Author: Charles Chua

Sino Biopharm Announces 2019 Annual Results

Revenue Climbs 16.0% to RMB24.23 billion Underlying Profit Up 10.2% to RMB3.13 billion;
Achieves an outstanding R&D performance and obtains 28 production approvals

Sino Biopharmaceutical Limited (“Sino Biopharm” or the “Company”, together with its subsidiaries, the “Group”) (HKEX: 1177), a leading, innovative research and development driven pharmaceutical conglomerate in the PRC, has announced its financial results for the year ended 31 December 2019 (“the year”). The Group’s overall results for the year continued to show considerable growth. The share of revenue contributed by new products in the Group’s total revenue also increased notably, demonstrating its mature integrated capability in launching and promoting innovative products.

Results Highlights
– A total of 28 products including Lenalidomide capsules, Abiraterone Acetate tablet and several indications of Anlotinib capsules obtained the approval for drug registration granted by the National Medical Products Administration. Over 40% of these products are oncology drugs and the competitive edge of our oncology product line has been substantially enhanced. Some 19 products have passed (or are deemed to have passed) the Consistency Evaluation.
– Commanding a total investment of RMB3 billion and occupying an area of 520 mu, CT Tianqing’s new drug R&D and production base opened, significantly boosting the Group’s integrated strength in the biopharmaceutical area.
– Sino Biopharm ranked 42nd in U.S. magazine Pharm Exec’s “Top 50 Companies 2019”, as one of the only two Chinese companies on the list.
– Sino Biopharm garnered several awards at “The All-Asia-Executive Team 2019” held by Institutional Investor, and ranked 3rd among the “Honored Companies”.
– Sino Biopharm was the only Chinese pharmaceutical company named among Forbes’ “Asia 200 Best Over a Billion 2019”.
– The quality control study “Shortening the Lyophilization Cycle of Product ‘F'” presented by CT Tianqing, a subsidiary of the Company, won the International Quality Gold Award at the 44th International Convention on Quality Control Circles (ICQCC) held in Tokyo, Japan.
– At the “China ChemPharm Annual Summit 2019”, Sino Biopharm’s subsidiaries, namely CT Tianqing, Beijing Tide, NJCTT, Jiangsu CT Fenghai and CP Qingdao, were included in the Top 100 List of “Outstanding Enterprises and Outstanding Product Brands in China’s Chemical Pharmaceutical Industry 2019”. CT Tianqing again led the “Ranking of Top 100 R&D Capabilities of Chinese Chemicals Enterprises in 2019” and ranked 2nd in the “2019 Top 100 Enterprises in the PRC Pharmaceutical Industry – Comprehensive R&D Strength”.
– CT Tianqing ranked 16th and Beijing Tide ranked 41st in the list of the “2018 Top 100 Pharmaceutical Companies in China” released at the “2019 (36th session) National Pharmaceutical Industry Annual Information Conference”.
– Sino Biopharm ranked 1st among the “Top 20 Most Competitive Listed Chinese Pharmaceutical Companies” released at the “2019 China Healthcare Summit of Entrepreneurs, Scientists and Investors”, and at the same time also ranked 2nd in the first-tier category of “Top 100 Innovative Pharmaceutical Enterprises in China”.
– Eight new drug studies conducted by CT Tianqing were recognised as “National Major Innovative Drug Projects”. The number of drug studies approved was among the highest in the country.
– Chia Tai Tianqing Akeso (Shanghai) Biomedical Technology Company Limited, a joint-venture company invested jointly by CT Tianqing and Akeso Biopharma, was officially set up in Shanghai. The joint venture is engaged in the development of the differentiated tumor immunotherapy PD-1 antibody drugs.

Results
During the year, the Group recorded revenue of approximately RMB24.23 billion, representing an increase of approximately 16.0% over the last year. Profit attributable to the owners of the parent was approximately RMB2.71 billion, approximately 70.1% lower than that of the last year. Such year-on year decrease was only due to the absence of a substantial one-off gain on step acquisition recorded last year. Excluding the impact of the one-off gain on step acquisition and the annual amortization expenses of new identifiable intangible assets arising from the acquisition of 24% interests in Beijing Tide, as well as the unrealized net fair value losses on equity investments and financials assets, underlying profit attributable to owners of the parent amounted to approximately RMB3.13 billion, increased by approximately 10.2% as compared with the last year. Based on underlying profit attributable to the owners of the parent, the earnings per share were approximately RMB24.97 cents, 8.7% higher than the last year. The Group has maintained a strong financial position with cash and bank balances reaching approximately RMB11.91 billion at the year end.

The Board of Directors recommended a final dividend payment of HK2.0 cents per share. Together with the dividend of HK2.0 cents already paid in each of the first three quarters, the total dividends for the year amounted to HK8.0 cents (2018: HK8.0 cents).

Business Highlights
During the year, the Group has re-located more resources in strengthening R&D and focused its academic promotion on oncology drugs and other new products with less competition. Two new indications of Anlotinib capsules have been approved and subsequently achieved great sales success. Other oncology drugs including Yinishu, Yigu, Shoufu, Qianping, Saiweijian and a recently approved product, Yijiu, analgesic medicines including Flurbiprofen cataplasm, cardio-cerebral medicines including Kaina and Xijia, digestive system medicines including Aisuping, Getai and Deyou and anti-infectious medicines including Tianjie and Tianli all enjoyed rapid growth. Markets for infusion solution products including Fenghaina, Qingkeping and the newly-launched contrast agent product Qingliming also expanded, leading to fast growth in sales.

During the year, the Group achieved an outstanding research and development (“R&D”) performance and the Group obtained 28 production approvals and had 19 products passed Consistency Evaluation. Also, 23 products obtained clinical approval. The Group has made 25 new production applications and filed 19 new clinical trial applications. In addition, some 26 new applications for Consistency Evaluation have been accepted. The Group has obtained 83 invention patent approvals and filed 341 applications for invention patents. In addition, Tenofovir Disoproxil Fumarate tablet (Qingzhong) has obtained Marketing Authorization (MA) from the EU, marking a milestone for the Group to officially enter into the international mainstream market.

During the year, the sales performance of the Group’s major medicine categories are outlined below:

Hepatitis medicines
The sales of hepatitis medicines amounted to approximately RMB5,739.72 million, representing approximately 23.7% of the Group’s revenue.
— Tianqingganping enteric capsules sales amounted to approximately RMB525.04 million, an increase of approximately 22.5% against the last year.
— Tianqingganmei injections recorded sales of approximately RMB1,803.57 million, an increase of approximately 5.5% against the last year.

Oncology medicines
The sales of oncology medicines amounted to approximately RMB5,427.88 million, representing approximately 22.4% of the Group’s revenue.
— Sales of Saiweijian injections amounted to approximately RMB704.52 million during the review period, an increase of approximately 37.5% as compared with the last year.
— Sales of Yinishu tablets amounted to approximately RMB224.90 million, a significant increase of approximately 36.8% as compared with the last year.
— Sales of Shoufu tablets amounted to approximately RMB214.16 million, an increase of 26.6% as compared with the last year.
— Sales of new product Anxian capsules amounted to approximately RMB176.06 million.
— Sales of another new product Qianping injections amounted to approximately RMB166.75 million, a sharp increase of 125.7% as compared with the last year.

Cardio-cerebral medicines
The sales of cardio-cerebral medicines amounted to approximately RMB3,116.29 million, representing approximately 12.9% of the Group’s revenue.
— Sales of Yilunping tablets amounted to approximately RMB910.34 million, a year-on-year increase of approximately 16.2%.
— Sales of Tuotuo calcium tablets amounted to approximately RMB753.55 million, a year-on-year increase of approximately 14.8%.
— Sales of Kaina tablets amounted to approximately RMB513.07 million, an increase of approximately 25.1% as compared with the last year.

Orthopedic medicines
The sales of orthopedic medicines amounted to approximately RMB1,809.36 million, representing approximately 7.5% of the Group’s revenue.
— Sales of Gaisanchun capsules amounted to approximately RMB1,047.15 million, rising by approximately 4.6% as compared with the last year.
— Sales of Yigu injections amounted to approximately RMB315.05 million, a remarkable increase of approximately 68.8% against the last year.

Digestive system medicines
The sales of digestive system medicines amounted to approximately RMB1,529.55 million, representing approximately 6.3% of the Group’s revenue.
— Sales of Aisuping injection amounted to approximately RMB949.25 million, a significant increase of approximately 26.5% as compared with the last year.
— Sales of Getai tablets amounted to approximately RMB327.29 million, an increase of approximately 37.6% as compared with the last year.
— Sales of Deyou granule amounted to approximately RMB176.84 million, a remarkable increase of approximately 66.8% as compared with the last year.

Respiratory system medicines
The sales of respiratory medicines amounted to approximately RMB1,084.61 million, representing approximately 4.5% of the Group’s revenue.
— Sales of Tianqingsule inhalation powder amounted to approximately RMB627.43 million, an increase of approximately 24.3% as compared with the last year.

