China Company Report -- Hualan Biological Engineering Inc

China Company Report -- Hualan Biological Engineering Inc

Hualan Biological Engineering Inc is a leading Chinese blood products manufacturer, which possesses the widest varieties and complete in specifications of the whole blood products range and its capability of plasma processing is leading in domestic and even in Asia.

In 2007, Hualan made 351 million yuan of sales income, down 1.09 per cent year-on-year, and 120 million yuan net profit, up 52.2 per cent year-on-year. The shortage of plasma caused the insufficient of capacity utilization ratio was the main reason affected the slightly decline of the company’s operating income.

During 2005-2007, the sales proportion of human serum albumin of Hualan’s total sales gradually decreased from 79.8 per cent to 72.9 per cent and, 58.2 percent respectively, while IVIG sales rose rapidly from 8 per cent to 12 per cent and 26 per cent respectively; rest of other products accounted for the total sales increased rapidly from 20 per cent to 27 per cent and 42 per cent, contributing additional extra 51.14 million yuan sales in 2007. Meanwhile, the gross profit ratio of IVIG is higher than human serum albumin, which promoted Hualan's overall gross profit ratio rose sharply and profits increased significantly.

Contents

1 Brief of Hualan

2 Performance of 2007
2.1 The Shortage of raw materials led to a slightly decline in operating income
2.2 Gross profit increased by higher prices
2.3 Acquisition of plasma banks caused rising cost

3 Analysis of industry
3.1 The short supply of Global influenza vaccine
3.2 The huge potential market of China's vaccine products
3.3 The Wenchuan Earthquake caused huge demands of vaccine
3.4 The strict regulation will support the steady and rapid industry growth

4 Analysis of performance
4.1 Leading enterprises benefit from the increasing industry concentration
4.2 The improvement of products structure
4.3 The merged plasma banks are expected to ease the shortage of capacity


Figure Index

The structure of Hualan's main business
The business income 2003 - 2007
The proportion of main products’ income 2003 - 2007
The gross profit ratio of each product 2001 - 2007
The period expenditure quarterly 2005-2007
The supply of flu vaccine in U.S.
The maps of "5.12" Wenchuan earthquake zone
The sales revenue and gross profit ratio of main products 2004-2007
The proportion of main products’ sales of the total sales revenue 2004-2007