2016-07-19-港交所-天大药业_2016年报_126页_2mb

2016 Annual Report Summary

Core Information

• Company Name: Tianda Pharmaceuticals Limited (天大藥業有限公司)
• Registered Office: Cricket Square, Hutchins Drive, P.O.Box 2681, Grand Cayman, Cayman Islands
• Place of Listing: The Stock Exchange of Hong Kong Limited
• Stock Code: 00455
• Corporate Website: www.tiandapharma.com
• Head Office: Suites 2405-2410, 24th Floor, CITIC Tower, No.1 Tim Mei Avenue, Central, Hong Kong

Corporate Structure

• The Group includes Tianda Pharmaceuticals Limited and its subsidiaries.
• A structure chart is provided (see image) showing the organizational framework as of 31 March 2016.

Financial Summary

Key Financial Figures (Year ended 31 March)

Key Financial Highlights

• Revenue Growth: 38.3% increase in consolidated revenue from FYE 2015 to FYE 2016.
• Profit Improvement: The Group turned a loss of HK$23,016,000 in FYE 2015 to a profit of HK$13,367,000 in FYE 2016.
• Gross Profit Margin: Improved from 50.1% to 57.4%.
• Earnings Per Share (EPS): Increased from HK$2.30 in 2012 to HK$0.32 in 2016.
• Non-controlling Interests: The equity attributable to non-controlling interests increased from HK$36,434,000 in 2015 to HK$6,798,000 in 2016.

Directors' Biographical Details

Executive Directors

• Mr. Fang Wen Quan (Chairman): 47 years old, founder and chairman of Tianda Group. Appointed as Chairman in 2003 and resigned as Managing Director on 3 August 2015. Has extensive experience in corporate strategy and management.
• Mr. Shi Shaobin: 48 years old, appointed as Managing Director on 3 August 2015. Has a strong background in biochemistry and business administration.
• Mr. Lui Man Sang: 52 years old, appointed as Executive Director in 2013. Has experience in financial management across various industries.
• Mr. Liu Huijiang: 60 years old, appointed as Executive Director in 2006. Resigned on 23 March 2016.

Non-Executive Directors

• Mr. Shen Bo: 43 years old, appointed as Non-Executive Director on 10 August 2015. Has extensive experience in financial management and corporate governance.
• Mr. Feng Quanming: 39 years old, appointed as Non-Executive Director on 23 March 2016. Has a background in accounting and finance.

Independent Non-Executive Directors

• Mr. Lam Yat Fai: 50 years old, appointed in 2004. Has over 26 years of experience in auditing, taxation, and corporate finance.
• Mr. Chiu Sung Hong: 69 years old, appointed as Chairman of the Audit Committee in 2008. Has over 30 years of legal practice experience.
• Mr. Chiu Fan Wa: 51 years old, appointed as Independent Non-Executive Director in 2009. Has extensive experience in accounting and auditing.

Key Business Activities and Strategies

• The Group focused on R&D, production, and sales of pharmaceutical, biotechnology, and healthcare products.
• Strategic Partnerships: Introduced Shanghai Pharmaceuticals Group as a strategic partner in July 2015 and invested in ASLAN Pharmaceuticals Limited (Singapore-based oncology R&D company) in December 2015.
• Product Expansion: Expanded the product portfolio of Herb Valley, an Australian healthcare brand.
• Market Development: Strengthened sales and marketing efforts, expanded into chain pharmacies, clinics, and international markets, and launched an e-commerce platform for healthcare products.
• Product Highlights: Developed products such as Acarbose (diabetic medicine), Yi An Decoction (Chinese medicine for drug addicts), ZhiKang Granules (traditional Chinese lipid control product), and Qi-Shangzhen Oral Solution (made from Panax notoginseng).

Financial Review

• Revenue: Increased by 38.3% to HK$192,800,000 in FYE 2016.
• Gross Profit: Rose by 58.7% to HK$110,700,000.
• Profit for the Year: Turned from a loss of HK$17,900,000 in FYE 2015 to a profit of HK$6,600,000 in FYE 2016.
• Cash Flow: Achieved a positive cash inflow of HK$13,400,000 in FYE 2016, compared to an operational cash outflow of HK$16,300,000 in FYE 2015.
• Financial Position: Improved with a current ratio of 6.39 and a quick ratio of 5.84 as of 31 March 2016.

Final Dividend

• The Board recommended a final dividend of HK$0.27 per share for FYE 2016, subject to approval at the 2016 Annual General Meeting.
• The dividend is expected to be paid on or before 9 September 2016.

Appreciation

• The Chairman expressed gratitude to shareholders, customers, and partners for their long-term trust and support.
• The Group aims to continue leveraging its strengths to accelerate development and achieve the "Ten Billion with Centennial Growth" strategic goal.

Conclusion

The 2016 Annual Report highlights the Group's successful financial recovery, strategic expansion, and improved operational performance. The Group's focus on R&D, strategic partnerships, and market diversification has contributed to its growth and profitability. The financial position has strengthened, and the Group is committed to continuing its development and achieving long-term growth objectives.