Kingworld Medicines Sees Profits Soar 159% to RMB 30.3 Million in 2021

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HONG KONG, March 30, 2022 – (ACN Newswire) – – Kingworld Drug Group Limited (stock code: 01110.HK), a leading omnichannel company providing world-renowned healthcare products, today announced its audited consolidated results for the fiscal year ended December 31, 2021. Although the Group faced many uncertainties in 2021, it managed to achieve significant recovery and growth. Turnover increased by 13.7% to approximately 847.4 million RMB. Profit attributable to owners of the Company increased by 159% to approximately 30.3 million RMB. Basic earnings per share increased 162% to approximately 5 cents RMB. Board recommends payment of final dividend of 2.39 HK cents per share for the year ended December 31, 2021 (2020: 0.65 Hong Kong cents).

The distribution of pharmaceutical products has been one of the Group’s key businesses for many years. In 2021, the revenue of Nin Jiom Pei Pa Koa, Nim Jiom Pei Pa Candies and Kingworld Imada Red Flower Oil recorded a year-on-year increase of 85%, 14% and 29%, respectively.

With regard to the pharmaceutical products distribution business, the Group continued to optimize its distribution network and made structural adjustments. Based on the statistics of the market sales traceability management system (SMART), the Group has implemented the “one product, one city and one strategy” policy. As a result, the Group has firmly cultivated existing geographic markets and established itself in countries with strong potential. At the end of 2021, the Group has entered into partnerships with more than 2,900 chain store operators, covering 88,886 chain pharmacies, which represents a 10% year-on-year increase. The partnerships also covered 92,826 individual pharmacies and 29,090 primary medical facilities, representing a year-over-year increase of 13% and 31% respectively.

The Group also distributes well-known health products from around the world, including the Culturelle probiotic product line, which is a leading brand in the probiotic products market in United States, and the Carmex lipstick series. In 2021, Culturelle continued to be the leading product among similar products in the market, and the Group additionally introduced new Culturelle products such as Culturelle probiotic products for women in the market. hong kong Marlet. Currently, algae oil is gradually replacing fish oil as the new favorite in the market. The Group then approached Life’s DHA, a pioneer in algae oil, and obtained the right to operate its flagship store. This product is set to become another pillar health product of the Group.

The Group has also strengthened its offline and online business links, which in the former include Watsons, Mannings, CRcare and CS, while in the latter the Group has consolidated its presence on key platforms such as Tmall, JD.com, Kaola and Nicomama. . In 2021, the Group built B2C e-commerce stores and trained 13 stores on six platforms. House of Kingworld Healththe Group’s overseas flagship store, is one of the first pharmaceutical flagship store groups to receive the authorization of Small International, which is one of the first national cross-border pharmaceutical e-commerce pilot platforms. The first batch of cross-border pharmaceuticals [to enter the Chinese market] included dozens of well-known hong kong drugs, such as Nim Jiom, Wong To Yick, KAWAI, Weisen-U, Eu Yan Sang and more. Currently, there are 36 brands and 89 SKUs available on Home of Kingworld Health.

The Group’s medical devices segment, Dong Di Xinperformed well in 2021. Dong Di Xin continued to facilitate the semi-automation of production lines. Companies involved in various types of medical devices under Dong Di Xin have gradually developed in a balanced manner, and among all these products, the two profitable flagship products, hand-held therapy devices and professional therapy devices, have shown much stronger sales growth . In the domestic market, the medical device products of Dong Di Xin covered more than 20 key cities across the country and successfully entered more than 80 class A hospitals and many outpatient physiotherapy and rehabilitation institutions in China. In foreign markets, Dong Di Xin achieved balanced development in several key markets including America, Europe and Asia Pacific Region. During the year under review, it also entered into a strategic partnership with a well-known international producer of sports rehabilitation devices.

With regard to the Group’s investment project, the construction of the foundation for Longde Health Industrial Park has been completed and construction on the land is progressing as planned. According to the plan, the park will have a total project area of ​​10,000 square meters and a total planned construction area of ​​58,336 square meters. The park will consist of four main areas, including the group research and development center, the Shenzhen health industry technology innovation center, the national development center for the Shenzhen-Hong Kong Loop Chinese Medicine Technology Innovation Park, and the Group’s national logistics and distribution centre. Several biopharmaceutical producers and research units have expressed their interest in possibly setting up in Longde Health Industrial Park in the future.

In 2021, the Group began negotiations for the acquisition of Innopharma AG of France (“Innopharma”). Brands recognized by the Group and Innopharma were registered in three European countries. The Group expects to finalize the acquisition in 2022, with internal financing. It is expected that the acquisition of Innopharma enable the Group to understand and analyze the European market more quickly, enable the Group to rapidly introduce quality dietary and daily care products Europe, and facilitate the exploration of more investment opportunities. Moreover, the acquisition will help the group to start OEM label production and start export business in the future. Reciprocally, Innopharma may be able to assume the role of registrar and manage the commercial advisory business for the Group’s proprietary traditional Chinese medicine and healthcare products in Europe.

It should be noted that the Group has established a hong kong joint venture called Fat Chi Medicine Company Limited in March 2021. The company will officially operate the Foci series of products in the hong kong and Macau markets.

In order to encourage key employees to evolve with the company, the Group granted a total of 1,556,000 shares under the free share allocation program to 73 participants selected from functional departments, the sales department and the marketing department January 21, 2022.

Sir. Zhao Li ShengChairman of the Board of Directors and Managing Director of Kingworld Drug Group Limitedsaid, “It is only through the collective effort of our employees that Kingworld drugs has been able to develop continuously for more than 20 years. Their efforts have also enabled the Group to maintain a leading position in the omnichannel supply chain market for broader healthcare products, ranging from pharmaceuticals to healthcare products and medical devices. In the future, the Group will continue to focus on the medical and healthcare industry, introduce high-quality domestic and foreign brand healthcare products, and increase its penetration of existing markets. At the same time, the Group will rely on Longde Health Industrial Park build a scientific research platform, cooperate with domestic and foreign strategic partners, and gradually develop the Group’s product research and development capabilities. In addition, the Group will seek opportunities for investments or mergers and acquisitions for projects or products and brands, in order to generate synergies and develop in foreign markets.

“As part of multiple expansion strategies across product lines, business segments and geographic coverage, Kingworld Drug Group has promising prospects for the future and expects to create significant returns for shareholders.”

Copyright 2022 ACN Newswire. All rights reserved.

© Japan Corporate News, source JCN Press Releases


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