Anti-infectious medicines
The sales of anti-infectious medicines amounted to approximately RMB1,032.19 million, representing approximately 4.3% of the Group’s revenue.
— Sales of Tiance injections amounted to approximately RMB564.49 million.
— Sales of Tianjie injections amounted to approximately RMB308.10 million, an increase of approximately 37.5% against the last year.
— Sales of Tianli (Linezolid and Glucose) injections amounted to approximately RMB98.78 million, a significant increase of approximately 101.1% against the last year.

Others
The sales of others amounted to approximately RMB4,494.43 million, representing approximately 18.4% of the Group’s revenue.
— Sales of Debaian Cataplasm amounted to approximately RMB1,066.98 million, increased by approximately 42.4% against the last year.

R&D
During the year, the total R&D expenditure (including expensed off in the statement of profit or loss and recorded as development costs in the statement of financial position) amounted to approximately RMB2,651.53 million, which accounted for approximately 10.9% of the Group’s revenue.

The Group has continued to focus its R&D efforts on new hepatitis, oncology, respiratory system and cardio-cerebral medicines. During the fourth quarter, the Group was granted 9 clinical trial approvals, 9 production approvals, and 6 approvals for Consistency Evaluation, and made 6 clinical trial applications, 4 applications for Consistency Evaluation and 11 production applications. Cumulatively, a total of 486 pharmaceutical products had obtained clinical trial approval, or were under clinical trial or applying for production approval. Out of these, 34 were for hepatitis medicines, 204 for oncology medicines, 27 for respiratory system medicines, 27 for endocrine, 50 for cardio-cerebral medicines and 144 for other medicines.

The Group also emphasizes on the protection of intellectual property rights. It encourages its subsidiaries to apply for patent applications as a means to enhance the Group’s core competitiveness. During the fourth quarter, the Group has received 23 authorized patent notices (all were invention patents) and filed 83 new patent applications (77 invention patents, 1 utility model patents and 5 apparel design patents). Cumulatively, the Group has obtained 766 invention patent approvals, 23 utility model patents and 90 apparel design patents.

Prospects
Looking ahead to 2020, the implementation of measures including the launch of and adjustments to the New National Medical Reimbursement Drug List, realization of payment categorized under DRG, the Key Monitoring Drug List and performance evaluation of hospitals will speed up the adjustments to the products and overall industry landscapes, hence the turning point of the survival of the fittest gradually emerged in the industry. The implementation of new measures encouraging innovation will accelerate the approval and launch of innovative products. Leading local enterprises in the country will be confronted with more intense competition from multinational companies in terms of innovative products. Those companies like Sino Biopharm, which have strong innovative and R&D capabilities and continuously launch new products in the market, highlight their advantages. In addition to marketing more new products and consolidating its dominant position in the hepatitis and oncology small molecular drug sectors, the Group also places high value on the increasingly important treatment and market value of biopharmaceutical medicines and thus has adopted a comprehensive roadmap covering different facets from R&D to the production.

Also, in order to cope with the spread of the novel coronavirus around the world, the Group has maintained ample liquidity. As of 31 December 2019, its cash and bank balances amounted to approximately RMB11.91 billion, which is sufficient for withstanding any shocks that may result from abrupt changes in the economic and industry environments. Facing the fierce outbreak, the Group promptly made the decision in late January 2020 to issue zero coupon convertible bonds with a principal amount of EURO750 million. This move consequently generated more abundant funds for the Group. The Group will make good use of its capital and competitive advantages, to actively seek for high-quality acquisitions, investments and cooperation projects, to expand its core pharmaceutical business, as well as to comprehensively promote its greater healthcare development strategy, so as to lay the foundation for the Group’s rapid development in the next decade.

Stepping into 2020, 5G network and devices have become more popular in Mainland China. As such, the Group will continue to step up its investment in big data, digitalization and artificial intelligence, as well as increase the use of related advanced technologies. These strategies will allow Group not only to further enhance its efficiency in management, R&D, production and sales, but also create greater value for the industry and patients and promote the development of “patient-oriented” pharmaceutical services, pharmaceutical care services and chronic disease management systems, providing full course disease management solutions from which patients can benefit.

Some newly approved products
New indication of Anlotinib Capsules( FOCUS V): Anlotinib has obtained the approval for a new indication for soft tissue sarcoma, becoming the first such targeted drug approved in China. It has also been included in the guidelines for the diagnosis and treatment of soft tissue sarcoma by the Chinese Society of Clinical Oncology.

Gadoxetic Acid Disodium Injection (Xian’ai): This liver-specific magnetic resonance contrast agent is the first generic drug of its type in China. The product is able to increase the detection rate of small liver tumors, facilitating early diagnosis and treatment of liver lesions. It is also expected to replace invasive examinations and has piqued the widespread interest of the industry.

Iodixanol Injection: Iodixanol is the only X-ray diagnostic contrast agent that is isotonic with blood. It is recognized and recommended by numerous domestic and international clinical guidelines and expert consensus for enhancing the lesion detection rate and functioning as diagnostic identification in the examinations of organ disease in the nervous and cardiovascular systems, chest, abdomen, pelvis, etc. As the third generic drug of its type in China, this product is expected to complement Xian’ai in the area of marketing.

Rivaroxaban Tablet: Rivaroxaban is an important product for preventing vein thrombosis after orthopedic operations. The Group has succeeded in producing and launching the first generic drug for this medicine.

Apixaban Tablet: Apixaban is applicable to adult patients who have undergone hip joint or knee joint elective replacement to prevent venous thromboembolism. Apixaban has a wider therapeutic window and broader market prospects. Apixaban tablets has been included in the New National Medical Reimbursement Drug List and is expected to become the major new product in the portfolio of the Group.

Abiraterone Acetate Tablet (Qingkeshu): Abiraterone Acetate Tablet is a drug for prostate cancer treatment of new mechanism of action. It has been designated as a first-line or second-line treatment option for prostate cancer by European and American clinical guidelines. Prostate cancer is the second most common type of tumor in men worldwide. In China, prostate cancer is the most common genitourinary cancer in men.

Fosaprepitant Dimeglumine for Injection: This neurokinin-1 (NK-1) antiemetic drug is recommended in numerous domestic and overseas guidelines. The Group is one of the first batch of domestic enterprises successfully producing a generic drug of this kind. This product can perfectly complement the Group’s oncology medicine product line, which has already enjoyed the advantage, and is expected to become a heavyweight product in its oncology product line.

Caspofungin Acetate for Injection: This first new echinocandin antifungal drug has broad-spectrum antifungal activity. It has become the market’s star product among the antifungal drugs for systemic use.

Tofacitinib Citrate Tablet (Tai’yan): This oral small molecule inhibitor of JAK1/JAK3. Tofacitinib has promising efficacy for treating rheumatoid arthritis, ulcerative colitis, active psoriatic arthritis, moderate-to-severe active ulcerative colitis. The Group is the first in the country to produce generic drugs of this kind. The Group has also obtained approval for Celecoxib Capsule, a classic osteoarthritis medicine with wide indications and a mature market. With the approval of Taiyan, the value of the osteoarthritis drug product lines has also surged substantially.

About Sino Biopharmaceutical Limited (HKEX:1177)
Sino Biopharm Limited is a leading, innovative research and development driven pharmaceutical conglomerate in the PRC. Its business encompasses a fully-integrated chain which spans from R&D to the manufacture and sales of pharmaceutical products. The Group’s products have gained a competitive foothold across various therapeutic categories with promising potential, covering a vast array of biopharmaceutical and chemical medicines for treating tumors, liver diseases, respiratory system diseases, cardio-cerebral diseases and orthopedic diseases.

Sino Biopharm 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 and Hang Seng Stock Connect Hong Kong 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.

VPower Group Becomes a Distributor of Rolls-Royce Power Systems’ MTU Solutions in China

Hong Kong listed VPower Group International Holdings Limited (VPower Group), a leading DPG station owner and operator in Asia, announced that the Group has entered into a distribution agreement with the world’s leading engine manufacturer Rolls-Royce Power Systems AG, covering the sales and maintenance of MTU engines and gensets for marine commercial and gas power generation in China.

Since the commencement of partnership in 2008, VPower Group has already integrated over 3GW of MTU power products in its power solutions around the world. Today, VPower Group is the world’s largest operator of MTU power generation systems, with a wide range of applications in China and other countries. In addition to its new role as distributor, VPower Group will continue to integrate MTU gas systems as part of its own solution offerings.

Mr. Lam Yee Chun, Chairman of VPower Group, commented, “We share the same goal with Rolls-Royce to provide continuous, economical, reliable and sustainable source of power. We are glad to be its distributor and continue to offer our customers MTU products and service for both gas power generation and commercial shipping applications in China. There is great growth potential in these markets in China – and we want to exploit that potential together with Rolls-Royce.”

Mr. Tobias Ostermaier, President MTU Greater China at Rolls-Royce Power Systems AG, said “We are delighted to be taking our successful and close relationship with VPower Group to a new level and welcome VPower Group as an integral part of our MTU global distribution network. VPower Group is a valuable partner bringing in knowhow and capacity of power plant design and operation in China, and most importantly, a strong network in marine industry to support to our market share expansion in China. Together with VPower Group, we want to make MTU the brand of choice for engines and systems in the Chinese commercial shipping and powergen segments and realize significant growth potential in these market segments.”

