Sino Biopharmaceutical Limited (1177.HK) Bundle
Founded in 2000 and listed on the Hong Kong Stock Exchange as 1177.HK, Sino Biopharmaceutical Limited has risen from a domestic player to a globally recognized pharmaceutical conglomerate-joining the MSCI Global Standard in 2013, the Hang Seng Index in 2018 and multiple Hang Seng sector indices by 2020-backed by a workforce of about 25,000, leadership under Chairwoman Theresa Y.Y. Tse and CEO Eric S.Y. Tse, and recognition in the Top 50 Global Pharmaceutical Enterprises for seven straight years; in 2024 the company reported revenue of approximately RMB28.87 billion (up 10.2% year-on-year), with oncology sales of roughly RMB10.73 billion (about 37.2% of total), a diversified business model spanning modernized Chinese and chemical medicines plus investments, and a development pipeline of over 70 innovative products aiming to launch more than 10 within three years and over 30 by 2030
Sino Biopharmaceutical Limited (1177.HK): Intro
Sino Biopharmaceutical Limited (1177.HK) is a vertically integrated healthcare group headquartered in Hong Kong with extensive operations in pharmaceuticals, biological products, Chinese medicines, and healthcare services. Founded in 2000 and listed on the Hong Kong Stock Exchange, the company has grown into a major China-focused pharmaceutical conglomerate with diversified revenue streams across prescription drugs, OTC, biologics, vaccine-linked products, and hospital/healthcare services. For a detailed company overview and historical walkthrough see: Sino Biopharmaceutical Limited: History, Ownership, Mission, How It Works & Makes Money History- 2000 - Sino Biopharmaceutical Limited established and subsequently listed on HKEX under stock code 1177.HK.
- 2013 - Included in MSCI Global Standard Index (China), marking broader recognition by international investors.
- 2018 - Became a constituent of the Hang Seng Index, reflecting market capitalisation and liquidity growth.
- 2020 - Added to both the Hang Seng Connect Biotech 50 Index and the Hang Seng China (Hong Kong Listed) 25 Index, underscoring its biotech and China/HK market prominence.
- 2010s-2020s - Recognised by Pharmaceutical Manager among the 'Top 50 Global Pharmaceutical Enterprises' for seven consecutive years; Forbes (Asia) rated it among the 'Top 50 Best Companies in Asia Pacific' for three consecutive years.
- Major shareholder profile: large strategic shareholders include state-related investment vehicles, long-term institutional investors and promoter groups (holding significant blocks through parent and associated companies).
- Corporate structure: operates multiple wholly-owned and equity-linked subsidiaries across R&D, manufacturing, distribution, and hospital services in Mainland China and Hong Kong.
- Governance: standard Hong Kong-listed board structure with independent non-executive directors and audit/nomination/remuneration committees to meet HKEX governance standards.
- R&D and product pipeline: invests in small molecule drugs, biologics, oncology, specialty therapeutics and vaccines, plus traditional Chinese medicine (TCM) products.
- Manufacturing & quality: operates GMP-compliant facilities producing finished dosage forms, sterile products and biologics; supply chain covers national distribution networks in China.
- Commercialisation: multi-channel sales force targeting hospitals, retail pharmacies, distributors and government procurement platforms; also expands direct-to-consumer channels for OTC and health-products.
- Healthcare services: investments in hospital operations, diagnostic services and elder-care/health management platforms to capture downstream healthcare demand.
- Prescription pharmaceuticals - largest contributor: chronic disease, oncology and specialty hospital products sold via public and private hospitals.
- Biologicals & vaccines - higher-margin segment with growth driven by immunology/oncology biologics and strategic partnerships/licensing.
- Traditional Chinese medicine & OTC products - steady cash flow and brand-driven margins in retail channels.
- Healthcare services & hospitals - recurring service revenue, diagnostics and inpatient/outpatient operations.
- Licensing, technology transfer & partnerships - milestone and royalty income from out-licensing or co-development deals.
| Metric (FY) | Value |
|---|---|
| Revenue (most recent fiscal year) | HK$ ~48.0 billion |
| Gross profit margin | ~45% (indicative of combined pharma & biologics mix) |
| Operating profit (most recent fiscal year) | HK$ ~9.5 billion |
| Net profit (most recent fiscal year) | HK$ ~6.2 billion |
| Total assets | HK$ ~120.0 billion |
| Total equity | HK$ ~60.0 billion |
| R&D expenditure (annual) | HK$ ~3.2 billion (~6-7% of revenue) |
| Market capitalisation (approx.) | HK$ ~140 billion |
| Employees | ~40,000 (group-wide, including hospitals and production) |
- Expanding biologics pipeline and in-licensing to capture higher-margin therapeutic segments (oncology, immunology).
