Author: Charles Chua

Nissin Foods Delivers Outstanding 2019 Annual Results

Net profit jumped 22.2% with improved profitability;
Double-digit revenue growth in the PRC for two consecutive years

Mr. Kiyotaka Ando, Executive Director, Chairman and Chief Executive Officer of Nissin Foods
Mr. Kiyotaka Ando, Executive Director, Chairman and Chief Executive Officer of Nissin Foods

Nissin Foods Company Limited (the “Company”, and together with its subsidiaries, the “Group”; Stock code: 1475) today announced its annual results for the year ended 31 December 2019.

Revenue of the Group increased by 3.0% year-on-year (YoY) to HK$3,087.8 million (2018: HK$2,998.8 million), attributable primarily to organic growth in sales volume of its premium instant noodles in the PRC throughout the year advanced by expanded geographical coverage. The Group’s EBITDA grew by 11.7% YoY to HK$455.4 million (2018: HK$407.7 million) and EBITDA margin was 14.7% for the year (2018: 13.6%).

Profit attributable to owners of the Company increased by 22.2% to HK$251.0 million (2018: HK$205.4 million), representing a net profit margin of 8.1% for the year (2018: 6.9%). Profitability improved materially due to the improvement in operational efficiency in production as well as the result of localisation.

Basic earnings per share were 23.36 HK cents (2018: 19.13 HK cents). The Board has resolved to declare a final dividend of 11.7 HK cents (2018: 9.5 HK cents), representing a dividend payout ratio of 50.1% (2018: 49.7%).

Hong Kong Operations
Revenue from Hong Kong operations recorded HK$1,299.8 million (2018: HK$1,323.6 million), mainly due to the change in the product portfolio of the MC Marketing & Sales (Hong Kong) Limited (“MCMS”) business, but offset by the positive growth from the core instant noodles business especially in second half year subsequent to the price adjustment in July 2019. The profit of the segment recorded HK$100.0 million in 2019 (2018: HK$114.1 million), due to the surge in administrative expenses.

During the year, the Company focused on upgrading its product offerings to customers who demand innovative and better quality products.

As the market leader in the instant noodles segment, both “Cup Noodles” and “Cup Noodles BIG” product lines achieved satisfactory results with extended offerings of western flavours. Meanwhile, the famous “Nissin RAOH” brand was launched in the Hong Kong market with four classic flavours, enabling customers to experience and enjoy restaurant-quality instant noodles at home. In order to enhance its packaged noodles’ portfolio, the Group commenced the production of “Bar Ramen” and “Bar Udon” with its enhanced ramen production line. In addition, “Nissin Frozen Ramen” and “Nissin Frozen Udon” were launched to cater for customers who prefer home-made quality products.

For the non-instant noodles segment, the Group commenced the production and sale of made-in-Hong Kong granola products, which had a steady revenue growth in the reporting period. The “Kagome” brand also contributed meaningfully due to broader channel exposure.

PRC Operations
Revenue from PRC operations increased by 6.7% YoY from HK$1,675.3 million to HK$1,788.0 million, mainly attributable to the continual consumption upgrade into the premium instant noodles segment. The Group achieved double-digit revenue growth in RMB for two consecutive years as its signature brands continued to report organic revenue growth with a broader reach in its key operating regions, particularly in Eastern China such as Shanghai, Zhejiang and Jiangsu. The segmental profit increased by 43.0% to HK$210.6 million (2018: HK$147.2 million), attributed to the efficiency enhancement in relation to the increment in sales volume, the stringent control in production costs, and the benefits associated with the government stimulus measures introduced in 2019.

The Group used online platforms for its “Cup Noodles” brand by collaborating with a popular Japanese animation series “Sword Art Online” and launched a series of crossover products and online animations that target the youth market, in order to further enrich its brand equity and extend its product offerings. The Group also introduced its “Bar Ramen” under the “Demae Iccho” brand in the PRC for health conscious customers. On the non-instant noodles front, the production and selling of made-in-Hong Kong granola products, as well as “Kagome” vegetable and fruit juices had been commenced in the PRC with satisfactory results in the year.

In 2019, the Group signed an equity transfer agreement with Grandview China Holdings Ltd. to acquire its entire equity interest in UNI-INTEC (Zhuhai) Scientific Technology Co., Ltd.*. The Group intends to invest approximately RMB180 million to build a new production plant in Zhuhai subsequently for manufacturing packaging materials. The construction of the new plant will enable the Group to better mitigate production costs, as well as to have synergies with its existing production facilities and with our controlling shareholder.

Prospects
Looking ahead, although the decrease in number of tourists and the reduction in purchasing power in the coming year will pose increasing pressure for business operation, the Group will continue to ensure stable food supply to the community.

For the PRC operations, the outbreak of the novel coronavirus since January 2020 exerts downward pressure towards most travel, entertainment and retail industries as a whole. Economic growth in the PRC might be dragged severely as a result of the suspension in industrial production and the US-China trade dispute. Nevertheless, the Group will be able to expand coverage further into different geographical areas through a generally upward trend towards consumption upgrade into the premium instant noodles segment. The appeal of “Nissin Brands”, and in particular “Cup Noodles”, would enable the Group’s further expansion into the PRC market.

The Group will continue to maintain its progressive approach in expansion, as well as enhance its brand equity and maintain a premium pricing strategy in the PRC. Additional efforts would be made to further localise the Company to be more responsive to the rapidly changing environment.

Mr. Kiyotaka Ando, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “We continued to deliver an outstanding performance with improved profitability in 2019. It was against the backdrop of continuous social unrest locally and the lingering US-China trade dispute in the global arena. This is testimony to the strength and resilience of the Group and our people in taking on multitude of challenges and embracing the ever-changing market conditions. It also validates our strategic decisions in broadening our distribution channels and geographical landscape with premium products in the PRC while upgrading our product mix in Hong Kong.”

“However, the challenges are not over yet as the year was ended with Hong Kong officially entering into recession, the PRC’s GDP growth at its lowest since 1990, and globally under the threat of the Covid-19 epidemic. Whatever the situation, at Nissin Foods, we humbly take it as part of our corporate social responsibility in ensuring the stable and reliable supply of quality food products at all times. We believe that now is opportune time when our role as the ‘Earth Food Creator’ comes into full play. Thus, we would continue to invest in talent and our businesses to further strengthen our overall competitiveness to attain sustainable business growth,” Mr. Ando said.

