- Profit Before Tax (PBT) rose 15.25 per cent, for the current year to date (YTD) ended December 31 2018, to RM59.66 million from RM51.77 million in the corresponding period of 2017
- CCM Duopharma’s Revenue was up 6.57 per cent for the same period to RM498.72 million from RM467.99 million in the corresponding period last year
- The Group’s revenue for the current quarter ended December 31, 2018 dropped 8.11 per cent due to lower demand from the public health sector as compared to the preceding financial quarter. However, PBT improved 11.49 per cent due to changes in accounting policies arising from the adoption of the Malaysian Financial Reporting Standards (MFRS).
Performance for YTD Period Ended December 31, 2018
Kuala Lumpur, February 19, 2019 – CCM Duopharma Biotech Berhad (CCM Duopharma) has recorded an improved Profit before Tax (PBT) of RM59.67 million for the financial year ended December 31, 2018 (FY2018), an increase of 15.25 per cent as compared to RM51.77 million in the corresponding period in 2017.
The Group’s Revenue rose by 6.57 per cent to RM498.72 million from RM467.99 million in the corresponding period last year.
CCM Duopharma’s Group Managing Director, Leonard Ariff Abdul Shatar said that the improved Company’s revenue and profits for FY2018, as compared to the corresponding period last year, was mainly due to the higher demand from both the private and public health sectors, as well as due to the change of accounting policies arising from the adoption of the Malaysian Financial Reporting Standards (MFRS).
“Based on the Ministry of Finance’s Economic Outlook 2019, the global economic growth is projected to decline to 3.5% in 2019 as a result of the challenging financial conditions, escalating trade threats and risks of a shift towards protectionism, as well as geopolitical tension.
“Despite these challenges, internationally and domestically, Malaysia’s economy is projected to grow 4.9 per cent in 2019.
“With an increase in allocation for health services to RM29 billion in the recent budget 2019, including RM10.8 billion to restore clinics and hospitals as well as purchase of medicine and medical equipment, all these will present opportunities for the Company,” he added.
Comparison with Preceding Quarter
The Group’s revenue for the current quarter ended December 31, 2018 dropped 8.11 per cent due to lower demand from the public health sector as compared to the preceding financial quarter. However, PBT improved 11.49 per cent due to changes in accounting policies arising from the adoption of the Malaysian Financial Reporting Standards (MFRS).
“The Group will also continue its foray into the specialty products as one of its strategies moving forward to create a pool of niche products. I am delighted to share that we have recently received registration approval for Erysaa, an Erythropoeitin product,” said Leonard Ariff.
The Company had recently concluded a Share Subscription Agreement (SSA) with SCM Lifescience Co Ltd (SCM Lifescience), Sun U. Song and Byung Geon Rhee in October, 2018 for the subscription of 164,016 common shares and 109,344 redeemable convertible preference shares representing approximately 5.8 per cent equity stake in SCM Lifescience for a total purchase consideration of approximately KRW5.5 billion (RM20.24 million).
On the same date, and in conjunction with the SSA, the Company also entered into an Exclusive Marketing and Commercialisation Agreement (EMCA), whereby SCM Lifescience granted the Company, subject to the terms and conditions of the EMCA, rights to market and commercialise stem cell therapy products developed by SCM Lifescience in selected territories in ASEAN.
In April 2018, the Company had also concluded a conditional share sale agreement with Chemical Company of Malaysia Berhad to acquire 806,450 PanGen shares, representing approximately 8.38 per cent equity interest in PanGen for a total purchase consideration of RM59.16 million (KRW16.35 billion). The acquisition was completed on June 28, 2018.
“With these recent investments in SCM Lifescience and PanGen, CCM Duopharma is on track to become one of the leading pharmaceutical companies in ASEAN, as it gives the Company new opportunities to market specialty and biosimilar products in the ASEAN region,” he added.
CCM Duopharma became an independent public listed company On December 28, 2017 upon completion of a demerger exercise from Chemical Company of Malaysia Berhad (CCMB). Its Board of Directors has made an announcement on Bursa Securities on December 10, 2018 to seek the approval of its shareholders for the proposed change of Company’s name from “CCM Duopharma Biotech Berhad” to “Duopharma Biotech Berhad during the Extraordinary General Meeting (EGM) which will be held on 20 February 2019.
CCM Duopharma concluded in June 2018 a bonus issue of up to 371,945,333 new ordinary shares in the Company on the basis of four (4) bonus shares for every three (3) existing shares held by shareholders of the Company, reflecting the Company’s stronger fundamentals after the demerger exercise was completed.
For the current financial year ended 31 December 2018, the Board of Directors has recommended a final dividend of four (04) sen per share, subjected to shareholders’ approval at the forthcoming Annual General Meeting (“AGM”) of the Company.
Barring any unforeseen circumstances, the Group is expected to achieve satisfactory results in FY 2019.