Huadong Medicine Co., Ltd (SHE: 000963) has published its Q3 2022 financial report, revealing robust growth. The Chinese firm generated RMB 9.66 billion (USD 1.3 billion) in revenues during the period, marking a 10.4% year-on-year (YOY) increase. Net profits for the quarter were RMB 630 million (USD 86.7 million), up 10.8% YOY.
Nine-Month Performance
Over the first three quarters of 2022, Huadong Medicine reported total revenues of RMB 27.86 billion (USD 3.83 billion), reflecting a 7.4% YOY increase. This growth followed a 0.4% expansion in Q1 and a 5.9% rise in Q2. Net profits for the nine-month period reached RMB 1.9 billion (USD 261.7 million), up 7.9% YOY.
Segment Performance
Breaking down the performance by business unit, the “pharmaceutical industry” segment, which includes the CSO business, generated RMB 8.22 billion (USD 1.1 billion) in revenues over Q1-Q3, up 5.3% YOY. The “pharmaceutical commerce” unit brought in RMB 18.97 billion (USD 2.6 billion), up 9.8% YOY. The medical aesthetics sector continued its growth momentum, achieving record-high revenues of RMB 1.37 billion (USD 188 million).
Strategic Investments and Expansions
During the period, Huadong Medicine completed an equity investment in Heidelberg Pharma, becoming its second-largest shareholder with a 35% stake. In the antibody-drug conjugate (ADC) field, the company invested in antibody developer Qyuns Bio and ADC linker and conjugate technology firm Nuo Ling Bio. It also incubated Huida Bio, a Zhejiang-based company with a full product line of ADC drug toxin raw materials, and took control of Doer Bio, a multi-specific therapeutic protein specialist.
Additionally, Huadong Medicine’s subsidiary, Hangzhou Zhongmei Huadong Pharma, acquired a 60% stake in Huaren Technology for RMB 396 million (USD 54.5 million), marking its entry into the nucleoside raw materials market for small nucleic acid drugs and diagnostic reagents. In July, Zhongmei Huadong established a synthetic biology technology institute for East China in collaboration with the Hangzhou Government and the Zhejiang University of Technology.
Conclusion
Huadong Medicine’s Q3 2022 financial results underscore the company’s strong performance and strategic investments. With significant growth across its business segments and continued expansion into new markets, Huadong Medicine is well-positioned for future success.-Fineline Info & Tech
