Chen Xin Pharmaceuticals net profit growth is now trending on the quality inspection black list

Chen Xin Pharmaceutical Co., Ltd. (hereinafter referred to as "Chenxin Pharmaceuticals"), which has finally landed in the A-share capital market, announced its results in the third quarter. Data show that during the reporting period, the company achieved operating income of RMB1,964 million, up 14.91% YoY, while net profit attributable to shareholders of listed companies was RMB204 million, up 24.37% YoY.
despite the positive results, but "China Business Daily" reporter comb found that in recent years, Chenxin Pharmaceuticals' net profit has not increased with the company's revenue growth. From 2011 to 2016, the Company's net profit was RMB237 million, RMB284 million, RMB207 million, RMB219 million, RMB246 million and RMB245 million, respectively.
is also worth noting that the company produced batch number 1510236421 vitamin K1 injection recently by Xiamen City Food and Drug Quality Inspection Institute inspection, the relevant substances do not meet the standards. It is understood that this is not the first time the company's drugs were detected quality problems, from 2014 to 2017, Chenxin Pharmaceuticals has appeared seven times in the official website of the Food and Drug Administration announcement, a number of drugs were found to be unqualified and have been subject to administrative penalties three times.
addition, during the reporting period, Chen xin pharmaceutical market development fees fluctuated year by year growth also once caused the main board development and audit committee's concern and inquiries.
, Chen Xin Pharmaceuticals in an interview with reporters, said that in the past two years, the entire pharmaceutical industry is in a reshuffle stage, the company's stagnant performance is also related to national policy and competition in the entire medical industry. In the area of drug quality supervision, the Company will enter into a separate transport quality assurance agreement with the relevant logistics company and inform downstream distributors of shipping precautions to avoid similar incidents.1, net profit growth is now in a slump
It is understood that Chenxin Pharmaceuticals is engaged in pharmaceutical product research and development, production and sales of integrated enterprises, mainly engaged in chemical preparations research and development and production and operation. During the reporting period, the proportion of large infusion sales revenue to the main business revenue remained at about 60%, which is the company's main dosage form products.
data show that during the reporting period, Chenxin Pharmaceuticals' total assets grew with the expansion of its operations, from 2,694 million yuan at the end of 2014 to 3,273 million yuan at the end of June 2017, an increase of 21.52%.
2011-2016, the company's operating income was RMB1,531 million, RMB2,052 million and RMB22.0, respectively, according to a previously disclosed prospecto by Chenxin Pharmaceuticals. 600 million yuan, 2.388 billion yuan, 2.497 billion yuan, 2.565 billion yuan, the first half of 2017 operating income of 1.249 billion yuan, an increase in the trend is obvious year by year.
note that Chenxin Pharmaceuticals' net profit did not grow with revenue growth. From 2011 to 2016, the Company achieved net profit of RMB237 million, RMB284 million, RMB207 million, RMB219 million, RMB246 million and RMB245 million, respectively. In 2013 and 2015, there were various degrees of decline.
Colum Pharmaceuticals and China Resources Shuanghe as the target companies, in 2014-2016, after deducting non-recurring gains and losses attributable to the parent company's net profit, Colum Pharmaceuticals was 9.9 1.8 billion yuan, 627 million yuan, 538 million yuan, China Resources Shuanghe 523 million yuan, 413 million yuan, 658 million yuan. Chen Xin Pharmaceuticals is only 207 million yuan, 234 million yuan, 230 million yuan, the gap is wide.
chenxin pharmaceutical business income and total profits in the industry ranking is also volatile. From 2013 to 2015, Chenxin Pharmaceuticals' business income industry rankings were: 58, 51, 74, and total profit industry rankings were 93, 113 and 87, respectively.
, the data show that the profitability of China's chemical preparation industry has maintained rapid growth in recent years. According to the statistics of the Ministry of Industry and Information Technology, from 2010 to 2016, the total profit of China's chemical preparation industry increased from 42.415 billion yuan to 95,049 million yuan, with a compound annual growth rate of 14.39%.
Chenxin pharmaceutical industry related person in charge in an interview with reporters, said that the operation of enterprises by the external environment and internal small environment and other aspects of the impact. Over the past two years, the entire pharmaceutical industry has been in a reshuffle phase, and the company's stagnant performance has been linked to national policy and competition across the healthcare industry. At the same time, some policies are beneficial to some pharmaceutical sub-sectors, but not to others, due to the careful classification of the pharmaceutical industry. "Companies can't be like chicken blood, and performance is always going up."2, frequent quality inspection black list
in the case of stagnant performance, recently, Chen xin pharmaceutical product quality has also been revealed that there are problems.
According to the latest Fujian Provincial Drug Quality Bulletin (No. 8 of 2017) issued by the Fujian Food and Drug Administration, the company produces a batch number 1510236421 vitamin K1 injection, by xiamen City Food and Drug Quality Inspection Research Institute inspection, the relevant substances do not meet the standards. Announcement at the same time note: the same batch of products in other provinces supervision sampling qualified, the local regulatory authorities on the enterprise sample supervision sampling qualified.
it is understood that the batch of products was produced on October 23, 2015 by Chenxin Pharmaceuticals, has been valid. In 2016, the company produced 1.0395 million units of this product, achieving sales revenue of 5.8268 million yuan, accounting for 0.2% of the company's total operating income.
