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Tonghua Dongbao: Net profit excluding non-recurring gains and losses attributable to shareholders of the parent company up 26.19% YoY in Q3 2023
Date：2023-11-01
Author：東寶
Views：2
On the evening of October 30, 2023, Tonghua Dongbao Pharmaceutical Co., Ltd. (the "Company" or "Tonghua Dongbao") released its quarterly report for Q3 2023.
In Q3 2023, the Company's revenue was RMB 725 million, up 1.92% YoY. Net profit attributable to shareholders of the listed company was RMB 275 million, up 25.04% YoY. Net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, recorded RMB 277 million, up 26.19% YoY.
Over the past three quarters, the Company's revenue was RMB 2.091 billion, down 0.36% YoY. Net profit attributable to shareholders of the listed company was RMB 760 million, dropping 45.81% YoY, mainly due to last year's investment income of RMB 912 million in the same period. Net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was RMB 757 million, up 14.54% YoY.
Consistent sales increase and double-digit business growth
During the reporting period, the Company's human insulin sales continued to increase steadily, and the sales of insulin analog products kept growing fast, contributing to the over 25% YoY growth in net profit excluding non-recurring gains and losses attributable to shareholders of the parent company. The sales growth not only contributes to the ongoing expansion of the Company's market share and reinforces its lead in the industry, but also facilitates the optimization of the Company's product portfolio. In the first three quarters, insulin analog sales accounted for more than 20% of total revenue, recording an increase of more than 10 percentage points compared with the same period in 2021.
Accelerated innovation and sustained R&D performance
In Q3 2023, the Company's innovation and R&D were well underway, with accelerated development of key novel drugs and steady progress of products under development.
In terms of novel drugs, in August 2023, the clinical trial application for a Class 1 new drug, oral small-molecule GLP-1RA, was accepted; in October, BC Combo injection met the primary endpoint in phase I clinical trials in Germany, laying a solid foundation for subsequent clinical trials; database lock and unblinding were performed in the phase IIa clinical trial of URAT1 inhibitor, a Class 1 new drug for gout; the last patient visit was completed in phase I clinical trial of XO/URAT1 inhibitor, which is expected to become a first-in-class gout medicine.
In addition, three products under research have been or are about to be approved for marketing: in September 2023, the application for the production of etoricoxib tablets was accepted; in October, empagliflozin drug substance and tablets were approved for marketing, enriching the Company's portfolio and complementing the available products; GLP-1RA liraglutide injection is expected to be approved for marketing by the end of 2023. With the approval, the Company will become the second Chinese company approved for marketing GLP-1RA and rank among the top players in the market of Chinese-made GLP-1RA products.
Ongoing international strategy and expanded global presence
During the reporting period, the Company continued to implement its international strategy and planned its access to the US insulin market. In September 2023, the Company and Nanjing Kingfriend Biochemical Pharmaceutical Co., Ltd. ("Kingfriend") announced a strategic partnership to introduce their insulin injections, including insulin glargine, insulin aspart, and insulin lispro, to the US market. According to the agreement, both companies will collaboratively develop and manufacture these three insulin drugs, adhering to US FDA requirements. Once these drugs are approved, Kingfriend will secure exclusive rights to market these drugs in the U.S.
Successful access to the developed countries represented by the United States will help the Company further expand its presence in pharmaceutical markets in developing countries and accelerate its global business.
Enriched product portfolio and promising business growth
In the future, the Company's R&D efforts will yield more products approved for marketing, consistently diversifying the Company's product portfolio and driving business growth. In terms of innovation and R&D, the Company will stay committed to the strategy of "Internal R&D and External Cooperation" to strengthen its R&D capabilities and efficiency while actively seeking external collaboration, as it continues to enhance its product portfolio. In terms of sales, the Company will take advantage of new product launches to fully explore the Chinese market, and implement its international strategy by expanding overseas markets with more quality products, continuously creating space for growth.
