600 million yuan! The leading API company has greatly expanded its production capacity

【Pharmaceutical Network Enterprise News】On September 21, Qianhong Pharmaceutical, the head enterprise of heparin API, announced that the company signed the "Changzhou Qianhong Pharmaceutical API Production Base Project Contract"
with the People's Government of Zhongxiang City, Hubei Province, on September 20.

The company intends to use its own funds to invest 600 million yuan in a new API production base project
in Zhongxiang City, Hubei Province.

The production base is divided into two phases of construction, after the project reaches production, it will form an annual production capacity
of 6.
5 tons of high-end antithrombotic drugs, 125 tons of crude pancreatic enzymes, 75 billion pharmaceutical proteases, 5 tons of targeted anti-tumor APIs, and 100 million pharmaceutical packaging materials.

For the purpose of this new project, Qianhong Pharmaceutical said that it will further expand the company's new drug and core product industry chain and enhance the company's core competitiveness
.

According to the data, Qianhong Pharmaceutical is a professional engaged in the research and development, production and sales of biochemical drugs, the company's main products include biological medicinal enzyme series products and heparin series of products two categories, the company has a relatively complete domestic heparin series of the whole industry chain
.

Qianhong Pharmaceutical's 2022 semi-annual report shows that the revenue in the first half of the year was 1.
137 billion yuan, an increase of 30.
23% year-on-year; Net profit attributable to shareholders of listed companies was RMB202 million, an increase of 126.
42% year-on-year; Net profit attributable to shareholders of listed companies, net of non-recurring gains and losses, was RMB147 million, an increase of 79.
21%
year-on-year.

Among them, the API series achieved operating income of 555 million yuan, an increase of 61.
87% year-on-year; The pharmaceutical series achieved operating income of 579 million yuan, an increase of 9.
44%
year-on-year.

The industry believes that the company's revenue growth rate of API series in the first half of the year is obvious, or boosted the company's confidence in the development of APIs, which has become the reason for
this large-scale expansion of production capacity.

From the perspective of the API industry to which it belongs, China is a big producer and exporter of APIs, and with the advancement of the new policy of medical reform and the transfer of global orders, the scale of China's API industry will continue to expand
.

In the short term, although the growth rate of industry profits has slowed down due to environmental factors, in the long run, there are still great opportunities for
API companies in the industry that are expected to integrate API preparations and CDMO.

In terms of preparations, Qianhong Pharmaceutical's active layout of heparin series preparation products has shown a good development trend
.

The semi-annual report shows that on the basis of successfully obtaining the approval of the consistency evaluation of enoxaparin sodium injection and successfully passing the on-site verification of the consistency evaluation of the consistency evaluation of the sodium heparin injection, the company completed the consistency declaration data of nadroparin calcium injection and reported it, and obtained the new specification approval of the glass pre-filled needle heparin sodium sealing injection, which is expected to further enrich the existing variety pattern and bring new economic growth points
for the company's future development.

On the evening of the announcement of the gratifying results, the company also disclosed the draft core employee stock ownership plan, and the source of the shares in the employee stock ownership plan is the remaining treasury shares in the company's 2019 repurchase
.

In 2019, Qianhong Pharmaceutical spent a total of 309 million yuan to repurchase 64 million shares of the company's shares, accounting for 5%
of the company's existing total share capital.

In June 2020, the company's shares used for the first phase of the employee stock ownership plan "Qianhong Pharmaceutical No.
2" were 34 million shares, and after the completion of the transfer of the shares of the first phase of the employee stock ownership plan, 30 million treasury shares remained, accounting for 2.
344%
of the company's existing total share capital.

The newly disclosed draft shows that the transfer price of the employee stock ownership plan is the average price of the company's repurchase of shares of 4.
83 yuan per share
.

The participants of the employee stock ownership plan are the directors, supervisors and senior personnel of the company, and the total number of people in the plan shall not exceed 15
.

However, the impact of the news of the new project did not bring significant stock price fluctuations
to Qianhong Pharmaceutical.

As of the close of trading on September 21, Qianhong Pharmaceutical's stock price fell by 1.
05%, the turnover rate was 1.
52%, the trading volume was 140,400 lots, and the turnover was 78.
8009 million yuan
.

In terms of funds, on September 21, the net inflow of main funds was 63.
5419 million yuan, and the net outflow of free funds was 2.
7254 million yuan
.

Disclaimer: Under no circumstances does the information herein or the opinions expressed in this article constitute investment advice
to any person.