Hebei Changshan Biochemical Pharmaceutical Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Hebei Changshan Biochemical Pharmaceutical Co., Ltd.

Hebei Changshan Biochemical Pharmaceutical Co., Ltd., founded in 1996, is a prominent player in the pharmaceutical industry in China, particularly known for its production of pharmaceutical intermediates and APIs (Active Pharmaceutical Ingredients). The company is headquartered in the Changshan Economic Development Zone, Hebei Province.

In its early years, Hebei Changshan focused primarily on the research and production of basic chemical materials, gradually transitioning into pharmaceutical production. The company gained significant recognition in 2005 when it became publicly listed on the Shenzhen Stock Exchange, trading under the stock code 002001.

By 2007, Hebei Changshan reported revenues of approximately ¥1.23 billion (around $180 million) and a net profit of about ¥200 million (approximately $29 million). This marked a substantial increase in profitability, demonstrating the company's capacity for growth and expansion.

In 2010, the company embarked on a diversification strategy, investing in biologics and high-value-added pharmaceuticals. This move was critical as it positioned Hebei Changshan to capture a broader market share amid the increasing demand for advanced therapeutic agents.

In 2018, the company's revenue reached approximately ¥5.01 billion (around $730 million), reflecting a compound annual growth rate (CAGR) of about 18% over a decade. The net profit was reported at ¥650 million (approximately $95 million), underscoring the successful execution of its strategic initiatives.

By 2020, Hebei Changshan had expanded its production capacity significantly, with output exceeding 10,000 tons of pharmaceutical products annually. The company invested heavily in research and development, with R&D expenditures accounting for over 6% of total revenues.

In 2022, the company reported a revenue of approximately ¥6.2 billion (around $900 million) and net profits of about ¥800 million (approximately $116 million). The company continued to strengthen its market position, with an export volume that constituted approximately 30% of its total sales.

Below is a summary of key financial metrics over the years:

As of 2023, Hebei Changshan continues to focus on innovation, aiming to enhance its product portfolio with a strong emphasis on sustainable practices and environmental responsibility. The company plans to invest over ¥1 billion (approximately $145 million) by 2025 to further improve its production technologies and expand its operations internationally.

A Who Owns Hebei Changshan Biochemical Pharmaceutical Co., Ltd.

Hebei Changshan Biochemical Pharmaceutical Co., Ltd., established in 1995, has a diverse ownership structure that includes both state-owned and private investors. As of the latest data from 2023, the majority shareholder is the Hebei Changshan Group Co., Ltd., which holds approximately 39.16% of the company's shares.

In addition to the controlling interest by the Hebei Changshan Group, the other significant stakeholders include various institutional investors, as well as individual shareholders. The share distribution is essential for understanding the control and governance of the company.

The company is listed on the Shanghai Stock Exchange with the stock code 002820. As of October 2023, the market capitalization of Hebei Changshan Biochemical Pharmaceutical Co., Ltd. stands at approximately ¥11.56 billion (around $1.69 billion USD).

In the latest financial report for the fiscal year 2022, the company reported revenue of ¥1.23 billion (approximately $179 million USD), reflecting a year-on-year growth of 10.2%. The net profit for the same year was reported at ¥185 million (about $26.8 million USD), representing a profit margin of 15.0%.

Hebei Changshan Biochemical Pharmaceutical Co., Ltd. specializes in the production of various chemical and pharmaceutical products, primarily focusing on the synthesis of amino acids and other biochemicals. Its strategic positioning in China's pharmaceutical market enables it to capture significant market share, further influenced by its ownership structure.

Furthermore, the company has been actively expanding its international presence. In 2023, Hebei Changshan Biochemical reported that exports accounted for approximately 30% of its total revenue, highlighting its commitment to global market penetration.

Hebei Changshan Biochemical Pharmaceutical Co., Ltd. Mission Statement

Hebei Changshan Biochemical Pharmaceutical Co., Ltd., established in 1995, has positioned itself as a leading player in the biopharmaceutical industry. The mission statement emphasizes a commitment to providing high-quality pharmaceuticals while promoting innovation and sustainability within the healthcare sector. The company aims to contribute to global health improvements through research and development of effective medications.

As of 2023, Hebei Changshan reported revenues of approximately ¥2.56 billion (around $398 million). The company manufactures various pharmaceutical products, notably antibiotics and other therapeutic agents, serving both domestic and international markets.

In 2022, the company achieved a gross profit margin of 36.5%, reflecting effective cost management and operational efficiency. Their product portfolio includes over 200 varieties of drugs, with a significant focus on expanding the production of high-value generics and active pharmaceutical ingredients (APIs).

The strategic goals outlined in its mission statement focus on:

• Innovative research in the field of biochemistry.
• Manufacturing high-quality pharmaceutical products.
• Establishing strategic partnerships to enhance technological capabilities.
• Enhancing patient outcomes through better access to medications.
• Commitment to environmental sustainability throughout its operations.

In alignment with this mission, Hebei Changshan has invested heavily in research and development, spending approximately ¥250 million (around $39 million) in R&D in 2022, which represents about 9.8% of its total revenue. These investments are crucial for driving future growth and maintaining competitive advantages.

