HONG KONG, May 28, 2024 - (ACN Newswire) - China Resources Pharmaceutical Group Limited (“CR Pharmaceutical” or the “Group”) (stock code: 3320.HK), recorded total revenue of RMB244,703.9 million last year, a 12.2% climb year-on-year, and net profit of RMB 7,775.0 million, a 16.8% increase year-on-year. Profit attributable to owners of the Company was RMB3,854.2 million, up 10.1% year-on-year. Earnings of the Group continued to grow, and its performance potential gradually releasing in the post-pandemic.

Synergistic Development of Three Major Business Segments with Leading Advantages in Distribution Business

CR Pharmaceutical is a leading state-owned pharmaceutical enterprise. It owns such subsidiaries as CR Double-Crane, CR Sanjiu, CR Jiangzhong, Dong-E-E-Jiao, CR Boya Biopharmaceutical, and CR Zizhu, all with priding brand advantages and star products. The Group’s three major business segments, namely pharmaceutical manufacturing, pharmaceutical distribution and pharmaceutical retail businesses, have been developing in synergy and realizing steady growth. Among them, pharmaceutical distribution business contributes approximately 80% of the Group’s revenue. As the third largest distributor of pharmaceutical products in China, the Group’ distribution network covers 28 provinces serving approximately 240 thousand clients and it also operates more than 230 logistics centres. Moreover, CR Pharmaceutical runs 790 self-owned retail pharmacies, including 272 DTP pharmacies. The Group has also continuously promoted professional development and the deployment along the full-value industrial chain of medical devices, with 40 independent medical device companies already established and digital transformation picking up speed, all conducive to consolidating its position as a leading pharmaceutical distribution company.

"External Mergers and Acquisitions + Integration of Internal Resources" – The Two Wheels Driving High-quality Development

CR Pharmaceutical has continued to expand its business footprint via extensive development, mergers and acquisitions. In 2023, the Group successively acquired relevant stakes in KPC Pharmaceuticals, Anhui Lifang Pharmaceutical and Sichuan Kelun Medicine & Trade to bolster the competitiveness of its core business, improve its competitive advantage in the out-of-hospital market in Anhui Province and boost its market share in South-western China. At the same time, the Group has continued to promote synergistic integration of internal resources to optimise business layout. In March 2024, CR Double-Crane completed acquiring 100% stake in CR Zizhu, allowing it to consolidate its chemical drugs business and enhance synergies. Those measures will help promote the performance of regional businesses and segments of the Group in the future, enabling it to achieve high-quality development.

Embraces SOE Reform and Stock Incentive Plans Contribute to Sustainable Growth

In January 2024, with new strategic investors introduced, CR Pharmaceutical Commercial optimised its capital structure. In January 2023, completing B-round financing of RMB600 million, CR Biopharm further enhanced its mixed-ownership reform. The Group has also actively promoted stock incentive plans. Its subsidiaries, including Dong-E-E-Jiao, CR Jiangzhong, CR Sanjiu and CR Double-Crane, have continued to implement such plans to help the Group achieve sustainable and stable growth and release its performance potential.

The Group achieved satisfactory results in the first quarter of 2024. Its subsidiaries, including CR Double-Crane, CR Sanjiu, CR Jiangzhong and Dong-E-E-Jiao, recorded net profits attributable to owners of the parent company of RMB416 million, RMB1,364 million, RMB267 million and RMB353 million, respectively, up by 11.00%, 18.49%, 9.99% and 53.43% year-on-year. Good performances are expected to positively affect the Group’s long-term growth.

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