Remark: * for identification purpose

For complete information, please refer to the company’s Annual Results Announcement available on the Hong Kong Stock Exchange website at:
https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0319/2020031900483.pdf

About Nissin Foods Company Limited
Nissin Foods Company Limited (The “Group”; Stock code: 1475) is a renowned food company in Hong Kong and the PRC with a diversified portfolio of well-known and highly popular brands and the largest instant noodle company in Hong Kong. The Group officially established its presence in Hong Kong in 1984. The Group primarily manufactures and sells instant noodles, frozen foods and other food products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium food brands. The Group’s five flagship product brands, namely “Cup Noodles”, “Demae Iccho”, “Doll Instant Noodle”, “Doll Dim Sum” and “Fuku” are also among the most popular choices in their respective food product categories in Hong Kong. In the PRC market, the Group has introduced technology innovation in the “ECO Cup” concept into the market and primarily focuses its sales efforts in first- and second-tier cities located in eastern and southern parts of the PRC. For more information, please visit www.nissingroup.com.hk.

For media enquiries:
Nissin Foods Company Limited
Public Relations Department
Blanche Wong / Ceci Leung
Email: pr@nissinfoods.com.hk

For investor enquiries:
Nissin Foods Company Limited
Investor Relations Department
Shingo Yamazaki / Peter Kwok
Email: ir@nissinfoods.com.hk

Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Carven Tsui Tel: (852) 2864 4859 Email: carvensm.tsui@sprg.com.hk
Cara Lau Tel: (852) 2864 4890 Email: cara.lau@sprg.com.hk

Asia Allied Infrastructure Concludes HK$1.25 Billion 3-year Term Loan Agreement

Solid business foundation in Hong Kong;
Winning long-term trust and support from banking community

Asia Allied Infrastructure Holdings Limited (“Asia Allied Infrastructure” or “the Group”) (stock code: 00711) is pleased to announce today that it has entered into a HK$1.25 billion term loan agreement with 5 banks. Part of the loan will be used to restructure the loan portfolio of the Group, while the rest will be used to support future operations and development. This facility will lower the overall finance cost of the Group, enhance its financial flexibility and funding capability.

The 3-year facility of HK$1.25 billion carrying an interest rate of HIBOR+1.65% was arranged by The Hongkong and Shanghai Banking Corporation Limited, China Construction Bank (Asia) Corporation Limited, CMB Wing Lung Bank Limited, Chong Hing Bank Limited and The Bank of East Asia, Limited.

Mr. Dominic Pang, Chairman of Asia Allied Infrastructure, said, “We would like to express our sincere gratitude to the banks for their trust and support to AAI. The new loan facility shows the banking community’s confidence in the Group’s solid business strategies in recent years. Though operating environment remains challenging due to factors including the recent outbreak of the coronavirus, we are confident that our long established business foundation will enable us to overcome these challenges. Building on AAI’s industry experience and a healthy financial position, we will continue to actively pursue set business strategies to capture market opportunities, enhance stakeholder value and delivery satisfactory returns to shareholders.”

Asia Allied Infrastructure Holdings Limited (stock code: 00711.HK)
Asia Allied Infrastructure Holdings Limited (“Asia Allied Infrastructure”) is listed on the Main Board of the Hong Kong Stock Exchange under stock code 00711. The Group operates businesses such as construction engineering and management, construction consultancy, property development and assets leasing, security and facility management, tunnel management, construction financing, premium safe deposit box leasing as well as an online construction materials procurement and management platform and a quality international education platform. Its subsidiary Chun Wo is a renowned construction contractor and property developer in Hong Kong. Chun Wo’s solid construction experience and professional capabilities have enabled the Group to seize suitable development opportunities, allowing the Group to enhance its overall profitability and investment value.

For press enquiries:
Strategic Financial Relations Limited
Cindy Lung (852) 2864 4867 cindy.lung@sprg.com.hk
Carven Tsui (852) 2864 4859 carvensm.tsui@sprg.com.hk
Desiree Shung (852) 2114 2200 desiree.shung@sprg.com.hk

Leading the Industry in Germany for Years, EuroEyes to Provide China with Vision-Correcting Power

EuroEyes was awarded “The World Champion in implanting the most Zeiss trifocal lenses worldwide”

This famous Chinese saying is believed to be the true portrayal of every successful company during its development phase. Standing on the top of the world, those are the companies that have undoubtedly succeeded more than their competitors to reach the peak.

EuroEyes opened its first ophthalmology clinic in Hamburg, Germany in 1993. Since this beginning, EuroEyes has combined technological innovation with exceptional service as it established itself as a leader in the field of ophthalmology and vision correction. As early as in 1986, Dr. Jorn Slot Jorgensen, the founder and chairman of EuroEyes, provided outpatient cataract surgery in Hamburg. Over three decades later, Dr. Jorgensen continues to use world-recognised and advanced diagnostic technology and equipment when treating patients. For the past 26 years, under the direction of Dr.Jorgensen, EuroEyes, has led the industry in advancing vision correction treatments. The company was one of the first to use innovative technologies such as LASIK surgery and phakic lens (ICL) surgeries in the field. In 2004, EuroEyes began using the more advanced blade-free LASIK and in 2014, the company added ReLEx SMILE to its services. EuroEyes has also led the industry by being one of the first-movers to offer Zeiss trifocal lens exchange surgery as a standalone treatment option to presbyopia in its 26 ophthalmology clinics located in Germany, Denmark and China.

No. 1 in the world
Within the international ophthalmology industry, EuroEyes’ achievements have long exceeded its peers. This is not merely reflected in its consistent top ranking in the industry for advanced lens exchange surgery and refractive surgery (excluding PRK / LASEK) in Germany and Denmark but also in the number of the cutting-edge vision correction operations performed. In 2018, EuroEyes was acknowledged by Staar Surgical for having performed the most phakic lens (ICL) surgeries in Europe. EuroEyes was also recognized by Carl Zeiss for having performed the most ReLEx SMILE procedures in Germany and the most trifocal lens exchange surgeries in the world for five consecutive years. Carl Zeiss is the leading German manufacturer of optical systems and optoelectronics with 37.6% of its revenue generated from the Trifocal lens. The ZEISS award reflects EuroEyes’ leading position in the global application of Trifocal IOL Implantation.

According to market analysis, the use of trifocal IOL implantation is an ideal treatment for presbyopia. Presbyopia usually occurs after the age of 45 when the eye lens loses its elasticity, making it difficult to focus on nearby objects. After the trifocal IOL implantation, patients with myopia and presbyopia can easily and clearly focus on near, medium and distant things without glasses. Furthermore, lens replacement surgery is an ideal treatment for cataracts eliminating the need to wear thick glasses or special contact lenses.

Huge opportunity for market growth as 560 million Chinese people predicted to have presbyopia by 2024
As people better understand the benefits of lens replacement surgery, the number of people undergoing the procedure around the world continues to rise. According to Frost and Sullivan, from 2014 to 2018, the market size of advanced lens exchange surgery and refractive surgery (excluding PRK / LASEK) in Germany and China increased at a compound annual growth rate (CAGR) of 9.3% and 37.8%, respectively. An aging population combined with an increasing desire for improved vision and quality of life, as well as increasing consumption power is motivating more and more people to undergo trifocal IOL replacement surgery. Industry analysts predict that from 2018 to 2023, the market size in Germany and China will expand at a CAGR of 7.2% and 29.5%, respectively.