Press release published by Rolls-Royce Power Systems AG is available at https://www.rrpowersystems.com/news/press-releases/press-detail/vpower_group_is_new_distributor_for_rolls_royces_mtu_solutions_in_china/?from=singlemessage

IVD Medical’s Revenue Surged 464.0% While Profit Significantly Increased 156.1% In 2019

Completes Acquisition Of Vastec;
Further Expands Product Portfolio, Distribution Network And Hospital Coverage

IVD Medical Holding Limited (“IVD Medical” or the “Group”), a leading distributor of In Vitro Diagnostic (“IVD”) products in the PRC, has announced its annual results for the year ended 31 December 2019 (“Period”). During the Period, the Group kept its rapid growth trend and recorded revenue of RMB 2,332,740,000, representing a significant increase of 464.0% as compared with the last year. Profit for the Period significantly increased by 156.1% to RMB 254,819,000. Profit attributable to owners of the parent also surged 165.9% to RMB 275,001,000. Such significant increase was primarily due to the consolidation of the financial results of Vastec Medical Limited (“Vastec”) together with its subsidiaries following completion of the acquisition of Vastec. The Group has been able to steadily increase its market share and profits by taking advantage of its competitive and diverse product portfolio, extensive distribution network and hospital coverage.

Mr. Ho Kuk Sing, Chairman of IVD Medical, said “The year 2019 is important in the Group’s development history. The Group successfully listed on the Main Board of HKEX to be the first IVD Company listed on HKEX. It not only marked an important milestone in the development of the Group’s business, but also enhanced the brand recognition of “IVD Medical” and laid a solid foundation for the Group’s future development. At the same time, we also achieved outstanding performance during this year. The Group acquired the remaining 60% equity interest in Vastec in January 2019. After completing the acquisition of Vastec, we will be able to further integrate our distribution value chain, which will help drive the Group’s future development.”

In view of the satisfactory operating results in 2019, the Board recommends a final dividend of HK$ 5.366 cent per share for the year ended 31 December 2019.

Business Review

The Group is a leading distributor of IVD products in the PRC. In 2018, Vastec was the fourth largest Tier-1 IVD distributor in the PRC, and the Original Group was the third largest distributor in the Shanghai IVD market. The Group also engages in the research, development, manufacturing and sale of its self-branded IVD products under the brand name “IVD”.

Distribution business
The distribution of IVD products forms the cornerstone of the Group’s business. It primarily is involved in the trading of IVD analysers, reagents and other consumables to customers such as distributors, hospitals and healthcare institutions, and logistics providers.

The Group acquired the remaining 60% equity interest in Vastec in January 2019. Vastec was an associated company of the Original Group before the Acquisition, and was under the same core management team including the founders of the Group. After Vastec became the Group’s wholly-owned subsidiary, revenue from the distribution of IVD products through Vastec was consolidated into the Group. Vastec is the sole national distributor of Sysmex’ haemostasis products with exclusive distribution rights in the PRC since 1997. It also procures a diverse portfolio of IVD products from other leading international brands and distributes them in the PRC. On 1 April 2019, Vastec and Sysmex entered into a new distribution agreement which extended the term until 2022. This newly signed agreement will further stabilize relations between Vastec and Sysmex. During the Period, there were approximately 7,186 Sysmex haemostasis analysers (2018: 6,359 unit) installed by the Group at hospitals and healthcare institutions accumulatively. The existing and rising installation will create continuous demand for reagents, thus generating stable recurring income for the Group.

At the same time, Vastec began to provide 4 Thrombotic Markers to the market. These new products are manufactured by Sysmex with high sensitive chemiluminesence technology, which may help the early diagnose of thrombosis and fibrinolysis, and they are aimed at further expanding the Group’s product portfolio. During the Period, there were approximately 64 Sysmex analysers installed by the Group at the hospitals and healthcare institutions, and the use of 4 Thrombotic Markers has commenced.

In addition, the Group provides solution services to the clinical laboratories of hospitals through Dacheng Medical Equipments (Shanghai) Co., Ltd. (“Dacheng”), a wholly-owned subsidiary of the Group. This has enabled the Group to establish and maintain direct relations with local medical practitioners so as to keep the Group close to the frontlines of the medical practice and the market demand for IVD products. During the Period, Dacheng actively expanded its business and provided solution services to three new hospitals in the PRC (located in Shanghai and Shandong) and has successfully recognized revenue. Solution services contributed revenue of RMB 132,798,000 for the year ended 31 December 2019 (2018: RMB 108,705,000), representing an increase of 22.2% compared to the last year.

Through years of operations, the Group has established an expansive distribution network across 29 provinces, municipalities and autonomous regions in the PRC with an extensive hospital coverage. As of 31 December 2019, the Group had 265 direct customers, including hospitals and healthcare institutions, and 903 distributors in its established distribution network. As of 31 December 2019, the Group also covered 1,315 Class III hospitals mainly through its sub-distribution networks in the PRC, which further enhanced the competitiveness of the Group.

Maintenance services
Apart from distributing IVD products in the PRC, the Group also derives revenue by providing maintenance services to end customers of Sysmex’ haemostasis analysers in the PRC. In 2017, Vastec entered into a maintenance services agreement with Sysmex to provide maintenance services for the haemostasis analysers of its end customers. The maintenance services provided by Vastec generally include maintenance and repair services, installation services and end customer training. Vastec primarily provides its maintenance services to hospitals and healthcare institutions. During the reporting period, the maintenance services business was able to sustain steady development.

Self-branded products business
During the years ended 31 December 2017 and 2018, the factory of the Group undertook the re-setting, adjustment and calibration of self-branded IVD analysers of the Group, for adapting the self-branded IVD analysers of the Group that are originally designed for use in the outpatient department to now operate in the emergency department of hospitals. The factory reset for the upgrade of self-branded IVD analysers of the Group can improve users’ satisfaction and will have positive effects on the self-branded business of the Group in the long run. The manufacturing and sale of such IVD analysers re-commenced in 2019.

Outlook
In the future, the Group will consolidate its leading position in the IVD industry in the PRC and adopt active development strategies. To realize this goal, the Group aims to continuously expand its product portfolio by diversifying product categories, increasing brand coverage and further expand the breadth of distribution network and hospital coverage. In this way, the Group will be able to capitalize on the high growth potential of the IVD market.

Concurrently, the Group will continue to develop its distribution business by enhancing its capacity to provide solution services. By being the general supplier of their clinical laboratory department, the Group is involved laboratory layout design, provides centralized procurement of IVD products, conducts real-time inventory monitoring and delivers other after-sale services to clinical laboratories. It also plans to provide solution services for two new hospitals in 2020. Moreover, the Group will continue participating in national and local IVD symposiums, as well as academic conferences to raise brand awareness.

In addition, the Group believes that strong research and development capabilities are critical for securing its future development and sustainable growth. It will therefore invest more resources in improving its research and development capabilities, including acquiring equipment and instruments, and hiring experts from relevant fields. The Group will also engage in research projects to further develop self-branded IVD products that hold promising market potential. The Group is keen as well to further strengthen product quality management, and optimize the performance and applicability of its self-developed products to enhance the Group’s competitiveness in the market.

Mr. Leung King Sun, COO of the Group, added, “There will be a significant growth potential for the healthcare and medical device market, especially the IVD market in PRC with the aggravating trend of ageing population, the growth of medical expenses per capita and the progress of technology development. Looking ahead, we will continue to diversify our product mix, distribution network and hospital coverage so as to enhance our capacity to provide solution services to hospitals and further improve our product research and development capabilities. We will also seize opportunities that allow us to realize sustainable business growth and boost shareholder value.”

About IVD Medical Holding Limited
IVD Medical Holding Limited (“IVD Medical” or the “Group”) is a leading distributor of IVD products in the PRC. Its key subsidiaries include Vastec Medical Limited, Dacheng Medical Equipments (Shanghai) Co., Ltd., IVD China Limited and Suzhou DiagVita Biotechnology Co., Ltd. The Group’s distribution network covers 29 provinces, municipalities and autonomous regions across the PRC. It is the sole national distributor of Sysmex’ haemostasis products in the PRC and provides maintenance services to its end customers. It also engages in the R&D, manufacturing and sales of self-branded IVD analysers and reagents and provides solution services to clinical laboratories of hospitals for centralised procurement.

Tai Hing Announces 2019 Annual Results

Revenue up 4% Year-on-Year to HK$3,252.3 Million With Adjusted Net Profit at HK$135.0 Million;
To Launch Six New Canned Food Products and Enhance Delivery Service to Mitigate Current Headwinds and Boost Income Stream

Tai Hing Group Holdings Limited (“Tai Hing” or the “Group”; stock code: 6811), a multi-brand casual dining restaurant group with roots in Hong Kong and a network of more than 200 restaurants in Hong Kong, Mainland China, Macau, and Taiwan, has just announced its annual results for the year ended 31 December 2019 (the “Review Year” or the “FY2019”).

