China is the largest country in the world in terms of population. Its population of 1.3 billion people provides a huge market for the development of China's medical service industry. The existing medical resources are far from being able to satisfy people's demand, which results in the problems to be difficult and expensive to see a doctor. However, China's non-public medical service industry is underdeveloped seriously. So China has put forward the ideas to develop medical and health service system by actively introducing non-public funds, which provides a great opportunity for the development of China's non-public medical service industry.
From Jan. to Nov. 2007, the total industrial output value of China's medical instrument and apparatus manufacturing industry hit CNY51.446 billion, up 21.42% against the same period of the previous year, while the accumulated sales revenue and accumulated profit reached CNY49.32 billion and CNY5.26 billion, up 22.17% and 42.51% year on year respectively. In the next few years, China will surpass Japan and become the second largest medical instrument market in the world. The total output value of China's medical instruments and apparatus industry will reach CNY100 billion in 2010, taking up 5% share in the world's medical instruments and apparatus market.
This report makes an in-depth analysis on all investment projects financed by 18 listed companies, covering medical apparatus producers, medical service providers and pharmaceutical producers with investment in medical instruments, from 2000 to 2008 and also makes summary of investment trends of China's medical industry as well as investment features and investment trends of the listed companies.
The following chart shows that Shanghai has the biggest investment in medical projects by taking up 22.72% share of the national total, followed by Hubei province, Jiangxi province, Beijing and Zhejiang province.
Investment Distribution of China Listed Medical Companies (by Region), 2000-1H2008
Among the 18 listed companies, Shanghai Pharmaceutical Co. Ltd. ranks first in terms of investment amount from the year of 2000 to the first half of 2008 with a total amount of CNY2.55 billion, followed by Wuhan Humanwell Hi-tech Industry Co., Ltd. and Chengzhi Shareholding Co., Ltd.
Top 10 Companies in Terms of Investment, 2000-1H2008
This report makes an in-depth analysis on all investment projects financed by the 18 listed companies. For example, Shanghai Pharmaceutical Co., Ltd. (600849) is referred in this report.
Investment Distribution of Shanghai Pharmaceutical Co. (by Sector), 2000-2008
Investment of Shanghai Pharmaceutical Co., 2001-2007Year Investment Amount (CNY million)
Investment Features of Shanghai Pharmaceutical Co., Ltd
- Main Business: production, distribution and retail of traditional Chinese medicine and western medicine; diversification direction: pharmaceutical logistics industry.
- The company has kept a high investment amount for many years. Its investment hit CNY625 million in 2004, which is the highest record of this company. In the past four years, its investment was mainly financed by non fund raising. Its investment is concentrated in East China.
- The company is one of the three giants in China's pharmaceutical distribution industry. Medicine distribution is its highlight, covering more than 3,900 hospitals across China with sales of more than CNY9 billion. With the help of its strategy of international development, the company together with SUZUKEN Co., Ltd., a world leader in pharmaceutical distribution, has set up a joint venture engaged in pharmaceutical distribution. It has also signed OEM agreement with American Perrigo Company (NASDAQ: PRGO) regarding seven varieties of products and the commitment of 2.1 billion pieces a year, which is hopeful to reach three billion pieces annually. As for pharmaceutical logistics, the company has built a logistics center with an annual throughput of CNY15 billion.
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