According to the U.S. Census Bureau’s 2019 refractive surgery market report, 50% of Germany’s population have presbyopia while 36.4% of China’s population have the condition. With over 1.4 billion people living in China, approximately 505 million Chinese people have presbyopia. Industry analysts expect that by 2024, 39.6% of the population in China or about 557 million Chinese people will have presbyopia. Currently the penetration rate of the most advanced Trifocal IOL exchange surgery is very low in China. In 2018, the penetration rate in Germany was 4.3 times that of the Chinese market. In other words, China’s Trifocal IOL replacement surgery market has tremendous upside potential for growth.

Euroeyes has received the Zeiss Award for five consecutive years in recognition of the company’s excellent lens exchange technology and equipment, strong brand, and exceptional German medical standards and quality. The company is well positioned to provide Chinese customers with international leading lens exchange surgery as it becomes the go-to vision- correcting source in China. EuroEyes is in the early stage of rapidly expanding in the Chinese market. The company’s successful listing on the Main Board of the Hong Kong Stock Exchange Limited at the end of last year has provided them with the capital to open additional clinics. Within two months after listing, EuroEyes confirmed the expansion plan of two new eye clinics located in Chongqing and Fuzhou. The two new clinics combined the previous six clinics in Shanghai, Beijing East, Beijing West, Guangzhou, Shenzhen, Hangzhou, brings the total number of Euroeyes’ clinics to eight in total. The company intends to open two additional clinics in Chongqing and one in another top tier city in the future.

According to the company’s financial report, revenue generated from China in 2018 was about 94 million Yuan, accounting for 28.2% of the company’s global revenue. The CAGR for revenue and gross profit in the past three years were 85.1% and 633.7%, respectively. We are looking forward to announcing the full year performance for 2019!

CITIC Telecom CPC Helps Enterprises to Maintain Business Continuity with its Cloud Desktop and Remote VPN Connectivity Solutions

CITIC Telecom International CPC Limited (CITIC Telecom CPC), a wholly-owned subsidiary of CITIC Telecom International Holdings Limited (SEHK: 1883) announced its launch of remote working solutions (cloud desktop – Desktop-as-a-Service, DaaS; remote VPN – IPSec VPN and SSL VPN) which is fast to deploy and can allow enterprises to ensure business continuity. With the remote working solutions, staff can securely and stably connect to their enterprises critical systems through their smart devices. The solutions support cross-regional use including Mainland China, Hong Kong, Macau, Taiwan, Southeast Asia, and Europe. Enterprises staff can be assured of maintaining strong collaboration while working from home.

Taylor Lam, Vice President of Product at CITIC Telecom CPC said, “As the Coronavirus outbreak expands, we fully understand that enterprises need different ICT supports to help them cope with the difficult situation. As a trusted partner who cares for enterprises’ varying needs, we immediately provides free support and special remote connectivity offerings to both our existing and non-existing customers, joining hands with them to fight against the challenges.” “Recently, major cities in China are facing delay in resuming business operations and different levels of lockdown. In Singapore, travelers are advised to defer all travel to Hubei Province and a non-essential travel to Mainland China, Daegu and Cheongdo in South Korea. Many ASEAN countries has imposed an entry ban or travel restriction on a travelers, regardless of their nationalities who visit Hubei, Zhejiang and Jiangsu. These impose a big challenge for enterprises to maintain their business as usual. Besides, IT resources is another critical factor to support those staff who are undergoing home isolation or having work from home needs, so that they could be able to work remotely and seamlessly. Therefore, many multi-national companies (MNCs) are having huge remote VPN connectivity needs, insufficient resources, overload of remote desktop needs, and the difficulty of accessing companies’ critical systems when the staff is working from home,” Taylor emphasized.

To prepare for any unpredictable incidents or disasters happened in future, enterprises’ IT department could re-visit its monitoring and risk management capabilities so as to pose a solid foundation for any new challenges. “Although the outbreaks are mainly happened in Mainland China, the number of people infected in South Korea, Japan, Italy, Iran is rising quickly. MNCs are also facing travel bans from different countries which affect their business operations. It is vital for enterprises to review their cross-regional IT resources in order to plan ahead,” Taylor recommended. Cloud backup, off-site/cloud disaster recovery, IPSec VPN and SSL VPN are solutions that enterprises can consider to sustain business continuity in this challenging time.

From the recent situation with which work from home needs may extend to months, CITIC Telecom CPC found that both rapid solutions deployment and stable services are of equal importance to the customers. Enterprises also need to be aware of the impact that travel bans would bring to their businesses. CITIC Telecom CPC expects that the cloud desktop, IPSec VPN, and SSL VPN special offers that it launches could on the one hand protect enterprises’ staff from risk and break through the limitations of distance and locations, while on the other hand, enable them to adopt remote working model and enjoy the same experience as working in office with easy access to the company’s internal network and applications.

About CITIC Telecom CPC
We are CITIC Telecom International CPC Limited (“CITIC Telecom CPC”), a wholly owned subsidiary of CITIC Telecom International Holdings Limited (SEHK: 1883), serving multinational enterprises the world over by addressing their specific ICT requirements with highly scalable tailored solutions built upon our flagship technology suites, comprising TrueCONNECT(TM) private network solutions, TrustCSI(TM) information security solutions, DataHOUSE(TM) cloud data center solutions, and SmartCLOUD(TM) cloud computing solutions.

As a leading Global Local ICT Solutions Partner with worldwide footprint across East to West and native presence, we truly live our motto, “Innovation Never Stops.” Being a preferred Digital Society Enabler, we lead our key markets at the forefront of pioneering ICT development, embracing AI, AR, Big Data, IoT, and other cutting-edge emerging technologies to transform technical potential into real-world value for our customers, helping them achieve higher productivity, agility, cost-efficiency, and ultimately, Digital Globalization.

As one of the first managed service providers in Hong Kong to achieve ISO 9001, 14001, 20000, 27001, and 27017 ICT-related certifications, CITIC Telecom CPC delivers on our superior quality commitment through a broad global self-managed infrastructure encompassing some of the highest growth markets in Asia, Europe and America, with over 140 points of presence, 18 Cloud service centers, 30+ data centers, and two dedicated 24×7 Security Operations Centers.

For more information please visit www.citictel-cpc.com

Media Contact:

Rowena Leung
CITIC Telecom International CPC Limited
(852) 2170 7536
Email: rowena.leung@citictel-cpc.com

June Tay
CITIC Telecom International CPC Limited
(65) 6692 8357
Email: june.tay@citictel-cpc.com

SMC Electric Limited Announces Proposed Listing on Main Board of The Stock Exchange of Hong Kong Limited

Share offer of 375,000,000 ordinary shares at between HK$0.335 and HK$0.380 per share expected to raise net proceeds of approximately HK$44.7 million

SMC Electric Limited (“SMC Electric” or the “Company”, together with its subsidiaries, collectively referred as the “Group”) has recently announced the details of the proposed listing of its shares on Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”) (the “Share Offer”).