RESULTS HIGHLIGHTS
– Revenue increased by approximately 4.0% to HK$3,252.3 million in 2019 (2018: HK$3,126.1 million)
– Gross profit margin remained stable at 71.3% (2018: 71.6%)
– Adjusted profit1 amounted to HK$135.0 million in 2019 (2018: HK$153.3 million), while adjusted profit margin was 4.2% (2018: 4.9%)
– To launch six new canned food products in the second quarter to capture the home meal market; and striving to capture the growth potential of delivery business by deepening the cooperative relationship with certain leading third-party delivery platforms in both Hong Kong and Mainland China
– Total dividend for FY2019: HK5.04 cents per share, representing a dividend payout ratio of 65.3%

During the Review Year, the Group’s revenue recorded a year-on-year increase of 4.0% to HK$3,252.3 million (FY2018: HK$3,126.1 million). This increase was primarily due to the rising revenue generated from the restaurant operation in its major markets, along with the steady performance from both the signature “Tai Hing” brand, and younger brands within the portfolio, in particular “Men Wah Bing Teng”, and “Pho Le”.

The Group’s gross profit amounted to HK$2,319.7 million (FY2018: HK$2,239.0 million), with gross profit margin remaining at a stable level of 71.3% (FY2018: 71.6%). Profit attributable to owners of the Company was HK$76.9 million (FY2018: HK$304.9 million), owing to various extraordinary one-off items recorded during the Review Year and FY2018. If an one-off gain on disposal of non-current assets as held for sale booked in FY2018, one-off listing expenses recorded in FY2019, and implementation of a new accounting policy (HKFRS 16 Leases), which was effective for the period beginning on or after 1 January 2019, were excluded, the Group’s adjusted profit would have amounted to HK$135.0 million (FY2018: HK$153.3 million). Basic earnings per share were HK8.65 cents (FY2018: HK40.66 cents).

To share the Group’s success with shareholders, the Board has resolved to propose a final dividend of HK1.80 cents per ordinary share for the year ended 31 December 2019. Together with an interim dividend paid during the year, total dividend will amount to HK5.04 cents, representing a dividend payout ratio of 65.3%.

Business review
As at 31 December 2019, the Group has a network of 205 restaurants spanning across Hong Kong, Mainland China, Macau and Taiwan, under eleven casual dining brands.

The flagship brand “Tai Hing” remains the key revenue generator of the Group. During the Review Year, Tai Hing restaurants generated HK$1,931.8 million in revenue and accounted for 59.4% of the Group’s total revenue. A major milestone for the brand during the Year is the Group’s opening its first “Tai Hing” restaurant in Taiwan in May 2019, to an overwhelmingly favourable market response.

The “Men Wah Bing Teng” restaurant chain was warmly welcomed by the market, resulting in a significant 148.6% year-on-year rise in revenue to HK$299.5 million. The restaurant chain also achieved satisfactory same-store sales growth of 3.2% and an outstanding seat turnover rate of 15. Since the first “Men Wah Bing Teng” was opened in Guangzhou in July 2019, two more restaurants have been opened in Mainland China, which has significantly strengthened the brand’s presence in the country. To maintain its outstanding performance, the Group will further promote “Men Wah Bing Teng” in the Greater Bay Area, as well as other high potential markets.

The Group’s other subsidiary brands have also performed favourably during the Review Year. Among them, “TeaWood” continued to deliver considerable revenue amounting to HK$521.5 million, accounting for 16.0% of the total revenue and remained as the Group’s second largest revenue contributor. “Pho Le” recorded a 43.9% year-on-year rise in revenue to HK$138.4 million, benefiting in part from the introduction of an expanded menu. As for the “Trusty Congee King” brand, revenue from the operation increased by 12.8% year-on-year to HK$235.5 million and the Group opened one and two stores in Hong Kong and Mainland China, respectively, during the Review Year.

Indicative of the Group’s desire to continuously enhance its offerings to customers through its multi-brand strategy, three new sub-brands were launched during the Review Year. In January, it opened the first Taiwanese hotpot restaurant under the “Hot Pot Couple” brand in Mongkok. This was followed by the launch of the classy “cha-chaan-teng” brand- “King Fong Bing Teng” at Elements, Tsim Sha Tsui in October. By December, “Asam Chicken Rice” brand outlet offering Southeast Asian delights was introduced in Central.

Prospects
Looking ahead to 2020, the outbreak of the COVID-19 epidemic is expected to affect both Hong Kong and Mainland China economies to varying degrees. To mitigate the headwinds, the Group has implemented certain business strategies with new initiatives to drive sales.

Among them, the Group will launch six new canned food products in the second quarter of 2020, with flavours including stir-fried pork with vegetables, curry beef brisket, minced beef, braised pork, curry chicken, spiced pork cubes, etc. It is believed that the new canned food products, available in both restaurants under the Tai Hing Group as well as selected online platforms in Hong Kong and Mainland China, will help capture the growing demand of home meal and serve as a new income stream to the Group. It also intends to develop more canned food and beverage products by leveraging its Dongguan food factory. In doing so, the Group will be able to achieve the dual goals of expanding income streams and more fully utilising the factory.

On the other hand, in view of the huge business potential of the delivery business, the Group is actively co-operating with certain leading third-party food ordering platforms, both in Hong Kong and Mainland China, to increase its stake in the food delivery business. The Group’s enhanced efforts to bolster its delivery operations starting from 2019 highlight its optimism towards this business, and in particular, its ability to cater for the rise in takeout food orders driven by the COVID-19 outbreak in the first quarter of 2020. The Group is also working hand-in-hand with various food ordering platforms to raise awareness of its brands through linkage with their respective signature products, so that various distinguished brands under the Group come immediately to mind when customers want fine cuisine delivered to their home. Further driving the takeaway food business will be the Group’s “T-Factory” mobile application and the technology will also allow collection of data on customers, which in turn enables it to promptly determine the latest market trends, leading to timely adjustments to menus and marketing campaigns.

While it will take a prudent approach to network expansion in view of the current economic and geopolitical climate, the Group will continue to develop and improve its high-growth brands, including “Men Wah Bing Teng”, “Pho Le” and “Trusty Congee King” at an opportune time after the epidemic is under control. At the same time, it will also review the positioning of its mature brands to adjust strategies based on different market requirements. The Group will also explore potential partnerships in tapping the overseas markets, as well as the provision of different cuisine to meet the tastes and preferences of global customers, ultimately facilitating overseas business expansion and sustaining the growth momentum.

Mr. Chan Wing On, Chairman and Executive Director of Tai Hing, said, “Despite the current difficult operating environment backdrop for all catering enterprises, I remain confident in the Group’s long-term growth potential attributable to our solid foundation as well as our ample experience facing both good times and bad during the past three decades. With our multi-brand strategy targeting the mass market customers and our store locations mainly in neighbourhood malls where business is relatively resilient, we are confident of maintaining stable business operations amidst the current headwinds. Looking ahead, we are committed to developing an effective omnichannel business model to include food and beverage canned products and delivery service supported by our well-established restaurant network, which will allow us to facilitate long-term growth”.

About Tai Hing Group Holdings Limited (stock code: 6811)
Tai Hing Group Holdings Limited (“Tai Hing Group”) is a multi-brand casual dining restaurant group with roots in Hong Kong. In addition to its flagship “Tai Hing” brand, the Group has a growing brand portfolio comprisng of self-developed brands, and acquired and licensed brands, including “TeaWood”, “Trusty Congee King”, “Men Wah Bing Teng”, “Pho Le”, “Tokyo Tsukiji”, “Fisher & Farmer”, “Rice Rule”, “Hot Pot Couple”, “King Fong Bing Teng” and “Asam Chicken Rice”. Currently, it has a network of more than 200 restaurants in Hong Kong, Mainland China, Macau and Taiwan.

Haitong UniTrust Announces 2019 Annual Results

Revenue increased significantly of 34.0% Y-O-Y

Haitong UniTrust International Leasing Co., Ltd. (“Haitong UniTrust” or the “Company” and its subsidiaries together, the “Group”; Stock Code:1905) is pleased to announce the audited annual results for the year ended 31 December 2019 (“the Reporting Period”). In 2019, the Group realized revenue of RMB7,144.9 million, representing an increase of 34.0% from RMB5,332.3 million last year; and profit of RMB1,354.9 million with robust profitability.

Financial Highlights
– For the year ended 31 December 2019, revenue was RMB7,144.9 million, representing an increase of 34.0% as compared with 2018;
– Realized profit of RMB1,354.9 million and maintained its steady growth;
– Non-performing asset ratio and allowance coverage ratio of the Group were 1.08% and 265.19%, respectively;
– Actively rewards shareholders and distributed the interim cash dividend of 2019 with a total amount of RMB411,765,000.00. The Company also recommended to distribute annual dividend for the year of 2019 with a total amount of RMB362,353,200.00.

The Company’s capital strength improved significantly. With the issuance and Listing of H Shares and the continued profitability of the company, the total equity of the Group recorded RMB15,289.8 million as at Decemebr 31, 2019, representing an increase of 18.3% as compared with December 31, 2018. The Company’s asset scale continued to expand. The total assets of the Group amounted to RMB99,047.3 million as at December 31, 2019, representing an increase of 20.6% as compared with December 31, 2018.

