Announcement • Jul 21
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Approves Special Dividend, Payable on August 4, 2025 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. at its Extraordinary General Meeting held on July 21, 2025, approved the Special Dividend of HKD 1.50 per Share to be paid to the Shareholders (other than the Offeror and its subsidiaries (if applicable) who have agreed to waive their entitlements) on the terms contained in the Composite Document. Payment date and Record date is 04 August 2025. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$17.10, the stock trades at a trailing P/E ratio of 28.5x. Average forward P/E is 11x in the Pharmaceuticals industry in Hong Kong. Total returns to shareholders of 203% over the past three years. Announcement • Jun 30
Yichang HEC Changjiang Pharmaceutical Co., Ltd. Proposes Special Dividend YiChang HEC ChangJiang Pharmaceutical Co., Ltd. at its Extraordinary General Meeting to be held on July 21, 2025, To declare and approve the Special Dividend of HKD 1.50 per Share to be paid to the Shareholders (other than the Offeror and its subsidiaries (if applicable) who have agreed to waive their entitlements) on the terms contained in the Composite Document. Ex-dividend date is 31 July 2025. Record date is 04 August 2025. Buy Or Sell Opportunity • Jun 06
Now 21% undervalued Over the last 90 days, the stock has risen 35% to HK$13.06. The fair value is estimated to be HK$16.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Meanwhile, the company has become profitable. Buy Or Sell Opportunity • May 20
Now 20% undervalued Over the last 90 days, the stock has risen 32% to HK$13.16. The fair value is estimated to be HK$16.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • Apr 30
Full year 2024 earnings released: EPS: CN¥0.55 (vs CN¥2.26 in FY 2023) Full year 2024 results: EPS: CN¥0.55 (down from CN¥2.26 in FY 2023). Revenue: CN¥3.72b (down 41% from FY 2023). Net income: CN¥482.7m (down 76% from FY 2023). Profit margin: 13% (down from 32% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Announcement • Apr 28
YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, May 29, 2025 YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, May 29, 2025, at 10:00 China Standard Time. Location: conference room, 3/f, sales building, dongyangguang scientific park, no. 368 zhen an zhong road, chang`n county, dongguan, guangdong province China Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$10.40, the stock trades at a trailing P/E ratio of 17.9x. Average forward P/E is 9x in the Pharmaceuticals industry in Hong Kong. Total returns to shareholders of 112% over the past three years. Reported Earnings • Mar 30
Full year 2024 earnings released: EPS: CN¥0.55 (vs CN¥2.26 in FY 2023) Full year 2024 results: EPS: CN¥0.55 (down from CN¥2.26 in FY 2023). Revenue: CN¥3.72b (down 41% from FY 2023). Net income: CN¥482.7m (down 76% from FY 2023). Profit margin: 13% (down from 32% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Mar 18
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report Fiscal Year 2024 Results on Mar 28, 2025 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report fiscal year 2024 results on Mar 28, 2025 Reported Earnings • Oct 03
First half 2024 earnings released: EPS: CN¥0.78 (vs CN¥1.17 in 1H 2023) First half 2024 results: EPS: CN¥0.78 (down from CN¥1.17 in 1H 2023). Revenue: CN¥2.45b (down 24% from 1H 2023). Net income: CN¥684.7m (down 34% from 1H 2023). Profit margin: 28% (down from 32% in 1H 2023). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 113% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. New Risk • Oct 03
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 2.1% per year over the past 5 years. High level of non-cash earnings (24% accrual ratio). Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$9.54, the stock trades at a trailing P/E ratio of 4.6x. Average forward P/E is 9x in the Pharmaceuticals industry in Hong Kong. Total returns to shareholders of 118% over the past three years. Announcement • Aug 20
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report Q2, 2024 Results on Aug 30, 2024 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report Q2, 2024 results on Aug 30, 2024 Reported Earnings • Apr 28
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: CN¥2.26 (up from CN¥0.087 in FY 2022). Revenue: CN¥6.29b (up 68% from FY 2022). Net income: CN¥1.99b (up CN¥1.92b from FY 2022). Profit margin: 32% (up from 2.0% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Apr 28
YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, Jun 07, 2024 YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, Jun 07, 2024. Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: CN¥2.26 (vs CN¥0.087 in FY 2022) Full year 2023 results: EPS: CN¥2.26 (up from CN¥0.087 in FY 2022). Revenue: CN¥6.29b (up 68% from FY 2022). Net income: CN¥1.99b (up CN¥1.92b from FY 2022). Profit margin: 32% (up from 2.0% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Mar 14
