Consequence abstract:

• Complete income HK$3,405 million, representing a development of 39.4%;
• Internet revenue HK$570 million, representing a development of 106.8%;
• The Board resolved to pay interim dividend of HK$0.06 /share

HONG KONG SAR – Media OutReach – 29 August 2022 – SSY Group Restricted (“SSY” or the “Firm”; Inventory Code: 2005.HK) and its subsidiaries (collectively, the “Group”) presents the interim outcomes of the Firm for the six months ended 30 June 2022.

In the course of the first half of 2022, the Group achieved a income of HK$3,405 million, representing a rise of 39.4% in comparison with corresponding interval of final yr (“1H2021”) with gross revenue margin 57.0%, representing a lower of three.2 proportion factors in comparison with 1H2021. The Group achieved a web revenue of HK$570 million, representing a rise of 106.8% in comparison with 1H2021.

Confronted with stress from steady impacts of the epidemic, shrinking market calls for and provide shock, the Group seized the event alternatives arising from modifications within the industrial panorama and coverage assist, and applied a sequence of measures to enhance high quality and improve effectivity of its fundamental enterprise segments together with preparations, bulk prescribed drugs and medical supplies, in order to keep up good development momentum. Specializing in the twin circulation of home and worldwide markets improvement sample, the Group concentrated its efforts on market improvement for dominant preparations and key varieties of preparation merchandise, and explored the home and abroad markets for its bulk prescribed drugs and medical supplies merchandise. The Group additionally proactively optimised its product combine and positioned nice emphasis on the advertising and marketing of latest featured merchandise, resulting in a brand new development in market shares and gross sales quantity.

The Board of administrators proposed to pay an interim dividend of HK$0.06 per share for yr 2022, which elevated by 20% as in comparison with 1H2021. The overall quantity of interim dividend this yr to be paid is roughly HK$179 million.

Amidst the normality beneath epidemic, the home pharmaceutical market witnessed a secure inflexible demand. The Group continued to extend the market shares of the intravenous infusion resolution and constantly solidified its main place available in the market. In the course of the first half yr, the gross sales quantity of infusion options reached 754 million bottles (luggage), representing a rise of 19.3% in comparison with 1H2021. Income of infusion options reached HK$1,834 million, representing a rise of 20% in comparison with 1H2021. Ampoule merchandise delivered a exceptional market efficiency and have turn into a brand new assist for the event of the Group’s injection section. In the course of the first half yr, the income of ampoule merchandise was HK$511 million, representing a rise of 4.7% in comparison with 1H2021, which maintained development momentum. Strong preparations enterprise section delivered a gradual and constructive gross sales efficiency. In step with the nationwide and native centralised procurement insurance policies, the Group made coordinated efforts to safe market provide of tender-awarded merchandise to advertise and broaden the market of latest merchandise. In the course of the first half yr, the income reached HK$145 million, representing a rise of 71% in comparison with 1H2021. Bulk prescribed drugs enterprise achieved a lift in each manufacturing and gross sales. After steady optimization of manufacturing course of, the premium manufacturing capacities had been realised quickly. Specifically, as a vertical integration, the Group acquired Cangzhou Lingang Youyi Chemical Co., Ltd. initially of the yr, considerably enhancing the coordination between upstream and downstream entities of the commercial chain. In the course of the first half of the yr, income of bulk prescribed drugs reached HK$777 million, representing a rise of 214.6% as in comparison with 1H2021. The Group achieved a development bounce in manufacturing and sale of medical supplies. Within the first half of the yr, income from exterior prospects of the Group recorded HK$90.55 million, representing a rise of 12.5% in comparison with 1H2021.

