Two Chinese Pharma Firms Report Strong 2023 Earnings Growth, With Lisheng Pharma Forecasting Over 300% Net Profit Surge

　　【Pharmaceutical Network Industry Dynamics] According to the review, on January 17, two pharmaceutical companies forecasted positive performance for 2023, with Lisheng Pharmaceutical expecting its performance in 2023 to potentially increase by over 300%.
 

According to the earnings forecast released by Lisheng Pharmaceutical on the evening of January 17, its estimated consolidated net profit for the full year of 2023 will increase by 263.2%—305.9% year-on-year, approximately RMB 340 million—380 million.
 

Regarding the main reasons for the change in performance, Lisheng Pharmaceutical stated that the company actively promoted marketing reforms, adjusted the product sales structure, which drove the improvement of the company's overall gross profit margin. At the same time, it strengthened budget management and cost control, reduced various controllable costs and expenses, leading to a certain decrease in the company's costs and expenses. The net profit excluding non-recurring gains and losses achieved significant growth. In 2023, the company disposed of the land at the Huanghe Road plant, receiving land compensation of approximately 248 million yuan. Due to this factor, the net profit attributable to shareholders of the listed company saw a substantial increase in 2023.
 

Public information shows that the products of Lisheng Pharmaceutical cover 15 major categories, with a total of 243 drug approval numbers, including Chinese and Western medicine tablets, capsules, oral liquids, granules, biological preparations, and more.Active Pharmaceutical Ingredients, focusing on therapeutic areas such as cardiovascular and cerebrovascular, anesthesia and analgesia, psychiatric, anti-infective, antidiabetic, and tonic categories.
 

In addition to Lisheng Pharmaceutical, VISHEE also released its 2023 earnings forecast on the evening of January 17. It is expected that the net profit attributable to the parent company’s owners in 2023 will reach 131 million yuan to 141 million yuan, an increase of 37.1741 million yuan to 47.1741 million yuan compared with the same period last year, representing a year-on-year increase of 40% to 50%. The net profit attributable to the parent company’s owners in 2023, excluding the impact of share-based payment expenses, is expected to reach 146 million yuan to 155 million yuan, an increase of 52.6626 million yuan to 61.6626 million yuan compared with the same period last year, representing a year-on-year increase of 56% to 66%.
 

Regarding the main reasons for the change in performance, VISHEE stated that during the reporting period, the company adhered to innovation-driven R&D, continuously expanded its product pipeline, and achieved steady growth in operating scale with gradual optimization and improvement in business structure. Among these, the next-generation pelvic floor magnetic stimulators, transcranial magnetic stimulators, and group biofeedback instruments were iteratively upgraded and launched, strengthening market competitiveness. Since their launch, the business scale of core products represented by magnetic stimulation has grown rapidly.
 

Data shows that VISHEE's main business is mainly engaged in the research and development, production, and sales of medical devices, driven by innovation in R&D, with continuous investment in electrical stimulation, magnetic stimulation, electrophysiology, and rehabilitation.Robotas well as advanced technology research and development in the field of medical aesthetics energy sources, and improve product layout.
 

Recently, VISHEE Medical (Nanjing Vishee Medical Technology Co., Ltd.) stated during an institutional research meeting that as a medical device company in the rehabilitation industry that went public relatively early, it had previously focused more on pelvic floor and postpartum rehabilitation as well as mental health rehabilitation markets. In comparison, the overall revenue scale of its business related to rehabilitation departments was relatively small. After going public, the company has continuously expanded the layout of core products for specialized rehabilitation, enriching its product portfolio for specialized rehabilitation. Currently, it has launched the "Rehabilitation Loop" comprehensive solution for tertiary hospitals’ rehabilitation departments, covering areas such as neuromodulation, critical care rehabilitation, sports rehabilitation, pelvic floor rehabilitation, and psychological cognitive rehabilitation. Going forward, the company will introduce more high-quality solutions tailored to clinical needs for building specialized sub-disciplines in rehabilitation, further improving its multi-dimensional and fully-covered channel system, and achieving robust growth in basic specialized rehabilitation services.
 

In addition, in the field of pediatric rehabilitation, VISHEE stated that the company has developed a mature pediatric rehabilitation solution, providing safe and effective non-drug rehabilitation treatment for children. The current product portfolio includes pediatric-specific versions of transcranial magnetic stimulators, bio-stimulation feedback devices, multi-parameter biofeedback devices, etc. In the future, the company will also actively expand into pediatric-specific group biofeedback devices and cognitive dysfunction software, which can be used for rehabilitation treatments such as autism, ADHD, cerebral palsy, and developmental delays, promoting healthy growth for children.

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.