During the Reporting Period, adhering to its objective of serving the real economy and strictly implementing its strategies of “One Body, Two Wings” and “One Big and One Small”, the Group put efforts in developing localized segments and further optimized its assets and investment structure. In order to support high-quality micro- and small-sized enterprises(“SMEs”) and retail customers, the Group focused on the development of business related to transportation & logistics, advanced manufacturing, healthcare, infrastructure and other key sectors. For the year ended December 31, 2019, the Group invested RMB57,786.4 million in its business, including investments in retail business and institutional business of RMB28,737.2 million and RMB29,049.2 million, respectively, achieving a balanced development between large- and medium-sized enterprises and SMEs.

In 2019, the Group continued to improve its comprehensive risk management system, implemented proactive risk management, embedded various risk management into its business operations and promoted a integration of big data and risk models with the approval system to further enhance its risk identification and quantitative management capabilities. In addition, the Group strengthened its risk prevention and handling capabilities through forward-looking asset allocation management, proactive response to risk events and increased efforts in asset disposals. Benefiting from the combined effect of comprehensive risk management, during the Reporting Period, the overall asset quality of the Group remained stable and the NPA ratio was maintained in a safe and controllable level with strong risk resistibility. As at December 31, 2019, the NPA ratio and allowance coverage ratio for NPAs was 1.08% and 265.19%, respectively.

As at December 31, 2019, the Group established credit relationships with 66 financial institutions and signed accumulative credit lines of approximately RMB93.1 billion, of which the unused credit balance was approximately RMB36.8 billion. The Group also continued to expand traditional financing channels and explore innovative financing methods to meet its development needs. For example, in 2019, the Group successfully issued the first asset-backed securities with credit protection contracts (“CDS”) and the first loan prime rate (“LPR”)-linked asset-backed notes in China. In addition, the Group continuously improved its liquidity risk management and debt structure management to achieve a balance between asset and liability duration.

In 2019, the successful issuance of the H shares of the Group further consolidated the capital strength of the Company, and the annual financing scale was equivalent to RMB52,654.4 million. Indirect financing withdrawals of RMB28.288 billion were realized through channels such as syndicated loans and bank acceptance bills, accounting for 53.7% of the total financing amount; direct financing of RMB24.366 billion were realized through issuance of asset-backed securities of RMB11.216 billion, short-term financing bonds of RMB1 billion, ultra short-term financing bonds of RMB7.5 billion, asset-backed notes of RMB950 million, private debt financing instruments of RMB2.7 billion and private equity corporate bonds of RMB1 billion, accounting for 46.3% of the total financing amount, in order to ensure the capital resources of the Company.

The Company was devoted to safeguard the interests of shareholders and maximize shareholders’ value. While creating good operating performance, the Company actively rewards shareholders. In 2019, the Company has distributed the interim cash dividend to all of its ordinary shareholders with a total amount of RMB411,765,000.00. In addition, the Board of Directors of the Company recommended to distribute cash dividend to all of its ordinary shareholders for the year of 2019 with a total amount of RMB362,353,200.00. The proposed distribution of annual dividend is subject to the approval of the Shareholders during the annual general meeting of 2019 to be held by the Company and is expected to be distributed no later than July 30, 2020.

Looking forward to 2020, the Group will pay close attention to the domestic and international economic conditions and continue to adhere to the principle of serving real economy with financial services, and proactively embrace challenges. While tamping the foundation of superior business, the Group will grasp new opportunities and identify demands of its customers for further development and adequately allocate resources. The Group will further consolidate its leading position and competitiveness and improve its high quality sustainable development.

About Haitong UniTrust International Leasing Co., Ltd.

Haitong UniTrust International Leasing Co., Ltd. is a large and steadily growing financial leasing company in China. As the sole leasing platform and one of the key strategic segments of Haitong Securities, a leading securities firm in China, the Company offers customer oriented and comprehensive financial services to a diverse group of customers across various industries by leveraging the investment banking expertise of the senior management of the Company. The Company strives to become a financial leasing company that leads industry innovation with the characteristics of capital market. The Group has been adhering to its role as a financial service provider of the real economy and has been grasping favorable opportunities arising from the major transformation of economy of China. The Group has also pursued the operating strategies of “cross-border thinking, promoting innovative development, strengthening its capacity and grasping business opportunities”. Based on its customer strategy of maintaining a balanced customer base, the Group has provided tailored services to a wide range of customers, including large- and medium-sized enterprises, micro- and small-sized enterprises and retail customers. The Company has continued to provide comprehensive financial services to customers in transportation & logistics, industrial sector, infrastructure, construction & real estate, health care and other industries by implementing the best practices of investment banking and strengthening the collaboration with its parent company, financial institutions and industry alliance partners. The Company has formed a competitive advantage with unique securities firm characteristics, including coordinated allocation of resources and assets and balanced growth of business scale and income.

Everbright Grand China Announces 2019 Annual Results

Total Revenue up 15.6% to approximately RMB71.3 million with RMB2.03 cents of Final Dividend;
Shows a Prominent Sustainable Development

Everbright Grand China Assets Limited (“Everbright Grand China” or the “Group”; HKEX stock code: 03699), a subsidiary of China Everbright Group, principally engaged in the businesses of property leasing, property management and sales of properties held for sale, announced its annual results for the year ended 31 December 2019 (“the year under review”).

In 2019, despite a challenging operating environment, the group achieved satisfactory operating results in its efforts to further increase the value of its properties and revenue from its major businesses. During the year under review, the audited revenue increased to approximately RMB71.3 million, representing an increase of approximately 15.6% as compared to last year. The increase was mainly due to the non-recurring revenue from sales of the residential properties. The Group’s profit attributable to equity shareholders of the Company was approximately RMB37.3 million, which represented an increase of approximately 1.9% as compared to the last year. Despite the decrease in gross profit and valuation gains on investment properties, the slight increase in profit for the year was primarily due to the increase in other net income as a result of the Group’s receipt of a one-time non-recurring income and decrease in distribution costs and administrative expenses. Basic earnings per share of the Group was approximately RMB0.08. The Board recommends the payment of a final dividend of RMB2.03 cents (equivalent to HK2.22 cents) per ordinary share for the year ended 31 December 2019.

Property Leasing
During the year under review, the rental income from the Group’s property leasing business was approximately RMB39.6 million (2018: RMB43.5 million). The Group’s properties are located in Chengdu, Sichuan province and Kunming, Yunnan province in the PRC. As at 31 December 2019, the property portfolio comprises three commercial buildings, namely Everbright Financial Center, part of Everbright International Mansion and Ming Chang Building, with a total gross floor area (“GFA”) of approximately 88,529 square meter (“sq.m.”) and residential properties, namely part of Dufu Garden, with a total GFA of approximately 440 sq.m. The decrease in rental income was mainly due to the increase in vacancy rate in the commercial buildings.

Property Management Service
In order to maximize the value of the properties, the Group has a professional property management team to provide property management services for its properties, namely Everbright Financial Center and Everbright International Mansion. Revenue from the Group’s entirety property management services was approximately RMB15.5 million during the year under review (2018: RMB18.3 million). During the year, the decrease in revenue from property management services was due to the decrease in the non-recurring value added property management services income. Total GFA under the Group’s management was approximately 69,216 sq.m., a decrease of 7.0% as compared with the last corresponding year (2018: 74,406 sq.m.).

Sales of Properties
The Group’s residential properties are located at Dufu Garden, Chengdu, Sichuan province in the PRC. As at 31 December 2019, two of the units had been sold at proceeds of approximately RMB16.2 million (2018: Nil).

Investment Properties
The Group’s investment properties mainly consist of land and buildings which are owned or held under leasehold interest to earn rental income and/or for capital appreciation. The total value of the investment properties was RMB922.4 million for the year ended 31 December 2019 (31 December 2018: RMB900.9 million). The valuation gain on investment properties for the year ended 31 December 2019 amounted to approximately RMB26.4 million (2018: approximately RMB33.8 million), representing a decrease of approximately RMB7.4 million as compared to last year. The decrease indicates the slowdown of property market in the PRC.

Prospects
Looking ahead to 2020, the world’s political and economic environment will be highly uncertain. There will be greater changes while the growth rate of the global economy is forecasted to decline, leading to severe downward pressure for China. Intensity of adjustments and fine-tuning of national economic policies may increase. Nevertheless, the trend that China’s economy will grow positively in the long run remains unchanged. The PRC Government adheres to the principle of “seeking further development amid stability”, stabilizing the macro-economy and monetary policy in China. As the supply from domestic real estate market is in off-season, the growth in total sales amount slows down. It is expected that adjustments in policies together with measures will effectively and gradually rise the market demand, the overall operation of the real estate market will remain steady and affirmative.

Through continuous revision of economic structure as well as furthering the policy of reform and opening in China, the office occupancy rates in urban areas in Chengdu and Kunming shall remain stable. To ensure the standard of the property management business with market competitiveness, the Group will enhance the strategic advantages by making its existing strategies for commercial leases more flexible and ameliorating its overall risk management. Also, the Group will actively improve the quality of its services, be customeroriented, optimize the structure of the Group’s self-owned assets and the system of quality control. The Group will strive to uphold the excellent and stable relationship with long-term customers to assure certain and substantial recurring income, operating profits plus high occupancy rates.

