Pharmaceutical companies continue to disclose 2019 performance forecasts, 21 expected first losses

With the listed pharmaceutical enterprises successively disclosing the 2019 performance forecast, there are 21 estimated first losses, mostly due to goodwill impairment, asset impairment, sales expenses, etc Among them, 7 pharmaceutical companies, including Yuheng pharmaceutical, Asia Pacific pharmaceutical, shengjitang and Jiyao holding, are expected to lose more than 1 billion yuan According to the data, Yuheng pharmaceutical has more than 80000 shareholders, many of whom are well-known institutions It is estimated that the number of A-share pharmaceutical enterprises with the first loss of net profit in 2019 is 21 out of 7 pharmaceutical enterprises with the first loss or more than 1 billion in the disclosed performance forecast as of February 20 Among them, 7 companies, including Yuheng pharmaceutical, Asia Pacific pharmaceutical, shengjitang and Jiyao holding, are expected to have a net profit loss of more than 1 billion yuan Yuheng pharmaceutical: it is estimated that the net profit in 2019 will be 2.6-2.4 billion yuan, down 2165.24% - 2006.37% year on year Under the influence of national key monitoring drug catalogue, local medical insurance and other medical policies, the business performance of Shanghai Huatuo Pharmaceutical Technology Development Co., Ltd (hereinafter referred to as Shanghai Huatuo), Nanjing Wanchuan Huatuo Pharmaceutical Co., Ltd (hereinafter referred to as Nanjing Wanchuan) and Shanxi Pude Pharmaceutical Co., Ltd (hereinafter referred to as Pude pharmaceutical), the wholly-owned subsidiaries acquired by Yuheng pharmaceutical in the previous year, failed to meet the expectation The company employs an asset appraiser to conduct impairment test on the goodwill formed in the early stage of acquisition According to preliminary calculation, the company expects to withdraw about 2.5-2.7 billion yuan of goodwill impairment reserves After the release of the performance forecast, Shenzhen Stock Exchange issued a letter of inquiry to Yuheng Pharmaceutical Co., Ltd on the issues of the performance not meeting the expectation and the impairment of goodwill On February 12, Yuheng pharmaceutical replied that the main products of Shanghai Huatuo and Nanjing Wanchuan are sodium creatine phosphate series, which are greatly affected by the key monitoring catalogue The operating revenue of Shanghai Huatuo and Nanjing Wanchuan asset group decreased by 16.12% year on year from January to September 2019 Due to the relatively large fixed expenses such as depreciation, amortization and labor cost of Shanghai Huatuo and Nanjing Wanchuan, the operating profit decreased The operating profit of January September 2019 decreased by 56.04% year on year The brain protein hydrolysate for injection and vinpocetine for injection in many products of Pude pharmaceutical industry are obviously affected by the key monitoring catalogue and the new medical insurance catalogue However, due to the large variety of products of Pude pharmaceutical industry, the operating profit of Pude pharmaceutical assets group from January to September 2019 decreased by 10.76% year on year As the overall environment of the pharmaceutical industry has changed greatly, and with the continuous tightening of policy implementation, the profit margin of the generic pharmaceutical industry, including Pude pharmaceutical, will continue to decrease Therefore, the company will reduce the future performance expectation of Pude pharmaceutical Asia Pacific pharmaceutical: on October 30, 2019, Asia Pacific pharmaceutical released the annual performance forecast, with a net profit loss of 750-650 million yuan, a year-on-year decline of 460.95% - 412.82% On January 23, 2020, the revised announcement of performance forecast was issued It is estimated that the net profit loss in 2019 will be 2.1-1.5 billion yuan, a year-on-year decline of 1110.66% - 821.9% The reason for the correction is that the company lost control of Shanghai new peak biomedical Co., Ltd (hereinafter referred to as Shanghai new peak) and its subsidiaries, and the company no longer included Shanghai new peak and its subsidiaries in the scope of the company's consolidated statements, resulting in investment losses According to the requirements of relevant accounting standards, the company conducts a comprehensive check on all kinds of assets at the end of the year, analyzes and evaluates the impairment of assets, and plans to make provision for impairment of long-term equity investment, other non current assets, inventory, fixed assets, construction in progress and other assets with signs of impairment Shengjitang: it is estimated that the net profit in 2019 will be 1.7 billion yuan, down 954.1% year on year Shengjitang said that in terms of chemical business, affected by adverse factors such as overcapacity and weak downstream demand, the average sales price of the company's leading products urea and methanol decreased compared with the same period last year; meanwhile, the company made an asset impairment provision of 1.649 billion yuan for the "coal head" production unit and its related assets, resulting in the company's chemical business net profit from profit to loss In the aspect of pharmaceutical business, the state actively promoted the policy of centralized drug purchase, implemented price linkage policy in many provinces and cities, and the progress of drug consistency evaluation was not as expected, which made the sales volume and price of Western medicine decreased year on year At the same time, influenced by factors such as the price rise of traditional Chinese medicine and the prescription policy of traditional Chinese medicine, the sales volume and gross profit rate of traditional Chinese medicine of the company were higher than that of the same period of last year As a result, the company's pharmaceutical business net profit is expected to decline by 150 million yuan year-on-year Jiyao Holdings: it is estimated that the net profit loss in 2019 will be 1.505-1.500 billion yuan, and the net profit of the same period of last year will be 217 million yuan According to the announcement, the main reasons for the loss are the company's provision for impairment of goodwill, provision for bad debts, provision for impairment of construction in progress, inventory loss, etc It is worth mentioning that on July 11, 2019, Kyrgyz holdings announced that it planned to purchase 100% equity of the amended Pharmaceutical Group Co., Ltd through issuing shares and other means And Kyrgyz holding may perform "snake swallowing the elephant" If the acquisition is completed, it will become the largest backdoor case in the pharmaceutical industry, and the pharmaceutical industry will be modified to land a shares On July 25, the acquisition and amendment of pharmaceutical industry was terminated due to the fact that "the implementation conditions are not met, and the major asset restructuring is facing major uncertainties" The Wulong incident caused a large fluctuation in the stock price Sun Jun, chairman and general manager, Zhang Liang, director, Secretary of the board of directors and deputy general manager were warned and fined 300000 yuan by the CSRC, and Zhang Zhongwei, chief financial officer, was warned and fined 100000 yuan On February 6, 2020, Kyrgyz holdings issued a notice that Sun Jun applied to resign from the position of general manager of the company and still served as the chairman of the company after resignation Meanwhile, Xu Wei was appointed as the general manager of the company and Chen Bin as the deputy general manager of the company Impairment of goodwill, provision for bad debts Cause performance collapse? According to the data, most of the pharmaceutical companies with the first loss of performance forecast are "Thunderbolt" before the Spring Festival this year On the evening of January 29, 2019, there are more than 60 listed companies reporting losses, of which 16 have a loss of more than 1 billion yuan, which are basically the first loss In the same period of 2018, no pharmaceutical company reported its first loss However, the sudden "face change" of listed companies' performance is generally caused by three factors: one is the large amount of impairment of goodwill, the other is the provision of bad debts, and the third is the huge loss of projects, of which the impairment of goodwill is the most common Most of the listed companies with "Thunderbolt" performance are due to the frenzied high premium M & A in recent years, and even some companies have revised their performance forecasts substantially Industry analysts pointed out that the high goodwill of listed companies often buried hidden dangers, once amortized year by year, the performance will become very ugly, if through a one-time impairment, although sacrificing the performance of the year, but can exchange for future brilliant performance.