technology system based on the theory of TCM collateral disease by combining theory, clinical application and new drugs. At present, the company has developed 11 patented new drugs, of which, 8 drugs are listed in National Medical Insurance and 5 drugs are the National Essential Drugs, covering clinically frequent and major diseases such as cardiovascular and cerebrovascular diseases, respiratory diseases, diabetes, tumors, etc., forming a relatively rich product family. It will provide strong impetus and steady support for the company’s continuous and stable growth in the sales revenue and profits.