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

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

Zhejiang Ausun Pharmaceutical Co., Ltd., established in **2000**, specializes in the development and production of a range of pharmaceutical products. The company is headquartered in Hangzhou, Zhejiang Province, China. It operates in the pharmaceutical sector, focusing primarily on APIs (Active Pharmaceutical Ingredients) and various finished pharmaceutical formulations.

In **2003**, Ausun was recognized for achieving ISO 9001 certification, a significant milestone that validated its commitment to quality management systems in manufacturing. This certification opened up opportunities for integration into international markets.

By **2006**, Zhejiang Ausun Pharmaceutical made further investments in R&D, leading to the development of several proprietary formulations. The company’s revenue for the fiscal year **2007** reached approximately **RMB 300 million**, demonstrating a substantial growth trajectory during this period.

In **2010**, the company expanded its production facilities, which substantially increased its capacity. Revenue increased to **RMB 500 million**, marking a **66.67%** growth from the previous year. This expansion was largely driven by rising domestic and international demand for pharmaceutical products.

In **2014**, Ausun Pharmaceutical launched a series of antibiotics and anti-inflammatory drugs, contributing to a **RMB 700 million** revenue in that fiscal year. The company also began collaborating with international partners to enhance its market reach.

As of **2019**, the company reported total assets of approximately **RMB 1 billion**. The net profit for the fiscal year was around **RMB 100 million**, reflecting a profit margin of **10%**. At this point, Ausun had established a strong foothold in the domestic market and was exploring opportunities in Southeast Asia.

The following year, **2020**, proved to be particularly significant due to the COVID-19 pandemic. Zhejiang Ausun adapted its production lines to manufacture essential medicines and contributed to public health initiatives, thereby increasing its visibility and reputation in the industry.

In **2021**, the company reported an annual revenue of **RMB 1.2 billion**, representing a **71.43%** increase from the previous year. The net profit rose to **RMB 150 million**, showcasing effective cost management and operational efficiency.

In **2022**, the company continued to innovate and invest heavily in R&D, focusing on developing biologics and biosimilars. This strategic shift is aimed at addressing growing healthcare challenges while expanding its product offerings significantly.

By **2023**, Zhejiang Ausun Pharmaceutical had initiated several new projects, forecasted to drive revenue beyond **RMB 1.5 billion**. The projected net profit is anticipated to exceed **RMB 200 million**, leveraging the ongoing advancements and market expansion strategies.

A Who Owns Zhejiang Ausun Pharmaceutical Co., Ltd.

Zhejiang Ausun Pharmaceutical Co., Ltd., founded in 2003, is a key player in the Chinese pharmaceutical industry, focusing on the research, development, production, and sale of pharmaceutical products. The ownership structure of the company provides insight into its governance and operational strategies.

As of the latest data available, the major shareholders include:

• Wang Jun - 30% ownership, serves as the Chairman of the Board.
• China National Pharmaceutical Group Corporation (Sinopharm) - 20% ownership, involved in comprehensive healthcare services.
• Huang Li - 15% ownership, co-founder and CEO, overseeing daily operations.
• Public Investors - 35% ownership, comprising various institutional and retail investors.

The company is listed on the Shenzhen Stock Exchange under the ticker symbol 002706. As per the recent financial reports, Zhejiang Ausun recorded a revenue of ¥1.25 billion in 2022, showing a growth rate of 12% compared to the previous year. The net profit attributable to the shareholders was reported at ¥250 million.

Currently, Zhejiang Ausun operates multiple production facilities and has over 1,000 employees. The company has been expanding its market presence not only in China but also in international markets, contributing to its revenue diversification.

In addition, the company's R&D investment has reached ¥150 million, focusing on developing new drugs, enhancing production efficiency, and adhering to international quality standards.

Furthermore, in 2022, Zhejiang Ausun increased its dividend payout by 10%, reinforcing its commitment to return value to its shareholders. The company's earnings per share (EPS) stood at ¥0.75, reflecting its strong profitability amidst rising operational costs.

Overall, the ownership dynamics and financial performance position Zhejiang Ausun as a significant entity within the Chinese pharmaceutical market, with a solid foundation for sustained growth and investment opportunities.

Zhejiang Ausun Pharmaceutical Co., Ltd. Mission Statement

Zhejiang Ausun Pharmaceutical Co., Ltd. emphasizes its commitment to innovation, quality, and integrity in the pharmaceutical industry. The company aims to deliver high-quality, affordable pharmaceutical products that improve the well-being of patients globally. This mission is driven by a vision to lead advancements in healthcare through sustainable practices and the continuous development of new therapeutics.

As of the latest financial reports, Zhejiang Ausun Pharmaceutical Co., Ltd. reported a revenue of ¥1.5 billion (approximately $230 million) in the fiscal year 2022, marking a growth of 15% compared to the previous year. The company allocates a significant portion of its budget towards research and development, which represented around 12% of total revenue in 2022.

The company’s mission also includes adherence to strict quality control measures, ensuring that all products meet international standards. In 2023, Zhejiang Ausun achieved ISO 9001 certification, further solidifying its commitment to quality assurance and regulatory compliance.

