Health care products first brother from earn 1 billion to lose 370 million top 10 brands who are the main ups and downs

Figure 1: market share of top 5 enterprises in China's urban retail drugstores Source: China's urban retail drugstore pattern of minenet According to the company's annual report, in 2015, according to the company's strategic planning and business development needs, the business of Guangzhou Baijian Bioengineering Co., Ltd., a wholly-owned subsidiary, was adjusted and contracted, and all the self operated stores of the nutrition center were closed All the former affiliated stores of the nutrition center were transferred to Tangchen pharmaceutical for management Since 2015, the market share of Guangzhou Baijian Bioengineering Co., Ltd has gradually shrunk in China's urban retail drugstore terminals, and the market share of Tangshen Beijian has increased accordingly Although it's a bit like the "left pocket goes out of the right pocket" model, in terms of the total market share, it was 30.57% in 2015, and it has risen to 34.10% in 2018 Tangshen Beijian has grasped more than one third of China's zero Sell pharmacy terminal health products market Table 1: Top 10 brand sales of terminal health care products of China's urban retail pharmacies in 2018 (unit: 10000 yuan) Source: China's urban retail drugstore pattern of minenet From the brand point of view, tangsenbeijian's calcium glucochondroitin tablets, protein powder and liquid calcium soft capsules occupy the top three places, among which the sales volume of calcium glucochondroitin tablets in 2018 has exceeded 1 billion yuan, and the protein powder is expected to become the second 1 billion single product in 2019; in addition, the vitamin B group tablets and vitamin C tablets of Guangzhou Baijian bioengineering company, a subsidiary, occupy the list Seventh and ninth, the two products also have a good growth in 2018 Figure 2: changes in performance of betaine Thomson since its listing (unit: 100 million yuan) Source: annual report of the company Since its listing on December 15, 2010, Mr Tang's performance has gone all the way up: in 2012, the operating revenue exceeded 1 billion yuan, in 2015, the operating revenue exceeded 2.2 billion yuan, in 2018, the net profit exceeded 1 billion yuan for the first time, and the gross profit rate has been maintained at over 63% Recently, Mr Thomson Bijian released the full year performance forecast for 2019 It is estimated that the net profit loss attributable to the shareholders of the listed company is about 365 million to 370 million yuan, the first loss in 10 years since the listing The news shocked the industry Mr Tang said that affected by the implementation of the electricity business law, life space Group Pty Ltd (LSG) failed to achieve its expected business in the Australian market in 2019, which had a greater adverse impact on the company's performance According to the relevant requirements of China Securities Regulatory Commission, the company conducted preliminary impairment test on the goodwill formed by the early acquisition of LSG It is estimated that the provision for impairment of goodwill is about 1 billion to 1.05 billion yuan, and the provision for impairment of intangible assets is about 540 million to 590 million yuan This wave of operation is familiar Do you remember the first loss of humanwell in 2018? In 2018, humanwell pharmaceutical made provision for impairment loss of goodwill and impairment loss of intangible assets of 3.1 billion yuan, resulting in a net profit loss of 2.358 billion yuan in 2018, a year-on-year decrease of 213.97% At that time, humanwell pharmaceutical mentioned in the annual report that, after excluding the influence of this factor, the company's net profit after deducting non recurring profit and loss in 2018 decreased by RMB 118 million or 21.18% compared with that in 2017 As mentioned in the annual performance forecast of humanwell in 2019, the company did not find any sign of significant asset impairment, and the net profit attributable to shareholders of the listed company was uncertain on a year-on-year basis Can humanwell turn around in 2019? We'll see After deducting the impact of goodwill and impairment of intangible assets, the company expects the sales revenue in 2019 to increase by a certain margin compared with the same period of last year, with a slight increase in performance compared with the same period of last year, said Mr Tang The main reason is that during the reporting period, the company adopted a moderately radical market strategy: starting the main brand promotion strategy of protein powder as image products, further enriching and consolidating the strategy of large single products, opening the 3.0 strategy of e-commerce branding, accelerating the construction of business super channel and mother baby channel, etc., laying a foundation for the company's performance growth At the same time, the company moderately increased brand investment and marketing efforts during the reporting period, highly concentrated resources and constantly consolidated the company's brand power So it seems that the strength of health products