Financial Associated Press (Beijing, reporter Xu Haidong intern Zhou Shicheng) news, Yuekang Pharmaceutical (688658.sh) general manager Yu Fei revealed at the company's 2020 annual performance briefing yesterday that the company's focus on the research project 1 new drug edinafil citrate (commonly known as domestic "Viagra") has completed all supplementary research, is waiting for on-site inspection, after on-site inspection can obtain listing approval. The "Yuelia" that has been widely concerned by the outside world is a cosmetics brand operated by the actual controller of the company, and there is no plan to inject it into the listed company.
Yu Fei said that the market space in the therapeutic field where aidenafil is located is huge, and the company will strengthen the academic promotion of products after the product is listed, enhance product brand awareness, and it is expected that the sales volume of the product will continue to increase after the listing, bringing new profit growth points to the company. Yu Weishi, chairman of the company, revealed that in addition to edenafil, the company currently has a new class of drugs ct102, hydroxysafflower yellow pigment a for injection and umustat hydrogen sulfate capsules, while the company also has other series of non-first-class new drug product echelons, and actively planning new products around the company's advantages in the treatment field.
According to the 2020 annual report of Yuekang Pharmaceutical, the company achieved an increase of 1.2% in operating income year-on-year, a net profit attributable to the mother increased by 54.89% year-on-year, and the gross profit margin of cardiovascular and cerebrovascular drugs and APIs showed a slight upward trend year-on-year. For the future of the national collection policy will affect the company's product gross profit margin, Yu Weishi said that the current national collection policy involves the company's main varieties of omeprazole enteric-coated capsules and metformin sustained release tablets, these two products mainly cover the provinces and cities of urban health service centers, township health centers, clinics, pharmacies and other grass-roots medical institutions and private hospitals, and the original market pricing is low, so the two varieties are not affected by the collection policy, revenue and profits are still growing.
At the exchange meeting, the company's operating cash flow in the first quarter of this year also attracted widespread attention from investors. According to the first quarter report of 2021, the net cash flow generated by the operating activities of Yuekang Pharmaceutical decreased by 114.98% year-on-year. In this regard, liu Yan, the company's financial director, said, "The reason for the negative operating cash flow in 2021q1 is the payment of more promotion and advertising fees, and the excessive inventory caused by the company's preparation for the Spring Festival." She further explained that in the first quarter of this year, the company focused on supporting the sales of cardiovascular and cerebrovascular drugs, and used more corresponding expenses to strengthen academic promotion and market development; and more stockpiles before the Spring Festival and the corresponding reduction in sales after the Spring Festival were also accidental factors that caused this situation.