Author: Asia PEVC

Edvantage Group (0382.HK) The First Phase of Sihui Campus Has Been Handed Over and Ready for Operation in Early September

New undergraduate campus created
School scale and condition substantially improved

Edvantage Group Holdings Limited (“Edvantage Group” or the “Group”, stock code: 0382.HK), the largest private higher education group in Guangdong-Hong Kong-Macau Greater Bay Area (the “Greater Bay Area”), is pleased to announce that the first phase of Sihui campus, Huashang College Guangdong University of Finance and Economics (“Huashang College”) under the Group has been handed over as scheduled today 28 August 2020 and unaffected by COVID-19. The construction completed as scheduled and is expected to welcome the first batch of freshmen on September 5 2020. The highly efficient use of the Sihui campus rapidly opened up the channel for the Group’s endogenous growth and created a new undergraduate campus, therefore the school scale and condition have been greatly improved, with the result of Sihui campus directly entering into harvest phase from investment phase, and the Group’s cash flow could be further improved.

Sihui campus is the new undergraduate campus of Huashang College. The total planned area of the Sihui campus is about 800 mu, with a total capacity of approximately 16,000 students. Up to now, the completed construction area is 165,166 square meters. The Group expects that the total number of undergraduate student enrolments will exceed 30,000.

Looking forward, based on the importance of a benign full-time education model for the Group’s steady and sustainable development in the future, the Group attaches great importance to both the quality of schooling and school’s brand building. In recent years, the quality of students and the achievement of the school have consistently ranked among the top private schools in Guangdong Province. Combining the adequate school condition, unique and differentiated domestic and overseas school running models, and the positive advancement of the conversion process, the Group believes that its schools are expected to reach a higher level from the original high-quality form, and at the same time to bring stable cash flow to expand the outreach M&A business, to closely center on the strategic layout of “based in the Greater Bay Area, facing the whole country, and marching to the world”, while cultivate applied talents with international view for Greater Bay Area and China, and finally to form an internationally renowned education group with high quality and high level accrediting criteria.

About Edvantage Group Holdings Limited
Edvantage Group Holdings Limited (“Edvantage Group” or the “Group”, stock code: 0382.HK) is the largest private higher education group in the Greater Bay Area, and an early mover in education sector in pursuing international expansion. The total number of student enrolments of the Group were 35,444 and the Group owns 5 schools in both China and overseas as of 31 May 2020.

In China, the Group currently operates 2 private higher education institutions in Guangdong Province, namely undergraduate colleges Huashang College Guangdong University of Finance and Economics and Guangzhou Huashang Vocational College, featuring business courses (such as accounting, finance, economics and business English) as the strategic curriculum; In overseas, the Group operates a private vocational education institution named Global Business College of Australia authorised by Australian Skills Quality Authority (ASQA) in Australia, offering vocational education courses and non-formal short-term courses. GBCA is the first Chinese international education institution approved by the Australian government. In December 2019, the Group has also acquired a private vocational education institution in Singapore, that is, Edvantage Institute (Singapore) (formerly known as NYU Language School), which has been accredited as EduTrust by the Education Department of Singapore. It is qualified to offer internationally-recognised courses and accept local and overseas students in Singapore. Moreover, the Group established a higher education institution Edvantage Institute Australia, which is granted by the Tertiary Education Quality and Standards Agency(TEQSA) in the first quarter of year 2020, and qualified to accept students, offer and award undergraduate and master degrees. It is expected to start students recruitment in the first quarter of year 2021.

Sino Biopharm Announces 2020 Interim Results

Revenue Increases by 1.0% to RMB12.648 Billion
Underlying Profit up 5.2% to RMB1.761 Billion

Sino Biopharmaceutical Limited (“Sino Biopharm” or the “Company”, together with its subsidiaries, the “Group”) (HKEX:1177), a leading, innovative research and development (“R&D”) driven pharmaceutical conglomerate in the PRC, has announced its unaudited interim results for the six months ended 30 June 2020 (the “review period”).

Results Highlights
– Sino Biopharm ranked 133rd among the Top 500 Chinese Listed Companies in terms of market capitalization in 2020 published by 21 Data News Laboratory in March, up 87 positions when compared to last year.
– According to the index review results announced by the Hang Seng Indexes Company Limited in March, the weighting of Sino Biopharm in the Hang Seng Index increased from 0.88 to 0.96, while the weighting of Sino Biopharm in Hang Seng China Enterprises Index rose from 1.41 to 1.51. The changes took effect after the market close on 6 March.
– On 23 March, the Hang Seng Indexes Company Limited announced the launch of the Hang Seng Stock Connect Biotech 50 Index. Sino Biopharm has been included in the index and was ranked second among the top 10 weighted constituents on that day. The index reflects the overall performance of the 50 largest biotech companies in terms of market capitalization that are listed in Hong Kong or Mainland China and are eligible for trading through the Stock Connect Scheme.
– In May 2020, the China Healthcare Consulting and CITIC Securities jointly issued the “2019 China Healthcare Industry Investment and Financing Honor List”. Sino Biopharm was named as one of Top 10 Best Listed Biopharm Companies in 2019.
– On 8 June, Sino Biopharm was included among the Hang Seng China (Hong Kong-listed) 25 Index, becoming the only pharmaceutical stock selected by the Index.
– On 12 June, PharmExec, a pharmaceutical magazine in the US, announced a compilation of the top 50 global biopharm players in 2020. The Group again made the list this year, ranking 42nd with a revenue of US$3.373 billion.
– The Group’s Budesonide Suspension for Inhalation (brand name: Tianqingsuchang) has obtained approval and has become the first nebulized budesonide generic drug in China. This product is an inhaled glucocorticoid with strong focal anti-inflammatory effect, given through a nebulizer. It can fight inflammation through various ways, not only countering inflammatory cells, but also suppressing glandular secretion, thus reducing exudation from inflammation and sputum, and boasts excellent clinical efficacy for asthma and chronic respiratory patients. It also has a higher technological entry barrier, which requires huge investments in R&D, testing and equipment. Previously, the market only had the branded product of AstraZeneca. In 2019, a sales amount of approximately RMB6 billion was recorded at the specimen hospitals. With high R&D standards, the quality of Tianqingsuchang is as good as the branded product but with differentiation in areas of safety, speed, efficacy, effective duration, etc. The launch of Tianqingsuchang marks a breakthrough for domestic medicine in a product category with a high entry barrier, and offers a new choice to ease the financial burden of local patients.
– Nanjing Chia Tai Tianqing has been included in the Top 100 Innovative Patents of Nanjing Companies published by the Nanjing Municipal Intellectual Property Administration. CT Qingjiang has been named as a National IP Exemplary Enterprise by the National Intellectual Property Administration, PRC.

Results
During the review period, the Group recorded revenue of approximately RMB12,648 million, representing an increase of approximately 1.0% over the same period last year. Profit attributable to the owners of the parent was approximately RMB1,213 million, approximately 16.0% lower than that of the same period last year, which was mainly impacted by the non-cash fair value loss of and effective interest expenses from the EUR750 million zero coupon convertible bonds due 2025 that the Group issued in February 2020. Excluding the impact of (i) amortization expenses of new identifiable intangible assets arising from the acquisition of 24% interests in Beijing Tide (net of related deferred tax and non-controlling interests), (ii) the unrealized fair value losses (net) on equity investments and financials assets, (iii) fair value loss of convertible bond embedded derivative component and (iv) effective interest expenses of convertible bond debt component, underlying profit was approximately RMB1,761 million, approximately 5.2% higher than that of the same period last year. Based on underlying profit, the earnings per share were approximately RMB13.99 cents, approximately 5.2% higher than that of the same period last year. The Group has maintained a strong financial position with cash and bank balances reaching approximately RMB17,091 million at the period end.

The Board of Directors has declared the payment of a second quarterly dividend of HK2 cents per share. Together with the dividend of HK2 cents already paid in the first quarter, the total dividends for the first half of 2020 amounted to HK4 cents (first half of 2019: HK4 cents).

