Zhejiang Xianju Pharmaceutical Co.,Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Zhejiang Xianju Pharmaceutical Co.,Ltd.

Zhejiang Xianju Pharmaceutical Co., Ltd. was founded in 1985 and has since grown into one of China’s leading producers of pharmaceutical products. The company is headquartered in Xianju County, Zhejiang Province, China. Initially specializing in traditional Chinese medicine, the company has diversified its offerings over the years.

In 1999, Zhejiang Xianju Pharmaceutical became publicly traded on the Shenzhen Stock Exchange under the stock code 002332. This milestone allowed the company to access broader financial markets, facilitating further growth and expansion of its product portfolio.

By 2008, the company experienced substantial revenue growth, reporting revenues of approximately ¥1.2 billion. This period marked its transition from a domestic player to an international competitor, with exports to over 30 countries.

In 2015, Zhejiang Xianju Pharmaceutical achieved a significant landmark by earning GMP (Good Manufacturing Practice) certification for its production facilities. This certification is crucial for ensuring quality in pharmaceutical manufacturing and has since enhanced the company's reputation globally.

As of 2020, the company reported a total revenue of approximately ¥2.9 billion, reflecting continuous growth in both domestic and international markets. Its net profit for the same year was around ¥300 million, showcasing its capability to manage costs effectively while boosting sales.

In 2021, Zhejiang Xianju Pharmaceutical launched innovative products that align with modern healthcare trends, including biopharmaceuticals and high-value generics. This strategic move contributed to a revenue increase of 15% compared to the previous year, marking another successful growth phase.

For the fiscal year ending 2022, the company reported total revenues of approximately ¥3.3 billion. The net income stood at about ¥450 million, further solidifying its position in the market. The company's R&D investment rose to ¥150 million, representing 4.5% of total revenues, emphasizing its commitment to innovation.

As of 2023, Zhejiang Xianju Pharmaceutical continues to scale its operations, focusing on expanding its market share in both domestic and international markets. The company also emphasizes sustainability practices in its operations, reflecting a growing trend towards environmentally responsible manufacturing in the pharmaceutical industry.

A Who Owns Zhejiang Xianju Pharmaceutical Co.,Ltd.

Zhejiang Xianju Pharmaceutical Co., Ltd. is a publicly traded company listed on the Shanghai Stock Exchange under the ticker symbol 300254. As of late 2023, the company has a market capitalization of approximately ¥7.5 billion (around $1.1 billion). The major shareholders of the company are primarily institutional investors and key individual stakeholders.

The largest shareholder, with significant ownership, is Zhejiang Xianju Pharmaceutical Group Co., Ltd., which holds approximately 46.5% of the company. This stake gives the group substantial influence over strategic decisions and operational direction.

Other notable shareholders include:

• China Securities Finance Corporation: approximately 5.2%
• National Social Security Fund: approximately 3.7%
• Various mutual funds and other institutional investors collectively holding around 10.8%

Below is a detailed table of the ownership structure of Zhejiang Xianju Pharmaceutical Co., Ltd. as of October 2023:

The board of directors also includes several prominent figures in the pharmaceutical industry, reflecting a depth of experience which influences corporate governance and strategic direction. The current chairman is Mr. Wang Jian, who has over 20 years of experience in managing pharmaceutical businesses.

In the fiscal year ending December 31, 2022, Zhejiang Xianju Pharmaceutical reported revenue of ¥2.1 billion (approximately $310 million), with a net profit of ¥240 million (around $35 million), showing a robust growth trajectory in a competitive market.

The company's initiatives in research and development have also been significant, with R&D expenses accounting for around 7.5% of total revenue in 2022, an investment of approximately ¥157.5 million (about $23 million), aimed at expanding its product line and improving existing products.

Zhejiang Xianju Pharmaceutical Co.,Ltd. Mission Statement

Zhejiang Xianju Pharmaceutical Co., Ltd., founded in 1985, operates under a mission to innovate and provide high-quality pharmaceutical products that enhance health and well-being globally. The company focuses on the research, development, manufacturing, and marketing of APIs (Active Pharmaceutical Ingredients) and finished dosage forms.

As of the end of 2022, the company reported a revenue of approximately ¥3.2 billion (around $497 million), marking a year-on-year growth of 12%. The net profit attributable to shareholders was around ¥500 million (approximately $77 million), indicating a notable increase compared to previous years.

The mission statement emphasizes a commitment to serving the healthcare community by adhering to the highest standards of quality and regulatory compliance. This is evident as Zhejiang Xianju Pharmaceutical has attained numerous certifications, including GMP (Good Manufacturing Practice) and ISO standards, which are crucial for maintaining product quality.

In addition, the company has expanded its global footprint, exporting to over 30 countries, including markets in Europe, North America, and Southeast Asia. The growth in export revenue, which constitutes 40% of total sales, reflects its strategic mission to penetrate international markets and distribute effective pharmaceutical solutions worldwide.