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report Fiscal Year 2023 Results on Mar 28, 2024 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report fiscal year 2023 results on Mar 28, 2024 Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$9.30, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 8x in the Pharmaceuticals industry in Hong Kong. Total returns to shareholders of 4.4% over the past three years. Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to HK$10.06, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 10x in the Pharmaceuticals industry in Hong Kong. Total returns to shareholders of 3.9% over the past three years. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$8.08, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 9x in the Pharmaceuticals industry in Hong Kong. Total loss to shareholders of 9.6% over the past three years. Announcement • Sep 26
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Receives Approval for Mixed Protamine Human Insulin Injection from the China National Medical Products Administration The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Mixed Protamine Human Insulin Injection (30R) (the ``Product''), independently researched and developed by the Company, has undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. Name of the drug (English) Mixed Protamine Human Insulin Injection (30R): Form: Injection. Specification: 3ml: 300 units (prefilled pen-type). Registration category: Biological products for treatment. Handling number: CXSS2200010Guo. Drug approval number: Guoyaozhunzi S20230051. Certificate number: 2023S01450. The Product is a premixed insulin product for treatment of diabetes. It consists of 30% soluble human insulin and 70% protamine human insulin. The Product is suitable for the treatment of diabetes through subcutaneous injection, characterised by its low incidence of hypoglycemia and being safe for use, can effectively control postprandial blood glucose, fasting blood glucose and glycosylated hemoglobin (HbA1c) levels. According to the market data from IMS China, the sales volume of diabetes drugs in China in 2022 reached approximately USD 4.84 billion, amongst which approximately 39.5% of the total sales of diabetes drugs in the market was attributable to the sales of domestic human insulin and its analogue drugs for 2022, indicating a considerable market potential. The Product is a biological drug of the Group approved for launch. The cumulative research and development expense we invested in it was approximately RMB130.1 million. Moreover, the Group has long been involved in the treatment of diabetes with a comprehensive product plan and a complete product line in place. The Product being successfully approved for launch will be beneficial for the expansion of the Group's business of treating endocrine and metabolic diseases and further enrich the Group's product portfolio. Announcement • Sep 09
YiChang HEC ChangJiang Pharmaceutical Co., Ltd.Approves Announces Executive Changes YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that at its second extraordinary general meeting held on 8 September 2023, approved ordinary resolution at the EGM, Mr. CHEN Hao was appointed as an Executive Director with effect from 8 September 2023 and until the expiration of the term of the current session of the Board. The company also announced that Mr. CHEN Yangui resigned from his position as an Executive Director due to his decision to devote more time to his other business commitments with effect from 8 September 2023. He had confirmed that he had no disagreement with the Board. Reported Earnings • Sep 02
First half 2023 earnings released: EPS: CN¥1.17 (vs CN¥0.037 loss in 1H 2022) First half 2023 results: EPS: CN¥1.17 (up from CN¥0.037 loss in 1H 2022). Revenue: CN¥3.21b (up 148% from 1H 2022). Net income: CN¥1.03b (up CN¥1.06b from 1H 2022). Profit margin: 32% (up from net loss in 1H 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Aug 22
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report First Half, 2023 Results on Aug 31, 2023 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report first half, 2023 results on Aug 31, 2023 Announcement • Aug 15
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Resignation of Chen Yangui as Executive Director The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has received a resignation letter tendered by Mr. CHEN Yangui, an executive Director, resigning from his positions as an executive Director due to his decision to devote more time to his other business commitments. The resignation of Mr. Chen as an executive Director is subject to the approval and the election of a new Director to fill his casual vacancy by the Shareholders at an extraordinary general meeting of the Company to be convened and held (the ‘‘EGM’’). Announcement • Jul 27
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Provides Earnings Guidance for the Six Months Ended June 30, 2023 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. provided earnings guidance for the six months ended June 30, 2023. For the period, the group expected to record a turnover of approximately RMB 3.2 billion for the six months ended 30 June 2023, representing an increase of approximately 147% as compared to the turnover of approximately RMB 1.293 billion recorded for the six months ended 30 June 2022. The Group is expected to record a net profit attributable to the parent company of approximately RMB1 billion to approximately RMB 1.2 billion for the six months ended 30 June 2023, representing an increase of approximately RMB 1.033 billion to approximately RMB 1.233 billion as compared to a net loss attributable to the parent company of approximately RMB 33 million for the six months ended 30 June 2022. The expected increase is mainly due to the overall lifting of domestic epidemic prevention and control policies, the gradual improvement of social and economic performance, the footfall and daily social activities have gradually resumed to normal, and the traffic, diagnosis activities and the volume of prescriptions in frontline medical facilities have shown encouraging signs of recovery, and the good performance of the Group's business pipelines. Announcement • Jun 28