Business Highlights
During the review period, the implementation of the prices in the National Reimbursement Drug List after negotiation and the centralized drug procurement policy had a bigger influence on the Group’s revenue and profit. The rapid growth of new products became the main drivers: Qingkeshu (Abiraterone Acetate Tablet), Anxian (Lenalidomide Capsules), Tianqingsuchang (Budesonide Suspension for Inhalation), Leweixin (Bendamustine Hydrochloride for Injection), Tianming (Caspofungin Acetate for Injection), Weishou (Azacitidine for Injection), Shanqi (Fosaprepitant Dimeglumine for Injection) and Qingliming (Iodixanol Injection). All of these new products have quickly grown into new business drivers, reflecting the value created by the Group’s high R&D investments over the years, and the outstanding abilities of its marketing teams developing new products in different sectors.

The Group capitalized on the success of Anlotinib, a blockbuster innovative oncology medicine, and concentrated its human and financial resources on the oncology sector through creating effective synergies. Apart from the oncology drugs mentioned above, other drugs including Yinishu (Dasatinib Tablets), Qianping (Bortezomib for Injection) and Yijiu (Bortezomib for Injections) also delivered substantial growth. Contributions from the oncology medicines sector to the Group’s growth already exceeded that from hepatitis medicines and cardio-cerebral medicines sectors which were previously key revenue contributors of the Group.

Benefitting from the Group’s deployment in chronic disease management over the years, respiratory system medicine Tianqingsule (Tiotropium Bromide Powder for Inhalation) showed healthy growth. The brilliant performance of Tianqingsuchang (Budesonide Suspension for Inhalation) after its launch also demonstrated the Group’s expertise and competitive strength in respiratory medicines sector. Several subsequent respiratory products of the Group are also in the final stage of clinical trial.

As a result of the increasing use of anti-infectious respiratory medicines during the COVID-19 pandemic and the Group’s stronger promotion of its anti-infectious products, antibiotics products including Tianjie (Tigecycline for Injection), Tianli (Linezolid and Glucose Injection) and Fengruineng (Moxifloxacin Hydrochloride and Sodium Chloride Injection) achieved satisfactory growth. During the pandemic, the Group quickly engaged in different modes of effective communications and consultations with doctors and patients and provided information services via various network technology platforms, which brought about positive impact on its sales.

During the review period, the sales performance of the Group’s major medicine types are as below:

– The sales of oncology medicines amounted to approximately RMB4,018 million, representing approximately 31.8% of the Group’s revenue.

– The sales of hepatitis medicines amounted to approximately RMB2,249 million, representing approximately 17.8% of the Group’s revenue.

– The sales of orthopedic medicines amounted to approximately RMB1,018 million, representing approximately 8.0% of the Group’s revenue.

– The sales of anti-infectious medicines amounted to approximately RMB753 million, representing approximately 6.0% of the Group’s revenue.

– The sales of respiratory system medicines amounted to approximately RMB597 million, representing approximately 4.7% of the Group’s revenue.

– Sales of others amounted to approximately RMB4,013 million, representing approximately 31.7% of the Group’ revenue.

R&D
The Group has continued to focus its R&D efforts on new hepatitis, oncology, respiratory system and cardio-cerebral medicines. During the second quarter, the Group was granted 8 clinical trial approvals, 6 production approvals, and 3 approvals for Consistency Evaluation, and made 20 clinical trial applications, 1 application for Consistency Evaluation and 17 production applications. The production approvals included Bortezomib for Injections (additional specification), Emtricitabine and Tenofovir Disoproxil Fumarate Tablets, Clopidogrel Hydrogen Sulphate Tablets, Invert Sugar Injection (two concentrations) and Vildagliptin Tablets. During the first half of 2020, it obtained 12 production approvals, Consistency Evaluation approval for 9 products (including those deemed to have passed the Consistency Evaluation) and 22 clinical trial approvals. The Group also submitted 19 production applications, 29 clinical trial applications and 4 applications for Consistency Evaluation. Cumulatively, a total of 438 pharmaceutical products had obtained clinical trial approval, or were under clinical trial or applying for production approval. Out of these, 38 were for hepatitis medicines, 189 for oncology medicines, 22 for respiratory system medicines, 24 for endocrine, 35 for cardio-cerebral medicines and 130 for other medicines.

The Group also emphasizes on the protection of intellectual property rights. During the second quarter, the Group has received 83 authorized patent notices (61 invention patents, 5 utility model patents and 17 apparel design patents) and filed 150 new patent applications (143 invention patents, 3 utility model patents and 4 apparel design patents). During the review period, the Group has also obtained 82 invention patent approvals and has filed 263 new invention patent applications. It also obtained 7 utility model patents and made 3 utility model patent applications. Cumulatively, the Group has obtained 848 invention patent approvals, 30 utility model patents and 109 apparel design patents.

Prospects
The main purpose of the government’s efforts to deepen medical insurance reform is to maintain fundamental benefits and expand coverage. Going forward, adjustments to the categories and prices in the NRDL and Essential Drug List are expected to cover drugs in all categories, and reducing the price of medicines through centralized drug procurement will become a normal practice. The launch of the total amount control payment policy such as payment categorized under Diagnosis-Related Groups and the medical representative registration system will further increase the difficulty of marketing in the pharmaceutical industry. The Consistency Evaluation of injections will accelerate the elimination of uncompetitive generic drugs manufacturers and drive the transformation of generic drug manufacturers boasting R&D capability to develop new medicines. The new drug evaluation and approval mechanism encourages innovation and speeds up the introduction of new medicines. Enterprises with strong innovation and R&D capabilities and diversified market operation models will be able to enjoy greater advantages.

Observing the government’s active promotion of the “Internet + healthcare” policy, the trial launch of initial medical consultation via the Internet in some of the provinces and cities and medical insurance payment relating to Internet healthcare, the Group will pay close attention to the impact of these initiatives on the medical model and modes of marketing in the pharmaceutical industry, as well as explore related opportunities.

About Sino Biopharmaceutical Limited (HKEX:1177)
Sino Biopharmaceutical Limited is a leading, innovative R&D driven pharmaceutical conglomerate in the PRC. Its business encompasses a fully-integrated chain which covers an array of R&D platforms, a line-up of intelligent production and a strong sales system. The Group’s products have gained a competitive foothold in various therapeutic categories with promising potentials, comprising a variety of biopharmaceutical and chemical medicines for treating liver diseases, tumors, orthopedic diseases, anti-infections and respiratory system diseases.

Sino Biopharmaceutical is a constituent stock of the following indices: MSCI Global Standard Indices – MSCI China Index, Hang Seng Index, Hang Seng Index – Commerce & Industry, Hang Seng Composite Index, Hang Seng Composite Industry Index – Consumer Goods, Hang Seng Composite LargeCap Index, Hang Seng Composite LargeCap & MidCap Index, Hang Seng China (Hong Kong-listed) 100 Index, Hang Seng Stock Connect Hong Kong Index and Hang Seng China (Hong Kong-listed) 25 Index. Sino Biopharm was ranked as one of “Asia’s Fab 50 Companies” by Forbes Asia for three consecutive years in 2016, 2017 and 2018.

Analogue Holdings Limited Announces 2020 Interim Results

Strives for Innovative Development and Overseas Expansion for Sustainable Business Growth

Analogue Holdings Limited (“Analogue” or the “Company”, together with its subsidiaries collectively the “Group”) (stock code: 1977), a leading electrical and mechanical (“E&M”) engineering service provider in Hong Kong with operations in Macau, mainland China and United States, today announced the interim results for the period ended 30 June 2020 (“the Period” or “1H2020”), demonstrating sustainable business growth under the adverse market situation. During the Period, despite the challenging macro-environment due to the COVID-19 pandemic, the Group’s total revenue rose by 17.4% to HK$2,441.1 million year-on-year, with the revenue growth across all business segments, namely Building Services, Environmental Engineering, Information, Communications and Building Technologies (“ICBT”), and Lifts and Escalators. The overall maintenance contracts rose by 39.1%. Gross profit increased by 11.6% to HK$407.4 million, with gross profit margin at 16.7%. Profit attributable to owners of the Company reached HK$106.9 million. The Board has proposed an interim dividend of HK3.82 cents per share, representing a dividend payout ratio of 50%.

