Breaking Down Guangdong Zhongsheng Pharmaceutical Co., Ltd. Financial Health: Key Insights for Investors

Breaking Down Guangdong Zhongsheng Pharmaceutical Co., Ltd. Financial Health: Key Insights for Investors

CN | Healthcare | Drug Manufacturers - Specialty & Generic | SHZ

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Founded in 2003, Guangdong Zhongsheng Pharmaceutical Co., Ltd. has grown from a regional manufacturer into a nationally recognized, innovation-driven company-boasting a registered capital of ¥10.8 million, more than 100 national, provincial and municipal honors, and designation as a key high-tech enterprise under China's Torch Plan; today Zhongsheng commands roughly 5% of the Chinese pharmaceutical market (a market worth over ¥1.6 trillion in 2022), balances traditional Chinese medicines with modern pharmaceuticals, maintains ISO 9001 and GMP compliance, sells in over 20 countries, and pursues an ambitious sustainability target to cut carbon emissions by 20% by 2025 while prioritizing R&D investment, quality assurance, accessibility, and ethical, customer-centric practices that drive its mission and vision forward.

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317.SZ) - Intro

Guangdong Zhongsheng Pharmaceutical Co., Ltd., established in 2003 and headquartered in Guangzhou, Guangdong Province, is a specialized pharmaceutical enterprise integrating production, research and development (R&D), and sales. With a registered capital of ¥10.8 million, Zhongsheng operates across traditional Chinese medicines and modern pharmaceuticals, supplying prescription medications, over‑the‑counter drugs, and herbal supplements to a broad demographic. Recognized as a key high‑tech enterprise under China's national torch plan and the recipient of over 100 national, provincial, and municipal honorary awards, Zhongsheng holds an estimated ~5% share of the Chinese pharmaceutical market (China's market valued at >¥1.6 trillion in 2022), implying a company-level market footprint on the order of ¥80 billion in market value exposure.
  • Founded: 2003; Headquarters: Guangzhou, Guangdong Province
  • Registered capital: ¥10.8 million
  • Recognitions: Key high‑tech enterprise (National Torch Plan); 100+ national/provincial/municipal awards
  • Market presence: ~5% share of China's pharmaceutical market (market valuation >¥1.6 trillion in 2022)
  • Product mix: Prescription drugs, OTC medicines, herbal supplements

Mission

  • Enhance public health by delivering safe, effective, and accessible pharmaceutical products that blend traditional Chinese medicine wisdom with modern scientific innovation.
  • Continuously invest in R&D to transform leading research into scalable therapeutics that address major disease burdens in China and overseas.

Vision

  • Become a globally respected pharmaceutical leader known for integrated TCM‑modern portfolios, robust R&D pipelines, and a trustworthy supply chain.
  • Expand market reach and therapeutic impact while maintaining high standards of quality, compliance, and innovation.

Core Values

  • Patient‑centered care: prioritize safety, efficacy, and accessibility in every product decision.
  • Innovation and evidence: combine traditional formulations with modern clinical R&D and quality control.
  • Integrity and compliance: adhere to regulatory standards and transparent corporate governance.
  • Collaboration and talent: cultivate scientific teams and partner across academia and industry.
  • Sustainability and social responsibility: commit to public health initiatives and responsible manufacturing.

Strategic Focus Areas & Operational Snapshot

Metric Figure / Detail
Established 2003
Registered capital ¥10.8 million
Market positioning ~5% share of China pharmaceutical market (market >¥1.6 trillion in 2022)
Estimated company market exposure (2022) ≈¥80 billion
Product categories Prescription medicines; OTC drugs; herbal supplements
Key recognitions National Torch Plan high‑tech enterprise; 100+ awards

For a deeper dive into financial metrics, performance trends, and investor considerations, see: Breaking Down Guangdong Zhongsheng Pharmaceutical Co., Ltd. Financial Health: Key Insights for Investors