GUO Meilan and ZHANG Yushuai completed the acquisition of 9.9134% stake in Sunshine Lake Pharma Co., Ltd. from YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (SEHK:1558). GUO Meilan and ZHANG Yushuai agreed to acquire 9.9134% stake in Sunshine Lake Pharma Co., Ltd. from YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (SEHK:1558) for CNY 2.3 billion on December 23, 2022. Sunshine Lake Pharma has a net assets of CNY 255.8 million as of October 31, 2022. The transaction is subject to approval of Board and Independent Shareholders of YiChang HEC, compliance with the Listing Rules or the relevant requirements of the Stock Exchange and obtaining the consent of other relevant government departments. GUO Meilan and ZHANG Yushuai completed the acquisition of 9.9134% stake in Sunshine Lake Pharma Co., Ltd. from YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (SEHK:1558) on June 27, 2023. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: CN¥0.087 (vs CN¥0.67 loss in FY 2021) Full year 2022 results: EPS: CN¥0.087 (up from CN¥0.67 loss in FY 2021). Revenue: CN¥3.74b (up 310% from FY 2021). Net income: CN¥76.6m (up CN¥664.3m from FY 2021). Profit margin: 2.0% (up from net loss in FY 2021). Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Pharmaceuticals industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Non-Executive Director Xuechen Li was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 09
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Insulin Aspart 30 Injection Approves for Launch YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Insulin Aspart 30 Injection, independently researched and developed by the Company, has undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. The Product is a premixed insulin, out of which, 30% is soluble insulin aspart and 70% is protamine insulin aspart. The Product is suitable for the treatment of diabetes and can be injected with meals. The higher attainment rate of glycosylated hemoglobin (Hb A1c) enables better control of both fasting and postprandial blood glucose. It has significant advantages in improving glycemic control, reducing the risk of hypoglycemia, improving compliance and saving medical costs, so it is more suitable for high-risk patients with impaired perception of hypoglycemia. According to market data from IMS China, the sales of diabetic drugs in 2021 was approximately USD 5.22 billion (representing an increase of approximately 12.0% as compared to 2020) in China, among which approximately 49.0% of the total sales of diabetes drugs in the market was attributable to the sales of domestic insulin and its analogue drugs for 2021, indicating a considerable market potential. The Product is a biological drug of the Group approved for launch. Its accrued research and development expense invested was approximately RMB 116.4753 million. Moreover, the Group has long been involved in the treatment of diabetes with a comprehensive product plan and a complete product line in place. The Product being successfully approved for launch will be beneficial for the expansion of the Group's business of treating endocrine and metabolic diseases and further enrich the Group's product portfolio. Announcement • Oct 19
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Approves to Launch Insulin Aspart Injection The board of directors YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Insulin Aspart Injection, independently researched and developed by the company, has undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. Name of the drug (English): Insulin Aspart Injection. Form; Injection. Specification: 3ml: 300 units (prefilled pen-type). Registration category: Therapeutic biological products. Handling number: CXSS2100025GUO. Drug approval number: Guoyaozhunzi () S20220029. Certificate number: 2022S01000. The Product is the third generation of fast-acting mealtime Insulin, which is currently a commonly used drug for mainstream insulin intensive therapy. It is mainly used for controlling the postprandial blood glucose level of diabetic patients and is suitable for patients who have a poor blood glucose control despite receiving oral hypoglycemic drug treatment. According to market data from IMS China, the sales of diabetic drugs in 2021 was approximately USD 5.22 billion (representing an increase of approximately 12.0% as compared to 2020) in China, among which approximately 49.0% of the total sales of diabetes drugs was attributable to the sales of domestic insulin and its analogue drugs, indicating a considerable market potential. The Product is a biological drug of the Group approved to launch. Its accrued research and development expense invested was approximately RMB91.36 million. Moreover, the Group has a comprehensive plan for the treatment of diabetes and a complete product line in place. The Product being successfully approved to launch marks the completion of the Group's basic layout in the insulin industry, and will be beneficial for the expansion of the Group's business of treating endocrine and metabolic diseases and further enrich the Group's product portfolio. Announcement • Oct 04
