Harbin Pharmaceutical explained five reasons for the decrease in performance! Can we get back on track in 2019?

After two postponements, Harbin Pharmaceutical Group finally announced its reply to the inquiry letter of Shanghai Stock Exchange on 2018 annual report last night In the reply announcement, Harbin Pharmaceutical Group explained the reasons for the sharp decline of pharmaceutical industry income in recent years, including the impact of environmental protection policies, the impact of bidding and price reduction, the impact of medical reform policies, the aging of product structure and internal factors From this reply announcement, it can be seen that due to the increasing pressure of environmental protection, some domestic API enterprises are living a more and more difficult life As a large-scale manufacturer of API in China, Harbin Pharmaceutical Group said in its reply to Shanghai stock exchange that it is speeding up channel adjustment, transforming marketing mode and gradually increasing the proportion of medical distribution business It can be said that 2019 will be a crucial transformation year for Harbin Pharmaceutical Group Great reduction in performance! Why? According to the first quarter report of 2019 issued by Harbin Pharmaceutical Group, the net profit of the first quarter of 2019 of Harbin Pharmaceutical turned into deficit, in which the operating revenue of the pharmaceutical industry and commercial sector of the company showed a downward trend in the last four years, with a cumulative decline of 38.16% and 27.36% respectively The operating revenue of the pharmaceutical industry sector this year was 3.735 billion yuan, down 6.49% year on year In response to the announcement, Harbin Pharmaceutical explained that the above performance decline was mainly due to five factors, including the increase of environmental pressure, the change of drug bidding and purchasing methods, the promotion of medical reform policies, the aging of product structure and internal factors As we all know, Harbin Pharmaceutical Group is a large manufacturer in China in terms of API Since the implementation of strict environmental protection order last autumn and winter, it has a considerable impact on the production of Harbin Pharmaceutical API Harbin Pharmaceutical Group said in the reply announcement that due to the strengthening of national environmental protection and industrial safety inspection, Harbin Pharmaceutical's relevant APIs were forced to reduce production or even stop production, which not only affected the external sales of APIs, but also affected the production and sales of downstream preparations For example, the tetrazolium acetic acid used in the production of cefazolin and ceftriazole was frequently out of stock since 2017, which led to the decline of the production of cefazolin acid, cefazolin sodium and ceftriazole, and also affected the completion of the export plan The export revenue decreased year by year For example, 7anca used in the production process of ceftizoxime was out of stock since 2018, which made the production and marketing plan of ceftizoxime sodium unable to be completed In 2018, the export revenue of ceftizoxime sodium was only 4.28 million yuan, down 44% from 2016 Cefazolin and ceftizole, as the main varieties of API in Harbin Pharmaceutical Group, will affect the performance of Harbin Pharmaceutical Group once the production is reduced or even stopped In addition, the bidding and purchasing performance of Harbin Pharmaceutical Group was not very good last year For example, the sales volume of cefotiam hydrochloride for injection, the main product of Harbin Pharmaceutical Group, has been declining since last year According to the reply announcement of Harbin Pharmaceutical Group, the sales revenue of the product reached 205 million yuan in 2016, but by 2018, the sales revenue has dropped to 82.02 million yuan In the new round of bidding, Ningxia, Jiangxi and GuiGui have been invited There is no bid winning performance of the products in Jiangsu and Jiangsu, which will inevitably affect the overall performance of Harbin Pharmaceutical Group In fact, in terms of the overall product layout, Harbin Pharmaceutical Group also presents a situation of aging structure On the one hand, the product development is not strong enough, and there is a lack of new products on the market On the other hand, many products are actively or passively shut down for various reasons, and withdraw from the market periodically or permanently According to the data released by Harbin Pharmaceutical Group, there were 211 products (338 product specifications) in production and sale last year, 201 fewer than in 2017 Moreover, among the current products on sale, there are also products that begin to enter the recession period For example, the high calcium tablet, once one of the company's key advertising varieties, had a sales revenue of 170 million yuan in 2015, but only 78.9 million yuan in 2018 In response to the announcement, Harbin Pharmaceutical Group listed the competitive company, Shiyao group, to show the current situation of its new product R & D slump Harbin Pharmaceutical Group said that the reason why petrochemicals could maintain an annual growth rate of nearly 20% in 2015-2018 is mainly due to the development of innovative drugs represented by enbip In terms of sales, the proportion of innovative drugs increased from 48.43% in 2015 to 62.49% in 2018 Misfortune never comes alone, change and help? On May 10, the State Food and Drug Administration issued a notice on the non-compliance of 23 batches of drugs In this notice, Paclitaxel injection produced by Harbin Pharmaceutical Group's subsidiary Harbin Pharmaceutical biological Co., Ltd was prominently listed According to the notice, after the inspection of CFDA, Paclitaxel injection found that the "visible foreign body" project did not meet the requirements In fact, this is not the first time that Harbin Pharmaceutical Co., Ltd has been notified by the State Food and drug administration In November last year, the State Food and Drug Administration issued the notice on 47 batches of drugs not conforming to the regulations (No 110, 2018) According to the notice, the areca with batch number of 1611041s produced by Shiyitang traditional Chinese medicine decoction pieces Co., Ltd., a subsidiary of Harbin Pharmaceutical Group, has been tested as aflatoxin not conforming to the regulations This is also the second time that Harbin Pharmaceutical Group Shiyitang Chinese medicine was blacklisted last year However, since 2014, Harbin Pharmaceutical Group has been listed five times, which is rare among domestic listed pharmaceutical companies In addition, Harbin Pharmaceutical Co., Ltd has many problems in the mixed reform Last year, it introduced CITIC Capital to participate in the mixed reform, so as to promote the vitality of the company and become the second Yunnan Baiyao It's not surprising that the mixed reform was finally punished by the Shanghai Stock Exchange, so the mixed reform was terminated The Shanghai Stock Exchange determined that the restructuring of Harbin Pharmaceutical was blind, and CITIC Capital violated its commitment, which seriously affected the normal trading order of Harbin Pharmaceutical Co., Ltd and people's Tongtai stock Harbin Pharmaceutical Co., Ltd and Harbin Pharmaceutical Group were respectively given disciplinary sanctions such as the person in charge of Harbin Pharmaceutical Group in time, the promoter of restructuring, and the company's board secretary However, the road of mixed reform of Harbin Pharmaceutical Co., Ltd did not stop On the night of April 24, Harbin Pharmaceutical Group again determined the specific plan for the new capital increase and share expansion The new plan is to introduce no more than three investors (including one strategic investor) through public collection to promote the mixed reform After the completion of capital increase, the total equity proportion of Harbin Pharmaceutical Group held by all investors to be introduced is 20% Since then, Harbin Pharmaceutical Group may change from a state-owned holding enterprise to a state-owned joint stock enterprise, and may change to no actual controller But for Harbin pharmaceutical, even if the mixed reform is successful, its next step is still a long way to go After all, in the case of such a huge decline in performance, it is unknown that the introduction of other capital forces to enhance the vitality of enterprises can achieve the expected results But at least, it's a positive sign This article is reprinted by yaozhi.com The copyright belongs to the original author The purpose of reprint is to transmit more information, which does not represent the view of this platform If the content of the work, copyright and other issues are involved, please contact our website message, we will delete the content in the first time.