CHUANGMEI pharmaceutical actively improves its distribution ability and accelerates its business development

[chinapharma.com news] recently, CHUANGMEI pharmaceutical announced its full year results as of the end of last year CHUANGMEI pharmaceutical is one of the pharmaceutical distributors with distribution network covering South China, Fujian Province and other regions CHUANGMEI pharmaceutical is positioned in the free competitive market, benefiting from the further promotion of the policy dividend of "medicine separation", more chronic brand drugs are going to communities and pharmacies, or catalyzing more potential business opportunities The group is expected to benefit from the industry and policy development and accelerate business development (picture source: Baidu picture) it is reported that the net profit of CHUANGMEI pharmaceutical increased 1.25 times to 59.348 million yuan (the same below); the basic earnings per share was 54.95 points; the final dividend per share was 20 points During the period, the turnover increased by 8% to 3.669 billion yuan, and the gross profit increased by 9.5% to 180 million yuan Gross margin rose 0.06% to 4.91% At present, the company's main business includes distribution and consulting services of drugs, medical devices, food and health products, cosmetics, etc The main customers are pharmaceutical distributors, retail pharmacies, hospitals, clinics, health stations, etc in South China The core customers include Kangze pharmaceutical, DASHENLIN, Kangmei pharmaceutical, CIIC pharmaceutical, etc Last year's increase in gross profit margin was mainly due to the increase in the proportion of sales to retail pharmacies in 2016, the group's initiative to eliminate some products with low inventory turnover and gross profit margin, the number of products as a primary distributor increased by 715 to 4509 compared with the previous year, and more purchase discounts were obtained from suppliers CHUANGMEI Pharmaceutical Co., Ltd signed a strategic cooperation agreement with Shantou Yuedong Pharmaceutical Co., Ltd It is expected that 1200 pieces of traditional Chinese medicine will be added to the group Through this strategic cooperation, it will help the group to ensure the stable supply of high margin varieties of Chinese herbal pieces, expand the business in the field of Chinese herbal pieces, and enrich the product portfolio, so as to further improve the profitability and enhance the competitive position In addition, the Group signed a capital increase and share expansion agreement with Zhuhai Hengxiang Pharmaceutical Co., Ltd to increase the registered capital of Hengxiang Pharmaceutical Co., Ltd and hold 70% of the shares, becoming the controlling shareholder The price is 18 million yuan Hengxiang pharmaceutical is a pharmaceutical distribution company in South China, with about 1100 downstream customers The sales network covers the whole Zhuhai drug terminal market and part of Zhongshan market, and it is a company with a high coverage of terminal customers in Zhuhai CHUANGMEI pharmaceutical has two large-scale pharmaceutical logistics distribution centers in Shantou and Foshan, as well as professional transportation teams and modern information systems Its business scope covers Guangdong Province, covering Fujian, Zhejiang, Guangxi, Hainan, Hunan and other surrounding provinces and cities, with partners throughout the country The group plans to strengthen its existing distribution network and enhance its distribution capacity in order to improve operating efficiency and reduce costs In the future, it will continue to strategically acquire mature independent pharmaceutical distribution companies in South China and expand its business scope Investors can buy around HK $7.80, with a target of HK $9.20.