Highlights
– Total revenue increased by 17.4% to HK$2,441.1 million
– Profit attributable to owners of the Company reached HK$106.9 million
– Satisfactory order intake in 1H2020 valued at HK$2.6 billion
– Record high value of outstanding contracts in hand amounted to HK$10.8 billion, up 21.4% year-on-year

In 1H2020, the Group was awarded 155 tenders at a value totalling approximately HK$1.9 billion. All four business segments achieved a record high value of outstanding contracts in hand, including maintenance works, contracting works and sales of goods, amounting to approximately HK$10.8 billion, up by 21.4% compared to the same period last year. The Group has also secured a total order intake of HK$2.6 billion.

Dr Poon Lok To Otto, Chairman and Executive Director of Analogue Holdings Limited, said, “The first half of 2020 saw some very challenging times with the COVID-19 pandemic stifling economic activities worldwide. We are pleased to see that our tremendous efforts put into businesses had achieved reward with an order book of record high amount. During the Period, the Group was dedicated to improving the maintenance business which is less susceptible to the ups and downs in the economic cycle and construction cycle of large contracting projects, and thus able to provide a stable income stream. We will adhere to pursuing the New technology, New Market and New Business Model strategies to capture new orders and market opportunities, while strengthening our leading position in the market to fuel sustainable growth of the Group.”

During the Period, revenue of the Building Services segment rose by 4.7% year-on-year to HK$1,350.5 million. Value of outstanding contracts in hand increased by 19.7% year-on-year to HK$6,028.5 million as at 30 June 2020. The Group has continued to invest in developing innovative and new technologies for applications. Leveraging its integrated Building Information Modelling (“BIM”) technology, the Group was able to develop prefabrication and modular construction for E&M works. Its proprietary ATAL Building Services Prefabrication & Modularisation Construction Technology (“ABSPM”) has been adopted in the Fu Shan Public Mortuary project which is making good progress with prefabrication and modular units in the production stage. Modular Integrated Construction (“MiC”) was adopted for the first time in the InnoCell project for the Hong Kong Science and Technology Parks, which is expected to be completed by the end of 2020. Other upcoming contracts will continue to adopt similar innovative construction methods to enhance safety, quality and productivity of the projects.

Environmental Engineering segment recorded a revenue of HK$498.8 million during the Period, representing a year-on-year growth of 10.8%, with value of outstanding contracts in hand at HK$2,068.1 million as at 30 June 2020. The Group won six contracts in mainland China to upgrade existing plants already using its technologies to comply with the new environmental standards in the country. A sewage treatment project was also secured in Vietnam, the second of such projects undertaken outside Hong Kong and mainland China. The Group also participated in establishing a new standard of advanced sewage treatment called “Fenton Oxidation Process for wastewater treatment” included in the environmental protection standards of the PRC. This achievement will open the Group to more business opportunities for providing services to high concentration organic wastewater treatment facilities.

During the Period, the ICBT segment recorded a revenue of HK$241.3 million, up 11.9% year-on-year. Value of outstanding contracts in hands reached HK$887.8 million, representing an increase of 35.5% year-on-year. Analogue actively promoted a self-developed Cloud-based AI Energy Management Platform to the market. This monthly subscription platform has caught the eyes of many reputable clients, some of whom have already placed orders while others are discussing further orders. The Group also actively promoted intelligent transport and has received its first order on Automated Guided Vehicular (“AGV”) smart parking system and has progressed to the installation stage. The Group is also pursuing Free Flow Tolling, Electronic Road Pricing and other intelligent transport business opportunities.

Leveraging the highest safety and quality performance ratings among the Lift and Escalator Contractors by the Hong Kong Electrical and Mechanical Services Department (“EMSD”), the Lifts & Escalators segment continued to see huge growth in order intake. The segment recorded a revenue growth of 183.8% to HK$350.6 million during the Period, with value of outstanding contracts up 345.6% to HK$1,784.4 million. In 1H2020, the Group received the second order from Hong Kong Housing Authority (“HKHA”), the single largest customer in the lift market in Hong Kong, after the first order won in 2019. Furthermore, new agreements were signed with distributors in Eurasia and Eastern Europe regions. The Group will continue to actively pursue overseas markets and support its overseas distributors in bidding for projects, including metro or railway tenders in South Korea, Australia and Mexico. In March 2020, the Group entered into an alliance with Transel Elevator & Electric Inc., (“TEI”), one of the largest independent lift and escalator companies in New York, United States. Going forward, the Group will explore other promising opportunities of overseas acquisitions.

Dr Otto Poon concluded, “The second half year is expected to remain under the cloud of COVID-19. Nevertheless, we remain confident in the Group’s capability to harness opportunities amid adversity, particularly as there remain a variety of new prospects from both the public and private sectors. On top of striving for organic growth by constantly taking our technologies and skills to higher levels, we see merger and acquisition of businesses with strengths complementary to our own as an effective way to quickly grow our business. This together with identifying partners and joint venture opportunities for the different business segments, they will enable the Group to widen the scope and geographical footprint of its business. With eyes set on fortifying our market leadership and maximising return to shareholders, we will continuously invest in innovation and technology, process improvement and talent development, so as to heighten productivity and competitiveness for seizing new business opportunities.”

For further details of the 2020 Interim Results, please refer to the announcement that has been filed with The Stock Exchange of Hong Kong Limited.
https://doc.irasia.com/listco/hk/analogue/interim/2020/int.pdf

About Analogue Holdings Limited
Established in 1977 and headquartered in Hong Kong, the Group is a leading E&M engineering service provider in Hong Kong with operations in Macau, mainland China and United States. The Group provides multi-disciplinary and comprehensive E&M engineering and technology services in different segments, including Building Services, Environmental Engineering, ICBT and Lifts & Escalators to a wide spectrum of customers from public and private sectors. The Group also manufactures and sells Anlev lifts and escalators internationally and owns 49% equity interests of Transel Elevator & Electric Inc., one of the largest independent lifts and escalators companies in New York, the United States. The Group’s associate partner, Nanjing Canatal Data Centre Environmental Tech Company Limited (603912.SS), is specialised in manufacturing of precision air conditioners.

Greenland Hong Kong records 24% year-on-year growth in core profit and is getting on track of high-quality growth

On the morning of 28 August 2020, Greenland Hong Kong Holdings Limited (stock code: 337.HK) held an online interim results conference in Shanghai, which was attended by Mr, Chen Jun (Executive President of Greenland Group and the Chairman of the Board and Chief Executive Officer of Greenland Hong Kong), Mr. Gu Minqi (Vice President), Mr. Chen Zengli (Assistant President) and Mr. Lei Yu (Secretary to the Board).

In the face of the sudden outbreak of COVID-19 in the first half of the year, Greenland Hong Kong actively responded to the state’s requirements for coordinated promotion of epidemic prevention and control and economic development, and took the initiative to implement precise and targeted policies. With the concerted efforts of all staff of Greenland Hong Kong, the Company managed to maintain a good growth momentum despite the adversity in the first half of the year. In particular, it recorded steady increase in major indicators of core profits, continued to optimize the layout of key projects and achieved great progress in industry collaboration, laying a solid foundation for completion of the annual goals and tasks.

Key performance steadily enhanced and debt structure continued to improve

During the first half of the year, the Company continued to record fast growth. In particular, its core net profit amounted to RMB646 million, representing a year-on-year increase of 24%; revenue amounted to RMB6,400 million, representing a year-on-year increase of 10%; gross profit amounted to RMB2,091 million, representing a year-on-year increase of 33%. Net profit attributable to the Company amounted to RMB650 million, and total assets reached RMB108,575 million, exceeding RMB100 billion for the first time. Despite the pressure from the pandemic, the Company maintained stable profitability with favourable momentum.

