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Charmacy Pharmaceutical Announces 2015 Annual Results  
Turnover Increased by 12.71% to RMB3.40 Billion 
Gross Profit Increased by 20.71% to RMB164.70 Million

Financial Highlights (Audited)

For the year end 31 December









Gross Profit




Gross Profit Margin




[Hong Kong, 24 March 2016]Charmacy Pharmaceutical Co., Ltd. (“Charmacy Pharmaceutical” or the “Company”, together with its subsidiaries (the “Group”); stock code: 2289.HK), one of the leading pharmaceutical distributors in Southern China, is pleased to announce the audited consolidated financial results of the Group for the year ended 31 December 2015.

The turnover of the Group in 2015 was RMB3,397.13 million, increased by approximately
12.71% as compared to last year. The gross profit margin increased to 4.85% in 2015 from
4.53% in 2014. The proportion of selling and distribution expenses to the turnover was 1.19%, which was flat compared to 2014. The proportion of administrative expenses to the
turnover increased to 1.89% in 2015 from 1.23% in 2014, primarily due to the inclusion of the listing fees of RMB23.87 million in the administrative expenses. Should such listing fees be excluded, the proportion of administrative expenses to the turnover would be 1.19%. Should the listing fees of RMB23.87 million be excluded, the overall profitability would be increased obviously as compared to last year.

The Group’s principal business is pharmaceutical products distribution in the PRC, and substantially all of turnover were contributed by pharmaceutical products distribution.  The Group procures pharmaceutical products from pharmaceutical manufacturers and distributor suppliers and then sells the products to distributor customers, retail pharmacy stores, and hospitals, clinics, health centres and others. In 2015, the Company followed the established operation target, continued to explore the market in Southern China, with a focus on developing the business of retail pharmacy stores, so as to lay the foundation for the operation of Chuangmei e-Medicine.

As at 31 December 2015, the Company’s distribution network covered 5,245 customers, among which 745 were distributors, 3,256 retail pharmacy stores and 1,244 hospitals, clinics, health centres and others, achieving steady growth compared with in 2014. The increase in retail pharmacy stores was particularly obvious after the trial operation of B2B e-commerce platform of Chuangmei e-Medicine. As at 31 December 2015, we had 1,045 suppliers, among which 749 were pharmaceutical manufacturers and 296 were distributor suppliers.

The Company’s B2B e-commerce platform “Charmacy e-Medicine were in full operation in December 2015. As at 31 December 2015, B2B e-commerce platform had 3,597 registered customers whom are mainly retail pharmacy stores. The turnover contributed from e-transactions through B2B e-commerce platform in 2015 was approximately RMB60.00 million. In 2016, the Company will improve and promote B2B e-commerce platform, which will increase operating efficiencies and reduce transaction costs.

The Group had duly signed a Strategic Cooperation Agreement with SAP Company. The Group will be able to link up each part of business procedures onlineand offline by leveraging on the brand new business suite of SAP Business Suite 4 SAP HANA (SAP S/4HANA), expanding into Hybris e-commerce platform, combining solutions including SAP CRM, mobile application and SAP BO, so as to upgrade the B2B supply chain service and build an integrated information service platform with an omni-channel covering purchasing, logistics, storage, sales and management of customer relationship. The Group is committed to realizing an intelligent and internet-based operation in order to provide more convenient and fast as well as efficient service experience to customers, increase the overall operation efficiency and reduce the operation cost.

Looking into 2016, the Group plans to upgrade the existing logistic facilities and equipment of logistic centers in Shantou and Foshan in order to increase operating efficiencies and lower operating costs, acquire more refrigerated transportation vehicles to expand the distribution coverage, increase available product offering to customer and to provide enhanced transportation service, and plan to upgrade the information system to further enhance operation efficiency. Given the development potential of B2B pharmaceutical market, the Group plans to upgrade B2B e-commerce platform, as well as software and hardware to optimize users’ experience and enhance the stability and strength of systems by the end of 2016; and focus on the online and offline sales and promotional activities and accelerate the development of the Group’s e-commerce platform in order to lower the transaction costs, enhance transaction efficiency and the profitability.The Group plans to acquire an established pharmaceutical distribution company which are based in Southern China including Shenzhen that possesses mature market networks and records a positive profit. The Group’s plan is to introduce around 800 more products, including healthcare products, cosmetic products, medical devices and Chinese medicine decoction pieces by the end of 2016.The Group believes that expanding product offerings and enhancing  product mix will help us to further improve profitability and strengthen customer base, which in turn will enhance competitive position.

Mr. Yao Chuanglong, Chairman, Executive Director and CEO of Charmacy Pharmaceutical Co., Ltd. concluded, “The Shares of the Company were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (the“Stock Exchange of Hong Kong”) in 2015 and it is an important milestone thoughout the development of the Company. Looking into the futures, the domestic healthcare industry will undergo big transformation and the drugs in the publish hospitals will transfer to free competitive market. Our business model is in line with the macro-policy direction. Leveraging our deep understanding and service experience in healthcare distribution market and extensive distribution network, we are in a position to meet diversified needs of customers and improve our competitiveness. We strive to maximize returms for our shareholders.”

Mr. Yao Chuanglong, Chairman, Executive Director and CEO (2nd from left), Ms. Zheng Yuyan, Vice President, Executive Director and CMO (2nd from right),

Mr. Fan Jianbo, Vice President, Executive Director and CTO (right) and Mr. Lin Zhixiong, Executive Director, Joint Company Secretary and CFO (left) 

attended the 2015 annual results briefing.

Mr. Yao Chuanglong, Chairman, Executive Director and CEO introduced the highlights of the annual results to investors.

About Charmacy Pharmaceutical Co., Ltd.
Charmacy Pharmaceutical Co., Ltd. (stock code: 2289.HK) is one of the leading pharmaceutical distributors in Southern China; its distribution network includes Southern China and other regions, such as Fujian Province and it distributes the products to distributor customers, retail pharmacy stores, and hospitals, clinics, health centers and others. Charmacy Pharmaceutical is the third largest privately-owned pharmaceutical distribution company in the Southern China in terms of revenue generated from pharmaceutical distribution business in 2014. Chuangmei Pharmaceutical has a variety of product offerings including western medicines, Chinese patent medicines, healthcare products, Chinese medicine material and decoction pieces, medical devices and cosmetic products. The Company’s B2B e-commerce platform “Charmacy e-Medicine were in full operation in December 2015 in order to offer a more convenient service to clients. Charmacy Pharmaceutical plans to strengthen, expand and integrate its existing distribution network and capabilities to increase distribution coverage, capacity and operating efficiencies and lower our cost and plan to upgrade and promote its B2B e-commerce platform to enhance its market position in Southern China.

Issued by Porda Havas International Finance Communications Group for and on behalf of Charmacy Pharmacetical. For further information, please contact: 
Ms. Camille Xiong       +852 3150 6799
Ms. Shirley Yan           +852 3150 6766
Ms. Angela Shi            +852 3150 6778
Ms. Jessica Li               +852 3150 6702
Mr. Long Wong           +852 3150 6795
Fax: +852 3150 6728

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