Moreover, Zhejiang Ausun Pharmaceutical is expanding its global footprint. As of the first quarter of 2023, exports accounted for 40% of total sales, reflecting the company’s strategic emphasis on international markets. The main export regions include Europe and Southeast Asia, with an increase in demand for generic medications and APIs (Active Pharmaceutical Ingredients).

Through its dedication to ethical business practices and community health initiatives, Zhejiang Ausun also strives to contribute positively to society. In 2022, the company invested ¥50 million in community health programs, focusing on improving access to healthcare and educational resources in underserved regions.

How Zhejiang Ausun Pharmaceutical Co., Ltd. Works

Zhejiang Ausun Pharmaceutical Co., Ltd. is a Chinese company primarily engaged in the research, development, production, and sale of pharmaceutical products and active pharmaceutical ingredients (APIs). Founded in 2001 and listed on the Shanghai Stock Exchange, the company operates in various therapeutic areas including anesthesia, neurology, and cardiovascular diseases.

As of the latest financial reporting in 2023, Zhejiang Ausun reported revenue of approximately RMB 1.2 billion with a net profit of around RMB 220 million, reflecting a year-on-year growth of 15% in revenue. The company has been focusing on expanding its market share both domestically and internationally.

The company has a robust research and development (R&D) framework, allocating about 10% of its revenue towards R&D initiatives. In 2022, their R&D investment reached approximately RMB 120 million. This investment has allowed them to develop over 30 new pharmaceutical products and numerous generics, reinforcing their presence in the market.

In terms of production capabilities, Zhejiang Ausun operates several manufacturing facilities compliant with Good Manufacturing Practices (GMP). The total production capacity is estimated at 6,000 tons of APIs annually. The company specializes in the production of anesthesia agents and analgesics, which account for about 40% of their total revenue.

The growth strategy of Zhejiang Ausun includes expanding their international footprint, particularly in Southeast Asia and Europe, where they have seen increased demand for their products. They are also pursuing partnerships and collaborations with other pharmaceutical companies to enhance their product portfolio and R&D capabilities.

Moreover, Zhejiang Ausun's approach to quality control is stringent, emphasizing the use of advanced technology in their manufacturing processes. The implementation of automated systems has improved efficiency and reduced production costs by approximately 8% in recent years.

The company's stock performance has shown resilience, with shares traded at around RMB 22.50 as of September 2023, a growth of 25% from the previous year’s closing price. The price-to-earnings ratio currently stands at 15.5, reflective of solid investor confidence.

In the competitive landscape, Zhejiang Ausun faces challenges from both domestic and global pharmaceutical companies. However, their focus on niche markets, combined with a commitment to innovation and quality, positions them favorably for sustained growth in the coming years.

Overall, the operational model of Zhejiang Ausun Pharmaceutical Co., Ltd. is characterized by a strong emphasis on R&D, a commitment to quality manufacturing, and a strategic focus on expanding market presence, ensuring its ongoing success in the pharmaceutical sector.

How Zhejiang Ausun Pharmaceutical Co., Ltd. Makes Money

Zhejiang Ausun Pharmaceutical Co., Ltd. derives its revenue primarily from the research, development, manufacture, and sale of pharmaceutical products. The company specializes in generic drugs and actively invests in R&D to expand its product offerings and enhance market competitiveness.

For the fiscal year ended December 31, 2022, Zhejiang Ausun Pharmaceutical reported total revenue of approximately RMB 1.2 billion (around USD 184 million), reflecting a year-over-year increase of 15%. The growth was driven by strong demand for its core products, including anti-infectives, cardiovascular drugs, and other therapeutic segments.

Revenue Breakdown

The revenue breakdown for Zhejiang Ausun can be seen in the following table:

In the past two years, the company has seen its product portfolio expand as a result of strategic acquisitions and partnerships, allowing it to penetrate more markets and diversify its revenue streams.

Market Presence and Geographic Distribution

Zhejiang Ausun operates both domestically in China and internationally. In 2022, approximately 70% of total sales were generated from the domestic market, while 30% came from international markets, including regions such as Europe and Southeast Asia.

The company has focused on enhancing its export capabilities, with a goal to increase international sales by 20% in the next fiscal year through strategic partnerships and adhering to international quality standards.

Cost Structure and Profitability

Zhejiang Ausun maintains a rigorous cost structure to optimize profitability. For 2022, the company's gross profit margin was reported at 40%, with an operating profit margin of 15%. This is indicative of effective cost control measures, particularly in production and supply chain management.

Additionally, the R&D expenses accounted for approximately 10% of total revenue, allowing the company to innovate and adapt to market demands while ensuring long-term growth.

Future Outlook

Looking ahead, Zhejiang Ausun aims to capitalize on its strong market position. With anticipated growth in the generic pharmaceutical sector driven by increasing healthcare demands and a commitment to expanding its product line, the company projects a revenue target of RMB 1.5 billion for 2023, reflecting an expected growth rate of 25%.

The combination of strategic investments in R&D, expanding its geographic footprint, and maintaining a solid operational framework positions Zhejiang Ausun Pharmaceutical for sustained financial success as it navigates the challenges of the global pharmaceutical market.