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Tonghua Dongbao sees accelerated profit growth recording YoY increase of 21.33% in Q1 2021
Date：2021-04-26
Author：東寶
Views：99
On the evening of April 26, Tonghua Dongbao (SH.600867, hereinafter referred to as the "Company") released its quarterly report for Q1 2021. In Q1 2021, the Company recorded operating revenue of RMB 823 million, up 14.52% YoY, a net profit attributable to owners of the parent company of RMB 337 million, up 21.33% YoY, a net profit excluding non-recurring gains and losses attributable to shareholders of the listed company of RMB 337 million, up 20.46% YoY.
The Company has seen accelerated revenue and profit growth and improved profitability during the reporting period. Days ago, the Company delivered a wonderful annual report for 2020, with the revenue and net profit attributable to the parent company up by 4.14% and 14.63% YoY, respectively. This quarterly report gives much fancier numbers. In Q1 2021, the Company’s revenue and profit increased by 14.52% and 21.33% YoY, respectively.
Behind the sharp increases are the steady growth of the Company’s main products - recombinant human insulin injections, which saw a YoY sales increase of 7.18% in Q1, as well as the continuous release of insulin glargine injections which generated sales revenue of more than RMB 70 million in Q1. Thanks to a further scale effect brought by the revenue growth, the decrease in procurement costs, the increased proportion of high-margin products, the improved operational efficiency, and the control over the cost of sales and other expenses, the Company attained a record-high level of profitability in Q1, with a gross profit margin of 83.2%, up 3.7 percentage points YoY, and a net profit margin of 40.9%, up 2.3 percentage points YoY.
In 2021, the Company continues to increase its R&D investment, with a YoY increase of 70.03% in the R&D spending in Q1. It established a novel drug R&D center in Hangzhou, and signed a strategic cooperation memorandum on three novel drug projects with WuXi AppTec. And the clinical trial application for its triple-target inhibitor was accepted the other day. All of these embody the Company’s philosophy of "Establishing a Global Brand Through Consistent Innovation" and its commitment to technological innovation. Going forward, the Company will make ongoing efforts to honor its commitment to being an explorer and leader of novel drugs R&D in the field of endocrinology.