in China can not be underestimated Looking back on the first loss of humanwell in 2018, it was due to the change of market supply and demand and competition pattern of main products ursodeoxycholic acid capsule of epic Pharma, a US subsidiary, and the sharp drop of sales price, which resulted in the company's impairment loss of goodwill and intangible assets totaling more than 3 billion yuan Humanwell said that in response to the change of market environment, epic Pharma will continue to improve its business situation by accelerating the listing of new products, expanding the entrusted production business of drugs and making full use of its mature sales platform to carry out distribution cooperation with domestic enterprises In 2016, humanwell America, a subsidiary of humanwell pharmaceutical, acquired the equity of epic pharma and its affiliated enterprise epic re HoldCo, LLC with a total of US $550 million This acquisition accelerated humanwell pharmaceutical to obtain more than 100 anda approvals The industry predicted that humanwell would become the top 10 first-line generic pharmaceutical enterprise in the United States in the future Epic Pharma did not disappoint humanwell pharmaceutical in terms of research and development According to the data in the global drug database of minenet, seven products of epic Pharma have obtained anda numbers since 2017, involving buspirone hydrochloride, azithromycin, gabapentin, potassium chloride, etc., which is full of gains For humanwell pharmaceutical, the acquisition of epic Pharma is not only conducive to the development of the global market, but also will greatly enhance the market position of humanwell pharmaceutical in the United States after the integration of its R & D, production, sales and operation team with another subsidiary, American puke Table 2: anda obtained by epic Pharma since 2017 Source: minenet global drug database LSG, on the other hand, is also an important platform for global layout In August 2018, Thomson Beijian purchased 100% equity of LSG for cash consideration through Thomson Baisheng, a subsidiary holding 53.33% According to the assets appraisal report at that time, the appraisal value calculated by the market method and the income method increased by more than 30 times At last, Tomson Baisheng obtained 100% of the equity of LSG at the price of 34.11 times of the increase, and the exchange rate at that time was not more than 3.514 billion yuan At the same time, in the way of issuing shares to purchase assets, Mr Tang also obtained 46.67% of the equity of Tangchen Baisheng held by minority shareholders, so as to indirectly hold 100% of the equity of LSG In August 2019, LSG became its wholly-owned subsidiary LSG is mainly engaged in the research, development, production and sales of dietary supplements The probiotic brand life space accounts for 80% of its sales From the company's strategic point of view, Thomson's products have not been involved in the field of probiotics, but in recent years, the rapid growth of probiotic market has brought huge attraction This acquisition has also enriched the product line and layout of global market segments, established an overseas foothold, carried out global business development and more overseas M & A In Tang's reply, it was mentioned that LSG's main revenue channels are divided into ANZ market (drugstores, supermarkets, health products franchise stores in ANZ), cross-border e-commerce, export distribution (mainly gift stores, distribution warehouses, export distributors in ANZ), and industrial agent In the ANZ market channel, the proportion of purchasing on behalf of others was about 40% in 2018, while the proportion dropped to less than 20% in 2019; in the export distribution channel, the main customer group was the purchasing on behalf of others The release of e-commerce law and other relevant laws and regulations and the implementation in early 2019 have a great impact on the Australian purchasing market Compared with drugs, health care products have wider channels of purchase, so the total income will be greater However, in the early years, the chaotic and disordered purchasing market has also brought consumers consumption traps and unsafe factors Therefore, the national level vigorously rectifies the situation Tang said that although LSG's sales revenue was lower than expected before the acquisition, the cross-border e-commerce business in China, one of the main sales channels, maintained a rapid growth For the Australian market, the company will continue to maintain the brand reputation of "life space" in the local market, and further increase the development of cross-border e-commerce platforms At the same time, we should adapt to the changes of new laws and regulations, implement new channel strategies, accelerate business transformation, and actively promote the pace of integration with all existing resources On the other hand, for the domestic market, the company will "make life space the second largest single product with the height of jianlido", concentrate resources and steadily improve the distribution rate of online and offline terminals, and implement Omni channel sales.