Operating Income of Yiling Pharmaceutical in First 3 Quarters Reaches CNY 8.112 Billion, Up 25.81%

SHIJIAZHUANG,China,Oct. 29,2021 -- Yiling Pharmaceutical released the three-quarter report on the evening of October 28. In the first three quarters,the operating income of the company reached CNY 8.112 billion,up 25.81% year on year; the net profit attributable to shareholders of the listed company hit CNY 1.224 billion,up 20.43% from the previous year,surpassing that of last year as a whole; the weighted average return on equity was 13.40%,up 1.22 percentage points over the same period last year.

In terms of marketing,the company has always adhered to academic promotion,relied on existing product lines,continuously integrated internal and external resources,optimized the sales management model,strengthened the professional construction of the sales team,and continuously advanced the optimization and upgrading of the marketing system. Benefiting from the "Construction of TCM Collateral Theory and Its Guidance for Prevention and Treatment of Microangiopathy" which won the First Prize of the National Science and Technology Progress Award in 2019,the company's cardiovascular and cerebrovascular products achieved accelerated growth and its market share continued to rise. In addition,the company's second-tier products were continuously promoted by the company's academic and social brands,and the marketing system was optimized and upgraded,realizing rapid growth.

In terms of R&D,in the first three quarters of this year,the R&D expenditure amounted to CNY 538 million,with a year-on-year increase of 37.86%,which was higher than the growth rate of the operating income,showing that the company continued to increase R&D investment and the efficiency of R&D output also continued to improve. In terms of TCM,the company strengthened the establishment of the evidence system for registration and evaluation of TCM,which integrates TCM theory,human experience and clinical trials,continued the core theoretical advantages and systematic R&D advantages of TCM,and continuously enriched the R&D array of TCM varieties. The company's patented new drug Tablet for Tonifying Kidney,Nourishing Heart and Tranquilizing Mind used for the treatment of insomnia was approved for marketing in September. Besides,Suxia Capsule for Dispel Melancholy and Relieving Restlessness used for the treatment of mild and moderate depression was filed for production in March. The company is expected to achieve a breakthrough in the nervous system field. Moreover,Lianhua Qinggan Granule for Children was approved to enter the clinical study stage. The company also introduced Rujietai products,enriching the product lines and filling in a gap in the field of gynecological products. In terms of chemical drugs,Felbinac Trometamol,a new drug in Category I,passed the CDE publicity and entered the third clinical stage. It is expected to become the company's first approved new drug in Category I of chemical drugs.

According to the latest research report released by Ping An Securities,Yiling Pharmaceutical's Lianhua Qingwen boasts a solid customer base in the antivirus field,and its market share continues to increase; its second-tier products are at the market expansion stage,with steady sales growth. Dongxing Securities believes that,based on the exclusive theory of collateral disease,the company has built core product lines of major varieties of Chinese patent medicines such as cardio-cerebrovascular series of products and Lianhua Qingwen series of products; the second- and third-tier products are also rich in varieties; the channel sales and promotion capabilities in the end-use market are also the company's unique advantages; at present,the structural adjustment of the company's sales staff have been completed in line with the product lines,and the number of sales staff has greatly increased; the refined coverage in the end-use market and the expansion of the grass-roots market are expected to enhance the continuous improvement of the market penetration rate of all products.

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