The Group will endeavor to adhere its strategic position in investing in commercial buildings, explore potential overseas markets prudently and optimistically seek for business opportunities with expansion in markets such as London, the United Kingdom. To improve the Group’s corporate competitiveness through balancing its domestic and overseas investments portfolio, furthermore, to enrich the Group’s property portfolio by acquiring properties which have a healthy net initial return and good prospect for commercial leasing with a view in the best interests of the shareholders as a whole.

Redsun Properties’ Net Profit Up by 23.6% to RMB1.64 Billion in 2019; Final Dividend Increases by 22.0% to RMB11.1 Cents per Share

Redsun Properties Group Limited (“Redsun Properties”, or the “Group”, stock code: 1996), a leading comprehensive property developer in Mainland China, announced its annual results for the year ended 31 December 2019. The Group maintained a healthy financial position under its “Property + Commercial” dual-driven strategy, which helped it realise synergies and build diversified competitiveness.

Results Highlights:
– Business continued to grow under the Group’s “Property + Commercial” dual-driven strategy. Contracted sales amounted to RMB65.15 billion in 2019, surging around 37.6%.
– Net profit strongly increased by 23.6% to RMB1.64 billion. Net profit margin was 10.8%
– Recommended the payment of a final dividend of RMB11.1 cents per share, a year-on-year growth of 22.0%
– Healthy financial position with net gearing ratio of approximately 70.4%. Cash and bank balances were approximately RMB16.84 billion, an increase of 35.2% when compared with the end of 2018.
– Land bank increased by 29.4% when compared with the end of 2018 to 16.93 million sq.m., supporting future development
– Rapid enhancement in brand and scale of commercial segment with year-on-year growth of 14.6% to RMB411.4 million in rental income from commercial operation. The growth was mainly attributable to the opening of three shopping centre projects during the year. In addition, the Group plans to open 11 new Hong Yang Plaza to promote the “Hong Yang Plaza” brand.

Highly efficient operation: Continuous growth in three key businesses
The Group maintained sustainable growth in 2019. Contracted sales amounted to RMB65.15 billion, representing a year-on-year surge of 37.6%. The contracted sales in gross floor area was approximately 4.905 million sq.m., with a year-on-year increase of 39.0%. Net profit was approximately RMB1.64 billion, climbing by 23.6% (2018: RMB1.32 billion), while net profit attributable to owners of the parent increased by approximately 3.9% to RMB1.47 billion (2018: RMB1.41 billion). Basic earnings per share were RMB0.44. The Board of Directors recommended the payment of a final dividend of RMB11.1 cents per share (2018: RMB9.1 cents).
The Group’s total assets amounted to approximately RMB95.4 billion, soaring nearly 40.5% when compared with 2018. Net profit margin was 10.8%, reflecting the continuously improving operation efficiency of the Group.

The Group’s three distinctive segments, namely property business, commercial property operations and hotel operations continued to grow. Revenue from property development which accounted for 97.0% of total revenue amounted to RMB14.72 billion, soared 66.4% mainly owing to the Group’s rapid expansion. Rental income from commercial operation and hotel operation was RMB411.4 million and RMB39.8 million respectively, representing a growth of 14.6% and 8.3% accordingly. The growth was mainly due to the grand opening of Pavilion C2 and C3 at Nanjing Hong Yang Plaza in August 2019, the increase in contribution from Changzhou Hong Yang Plaza as a result of an improved performance and the additional contribution from Yantai Hong Yang Plaza and Tengzhou Hong Yang Plaza after their openings. The increase in revenue from hotel operations was mainly attributable to the increase in contribution from Nanjing Hong Yang Hotel and Wuxi Hong Yang Lakefort Hotel as a result of the improvement of their performance.

“Penetrating the Greater Jiangsu Region, strengthening foothold in the Yangtze River Delta Region and expanding into major metropolitan areas”
During the reporting period, the Group’s land bank rose by 29.4% compared with same period last year to approximately 16.93 million sq.m. (2018: 13.08 million sq.m.). The Group strictly implemented the regional strategy of “penetrating the Greater Jiangsu region, strengthening foothold in the Yangtze River Delta region and expanding into major metropolitan areas”, focusing on the existing regions and expanding to dynamic hub cities. In 2019, it entered 17 cities including Jinan, Qingdao, Xi’an, Changsha, Wenzhou and Zhengzhou, while gearing up its strategic cooperation in acquiring land with proven results shown in commercial land acquisition. The Group also focused on implementing its dual-driven strategy, realising synergies through commercial/residential duel structure as well as enhancing quality and greater effectiveness in its operation.

Adhered to business operation model comprising both asset-light and asset-heavy elements in development
The Group adhered to the commercial operation model including both asset-light and asset-heavy elements in its development. Rental income from commercial operations increased 14.6% year-on-year to RMB411.4 million. Three of the Group’s shopping centre projects, namely Pavilion C Nanjing Hong Yang Plaza, Yantai Zhifu Hong Yang Plaza and Tengzhou Hong Yang Plaza were opened during the year. Up to now, the Group has opened four Hong Yang Plazas, located in Nanjing and Changzhou in Jiangsu, Yantai and Tengzhou in Shandong respectively. It is currently planning to expand the commercial operation business by taking advantage of the asset light model, thereby further promoting the “Hong Yang Plaza” brand.

Healthy financial position recognised by credit rating agencies
The Group has a healthy cash position with cash and bank balances surging notably by 35.2% year-on-year to approximately RMB16.84 billion (2018: RMB12.46 billion). Net gearing ratio was 70.4%. The Group successfully issued senior notes several times in 2019, which were subscribed by renowned international long-term funds. In January 2020, the Group, for the first time, secured a commercial bank club loan amounting to US$70 million, providing adequate funding for its future development. Fitch Ratings, an international rating agency, upgraded the Group’s corporate rating to “B+” with a stable outlook; while Moody’s assigned a “B2” corporate rating to the Group for the first time, with a positive outlook. The ratings from the two agencies reflected their recognition of the Group’s high-quality land bank and solid operation and financial performance.

Future strategies: “Dual-Driven” together with “Quality and Efficacy Enhancement”
The Group believes the impact of the outbreak and spread of coronavirus on the economy and the real estate market is temporary, and the epidemic will not have significant impact on the economy and real estate market in China in the medium- and long-term.

Looking ahead, the Group will continue to foster the “Dual-Driven” business strategy, while “Quality and Efficacy Enhancement” will become the main theme of its operation. For property development, under the guidance of the general strategic direction of “penetrating the Greater Jiangsu region, strengthening foothold in the Yangtze River Delta region and expanding into major metropolitan areas”, the Group will adhere to its nationwide strategy and further solidify its business development efforts in key regions in Jiangsu and Yangtze River Delta, as well as uplifting the quality of products and services and the quality and efficiency of operation. It will also strengthen its profitability and improve its risk management capability. As for commercial real estate, the Group will emphasize both expansion of scale and enhancement of operation quality. While exploring high-quality projects through diversified models such as entrusted management, leasing and self-holding, the Group will also continuously optimise and upgrade its business portfolio, foster innovation and enhance consumer experience so as to create benchmark commercial property projects and generate better returns on assets from its commercial real estate business.

About Redsun Properties Group Limited (“Redsun Properties”) (stock code: 1996)
Redsun Properties Group Limited (“Redsun Properties” or “The Group”) is a leading comprehensive developer in China, focusing on development of residential properties and the development, operation and management of commercial and comprehensive properties. The Group has established a steady regional leading position in Jiangsu Province by taking root in Nanjing, Jiangsu and Yangtze River Delta. Since the incorporation of Nanjing Redsun in 1999, Redsun Properties has worked in the sector of property development and sales for 20 years, established the Hong Yang brand and received widespread recognition for the development capacity and industry position. Redsun Properties has been ranked the 47th property developer in China in 2020.

While developing residential properties, Redsun Properties also operates commercial complexes covering shopping malls, amusement parks and community centers, hotels and office buildings. Most of the commercial property buildings are adjacent to the Group’s residential property projects, providing ancillary services for the residents and also increasing the value of the Group’s residential property projects.

EuroEyes’s Revenue in 2019 Rose by 14%, Launch New Clinics and Services in 2020 to Boost Future Growth

EuroEyes International Eye Clinic Limited (“EuroEyes” or the “Company”, stock code: 1846), is one of the leading brands in the vision correction industry that combines German ophthalmology excellence and 25 years of experience with individualised customer-care and principally engaged in the provision of vision correction services in Germany, Denmark and the People’s Republic of China (“the PRC”).