While continuously enhancing its profitability, the Company kept on optimizing the debt structure. Its net interest-bearing debt ratio was only 38%, maintaining at a relatively low level as compared with the industry peers. The existing interest-bearing debt balance was RMB16,750 million, of which 67% were long-term debts and 33% were short-term debts, and the weighted average interest rate decreased to 5.5%. At the same time, the Company continued to strengthen its cash flow control and collected 92% of its sales receivables in the first half of the year, thereby providing the Company with sufficient cash flows. Up to now, the Company’s cash on hand was RMB10,333 million, which was sufficient to cover short-term interest-bearing liabilities. The Company’s capital chain security has been continuously consolidated, and its anti-risk capability has also been further improved, providing strong support for the further development of the Company.

Focusing on in-depth development in key areas to strengthen sustainable growth drivers

In the first half of the year, Greenland Hong Kong focused on major projects and deepened inter-sector synergy in the Yangtze River Delta, Greater Bay Area, Beibu Gulf, Yunnan and other key areas, and a number of key projects with potential have been implemented successively. As of the date of the results announcement, the Company secured 13 new land parcels and achieved newly constructed gross floor area of 2.53 million sq.m. with a total worth of approximately RMB42.1 billion, an ownership ratio of 84% and an average floor price of RMB6,012 per sq.m. These projects are concentrated in core cities with dense population flows, rapid economic development and extremely competitive advantages, where the real estate market has gained strong support. Among these new projects, the projects to be delivered in the second half of this year is worth approximately RMB14,330 million, providing sufficient support to achieving the annual goal.

Up to now, Greenland Hong Kong has a total land reserve of approximately 22 million square meters in 26 cities across the country with a total of 70 projects. Over 70% of the total land reserve is located in the first- and second-tier cities and provincial capital cities, which has formed a balanced and deep layout in the core areas of the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the gateway areas of the Belt and Road and the Hainan Free Trade Zone and can fully support the Company’s development needs in the next 2 to 3 years.

Facilitating high-quality development through quality improvement and refined management

Greenland Hong Kong is committed to meeting people’s increasing needs for a better life by enhancing the value of its products and facilitating product upgrade through continuous refinement and improvement. By adhering to the concept of housing upgrade, Greenland Hong Kong combined arts and technology to upgrade the 8+X product series, and launched various popular IP products such as Greenland Loch Mansion in Taihu, Greenland Yejin Mansion in Yangzhou, Greenland Yushan World in Jiangyin and Greenland Ocean Masterland in Nantong, which attracted great market interest and attention. In addition, in the first half of 2020, Greenland Hong Kong was granted 16 domestic and overseas design awards for its projects. The Company also adhere to refined management. It established a data platform with focus on Greenland Hong Kong to implement information-based, systematic and visualized management of specific measures to reduce cost and enhance efficiency, thereby enabling refined management and control of the whole operation cycle and effectively reducing cost and enhancing efficiency. In the first half of 2020, the Company recorded gross profit margin of 33%, keeping it at a relatively high level among industry peers for many years in a row. Since its establishment seven years ago, Greenland Hong Kong’s gross profit margin grew from 27% to 33%, which reflected continuous and rapid improvement in the operation ability and profitability of the Company.

Supporting the main business with industry collaboration and fully upgrading the “Real Estate +” strategy

While continuing to develop and expand its main business of real estate, Greenland Hong Kong strived to build a real estate+ ecological chain, focusing on the coordinated development of comprehensive health, cultural tourism, cultural and educational sectors. The systems of comprehensive health industry have been continuously enriched and improved, and the “H1 health city” sector has gradually been carried out with seven companies related to the health industry introduced. Provectus Care Mansion upgraded the care standards to set a benchmark for high-end care. The large-scale cultural tourism projects of sports and health landed in Jinning, Kunming, creating a new benchmark for health and cultural tourism in Kunming. The high-end educational resources such as Shanghai Jiao Tong University’s Institute of Cultural and Creative Industry opened in the Greenland International Education Park to promote new models of industrial practice and talent training. Nanning 289 Shanghai Tiandi Commercial Plaza strived to create the most modern and high-quality urban living venue and build a very representative symbol of culture, business and tourism in Nanning, and was recognized as a national AAA grade tourist attraction. These successful commercial operations further enhanced the value of assets and created new growth drivers for the development of the Company.

Adopting self-driven innovative mechanism to stimulate the endogenous power of the Company

In the first half of 2020, Greenland Hong Kong carried out a series of mechanism innovation with focus on “project co-investment system”. Through the incentive mechanism that adopts the “one share one vote” structure and advocates equal rights and responsibilities, the Company aligned the interests of its shareholders, management members and frontline project teams, which greatly motivated the management members and frontline staff and improved their creativity and cohesiveness, thereby facilitating the development of the Company with their concerted efforts. In addition, as a state-backed real estate enterprise, the Company will actively explore the in-depth implementation of mixed ownership reform, continue to promote system and mechanism innovation, and establish a more market-oriented and professional operation system.

Moreover, Greenland Hong Kong made full use of its advantages in information technology and employed emerging technologies such as big data, artificial intelligence and cloud-based services to create a data driven digital management platform covering the entire life cycle of business, which enables online and real-time business management, thereby facilitating the strategic transformation from information technology (IT) management model to digital technology (DT) management model and further enhancing the management efficiency. Through innovation in governance mechanisms, we will continue to stimulate our endogenous development momentum.

Fulfilling corporate responsibilities to actively participate in public welfare and poverty alleviation

While focusing on its development, Greenland Hong Kong has also spared no effort to devote itself to charity and public welfare undertakings, actively fulfilling its corporate social responsibility and mission. Immediately upon the epidemic outbreak in the first half of the year, 2,846 employees of the Company spontaneously donated nearly RMB800,000 in one day, and it also purchased epidemic prevention materials worldwide to support front-line work. We supported the Greater Bay Area in the fighting with the epidemic, assisting farmers and industrial poverty alleviation, and we stood with our country and the people to get through such bad times. We launched the Red Jacket Village Children’s Charity Program to pass on the charity of property owners, customers, employees and their families to left-behind children in poor and mountainous areas. Greenland Hong Kong has fulfilled its corporate mission of “mission-driven, considerate and humane” with practical actions.

Mr. CHEN Jun, the Executive President of Greenland Holdings and the Chairman of the Board and Chief Executive Officer of Greenland Hong Kong, said at the press conference that “in the first half of the year, the COVID-19 epidemic has brought an unprecedented impact to China’s social and economic development, which put the real estate enterprises to the test with respect to their abilities in operation, profit making, risk resistance and long-term development. By taking targeted and proactive measures and putting great efforts in precise business planning, refined management, financial position improvement and system innovation, Greenland Hong Kong achieved stable growth in operating results, which reflected the powerful strength and great resilience of the Company. In the second half of the year, as the market gradually picks up, our previous layout and efforts will gradually pay off, and we are confident that we can keep the target set at the beginning of the year unchanged. We will focus on resources, regions and key projects to strive for steady growth in core performance. We will continue to optimize the debt structure, improve the cash flow position and enhance our ability to resist risks. We will persistently strengthen inter-sector synergy, deepen the overall upgrade of the comprehensive health, cultural tourism, cultural and educational industries, continue to provide consumers with better life scenarios and better lifestyles, as well as continuously promote the high-quality and healthy development of the Company.”

About Greenland Hong Kong Holdings Limited
Greenland Hong Kong Holdings Limited (337.HK) is a subsidiary of Greenland Holdings, one of the top 500 companies in the world. Ever since its establishment 27 years ago, Greenland Holdings has created a diversified development pattern of “focusing on the development of real estate market and placing equal stress on Big Infrastructure, Big Finance, Big Consumption, medical and healthcare and scientific innovation” with a global presence. By adhering to the development strategies of capitalization, popularization and internationalization, Greenland Holdings has secured its market presence in more than 100 cities of domestic and overseas countries such as China, the United States, Britain, Germany, Australia, Canada, South Korea, Thailand and Malaysia. Leveraging Greenland Holdings’ mature brand image, rich resources, large scale and system, advanced management and passionate corporate culture, Greenland Hong Kong will comprehensively consolidate the existing assets and fully utilize the advantages of the capital platform in Hong Kong to establish itself as a benchmark in the Hong Kong capital market for mainland China real estate players.

