Strict supervision of Chinese herbal medicine preparation industry

[China Pharmaceutical network industry trends] with the strict supervision of Chinese Herbal Pieces industry, this is also a rapid elimination competition The strong enterprises are speeding up their horse racing and enclosure They have been in the small, scattered and disordered Chinese Herbal Pieces Market for a long time, or they will play the game of the big alligator (the supervision of Chinese herbal medicine industry has been tightened, and the strong enterprises have raced to the market to speed up the pace of development Source: Baidu pictures) in the closing stage of 2016 annual report, the performance of various segments of the pharmaceutical manufacturing industry can also be seen In addition to the blood industry with attractive profits, the new hot spot that the major pharmaceutical enterprises have set foot in one after another - the performance of Chinese Herbal Pieces industry is also very outstanding, and the revenue of several pharmaceutical enterprises that set foot in Chinese herbal pieces, such as Kangmei pharmaceutical, has increased in varying degrees Of course, high returns will also lead to the increasingly fierce competition As the industry regulation is tightened, this is also a rapid elimination competition, and the strong enterprises are speeding up their horse racing and enclosure For a long time, they have been in the small, scattered and disordered market of Chinese herbal pieces, or will play the game of alligator Report card of Kangmei pharmaceutical industry: both revenue and net profit increased In the evening of April 19, Kangmei pharmaceutical industry published its annual report for 2016, which realized an operating revenue of 21.642 billion yuan in the past year, an increase of 19.79% year on year; net profit attributable to shareholders of listed companies was 3.340 billion yuan, an increase of 21.17% year on year Compared with 2015, the growth rate of revenue and profit has increased - in 2015, the growth rates of both were 13.28% and 20.60% respectively According to the annual report, it is speculated that the growth is mainly due to the fact that the dominant position of Chinese herbal pieces has been stable In 2016, the revenue of Chinese herbal pieces of Kangmei pharmaceutical industry reached 4.704 billion yuan, an increase of 26.43% year-on-year; and benefited from the influence of circulation policies such as "two vote system", the revenue of drug trade increased In 2016, the revenue of Kangmei pharmaceutical industry reached 7.301 billion yuan, an increase of 35.35% year-on-year For the performance drivers of Kangmei pharmaceutical in 2016, the analysis is as follows: first, the layout and construction of industrial system of large health industry have been preliminarily completed Kangmei pharmaceutical mentioned in its annual report that it has preliminarily formed a complete layout and construction of industrial system of large health industry, which has great advantages in the upper, middle and lower reaches In the upstream, we should master the core resources of traditional Chinese medicine supply, and build the advantages of upstream medicine supply management by strengthening the mastery of the core market terminals such as pharmacy trusteeship, medical institutions, chain drugstores, etc.; in the middle reaches, we should master the specialized market of traditional Chinese medicine, the central system of traditional Chinese medicine industry, and build the "Kangmei e" The online bulk trade e-commerce platform of traditional Chinese medicine of Yaogu has formulated and launched the "Kangmei · price index of traditional Chinese medicine" By fully integrating the logistics and storage base resources and building a modern pharmaceutical logistics distribution system, more than 30 modern pharmaceutical warehousing logistics centers have been set up in China, including Beijing, northeast, Shanghai, Puning and Sichuan The company's unique strategic barriers and advantages have formed a strong support for the company's business of Chinese herbal medicine, Chinese herbal medicine trade, health products and health food In the downstream, a multi-level marketing network integrating medical institution resources, pharmacy trusteeship, OTC retail, chain drugstores, direct sales, medical e-commerce, and mobile medicine has been built Through the construction and operation of Kangmei hospital, the acquisition and integration of Meihekou Central Hospital and Kaiyuan Central Hospital, the mobile medical project represented by smart Pharmacy (mobile medical + urban central pharmacy) has been promoted Continue to land and successfully cut into the strategic highland of medical service, a major health industry 2 The advantageous position of Chinese herbal pieces is stable Thanks to the policy dividend of Chinese herbal pieces and the increasingly strict industry supervision, some "small" and "poor" competitive enterprises are gradually eliminated, the industry concentration is improved, and the Kangmei pharmaceutical industry with a complete range of products has achieved rapid growth in the new development opportunity of the industry 3 In recent years, the medical service market has shown the advantages of rapid growth and larger growth space Through the construction and operation of Kangmei hospital, the acquisition and integration of Meihekou Central Hospital and Kaiyuan Central Hospital, Kangmei pharmaceutical industry has realized the preliminary foundation of the operation of the entity hospital Secondly, through pharmacy trusteeship, supply chain extension services and community health services, we can integrate a wide range of resource bases at both ends of supply and demand Thirdly, the Internet plus medical project, which is represented by "smart pharmacy" and "network hospital", has successfully landed the interaction with the C end user resources Listed pharmaceutical companies involved in Chinese herbal pieces have increased their codes In recent years, many domestic listed pharmaceutical enterprises have made arrangements in the market of Chinese herbal pieces, the reason is that Chinese herbal pieces