Yichang Hec Changjiang Pharmaceutical Co., Ltd. Announces Committee Appointments The board (the ``Board'') of directors (the ``Directors'') of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that (i) Mr. LI Xuechen has been appointed as the chairman of the nomination committee of the Company (the ``Nomination Committee''); (ii) Mr. TANG Jianxin (``Mr. Tang'') has been appointed as a member of the Nomination Committee; and (iii) Ms. XIANG Ling (``Ms. Xiang'') has been appointed as a member of the audit committee of the Company with effect from 3 October 2022. The board (the ``Board'') of directors (the ``Director(s)'') of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (the ``Company'') has received the written resignations tendered by Mr. Eddy HUANG (``Mr. Huang''), a non-executive Director, and Mr. ZHAO Dayao (``Mr. Zhao''), an independent non-executive Director, with effect from 30 September 2022. Announcement • Oct 01
Yichang Hec Changjiang Pharmaceutical Co., Ltd. Announces Resignation of Eddy Huang as Non-Executive Director and Independent Non-Executive Director The board of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has received the written resignations tendered (``Mr. Zhao''), an independent non-executive Director, with effect from 20 September 2022. Mr. Huang resigned from his positions as a non-executive Director and a member of the nomination committee of the Board (the ``Nomination Committee'') due to his other business commitments. Mr. Zhao resigned from his positions as an independent non- executive Director, the chairman of the Nomination Committee and a member of the audit committee of the Board (the ``Audit Committee'') due to his other business commitments. Each of Mr. Huang and Mr. Zhao confirmed that he has no disagreement with the Board. Reported Earnings • Aug 27
First half 2022 earnings released: EPS: CN¥0 (vs CN¥0.58 loss in 1H 2021) First half 2022 results: EPS: CN¥0 (up from CN¥0.58 loss in 1H 2021). Revenue: CN¥1.29b (up CN¥1.09b from 1H 2021). Net loss: CN¥32.8m (loss narrowed 94% from 1H 2021). Over the next year, revenue is forecast to grow 5.1%, compared to a 37% growth forecast for the Pharmaceuticals industry in Hong Kong. Announcement • Aug 17
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report First Half, 2022 Results on Aug 26, 2022 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report first half, 2022 results on Aug 26, 2022 Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Non-Executive Director Xuechen Li was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 21
YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, Jun 02, 2022 YiChang HEC ChangJiang Pharmaceutical Co., Ltd., Annual General Meeting, Jun 02, 2022, at 10:00 China Standard Time. Location: Conference Room, 4/F, Administration Building, Dongyangguang Scientific Park No. 368 Zhen An Zhong Road, Chang'an County Dongguan Guangdong Province China Agenda: To review and approve the report of the Board of Directors for the year ended 31 December 2021; to review and approve the report of the Board of Supervisors for the year ended 31 December 2021; to review and approve the consolidated financial statements of the Company for the year ended 31 December 2021; To review and approve the 2021 annual report of the Company; to review and approve the re-appointment of KPMG as auditor of the Company for a term until the conclusion of the next annual general meeting of the Company, and authorize the Board of Directors to determine its remuneration; to consider and approve the adjustment of the remuneration of Mr. Li Xuechen, an independent non-executive Director; and to consider other matters. Announcement • Mar 10
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Azithromycin Tablets Obtained Approval to Launch from the China National Medical Products Administration The Board of Directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Azithromycin Tablets (specifications: 0.25g and 0.5g), a product acquired by the Company from Sunshine Lake Pharma Co., Ltd. have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. Name of the drug: Azithromycin Tablets. Specification: 0.25g and 0.5g. Registration category: Type 4 Chemical Drug. Azithromycin tablets are systemic antibiotics, which are mainly used to treat infections caused by sensitive bacteria such as bronchitis, pneumonia and other lower respiratory tract infections, skin and soft tissue infections, acute otitis media, sinusitis, pharyngitis, tonsillitis and other upper respiratory tract infections. Announcement • Feb 26
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Executive Changes The board of directors of YiChang HEC ChangJiang Pharmaceutical Co. Ltd. announced that Ms. NG Wing Shan has tendered her resignation as the joint company secretary of the Company. The Board further announces that Mr. WONG Wai Chiu has been appointed as the Joint Company Secretary, an Authorized Representative and the Process Agent in place of Ms. Ng with effect from 25 February 2022. Mr. Peng Qiyun will continue to serve as the other Joint Company Secretary. Announcement • Jan 12