Q P Group Announces 2020 Interim Results

Adjusted Net Profit Increases by 66.0% to HK$40.4 million
Web Sales Business Surges 50.7% to HK$68.0 million

Q P Group Holdings Limited (“Q P Group” or the “Group”; Stock code: 01412 ), the largest producer of paper-based tabletop games and related products and the second-largest producer of paper-based greeting cards in the PRC#, today announced its unaudited interim results for the six months ended 30 June 2020 (“6M2020” or “the Period”).

During the Period, despite the substantial economic challenges inflicted by Coronavirus Disease 2019 (“COVID-19”), the Group was able to achieve significant growth in net profit of 86.8%, which amounted to approximately HK$39.2 million (for the six months ended 30 June 2019 (“6M2019”): 21.0 million). Excluding listing expenses, adjusted net profit* attributable to equity holders of the Company increased by 66.0% to approximately HK$40.4 million (6M2019: HK$24.3 million). The Group recorded revenue of approximately HK$505.6 million (6M2019: HK$564.9 million). The decrease in revenue was mainly attributable to a decline in original equipment manufacturer (“OEM”) sales resulting from widespread economic disruption due to COVID-19 which affected several of its overseas customers. Basic earnings per share were approximately HK7.53 cents (6M2019: HK5.27 cents).

To share the Group’s achievements with shareholders, the Board has resolved to declare an interim dividend of HK2.0 cents per ordinary share.

Business Review

Following the outbreak of COVID-19 in January 2020, the Group suspended the operation of its factories in the PRC for a short period, which gradually resumed operation starting from February 2020. However, COVID-19 has adversely affected the Group’s OEM sales during 6M2020 as the business operations of several customers located in the United States of America (the “U.S.”) and Europe requested the postponing of product deliveries and freight forwarding companies were slow in resuming operations. The Group therefore recorded a decrease in OEM sales of 15.8% to approximately HK$437.6 million (6M2019: HK$519.8 million). Nevertheless, the Group’s web sales business yielded a remarkable increase in revenue of approximately 50.7% to approximately HK$68.0 million (6M2019: HK$45.1 million). In particular, the Group recognized a significant growth in sales from jigsaw puzzle products of approximately 480.2% year on year, through www.createjigsawpuzzles.com. The upsurge was due to the greater demand driven by the increased time spent on such products by people in the U.S. due to the social distancing measures imposed in the wake of COVID-19 in the U.S. that encouraged indoor activities.

Gross profit of the Group amounted to approximately HK$161.4 million, representing an increase of approximately 0.4% as compared with approximately HK$160.7 million for 6M2019, with gross profit margin increasing from approximately 28.5% for 6M2019 to approximately 31.9% in 6M2020. The rise was mainly attributable to an increase in proportion of web sales which has a relatively higher gross profit margin compared with OEM sales, the depreciation of the Renminbi against the Hong Kong dollar, and the reduction and exemption of corporate social insurance premiums for enterprises in the PRC during 6M2020.

Prospects

Adhering to its long-term business development strategies, the Group has been striving to continuously grow the web sales business and diversify sales in different markets. It is pleased to have witnessed some desirable outcomes, including the encouraging performance of the web sales business and the increases in both volume and proportion of sales in Europe in 6M2020. The Group will therefore continue devoting efforts and resources towards such strategies in order to further expand its customer base and increase revenue.

Expansion of manufacturing capacity outside the PRC remains a key strategy of the Group as well. Accordingly, the Group intends to set up a production site in Vietnam and acquire relevant machinery. The Group has already entered into a memorandum of understanding (“MOU”) with a vendor in June 2020, pursuant to which it intends to acquire certain land, factories, machines and assets located in Hai Duong Province, Vietnam. The acquisition will allow the Group to set up its own production site to tackle the impact arising from the Sino-U.S. trade conflict, which includes performing end-to-end production of its principal products for customers in the U.S. as well as to diversify operational risks.

Amid continuously weakening market sentiment since the COVID-19 outbreak, the Group considers business growth and financial sustainability as uncertainties in the second half of 2020. Compounding matters is the Sino-U.S. trade conflict. Since a significant portion of the Group’s revenue is generated from the U.S., its business performance is highly sensitive to Sino-U.S. trade ties. In response to the challenging business environment, the Group will continue to closely monitor market conditions, and has already implemented a series of cost control measures aimed at sustaining its performance.

Mr. Cheng Wan Wai, Founder, Chairman, Executive Director and CEO of Q P Group, said: “Although the global economic outlook appears sluggish, we are confident in the growth of the overseas tabletop games market, especially through online sales channels. The Group will employ additional staff and reinforce its resources for the web sales business segment in order to enhance our competitive advantage and further expand our customer base. In addition, the Group will continue to monitor the overall development of COVID-19, make timely adjustments in line with the changing market conditions and strive for better business performance, so that ultimately, the Group is able to maximize value for shareholders.”

About Q P Group Holdings Limited (Stock code: 01412)
Established in Hong Kong in 1985, Q P Group ranked first in the paper-based tabletop games and related products manufacturing market in the PRC, and second in the paper-based greeting cards manufacturing market in the PRC, both in terms of export value in 2018. It has established stable and long-term business relationships with major OEM customers including an international greeting cards publisher and multinational children educational products and toys brands. Its principal product categories include tabletop games, greeting cards, educational items and premium packaging, which are sold on an OEM basis or through online sales channels. It operates two key production sites in Dongguan and Heshan in the PRC.

The five major websites are:
https://www.makeplayingcards.com
https://www.boardgamesmaker.com
https://www.createjigsawpuzzles.com
https://www.printerstudio.com
https://www.gifthing.com

For more information, please visit: https://www.qpp.com/

5G Dark Horse — UNISOC Breaks the Siege

In June, Counterpoint Research released “Cellular Technology Transitions and Potential for SoC Players”. The report puts forward that the 5G wave is an inevitable trend and the global baseband market sales will exceed $38.7 billion by 2024. The global handset baseband manufacturers have a unique advantages in the future 5G network transition process.

According to the report, 5G handset shipments are expected to reach 1.16 billion units in 2024, with a CAGR of 137%, accounting for 70% of total handset shipments. From the perspective of chip suppliers, 5G chips are more complex and with higher threshold. At present, independent chip suppliers are still dominated by Qualcomm, MediaTek and UNISOC.

The research points out that Qualcomm is offering an end-to-end portfolio from SoC, modem, complete RF Front End (RFFE) to antenna supporting both sub-6GHz to mmWave. This portfolio is ahead of its competitors from a feature-set to a commercial availability perspective. It has captured more than half of the 5G market share. MediaTek is also ramping up its Dimensity 5G series.

And another chip supplier, UNISOC announced its first 2G/3G/4G/5G multi-mode modem V510 at MWC 2019. The 3GPP Rel.15 compliant 5G modem supports both standalone (SA) and non-standalone (NSA) networks, as well as 5G VoNR in SA mode, fitting well into the different stages of 5G development. Together with Hisense, UNISOC successfully commercialized its first generation 5G platform, with the UNISOC V510 powering the Hisense F50 smartphone.

Last November, UNISOC V510 modem was awarded the 2019 World Electronics Achievement Award, helping UNISOC further establish a solid foundation as a leading 5G solution provider.

In February this year, UNISOC unveiled its next-gen 5G SoC platform – the T7520. Utilizing a more advanced 6nm EUV process, which has 18% higher transistor density and 8% lower power consumption versus current 7nm processes, the T7520 offers compelling performance package with improved power consumption.

Its optimized multi-core design incorporates four Cortex-A76 and four Cortex-A55, a Mali-G57 based GPU, an upgraded NPU, as well as enhanced multimedia processing units to enable capabilities of 100MP and multicamera processing, up to 120Hz refresh rate and multi-screen displays.