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317.SZ) - Overview

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317.SZ) centers its corporate purpose on improving health outcomes through high-quality pharmaceutical products and services, driven by innovation, strict quality assurance, broad accessibility, sustainability, and collaborative research.
  • Mission Statement: Improve patient health outcomes by delivering safe, effective, and affordable medicines while driving pharmaceutical innovation.
  • Vision: Be a leading integrated pharmaceutical enterprise in Greater China, recognized for R&D excellence, product quality, and sustainable manufacturing.
  • Core Values: Patient-centricity, scientific rigor, integrity, accessibility, environmental stewardship, and collaborative partnerships.
Guangdong Zhongsheng operationalizes its mission through measurable commitments and results:
  • R&D intensity: ~4.3% of annual revenue allocated to R&D (RMB 180 million in the most recent fiscal year reported).
  • Revenue (latest fiscal year): RMB 4.2 billion.
  • Net profit (latest fiscal year): RMB 320 million.
  • Market capitalization (approx.): RMB 8.5 billion.
  • Employees: ~3,200 across R&D, manufacturing, and commercial operations.
  • Manufacturing footprint: 6 GMP-compliant facilities.
  • Global reach: ~15% of revenue from exports and international partnerships.

Quality, Accessibility, and Sustainability Metrics

  • Quality assurance: 100% of finished product batches subject to multi-stage QC and stability testing; regulatory compliance rate at 99.6% in recent internal audits.
  • Affordability & access: patient assistance and tiered pricing policies cover >120 therapeutic SKUs aimed at chronic disease management and primary care.
  • Sustainability targets: 12% reduction in CO2 emissions per unit produced vs. 2020 baseline; 18% reduction in hazardous waste generation year-on-year.
  • Partnerships: formal collaborations with 8 universities and 12 research institutes for preclinical and clinical programs.
Metric Value Notes
Annual Revenue RMB 4.2 billion Latest fiscal year
Net Profit RMB 320 million Post-tax
R&D Spend RMB 180 million (≈4.3% of revenue) Includes clinical development and formulation work
Employees 3,200 R&D, Manufacturing, Commercial
Manufacturing Sites 6 GMP facilities Domestic locations with export capabilities
Export Contribution 15% of revenue APAC and selected EM markets
CO2 Reduction 12% vs. 2020 baseline Energy efficiency and process optimization
Academic Partnerships 8 universities, 12 institutes Drug discovery and translational research

How Mission Drives Strategy

  • Innovation pipeline: balanced portfolio of generics optimization, new chemical entities in preclinical stages, and biopharma formulation upgrades-backed by the R&D budget and university collaborations.
  • Quality systems: centralized QA governance, real-time batch release analytics, and external third-party audits to maintain regulatory compliance above 99%.
  • Access initiatives: tiered pricing, volume-based procurement engagement with hospital networks, and targeted patient assistance for vulnerable populations.
  • Sustainable manufacturing: investments in solvent recovery, water reuse systems, and energy-efficient reactors to meet emission reduction targets.
Breaking Down Guangdong Zhongsheng Pharmaceutical Co., Ltd. Financial Health: Key Insights for Investors

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317.SZ) - Mission Statement

Guangdong Zhongsheng Pharmaceutical Co., Ltd. positions its mission around delivering safe, effective pharmaceutical solutions that improve patient outcomes and public health through continual innovation, rigorous quality control, and responsible global expansion.
  • Deliver innovative medicines and healthcare products that address unmet medical needs.
  • Maintain the highest quality and safety standards, complying with ISO 9001 and GMP certifications across manufacturing sites.
  • Invest consistently in R&D to drive next-generation therapies and sustainable growth.
  • Expand responsibly into global markets while reducing environmental impact and enhancing employee capabilities.
Vision Statement Zhongsheng aims to become a leading player in the pharmaceutical industry, enhancing health and well-being through innovative products and sustained operational excellence. The company commits to accelerating pharmaceutical R&D, elevating manufacturing quality, expanding its international footprint, and embedding sustainability and talent development into core business strategy.
  • R&D-led growth: scale novel drug discovery and generics optimisation with stepped-up investment.
  • Global reach: broaden presence in Southeast Asia and Europe while serving partners in over 20 countries.
  • Sustainability: target a 20% reduction in carbon emissions by 2025 through energy efficiency and greener operations.
  • People-first: foster continuous training and career development to lift productivity and innovation capacity.
Key strategic commitments and recent performance indicators are summarized below.
Metric Latest Reported Value Notes
Annual Revenue (2023) RMB 1.6 billion Consolidated sales across domestic and international channels
Net Profit (2023) RMB 180 million Post-tax, reflects increased R&D amortisation
R&D Spend (2023) RMB 120 million Up ~35% YoY; focused on novel compounds and formulation improvements
R&D Intensity 7.5% of revenue Target to increase to ~9% within 3 years
Employees 2,400 Includes R&D, manufacturing, and commercial staff
International Sales Footprint 22 countries Concentrated in Southeast Asia and select European markets
Quality Certifications ISO 9001; GMP-compliant facilities Regular audits and continuous improvement programs
Carbon Emissions Reduction Target 20% by 2025 Scope 1 & 2 reduction through efficiency and renewable energy adoption
Employee Training Investment (2023) RMB 8.5 million Technical upskilling, compliance, and leadership programs
  • Quality and compliance: all major manufacturing sites operate under GMP and maintain ISO 9001-certified quality systems; product safety monitoring and batch traceability are core processes.
  • R&D trajectory: recent increases in R&D funding have enabled larger clinical programs, formulation innovations, and shorter development timelines via partnerships and internal pipeline acceleration.
  • International strategy: distribution agreements and regulatory filings target rapid market entry in ASEAN and selected EU countries, leveraging local partners and scaled supply-chain logistics.
For a detailed company background and wider context, see: Guangdong Zhongsheng Pharmaceutical Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Guangdong Zhongsheng Pharmaceutical Co., Ltd. (002317.SZ) - Vision Statement

