On April 23, 2021, Cuu Long Pharmaceutical Joint Stock Company (DCL) successfully held the Annual General Meeting of Shareholders (AGM) 2021 in Hanoi.
At the meeting, the attending shareholders approved the Report on production and business results of 2020 and overall plan of 2021, audited financial statements for 2020, Report of the Board of Directors on the appointment The General Director and a number of other related submissions fall under the authority of the General Meeting of Shareholders.
2020 – Year of restructuring
In 2020, the ETC segment has price competition, leading to a decrease in selling price compared to 2019 average; OTC segment, affected by the change in management policy of the Ministry of Health for the group of antibiotics and specially managed drugs, making it more difficult to sell this group of drugs to pharmacies; Capsule and Vikimco segments were affected by the Covid-19 pandemic, but DCL still had revenue of over VND 671 billion, gross profit of nearly VND 200 billion, gross profit of VND 187.637 billion, profit before tax of VND 85,944 billion dong.
Especially in the fourth quarter of 2020, DCL’s profit reached a record of about VND 40 billion.In order to achieve this record increase in business results, besides investing in machinery and equipment to improve product quality, the restructuring of the sales system also plays a significant role. At the beginning of the fourth quarter of 2020, DCL changed its sales model in the direction that branches will be more empowered, increase coverage, enhancing accountability and be more proactive in their work. Products will be circulated smoothly and quickly, ensuring timely response to market demand. At the same time, in sync with the Innovation Project throughout the company, the sales team as well as branches are conducting screening to select the most positive factors. Thereby, improving the competitiveness of DCL.Also in 2020, DCL changed its logo to match its upcoming strategies. In which the logotype “For Health – For Life” stands out – affirming that DCL will continue to connect and develop constantly to bring values contributing to public health in the near future. DCL currently owns 4 factories: including 2 pharmaceutical factories meeting GMP – WHO standards; 01 medical instrument factory; 1 factory produces Vicancap empty hard capsules. Vicancap is a pioneer in Vietnam manufacturing and supplying capsule products (empty hard capsules) of all kinds. The factories are now running at full capacity, with advanced technology imported from Canada.
2021 – The year of profit upswing
According to statistics from the Drug Administration of Vietnam (Ministry of Health), the pharmaceutical industry will reach $7.7 billion in 2021. According to the results of Vietnam Report, the pharmaceutical industry has the highest growth potential in the next two years as recently, everyone has been awaring of the danger of the epidemic, people are gradually paying more attention to health protection, leading to the medical pharmaceutical industry being assessed by businesses as having high growth prospects in the near future.
As for the intrinsic factor, in 2021 DCL completes and puts into operation the Capsule 4 factory with an output of 2.4 billion capsules/year, bringing the total volume of capsules produced to nearly 8 billion capsules/year. In March 2021, DCL started construction of Benovas Medical Equipment Manufacturing Factory in Vinh Long province to ensure a huge demand for medical consumables, especially needles and syringes. Factory construction project has a total investment of about 15 million USD, divided into 2 phases, phase 1 has a designed capacity of 35 million products/month; Phase 2 has a capacity of 20 million products/month. Not only that, now DCL has obtained a visa for 2 types of cancer drugs, which are in high demand in Vietnam in particular and the world in general. This promises to bring in millions of dollars in sales for 2021 and beyond. Besides, the enterprise continues to promote and perfect the sales model to increase the coverage of Cuu Long Pharmaceutical products to all localities in the country and to export a number of products. For that reason, 2021, DCL sets a revenue target of VND 805 billion, pre-tax profit of over VND 110 billion, an increase of nearly 30% compared to 2020.