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Metoprolol Succinate Sustained-Release Tablets Approved to Launch YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Metoprolol Succinate Sustained-release Tablets (specifications: 47.5mg and 95mg), a product acquired by the Company from Sunshine Lake Pharma Co., Ltd., (the ``Product'') have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. The marketing authorization holder of the Product is Dongguan Yangzhikang Pharmaceutical Co., Ltd. (``Yangzhikang''), a wholly-owned subsidiary of the Company. Metoprolol Succinate Sustained-release Tablets are frequently used for clinical treatment of high blood pressure and chronic heart failure. Patients suffering from myocardial infarction and chronic heart failure and treated with Metoprolol Succinate Sustained-release Tablets for a long period of time would have lower frequency of angina pectoris and possess enhanced myocardial tolerance. Such product is a selective receptor antagonist, which can lower blood pressure and myocardial oxygen consumption by inhibiting the sympathetic nerve activity, heart rate and myocardial contractility through antagonizing1 receptor. According to market data on China from IMS, the sales of Metoprolol Succinate Sustained-release Tablets in 2020 amounted to approximately USD 280,000,000. Metoprolol Succinate Sustained-release Tablet is one of the major drugs for the treatment of cardiovascular diseases. Metoprolol Succinate Sustained-release Tablets have considerable clinical value and market prospect and will become one of the products of the Company for the treatment of cardiovascular diseases after its launch. This can further enrich the Group's product portfolio, and will publicly provide patients with a choice of medication with high quality and fair price. This announcement is made by the Company on a voluntary basis to keep investors informed of the latest business development of the Group, and contains no advertisement or intention regarding the use of any drug, surgical device, therapy or oral product. Reported Earnings • Aug 30
First half 2021 earnings released: CN¥0.58 loss per share (vs CN¥0.70 profit in 1H 2020) The company reported a poor first half result with weaker earnings, revenues and control over costs. First half 2021 results: Revenue: CN¥202.2m (down 90% from 1H 2020). Net loss: CN¥507.0m (down 182% from profit in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has fallen by 32% per year, which means it is performing significantly worse than earnings. Announcement • Aug 25
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Provides Earnings Guidance for the Six Months Ended June 30, 2021 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. provided earnings guidance for the six months ended June 30, 2021. For the period, the Group is expects to record a net loss attributable to the parent company ranging from approximately RMB 494 million to approximately RMB 556 million as compared to the net profit attributable to the parent company of approximately RMB618 million for the six months ended 30 June 2020, and a net loss attributable to the parent company ranging from approximately RMB 313 million to approximately RMB383 million for the six months ended June 30, 2021 as compared to the net profit attributable to the parent company of approximately RMB 696 million for the six months ended 30 June 202. Announcement • Aug 21
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Provides Earnings Guidance for the Six Months Ended June 30, 2021 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. provided earnings guidance for the six months ended June 30, 2021. For the period, based on the currently available unaudited management accounts of the Group and the preliminary assessment by the company's management, the Group's net profit attributable to the parent company for the six months ended June 30, 2021 (without taking into account of convertible bonds) is expected to decrease by approximately 145% to 155% as compared to the six months ended June 30, 2020. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥6.00, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Pharmaceuticals industry in Hong Kong. Total loss to shareholders of 66% over the past three years. Announcement • Jun 30
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Approval for Launch of Atorvastatin Calcium Tablets The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Atorvastatin Calcium Tablets acquired by the Company from Sunshine Lake Pharma Co., Ltd. have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. The marketing authorization holder of the Product is Dongguan Yangzhikang Pharmaceutical Co., Ltd. Name of the drug is Atorvastatin Calcium Tablets. Specification is 10mg, 20mg and 40mg. Registration category is Type 4 Chemical Drug. Handling number is CYHS1900890GUO. Atorvastatin Calcium is suitable for hypercholesterolemia and it can reduce the risk of non-fatal myocardial infarction, the risk of fatal and non-fatal stroke, the risk of revascularization, the risk of hospitalization due to congestive heart failure, and the risk of angina. Atorvastatin Calcium reduces plasma cholesterol and lipoprotein levels by inhibiting the synthesis of HMG-CoA reductase and cholesterol in the liver, and increase the number of LDL receptors