Net profit up approx. 43% to HK$1,123 million; Final dividend HK$0.08/share Revenue sets record high; Seize new development opportunities

Result summary:

• Total revenue HK$6,434 million, representing a growth of approx. 20%;
• Net profit HK$1,123 million, representing a growth of approx. 43%;
• The Board resolved to pay final dividend of HK$0.08 /share

HONG KONG SAR - Media OutReach - 28 March 2023 - SSY Group Limited ("SSY" or the "Company"; Stock Code: 2005.HK) and its subsidiaries (together, the "Group") presents the annual results of the Company for the year ended 31 December 2022 ("2022" or "the year"). During the year, the Group achieved a revenue of HK$6,434 million, representing an increase of approximately 20% with the gross profit margin decreased by 3.8 percentage point to 55.4%. The Group achieved net profits of HK$1,123 million, representing an increase of approximately 43% as compared with last year. In response to the recurring novel coronavirus epidemic outbreak and the further implementation of reform to the National Centralised Medicines Procurement, the Group strengthened the market expansion of dominant preparations and key preparation types. The Group also persistently optimised its product mix, leading to a new progress in market shares and sales volume. The Group made full use of market access opportunities from national centralized medicines procurement, and quickly introduced more solid preparations and small liquid injection products into the market. The bulk pharmaceuticals business achieved scale operation for the first year, and the production industrial chain was further extended. The Group performed a continuously and consistently favourable performance in overall operation. Revenue of the Group has set another record high. The Board of directors resolved to pay a final dividend of HK$0.08 per share for year 2022, together with interim dividend HK$0.06 per share, total dividend for full year of 2022 will be HK$0.14 per share, representing an increase of approximately 17% from last year. The Group continued to increase its market shares of the intravenous infusion solution business and solidify its leading position in the market. In 2022, sales volume of infusion solution reached 1,580 million bottles (bags), representing an increase of approximately 16% as compared to last year. Ampoule injections product line has become increasingly rich in varieties with its production and sales gradually scaled up. During the year, sales volume of ampoule products was approximately 160 million, representing an increase of approximately 49% as compared to last year. Solid preparations business has sped up the upgrading of its product mix and production and sales scale, In line with the national and local centralised medicines procurement policies, the Group made coordinated efforts to secure market supply of tender-awarded products, achieved revenue of HK$346 million, representing an increase of approximately 62% as compared to last year. Bulk pharmaceuticals business continuous optimised its production process, the premium production capacities were realised. As a vertical integration, the Group acquired Cangzhou Lingang Youyi Chemical Co., Ltd. near the beginning of the year, significantly improving the coordination between upstream and downstream entities of the industrial chain. During the year, revenue of bulk pharmaceuticals was HK$1,360 million, representing an increase of approximately 155% as compared to last year. Production and sales of medical materials were steady, recorded a revenue of HK$172 million from external sales during the year. Exports of preparations to foreign countries had a positive trend. The export of preparations recorded a revenue of approximately HK$149 million, representing an increase of approximately 78% as compared to last year. By using market demands as the guide and adhering to the principle of "combination of generic and innovative drugs", the Group maintained its intensity in research and development investment. The Group also made coordinated efforts to push forward the research and development progress of featured generic drugs, bulk pharmaceuticals, innovative drugs, medical materials as well as product types under consistency evaluation. In 2022, research and development of featured generic drugs of the Group ranked top of the peers in the PRC in terms of the number of approvals and applications, a total of 37 national production approvals were obtained for various products, among which four product types including Pentoxifylline Injection, Blonanserin Tablets, Azithromycin for Suspension and Peritoneal Dialysis Solution (Lactate-G1.5%) were the first passing such evaluation in the PRC. In addition, nine bulk pharmaceuticals such as Pentoxifylline and Levornidazole were approved for production, ensuring the supply of bulk pharmaceuticals for preparation production effectively. At present, the Group has products of 38 types...