CR Sanjiu published its Interim Report for 2014 on August 23. The report shows that in the first half of 2014 the company realized a total business income of CNY 3.819 billion, which is equal to that of the same period in 2013, and a net profit of CNY 617 million, a slight year-on-year increase of 2%.

The income from the OTC business in the first half of 2014 was CNY 1.939 billion with a gross margin of 64.0%, which is the same as that of the same period of 2014. Counting by the category, sales of 999 Ganmaoling and medicines for child cold and other pediatric medicines for children increased over the same period of 2013, thanks to the promotion in the TV program “Daddy, Where Are We Going?”; sales of orthopedic drugs saw a remarkable increase after CR Sanjiu and Guilin Tianhe were integrated. On the other hand, sales of skin, gastrointestinal, pain-easing and replenishing drugs dropped slightly.

The income from the prescription drugs totalled CNY 1.28 billion, with a slight year-on-year increase of 1.1%, and a gross margin of 64.9%. From the aspect of category, compared with last year, Chinese medicinal granula reach a growth of 10%, Chinese medicinal injection remain the same growth rate, while the antibiotic and bulk drug’s growth rate were decreased by10%. The income from sales of Yinzhihuang, Cinobufotalin Oral Dosages and other drugs for special purposes saw a rapid growth, thanks to the efforts on the pre-cultivation.

The income from medical services in the first half of 2014 totalled CNY 317 million, with a year-on-year increase of 43%, and a gross margin of 25.3%.