- Enhancing manufacturing capacity for sterile/biologic products and scaling up GMP-compliant facilities.
- Vertical integration into healthcare services (hospitals, diagnostics) to secure downstream demand and capture patient-level margins.
- Geographic expansion across Mainland China and selective international partnerships to diversify revenue sources.
- Digitalisation of sales/marketing, real-world evidence and health management platforms to improve commercial efficiency.
Sino Biopharmaceutical Limited (1177.HK): History
Sino Biopharmaceutical Limited (1177.HK) traces its roots to integrated pharmaceutical operations spanning R&D, manufacturing and commercialization in China and greater Asia. Over decades the group expanded through internal product development, strategic acquisitions and scaling of manufacturing capacity to become one of the region's leading pharmaceutical players.- Listed on the Hong Kong Stock Exchange: stock code 1177.HK.
- Major shareholder: Chia Tai Tianqing Pharmaceutical Group Co. Ltd., a subsidiary of Charoen Pokphand Group (CP Group).
- Workforce: approximately 25,000 employees as of 2024.
- Executive leadership: Ms. Theresa Y.Y. Tse (Chairwoman) and Mr. Eric S.Y. Tse (CEO).
- Shareholder base: widely held by institutional and individual investors, and included in major indices such as the Hang Seng Index and the MSCI Global Standard Index.
| Attribute | Detail |
|---|---|
| HKEx Ticker | 1177.HK |
| Largest Shareholder | Chia Tai Tianqing Pharmaceutical Group Co. Ltd. (CP Group subsidiary) |
| Employees (2024) | ~25,000 |
| Board Leadership | Chairwoman: Theresa Y.Y. Tse; CEO: Eric S.Y. Tse |
| Index Membership | Hang Seng Index; MSCI Global Standard Index |
- Pharmaceutical product sales - branded and generic medicines across therapeutic areas (oncology, cardiovascular, anti-infectives, metabolic, respiratory).
- Proprietary drug development - internal R&D and registration-driven value capture through new drug approvals and pricing in Chinese and regional markets.
- Contract manufacturing and supply - third-party manufacturing capacity for partners, leveraging regional production scale.
- Vaccine and biologics manufacturing - commercial sales and institutional supply agreements.
- Distribution and commercialization - hospital tender wins, provincial procurement channels, and retail pharmacy networks.
- Licensing, partnerships and M&A - in-licensing of products, out-licensing, JV arrangements and acquisitions to expand portfolio and market access.
Sino Biopharmaceutical Limited (1177.HK): Ownership Structure
Sino Biopharmaceutical Limited (1177.HK) positions itself as a research-driven integrated pharmaceutical company with a clear mission to deliver innovative therapies to patients worldwide. The company concentrates on four core therapeutic areas - oncology, liver diseases, respiratory diseases and surgery/analgesia - and pursues a dual-pronged globalization strategy: introducing global pharmaceutical innovations into China while expanding its own footprint in overseas markets.- Mission: Deliver innovative therapies that address unmet medical needs and improve patient outcomes globally.
- Core therapeutic focus: Oncology, liver diseases, respiratory diseases, surgery/analgesia.
- R&D emphasis: Continuous scale-up of R&D investment to improve quality and efficiency of drug development.
- Globalization approach: Import global innovation into China; pursue selective international expansion and partnerships.
- Recognition: Noted in industry reports and by peers for incremental innovation and portfolio expansion in specialty therapeutics.
- Product sales: Branded pharmaceuticals (hospital channel and retail), biologics and specialty therapies across its four therapeutic pillars.
- Out-licensing and partnerships: Collaborations and licensing deals to access markets and co-develop assets, both domestically and internationally.
- Mergers & acquisitions: Strategic acquisitions and in-licensing to broaden pipeline and market access.
- Manufacturing & distribution: Integrated supply chain and commercial network that monetize registered products across China and select export markets.
| Metric | Value (approx.) |
|---|---|
| Annual revenue | RMB ~28-32 billion |
| Net profit (attributable) | RMB ~3-4 billion |
| R&D spending | RMB ~2-4 billion (growing mid- to high-teens YoY recently) |
| Market capitalization | HKD ~40-70 billion |
| Primary therapeutic sales mix | Oncology & liver diseases ≈ majority share of specialty revenue |
- Listed on the Hong Kong Stock Exchange (1177.HK); free float combined with strategic/controlling shareholders and institutional holders.
- Corporate governance: Board-led strategy with R&D committees guiding pipeline prioritization and global partnership approvals.
- Investor focus: Management emphasizes sustainable R&D investment and margin expansion through higher-value specialty products and efficiencies in manufacturing/distribution.
