On June 24th, 2020, Cuu Long Pharmaceutical Joint Stock Company (DCL) successfully organized the Annual General Meeting of Shareholders (GMS) 2020 in Hanoi.
At the meeting, the attending shareholders approved the Report on production and business results of 2019 and the business plan of 2020, audited financial statements of 2019, the Board of Directors’ report on The General Director appointment and a number of other relevant reports fall under the authority of the General Meeting of Shareholders.
2019 – Profit after tax outperforms 2018
In 2019, Cuu Long Pharmaceutical’s net revenue reached VND 752,014 billion, only completing 79% of the plan, but the after-tax profit reached VND 87,003 billion, exceeding 4% of the plan and surging significantly over the year. 2018 (585%). The decline in revenue of Cuu Long Pharmaceutical first came from ETC bidding last year, this is in the initiative plan of the Company as the price of input materials continues to increase, affecting the cost of goods sold. For that reason, the company has proactively reduced the sales rate of low-profit categories and increased the positive profit group. The OTC segment has not yet reached the sales target, partly due to a change in the Ministry of Health’s business management policies for a number of drugs under special management so the sale of these products to pharmacies faces many difficulties. Along with that, the unstable operation of Euvipharm in the first half of 2019 also has a significant impact on the overall business results of Cuu Long Pharmaceutical.
However, on August 30th, 2019, Cuu Long Pharmaceutical reached a landmark agreement by transferring all of its ownership of Euvipharm to JW Pharmaceutical Corporation, a well-known Korean Pharmaceutical Group. The successful divestment has brought a big breakthrough for Cuu Long Pharmaceutical, bringing profits to the Company as well as helping the Company reverse the provisions and bringing large cash flows to serve the pharmaceutical segments as well as manufaturing empty cysts and medical supplies. At the same time, in the past year, the Capsule 3 factory went into operation with a capacity of 3 shifts, helping Cuu Long Pharmaceutical reach a contract with major western & eastern medicine manufacturers, bringing the encouraging growth in revenue and profit for the Capsule segment.
The production of empty capsules has always been an advantage of Cuu Long Pharmaceutical with a total output of 4,743 million capsules, reaching 101.8% of the plan, up 5.2% over the same period in 2018. The medical equipment factory has also recorded 140.5 million products, equivalent to 101% of the plan, up 9.5% compared to 2018.
2020 – Proceeding to implement investment projects
Entering 2020, the Board of Directors and the entire staff of Cuu Long Pharmaceutical are determined to set a business goal with net sales of VND 844 billion, up 12% compared to 2019; Profit before tax was VND 104,530 billion. Under this plan, Cuu Long Pharmaceutical has planned to keep on investing in major projects, creating a solid foundation for the future of the company such as expanding the empty capsule factory phase 4, expected to raise the productivity to 2.4 billion capsules / year; build a new Medical Materials factory ratified by Benovas Medical Equipment Joint Stock Company with a capacity of 480 million products / year.
In order to improve business efficiency, Cuu Long Pharmaceutical remains to focus on expanding and developing the sales system, training to improve personnel, focusing on building strategic product groups with large sales and high profits either differentiated product lines, less competitors.As one of the key sectors in the parent company’s investment strategy – FIT Group Joint Stock Company, with the mission of connecting and improving the lives of the community through optimal health solutions, Cuu Long Pharmaceutical is making continuous efforts to become one of the leading pharmaceutical companies in Vietnam, highly valued by patients, employees and partners for innovative, accessible products and services which taking the best care.