Net Profit Increased by 18.2% to RMB 160.8 million;The Board Declared an Interim Dividend of RMB 5.7 cent per Share
HONG KONG, Aug 26, 2015 - (ACN Newswire) - China Pioneer Pharma Holdings Limited, the leading comprehensive marketing, promotion and channel management service providers dedicated to imported pharmaceutical products and medical devices in China, today announced its unaudited consolidated interim results for the six months ended 30 June 2015 (the "Reporting Period").
For the Reporting Period, the Group's revenue increased by 8.7% to RMB 803.2 million and net profit rose by 18.2% to RMB 160.8 million.
The Board declared the payment of an interim dividend of RMB 5.7 cents per share for the Reporting Period. This represents a dividend payout ratio of 47.1%.
For the Reporting Period, the Group continued to enhance its comprehensive marketing, promotion and channel management services offered to small- and medium-sized overseas pharmaceutical product and medical device suppliers. For the pharmaceutical products segment, the Group adopted effective and reasonable measures to tackle pricing policy changes for pharmaceutical products around the country and achieved satisfactory results. The Group also increased its promotion efforts for its products and continued to improve and refine the marketing strategy for each product. For the Reporting Period, revenue generated from pharmaceutical products sold via the provision of comprehensive marketing, promotion and channel management services increased by 23.3% compared to the same period last year to RMB 286.1 million, representing 35.6% of the Group's revenue for the Reporting Period.
For the Reporting Period, the Group continued to strengthen its relationship with Alcon, the world's largest eye care products company, via the provision of co-promotion and channel management services. The Group provides channel management services for all of Alcon's 23 products sold in China and provides co-promotion services for eight of these products. For the Reporting Period, the Group's revenue generated from products sold via the provision of co-promotion and channel management services increased by 12.3% compared to the same period last year to RMB 446.7 million, representing 55.6 % of the Group's revenue for the Reporting Period.
In 2012, the Group started providing comprehensive marketing, promotion and channel management services for medical devices in China, and has achieved sizeable scale after more than two years of development. The Group's medical devices portfolio has expanded from WaveLight Eagle laser surgical series to a wide range of products covering ophthalmic surgical equipment, intraocular lens (IOL), odontology equipment and consumables and wound care products. During the first half of 2015, the Group's sales of WaveLight Eagle laser surgical series were adversely affected by a suspension of tender process on large scale equipment in public hospitals in China. As a result, the Group's overall sales of medical devices were correspondingly affected.
In addition to the expansion of product portfolio, the Group's development strategy focuses on continuously expanding the Group's marketing network. As of 30 June 2015, the Group sold products through its nationwide marketing, promotion and channel management services networks to over 29,000 hospitals and other medical institutions and over 105,000 pharmacies across 31 provinces, municipalities and autonomous regions in China.
Mr. LI Xinzhou, Chairman and Executive Director of China Pioneer Pharma said, "As a crucial year of comprehensively deepening reformation, 2015 witnesses the announcement of several government policies which have significant and far-reaching impact on China's pharmaceutical industry. The boom of the overall pharmaceutical industry has gradually turned into structural development opportunities. Facing with the changes and development of the pharmaceutical industry, the Group will continue to strengthen the position as a leading marketing, promotion and channel management service provider dedicated to imported pharmaceutical products and medical devices in China by taking advantage of its competitive strength and seizing any opportunities that arise to achieve long-term sustainable development.
Mr. LI continued, "Looking forward, we will adhere to our strategic product selection strategy and proactively identify products with high growth potential. The Group will continue to select and add to our portfolio further prospective products and to establish cooperation relationships with suppliers through equity acquisition or strategic investment. Meanwhile, we will continue to improve our sales and marketing network so as to optimise the Group's marketing resources and maximise the products' market value, continuously delivering outstanding returns to our shareholders and the society.
Source: China Pioneer Pharma Holdings Limited
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