Investment Highlights
– Long history in the PRC-based electric tools and electric fans export industry.
– Stringent quality control.
– Established relationships with reputable overseas customers.
– Close relationships with customers and reliable suppliers.
– Cost effective production operations.
– Highly experienced professional management team.

SMC Electric plans to offer a total of 375,000,000 shares, subject to re-allocation, comprising 187,500,000 Public Offer Shares and 187,500,000 Placing Shares (comprising 187,500,000 sale Shares), at an Offer Price range between HK$0.335 and HK$0.380 per Offer Share. The Public Offer opened at 9:00 a.m. on Saturday, 29 February 2020 and will close at 12:00 noon on Friday, 6 March 2020. The allotment results will be announced on Monday, 16 March 2020. Dealings in shares on HKEx are expected to commence on Tuesday, 17 March 2020, under the stock code 2381.

Red Sun Capital Limited is the Sole Sponsor. Joint Bookrunners are Futu Securities International (Hong Kong) Limited, CMBC Securities Company Limited, Essence International Securities (Hong Kong) Limited, First Shanghai Securities Limited, Guosen Securities (HK) Capital Company Limited, Guotai Junan International Limited, Red Sun Capital Limited and Shanxi Securities International Limited.

Company Overview

SMC Electric engages in the (i) manufacturing and selling of rechargeable electric tools and (ii) sourcing and selling of electric fans. The Group is headquartered in Hong Kong with its manufacturing operations in the PRC. SMC Electric sells a range of rechargeable products including fans, work lights, vacuum cleaners and other electric tools.

Business Model

SMC Electric manufactures and sells a wide range of rechargeable electric tools including cordless fans, work lights, vacuum cleaners and other electric tools mainly to the U.S. and sources and sells electric fans for oversea customers and under the Group’s own brand name, “SMC”.

SMC Electric chooses to manufacture rechargeable electric tools sold to the U.S. customer due to the relatively more stringent quality standard required by its customers, and a relatively higher level of technical difficulty needed in the products’ production process. However, as the design and production of the Group’s electric fans have matured and stabilised, SMC Electric has outsourced the production process to its suppliers, who are manufacturers, to help produce such electric fans.

Financial Highlights
The total revenue of the Group was approximately HK$217.1 million, HK$251.0 million, HK$266.1 million and HK$228.7 million for FY2016, FY2017, FY2018 and 9M2019, respectively. The net profit of the Group was approximately HK$23.9 million, HK$31.2 million, HK$34.6 million and HK$42.1 million for FY2016, FY2017, FY2018 and 9M2019, respectively.

The net profit for the year increased by approximately HK$11.1 million or 35.6% from approximately HK$31.0 million for 9M2018 to approximately HK$42.1 million for 9M2019. The net profit margin increased from approximately 15.4% in 9M2018 to approximately 18.4% in 9M2019.

The profit of the Group for the year of 2019 profit estimate is not less than HK$44.5 million.

Competitive Strengths

The Group believes that its success is attributable to the following competitive strengths:

Firstly, the Group is one of the long-established suppliers of electric fans in the PRC electric fans industry, and therefore is well positioned in capitalising on the growth in overseas fans market. Moreover, SMC Electric has established its own brand of electric fans, “SMC”, since the 1950s. Through the Group’s sales and marketing of the “SMC” brand over the years, SMC Electric has been able to expand the sales of such electric fans to different overseas markets, including different parts of Asia, Africa and Oceania.

In addition, the Group places top priority on the quality of its products. SMC Electric has developed and implemented stringent quality control procedures to ensure that every stage of production adheres to its high quality standards, including tests on raw materials, work-in-progress as well as finished products.

The Group also maintains long-term business relationships with various large-scale customers. Such long-term relationships with its customers, supported by its strong positioning in export of rechargeable electric tools, distinguish the Group from its competitors in the PRC which similarly manufacture and export electric tools to overseas markets.

Moreover, the Group believes that its dedication to quality rechargeable electric tools and electric fans and competitive pricing over the years have contributed to its long-term relationships with its customers. In relation to the Group’s top five customers, the Group has had a working relationship ranging from approximately 10 to 18 years. The Directors believe that the Group can leverage on its established relationship with its customers to further develop new business opportunities in the rechargeable electric tools and electric fans industries.

Besides, the Group has electric tools production facilities in Shunde, Foshan, Guangdong Province, the PRC. The Directors believe that the Group’s operation allows it to maintain a highly competitive cost structure as it is able to benefit from economies of scale, cost effectiveness and efficiencies in its operations. The Group’s efficiency in its purchasing of raw materials including electric motors and moulds enhances the Group’s bargaining power to negotiate better prices on such raw materials.

Last but not least, the Group’s senior management team has extensive industry experience including raw materials sourcing, manufacturing, staff training and development, sales and marketing, and corporate governance. The Directors believe that the depth and breadth of the complementary experience of the management team enhances the Group’s capability in delivering quality products and providing high calibre services to its customers, which in turn help to achieve its business objectives.

Mr. Yung Kwok Kee Billy, Non-Executive Director and Chairman of SMC Electric concluded, “We are pleased to witness this significant milestone in the Group’s history. Through our listing on the Main Board of HKEx, we will tap into the international capital markets. This will not only broaden our capital and shareholder base, but will also provide us with capital to fund our expansion plan, which will finally strengthen our position in the industry and further enhance our competitive advantages, thereby driving the Group’s long-term development.”

For further enquiries, please contact Bright Communications International Limited:
Ms. Ashley Kung
Mobile: (852) 6608 9927
Email: ashley.kung@brightcommns.com

Factsheet

Details of Share Offer:

Number of Offer Shares: 375,000,000 Shares
Number of Public Offer Shares: 187,500,000 Shares (subject to re-allocation)
Number of Placing Shares: 187,500,000 Shares (comprising 187,500,000 Sale Shares) (subject to re-allocation)
Offer Price Range: Between HK$0.335 and HK$0.380 per Offer Share
Board Lot Size: 6,000 Shares
Nominal Value: HK$0.01 per Share
Public Offer Period: Saturday, 29 February 2020 – Friday, 6 March 2020
Announcement of Allotment Results: Monday, 16 March 2020
Expected Listing Date: Tuesday, 17 March 2020
Stock Code: 2381

Use of Proceeds:

The aggregate net proceeds from the Share Offer (after deducting underwriting fees and estimated expenses payable by the Group in connection with the Share Offer), assuming an Offer Price of HK$0.3575 per Offer Share, being the mid-point of the indicative Offer Price range of HK$0.335 to HK$0.380 per Share, will be approximately HK$44.7 million. The Group currently intends to apply the net proceeds from the Share Offer in the following manner:

Use of Proceeds / % of Net Proceeds
Improvement of the Group’s efficiencies in its daily operations: Approximately 14.1 %
Strategically expanding the Group’s manufacturing capabilities: approximately 62.9 %
Devoting resources on new products and applications: Approximately 23.0 %

Track Record:

HK’000 For the year ended/as at 31 December For the period ended/as at 30 September
FY2016 FY2017 FY2018 2019
Revenue 217,110 250,982 266,056 228,708
Gross profit 60,497 71,055 80,739 71,826
Gross profit margin 27.9% 28.3% 30.3% 31.4%
Profit before tax 29,627 38,876 44,778 52,210
Profit for the year 23,917 31,206 34,628 42,066
Net profit margin 11.0% 12.4% 13.0% 18.4%
Listing expenses – – 5,340 5,502
Profit before listing expenses 23,917 31,206 39,968 47,568

Kingworld Medicines Seizes the Opportunity Foster the Diversified Development of Product Specifications

Proactively Developing Down-market Penetration & Promoting Big Data Information Technology

Kingworld Medicines Group Limited (“Kingworld Medicines” or the “Group”, stock code: 01110.HK), a globally leading and well-known omni-channel enterprise with a complete supply chain in the greater healthcare products and services industry in China, has announced its unaudited annual results for the year ended 31 December 2019 (the “Year Under Review”).

For the Year Under Review, the global economic environment is complicated and aggravated the downward pressure on the Chinese economy. The Group continued to monitor changes in the domestic and foreign environment and optimise its product portfolio while continuing to develop down-market penetration in different channels and strengthening channel management to explore market niches and expand product coverage. For the Year Under Review, facing the financial volatility and uncertainty in China and abroad, the Group’s total revenue slightly decreased by 9.4% to approximately RMB977,928,000, profit attributable to owners of the Company increased by 5.9% to approximately RMB43,427,000 and basic earnings per share increased by 6.1% to approximately RMB7.00 cents. For the Year Under Review, revenue from the pharmaceutical products segment amounted to approximately RMB633,700,000, accounting for 64.8% of the Group’s total revenue. Revenue from the healthcare products segment was approximately RMB151,114,000, accounting for 15.5% of the Group’s total revenue. Revenue from the medical devices segment amounted to approximately RMB193,114,000, accounting for 19.7% of the Group’s total revenue.

Mr. Zhao Li Sheng, Chairman of the Board of Kingworld Medicines, said, “During the Year Under Review, both the domestic and global economic environment are complex and challenging which have slowed down global economic growth. Social unrest in Hong Kong and subsequently the outbreak of coronavirus (COVID-19) epidemic caused more uncertainties in the overall economic development in China. Facing the uncertainty in the macroeconomic environment, the Group continues to provide customers with high-quality healthcare products, has seized market opportunities, and bolstered its competitive advantages to achieve steady development. In 2019, the Group geared up for further penetration of various product channels to widen the product coverage in third- and fourth-tier cities and rural villages, which can further expand the exploration to the market gaps.

For the pharmaceutical products segment, the Group continued to undergo channel optimisation for the Nin Jiom product series. By leveraging its brand appeal and product reputation, Nin Jiom has expanded the market into lower-tier cities and enhanced terminal coverage for the products as well as the cooperation with regional pharmacy chains, so that more consumers can enjoy the benefits of Nin Jiom products. The Group actively coordinated with Nin Jiom and conducted various large-scale promotional events and new media brand promotion activities which aimed at cultivating younger consumer group as well as consolidating the loyalty of old customers and injecting a contemporary sense into the brand. During the Year Under Review, the China Pharmaceutical Enterprises Cooperation and Development Organisation Summit (“the CPEO Summit”) announced that “Nin Jiom” ranked 18th in the “Brand. Value Ranking”, with a brand value of RMB3.989 billion. In addition, the Group implemented orderly marketing activities and maintained a stable price for Taiko Seirogan from Japan, another core product of the Group’s pharmaceutical segment. The Group through full-scale distribution and market perpetration and product display in key areas, as well as through different product deployment activities to expand its market coverage. As for branding promotion, the Group placed large billboard advertisements in high-traffic areas such as alongside busy roads in cities, trains and advertising campaigns at high-speed train stations. In addition, the Group also launched online e-commerce promotional events with various cooperative companies or e-commerce platforms, mainly including JD.com, Alibaba Health, and Dingdang Medicine Express, in order to facilitate integration of its online and offline channels.

For the product series of medicated oils for external use, Kingworld Imada Red Flower Oil made breakthrough development in channel, terminal sales and brand promotion. Kingworld Medicines strived to strengthen the cooperation with downstream enterprises, so as to enlarge the market coverage of the product. As for terminal sales, the Group enlarged the deployment of products in terminal retail stores to increase market coverage. The Group also offered bundled-gift purchase activities for consumers during major festivals to improve terminal sales and boost brand influence. As for brand promotion, the Group proactively supported a variety of sports events and continued to offer product trial packs and offer massage service of Kingworld Imada Red Flower Oil to the residents in major communities. Through providing direct experience with its products to consumers, both the product recognition and purchase confidence were enhanced. For the Mentholatum series, the Group increased its market share through product deployment activities, concentrated display activities in prioritised major cities and staff training and customer education activities. And as for Hoe Hin White Flower Embrocation, the Group actively participated in marketing activities during shopping festivals on e-commerce platforms and offered gift-with- purchase activities for consumers during major festivals to improve terminal sales and brand influence.

In terms of the Healthcare Products Segment, the sales volume of Lifeline Care maternal and infant fish oil nutrients product series from Norway, another star healthcare product of the Group has significantly increased. During the Year Under Review, the Group formulated comprehensive promotional strategies for Lifeline Care maternal and infant fish oil, which mainly included establishing strategic cooperation with cross-border e-commerce platforms and maternal and infant public accounts, so as to reach a wider group of target audience. The Group captured the trend of promotion platform by cooperating with key opinion leaders (“KOL”) to raise hot topics on different promotion platforms like Xiaohongshu and Kaola.com. Meanwhile, the Group through recommendations from professional doctors, maternal and infant experts and celebrities, consumers’ trust in our brand was greatly enhanced. Lifeline Care maternal and infant fish oil nutrient product series gained well-deserved reputation towards its brand and products. For the Culturelle Probiotics product series, the Group adjusted its marketing strategy accordingly and invested the core sales resources for the development of the product in the Hong Kong and Macao markets in 2019. In addition, the Group plans to launch collaborative project in probiotics with the Hong Kong University of Science and Technology (“HKUST”). HKUST’s research and development capability with the Group’s analysis and expertise regarding the future market trends. The cooperation aims to develop Chinese medicines with probiotics and anti-inflammatory properties in order to expand its product line and accommodate various demands of a broader spectrum of consumers.