on the liver cell surface to enhance the uptake and catabolism of low-density lipoproteins. Atorvastatin belongs to Class B under the National Drug Catalog for Basic Medical Insurance, Work-Related Injury Insurance, and Maternity Insurance and is also an item listed on the National Essential Drugs List. According to data from IQVIA, the sales of Atorvastatin in China in 2020 was approximately USD 670 million. The Product is a generic drug which obtained the approval for launch in China. After obtaining the approval for launch, it has been deemed to have passed the Consistency of Quality and Efficacy Evaluation for Generic Drugs. The Product has high clinical value and favourable market prospects and will become one of the Company's products in the areas of cardiovascular disease treatment after its launch, which will further enrich the Group's product portfolio and will also provide patients with a choice of medication with high quality and fair price. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥8.25, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Pharmaceuticals industry in Hong Kong. Total loss to shareholders of 54% over the past three years. Announcement • May 25
Yichang Hec Changjiang Pharmaceutical Co., Ltd. Announces Approval for Launch of Aripiprazole Orally Disintegrating Tablets The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Aripiprazole Orally Disintegrating Tablets acquired by the Company from Sunshine Lake Pharma Co., Ltd. have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. The marketing authorization holder of the Product is Dongguan Yangzhikang Pharmaceutical Co., Ltd. Name of the drug Aripiprazole Orally Disintegrating Tablets of 10mg and 15mg Type 3 Chemical Drug bearing Drug approval number of Guoyaozhunzi H20213355 and Guoyaozhunzi H20213356 respectively. The Product is a generic drug which obtained the approval for launch in China. After obtaining the approval for launch, it has been deemed to have passed the Consistency of Quality and Efficacy Evaluation for Generic Drugs. The Product has high clinical value and favourable market prospects and will become one of the Company's products in the field of psychiatric disorders treatment after its launch, which will further enrich the Group's product portfolio and will also provide patients with a choice of medication with high quality and fair price. Announcement • May 15
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Announces Febuxostat Tablets Approved to Launch The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Febuxostat Tablets (40mg and 80mg) (the ``Product'') acquired by the Company from Sunshine Lake Pharma Co., Ltd. have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. The marketing authorization holder of the Product is Dongguan Yangzhikang Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company. ebuxostat is used for the long-term treatment of hyperuricemia with the symptom of gout while it is not recommended for those suffering from hyperuricemia without clinical ymptom. Febuxostat is a type of xanthine oxidase (XO) inhibitor which intends to lower erum uric acid concentration by inhibiting uric acid synthesization in order to get a atisfactory clinical result of treatment. Febuxostat belongs to Class B under the National Reimbursement Drug List for Basic Medical Insurance, Work-Related Injury Insurance, and Maternity Insurance (2020 version). According to the data from IQVIA, the sales amount of Febuxostat in China in 2020 was approximately USD198 million, representing an increase of 6.19% as compared to 2019. The Product is a generic drug which obtained the approval for launch in China. After obtaining the approval for launch, it has been deemed to have passed the generic drug quality and efficacy consistency evaluation. The Product has high clinical value and favourable market prospects and will become one of the Company's products in the areas of endocrine and metabolic after its launch, which will further enrich the Group's product portfolio and will also provide patients with a choice of medication with high quality and fair price. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥7.22, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Pharmaceuticals industry in Hong Kong. Total loss to shareholders of 58% over the past three years. Reported Earnings • Apr 17
Full year 2020 earnings released: EPS CN¥0.95 (vs CN¥2.16 in FY 2019) The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2020 results: Revenue: CN¥2.35b (down 62% from FY 2019). Net income: CN¥839.5m (down 56% from FY 2019). Profit margin: 36% (up from 31% in FY 2019). The increase in margin was driven by lower expenses. Products in clinical trials Phase I: 1 Phase III: 2 Post-clinical trial products Pre-registration: 16 Launched (during full year): 1 Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 20
Full year 2020 earnings released The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2020 results: Revenue: CN¥2.35b (down 62% from FY 2019). Net income: CN¥839.5m (down 56% from FY 2019). Profit margin: 36% (up from 31% in FY 2019). The increase in margin was driven by lower expenses. Announcement • Mar 10
