Grand Pharmaceutical Group Limited: history, ownership, mission, how it works & makes money

Grand Pharmaceutical Group Limited: history, ownership, mission, how it works & makes money

HK | Healthcare | Drug Manufacturers - Specialty & Generic | HKSE

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A Brief History of Grand Pharmaceutical Group Limited

Grand Pharmaceutical Group Limited, established in 1997, is a prominent pharmaceutical company based in China, specializing in research and development, manufacturing, and distribution of pharmaceutical products. The firm underwent an IPO in 2016 on the Hong Kong Stock Exchange, raising approximately HKD 1.18 billion to support its expansion efforts.

Over the years, Grand Pharmaceutical has strategically expanded its product portfolio, focusing on areas such as oncology, central nervous system disorders, and cardiovascular diseases. The company reported a significant revenue growth of 24.8% year-over-year in 2022, with total revenues reaching approximately HKD 5.6 billion.

Year Total Revenue (HKD) Net Profit (HKD) Year-on-Year Growth (%)
2019 4.0 billion 600 million 15.0%
2020 4.2 billion 650 million 5.0%
2021 4.5 billion 700 million 7.1%
2022 5.6 billion 800 million 24.8%

In addition to its domestic operations, Grand Pharmaceutical has expanded its reach internationally through collaborations and acquisitions. In 2021, the company acquired a European pharmaceutical firm for EUR 55 million, enhancing its market presence in Europe and diversifying its product offerings.

As part of its growth strategy, Grand Pharmaceutical has invested heavily in R&D, allocating approximately 15% of its revenue to this area in 2022. This investment has led to the development of several new drugs that have entered the market, particularly in oncology, where the company has seen increasing demand.

The company’s stock performance has reflected its strong operational results. As of October 2023, the stock price was approximately HKD 6.80, representing a 30% increase from the beginning of the year. Its market capitalization stood at around HKD 7.5 billion, showcasing investor confidence in its growth trajectory.

Grand Pharmaceutical emphasizes quality and compliance, holding numerous certifications for its manufacturing facilities, including Good Manufacturing Practice (GMP) certification. The company operates multiple production facilities that adhere to international regulations, further facilitating its export activities.

Product Category Revenue Contribution (2022)
Oncology 45%
Cardiovascular 25%
Central Nervous System 20%
Other Therapeutics 10%

The company's commitment to innovation and quality is further highlighted by its pipeline of drugs in various stages of development. As of 2023, Grand Pharmaceutical has over 10 new drugs submitted for clinical trials, including treatments for rare diseases, reflecting its strategic focus on specialized markets.



A Who Owns Grand Pharmaceutical Group Limited

Grand Pharmaceutical Group Limited, which trades on the Hong Kong Stock Exchange under the ticker symbol 00512.HK, has a diversified ownership structure that includes institutional investors, private equity, and individual shareholders. As of October 2023, the company’s market capitalization stands at approximately HKD 8.5 billion.

The significant shareholders and their ownership stakes are as follows:

Shareholder Ownership Percentage Type of Ownership
Grand Pharmaceutical Group (BVI) Limited 34.58% Controlling Shareholder
China Life Insurance Company Limited 7.92% Institutional Investor
Citi Group Global Markets 5.67% Institutional Investor
Other Institutions 13.45% Institutional Investors
Individual Shareholders 38.38% Retail Investors

In the financial year ending December 2022, Grand Pharmaceutical reported total revenue of HKD 4.2 billion, with a year-over-year growth rate of 12.5%. The company's net profit margin also showed improvement, reporting a net income of HKD 1.1 billion and a net profit margin of 26.2%.

Ownership distribution is further influenced by the company’s issuance of new shares and share buyback programs. As of the most recent fiscal year, it was noted that the company repurchased around 5 million shares, amounting to approximately HKD 150 million.

Grand Pharmaceutical has also been actively seeking partnerships and collaborations to further enhance its market presence. In April 2023, they announced a strategic alliance with a leading biopharmaceutical company to co-develop a new oncology drug, which is expected to bolster their market share and drive future revenue growth.

The shareholder composition and strategic business moves indicate a strong foundation for Grand Pharmaceutical. Moving forward, regulatory changes and market dynamics will play crucial roles in determining how ownership and share distributions evolve within the company.



Grand Pharmaceutical Group Limited Mission Statement

Grand Pharmaceutical Group Limited, a prominent player in the pharmaceutical industry, aims to enhance global healthcare through innovative and high-quality products. The company focuses on providing affordable medical solutions while adhering to the highest standards of quality and customer satisfaction.

As of 2022, Grand Pharmaceutical Group reported revenue of approximately RMB 5.4 billion, indicating a year-over-year growth of 15%. This growth underscores the company’s commitment to expanding its product offerings and enhancing its market position.

The mission statement reflects its core values: integrity, innovation, and commitment to society. The organization’s ambition is to develop new drugs, improve accessibility, and contribute to the advancement of medical science. Grand Pharmaceutical Group emphasizes research and development, which comprised approximately 10% of its total revenue in the latest fiscal year, amounting to around RMB 540 million.

The company's strategic goals include:

  • Expanding its market presence internationally.
  • Investing in biotechnology and generic drug development.
  • Enhancing operational efficiency through advanced technologies.