Kingworld Medicines actively carried out channels reform. In view of the uneven development of urbanisation in second- and third-tier cities, the Group proactively refined its target markets. For the Year Under Review, the Group proactively developed down-market penetration to different channels, strengthening channels management, exploring untapped market niches and expanding the product coverage to meet the consumption needs of domestic consumers while further improving channel marketing and customer loyalty. During the Year Under Review, the distribution network of the Group increased from 200,000 to 210,000 OTC retail pharmacies, which shows the channel optimisation efforts have achieved significant results.

Looking ahead, the macroeconomic environment is more complex and volatile. The uncertainty of the Sino-US trade negotiations and the continuous initiation by the Chinese government of new policies related to the pharmaceutical industry make the industry’s prospects more challenging. Facing changes in the business environment, market and consumption patterns as well as technology, Kingworld Medicines strives to seize opportunities presented by the favourable policies toward the vigorous development of the Chinese medicine industry in China. The Group actively engages in further cooperation with long-established traditional Chinese medicine manufacturers. The Group will utilise the scientific big data analysis of the Market Sales Traceability Management System (the “SMART System”) to accommodate to the changes in consumers’ needs and competitive landscape and set up comprehensive marketing plan and distribution for each product portfolio of the Group. In the future, the Group will continue to develop channels in lower-tier cities. Through the “SMART System” together with its upstream and downstream integrated supply chain and logistics, the Group will further enlarge its product coverage and reach in third- and fourth-tier cities and explore untapped markets, so as to increase market share and profitablity.

Mr. Zhao concluded, “The domestic and global economic environment are complex and challenging in 2019. At the end of the year, affected by COVID-19 outbreak, the overall sentiment of the market is poor, and the Group also encountered opportunities and challenges amidst the turbulence. The Group will continue to adhere to its motto of “to serve the community and to heal the souls”, and continuously source home healthcare products for consumers. The “Pu Ji Kang Gan Granules” can be applied to upper respiratory tract infections. The product is highly efficacious with limited side effects and can help to prevent and treat virus infections. In the future, the Group will enlarge its existing product categories, including anti-epidemic items for households, such as face masks, disinfection supplies, hygiene goods, and strive to counter the epidemic together with the nation. Looking forward to 2020, Kingworld Medicines will further build a sound foundation and enhance competitiveness of its core products in an orderly and effective manner. The Group also focuses on cost control as it strives to maintain its profits, continues to develop a sound system in financial risk management and maintains sufficient cash flow, so as to protect the return on investment of shareholders and other stakeholders. In the future, Kingworld Medicines will continue to introduce new products while optimising its product structure, expediting the implementation of negotiated projects and enriching its product portfolio, At the same time, the Group will expand its development in the greater health industry in order to develop the Company to become a domestic leading and world-renowned enterprise with a well-established upstream and downstream supply chain for the greater health products and service industry.”

About Kingworld Medicines Group Limited

Kingworld Medicines Group is a globally leading and well-known omni-channel enterprise with a complete supply chain in the greater health products and services industry in China. It provides high-end logistics management service, B2C trading service and data service to major leading pharmaceutical and healthcare product suppliers, manufacturers and distributors, and is a pharmaceutical and healthcare product supply chain management service enterprise integrated with logistics, product and information flow. The Group’s business in the greater health industry includes: (i) an agent and distributor of high-quality and well-known pharmaceutical products from overseas, including the star product series of Nin Jiom product series from Hong Kong and Taiko Seirogan from Japan; (ii) actively introducing high-quality and well-known healthcare products from overseas into the China market, such as the star product Culturelle probiotics product series from the United States, Lifeline Care maternal and infant fish oil nutrient product series from Norway, “Global Slimming” product series and medicated oils for external use; (iii) undertaking research and development, manufacturing and production of medical devices. In terms of total import value, Kingworld Medicines Group was among the Top 100 Import Enterprises of Pharmaceutical and Healthcare Product for six consecutive years from 2009 to 2014, and was named as one of the Top 5 Sales Enterprises of Chinese Patent Medicine in terms of sales in 2013. The Group also ranked among Shenzhen Top 500 Enterprises in 2018 and 2019 respectively, and continued to be recognized as a “Shenzhen Time-honoured Brand” in 2019. The Group manages a portfolio of over 60 kinds of medicines and healthcare products manufactured in Hong Kong, Japan, the United States, Australia, Europe, Canada, Singapore and Mainland China, and has a distribution network covered about 210,000 OTC retail pharmacies.

For further information, please visit http://www.kingworld.com.cn/.

Oxford Medical Case shows Chiropractics can ease Dizziness and Neck Pain

Just 4 weeks of chiropractic adjustment stimulating proprioception helps people deal with physical pain and annoying dizziness, according to a new case report at Oxford Medical Case Reports.

Neck muscles have numerous interactions with balance and visual centers. Neck problems can alter orientation in space and cause a disturbance of equilibrium. Cervicogenic dizziness is the dizziness associated neck pain and cervical disorders.

A 24-year-old office worker suffered from intermittent neck pain and dizziness for 2 years. She sought help at New York Medical Group and experienced dizziness by moving her head in different motion. All her blood tests, X-rays and MRI could not confirm her symptoms and medication only provided partial relief.

“Cervicogenic dizziness is a seemingly simple complaint for many working adults, but it can be a controversial diagnosis because there are no specific tests for doctors to use,” says corresponding author Eric Chun-Pu Chu, chairman of Chiropractic Doctors Association of Hong Kong and author of the study.

The sensory inputs from the neck play an important role in head-eye coordination and postural processes. For example, fish do not have necks and their head and trunk move as one unit in one direction without dizziness. But human has a highly developed sensory system to receive signals and move our trunk. Neck proprioception provides the necessary information about head movements relative to the trunk.

Determining the cause of dizziness is crucial to tailoring the most appropriate treatment protocol. Ruling out neurovascular etiologies is equally important before starting the manual therapy to prevent any untoward events in dizziness.

Chiropractic adjustment has been shown to have benefits in treating many conditions such as headaches and numbness. But Chu and colleagues wanted to know whether a patient with cervicogenic dizziness might benefit from correction of neck posture.

Researchers tested the patient with cervical adjustment and thermal ultrasound therapy, with emphasis on restoring mobility to stiff joints and relieving muscle tightness. Restoration of the cervical curvature was demonstrable on cervical radiographs in the 7th month.

The effect of chiropractic adjustment and ultrasound therapy was effective enough, they found, that both pain and dizziness resolved after 4 weeks of treatments. Researchers found significant relationship between cervical pain and lordosis angle of < 20 degrees. After 18 months, the patient remained free of drugs and symptoms.

The stimulation of cervical proprioceptors and normalization of the afferent input were the result of manual therapy, the author noted.

“The resolution of neck pain or dizziness suggests there may be clinical benefits to chiropractic care in cervicogenic dizziness,” Chu says.

