1. Summary of 2013 results: income realized during the period was HK $697 million, up 30.4% over the same period last year; gross profit was HK $503 million, up 32.1% over the same period last year; gross profit margin was 72.2%, 0.9 percentage points higher than the gross profit margin of 71.3% in 2012; net profit rate was 21.6%, higher than the 12-year net profit rate of 21.3% 0.3 percentage points Net profit attributable to equity shareholders was HK $150 million, up 32.2 per cent from a year earlier; basic income per share increased to HK $0.2841 from HK $0.2282 in 2012; and dividends per share were HK $0.052, up from HK $0.04 in 2012.
2. Main financial indicators: the company's current ratio is 2.36, compared with 3.0 in 2012; the liquidity ratio is 1.92, 2.6 in 2012; the turnover date of accounts receivable is 39 days, which is 5 days less than that of 44 days in 2012; the turnover day of accounts payable is 62 days, an increase of 13 days compared with 49 days in 12 years; the turnover day of inventory is 171 days, compared with 118 days in 2012. Inventory was HK $118 million, a big increase from HK $64 million in 12 years, mainly because the company prepared in advance for the new version of GMP certification and IDL replacement. Cash and cash equivalents increased from HK $336 million in 12 years to HK $365 million.
3. The company's R & D and new drug reserves: in 2013, the company's R & D investment was HK $32.26 million, an increase of 98% over the same period last year. It is expected that the future R & D investment will increase year by year, and there will be 7 clinical trials to be carried out in 14 years. The company expects to have 1-3 new products on the market in 2014, which is expected to further enrich the product line and form a new sales growth point.
The company made significant progress in applications for five new research drugs in 2013:
1) Gimatican: an application was submitted in August 13 for import registration to conduct phase III key clinical studies in China, mainly for the treatment of ovarian cancer, which is expected to be approved in the second quarter of 14 years.
2) Betrixaban: an IND application has been submitted in August 13 to conduct a third phase of APEX study in China, which is expected to start in the third quarter of 14 years, mainly for the treatment of deep venous thrombosis, and is expected to be completed in 15 years.
3) Istarxime: an IND application was submitted in September 13 to conduct a global phase IIb study of innovative chemical drugs for the treatment of acute heart failure, and patient recruitment activities are expected to be launched in China in the first half of 14 years.
4) Rostafuroxin:13 resubmitted the IND application for the global phase IIb study, mainly for anti-hypertension
5) ZK003: submit an application for IND to the FDA in November, 13, mainly to treat alopecia caused by chemotherapy and accelerate corneal ulcer healing.
Major progress in the registration of imported products:
1) successfully obtained the drug import license of treprostinil injection from FDA in April 13, and is expected to be put on the market in the second quarter of 14 years, mainly for the treatment of patients with pulmonary hypertension (PAH).
2) the 13-year approval for the sale of oral levocarnitine has made the company a marketer of both injectable and oral levocarnitine preparations, and the levocarnitine franchise has been the main driver of the company's growth over the past few years.
3) the trazodone patient registration study has been completed in 13 years and has applied for an import license from the FDA, which is expected to be approved in 15 years, mainly for the treatment of depression.
4. Business sales in 2013: several of the company's major products have achieved greater growth: Zainingping, an increase of 124%; you Jingan, an increase of 45%; Ke Yi Neng, an increase of 38%; Phipley, an increase of 34%; and Limaiqing, an increase of 28%. The proportion of sales expenses to turnover fell by two percentage points to 32 per cent; sales of intermediates and APIs decreased by 0.14 per cent compared with the same period in 2012.
5, the company's new capacity construction: the new capacity facility in Hefei, Anhui was completed in the fourth quarter of 2013 and passed the new GMP certification in December 13; the new production base in Nansha, Guangzhou will be put into use in the second quarter of 2014.
6. Progress of the company's international cooperation: in January 2013, the company entered into an agreement with Portola Pharmaceutical,Inc to jointly expand the third phase of Betrixaban APEX research to China. The company is expected to obtain a commercial patent for the drug in China, and is expected to register the drug in the United States, Europe and China by the end of 2015. In January 2013, the company entered into a licensing agreement with the Spanish company GP Pharm to exclusively promote and distribute long-acting Leuprolide (a drug for prostate cancer). The company's subsidiary, China Life Pharmaceutical Therapy Corporation, has entered into a strategic partnership with Dyax Cop to develop and commercialize Kalbitor for the treatment of hereditary angioedema (HAE, a rare and fatal orphan disease) in Hong Kong and Macau, China.
7. How does the company view the status of orphan drugs: the company will still regard orphan disease as a future development direction of the company, and devote itself to doing this kind of socially meaningful promotion in the medical field.
