Another pharmaceutical company "out of the pit" in the cosmetics industry

In recent years, under the influence of factors such as the price increase of raw materials, the price reduction of medicines, and the procurement of bids, the profit space of pharmaceutical companies has been continuously squeezed.
The cosmetics industry
.
According to incomplete statistics, there are currently more than 300 pharmaceutical companies involved in cosmetics business in China, and more than 30 listed pharmaceutical companies include "cosmetics" in their business scope.
There are many traditional Chinese medicine companies such as Pien Tze Huang, Ma Yinglong, Yunnan Baiyao, and Tong Ren Tang
.
A report predicts that from 2019 to 2023, the average annual compound growth rate of the market size of China's beauty industry is about 6.
77%.
In 2022, the market size of China's beauty industry will exceed 500 billion yuan
.
In terms of prospects, the cosmetics industry has a considerable market
.
However, due to the different consumer positioning and marketing channels for cosmetics and pharmaceuticals, it seems that it is not easy for pharmaceutical companies to make successful cosmetics
.
The industry pointed out that although cosmetics have low market costs and high profits, they are also more advantageous in terms of risks and gross profit margins
.
However, professional cosmetics brands have great influence, and pharmaceutical companies have weaker brands than companies specializing in daily chemical products
.
Judging from the performance of pharmaceutical companies involved in the cosmetics industry, such as Pien Tze Huang Pharmaceutical, which established a cosmetics company as early as 2002, its cosmetics business has not shown any significant improvement over the years; Changshan Pharmaceuticals responded to investors on the interactive platform in September Said that the subsidiary Kelonite's "Qianjiyuan" brand cosmetics are currently in the growth stage and the overall scale is small
.
Other pharmaceutical companies involved in the cosmetics industry rarely mention related performance in their performance reports
.
In addition, in recent years, the Food and Drug Administration has continuously introduced updates to regulate the cosmetics industry.
Pharmaceutical companies are also subject to stricter supervision while transforming.
It is even more difficult to make a breakthrough in the cosmetics industry
.
In this context, many pharmaceutical companies have chosen to "exit the pit" in the cosmetics industry
.
Tai'antang announced on the evening of October 13 that it plans to sell and transfer cosmetics-related assets to Shanghai Pibao Biotechnology Development Co.
, Ltd.
together with its wholly-owned subsidiaries, Shanghai Jinpibao Pharmaceutical and Shanghai Tai'antang Cloud Health Technology, in order to optimize the company’s asset structure.
, Focus on the development of the main business
.
After the transaction is completed, Tai'antang will no longer operate the cosmetics business
.
The transfer involves 16 cosmetics trademarks held by Tai'antang, 10 cosmetics trademarks held by Shanghai Jinpibao Pharmaceutical, cosmetics-related formulation technology and cosmetics machinery and equipment
.
Among them, the total evaluation value of cosmetics trademarks is 83,000 yuan, and cosmetics-related formula technology and cosmetics machinery and equipment meet the transfer conditions before evaluation
.
It is understood that Tai'antang's business includes the manufacturing business of Chinese patent medicines and the planting, processing and sales of Chinese medicinal materials, focusing on the three major areas of reproductive health, cardiovascular and cerebrovascular fields and dermatology
.
The 2021 semi-annual report shows that the company achieved revenue of 1.
239 billion yuan in the first half of the year, a year-on-year decrease of 24.
34%; the net profit attributable to shareholders of listed companies was 520 million yuan, a year-on-year increase of 1865.
72%
.
Among them, the pharmaceutical sector's revenue accounted for 96.
15%, and other business revenues accounted for only 3.
85%
.
In May of this year, Tai'antang said in response to investors’ questions that the “Pibao” series of skin care products produced by its wholly-owned subsidiary, Shanghai Jinpibao Pharmaceuticals, had a strong sales momentum, but it did not mention the specific situation of the cosmetics business in the semi-annual report.

.