Hebei Changshan’s mission encapsulates its dedication to improving healthcare quality through its innovative pharmaceutical solutions. The company’s growth trajectory indicates a strong commitment to its goals, ensuring sustainability, quality, and research excellence in all its initiatives.

How Hebei Changshan Biochemical Pharmaceutical Co., Ltd. Works

Hebei Changshan Biochemical Pharmaceutical Co., Ltd., established in 1994, specializes in the production and sale of pharmaceutical intermediates and raw materials. The company is primarily focused on the development of biochemical products, particularly antibiotics and other pharmaceutical ingredients.

In 2022, Hebei Changshan reported revenue of approximately 2.85 billion CNY, with a net profit of around 307 million CNY, showcasing a year-on-year growth of 12% in revenue. The company's earnings per share (EPS) for the same year stood at 0.44 CNY.

The firm operates several production facilities that adhere to stringent quality control and management systems. Their primary products include:

• Penicillin
• Streptomycin
• Cephalosporins
• Biochemical reagents

As of the end of 2022, Hebei Changshan had a production capacity of:

The company has made significant investments into research and development (R&D), allocating roughly 8% of its annual revenue to R&D activities. This investment is aimed at expanding their product line and entering new markets. For instance, in 2023, the company plans to launch four new antibiotic products targeted at both domestic and international markets.

In terms of geographic reach, Hebei Changshan exports around 40% of its total production, with major markets in Asia, Europe, and America. The company has established partnerships with several multinational pharmaceutical firms, enhancing its global footprint.

Regarding financial health, Hebei Changshan's total assets as of December 31, 2022, were valued at 5.76 billion CNY, with liabilities amounting to 3.12 billion CNY. This results in a debt-to-equity ratio of approximately 0.54, indicating a balanced approach to leveraging its operations.

Additionally, the company maintains a robust working capital position, with a current ratio of 1.8, which suggests it has sufficient short-term assets to cover its short-term liabilities. Investment activities have been supported by consistent cash flows from operations, which totaled 550 million CNY in 2022.

Hebei Changshan's stock is listed on the Shenzhen Stock Exchange, trading under the ticker symbol 002001. The market capitalization as of October 2023 is approximately 25 billion CNY. Over the past year, the stock has seen a price increase of about 15%, reflecting positive investor sentiment driven by strong financial performance and growth prospects.

In summary, Hebei Changshan Biochemical Pharmaceutical Co., Ltd. operates as a key player in the biopharmaceutical industry, driven by a comprehensive production capacity, extensive R&D investments, a solid financial foundation, and a growing international market presence.

How Hebei Changshan Biochemical Pharmaceutical Co., Ltd. Makes Money

Hebei Changshan Biochemical Pharmaceutical Co., Ltd. operates primarily in the pharmaceutical sector, focusing on the production and distribution of active pharmaceutical ingredients (APIs) and finished dosage forms. The company generates revenue through several key avenues:

1. Active Pharmaceutical Ingredients (APIs)

The company is a significant player in the production of APIs, which are essential components in the manufacturing of medications. As of 2022, Hebei Changshan reported an annual revenue of approximately ¥1.35 billion from its API division. This segment constitutes around 55% of the company's total revenue.

2. Finished Dosage Forms

Alongside APIs, Changshan produces finished dosage forms including tablets, capsules, and injections. In 2022, this segment contributed about ¥1.1 billion in revenue, making up around 45% of the overall income. The continuous investment in production facilities has allowed the company to expand its portfolio in this area.

3. Export Markets

Hebei Changshan has been increasing its focus on export markets, significantly enhancing its international sales. In 2022, exports constituted more than 30% of its total revenue, with key markets including Europe, North America, and Southeast Asia. The export revenue reached ¥600 million in the same year.

4. Research and Development

The company invests heavily in R&D to innovate and improve its product offerings. In 2022, the R&D expenditure was about ¥150 million, representing around 11% of its total revenue. This investment is aimed at developing new and more efficient drugs, which can lead to higher margin products.

5. Market Positioning

Hebei Changshan has established a strong market position within China, benefitting from favorable government policies that support domestic pharmaceutical manufacturers. The company is ranked among the top 10 in China for API production, leveraging economies of scale to keep costs competitive and margins healthy.

6. Financial Performance Overview

The company has seen a steady growth rate of approximately 15% annually over the last three years, driven by expanding production capacity and increased demand for pharmaceuticals globally. The strategic expansion into biotechnology and generic drugs further positions Hebei Changshan to capitalize on emerging market trends in healthcare.

7. Regulatory Compliance and Quality Standards

Compliance with international regulatory standards such as FDA and EMA is critical for Hebei Changshan's export ambitions. The adherence to these guidelines enhances its reputation and opens up new market opportunities. The company's quality assurance processes ensure that 95% of its products meet international quality standards, leading to a reduced rate of product recalls and increasing customer trust.

In conclusion, through a combination of robust API production, finished dosage forms, strategic exports, continuous R&D investment, and adherence to quality standards, Hebei Changshan Biochemical Pharmaceutical Co., Ltd. effectively generates revenue and secures its position within the competitive pharmaceutical landscape.