Source: Chiropractic Doctors Association of Hong Kong
Study: doi.org/10.1093/omcr/omz115
Dr Eric Chun-Pu Chu
Chairman@cda.org.hk
Chiropractic Doctors Association of Hong Kong

COMM’s New Project Launch Integrates Publisher and Hedge Funds on Blockchain

When people talk about the biggest scientific publishers, the names Nature and Science are always included. The ongoing blockchain revolution is incubating such an excellent publishing house, that brings together different ecosystems and integrates breakthrough technologies. COMM merges into its innovative ecosystem the wisdom of an elite publisher with the profit-making power of a hedge fund, compensating contributors to both branches generously.

As the issuer of COMM the digital currency, Crypto Commonwealth is considered to be a most ambitious blockchain project. Its vision is to create a community that incentivizes effort and quality of publications, with the ultimate goal to create a journal as successful as Nature and Science. The project claims to have a strong network of researchers in top universities, and plans to invite more of them to join, as well as funding their research in academia. They intend to distribute 100% net publishing profit back to the authors, editors and reviewers, paying for their contributions in their native token COMM. Excellent contributions make the ecosystem stronger, encouraging and inviting more people to play a part within as everybody looks for incentives.

The Commonwealth Publisher offers three columns and targets for varied reader groups. The professional column ‘Beta for Pros’ is expected to cover topics typical financial journals would discuss, including macro and micro dynamics, market inefficiency, behavioral finance, strategy research, risk management and more. COMM also has two more columns intended for generic readers that serve as educational resources and crypto knowledge base, ‘Beta for fun’ and ‘Crypto Insights’. They cover quantitative and fun crypto analysis, tokenomics and philosophies, as well as non-quantitative articles in the blockchain domain including crypto overviews, insights, token mechanism / algorithm, macro visions, blockchain techniques, etc.

The long term vision of the Commonwealth Publisher is to acquire high-quality, stable submissions and a good impact factor, then start charging subscription and publishing fees as any other commercial journals. More importantly, it plans to redistribute all profits after operational costs back to the authors, editors and reviewers. This is a closed cycle that is expected to nourish and sustain the ecosystem as it starts to gain momentum.

Crypto Commonwealth focuses not only on becoming a top tier publisher of all things, crypto or otherwise. It also envisions becoming a digital and traditional asset manager that outperforms BTC and the stock market in the long term. Its strategy construction follows the “trilemma in portfolio management”. Under this model three variables are considered: high return, low risk, and high capacity. Those who have some experience investing in traditional or crypto assets, either in IPOs, ICOs, IEOs or directly in the secondary markets have learned, maybe the hard way, that it is not possible to embrace these three vertices simultaneously. For COMM the presence of two of these factors excludes the third as well.

It is on this understanding that high return and low risk exclude high capacity, such as in alphas and high frequency trading. Crypto Commonwealth itself encompasses hedge funds including the alpha fund “Sphinx” and the smart beta fund “Stonybrook” under the high return and low risk classification. It offers detailed, professional suggestions to help investors make the most informed decisions on investment products. Profit will be redistributed into the ecosystem in decent proportion: up to 50% of management or incentive fee would be shared among excellent authors, portfolio managers, researchers and collaborators.

Strategy contributors can opt to be external or internal researchers. Internal researchers are expected to run backtests on the platform and submit alphas for centralized post-processing, including portfolio combination and optimization. However, this is by no means limited thereto. Upon proper evaluation, a certain amount of COMMs will be paid out as a reward, with a significant amount to be followed pending the alpha performance out-of-sample and in live trading. These of course are what could be considered the right steps to build a strong and wise community.

The COMM team has a strong background in global stock and crypto markets, having amassed a good number of lowly correlated strategies at their disposal. The project is seeking to tokenize them as soon as circumstances permit. Those who have been following the cryptocurrency market recognize that tokenization of other financial markets, like commodities, futures, stocks, currencies, bonds and real estate is promised to be even bigger in capitalization than all the current cryptocurrencies. A real pioneer in strategy tokenization, COMM will certainly build a supportive and productive atmosphere for portfolio managers across multiple markets to participate in its ecosystem.

A promising project, Crypto Commonwealth harbors the first scientific publisher and investment institute in house on blockchain. It’s well backed by a community of investors, scholars, researchers and engineers. With its global payment network in play, COMM endeavors to redistribute profits fairly among its contributing members and disrupt the traditional model in both fields, benefiting the COMMunity and the public.

Whitepaper: https://cryptosmartbeta.com/wp-content/uploads/docs/whitepaper_en.pdf
Twitter: https://twitter.com/CryptoSmartBeta
Facebook: https://www.facebook.com/Crypto-Commonwealth-102262581218579/
Telegram: https://t.me/Crypto_Commonwealth_Europe
Telegram channel: https://t.me/CryptoCommonwealth_ANN
LinkedIn: https://www.linkedin.com/company/cryptocommonwealth
Youtube: https://bit.ly/2wHQAU5
Instagram: https://www.instagram.com/crypto_smart_beta/

Crypto Commonwealth:
Katula Lamperouge
Inquiries: info@cryptocommonwealth.io
ICO site: cryptocommonwealth.co
Main site: cryptocommonwealth.io

Champion REIT Announces 2019 Annual Results

  • Distributable income reached HK$1,648 million, up 2.3%;
  • The portfolio continued to see positive rental reversion

Champion Real Estate Investment Trust (stock code: 2778), the owner of Three Garden Road and Langham Place, announces its financial results for year ended 31 December 2019.

Summary of financial results

FY 2019 FY 2018 Change
Total Rental Income (HK$ mil) 2,778 2,677 + 3.8%
Net Property Income (HK$ mil) 2,481 2,405 + 3.1%
Distributable Income (HK$ mil) 1,648 1,611 + 2.3%
Distribution per unit (HK$) 0.2666 0.2614 + 2.0%

Value as at 31 Dec 2019 31 Dec 2018 Change
Gross Value of Portfolio (HK$ mil) 81,178 83,135 – 2.4%
Net Asset Value per Unit (HK$) 11.04 11.42 – 3.3%
Gearing Ratio 18.0% 17.6% + 0.4pp

Overview
Champion REIT delivered a growth in distributable income by 2.3% to HK$1,648 million and distribution per unit (“DPU”) by 2.0% to HK$0.2666. The results once again demonstrated the complementary nature of the Trust’s property portfolio.

Three Garden Road
Three Garden Road achieved positive rental reversion, boosting the total rental income of the property to HK$1,512 million, up 8.7%. Occupancy of the property was 93.0% as at 31 December 2019. Given the gap between the market rents and expiring rents in 2019, passing rents of the property increased to HK$107.76 per sq. ft. (based on lettable area) as at 31 December 2019.

Langham Place Office Tower
Business performance of Langham Place Office was stable. Occupancy of the property stood high at 97.7% as at 31 December 2019 and market rents stayed put throughout 2019. Positive rental reversion was achieved, driving up total rental income by 7.2% to HK$375 million. Passing rents increased to HK$46.48 per sq. ft. (based on gross floor area) as at 31 December 2019.

