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Health Yuan (600380.SH) disclosed its annual report on April 11, 2023. In 2022, Health Yuan achieved total operating revenue of 17.143 billion yuan, a year-on-year increase of 7.8%; net profit attributable to the parent company reached 1.503 billion yuan, a year-on-year increase of 13.1%; earnings per share were 0.79 yuan. It is noteworthy that, starting from 2018, Health Yuan's net profit attributable to the parent company has achieved steady growth for five consecutive years, successfully doubling.

In 2022, Health Yuan through accelerating product innovation, achieving technological breakthroughs, expanding the industrial chain, enhancing comprehensive competitiveness, and accelerating the internationalization process, qualitative effective improvement and reasonable quantitative growth were achieved. Throughout 2022, Health Yuan achieved significant results focusing on the two long-term strategies of "innovation" and "internationalization."

Comprehensive "Innovation"  Full of Highlights

Health Yuan The business scope covers multiple fields, including chemical preparations, traditional Chinese medicine preparations, chemical raw materials and intermediates, biological products, diagnostic reagents and equipment, and health food. Health Yuan was successfully selected for the "2021 Annual China Pharmaceutical Industry Top 100 Series Ranking" sub-ranking "2021 Annual China Chemical Pharmaceutical Enterprise TOP 100 Ranking" TOP 9 by MiNet.

In 2022, Health Yuan as a leader in inhalation preparations continued efforts were made in inhalation preparations: four products were approved for listing, five products were declared for production, six products were undergoing clinical/BE research, and two products were approved for clinical trials. It is particularly noteworthy that Tobramycin inhalation solution has become the world's first inhalation drug for the treatment of bronchiectasis, and also the first inhaled antibiotic in China, which has milestone significance for the research and development of high-end inhaled preparations in China. In addition, at the beginning of 2023, the listing application for Salmeterol/Fluticasone inhalation powder was accepted.

Taking advantage of the opportunity of three inhaled preparation varieties being selected for the fifth batch of centralized procurement and one inhaled preparation variety being selected for the seventh batch of centralized procurement, Health Yuan the domestic sales market was quickly opened, and the market share was continuously improved. In 2022, inhalation preparations showed impressive growth, achieving sales revenue of 1.174 billion yuan, a year-on-year increase of 103.37%.

In addition to inhalation preparations, vaccines are also Health Yuan another major "innovation" highlight. In 2022, the recombinant novel coronavirus fusion protein vaccine (CHO cells) of Lizhu Bio was approved by the National Medical Products Administration to be included in the emergency use of sequential booster immunization for novel coronavirus prevention and control, and was selected for the "Implementation Plan for the Second Booster Immunization of Novel Coronavirus Vaccines." The full-chain R&D achievement transformation ability, from clinical research, production landing to approval listing and terminal promotion, marks a major breakthrough for Health Yuan in the construction of the recombinant protein vaccine platform and the commercialization of the vaccine track. It is worth mentioning that Anvita®, the tocilizumab injection approved for listing at the beginning of 2023, has been included in the treatment plan for severe COVID-19 patients, working alongside vaccines to address both prevention and treatment, and improving the epidemic prevention and control system.

On top of this, the high-barrier complex preparation platform is the solid foundation for the company's "innovation" highlights. Health Yuan Continued investment in the construction of innovative high-barrier complex preparation R&D technology platforms represented by inhalation administration, antibody technology, and sustained-release microspheres. In 2022, Health Yuan made significant progress in the R&D of multiple innovative drugs and high-barrier complex preparation products: 6 products were approved for listing, 5 products were declared for production, and 5 products obtained clinical approval documents.

"Innovation" incubation and introduction also became a Health Yuan major highlight in 2022. In 2022, Health Yuan, together with its subsidiary Lizhu Group established a new industrial investment entity, with a total investment of 1 billion yuan to strategically invest in high-quality major health projects. By "introducing" to increase industrial innovation, a diversified R&D innovation project incubation and introduction platform was built.

"Internationalization" Process Fully Advanced

"Internationalization" is Health Yuan one of the long-term development strategies. Health Yuan stated that its various production enterprises are actively promoting international certification, and the internationalization process will further accelerate.

In 2022, Health Yuan the work on market access, product registration, and promotion of inhalation preparations, assisted reproduction, digestive tract, and antiviral products overseas was strengthened. According to the information, Health Yuan's previous overseas layout mainly focused on the raw materials and intermediates sector. Now, Health Yuan's key products, injection of Esomeprazole Sodium and Esomeprazole enteric-coated tablets, have been successfully approved for listing in Indonesia.

Health Yuan It is also actively expanding the overseas market for inhalation preparations. Among them, the improved new drug Tobramycin inhalation solution is currently in talks with customers in Europe and Southeast Asia for external technology licensing. Products such as Budesonide inhalation suspension and inhalation compound ipratropium bromide solution are undergoing registration in countries such as the Philippines. Budesonide inhalation suspension has completed registration in Macao and completed the first overseas sales of inhalation preparation products.

In addition, Health Yuan it is still continuously promoting international cooperation and external licensing of innovative products and pipelines, and conducting cooperation negotiations with multiple international parties.

While continuously strengthening independent innovation, Health Yuan it actively carries out innovative business cooperation models in the global market, and actively seeks opportunities for frontier technology expansion and product internationalization layout through various methods such as collaborative development and licensing introduction, strengthening commercialization and integration capabilities.

On the premise of consolidating performance, Health Yuan it actively explores financing channels to enhance Health Yuan's capital strength. In September 2022, Health Yuan's Global Depositary Receipts (GDRs) were successfully listed on the SIX Swiss Exchange, becoming the first domestic biopharmaceutical enterprise to issue and successfully list GDRs in Switzerland.

This successful issuance of GDRs in Switzerland has become Health Yuan a significant milestone in the internationalization strategy, possessing an international vision, framework, and operational logic, enhancing overseas reputation, and thus improving Health Yuan's overall profitability and comprehensive competitiveness. Undoubtedly, Health Yuan is at the forefront of the industry in terms of synergy between industry and finance.

Health Yuan There are also noteworthy layouts in cutting-edge fields. Health Yuan, guided by clinical value, is deploying R&D projects with high short-term certainty and cutting-edge technologies with long-term growth potential (such as AI innovative drug molecular design, PROTAC, synthetic biology, gene editing, and cell therapy, etc.).

As a practitioner of "Healthy China", the future Health Yuan We will always adhere to technological innovation as the cornerstone, implementing a dual-wheel drive strategy of innovative drugs and high-barrier complex preparation technology platforms, gradually growing into an innovative pharmaceutical enterprise that cares about people's livelihood, is committed to social responsibility, and has international competitiveness!

Author: Financial Breakfast
Source: Xueqiu