CR Pharmaceutical

(Hong Kong, 24 August 2017) – China Resources Pharmaceutical Group Limited (CR Pharma) (stock code: 3320), announced its interim results for the six months ended 30 June 2017 (“Reporting Period”).

During the Reporting Period, CR Pharma recorded total revenue of approximately HK$82,737.6 million, representing an increase of 9.4% year-on-year (an increase of 15% in RMB terms); gross profit for the period amounted to approximately HK$12,528.0 million, representing an increase of 6.6% year-on-year (12.1% in RMB terms). Gross profit margin was 15.1%, down only by a slight 0.4 percentage points. Profit attributable to owners of CR Pharma was approximately HK$1,810.4 million, representing an increase of 10.7% year-on-year (16.3% in RMB terms). Should nonrecurring profit and loss be excluded, the growth in profit attributable to owners of CR Pharma for the period would be even more considerable. During the Reporting Period, basic earnings per share were HK$0.29.

As at 30 June 2017, Revenue of its three major business segments, namely pharmaceutical manufacturing, pharmaceutical distribution and pharmaceutical retail, accounted for 13.9%, 83.5% and 2.6% of CR Pharma’s total revenue, respectively. Attributable mainly to product mix optimization and continuous improvement of the manufacturing process, Pharma manufacturing business achieved stable revenue growth and better profitability. CR Pharma started strategic cooperation on multi-front with partners. A number of major projects were complete and applications for those cooperated with National Natural Science Foundation of China were made. In addition, certain products of clinical and market values were introduced. The coverage of pharma distribution business network kept growing. Pharma distribution business entered into four provinces, namely Jiangxi, Hainan, Qinghai as well as Xinjiang, thus accomplishing a pharmaceutical distribution network that to date covers 27 provinces, municipalities and autonomous regions. Pharma retail business gradually strengthens its competitiveness through integration of brand, operation management, data systems and other aspects of pharmaceutical retail resources, as well as development of innovative business.

Looking ahead, CR Pharma will continue to implement its six key business expansion strategies. By relying on its own advantages and following the direction of the policies and the market demand, CR Pharma will speed up the development through strategic mergers and acquisitions and international collaboration. It will improve its intrinsic development potential through optimizing product mix and business model, optimizing the research and development and innovation system and deepening synergy effects so as to achieve the long-term stable and sustainable development in the pharmaceutical manufacturing, distribution and retail segments and continue to reinforce and elevate CR Pharma’s leading position in the pharmaceutical industry in China.

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