North China Pharmaceuticals reported a 254.32% year-on-year increase in net profit for the third quarter

On October 17, North China Pharmaceuticals released its third-quarter report, reporting that the company's operating income for the January-September period was 7 billion yuan, and the net profit attributable to shareholders of listed companies exceeded 70 million yuan, up 254.32 percent year-on-year.
under the pressure of safety and environmental protection, pharmaceutical policy adjustment and increasingly fierce market competition, North China Pharmaceuticals in 2018 changed the loss of the past year, the performance has steadily improved. Northeast Pharmaceuticals also issued a third-quarter forecast, the company's net profit in the first three quarters of the year-on-year growth rate of 88% to 100%.
these traditional pharmaceutical companies, which are experiencing the difficulties of the transformation of the pharmaceutical industry, are slowly finding their way out of their new world.the transformational difficulties of traditional state-owned enterprises
as a pharmaceutical company mainly based on the production of API, North China Pharmaceuticals at the end of 2016, like other API manufacturers, environmental protection has become the biggest resistance.
Shijiazhuang government at that time issued "on the implementation of the sword-slashing operation", 45 days time to require the city's pharmaceutical companies to stop production, without the approval of the government may not resume production.
Later, North China Pharmaceutical Co., Ltd. received a grant of 15.4628 million yuan, in other financial subsidies, its subsidiary Hebei Huamin Pharmaceutical Industry received subsidies for the upgrading of raw materials clean production technology, Huaheng Pharmaceutical Industry was included in the National Development and Reform Commission on the release of Beijing-Tianjin-Hebei and key areas of pollution control projects in 2016 in the second batch of the central budget investment plan.
In addition, the "2 plus 26" part of the city's industrial industry in autumn and winter 2017-2018 to carry out the wrong peak production notice issued, Beijing, Tianjin, Hebei Province, Shanxi Province, Shandong Province, Henan Province, 6 provinces and 28 cities, API production-related pharmaceutical enterprises involved in VOCs volatile organic matter emission process in principle during the heating season to implement the shutdown.
same time, the API market is also entering the integration period of the fittest, domestic and foreign markets, large-based API products overcapacity. Northeast Pharmaceuticals, North China Pharmaceuticals and other large-scale API manufacturers are facing many challenges.
North China Pharmaceuticals has also announced that by the world economy in a complex environment recovery process is still slow, external pharmaceutical environment and the impact of the tender for base drugs, pharmaceutical prices continue to fall, at the same time, the production of raw materials, energy, power, labor costs and environmental protection management input continues to increase, further compressing the profit margins of enterprises, so that the operational risks gradually enlarged, the company's internal institutional mechanisms, relocation and upgrading, structural adjustment and other reform tasks will be very difficult.
2017, North China Pharmaceuticals achieved full-year operating income of RMB7.709 billion, of which RMB6.577 billion, up 13.62% YoY, and total profit of RMB 59.5517 million, down RMB18.5936 million, or 23.79%.
It is worth noting that environmental protection factors in North China led to the region's vitamin C manufacturers to reduce production and stop production, the price of the API quickly pushed up, the original performance loss, also occupies the vitamin C production queue of Northeast Pharmaceuticals enjoyed the dividend of price increases, Northeast Pharmaceuticals in 2016 to achieve a net profit of 0.26 billion yuan to turn a profit, in 2017 to achieve a net profit of 0.92 billion yuan.'s performance has risen steadily in 2018
the situation has changed in 2018.
first half of this year, North China Pharmaceuticals' net profit increased by 88.03 percent, and by the third quarter, its net profit increased by 254.32 percent year-on-year. The same is true of Northeast Pharmaceuticals, whose half-yearly report said its net profit rose nearly 200 percent year-on-year, with gross margins in the API segment up 26.76 percent year-on-year. The announcement of Northeast Pharmaceuticals in the first quarter of 2018 still shows that the main reasons for the company's performance growth are higher vitamin C prices and higher gross margin of products.
the large environment for the production of raw materials is good for pharmaceutical companies that emphasize quality. In the case of strict environmental protection control throughout the country, there are two aspects affecting the production of raw materials, one is environmental protection management is not up to standard RAW production enterprises to stop production or closure, and the other is environmental protection is not up to standard chemical raw materials production enterprises to stop production or closure, resulting in a shortage of raw materials can not be produced, so the API products market supply is tight, profit growth increased, export delivery value increased year-on-year. In addition to North China Pharmaceuticals, Northeast Pharmaceuticals, Kazakhstan Pharmaceuticals, Haizheng Pharmaceuticals and Zhuhai Federation and a few other enterprises, the vast majority of domestic API exporters are generally small in size.
According to the announcement of North China Pharmaceuticals, the company's cephalospora antibiotic products, acid streptomycin and related products, amosiline, ampicillin and other products prices and sales have increased in the first half of the year, followed by an increase in gross margin.
these traditional pharmaceutical companies, which are known for their raw materials, have their own different ways.
is going through the final year of the company's overall relocation, and the main task now is to successfully complete the relocation. In its semi-annual report mentioned that the company's API sector revenue as a proportion of the main income decreased, the pharmaceutical sector accounted for a stable proportion, while the commercial sector rose. On the basis of the "three-year reform", the company will accelerate the development of "three-year multiplies". Its introduction of strategic investors, the completion of Liaoning Fangda Group's fixed increase, enterprise mixed reform pilot exploration to promote to ensure the smooth completion of the company's overall relocation. The company is also in favor of the promotion of raw materials, preparations two campus intelligent manufacturing, intelligent management projects rely on the company's big data department and cloud technology subsidiaries.
North China Pharmaceuticals chose to transition to preparations and increase sales of high value-added products. First, we will continue to optimize the industrial structure. According to the company's plan, the biopharmaceuticals as the development focus, while optimizing the pharmaceutical industry configuration and production processes, pharmaceutical industry entities achieved steady growth. Second, continue to optimize the product structure. Through the terminal and academic promotion and other forms, increase the sales of high value-added, high gross margin preparation products, the company's key varieties of biological agents such as hepatitis B vaccine, anti-infective products such as cephalosporinesodium preparations and other products to achieve a volume price increase.
in early October 2017, the domestic exclusive bee poison injection from the new preparation plant officially offline. On January 30, 2018, Jintan signed a cooperation agreement with CJ Medical Care of Korea ("CJ HealthCare") to obtain exclusive rights to develop, produce and commercialize the drug CJ-40001 for chronic kidney anemia and other related diseases in China. On April 23, 2018, a new class of drugs developed by the Central Research Institute to recombine human-sourced anti-rabies virus single anti-injection III. Phase III clinical trial application was accepted.
in January-April 2018, North China Pharmaceuticals' biopharmaceutical revenue increased 32% from the same period last year, and by the end of 2017, the company was no longer focusing solely on API, but had achieved a 6.7:3.3 ratio of preparations to API.
can also be found that North China Pharmaceuticals recently received a government subsidy, a total of about 6 million yuan, this time the main subsidy is for the Group's new drug research and development company research, mainly biopharmaceutical industry development funding. The company also made it clear that the grant will have a positive impact on the company's operating results for the current year.
has been steadily increasing and is related to the upgrading of the company's product structure. The product research and development structure of North China Pharmaceutical Ladder has been formed. The company has also publicly said that in the next 3-5 years will be launched biological medicine new products, to expand the enterprise biopharmace product cluster, to create a coordinated development of the production industry. (Medical Economics)