Chenxin pharmaceutical industry said that after screening, the market did not appear in the batch of adverse reactions to the clinical use of the product complaints, at the same time, the relevant products have been sold and used, the market has no such batch of products can be recalled.
the cause of the quality problems detected, Chen Xin Pharmaceutical explained that the product belongs to light-sensitive products, the relevant substances are affected by light, transportation, storage requirements are higher. The company will sign a separate transportation quality assurance agreement with the relevant logistics company, and emphasize to inform downstream distributors of transport precautions;
In order to further ensure the safety of public drug use, the State Food and Drug Administration has decided to add a black box warning to the instruction manual for vitamin K1 injections, and to revise the "adverse reactions" (precautions) and other items. All vitamin K1 injection manufacturers should apply for supplementation of the revised instructions in accordance with the relevant requirements. Reporters found that "vitamin K1 injection instructions revision requirements" in the note added: vitamin K1 light rapid decomposition, the use of the process should avoid light.
In fact, the reporter noted that this is not the first time the company was detected quality problems, reporters combed found that the reporting period, the company has been due to the quality of drugs unqualified by 2 administrative penalties, because of the use of unqualified medicine packages by 1 administrative punishment. From 2014 to 2017, Chenxin Pharmaceuticals appeared on the official website of the Food and Drug Administration seven times.
ChenXin pharmaceutical industry related person in charge told reporters that the enterprise a year about 2 billion to 3 billion yuan of sales, in such a large scale, the enterprise in the production, quality links can be firmly controlled, all products before the factory is no problem, but in the product distribution link, dealers in the transport process will inevitably appear some wear and tear. "In accordance with the standards of the pharmaceutical industry, the first step is to check the batch of drugs and samples left in the qualifiability. Our products are not a problem before the company is shipped, similar to the problems in the process of transportation is not actually a problem of the enterprise itself.
however, an industry insider who has long been engaged in research in the pharmaceutical industry said that the occurrence of this phenomenon shows that Chenxin Pharmaceuticals' awareness of drug regulation is still not strong enough, enterprises as the first responsible person, we must strengthen the control of drug quality supervision.
, founder of the third-party pharmaceutical service platform Maxcomley, also said that the production of non-compliance, frequent quality problems, in the final analysis also shows that manufacturers do not pay enough attention to this. 3, the market development fee increased year by year by inquiry
From 2014 to 2016, the company's expenses for the period amounted to 579 million yuan, 598 million yuan, 723 million yuan, and in 2017 alone amounted to 405 million yuan. Costs increased by 20.97 per cent over the same period in 2016.
accounted for a relatively large proportion of sales costs during the current period also increased year by year. In fiscal 2016, Chenxin Pharmaceuticals' sales expenses amounted to 470 million yuan, an increase of 37.37 percent over the same period in 2015.
To this, Chen Xin Pharmaceutical explained that due to the new product development, promotion and market development efforts, staff compensation increases, subsidiary start-up costs and other factors, the company's sales costs, management costs during the reporting period showed an increase in the trend.
reporter noted that Chen xin pharmaceutical sales revenue is mainly composed of market development fees and transportation costs. Among them, the market development fee accounted for a relatively large and year-on-year growth trend. From 2014 to January to June 2017, the Company's market development expenses were RMB177 million, RMB184 million, RMB296 million and RMB169 million, respectively, accounting for 53.41%, 53.68%, 62.93% and 64.45% of the sales expenses.
it is understood that the specific content of the company's market development fees are mainly travel expenses, sales incentives, maintenance handling fees, repayment incentives, sales service fees, business entertainment expenses, product promotion fees.
In June and July of this year, the Main Board Development and Audit Committee on the reporting period of the issuer market development fees increased year by year on two occasions to Chenxin Pharmaceuticals, asking the company to explain the reporting period of each issuer market development fees increased year by year, especially in 2016 the specific reasons and its rationality;
2016, some provinces began to implement a "two-vote system" to accommodate changes in industry policies, with the combined share of sales revenue of direct sales and distributors in 2016 increasing to 60.52 percent from 38.84 percent in 2015, Chenxin Pharmaceuticals said in its prospecto. Due to the higher market development costs borne by issuers in the direct sales model and the distributor model, sales expenses in 2016 increased by 37.37 percent compared to FY2015 and sales expenses increased by 4.62 percentage points compared to FY2015.
Chenxin pharmaceutical industry related person in charge in an interview with reporters only mentioned that, with the expansion of the size of enterprises, sales costs will continue to grow, as a preparation production-oriented enterprises, the more sales costs are also greater. The company's transportation costs, sales costs are within the normal scope. As for the market development costs of specific components of the detailed expenditure, the company said it is not convenient to publish.
the pharmaceutical industry industry said that marketing and corporate marketing strategy layout is closely related. In recent years, with the gradual tightening of relevant national policies, the promotion of academic activities will become the main component of marketing. (China Business News)