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report Fiscal Year 2020 Results on Mar 19, 2021 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report fiscal year 2020 results on Mar 19, 2021 Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥9.86, the stock is trading at a trailing P/E ratio of 4.7x, up from the previous P/E ratio of 3.8x. This compares to an average P/E of 14x in the Pharmaceuticals industry in Hong Kong. Total return to shareholders over the past three years is a loss of 54%. Announcement • Feb 20
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Receives Approval Notice from the National Medical Products Administration Relating to Registration for Domestic Production of Insulin Aspart 30 Injection YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that the company has received approval notice from the National Medical Products Administration relating to registration for domestic production of Insulin Aspart 30 Injection, the Company's self-developed product, with approval number of CXSS2100019Guo. Currently, there are insulin aspart 30 injections manufactured by two Chinese companies having received approval to launch from the National Medical Products Administration. Insulin Aspart 30 Injection is a premixed insulin, which contains 30% soluble insulin aspart and 70% insulin aspart protamine. Insulin Aspart 30 Injection is suitable for the treatment of diabetes and can be injected before meals with higher achievement rate of glycosylated hemoglobin (HbA1c) and better control of postprandial blood glucose levels. In addition, Insulin Aspart 30 Injection has significant advantages in improving blood glucose control, reducing the risk of hypoglycemia, improving adherence and saving medical costs, and is more suitable for patients at high risk of impaired awareness of hypoglycemia (IAH). According to the data published by the International Diabetes Federation in 2019, the number of diabetics in mainland China was about 116 million, and the prevalence rate for the 2079 age group was about 10.4%. According to data from IMS, the sales of drugs for diabetes segment in China in 2019 was approximately $3.921 billion, increasing by approximately 8.97% as compared to 2018. Among them, the sales of insulin and its analogues in China accounted for approximately 42.52% of the total market share in 2019, showing the considerable market potential. The Company has a comprehensive plan for the treatment of diabetes and a complete product line in place. References are made to the announcement of the Company dated 15 June 2020 in relation to the approval to launch the Company's recombinant human insulin injection being obtained and the commencement of market promotion of such product, and the announcement of the Company dated 16 October 2020 in relation to the acceptance of the submission of registration for domestic production of insulin glargine injection. In the future, if the Product passes the assessment and approval process of the National Medical Products Administration and is launched in the market, the Company's product portfolio in the area of diabetes treatment will be further enriched. Is New 90 Day High Low • Feb 01
New 90-day low: HK$8.44 The company is down 6.0% from its price of HK$8.96 on 03 November 2020. The Hong Kong market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$60.33 per share. Is New 90 Day High Low • Dec 31
New 90-day low: HK$8.83 The company is down 11% from its price of HK$9.87 on 30 September 2020. The Hong Kong market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$61.49 per share. Announcement • Dec 30
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Provides Update on Assessment and Approval Process of Emitasvir Phosphate Capsules (0.1g) YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that the company's self-researched and developed product Emitasvir Phosphate Capsules (0.1g) (the Product) have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. Emitasvir Phosphate is an anti-hepatitis C oral direct-acting antiviral drug, non-structural protein (NS) 5A inhibitor. The drug is effective in treating liver cirrhosis-free genotype 1 Hepatitis C patients with SVR12 (sustained virological response in 12 weeks) at 99.8%, while maintaining favourable safety and tolerance properties. Emitasvir Phosphate Capsule is national Class 1 innovative new drug in China. According to data from IMS, the sales of anti-hepatitis C oral antiviral drug in China in 2019 was more than USD 13 million (representing an increase of 75.3% as compared to 2018), possessing huge growth potential. Upon approval for launch, the Product has become one of the major products of the Company in the field of anti-hepatitis C treatment. It has high clinical value and favourable market prospects. Moreover, it will be beneficial for the expansion of the Group's antiviral business and the Group's product portfolio will be further enriched and will provide patients with a wider choice of medication with high quality and fair price. This announcement is made by the Company on a voluntary basis to keep investors informed of the latest business development of the Group, and contains no advertisement or intention regarding the use of any drug, surgical device, therapy or oral product. Major Estimate Revision • Dec 29
Analysts lower EPS estimates to CN¥1.44 The 2020 consensus revenue estimate was lowered from CN¥4.86b to CN¥4.48b. Earning per share (EPS) estimate was also lowered from CN¥1.66 to CN¥1.44 for the same period. Net income is expected to shrink by 5.0% next year compared to 33% growth forecast for the Pharmaceuticals industry in Hong Kong . The consensus price target was lowered from HK$11.84 to HK$11.41. Share price is down by 2.1% to HK$9.01 over the past week. Announcement • Nov 20
