Accumulation of the first 6 months of 2020, Cuu Long Pharmaceutical Joint Stock Company (DCL) made a profit of 27 billion VND; meanwhile the same period has a loss of more than 5 billion VND. Having this encouraging result, DCL has aggressively restructured its business to suit the development direction in the near future.
The remarkable point in the restructuring process of DCL is dissolving inefficient subsidiaries. Specifically, DCL has just completed the dissolution procedure of Mekong Pharmaceutical Limited Company. The company is headquartered in Vinh Long city, Vinh Long Province. Mekong Pharmaceutical Limited Company was established in 2010, before DCL became a member of F.I.T.
At the time of establishment, the previous steering committee formed to allocate products in Vinh Long. However, the company currently has a distribution network unit in Vinh Long, which is the Pharmaceutical Center (Cuu Long Pharmaceutical Company Branch). Therefore, DCL decided to dissolve this subsidiary.
Previously, in 2019, DCL also divested from Euvipharm Pharmaceutical Joint Stock Company, due to ineffective business operation. Euvipharm is a factory that produces 1.2 billion product units / shift / year for most common dosage forms including powdered antibiotics, effervescent tablets, and products requiring specific manufaturing condition.
In August 2020, DCL changed its logo to suit the future strategies. In which, there is the logotype “For Health – For Life” – affirming that DCL will continue to connect and grow constantly to bring about values to the public health.
Phase 4 of Capsule factory Expansion project with a total capacity of up to 7.9 billion capsules / year with a total estimated investment of 130 billion VND. This is a factory with outstanding features and capacity with automatic capsule sorting equipment to increase the automated rate of follicle defect classification up to 85%.
New construction of a medical material factory based on Benovas Medical Equipment Joint Stock Company with a capacity of 480 million products/year.
In order to improve business efficiency, in 2020 and the following years, DCL maintain to prioritize expanding and advancing sales system, training and strengthening personnel, focusing on establishing strategic business groups which own large numbers and high margins or distinct product lines with few competitors.
As of June 30th, 2020, total assets increased by 2.9%, up to VND 1,761.4 billion. In which, money and short-term financial investments are 904.1 billion VND, accounting for 51.3% of total assets; fixed assets are 306.9 billion VND, accounting for 17.4% of total assets; receivables are 248 billion VND, accounting for 14.1% of total assets; Inventory is VND 247.7 billion, accounting for 14.1% of total assets.
In 2020, Cuu Long Pharmaceutical sets a business goal of staying to grow rapidly with net revenue of VND 844 billion, an increase of 12% compared to 2019; profit before tax was 104.5 billion, gross profit 279 billion.
