Large variety of injections drives Kunming Pharmaceuticals to increase net profit by 73% in the first half of the year

Business News Agency August 1st Kunming Pharmaceutical Group Co., Ltd. disclosed the semi-annual report of 2011 on the evening of the 28th, Kunming Pharmaceuticals exceeded its market expectations in the first half of the year, realized main business income of 1.076 billion yuan, total profit of 70.1 million yuan, net The profit was 56.01 million yuan, an increase of 27.92%, 55.51%, and 73.69% compared with the same period of last year.

According to He Pingge, a pharmaceutical analyst at Guosen Securities, the sustained and rapid growth of Kunming Pharmaceuticals' performance has continued to increase due to the continued growth of exclusive varieties such as Xuesaitong and Gastrodin, and the increasing contribution of oral preparations such as Xuesaitong Soft Capsule. “The company’s product line based on botanicals is well-established, and sales of the core product, Xuesaitong, are expected to increase after entering the base drug catalog.”

The related person of the Kunming Pharmaceutical Directorate Office told the First Financial Daily that in the second half of the year, the company will continue to promote the strategy of large varieties, focusing on the promotion of oral preparations and achieving sustained and rapid growth of key products. The market expects that the growth of Kunming pharmaceutical-related key products will maintain an increase of over 50% in the future.

He Pingge stated that the Kunming Chinese Medicine Factory, a subsidiary of Kunming Pharmaceutical Group, adjusted its marketing organization and key management personnel. Senior executives personally led the team and their future performance improvement was worth looking forward to; the joint venture company Beck Norton Pharmaceuticals continued to introduce new products from abroad to maintain steady growth.

However, due to the production and sales of botanicals, Kunming Pharmaceuticals will inevitably continue to be affected by the increase in the price of raw Chinese herbal medicines. Several core products of Kunming Pharmaceuticals are cardiovascular and botanical drugs. Its main raw material, Sanqi, has been experiencing a surge in prices due to the drought in Wenzhou in Wenshan, Yunnan Province, which was the main production area in 2009, and has maintained high volatility.