Yichang Hec Changjiang Pharmaceutical Co., Ltd. Announces Ticagrelor Tablets Approved to Launch The board of directors of YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that Ticagrelor Tablets (60 mg and 90 mg) acquired by the Company from Sunshine Lake Pharma Co., Ltd. have undergone the assessment and approval process and obtained approval for launch from the China National Medical Products Administration. Subsequently, the marketing authorization holder of the Product will be changed to the Company or a subsidiary controlled by the Company through supplemental application. Ticagrelor is a platelet aggregation inhibitor and a novel anti-thrombotic medication used in the treatment for patients with acute coronary syndrome. It may reduce the incidence rate of the composite endpoint of cardiovascular death, myocardial infarction or stroke. Ticagrelor is not a prodrug, it can take effect directly and does not require hepatic metabolic activation. As its binds to platelets are reversible, platelet function can restore spontaneously after discontinuation of the medication. Upon approval for launch, the Product is considered as drugs having passed the Consistency of Quality and Efficacy Evaluation for Generic Drugs with high clinical value and favourable market prospects. The Product, being successfully approved to launch, will be beneficial for the expansion of the Group's business of cardiovascular treatment and the Group's product portfolio will be further enriched. Valuation Update With 7 Day Price Move • Nov 02
Market pulls back on stock over the past week After last week's 15% share price decline to CN¥8.94, the stock is trading at a trailing P/E ratio of 4.4x, down from the previous P/E ratio of 5.2x. This compares to an average P/E of 11x in the Pharmaceuticals industry in Hong Kong. Total return to shareholders over the past three years is a loss of 18%. Is New 90 Day High Low • Nov 02
New 90-day low: HK$8.94 The company is down 24% from its price of HK$11.78 on 04 August 2020. The Hong Kong market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$36.07 per share. Announcement • Oct 18
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Receives Approval Notice from the National Medical Products Administration YiChang HEC ChangJiang Pharmaceutical Co., Ltd. board of directors announced that the Company has received approval notice from the National Medical Products Administration relating to registration for domestic production of insulin glargine injection (the Product), the Company's self-developed product, with approval number of CXSS2000052Guo. Insulin glargine is a long-acting human insulin analogue used to treat Type 1 and Type 2 diabetes by controlling the patient's blood sugar level in a more effective and steady way. According to the data published by the International Diabetes Federation in 2019, the number of diabetics in mainland China was about 116 million, and the prevalence rate for the 2079 age group was about 10.4%. According to data from IMS, the sales of drugs for diabetes in China in 2019 was approximately $3.921 billion, increased by approximately 8.97% as compared to 2018. Among them, the sales of insulin and its analogues in China accounted for approximately 42.52% of the total market share in 2019, which shows the considerable growth potential. The Company has a comprehensive plan for the treatment of diabetes and a complete product line in place. Reference is made to the announcement of the Company dated 15 June 2020, the Company's recombinant human insulin injection has recently been approved to launch and the Company has commenced market promotion on the product. In the future, if the Product passes the assessment and approval process and is launched in the market, the Company's product portfolio in the area of diabetes treatment will be further enriched. Is New 90 Day High Low • Oct 15
New 90-day low: HK$9.30 The company is down 33% from its price of HK$13.86 on 17 July 2020. The Hong Kong market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$35.83 per share. Announcement • Sep 26
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Appoints Li Xuechen as an Independent Non-Executive Director YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that at its EGM held on 25 September 2020, approved the appointment of Mr. Li Xuechen as an independent non-executive director of the company with effect from 25 September 2020. Is New 90 Day High Low • Sep 25
New 90-day low: HK$10.52 The company is down 29% from its price of HK$14.88 on 26 June 2020. The Hong Kong market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$36.13 per share. Reported Earnings • Sep 19
First half earnings released Over the last 12 months the company has reported total profits of CN¥1.57b, up 23% from the prior year. Total revenue was CN¥5.24b over the last 12 months, up 27% from the prior year. Announcement • Aug 12
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. to Report First Half, 2020 Results on Aug 21, 2020 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. announced that they will report first half, 2020 results on Aug 21, 2020 
