Revenue reached 13.4 billion yuan, up 20.7% year on year. What drove the performance of Cr 39 to soar

At the end of 2018, Cr 39 achieved an operating revenue of 13.4 billion yuan, a year-on-year increase of 20.7%, and a net profit of 1.43 billion yuan, a year-on-year increase of 10% By the end of the third quarter of 2019, the operating revenue of Cr 39 has reached 10.2 billion yuan, and the net profit has reached 1.97 billion yuan Compared with the same period of last year, it has a significant increase It can be predicted that the performance of Cr 39 will be better this year So the question is, what supported the surge in the performance of Cr 39? Self diagnosis and treatment business, prescription medicine business and two core business sectors jointly promote the company's products are mostly exclusive or high market share drugs, mainly involving the fields of cold, gastrointestinal diseases, cardiovascular and cerebrovascular diseases, tumors, etc There is still a lot of demand space in these drug fields, and the company's products have obvious competitive advantages According to the 2018 annual report of China Resources Sanjiu group, the operating revenue of China Resources Sanjiu pharmaceutical industry reached 12.861 billion yuan, including 6.665 billion yuan of self diagnosis and treatment business revenue, accounting for 49.64% of the total revenue; 6.196 billion yuan of prescription medicine revenue, accounting for 46.14% of the total revenue; 499 million yuan of packaging and printing business revenue, accounting for 3.71% It can be seen that the self diagnosis and treatment business with OTC drugs as the core and the prescription drug business with chemical drugs as the core are the two pillar industries of the enterprise From 2015 to 2018, the operating revenue structure of Cr Sanjiu mainly focuses on the pharmaceutical industry, with small changes in the structure From the point of view of growth rate, prescription drugs are constantly developing, and the growth rate is faster than the self diagnosis business with OTC drugs as the core It is mainly due to the implementation of policies such as "replacing business tax with value-added tax" and "two ticket system", as well as the gradual implementation of hierarchical diagnosis and treatment, the company is speeding up the transformation of prescription drug business, and various investments are constantly going to the research, development, production and sales of prescription drugs Chemical prescription drugs are mainly concentrated in the field of anti infection Cefazolin sodium series products, including cefazolin sodium for injection and cefazolin sodium for injection, including cefazolin sodium for injection, the trade name is new tyline, which is the exclusive variety of Shenzhen China Resources nine new pharmaceutical industry In 2016, among the top 20 brands of general-purpose anti bacterial drugs in public medical institutions in China, 1.67% of the total The proportion ranks fourth In terms of traditional Chinese medicine prescription, Cr Sanjiu products cover cardio cerebrovascular, tumor, digestive system, orthopedics, pediatrics and other treatment fields, covering more than 3000 hospitals and more than 100000 primary medical institutions nationwide The company has strong competitiveness in children's cold chemicals, of which the company's share of children's Paracetamol and huangnamin in the domestic market has reached 42.84% At the same time, as the biggest piece of the company's revenue business, self diagnosis and treatment business is also developing The self diagnosis and treatment business takes consumers as the core Through in-depth research on the needs of consumers' self diagnosis and treatment, it produces and provides drugs, health care products and health services, and sells through the network of distributors and retail pharmacies all over the country Among the top 20 brands of traditional Chinese medicine for cold medicine, Ganmaoling granules of China Resources Sanjiu Pharmaceutical Co., Ltd ranks first with 13.93%, followed by Compound Ganmaoling granules with 5.31%, with a total market share of 19.24% In the top 20 brand pattern of pediatric Chinese patent medicine, the company's pediatric cold granules ranked second with 8.3%, and pediatric cough syrup ranked sixth with 3.17% The total share of the two products was 11.47%, ranking first in the whole pediatric Chinese patent medicine category Sanjiu Weitai capsule and Sanjiu Weitai granule are the exclusive varieties of China Resources Sanjiu They are mainly used to clear away heat and dry dampness, activate Qi and blood, soften liver and relieve pain They are used to treat stomach pain caused by damp heat, qi stagnation and blood stasis Among the top 20 brands of traditional Chinese medicine, Sanjiu Weitai granules ranked first, with a sales volume of 172 million yuan in 2016, an increase of 0.53% year on year; Qizhi Weitong granules and Wenweishu granules were listed one after another, with a total market share of 14.11% for the three products R & D investment and M & A to build a rich product line are growing by more than 200 million R & D investment every year By 2018, the company's R & D investment has reached 498 million yuan, an increase of 52.7% year on year, which shows the company's determination in R & D investment and transformation to prescription drugs Due to the company's focus on innovative research and development and intelligent manufacturing of medical and health products, in 2018, the company has 22 varieties with annual sales of more than 100 million yuan, including "999 Ganmaoling", "999 dermatitis Ping", "Sanjiu Weitai", "Xiaoer Ganmaoling", "Qizhi Weitong granules", "Gutong Plaster", etc., and supplemented "Tianhe", "Shunfeng" and "haowa" through M & A , yishanfu, Kangfute and other pharmaceutical brands On November 28, 2019, Cr 39 invested 1.42 billion yuan to acquire 100% equity of Aonuo pharmaceutical, improving the layout of children's health and self diagnosis and treatment Through this acquisition, Cr Sanjiu not only reaped "Aonuo", "Jinxin jinjute", calcium zinc gluconate oral solution and other children's calcium supplement brands with good market scale and growth, but also further improved its reputation in the field of health Behind the surging performance is the sharp increase of sales expenses compared with the increase of costs and expenses It is obvious that the surge of sales expenses of China Resources 39 Co., Ltd By the end of 2018, the company's sales expense had reached 7.524 billion yuan, with the sales expense rate higher than 50% In the face of fierce competition in the pharmaceutical market, Cr 39 has chosen to increase its investment in sales, which has greatly promoted the growth of sales performance At the same time, this kind of growth is unsustainable It drags down the net profit of Cr 39 and makes the company's profitability decline It can be seen that in recent years, sales have promoted the growth of the company's gross profit rate, but also made the company's net interest rate continue to decline The reason for the surge in the performance of Cr 39 is mainly due to the company's high-profile and rich products, which are based on the company's years of R & D investment and M & a improvement The investment of sales promotes the growth of performance, but also drags down the company's profit Penicillin is the reprinted content of yaozhi.com, and the copyright belongs to the original author The purpose of reprinting 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.