Nine Chinese Pharmaceutical Companies Nominated as National Technology Innovation Demonstration Enterprises

　　【Pharmaceutical Network Industry DynamicsRecently, according to the "Notice of the General Office of the Ministry of Industry and Information Technology on Organizing and Recommending National Technological Innovation Demonstration Enterprises in 2022," after independent application by enterprises, recommendations organized by local authorities and central state-owned enterprises, and expert reviews, the Ministry of Industry and Information Technology (MIIT) announced the tentative list of National Technological Innovation Demonstration Enterprises for 2022, proposing to recognize 65 enterprises as National Technological Innovation Demonstration Enterprises.
 

Among them, there are 9 pharmaceutical enterprises, including Wuhan Biological Products Research Institute Co., Ltd., Jafron Biotech Group Co., Ltd., Betta Pharmaceuticals Co., Ltd., Walvax Biotechnology Co., Ltd., Guizhou Yibai Pharmaceutical Co., Ltd., Grand Pharmaceutical (China) Co., Ltd., Xiamen Zeesan Biotech Co., Ltd., Autobio Diagnostics Co., Ltd., and Xiangyu Medical Co., Ltd.
 

It is reported that the conditions for applying for the "National Technological Innovation Demonstration Enterprise" are very strict. The applicant must have an independent legal entity status, a sound financial management system, and good accounting credit, tax credit, and bank credit; have research and production bases in China with control rights owned by the Chinese party; achieve significant results through the implementation of technological transformation based on technological innovation achievements; possess a certain scale of production and operation, with more than 300 employees, annual sales revenue of more than 30 million yuan, and total assets of more than 40 million yuan...
 

From the performance announcements released by these pharmaceutical companies, it is evident that they truly deserve to be recognized as national technology innovation demonstration enterprises. In particular, Jafron's 2021 annual report shows that during the reporting period, the company achieved revenue of 2.675 billion yuan, a year-on-year increase of 37%; net profit attributable to shareholders of 1.197 billion yuan, a year-on-year increase of 37%; and non-GAAP net profit attributable to shareholders of 1.137 billion yuan, a year-on-year increase of 35%. Recently, the 2022 semi-annual report disclosed that during the reporting period, the company achieved revenue of 1.554 billion yuan, a year-on-year increase of 30.8%; net profit attributable to shareholders of 748 million yuan, a year-on-year increase of 20.64%; non-GAAP net profit of 699 million yuan, a year-on-year increase of 19.52%; and basic earnings per share of 0.93 yuan.
 

In fact, Jafron Biotech Group has also performed remarkably in innovation. From early 2022 to now, the company has been granted 24 patents, including 6 inventions. To date, the company has accumulated a total of 288 authorized patents (including 59 invention patents (1 U.S. invention patent), 191 utility models, and 38 design patents (1 U.S. design patent)).
 

Grand Pharmaceutical's 2021 annual operating performance showed robust growth in profitability, with total annual revenue reaching nearly HKD 8.6 billion, a year-on-year increase of 35%; net profit reached HKD 2.4 billion, a year-on-year increase of 34%; the company achieved an industrial profit of HKD 2.06 billion during the year. Recently, Grand Pharmaceutical also released its 2022 interim performance. The earnings report showed that Grand Pharmaceutical recorded revenue of approximately HKD 5.21 billion in the first half of the year, a year-on-year increase of 14.1%; gross margin was about 62.5%; attributable net profit was approximately HKD 710 million, excluding the profit from the fair value change of Telix investment which was about HKD 1.09 billion, representing a year-on-year increase of 20.1%.
 

On April 7, Betta Pharmaceuticals disclosed its 2021 annual report, showing that the company achieved a total operating revenue of 2.25 billion yuan in 2021, a year-on-year increase of 20.1%; the net profit attributable to shareholders was 380 million yuan. On August 25, Betta Pharmaceuticals also released its semi-annual report for 2022. The report showed that from January to June 2022, Betta Pharmaceuticals achieved an operating income of 1.253 billion yuan, a year-on-year increase of 8.50%, and the net profit attributable to shareholders of the listed company was 94.7174 million yuan.
 

In addition, the annual report of 2021 disclosed by Guizhou Yibai Pharmaceutical Co., Ltd. shows that during the reporting period, the company achieved revenue of 3.347 billion yuan; net profit attributable to parent company was 244 million yuan, representing a year-on-year increase of 6.56%. In the first half of 2022, the company also achieved revenue of 1.446 billion yuan and net profit attributable to parent company of 127 million yuan.
 

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