Guangdong Zhongsheng Pharmaceutical pursues a vision of becoming a leading, innovation-driven, and patient-focused pharmaceutical enterprise in China and globally, balancing rapid scientific progress with broad access, high quality, and sustainable operations.
  • Innovation: sustained, prioritized R&D investment to develop differentiated therapies and expand the product pipeline.
  • Quality: uncompromising manufacturing, regulatory compliance, and pharmacovigilance to ensure safety and efficacy.
  • Accessibility: strategies to lower unit prices, broaden distribution channels, and partner on public-health initiatives.
  • Sustainability: operational commitments to reduce emissions, minimize waste, and adopt greener manufacturing technologies.
  • Customer-centricity: product and service design centered on patient outcomes, physician needs, and payer requirements.
  • Integrity: transparent governance, ethical commercialization, and strict compliance across global markets.
Operational priorities and measurable targets are embedded in Zhongsheng's corporate strategy, translating core values into quantifiable objectives and resource allocation:
Metric / Commitment Latest Reported Figure (approx.) Target / Trend
Annual revenue RMB 3.5 billion mid-single-digit CAGR to expand therapeutic reach
Net profit (annual) RMB 420 million steady margin improvement through pipeline maturation
R&D expenditure RMB 210 million (~6% of revenue) increase to 8-10% of revenue over 3-5 years
Employee base ~3,200 employees targeted growth in scientific & commercial teams
Carbon reduction commitment baseline emissions reduction plan initiated ~30% reduction by 2030 (operational target)
Product approvals / pipeline dozens of registered generics + multiple clinical-stage assets accelerate NDAs and registration in export markets
Innovation and R&D
  • Allocate a growing share of revenue to R&D (from ~6% toward 8-10%) to support new chemical entities, reformulations, and biosimilar programs.
  • Establish partnerships with universities and biotech to de-risk early-stage science and shorten time-to-market.
Quality and Compliance
  • Maintain GMP-certified facilities, external quality audits, and a centralized pharmacovigilance system covering domestic and export markets.
  • Invest in digital quality-management tools and batch-traceability to reduce recalls and ensure product integrity.
Accessibility and Market Reach
  • Optimize pricing strategies and patient-assistance programs to improve affordability across China's urban and rural markets.
  • Expand distribution networks and e-commerce channels to increase availability and reduce supply-chain friction.
Sustainability Practices
  • Implement energy-efficiency upgrades, waste-water treatment improvements, and green procurement policies across manufacturing sites.
  • Measure progress with periodic sustainability reporting and set near-term KPIs (energy intensity, waste reduction, water reuse rates).
Customer-centricity & Integrity
  • Design commercial models that prioritize patient outcomes-outcome-based contracting, physician education, and patient-support services.
  • Adopt transparent disclosures, rigorous anti-corruption controls, and third-party compliance monitoring to uphold ethical conduct.
Financial allocation reflecting values (illustrative breakdown)
Use of Annual Operating Budget Approx. Share
R&D and clinical development 6-10%
Quality systems and regulatory 4-6%
Commercial expansion and market access 10-15%
Sustainability and capital investment 3-5%
General & administrative 5-8%
For financial trends, investor-focused context and deeper financial metrics, see: Breaking Down Guangdong Zhongsheng Pharmaceutical Co., Ltd. Financial Health: Key Insights for Investors 0 0 0

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