By utilizing market calls for because the information and adhering to the technique of “mixture of generic and modern medicine”, the Group made steady and coordinated efforts to push ahead the analysis and improvement of featured generic medicine, bulk prescribed drugs, modern medicine, medical supplies in addition to product varieties beneath consistency analysis. The Group stored solidifying and increasing its power within the analysis and improvement of featured generic medicine. In the course of the first half of the yr, a complete of twenty-two manufacturing approvals had been obtained, together with 14 varieties of infusion merchandise and eight varieties of bulk prescribed drugs, with the variety of approvals obtained exceeding that of the entire yr of 2021. To this point, a complete of 26 product varieties with 35 specs of the Group have handed or had been thought to be passing the nationwide consistency evaluations concerning the standard and efficacy of generic medicine. In the course of the interval, 124 merchandise of assorted varieties had been additionally submitted by the Group to the Middle for Drug Analysis of the Nationwide Medical Merchandise Administration for approval, together with 100 preparation merchandise (together with merchandise for consistency analysis) and 24 varieties of bulk prescribed drugs. The Group achieved constructive progress within the Section 1 scientific trial of the Sort I modern drug NP-01 mission, and had been stepping up efforts within the preparation of utility supplies for Section 1 scientific trial for the modern drug together with ADN- 9, aiming to use throughout the yr. As well as, the bioprocessing movie mission of Jiangsu Finest New Medical Materials Co. Ltd. with an annual manufacturing capability of 20 million sq. meters has accomplished building and was prepared for manufacturing on July 2022, offering a strong basis for general enchancment of market provide capability.

Trying ahead to the second half of 2022, financial scenario might stay extreme and complex amidst the normality beneath international epidemic. The Group will actively seize improvement alternatives and can make effort to facilitate the twin circulation of home and worldwide markets as a way to safe preemptive alternatives for improvement. On the preparations enterprise, the Group can have an in-depth and a greater systematic evaluation on nationwide and native centralized procurement insurance policies, and can seize the market alternatives arising from the eighth spherical of Nationwide Centralised Medicines Procurement, with an intention to broaden the market share and affect of its merchandise passing the consistency analysis. On the majority prescribed drugs enterprise, the Group will proactively facilitate the home and worldwide markets, and make efforts to strengthen and broaden its bulk prescribed drugs enterprise, aiming to make a better contribution to the event of the Group. By way of analysis and improvement, the analysis and improvement of specialized generic medicine stays the main target of the Group’s analysis and improvement work for the second. Going through the more and more intensified competitors within the analysis and improvement of generic medicine, the Firm will leverage on the cooperation mechanism with universities and scientific analysis institutes, and discover extra prime quality analysis tasks. The Group will proceed to push ahead proactively the spinoff itemizing of bulk prescribed drugs section within the PRC. On the identical time, the Group will proactively search alternatives of acquisition and funding within the pharmaceutical business as a way to improve the return on funding.

Mr. Qu Jiguang, Chairman and CEO of SSY mentioned, “Going through the dangers and challenges within the post-pandemic period, the Group will seize new alternatives for improvement within the business. We are going to keep the resilience and vitality of modern improvement, and try for facilitating the standard improvement of the Group. We firmly consider that, by advantage of the dimensions, high quality, administration and model benefits accrued within the business over time and the continual innovation momentum launched by the Group, we’ll try to create new excessive document once more in yr 2022 by way of manufacturing, gross sales and revenue, and can convey passable returns to our traders with a stronger results of improvement.”

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The issuer is solely answerable for the content material of this announcement.

About SSY Group Restricted

SSY Group Restricted is without doubt one of the main pharmaceutical producers in China with almost 7 many years of operation historical past and a well-established model title. The Group went public on the Hong Kong Inventory Change in December 2005 with inventory code 2005. The Group is principally engaged within the analysis, improvement, manufacturing and promoting of a variety of pharmaceutical merchandise, together with completed medicines of primarily intravenous infusion resolution and ampoule injection to hospitals and distributors, bulk prescribed drugs and medical supplies. The manufacturing vegetation of the Group locates in Hebei Province and Jiangsu Province in China, and its pharmaceutical merchandise has main place within the high-end hospital market in China.