The T7520 also showed significant improvement in terms of 5G experience, with the support of 5G NR TDD+FDD carrier aggregation, LTE and NR spectrum dynamic sharing, and uplink and downlink decoupling. Importantly, with its innovative 5G super uplink technology, the T7520 can enhance coverage by more than 100%, increase uplink speeds by up to 60% and improve peak downlink speeds to more than 3.25Gbps under SA mode. All of these advanced features make the T7520 highly competitive with mainstream platforms targeting high-spec smartphones.

In addition, Counterpoint also points out in the report that 5G not only sets off a wave of smartphone upgrading, but also brings great opportunities in some segments that are easily ignored by the industry. For details of the report, please refer to the Counterpoint website. Chinese and English versions are available for download at https://tinyurl.com/y5rnrnzl. (https://www.counterpointresearch.com/cellular-technology-transitions-potential-soc-players/)

Media Contact:
UNISOC Technologies Co., Ltd
Miranda Wu – UNISOC PR Team
E-mail: mengran.wu@unisoc.com
Website: http://www.unisoc.com

Samtrade FX Signs Sponsorship Deal with EFL Team Cardiff City FC

Global trading platform Samtrade FX has inked a sponsorship deal with EFL Championship team Cardiff City Football Club (“Cardiff City FC”), also known as the Bluebirds, for two seasons, starting with the current 2020/2021 season. The sponsorship further marks Samtrade FX’s expansion into the European market.

As Cardiff City FC’s Official Global FX Trading Partner, Samtrade FX will have its logo, branding, and corporate colours displayed prominently on Cardiff City FC jerseys, as well as on stadium big screens and pitch side LEDs during matches.

Samtrade FX founder and Chief Executive Officer, Sam Goh, commented on the partnership, “We were motivated to partner with Cardiff City FC due to our common vision and ethos – a passion for excellence and innovation. By partnering with a football club, we are also hopeful that our first sporting sponsorship will bring about unique experiences for our clients, partners and supporters around the world.”

Mr Goh further elaborated, “This partnership is a milestone for our platform and a further stride in our global growth strategy. With our expansion into the European market, we are closer to our goal of being at the forefront of the global financial services industry.”

Speaking about the partnership, Cardiff City FC Chief Executive Officer and Executive Director Ken Choo said, “We’re thrilled to be working with Samtrade FX. The company has built up a proud reputation in its field across the world since being founded in 2015.”

“We would like to thank them for choosing to partner with the Bluebirds and very much look forward to welcoming them to Cardiff City Stadium in the near future.”

Based in the Welsh capital city, Cardiff City FC is known for the importance it places on the support of its fans, as exemplified by its social media hashtag #CityAsOne that sums up this notion of togetherness. The Bluebirds are the only non-English side to ever lift the prestigious FA Cup.

Samtrade FX places a similar emphasis on community, as encapsulated by its vision – “for traders, by traders”. The online foreign exchange (“forex”) trading brokerage was founded in 2015 with the clear objective of providing traders with safe, easy, and affordable access to foreign exchange markets. With a network of regional presence in Malaysia, Indonesia, Vietnam, Thailand, as well as Shanghai, the brokerage has progressively expanded its operations since its establishment.

Samtrade FX also recently won “Best Trading Platform, Asia”, “Best Forex Introducing Broker, Asia” and “Best FOREX ECN/STP Broker” at The London Trader Show 2020, which speaks to its strong reputation and credibility as recognised by the industry’s top panel of experts and retail traders from around the world. Its exciting upcoming promotions can be found via its website at www.samtradefx.com.

ABOUT SAMTRADE FX

Samtrade FX is an online trading brokerage that provides forex trading and other related services. It was founded with the objective of providing traders with safe, easy, and low-cost access to foreign exchange markets. Samtrade FX’s founders and partners are all traders themselves and have extensive trading experience in forex and contract for differences trading. Its Advisory Board includes knowledgeable and experienced professionals who are able to provide clients with unrivalled professional advice.

Samtrade FX is incorporated in Saint Vincent and the Grenadines under registered number 25290 IBC 2019 by the Registrar of International Business Companies, and is registered by the Financial Services Authority of Saint Vincent and the Grenadines to carry on the business of dealing in securities as a Principal. Samtrade UK International Limited is an appointed representative registered with the Financial Conduct Authority, with FSR Number 929921.

Media Contact
Charles Ng
charles.ng@samtradefx.com

Lee’s Pharm Announces 2020 Interim Results

Profit Attributable to the Owners of the Company Increased by 153.3%
Actively Develop New Products
Reform and Replenish the Sales Organisation

Lee’s Pharmaceutical Holdings Limited (“Lee’s Pharm” or the “Group”, Stock Code: 950), an integrated research-driven and market-oriented pharmaceutical group in China, today announced its interim results for the six months ended 30 June 2020 (the “period under review”).

The Group’s revenue for the second quarter of this year was HK$283,732,000, represented a decrease of 12.6% over the same quarter last year but a sequential increase of 3.9% over the first quarter of 2020. Revenue for the first half of 2020 was HK$556,716,000, represented a decrease of 8.4% over same period last year when Renminbi currency has been weakened by 5.1% year on- year. Sales of licensed-in products accounted for 60.9% (1H 2019: 55.4%) of the Group’s revenue while sales of proprietary and generic products contributed 39.1% (1H 2019: 44.6%) of the Group’s revenue.

Drugs for surgical use such as Livaracine and Slounase have been affected most as the hospitals were still inclined to postpone elective surgeries amid novel coronavirus (“COVID-19”) resurgence fears during the quarter under review but began to show improvement on a quarter-to-quarter comparison. The sales of Livaracine and Slounase dropped 31.8% and 23.5%, respectively, during the period under review as compared to the same period last year, and were improved from decrease in the first quarter of 33.1% and 34.8%, respectively. Yallaferon was categorised by the Department of Economic and Information Technology of Anhui Province as one of the critical materials for the COVID-19 pandemic prevention and control during the period under review, and the sale thereof was comparatively less affected, declined by 13.4% as compared to the same period last year. On the other hand, the demand for chronic disease medications remains intact during the period under review. Revenue of Carnitene and Zanidip recorded a growth of 18.6% and 1.6%, respectively, and revenue of Ferplex decreased by 14.0%. The timely approved generic Treprostinil Injection in March 2020 has instantly made contribution to the revenue since the end of first quarter of this year and partially compensated for the loss of revenue following the termination of distribution of Remodulin by end of 2019.

Following the slowdown in the first quarter amid COVID-19 pandemic, the Group’s research and development (“R&D”) activities for new drugs have been resumed gradually in the second quarter and HK$151,136,000 was spent in R&D activities during the first half of 2020, representing 27.1% to the corresponding revenue during the period under review.

During the period under review, the product license of Zanidip which would be originally expired on 31 December 2021 was early terminated in return for compensation. Given the availability of several generic lercanidipines in China, the Group believes that the early termination of this product at this juncture not only brings short term financial benefit but also paves the way for the Group to launch its generic version in the near future for long term prosperity. Net profit attributable to the owners of the Company in the first half of 2020 was HK$96,982,000, increased by 153.3% over the same period last year.

Dr. Benjamin Li, Executive Director and Chief Executive Officer of the Group, said, “Given the backdrop of the volatile global macro environment, 2020 was the year not without its challenges. The market was in a slowing growth situation but inflationary pressure in raw material costs, manufacturing and administrative overhead remained high during the period under review. Together with the tensions between China and the U.S. attained an all-time high and the negative impact arising from the outbreak of a COVID-19 persisted, the business operating environment was stayed tough in China during the period under review. The Group continued to impose stringent cost-control measures in order to mitigate cost pressures in other areas. The Group has allocated more resources to the sales and marketing team during the period under review in order to explore new distribution channels and to prepare for the roll-out of new products.”

