Securities Daily | Haohai Biological Technology Sees Growth Both in Business Incomes and Net Profits by Endogenous Growth and Outreach Extension

Recently, Haohai Biological Technology has released its 2016 interim performance report. According to the report, the company has realized business incomes for RMB 373 M in the first half of the year, a year-on-year growth of 19.1%, and the most increase of business incomes was driven by the sale growth; the net profits excluding of exchange incomes were RMB 151 M, a year –on-year growth of 25.1%; the basic gains per share is RMB 0.95.

 

Haohai Biological Technology is positively exploring into the way combining outreach extension and endogenous growth by purchasing and integrating valuable asset subjects home and abroad while keeping developing main business and accelerating the R & D and innovation of endogenous growth.

 

According to a study report released by CFDA South Medicine Economic Research Institute, in 2015, Haohai Biological Technology further increased its market shares in terms of viscosupplementation products for osteoarthritis, anti-adhesion product and ophthalmic viscoelastic device domestically to 34%, 50.2% and 41.8% respectively, leading Chinese manufacturer of viscosupplementation products for osteoarthritis, anti-adhesion product and ophthalmic viscoelastic device; in addition, it has increased its market share of recombinant human epidermal growth factor products from 15.3% last year to 16.2% this year and ranking the No.2 of domestic recombinant human epidermal growth factor product manufacturers for successive two years.

 

Haohai Biological Technology has obtained remarkable performance in two new products while maintaining stable growth of sale volume of exiting core products. The data indicate, the medical aesthetics and would care products“ Matrifill” has realized income of over RMB 80 M in the first half of 2016, a year-on-year growth of 148.7%, close to the level of annual income in 2015. The medical chitosan for osteoarthritis has realized the incomes of RMB 37.07 M in the first half of 2016, a year-o-year growth of 37.5%.

 

In the first six months this year, Haohai Biological Technology has also made significant breakthrough in the respects including product R & D and new product registration. The new-type high-concentration ophthalmic viscoelastic substance products developed by the company independently is proposed to enter into the market by the end of this year with a CFDA product registration obtained in the first six months this year.

 

Currently, the second generation of cross-linked sodium hyaluronate product under Haohai Biological Technology as a kind of medical aesthetic product has passed through the clinical experiment and in the phase of declaration for CFDA medical instrument registration and the third generation is also in the clinical experiment phase. In 2015, Chinese Medical Aesthetics market has created incomes for RMB 500 B, nearly 20% of RMB 3 T, the total value of global market, Wu Jianying, executive director & GM of Haohai Biological Technology said, facing the demand of Medical Aesthetics market worth trillions of RMB, Haohai Biological Technology will exert the serialized and differentiated combinative effect of the first three generations of cross-linked sodium hyaluronate products in full to meet increasingly specified clinical demand.

 

Besides the endogenous growth in four major therapeutic areas, Haohai Biological Technology is positively seeking for strategically significant subject of the merger. According to the plan, taking artificial lens as a break, by purchasing and integrating domestic and international strategically significant, reasonably evaluated merger objects, the company is moving toward to the ophthalmic industry with high value added to enrich the ophthalmic product lines and realize outreach growth.

 

“2016 is the second year since Haohai Biological Technology was listed and also a period for Chinese medicine and medical industry to see opportunities and challenges. In the tide of reform aiming at eliminating outdated production capacity, the enterprise differentiation will get obvious among different levels and those enterprises advantageous in scale, technology, brand image and marketing will face significant opportunities for development.” Wu Jianying said.