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Results Highlights:

• The Group performed strongly in 2019 annual results, with its revenue increased by 10.6% to HK$6,590.6 million as compared with same period of 2018. The profit for the Year attributable to owners of the Company for the Year increased 61.5% to HK$1,150.9 million as compared with same period of 2018.
• The Group has become the frontrunner in the domestic and even global “precise intervention treatment sector”. As a listed pharmaceutical company in Hong Kong, the Group is the only company that is involved in both vascular intervention and tumor intervention in China market.
• The Group has early carried out relevant innovative product layout in the field of antiviral and anti-infection. In May 2020, the Group was approved to conduct a phase II clinical study for the treatment of ARDS in patients with COVID-19 and a phase Ib clinical study for the treatment of sepsis in Australia.
• The Group will make full use of the three core competitiveness of “accurate and powerful business development capabilities at home and abroad, the introduction and digestion of international leading technologies, excellent marketing and sales capabilities”, and continue to promote international mergers and acquisitions and the introduction of advanced technologies and products, and persist on the two-wheel drive of “self-development” + “global expansion”.

(May 15, 2020, Hong Kong) China Grand Pharmaceutical and Healthcare Holdings Limited (“GP (HK)” or the “Company”, together with its subsidiaries, the “Group”, stock code: 00512) is pleased to announce the audited consolidated annual results for the year ended 31 December 2019 (the “2019” or the “Year”).

During the Year, the Group recorded a revenue amount of approximately HK$6,590.6 million, representing an increase of 10.6% as compared with the same period of 2018. The increment of the revenue is mainly due to the Group vigorously develops specialized pharmaceutical products with large market and high-entry barriers, exclusive or protected pharmaceutical products and branded pharmaceutical products, especially the pharmaceutical preparation category recorded significant growth. As a result of continuous fine-tuning of the product portfolio, the proportion of products with high gross profit keep growing and resulting the increment of average gross profit margin of the Group to approximately 61.3% during the Year. During the Year, the profit attributable to the owners of the Company was approximately HK$1,150.9 million, representing an increase of 61.5% as compared with the same period of 2018.

After years of development, the Group has become the frontrunner in the domestic and even global “precise intervention treatment sector” and made an international “precision diagnosis + treatment” strategic deployment which integrated the vascular imaging diagnosis of Conavi, a Canada company, the vascular intervention of Cardionovum, a Germany company, and the tumor intervention of Sirtex, a Australian company and OncoSec, an American company. As a listed pharmaceutical company in Hong Kong, the Group is the only company that is involved in both vascular intervention and tumor intervention and the only one whose products cover three sectors of coronary, arteriovenous fistula and peripherals in China market.

Since the outbreak of COVID-19, antiviral and anti-infective drugs have again become the focus of pharmaceutical companies across the word, setting off a new round of development boom. GP (HK) has early carried out relevant innovative product layout in the field of antiviral and anti-infection and obtained the global rights of the world’s first therapeutic parainfluenza product and the world’s first sepsis product initiated by The Australian National University. In addition, in May 2020, the Group was approved to conduct a phase II clinical study for the treatment of Acute Respiratory Distress Syndrome (ARDS) in patients with COVID-19 and a phase Ib clinical study for the treatment of sepsis in Australia. The said initiatives demonstrate the ability of Group to make forward-looking strategic layout.

The Board of China Grand Pharmaceutical and Healthcare Holdings Limited, commented: “Looking into the future, the Group will use the three core competitiveness of ‘accurate and powerful business development capabilities at home and abroad, the introduction and digestion of international leading technologies, excellent marketing and sales capabilities’, which the Group has formed over the years and are leading in China, and focus on the layout of “the precision interventional therapy field” and “the anti-virus and anti-infection field”. While consolidating the strength of the Company’s own R & D team, it continues to promote international mergers and acquisitions and the introduction of advanced technologies and products, persists on the two-wheel drive of “self-development” + “global expansion”, and is committed to becoming an international pharmaceutical company respected by patients and doctors and restored to society, creates sustainable profit value for shareholders.”