SSY Group Limited announces 2020 annual results

• Total revenue HK$4,261 million, representing a decrease of 8.1% y-o-y
• Net profits HK$612 million, representing a decrease of 46.1% y-o-y
• The Board resolved to pay final dividend of HK$0.05 /share

HONG KONG SAR – Media OutReach – 30 March
2021 – SSY Group Limited (“SSY”
or the “Company”; Stock Code: 2005.HK) and its subsidiaries (together, the
“Group”) presents the annual results of the Company for the year ended 31 December
2020 (“2020” or “the year”).

During the year, the
Group achieved a revenue of HK$4,261 million, representing a decrease of 8.1%
and the gross profit margin increased
by 1.5 percentage point to 63.6%. The Group achieved net profits of HK$612 million,
representing a decrease of 46.1% compared with last year. During the year, the operational
activities of various size of hospitals and various types of clinics in the PRC
were severely disrupted by the epidemic and thus the number of patients
substantially decreased. Also, key product Moxifloxacin Hydrochloride &
Sodium Chloride Injection was affected by national centralised procurement. Sales
volume of intravenous infusion solutions, being the major products of the
Group, dropped considerably. Sales volume of the intravenous infusion solutions
was approximately 1,190 million bottles/bags, representing a decrease of
approximately 23% compared to last year. Facing significant pressure from the
market, the Group responded actively by further securing and stabilizing its
market, and laid a solid market foundation for the rapid recovery of the
intravenous infusion solution business after the epidemic. On the other hand,
the Group took effective measures to actively adjust its product mix and
facilitate the rapid growth of businesses in ampoules, bulk pharmaceuticals and
oral preparations, so as to further achieve the diversification of the business.

The Board of directors resolved to pay a final dividend of HK$0.05 per
share for year 2020, together with interim dividend HK$0.05 per share, total
dividend for full year of 2020 will be HK$0.10 per share, representing a
decrease of approximately 9% from last year.

During the year, revenue of ampoule products amounted to HK$863 million,
representing a growth of 1.5 times compared to last year. During the year, the
Group built a new production line designated for 10ml PP ampoule injections to
further expand production capacity of specialised ampoule products. In respect
of bulk pharmaceuticals business, through continuous optimization and
enhancement of production processes, preliminary production cost advantage has
revealed, a new landscape is gradually formed with major bulk pharmaceuticals
and promising new products which are high value-added specialised bulk
pharmaceuticals as coordinating development. Oral preparations business segment achieved preliminary results. After
implementation of centralised procurement in the PRC, new products Cefdinir
capsule and Prucalopride Succinate tablet were the first tender won by the Group.
The PRC government has ordered the Group’s Abidol Hydrochloride capsule as a
broad-spectrum antiviral drug through centralised procurement, which has played
a positive role in this fight against the epidemic. The revenues of Abidol for
the year amounted to RMB93.40 million, representing a significant increase of
13.5 times compared to last year. Export sales to foreign countries achieved a
growth despite the general trend, with increases in export revenue of 40.7% and
export revenue of infusion solution of 10.2% compared to last year.

Following along the lines of
transformation, upgrade and innovation development, the Group continuously
increased its efforts in technological innovation. The Group’s pilot-testing
and industrialised support project for pharmaceutical research and development
platform have been handed over for use in May 2020, which will facilitate the
Group its industrial transformation and upgrade. Type I innovative drug NP-01,
the Group’s first innovative drug, has received approval for clinical trial and
its clinical testing research have already commenced. During year 2020, 6
products with 7 specifications, including Prucalopride Succinate tablet (1mg,
2mg), Cefdinir capsule (0.1mg), Rosuvastatin Calcium Tablet (10mg), Doxofylline
Injection, Ropivacaine Hydrochloride Injection and Moxifloxacin Hydrochloride
& Sodium Chloride Injection, passed the Consistency Evaluation of Quality
and Efficacy of Generic Drugs in the PRC or were regarded as passing the
consistency evaluation. During the year, 5 approvals for consistency evaluation
of injections have been obtained. Ciprofloxacin Lactate Injection was the first
one of such product passing the consistency evaluation in the PRC while
Fluconazole and Sodium Chloride Injection and Bromhexine Hydrochloride
Injection were the second ones of such products passing the consistency
evaluation in the PRC. The 250ml: 0.25g specification and 100ml:0.5g
specification of Metronidazole and Sodium Chloride Injection were the first and
second one of such specifications passing the consistency evaluation in the PRC
respectively.

Looking ahead in 2021, domestic and
international economy will remain complex and dynamic. Affected by the
normality under novel coronavirus epidemic, the pressure arising from external
factors may persist and bring new challenges to the Group’s operation and
sales. Facing numerous uncertainties, the Group will continue to keep its
composure, uphold its development focus and do its best in maintaining the
momentum in sustainable and stable development of the Group. The Group will
promote development by innovation, and improve efficiency by management. The
Group will maintain the leading position of our major products in intravenous
infusion solution market. The Group will strive to achieve recovery growth of
intravenous infusion solution segment, with an estimated sales volume of 1,600
million bottles/bags, representing an increase of approximately 34% from 2020.
The Group will continue to maintain the fast growth of ampoule injection
business so as to make ampoule business segment one of the principal businesses
of the Company soon. On the other hand, the Group will actively utilize the
production capacity of bulk pharmaceuticals and improve capacity utilization to
lay a solid foundation for the listing in the PRC. Moreover, the Group will
continue to make progress on implementation of innovative drug evaluations and
consistency evaluations. We will adhere to the new product development idea of “combination
of generic and innovative drugs” with development of as injections the basis.
At the same time, we will take into consideration of research and development
of new types of oral preparation, bulk pharmaceuticals and medical materials. Meanwhile,
the Group strives to make new breakthroughs in the research and development of
innovative drugs, push forward the phase I clinical trial of anti-tumor Type 1
innovative drug NP-01, and conduct preliminary research on anti-liver fibrosis
Type 1 innovative drug AND-9, anti-epileptic compound QO-83 and anti-tumor Type
2 chemical innovative drug Miriplatin.

Mr. Qu Jiguang, Chairman and CEO of SSY Group Limited said, “Facing
the risks and challenges persisting during the post-epidemic era, we are full
of confidence on the future development of the Group. Leveraging on the
competitive edges on our scale, quality, lean management and branding in the
industry, we will firmly grasp development initiatives, keep the tenacity and
vitality from innovation development, and push forward high-quality development
of the Group. We will deliver more solid development results to bring
satisfactory returns to our investors.”