CSPC reports 32 percent rise in first half profit to $3.06 billion

Mainland drugmaker CSPC Pharmaceutical (1093) reported a 32 percent increase in first half net profit to 3.06 billion yuan (HK$3.68 billion).

Its interim dividend rose 33 percent to 8 HK cents per share. Total revenue rose nearly 10 percent to 13.8 billion yuan from a year ago. Of that amount, its finished drugs business - the major growth driver, contributing over 80 percent of total revenue - also rose 10 percent to 11.2 billion yuan. Its gross profit margin inched up 1.1 percentage points to 76.1 percent for the period, benefiting from an enhancement in the product portfolio of its finished drugs business, as well as increases in product prices of vitamin C bulk products.

Research and development expenses for the period rose 11 percent year-on-year to 1.613 billion yuan, accounting for 14.4 percent of the revenue from the finished drug business. The group said there are around 300 projects in the pipeline, of which 29 products are pending drug registration approval and 40 are under clinical trials.