Featured API supplier plans to IPO on GEM: nearly 1.2 billion yuan will be raised for API and other projects

Recently, it has been reported that Hubei Hendy Pharmaceutical Co.
, Ltd.
(abbreviated as "Hengdy Pharmaceutical") plans to be listed on the Shenzhen Stock Exchange’s Growth Enterprise Market.
For the Profen API project, RMB 290 million will be used for the project with an annual output of 1,200 tons of APIs, RMB 175 million will be used for the project with an annual output of 12 tons of anti-tumor APIs, and RMB 150 million will be used to supplement working capital projects
.
Hendy Pharmaceuticals is a specialty API supplier.
According to the prospectus, the company is mainly engaged in the research and development, production and sales of chemical APIs and preparation products
.
After years of accumulation, it has formed a product system with non-steroidal anti-inflammatory raw materials as the core, cardiovascular, anti-tumor and other specialty raw materials as auxiliary products.
At the same time, combined with the advantages of its own industrial chain, it actively expands the technical content and added value.
R&D, production and sales of higher-featured APIs and preparations
.
Specifically, the company's bulk drug products are mainly non-steroidal anti-inflammatory bulk drugs ibuprofen and dextroibuprofen, cardiovascular bulk drugs torasemide and milrinone, and anti-tumor bulk drug abirate acetate Dragon, fludarabine phosphate and granisetron hydrochloride
.
From the perspective of the development of the API industry, China is a major producer and exporter of APIs.
The domestic production technology is mature, the product variety is complete, and the production capacity is sufficient.
Among them, the market concentration of ibuprofen APIs is high, and the competition pattern of manufacturing enterprises is good
.
According to statistics, in 2019, in terms of China's ibuprofen export sales, Hendy Pharmaceuticals accounted for more than 30%, and it also accounted for nearly 40% in the domestic market.
It can be seen that Hendy Pharmaceuticals has Dominant position
.
It is understood that Hendy Pharmaceuticals has become a long-term and stable specialty API supplier for many large multinational pharmaceutical companies with its good product quality and strict quality control system
.
At present, the company has enjoyed a high corporate reputation and influence in regulated markets such as the United States, Europe, and Japan, and has cooperated with Pfizer, Sanofi, Johnson & Johnson, GlaxoSmithKline, Takeda, Teva Pharmaceuticals, Mylan, Abbott, Industry giants such as Sun Pharmaceuticals, Otsuka Pharmaceuticals, Indian Grameen, Induken, and Fieberbrunn have formed long-term and stable strategic partnerships
.
It is worth mentioning that in recent years, due to factors such as the decline in the price of ibuprofen, Hendy Pharmaceuticals’ performance growth has continued to slow down or even decline. .
The prospectus shows that Hendy Pharmaceutical's revenue in 2018, 2019, and 2020 will be 517 million yuan, 660 million yuan, and 591 million yuan respectively; the 2021 semi-annual report shows that the company achieved revenue of 277 million yuan in the first half of the year
.
In the same period, the net profit of Hendy Pharmaceutical was 91.
48 million yuan, 185 million yuan, and 168 million yuan respectively; the net profit in the first half of 2021 was 68 million yuan
.
In addition, October is the period when major companies intensively disclose the three quarterly reports.
Hendy Pharmaceuticals estimates that the operating income from January to September 2021 will be about 390 million yuan to 410 million yuan, a year-on-year decrease of about 2.
97% to 7.
71%; the net profit in the same period is about 90 million yuan to 100 million yuan, a year-on-year decrease of about 22.
80% to 30.
52% from January to September 2020
.
Regarding the reasons for the decline in performance in the first three quarters, the company said that the main reason was that the sales price of ibuprofen APIs in the international market fell to a certain extent after the full resumption of production by its rival BASF
.
In terms of marketing expenses, the prospectus shows that from 2018 to 2020, its marketing expenses accounted for 75.
79%, 77.
59% and 66.
25% of the current sales expenses respectively, which were all higher than 50%.
The total three-year marketing expenses were 85,913,900 yuan
.