To provide more insight into the company's commitment to innovation and quality, the following table details the key product segments and their respective sales performance:

Product Segment Sales (RMB Billion) Growth Rate (%)
Oncology 2.1 18%
Cardiovascular 1.3 12%
Antibiotics 0.9 10%
Others 1.1 5%

Grand Pharmaceutical Group's ongoing commitment to corporate social responsibility is evident in its mission. The company has initiated programs to improve healthcare accessibility in rural China, with investments amounting to approximately RMB 300 million over the past three years.

With a workforce of over 3,000 employees, Grand Pharmaceutical Group prioritizes talent development, ensuring that its mission is driven by skilled professionals in the pharmaceutical field.

The company’s innovative spirit is also highlighted by its investment in research collaborations with leading universities, which has resulted in over 50 patents filed since 2020.



How Grand Pharmaceutical Group Limited Works

Grand Pharmaceutical Group Limited, listed on the Hong Kong Stock Exchange under the ticker 00512.HK, operates primarily within the pharmaceutical industry, engaging in the research, development, manufacturing, and sale of pharmaceutical products. As of the most recent fiscal year, Grand Pharmaceutical reported a revenue of approximately HKD 6.5 billion, demonstrating a growth of 12% year-over-year as it expands its product portfolio and market reach.

The company’s operations are structured across several key segments:

  • Research and Development
  • Manufacturing
  • Sales and Marketing
  • Logistics and Distribution

In the R&D segment, Grand Pharmaceutical focuses on developing innovative therapies, particularly in areas such as oncology, cardiovascular diseases, and infectious diseases. The company has allocated about 15% of its annual revenue towards R&D, amounting to HKD 975 million in the latest financial year.

Manufacturing capabilities are centralized in facilities that adhere to international standards, including Good Manufacturing Practices (GMP). Grand Pharmaceutical's production volume for the year was approximately 8 million units of various drug formulations.

In terms of sales and marketing, Grand Pharmaceutical employs a team of over 1,000 professionals dedicated to promoting its products in both domestic and international markets. The company has established partnerships with over 30 distributors worldwide, enhancing its global footprint.

Segment Revenue Contribution (HKD) Year-Over-Year Growth
Research and Development 975 million 15%
Manufacturing 2.5 billion 10%
Sales and Marketing 2 billion 14%
Logistics and Distribution 1 billion 5%

Grand Pharmaceutical's logistics and distribution operations ensure that products are delivered efficiently across various regions. The company utilizes a network of warehouses and distribution centers that allows for timely delivery and inventory management.

Financially, Grand Pharmaceutical exhibited a net profit margin of 20% for the last fiscal year, resulting in a net profit of approximately HKD 1.3 billion. Its earnings per share (EPS) stood at HKD 0.50, displaying strong profitability metrics that attract potential investors.

The company has also maintained a robust balance sheet, with total assets amounting to approximately HKD 10 billion and total liabilities of HKD 4 billion, presenting a debt-to-equity ratio of 0.4.

Grand Pharmaceutical's stock performance has been favorable, with shares appreciating by around 35% over the past year. The market capitalization of the company is currently estimated at HKD 8 billion.

Overall, Grand Pharmaceutical Group Limited operates a comprehensive model that integrates R&D, manufacturing, and distribution of pharmaceutical products, reflecting efficient management and strong growth potential in the evolving healthcare landscape.



How Grand Pharmaceutical Group Limited Makes Money

Grand Pharmaceutical Group Limited is a prominent player in the pharmaceutical industry, primarily generating revenue through various segments including manufacturing, research and development, and distribution of pharmaceutical products. For the fiscal year ending December 31, 2022, the company reported a total revenue of approximately HKD 7.68 billion.

The company operates through three main business segments:

  • Pharmaceutical Manufacturing
  • Healthcare Products
  • Research and Development

In 2022, the pharmaceutical manufacturing segment contributed significantly to the overall revenue, accounting for around 85% of total sales. The healthcare products segment provided an additional 10%, while research and development efforts yielded 5%.

The table below illustrates the revenue breakdown by segment for 2022:

Business Segment Revenue (HKD million) Percentage of Total Revenue
Pharmaceutical Manufacturing 6,528 85%
Healthcare Products 768 10%
Research and Development 384 5%

Grand Pharmaceutical Group's profitability is further enhanced through its strategic partnerships and collaborations with international pharmaceutical companies. In 2022, these alliances contributed to reducing operational costs by approximately 15%, allowing for better pricing strategies in competitive markets.

Additionally, the company has invested heavily in innovative drug development. In 2022, R&D expenditures reached around HKD 600 million, representing 7.8% of total revenue, indicating a strong commitment to expanding its product pipeline and enhancing long-term growth prospects.

Moreover, Grand Pharmaceutical Group has been focusing on expanding its market presence in key regions, particularly in Asia and Europe. In 2022, the company’s international sales grew by 25% year-over-year, accounting for roughly 20% of total revenue.

Grand Pharmaceutical's sales strategy is supported by a well-established distribution network, which consists of over 2,000 sales representatives and partnerships with more than 100 distributors worldwide. This has allowed the company to maintain a competitive edge and effectively reach various customer segments.

The following table outlines key financial metrics demonstrating Grand Pharmaceutical Group's financial health over the last three years:

Year Total Revenue (HKD billion) Net Profit (HKD million) R&D Expense (HKD million)
2020 6.25 800 500
2021 7.00 900 550
2022 7.68 1,000 600

Grand Pharmaceutical Group's diversified revenue streams and robust financial performance underscore its ability to adapt to market conditions and capitalize on growth opportunities. As the pharmaceutical sector continues to thrive, the company is well-positioned to leverage its strengths and achieve further financial success.

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