2019 Annual Results Highlights
– Total Revenue for the year 2019 reached approximately EUR49 million, up approximately 14% YoY
– Gross Profit for the year 2019 reached approximately EUR20.3 million, up approximately 16.3% YoY
– Adjusted Gross Profit1 for the year 2019 was approximately EUR20.6 million, up approximately 18.4% YoY
– Adjusted Gross Profit Margin for the year 2019 was 42.1%, increased 1.6 percentage points YoY
– Adjusted Net Profit after tax2 for the year 2019 reached EUR5.7 million, up approximately 4.2% YoY

The Revenue by Geographical Regions
– Total revenue in Germany increased by 12.5% YoY
– Total revenue in the PRC increased by 6.8% YoY
– Total revenue in Denmark increased by 45.7% YoY

EuroEyes is pleased to announce its annual results for the year ended 31 December 2019 (the “Year 2019”).

For the Year 2019, the Group’s revenue increased by approximately 14.0% on a year-on-year (“YoY”) basis to approximately EUR49.0 million, adjusted gross profit increased by 18.4% YoY to approximately EUR20.6 million, and the adjusted gross profit margin was 42.1%, representing a YoY increase of 1.6 percentage points.

In respect of geographical regions, the operating revenue from Germany, the PRC and Denmark was EUR30.2 million, EUR12.9 million and EUR5.8 million accounting for 61.7%, 26.4% and 11.9% of total revenue, respectively. .

In respect of the types of surgery, the total revenue for the Year 2019 generated from lens exchange surgery was EUR22.9 million, accounting for 46.8% of total revenue. Lens exchange surgery consists of monofocal and trifocal lens exchange surgery. The total revenue generated from phakic lens (ICL) surgery was EUR6.7 million, accounting for 13.7% of the total revenue.

During the Year 2019, the Group’s total revenue in Germany increased by 12.5% YoY, of which EUR13.4 million was from lens exchange surgery, representing an increase of 23.8% YoY. The Group’s revenue in Germany has grown each year since 2016 as the Group established its position as the market leader in Germany. In Denmark market, the Group’s revenue for the Year 2019 increased by 45.7% YoY. The Group achieved strong revenue growth in Denmark, mainly as a result of the Company’s effective marketing strategy. In addition, the revenue of lens exchange surgery recorded EUR4.9 million, representing a YoY increase of 39.8%.

During the Year 2019, the Group’s revenue in the PRC increased by 6.8% YoY. The growth rate of the Company’s business in the PRC market is expected to increase as the Group expands operations and executes new marketing strategies throughout the PRC. Revenue generated from lens exchange surgery was EUR4.6 million, representing a YoY increase of 27.8%

Strategic Steps Taken
As a leading vision correction company in the world, EuroEyes is committed to be the go-to eye clinic group in Europe and the PRC as it provides patients with the best service combined with state-of-the art German technology and expertise. The Group is actively expanding its business into the PRC while maintaining top quality of the services in Germany, Denmark, and the PRC.

The Group opened two new clinics in the PRC in 2019. The Hangzhou Clinic commenced its operation in June 2019 while the Beijing (East) Clinic opened in September 2019. Further, the Company began construction of the Chongqing Clinic in December 2019, which is expected to commence its operation along with the new Fuzhou Clinic in 2020. In addition, the Company plans to open two new clinics in Chengdu and Qingdao.

As Chinese households become wealthier, they have a greater disposable income to afford high quality eye treatments. This increase in the middle-class is propelling the growth of the ophthalmic market in the PRC. Since entering the PRC in 2013, EuroEyes has provided advanced German technology and 100% German services to patients with myopia, hyperopia, presbyopia and cataracts, enabling them to have clear vision without glasses. Dr.Jorn Slot Jorgensen, founder and the chairman of EuroEyes has successfully completed over 100,000 ophthalmological surgeries and helped patients in Europe and the PRC to have clear vision without glasses.

New Services Was Launched in EuroEyes Clinics
Around 30 years ago, less than 1 % of the Chinese adult population had diabetes. These levels today, however, have increased to around 12 %. This is approximately 114 million diabetic patients in China. The longer a patient has diabetes, the higher his or her chances of developing diabetic retinopathy. Up to 80% of those who have had diabetes for 20 years or more develop diabetic retinopathy. The Chinese government is paying greater attention to prevent diabetic retinopathy as it is the leading cause of new cases of blindness in adults in China. In recent years, Chinese government initiated the “Chinese type II diabetes prevention and treatment guideline (2017)”, stating that diabetic patients need to have their eye screened once every one to two years (or more frequently depending on his or hers condition). It is estimated that at least 90% of new cases could be reduced with proper treatment and monitoring of the eyes by detecting the disease at its early stage.

Against this backdrop, EuroEyes will launch its new service for eye screening in the PRC in April 2020 subsequent to its successful commence of the same service in Germany and Denmark.

EuroEyes will also launch its new service of EDOF treatment in Germany in the second half of 2020 for the people of age 45-55. Given the ICL treatment has been well received in the market for the people of age over 55, the Company believes the new service will become a new revenue growth driver for the Group as it is expected 75%-80% of the people of age 45-54 would accept vision correction surgery for presbyopia.

Recent Development

As at 18 March 2020, EuroEyes’s clinics in Germany and Denmark saw a steady business growth during the majority time Q1 2020. Adjusted Gross Profit Margin for the year 2019 was 42.1%, increased 1.6 percentage points YoY. Meanwhile, the clinics in the PRC resumed their operation in mid-February and received a strong demand for surgery booking via its online platforms.

The Company has incorporated various measures to minimize the impact from Covid-19, such as opening online consultations and online info lectures, maintaining close connection with patients, operating on a reservation-only basis, taking strict measures on disinfection and cleaning of the clinics and consultation centers etc.

The Company believes the volume of surgery will grow steadily in Germany, Denmark and the PRC market after the end of Convid-19 outbreak based on the indicated interest and recorded bookings.

Dr.Jorn Slot Jorgensen, the Founder, Chairman and CEO of EuroEyes commented, “Thanks to all our supporting parties and diligent staff of the Group, EuroEyes has seen a substantial return as it has experienced outstanding business development in the Year 2019. With the strategy of expansion and strong marketing efforts by the Company, we have seen an aggressive surge in the company’s overall revenue and the growth rate of lens exchange surgery in all three countries where EuroEyes is located. We are extremely pleased with the pace of opening our new clinics and plan to continue opening two to three new clinics each year in the PRC. During the Year 2019, the Group continued to fulfil the huge market demand for vision correction using our in-depth experience and technology. In the coming years, the Company will continue to deploy its strategies and resources with a combination of prudent and proactive approaches with an aim to realise our goal of “Nie wieder Brille!” (No More Glasses).”

About EuroEyes International Eye Clinic Limited
EuroEyes was established in 1993 and is one of the leading brands in the vision correction industry that combines German ophthalmology excellence and over 25 years of experience with individualized customer care. EuroEyes is one of the few eye clinic groups with a far-reaching geographical coverage, with operations in Germany, Denmark and the PRC. The Group’s vision correction services include (i) refractive laser surgery (which includes ReLEx smile and Femto LASIK); (ii) phakic lens (ICL) surgery; (iii) lens exchange surgery (which includes the monofocal and trifocal lens exchange surgery) and (iv) others (which include PRK/LASEK and ICRS implantation).

(1) Adjusted gross profit is derived from adding pre-operating expenses for two clinics in the People’s Republic of China (the “PRC”) in 2019 to the gross profit.
(2) Adjusted net profit is derived from adding pre-operating expenses for two clinics in the PRC, listing expenses and foreign exchange loss to the net profit for the year.

Universal Medical Announced its 2019 Annual Results

Revenue Achieved Surge by 58.6%, Proceed with Hospital Group Business

The board (the “Board”) of directors (the “Directors”) of Genertec Universal Medical Group Company Limited (the “Company” or “Universal Medical”) is pleased to announce the annual results of the Company and its subsidiaries (together, the “Group”) for the year ended 31 December 2019.

2019 ANNUAL RESULTS HIGHLIGHTS
– The revenue amounted to approximately RMB6,815.6 million, representing an increase of 58.6% as compared with that of approximately RMB4,296.9 million for 2018.
– The profit before tax amounted to approximately RMB2,211.9 million, representing an increase of 19.0% as compared with that of approximately RMB1,859.0 million for 2018.
– The profit for the year attributable to ordinary shareholders of the parent amounted to approximately RMB1,488.7 million, representing an increase of 10.1% as compared with that of approximately RMB1,352.2 million for 2018.
– The total assets amounted to approximately RMB57,852.5 million, representing an increase of 22.4% as compared with that of approximately RMB47,256.9 million as at 31 December 2018.
– The equity attributable to ordinary shareholders of the parent amounted to approximately RMB9,489.3 million, representing an increase of 13.0% as compared with that of approximately RMB8,395.6 million as at 31 December 2018.
– The return on equity was 16.65% and the return on total assets was 3.11%.

The year of 2019 was a crucial year for Universal Medical to construct a medical and health conglomerate, and push forward the implementation of strategic upgrading. Hospital group continued to expand and their medical finance business steadily developed, the foundation for building an advanced medical and health conglomerate is coming into form. In 2019, the Company revenue increased to RMB6,815.6 million, representing a year-on-year increase of 58.6%. Profit for the year increased to RMB1,634.4 million, representing a year-on-year increase of 21.0%. Profit for the year attributable to ordinary shareholders of the Company increased to RMB1,488.7 million, representing a year-on-year increase of 10.1%.

