Haixiang Pharmaceutical Industry Achieved A Net Profit Of 600 Million Yuan In 2018, And The Net Profit Of Dye Plate Reached 406 Million.

Zhejiang Haixiang pharmaceutical Limited by Share Ltd (hereinafter referred to as "Haixiang pharmaceutical"), a listed company engaged in the production of specialty raw materials, pharmaceuticals, fine chemicals, dyestuffs and dye intermediates, issued the 2018 annual performance bulletin in February 17th. The operating income of the company during the reporting period was 2 billion 719 million yuan, an increase of 17.74% over the same period. The net profit attributable to the parent company was 605 million yuan, an increase of 76.79% over the same period, and the basic earnings per share were 0.38 yuan.

Haixiang pharmaceutical company said that the company's profit increased in 2018, and the time of acceptance of the bill was issued with time deposit pledge. The corresponding time deposit did not conform to the nature of cash and cash equivalents, resulting in an increase in cash flow from operating activities, and the net cash flow generated by the final operating activities jumped sharply.

The main business of Haixiang pharmaceutical is divided into two parts: medicine and dyestuff.

The pharmaceutical sector is mainly engaged in the production and sale of characteristic intermediates, APIs and related preparations. It also provides professional services for international pharmaceutical CDMO (contract production and R & D business) /CMO (contract production business).

In 2018, the revenue and net profit of the company's pharmaceutical sector reached a new high, operating income of 1 billion 469 million yuan, an increase of 13.24% over the same period last year, resulting in a net profit of 199 million yuan, an increase of 55.13% over the same period last year.

The annual report shows that the Haixiang pharmaceutical dye plate is mainly engaged in the production and sales of environment-friendly reactive dyes, dyestuff intermediates and pigment intermediates. The products are mainly anthraquinone reactive dyes.

During the reporting period, the price of dye and dyestuff intermediates affected the sales of dyestuff plate by 1 billion 250 million yuan, an increase of 23.51% over the same period last year, resulting in a net profit of 406 million yuan, an increase of 89.82% over the same period last year.

The industry has said that Haixiang pharmaceutical company has achieved steady growth in performance through expansion of new products and expansion of production capacity.

And Haixiang pharmaceutical also said that the "environmental storm" continued to ferment in 2018. A number of policies on environmental rectification, upgrading and relocation involving chemical industrial parks have been launched in many places throughout the country. The production capacity of a large number of dyes and related intermediates has been shut down, and the subsidiaries of Haixiang pharmaceutical company have also been affected.

"In the face of unfavorable situation, the company has made rational adjustments to the production tasks and raw materials procurement plan of each plant area, adjusted the situation and adjusted the sales strategy actively to overcome difficulties and ensure the normal operation of production and operation. In addition, the new dyestuff project in Taizhou has started construction and is progressing smoothly, and the product sequence will be enriched after the project is completed."

Haixiang pharmaceutical industry said.

Guo Hai securities analyst Dai Peng said earlier that Haixiang pharmaceutical active brilliant blue KN-R is in the leading position in the field of high-end reactive dyes, and has absolute voice for its price, and its downstream customers are stable.

At present, the first and two active brilliant blue KR-N in Taizhou has been put into operation and the total capacity has reached 15 thousand tons.

In 2018, environmental protection became stricter, and the performance elasticity of Haixiang pharmaceutical dye products increased.

In the future, Haixiang pharmaceutical industry will conform to the general trend of the upgrading of dyestuff industry. It will extend from a single anthraquinone series reactive blue dye product to more than 10 reactive blue dyes such as methyl active blue, fluorine containing reactive blue, and other reactive dyes and acid dyes. It will help to enhance the ability to deal with market risks and expand the competitive advantage of the company in the field of high-end dyes and enhance market share.

Haixiang pharmaceutical also announced the profit distribution plan approved by this board of directors: the total share capital of the company on the date of registration of shares on the date of the 2018 profit distribution announcement is based on the total share capital on the date of the day of the announcement of the profits from the undistributed profits to all shareholders, and the cash dividend is distributed to 3 yuan (including tax) for every 10 shares of all shareholders. The cash dividend is expected to be 466 million (including tax).