From the aspect of manufacturing facilities and production capabilities, following the completion of the upgrading of facilities for APIs such as Nadroparin Calcium, there are more upgrading works in progress in Hefei site such as the upgrading of Yallaferon production facilities and pre-filled syringe production facilities in order to improve the capacity and efficiency. In Nansha site, the manufacturing of Tecarfarin tablet batch samples for GMP application and clinical trials is actively moving forward in good progress. In addition, the three new manufacturing facilities in the Nansha premise for Staccato fentanyl, oral cytotoxic drugs and continuous glucose monitor have been erected. Clinical sample of Staccato fentanyl for inhalation for the treatment of cancer breakthrough pain has been successfully produced and the submission of Investigational New Drug (“IND”) will be made in September 2020. The equipment installation for the production of oral cytotoxic drugs and continuous glucose monitor is ongoing and full commission is expected during the second half of 2020.

With respect to New Drug Application (“NDA”), the Group’s R&D pipeline includes over 60 projects from early-to late-stage development in various therapeutics areas. The Group’s commitment to R&D persisted and measurable progress has been made during the period and up to date. The Group’s applications for Import Drug License (“IDL”), namely Trazodone, INOmax, Zingo and Teglutik, were under review by the Centre for Drug Evaluation (the “CDE”). The New Drug Application (“NDA”) of INOmax has been granted priority review for pediatric orphan disease by China’s National Medical Products Administration (“NMPA”). The Group’s applications for Abbreviated New Drug Application (“ANDA”), namely Fondaparinux, Sodium Phenylbutyrate Granule, Sodium Phenylbutyrate Tablet and Bimatoprost, were also in good progress during the period under review and up to date.

In the area of ophthalmology, China Ophthalmology Focus Limited (“COPFL”), the Company’s indirect non-wholly owned subsidiary, has agreed the Phase III protocol of the Cyclosporine A Ophthalmic Gel trial with CDE for the treatment of dry eye in China. The application of ethical clearance is currently in progress and the pivotal Phase III study is expected to initiate patient recruitment in September 2020. In-licensing strategy is the Group’s preferred mode of its business development, and here are two in-licensing deals which involve three new ophthalmic products. On 25 June 2020, Zhaoke (Hong Kong) Ophthalmology Pharmaceutical Limited (“ZKO”), an indirectly non-wholly owned subsidiary of the Company, and PanOptica, Inc. (“PAN”), a U.S.-based ophthalmology focused pharmaceutical company developing a topical eye drop for the treatment of sight-threatening eye diseases caused by abnormal or leaky blood vessels, entered into a binding letter of intent for exclusive rights to develop, manufacture and commercialise PAN-90806 in China, Hong Kong, Macau, South Korea and other countries of Southeast Asia. On 24 July 2020, following the binding letter of intent signed in May 2020, ZKO, and IACTA Pharmaceuticals, Inc. (“IACTA”), a U.S.-based ophthalmology focused pharmaceutical company developing drugs with novel mechanisms of action that treat diseases in areas of significant unmet medical need, entered into a license agreement for exclusive rights to develop, manufacture and commercialise IC-265 and IC-270 in China and other countries of Southeast Asia.

One of the Group’s strategic investments has reached a milestone during the period under review. On 20 May 2020, Windtree Therapeutics, Inc. (“Windtree”) has successfully uplisted its common shares from the OTC Markets to the Nasdaq Capital Market after the completion of financing via public offering. The proceeds therefrom provide additional resources for Windtree to advance its clinical studies and create value.

Regarding corporate development, in view of the spread of the COVID-19 worldwide and the demand for masks has surged significantly, Powder Pharmaceuticals Incorporated, an associated company of the Group, is currently operating two fully automatic face mask production machines in its cleanroom which meets the ISO-8 class 100,000 requirements. To date, the production volume of masks has been ramped up to approximately 40,000 pieces daily, and is selling online at vmask.com.hk.

Looking forward, Dr. Benjamin Li, Executive Director and Chief Executive Officer of the Group said, “the tensions arising from inflationary, the challenging situations may continue for an extended period, and the Group foresees the tough environment will be persisted throughout this year. Nevertheless, the Group will continue to stay focus on its new drug development, sales organisation reform and expansion, and cost containment. With the good progress is being made on the development of new drugs, evidenced by the encouraging results from clinical trials achieved and the number of NDA approvals obtained during the period under review and up to date, the Group is confident that all these works to be done will eventually drive growth therefor. In addition, with the increasing maturity of the Chapter 18A regime introduced by The Stock Exchange of Hong Kong Limited since 2018 which support biotech companies to go public and raise capital in their pre-revenue stage, the Group is actively considering a possible spin-off and separate listing of its ophthalmology project in the near future. The Group believes that the spin-off of R&D arms, such as ophthalmology and oncology projects, into standalone companies will in turn drive the market to recognise the value of its robust R&D pipelines. Beyond the present headwinds, the Group will continuously monitor the changing situations and make timely responses and adjustments as needed. As always, the operation and management team will continue to make its unremitting efforts to achieve additional uplift on the performance in the upcoming quarters.”

About Lee’s Pharmaceutical Holdings Limited
Lee’s Pharm is a research-based and market-oriental biopharmaceutical company listed in Hong Kong with over 25 years’ operation in China’s pharmaceutical industry. It is fully integrated with solid infrastructures in drug development, manufacturing, sales and marketing. It has established extensive partnerships with over 20 international companies and currently has 23 products in the market place. Lee’s Pharm focuses on several key disease areas such as cardiovascular, woman health, pediatrics, rare diseases, oncology, ophthalmology, dermatology, obstetrics and urology. Lee’s Pharm more than 60 products under different development stages stemming from both internal research and development as well as from the licensing of development, commercialisation, and manufacturing rights from various United States, European and Japanese companies. The mission of Lee’s Pharm is to become a successful biopharmaceutical group in Asia providing innovative products to fight diseases and improve health and quality of life.

Additional information about Lee’s Pharm is available at www.leespharm.com.

Sihuan Pharmaceutical Launched an Equity Incentive Plan to Inject New Impetus for the Company’s Growth

Sihuan Pharmaceutical Holdings Group Ltd. (HKEX: 0460 “Sihuan Pharmaceutical” or the “Company”, together with its subsidiaries, the “Group”) announced that on 26 August 2020, the Company granted a total of 94,656,000 share options (the “Share Options”) to the eligible participants of the Company (the “Grantees”) to subscribe for a total of 94,656,000 ordinary shares of HK$0.01 each in the share capital of the Company (the “Shares”) pursuant to the share option scheme of the Company adopted on 24 October 2017, subject to the acceptance by the Grantees.

Among the total of 94,656,000 Share Options granted, 19,000,000 Share Options were granted to five Directors, and the remaining 75,656,000 Share Options were granted to eligible participants who are employees of the Company. The exercise price of the share options granted HK$0.972 per share, closing price of the shares on the date of grant was HK$0.900 per share, average closing price of the shares for the five business days immediately preceding the date of grant was HK$0.972 per share. Validity period of the options start from 26 August 2020 to 25 August 2030 (both days inclusive).

About Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001, Sihuan Pharmaceutical is a pharmaceutical group with 21 subsidiaries and integrated R&D, production and marketing and sales capabilities. Because of the continuing efforts over the past decade, Sihuan Pharmaceutical has formed a R&D platform with over 1,000 researchers conducting more than 110 pharmaceutical research projects currently. More than 300 patents on innovative drugs were granted in China and over 80 are PCT patents, covering pipeline projects including important areas of diabetes, oncology, anti-infectives and non-alcoholic steatohepatitis etc.

For more information about Sihuanpharm, please visit the company website https://www.sihuanpharm.com/.

Legend Holdings’ Revenue Stood at RMB184.866 billion in 1H2020, Capital Operation Continued to Advance

Legend Holdings Corporation (“Legend Holdings” or the “Company”; Stock Code: 3396.HK) announced its unaudited condensed consolidated results for the six months ended 30 June 2020 (the “Reporting Period”) on 27 August 2020. During the Reporting Period, the revenue of the Company increased by 3% year-on-year to RMB184.866 billion; the net profit attributable to equity holders amounted to RMB637 million, representing a yoy decrease, mainly due to the impact from the COVID-19 epidemic, and the large-amount impairment provision for CAR Inc. and specific financial investment.