Further expand hospital group business

Hospital group is the most essential part of building a medical and health conglomerate. In 2019, the Company successively entered into project cooperation contracts with Ansteel Group, Pangang Group, CEC, CR State Asset and Yang Quan Coal Industry through formation of joint ventures or open market bidding, and continued to actively participate in the integration and takeover of medical institutions of SOEs. And the Company has comprehensively improved the medical technology, management efficiency and service capabilities of their hospitals by focusing on discipline construction, operation management, digitalization upgrading, supply chain management, hospital renovation and expansion, and the like.

As at 31 December 2019, the Company had signed contracts in relation to takeover of over 40 medical institutions (including 5 Grade III Class A hospitals and over 20 Grade II hospitals), with an actual capacity of over 15,000 beds. The Company had consolidated the accounts of 24 medical institutions (including 3 Grade III Class A hospitals and 12 Grade II hospitals). The hospital group business performance achieves breakthrough expansion, recorded income of RMB2,046.9 million, representing an increase of RMB1,915.2 million as compared to the previous year, and recorded profit for the year of RMB107.5 million, representing an increase of RMB115.3 million as compared to the previous year.

The Company actively extended its health industry chain around its hospital group. With respect to medical technology, the Company introduced the world’s leading medical device products, and effectively improved the medical technology of hospital customers. As to their medical digitalization business, based on their member hospitals, the Company focused on three key aspects, namely Internet-based healthcare services, smart hospital solutions, and medical big data and artificial intelligence services. By so doing, the Company continuously improved its Internet-based health platform and made great efforts to build an “online+offline” service model. Regarding supply chain management, focusing on the hospital business, the Company carried out construction and deployment of a medicine supply chain system and a management platform of transparent procurement of medical supplies; it also reviewed the use of drugs and medical consumables in each hospital, continuously improved business process and standardized the centralized procurement of regional pharmaceutical supply chains.

Steady development of finance and advisory business

The Company’s medical finance business mainly provides finance lease services for county-level public hospitals. In the past year, on the one hand, the Company continued to expand market development both in depth and width and continuously fortified its business foundation in the face of complicated and changing domestic and foreign financial environment and fierce market competition. On the other hand, the Company continued to strengthen risk control and actively adjusted its financing strategy, and achieved steady development of medical finance business. The Company’s advisory business includes industry, equipment and financing advisory services, and clinical department upgrade services for the prevention, treatment and rehabilitation of CVA and other major diseases with high prevalence. The Company relied on its expanding medical resource platform to improve partner hospitals’ medical technology service capabilities and management efficiency in accordance with specific stages of hospital operation and clinical department development’s characteristics.

In 2019, the finance and advisory business recorded revenue of RMB4,768.6 million, increased by 14.5% as compared to the previous year; recorded gross profit of RMB2,842.2 million, increased by 10.5% as compared to the previous year. Finance lease business recorded revenue of RMB3,807.2 million, increased by 18.4% as compared to the previous year; recorded gross profit of RMB1,890.0 million, increased by 14.6% as compared to the previous year; the net interest spread was 3.24% and the net interest margin was 3.74%, a high ranking among domestic competitors. As at 31 December 2019, the Company’s leased asset reached RMB49,785.6 million, representing an increase of 12.5% as compared with the beginning of the year; non-performing assets ratio was 0.90%, maintaining its leading position of asset quality in the industry.

In the future, Universal Medical will continue to focus on its strategic development direction in medical and healthcare sector and seize policy and market opportunities. Based on the concept of whole life cycle, the Company will strive to build a health industry closed loop centered on medical services and comprising medical finance, medical technology services, medical digitalization and industry chain extension businesses. The Company will actively explore medical and elderly care business, medical health insurance, medical engineering cooperation, regional inspection centers, logistics management and other sectors, and will continue to pool high-quality resources in the industry, improve the layout of the industry, strive to build a trustworthy medical and health conglomerate, and contribute to the construction of “Healthy China”.

About Genertec Universal Medical Group Company Limited
Genertec Universal Medical Group Company Limited (“Universal Medical”) is a diversified medical and health conglomerate focusing on China’s fast developing healthcare service sector, which was listed in Hong Kong in July 2015 (Stock code: 2666). With reliance on modern management concepts, professional teams, high-quality medical resources, solid financial strength and inclusive corporate culture, the Company strives to build up a medical and health conglomerate centered on medical services and engaged in medical finance, medical technology, hospital digitalization and industry chain extension businesses. The controlling shareholder of Universal Medical is China General Technology (Group) Holding Co., Ltd (“Genertec”). Genertec is one of the three central state-owned enterprises focusing on medical industry.

This press release is issued by Genertec Universal Medical Group Company Limited.

Q P Group Announces 2019 Annual Results

Adjusted Net Profit Increases by 28.4% to HK$91.9 Million;
Final Dividend of HK9.0 Cents per Share

QP20200324
Q P Group recorded a revenue of around HK$1,193.6 million for the year ended 31 December 2019. Among which, the sales of the web sales products increased 16.3% to approximately HK$103.5 million year-on-year. The Group operates five major websites, offering a variety of personalized products such as playing cards, board games, puzzles, baby keepsakes and different gift items.

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#, announced today the first annual results of the Group after its listing on the Main Board of The Stock Exchange of Hong Kong Limited on 16 January 2020.

During the year ended 31 December 2019, the Group recorded a profit attributable to equity holders of the Company of approximately HK$84.3 million, representing a surge of 65.3% from last year. Before taking into account the listing expenses, the adjusted profit increased by 28.4% to HK$91.9 million when compared with last year. Basic earnings per share were HK21.12 cents (2018: HK12.78 cents).

To share the Group’s achievements with shareholders, the Board of Directors proposed a final dividend of HK9.0 cents per share.

Business Review

During the year, the Group continued to maintain good business relationships with its major OEM customers, and recorded sustainable and stable growth in revenue of the web sales business. The total revenue of both OEM products and web sales products segments increased by 2.6% to HK$1,193.6 million from last year. Driven by the increase in sales orders placed by its largest customer, an international greeting cards publisher, the sales derived from OEM products increased to approximately HK$1,090.1 million. The sales of the web sales products increased to approximately HK$103.5 million, representing an increase of around 16.3% due to an increase in playing cards products orders.

The U.S. and Europe were the two largest overseas markets of the Group, accounting for 75.3% and 11.6% of the total revenue in 2019 respectively.

Meanwhile, the gross profit of the Group increased by 29.6% to HK$365.6 million in 2019, with the gross profit margin increasing to 30.6% from 24.3% in 2018. This increment was primarily attributable to the depreciation of the Renminbi against the Hong Kong dollar during the year and the increase in tax refund rate for export products announced by the PRC tax authorities.

Operation-wise, the Group outsourced some production processes of greeting cards products to two subcontractors in Vietnam during the year, which prepared it for further expansion of production capacity in various locations. It also accelerated business development in non-US regions by appointing its first sales representative in Europe to explore the European market. In addition, the Group strived to further penetrate the online market by continuously enhancing the functions and product options of its websites and digital marketing strategies.

Prospects

The global economy is expected to be hit by higher uncertainty with the recent outbreak of COVID-19 as well as the ongoing political, economic and trade tensions presented on a number of fronts. The Group reckons that the global economy will continue to experience stages of adjustment and is cautious about the outlook in the coming years.

The Group sees the web sales business as an important growth driver in the long run. Accordingly, it plans to continuously enhance its digital marketing strategies and the features and interfaces of its websites, and to develop websites in more languages, in order to expand its customer base and achieve continuous and stable growth in the web sales business.

The Group will continue to intensify the development of Industry 4.0 through continuous enhancement of automation and data exchange in manufacturing technologies and processes, with the aim to attain manufacturing and operational excellence.

Meanwhile, expansion of manufacturing capacities in Vietnam will be one of the Group’s key strategies in 2020. While the Group will continue to identify and engage subcontractors in Vietnam to perform end-to-end production, it is in the active process of identifying potential factory building for acquisition, with a target to set up its own production site in Vietnam by the end of 2021.

Mr. Cheng Wan Wai, Founder, Chairman, Executive Director and CEO of Q P Group concluded: “As a sustainable enterprise, we always try to seize every opportunity to expand our business scale and yield increased income. We also strive to diversify our production capacity in different regions in order to better cope with the challenges ahead. The Group remains confident about its prospects and expects the Listing would enhance the Group’s brand awareness and reputation, and eventually help attract potential local and international customers. We will continue to grow with the market and create satisfactory returns to our 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 its self-operated websites. 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/

Notes:
* Adjusted net profit is the net profit excluding listing expenses
# According to the ranking and market share of the leading manufacturers of paper-based tabletop game products and paper-based greeting cards in terms of export value, the PRC, 2018 in the CIC report

Media Enquiries
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Phoebe Leung Tel: (852) 2114 4172 Email: phoebe.leung@sprg.com.hk
Mandy Wong Tel: (852) 2114 4900 Email: mandy.wong@sprg.com.hk
Website: http://www.sprg.com.hk