CSPC seeks admission to STAR market

CSPC Pharmaceutical Group is proposing an issue of CNY-denominated shares or Chinese depository receipts to gain admission to trading on the Science and Technology Innovation Board of the Shanghai Stock Exchange (STAR market).

The proposed domestic sale is conditional upon, and subject to, market conditions, as well as a green light from shareholders at the next general meeting and regulatory approvals.

Proceeds from the issue of either CNY-denominated stocks or Chinese depository receipts will be used for the principal businesses of the company.

The generic and bulk drug manufacturer has not revealed further information on its plans to list in the mainland.

CSPC has over 17,300 employees, and its headquarters and major production facilities and research and development centres are located in Shijiazhuang City, Hebei province.

The holding company invests in the advancement, manufacture and sale of medicines and pharmaceutical-related products.

Its finished items are mainly sold in China and its existing portfolio consists of antibiotics; cardio-cerebrovascular, diabetes, neurology and oncology drugs; and traditional Chinese medicine.

CSPC generates revenue by selling its finished medications to distributors, which in turn sell the products to the end-user customers that range from hospitals and health-care centres, to clinics and pharmacy stores.

Bulk drugs include antibiotics, vitamin C and caffeine in the powder form, which are mainly exported to overseas markets such as the US, Germany, Japan and India.

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CSPC generated revenue of CNY 22.10 billion (USD 3.10 billion) in the 12 months ended 31st December 2019 (FY 2018: CNY 17.72 billion).

Net profit attributable to shareholders rose year-on-year to CNY 3.71 billion, from CNY 3.08 billion in FY 2018.

CSPC’s total line was up at CNY 6.13 billion in the three months ended 31st March 2020, from CNY 5.49 billion in Q1 2019.

Net profit attributable to shareholders jumped 21.8 per cent to CNY 1.16 billion in Q1 2020 (Q1 2019: CNY 951.83 million).

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