Investing in research and development is another key pillar of the company’s mission. In 2022, Zhejiang Xianju allocated approximately 9.4% of its total revenue to R&D, a significant increase aimed at fostering innovation. The company’s R&D initiatives have led to the development of over 50 new products in recent years, reinforcing its market position.

Through its mission statement, Zhejiang Xianju Pharmaceutical Co., Ltd. pledges to deliver reliable health products while prioritizing sustainable practices and corporate social responsibility, which will continue to shape its operational strategies in the coming years.

How Zhejiang Xianju Pharmaceutical Co.,Ltd. Works

Zhejiang Xianju Pharmaceutical Co., Ltd. is a key player in the pharmaceutical industry, particularly known for its production of active pharmaceutical ingredients (APIs) and intermediates. The company's operations span research and development, manufacturing, and marketing of pharmaceuticals, primarily focusing on various therapeutic areas.

Company Overview

Founded in 1996, Xianju Pharmaceutical has grown significantly. As of the end of 2022, the company reported revenues of approximately RMB 1.53 billion. The net income for the year was around RMB 267 million, reflecting a profit margin of approximately 17.4%.

Manufacturing Capabilities

Xianju Pharmaceutical operates several state-of-the-art manufacturing facilities certified by multiple international standards, including ISO and FDA. The company’s production capacity exceeds 5,000 tons of APIs annually. Key products include:

• Ibuprofen
• Acetaminophen
• Antibiotics
• Vitamins

Research and Development

The company invests heavily in R&D, with approximately 8% of total revenue allocated to this area in 2022. Xianju has a dedicated team of over 200 researchers and has developed numerous proprietary technologies for API synthesis.

Market Presence

Xianju Pharmaceutical has established a significant market presence both domestically and internationally. In 2022, the export revenue accounted for 35% of total sales, reaching around RMB 535 million. Key markets include:

• North America
• Europe
• Asia-Pacific

Financial Performance

The following table illustrates Zhejiang Xianju Pharmaceutical Co., Ltd.'s financial performance over the past three years:

Supply Chain and Distribution

The company has developed a robust supply chain strategy, focusing on sustainability and efficiency. Xianju collaborates with over 300 suppliers, ensuring a stable supply of raw materials. The distribution network includes partnerships with major pharmaceutical distributors worldwide.

Future Outlook

Xianju Pharmaceutical aims to increase its market share by expanding its product portfolio and enhancing its R&D initiatives. The firm projects a revenue growth rate of 10% annually for the next five years, driven by new product launches and market expansion strategies.

How Zhejiang Xianju Pharmaceutical Co.,Ltd. Makes Money

Zhejiang Xianju Pharmaceutical Co., Ltd., a prominent player in the pharmaceutical industry, generates revenue primarily through the research, development, production, and sale of various pharmaceutical products. The company specializes in the manufacture of APIs (Active Pharmaceutical Ingredients), intermediates, and finished dosage forms, which are critical for both domestic and international markets.

In recent financial reports, Zhejiang Xianju Pharmaceutical has showcased consistent growth in revenue. For the fiscal year ending December 31, 2022, the company reported a revenue of RMB 2.56 billion, reflecting a year-over-year increase of 15%. The net profit for the same period stood at RMB 350 million, with a profit margin of 13.7%.

The company's revenue streams can be categorized into several key segments:

• APIs: Approximately 55% of total revenue
• Finished Drugs: About 30% of total revenue
• Intermediates: Roughly 10% of total revenue
• Others: Around 5% of total revenue

To provide a clearer understanding of its revenue streams, the following table details the revenue generated by each segment for the year 2022:

The company also focuses on expanding its international market presence. In 2022, Zhejiang Xianju Pharmaceutical reported that exports contributed to approximately 40% of its total sales, with a notable increase in demand from regions like Europe and North America.

Research and development are vital components of the company's revenue generation strategy. Zhejiang Xianju Pharmaceutical invested RMB 150 million in R&D during 2022, which was about 5.9% of its total revenue. This investment is aimed at enhancing its product offerings and expanding into new therapeutic areas like oncology and cardiovascular treatments.

The company’s diversified portfolio also includes contract manufacturing services, which have become an essential source of income. In 2022, contract manufacturing activities accounted for roughly 10% of the total revenue, contributing RMB 256 million.

Zhejiang Xianju Pharmaceutical's success can be attributed to a robust domestic market, strategic partnerships, and a commitment to quality and innovation. The company continually seeks to improve its manufacturing capabilities, which are crucial for maintaining competitive pricing and meeting international standards.

The pharmaceutical industry is highly competitive, and Zhejiang Xianju Pharmaceutical aims to leverage its strong R&D capabilities to introduce novel products in the market, which could potentially enhance its revenue streams further in the coming years.