- Investment trajectory: Recurrent increases in R&D budget to accelerate clinical development and registration timelines.
- Pipeline orientation: Early- to late-stage assets concentrated in oncology and liver disease, with development programs for respiratory and perioperative analgesia.
- Global licensing: Selective out-licensing and co-development to access regulatory expertise and commercialization channels abroad.
Sino Biopharmaceutical Limited (1177.HK): Mission and Values
Sino Biopharmaceutical Limited (1177.HK) is a Hong Kong-listed integrated pharmaceutical group with a multi-decade footprint in China's healthcare market. Its business model blends traditional Chinese medicine (TCM) modernization, western chemical pharmaceuticals, strategic investments and supporting operations to monetize a broad product portfolio and distribution network. How it works - business segments and capabilities- Modernized Chinese Medicine and Chemical Medicine: core manufacturing, sale and distribution of proprietary modernized Chinese medicine formulations and western pharmaceuticals across hospitals, pharmacies and retail chains in China.
- Investment: portfolio of long-term equity stakes, fixed-income and short-term securities used to generate recurring investment income and capital gains that supplement operating profit.
- Other: logistics, contract manufacturing, licensing, and ancillary services that support market access and margin optimization.
- Manufacturing footprint: multiple GMP-compliant production facilities covering dosage forms from granules and tablets to injectables, enabling scale, vertical integration and quality control.
- Distribution and access: direct and partner-based channels into tier-1 to tier-4 city hospitals, retail pharmacies and online channels, supporting national patient access.
- R&D focus: concentrated on innovative therapies in core therapeutic areas (cardiovascular, metabolic, respiratory and oncology-supportive care), with drug development pipelines that include reformulations, combination products and select novel clinical-stage candidates.
- Workforce: a large specialist workforce across R&D, manufacturing, regulatory and commercial functions to support product lifecycle and market expansion.
| Metric (FY / Recent) | Value (approx.) |
|---|---|
| Annual Revenue | ≈ RMB 22 billion |
| Net Profit | ≈ RMB 2.7 billion |
| R&D Spend | ≈ RMB 1.1-1.3 billion (~5% of revenue) |
| Total Employees | ≈ 20,000 |
| Manufacturing Sites | > 15 GMP facilities |
- Modernized Chinese Medicine & Chemical Medicine: largest share of revenue and operating profit, driven by flagship TCM brands and a portfolio of chemical medicines sold to hospitals and retail; typically accounts for the majority (often >70%) of operating revenue.
- Investment: contributes non-operating income (dividends, interest, realized gains) and can be a material source of net profit volatility.
- Other: supports margins through contract manufacturing, logistics and licensing arrangements.
- Product sales - gross margin varies by product: proprietary TCM/formulations higher-margin, generics/lower-price western medicines thinner margins.
- Investment returns - recognized as finance income or gains; used to smooth earnings and fund expansion/R&D.
- Cost base - raw materials for TCM herbs and chemical APIs, production overhead, SG&A for salesforce and distribution, and R&D expense for pipeline advancement.
- R&D priorities: modernization of classical TCM formulas, development of improved delivery forms, combination products, and targeted clinical development in priority therapeutic areas.
- Clinical/commercial pathway: in-house discovery/selection → preclinical validation → clinical trials (where applicable) → NMPA regulatory pathway → hospital and retail market rollout.
- Monetization: direct sales, licensing deals, co-promotion agreements and out-licensing of late-stage assets for markets beyond China.
| Indicator | Why it matters | Target/Recent |
|---|---|---|
| Revenue growth | Shows demand for marketed products and success of launches | Mid-single to high-single digit YoY typical |
| Gross margin | Reflects product mix and manufacturing efficiency | Variable by year; proprietary product mix improves margin |
| R&D as % of revenue | Signals investment in innovation and pipeline health | ~4-6% |
| Investment income volatility | Can swing net profit-watch unrealized vs realized gains | Occasional material swings between years |
- Expand modernized TCM portfolio and deepen hospital penetration for high-value products.
- Optimize manufacturing footprint and supply chain to reduce costs and improve margins.
- Selective M&A and strategic investments to acquire complementary technologies, geographic reach or pipeline assets.
- Increase R&D intensity for differentiated products that command premium pricing and extended exclusivity.
Sino Biopharmaceutical Limited (1177.HK): How It Works
Sino Biopharmaceutical Limited (1177.HK) operates as an integrated healthcare group focused on research, development, manufacturing and commercialization of pharmaceutical products across multiple therapeutic areas. Its business model combines internal R&D, strategic acquisitions, manufacturing scale and investment income to generate stable and diversified cash flows. Business model components:- R&D and product development: discovery and clinical development of innovative drugs, plus lifecycle management of existing products.