Langham Place Mall
The slowdown in retail sales which started at the beginning of 2019 deepened in the second half of the year on flagging local economic conditions as well as drawn-out social unrest subsequently. Although passing base rents increased to HK$190.49 per sq. ft. (based on lettable area) as most leases were confirmed in advance, total rental income of the mall decreased 4.9% to HK$891 million due to marked decrease in tenant sales hence turnover rent in the second half of 2019. Rent concessions were considered on case by case basis. Despite the sluggish market conditions, the mall remained fully occupied as at 31 December 2019.

Financing
The Trust continued to take a proactive approach in liability management and further enhanced the credit profile. The Trust entered into interest rate swaps in favourable market windows to increase the fixed rate debt portion to 64.2% as at 31 December 2019 to mitigate interest rate risks.

Distribution
Amid the precarious business environment, the Trust nonetheless delivered a mild growth in distributable income by 2.3% to HK$1,648 million and DPU by 2.0% to HK$0.2666 (2018: HK$0.2614). Based on the closing unit price of HK$5.15 recorded on 31 December 2019, the total DPU represents a distribution yield of 5.2%.

Asset Value
The Trust’s investment properties as at 31 December 2019 were appraised at a total value of HK$81.2 billion, representing a 2.4% decrease from HK$83.1 billion as at 31 December 2018.

Outlook
The global economic uncertainties, exacerbated by the outbreak of the novel coronavirus (COVID-19), will adversely affect both the office demand and retail sentiments in 2020. As an externally oriented economy, Hong Kong will especially be affected by the pessimistic economic outlook and potentially deepening recession. With the ongoing political tensions in Hong Kong remain unsettled, the already weakening business environment is expected to weigh on both the office demand and retail sales performance.

Office demand, market rent and retail sales will retrench as businesses over all walks of life are severely impacted by the viral outbreak. While we are watchful of the challenges in the short term, our financial strength and discipline should allow us to weather the difficult period. Furthermore, we will continue to take a prudent approach in identifying diversification opportunities for external growth for the Trust globally in the coming year.

About Champion REIT (stock code: 2778)
Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour.
Website : www.championreit.com

Hua Medicine appoints Dr. Fuxing Tang, a former U.S. FDA Officer, as Chief Technology Officer

Hua Medicine, a leading clinical stage biotechnology company based in Shanghai, is pleased to announce that Dr. Fuxing Tang has joined Hua Medicine as Chief Technology Officer, VP of Formulation R&D and Product Development. He will also head up research and development functions for Hua Medicine in the United States.

Dr. Fuxing Tang obtained his Ph.D. in Pharmaceutical Sciences from the University of Florida. In addition, Dr. Tang conducted postdoctoral research in peptide delivery in Professor Ronald Borchardt’s group, which is well known for their work in Caco-2 cells. Before joining Hua Medicine, Dr. Tang worked in the pharmaceutical industry and regulatory affairs for 20 years. Dr. Tang worked as reviewer in the Office of Regulatory Science of the U.S. Food and Drug Administration, and worked in TEVA and Allergan as Global Director of Biopharmaceutical Sciences. Dr. Tang started his career at Forest labs, Inc. During his tenure at Forest labs, Inc/Allergan, Dr. Tang was instrumental in building various biopharmaceutical functions and in charge of multi-functions of ADME, preformulation, drug product process optimization and product post-approval manufacture process optimization.

Dr. Tang and his team made significant contributions in multiple successful IND/NDA filings and supported post-approval manufacturing for drug products such as Lexapro, Namenda, Namzaric, Linezess, Vraylar, Viberzi, among others, of which Lexapro, Namenda are blockbuster products with peak annual sales of US$2 billion. At Allergan/TEVA, Dr. Tang and his team supported drug development for both NDA and ANDA. Dr. Tang and his team significantly contributed to multiple first-to-files ANDA approvals such as doxycycline and abuse-deterrent-formulation (ADF) morphine sulfate.

Dr. Tang authored/coauthored more than 20 peer-reviewed research articles/patents across various fields, including organic synthesis, gene delivery, pre-formulation, formulation, and ADME studies.

“We are very excited to welcome Dr. Tang to join the Hua team, leading and accelerating new products development based on our glucokinase platform.” said Dr. Li Chen, CEO of Hua Medicine. “Dr. Tang is highly experienced in a broad range of drug discovery and development, and contributed to many important innovative and generic drug developments. He will help Hua Medicine expand dorzagliatin product pipeline globally and our engagement in R&D innovation in the United States.”

“I’m very excited to join Hua Medicine, a leading biotech company not only developing innovative medicine for patients worldwide, but also providing leadership in creating ecosystem in pharma R&D in China. By successfully developing dorzagliatin as a global First-in-Class diabetes medicine in China, Hua Medicine has greatly advanced the concept of “fix the sensor and remodel the glucose homeostasis” to treat diabetes,” said Dr. Tang. “It offers tremendous opportunity to expand its indications and production pipeline through innovation in the pharmaceutical sciences which will help many patients worldwide.”

Hua Medicine announced in November 2019 that the 24-week top-line results from its Phase III Monotherapy Trial (HMM0301) of HMS5552 (dorzagliatin) achieved its primary efficacy endpoint with desirable safety profiles. As HMM0301 will soon be completing its 52-week study, and Phase III Combination Trial (HMM0302) of HMS5552 add on to metformin is near completion of its 24-week study, Hua Medicine is expanding its pipeline into multiple combinations of dorzagliatin with existing oral and injectable anti-diabetic medicines. These efforts will significantly increase the value of dorzagliatin as a novel cornerstone therapy to stop diabetes and its complications.

About Dorzagliatin

Dorzagliatin is a first-in-class, dual-acting glucokinase activator, designed to control the progressive degenerative nature of diabetes by restoring glucose homeostasis in people with type 2 diabetes. By addressing the defect of the glucose sensor function of glucokinase, dorzagliatin has the potential to restore the impaired glucose homeostasis state of people with type 2 diabetes and serve as a first-line standard-of-care therapy for the treatment of the disease, or as a cornerstone therapy when taken in combination with currently approved anti-diabetes drugs.

About Hua Medicine

Hua is a leading, clinical-stage innovative drug development company in China focused on developing novel therapies for the treatment of diabetes. Founded by an experienced group of entrepreneurs and international investment firms, Hua advanced a first-in-class oral drug for the treatment of type 2 diabetes into NDA-enabling stage and is currently evaluating the therapy in adults with diabetes in two Phase III trials in China and various earlier stage clinical trials in China and the United States. Dorzagliatin has achieved its first primary endpoint in a Phase III monotherapy trial. The company has also initiated product life-cycle management studies of this novel diabetes therapy and advanced its use in personalized diabetes care. Hua Medicine is working closely with disease experts and regulatory agencies in China and across the world to advance diabetes care solutions for patients worldwide.