Steady Increase in Revenue and Profit Compared with 2H 2023

CMS enters the "New Product Era" driven by exclusive and innovative products, with exclusive and innovative drugs revenue accounts for over 56%.

SHENZHEN, CHINA, Aug. 15, 2024 (GLOBE NEWSWIRE) -- On August 15, 2024, China Medical System Holdings Limited (“CMS” or the “Company”) released its 2024 interim results announcement, with a steady increase in overall revenue and profit for the period compared to the second half (2H) of 2023. In the first half (1H) of 2024, the Company recorded a turnover of RMB3,611.1 million, representing a decrease of 21.7% compared with 1H 2023, an increase of 6.1% compared with 2H 2023. In the case that all medicines were directly sold by the Company, the turnover was RMB4,287.5 million, representing a decrease of 22.6% compared with 1H 2023, an increase of 8.9% compared with 2H 2023; Among which, the total revenue of non-National VBP exclusive products and innovative products was RMB2,404.7 million, accounting for 56.1% of CMS’s revenue in the case that all medicines were directly sold by the Company. Profit for the period was RMB903.4 million, representing a decrease of 52.8% compared with 1H 2023, a substantial increase of 92.8% compared with 2H 2023.

The year 2024, not only marks the first year of the commercialization of CMS’s innovative products, but also a crucial point for the release of National Volume Based Procurement (“National VBP”) impact on its financial performance. Deanxit entered the seventh batch of National VBP in November 2022, Plendil and Ursofalk entered the eighth batch of National VBP in July 2023, and none of the three original drugs were selected, which had a negative impact on the Company’s business performance. In 1H 2024, the Company’s overall performance showed a growth trend compared with 2H 2023, indicating that CMS has basically digested the impact of National VBP and successfully entered the "New Product Era" where non-national VBP exclusive products and innovative products drive its growth.

With the approval for marketing of LUMEBLUE (Methylthioninium Chloride Enteric-coated Sustained-release Tablets) in June and METOJECT (Methotrexate Injection)’s additional indication of active rheumatoid arthritis (RA) in adults in July this year, CMS's innovative drug portfolio in the commercialization stage has expanded into 5 products (including 6 indications); simultaneously with a rich and differentiated innovative pipeline reserve. Gathering the power of innovation and riding the momentum of development, CMS is comprehensively shaping new drivers for development with a healthier product structure, further opening up a new cycle of quality development.