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Tonghua Dongbao reports annual net profit of RMB 929 million for 2020
Date：2021-01-14
Author：東寶
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On the evening of January 14, 2021, Tonghua Dongbao (600867) released a performance report which disclosed that the Company achieved operating revenue of RMB 2.925 billion, up 5.32% YoY, and a net profit attributable to shareholders of the listed company of RMB 929 million, up 14.51% YoY, in 2020. In Q4 alone, the Company recorded a net profit of RMB 175 million, an increase of 42% over the same period of the previous year. It is worth mentioning that the growth was accelerating quarter by quarter last year.
During the reporting period, the Company saw further expansion of its production scale fueled by the steady growth of sales revenue, enhanced overall scale effect, lower costs of raw and auxiliary materials, obviously higher gross margin, and gradually tightened control of sales expenses.
Tonghua Dongbao boasts significant advantages in insulin development and production and ever-increasing competitiveness and brand influence. In 2020, the Company introduced radical reforms and poured enormous resources into corporate governance and product R&D, which have produced impressive results. In the same year, a group of young and vigorous executives became board members and introduced a series of reforms. After that, Dehong Capital, a global private equity firm, became a strategic investor of the Company, who would help the Company further optimize its shareholding and governance structure, modern management system, and incentive mechanism, and work with the Company on fine operation, investment and M&A, and global growth. Moreover, the Company launched an equity incentive plan in late September 2020, which combines the interests of shareholders, the interests of the Company, and the personal interests of the core team to facilitate the Company’s long-term success.
The Company’s core products - the human insulin - maintained robust growth during the reporting period. Since its launch in February 2020, insulin glargine has been quickly approved for use in hospitals across China, generating significant revenue above expectations. In November 2020, the ultra-rapid-acting insulin lispro injection was approved for clinical trials, marking a significant achievement of Tonghua Dongbao in the field of novel and modified new drugs.
Next, the Company will continue to improve its governance structure, incentive mechanism, and product portfolios. While consolidating its competitive position in the insulin market, the Company will further build up its presence in novel drug development. It will fully mobilize the resources from strategic investors to accelerate new product development and time-to-market and improve its industrial position and overall competitiveness.