- Manufacturing and supply: in-house and partnered production for both patented and generic medicines to serve hospital and retail channels.
- Commercialization and distribution: sales force, hospital tender participation, and distribution networks for inpatient and outpatient markets.
- Strategic M&A and licensing: acquisitions, equity investments and licensing deals to expand therapeutic coverage and pipeline.
- Investment activities: dividend income, interest and fair value gains from financial assets and equity stakes.
- Primary revenue: sale of pharmaceutical products across oncology, surgical/analgesic, cardiovascular, anti-infectives and other therapeutic categories.
- Supplementary revenue: investment returns, including dividend income and fair value gains on equity investments and other financial instruments.
- Channel mix: hospital tenders and formulary placements drive bulk institutional sales; retail/pharmacy channels and specialty clinics capture outpatient demand.
- Portfolio strategy: a mix of innovative (higher margin, growth) and generic/specialty products (stable volume) to balance top-line growth and profitability.
| Metric | 2024 | Notes |
|---|---|---|
| Total revenue (RMB) | 28,870,000,000 | Approx. RMB28.87 billion; +10.2% YoY |
| Oncology sales (RMB) | 10,730,000,000 | Approx. RMB10.73 billion; ≈37.2% of total revenue |
| Surgical / Analgesic sales (RMB) | 4,460,000,000 | Approx. RMB4.46 billion; ≈15.4% of total revenue |
| Other therapeutic sales (RMB) | 13,680,000,000 | Includes cardiovascular, anti-infectives, endocrine, CNS, etc. |
| Investment income & fair value gains (RMB) | - | Material contributor (dividends, fair value gains); company reports mixed impact year-to-year |
- Oncology: largest single segment by revenue; driven by marketed targeted therapies, combination therapies and hospital adoption.
- Surgical/Analgesic: steady demand from perioperative care, chronic pain management and trauma units.
- Other segments: cardiovascular and anti-infective portfolios supply large-volume, lower-margin products that stabilize overall revenue.
- Investment returns: act as an earnings buffer and can materially affect net profit via realized/unrealized gains.
- New product launches and label expansions to increase market share in oncology and specialty areas.
- Scale manufacturing to reduce unit cost and improve gross margins.
- Hospital tender strategies and key account management to secure long-term volume contracts.
- Selective equity investments and partnerships to capture upside from biotech innovators and listed/unlisted peers.
Sino Biopharmaceutical Limited (1177.HK): How It Makes Money
Sino Biopharmaceutical is a leading innovation-driven pharmaceutical conglomerate in China with a diversified revenue base that combines proprietary product sales, contract manufacturing, distribution, licensing and collaboration income, and government/insurance reimbursements. The company leverages a large clinical and commercial infrastructure to monetize both originator and in-licensed medicines while reinvesting heavily in R&D to fuel future growth.- Market recognition: ranked among the 'Top 50 Global Pharmaceutical Enterprises' for seven consecutive years (reflecting global competitiveness and scale).
- Index inclusion: constituent of major indices including the Hang Seng Index and MSCI Global Standard Index, supporting liquidity and institutional ownership.
- Pipeline scale (2024): over 70 innovative products under development.
- Launch targets: >10 innovative product launches planned in the next three years and >30 by 2030.
- Globalization strategy: dual-pronged-introduce global innovations into China and expand Chinese-originated products overseas.
- Domestic commercial sales - chronic and specialty care brands sold via hospital and retail channels.
- Innovative oncology, cardiovascular, metabolic and respiratory franchises driving higher ASPs (average selling prices).
- Out-licensing & co-development deals - milestone and royalty receipts from partners.
- Contract manufacturing & toll production for third parties.
- Distribution & trading of API/intermediates and generics in domestic and selected international markets.
- Government procurement and NRDL (National Reimbursement Drug List) listings that expand volume and market access.
| Metric (approx.) | Value / Share of Revenue |
|---|---|
| Commercial product sales | ~70-80% |
| Licensing, milestones & royalties | ~5-10% |
| Contract manufacturing & other | ~10-15% |
| R&D intensity (R&D spend / revenue) | ~10-15% (reflecting heavy clinical investment) |
| Gross margin (indicative) | ~55-65% |
| Target innovative launches | >10 in next 3 years; >30 by 2030 |
| Pipeline size (2024) | >70 innovative products |
- Accelerated internal development plus selective in-licensing to fill near-term commercial gaps.
- NRDL reimbursement negotiations to expand volume-based sales and lower patient co-pay.
- Geographic expansion into APAC, MENA and selected Western markets via partnerships and direct launches.
- Manufacturing capacity expansion to capture toll-manufacturing contracts and ensure supply for scale-up of novel biologics.
Sino Biopharmaceutical Limited (1177.HK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.