In the first half of 2020, in proactive response to the significant challenge presented by the epidemic and the increasingly complex international environment, Legend Holdings exhibited considerable resilience in business operations as a whole. The revenue of the Company recorded growth for seven consecutive reporting periods, and some of strategic investments businesses grew steadily. The net profit attributable to equity holders from the financial investments businesses recorded RMB1.427 billion, representing a yoy increase of 6%. During the Reporting Period, the Company’s various platforms continued to promote capital operations and make satisfactory headway.

Facing the further increase of instability and uncertainty in the macro environment, on the one hand, Legend Holdings proactively evaluated and responded to the effects of the epidemic, promoted invested companies to take the initiative to develop new products and services, and carried out dynamic risk assessments, etc. While strictly complying with relevant regulations, the Company proactively resumed work and production in an orderly manner to ensure all staff members’ employment, health and safety, and proactively fulfilled corporate social responsibilities to contribute to the fight against the epidemic at the same time. On the other hand, according to the established plan, Legend Holdings promoted the formulation of the new strategy in an orderly manner. The Company thoroughly reviewed the past business performance, to objectively and prudently assess the changes in the internal and external environments, and to proactively face uncertainties head on.

Strategic investments businesses remain steady

In terms of IT segment, Lenovo proactively responded to the impact of the epidemic, captured the development trend of the industry and yielded satisfactory performance. As of 30 June 2020, IT segment’s revenue increased to RMB168.273 billion, mainly benefiting from the growth of personal computer and smart device business and data center business, and its net profit attributable to equity holders amounted to RMB566 million.

As for advanced manufacturing and professional services, the operating results rose amid the headwinds, its revenue recorded RMB2.768 billion, and its net profit attributable to equity holders amounted to RMB370 million. As an enterprise for securing the “lifeline”, Eastern Air Logistics, made significant contributions to the global epidemic prevention and disaster relief and the resumption of work and production. After withstanding the challenge caused by the epidemic, EAL’s results recorded a yoy growth in the first half of 2020. Levima Group effectively resisted the impact of the epidemic, and the market shares of several segmented products continued to be at a leading level in the domestic market.

As for financial services segment, its overall operation was stable. The segment recorded revenue of RMB4.188 billion and net profit of RMB781 million. In the face of changes in the external environment, Legend Holdings proactively offered comprehensive support for its portfolio companies, which increased efforts to provide service for high-quality customers in the real economy and adopted a more prudent strategy in risk management and control field. The business model of “investment-loan linkage” adhered to by Zhengqi Financial has gradually shown results in the new round of capital market reform. The Operating revenue and net profit attributable to equity holders of Lakala Payment continued to increase. Banque Internationale a Luxembourg (BIL) delivered a resilient performance in the retail, corporate and wealth management business. BIL completed the acquisition of Sino Suisse Financial Group (Hong Kong) Limited to proactively explore innovative ways to support the construction of the Greater Bay Area. In addition, during the Reporting Period, Legend Holdings completed capital increase in Hyundai Insurance, becoming the important layout of the insurance industry. In the future, the company will join DiDi Chuxing and other shareholders to promote the transformation and upgrading of Hyundai Insurance to the field of insurance technology.

In terms of innovative consumption and services, the segment’s normal business operation was heavily hit by the epidemic; especially the regular operation of children’s education, transportation, dental care and other industries was greatly restricted. The segment’s revenue was RMB263 million. To proactively respond to adverse impacts, companies in the segment made a concerted effort to overcame prevailing difficulties, prevented and controlled the epidemic in strict accordance with the requirements of local governments, so as to ensure the health and safety of employees and customers, and support the epidemic prevention and control work. At the same time, the companies promoted the development of new products and services, maintained customer relations, developed new service scenarios, and proactively strove for various supports to alleviate the impact of the epidemic on business performance.

In agriculture and food segment, the Company recorded revenue of RMB8.964 billion. Golden Wing Mau, which operates the fruit business, ensured to maintain rapid growth in revenue by expanding its market investment and deepening the layout of production areas. Xinguojiayuan continued to carry out technological innovation and management model optimization, and its blueberry yield hit a new high. In the field of animal protein business, operations continued to be optimized to promote research and development of value-added products and expand diversified sales channels.

Financial investments businesses grew against the trend

In 2020, the global spread of COVID-19 exceeded market expectations. Combined with the continuous increase in uncertainties such as trade frictions, fluctuation in the secondary market was intensified. The Company’s associate funds and direct investment businesses faced increasing challenges. Financial investments businesses quickly launched digital management and resumed work, implemented project tiered management, and prepared for risk mitigation; at the same time, the businesses adopted more prudent investment strategies and more proactive post-investment management to reduce the adverse impact of uncertainties on funds under management.

Legend Star, an angel investment institution, managed a total of 7 funds with a total AUM exceeding RMB2.6 billion. Accumulatively, it has invested in 270 projects at home and abroad. During the Reporting Period, Legend Star invested in nearly 10 projects at home and abroad, covering artificial intelligence, biotechnology, medical equipment, new consumption and other segmented fields. Nearly 30 projects under management garnered the next round of financing, and 4 projects were exited. As of 30 June 2020, the 4th RMB fund had completed the 2nd round of closing.

Legend Capital, a private equity investment institution, managed a total of 23 funds, with a total AUM exceeding RMB50 billion. During the Reporting Period, the total amount of funds raised was RMB787 million; a total of 22 new project investments were completed, covering start-up stage and growing stage enterprises in the TMT and innovative consumption, healthcare, corporate services and intelligent manufacturing sectors. During the Reporting Period, Legend Capital fully or partially exited from 25 projects, contributing a cash inflow of over RMB1.3 billion for Legend Holdings. Up to now, 74 of the portfolio companies of Legend Capital have been successfully listed (excluding those listed on the NEEQS).

Hony Capital, a leading investment and management institution, managed a total of 12 funds, with the total AUM exceeding RMB80 billion. Currently, Hony Capital has covered PE, real estate, mutual fund management, hedge funds and innovation investment businesses. During the Reporting Period, the third property funds completed the first round of closing. Hony Horizon Fund Management Co., Ltd., a mutual fund management company specializing in secondary market investment and management business, managed five mutual funds. During the Reporting Period, Hony Capital proceeded with new investment projects in various business segments, made follow-on investments in existing projects progressively, and also actively exited projects, thereby contributing a constant and steady cash return to Legend Holdings.

Orderly promotion of capital operation

During the Reporting Period, Legend Holdings’ strategic investments and fund platforms of financial investments continued to promote capital operations. A total of 7 portfolio companies completed IPOs, 6 went through the approval of CSRC but were not listed during the Reporting Period, and at least 12 submitted IPO application materials.

In financial services segment, Sansure Biotech, an investment project of Zhengqi Financial in the biomedical field, successfully passed the approval of CSRC on 23 June 2020 for IPO on the SSE STAR Market, thus becoming the first “anti-epidemic stock”. Besides, Chemclin Diagnostic Corporation submitted its application for IPO on the STAR Market on June 8 and was accepted. In addition, ActBlue Co. Ltd. and Trina Solar Co. Ltd. in the green industry were also listed successfully. In agriculture and food segment, Golden Wing Mau was undergoing pre-listing tutoring, and Huawen Food’s A-share market IPO application for the SME Board was approved on August 21. At the same time, in advanced manufacturing and professional services segment, A-share IPO preparations of Levima Advanced Materials and EAL are in smooth progress.

Regarding financial investments, Burning Rock Biotech and Kintor Pharmaceuticals, invested by Legend Star, were listed on NASDAQ and HKEX, respectively, during the Reporting Period. Three of Legend Capital’s portfolio companies, namely UCloud, Cybrid Technologies, and Yanmade Tech, completed IPOs. In addition, QuantumCTek and Wireless Power Amplifier Module Inc. were also successfully listed in July 2020.

As the global macro environment is going through an overhaul, and China’s economy is entering a new phase of high-quality development, Legend Holdings will proactively face uncertainties and strive to contribute its own strength and achieve long-term development as China promotes innovation and technology, and progresses towards creating a new development pattern where domestic and foreign markets can boost each other, with the domestic market as the mainstay.