are in the middle of the industry chain of Chinese herbal medicine, and the layout of Chinese herbal pieces can guarantee the safety of pharmaceutical enterprises' products; in addition, the industry development time is still short, the competition pattern has not been finalized, and the national support policies are constantly issued, and other reasons, the major pharmaceutical enterprises have made arrangements in advance to seize the industry Opportunity Many domestic listed pharmaceutical enterprises have set up Chinese Herbal Pieces companies or product processing bases, acquired the equity of Chinese Herbal Pieces enterprises, and set up Chinese Herbal Pieces merger and acquisition management fund According to the 2016 annual report data of six listed pharmaceutical companies involved in the Chinese Herbal Pieces industry and with excellent performance of such products, the Chinese herbal pieces have performed well in terms of revenue and profit contribution Whether it is the Chinese herbal medicine with an overall net profit growth of more than 50% or Xiangxue pharmaceutical with a net profit decline of more than 50%, the contribution of Chinese herbal pieces is more prominent In addition, Yunnan Baiyao, one of the leading enterprises in the Chinese herbal medicine industry (the 2016 annual report has not yet been published), has also made outstanding profit performance in the past, with its subsidiary's 2015 net profit of 259 million yuan In 2016, the turnover of traditional Chinese medicine of China was 6.533 billion yuan (the same unit below), a year-on-year increase of 76%; the net profit was 967 million yuan, a year-on-year increase of 54.6%; the basic earnings per share was 21.73 points; it is planned to distribute 3.59 Hong Kong cents per share According to its annual report, the company's revenue growth was mainly due to the fact that 2016 was the complete year of merger after the acquisition of Jiangyin Tianjiang pharmaceutical Among them, the business of traditional Chinese medicine formula granules accounts for 66.7% of the total turnover In March 2015, Chinese herbal medicine raised HK $7.2 billion to acquire 87.3% equity of Jiangyin Tianjiang pharmaceutical industry, which became a major merger in the history of domestic medicine at that time Jiangyin Tianjiang Pharmaceutical Co., Ltd was the industry leader of traditional Chinese medicine formula granules in China before M & A, with a market share of more than 50% This merger and acquisition filled in the blank of Chinese traditional medicine in the field of Chinese herbal pieces, and improved the industrial chain In 2016, the operating revenue of Xiangxue pharmaceutical was 1.862 billion yuan, an increase of 27.13% year on year; the net profit was 66 million yuan, a decrease of 62.77% year on year Among them, the business of Chinese Herbal Pieces kept a good growth, achieving an operating revenue of 613 million yuan, a year-on-year growth of 55.16% According to its annual report data, it can be inferred that Xiangxue pharmaceutical's "increase in revenue does not increase profits" The increase in revenue is due to the combination of the financial statements with the newly acquired statements of Hubei Tianji Herbal Pieces Co., Ltd and the decrease in profit is due to its inventory in the dealer channel for the digestion of core products, the reduction of shipment volume, and the sharp decrease in revenue of antiviral oral liquid and Banlangen Granules The revenue of antiviral oral liquid was 233 million yuan, a decrease of 43.16% over the previous year, and that of Banlangen was 34 million yuan, a decrease of 39.22% over the previous year In 2016, the operating revenue of CIIC pharmaceutical was 730 million yuan, up 6.10% year on year; the net profit was 54 million yuan, down 33.33% year on year However, the gross profit of its pharmaceutical business increased from 209 million yuan to 218 million yuan, and the gross profit margin increased from 63.7% to 64.0% Its annual report explains that the main reason is that the gross profit margin of the new decoction pieces increased to 81.7% According to the 2016 annual report of CIIC pharmaceutical, the main reason for its profit decline is the increase in advertising expenses for promoting products and brands It can be seen that in the past year, CIIC pharmaceutical industry has increased its expenses in marketing and brand promotion It is reported that the total expenses of its staff costs, advertising and promotion costs and group chain drugstore rental are 280 million yuan, an increase of 36.7% over last year In the beach grabbing market, from the data analysis of net profit, CIIC pharmaceutical industry can be described as the first to be promoted and the second to be restrained, which to a certain extent reflects the upgrading of the market competition of Chinese herbal pieces Potential market with high growth rate and high potential: according to the data of the National Bureau of statistics, in 2016, the main business income of Enterprises above the scale of the pharmaceutical industry reached 2963.586 billion yuan, an increase of 9.92% year-on-year, an increase of 0.90 percentage points compared with the same period of last year, and an increase of 5.02 percentage points higher than the overall growth rate of the national industry Among them, the main business income of traditional Chinese medicine drink film sub industry is 195.636 billion yuan, an increase of 12.66% year on year, which is second only to medical instrument and equipment manufacturing in the pharmaceutical industry segmentation industry The high growth rate of main business income of the pharmaceutical industry in 2016 is mainly due to the fact that Chinese herbal pieces are the intermediate link between the preceding and the following in the traditional Chinese medicine industry On the one hand, they can be directly processed from the upstream Chinese herbal medicines, taken as pharmaceutical formula or taken directly, on the other hand, they can be processed as raw materials into Chinese patent medicines and enter the downstream sales terminal Moreover, due to the frequent quality and safety problems of traditional Chinese medicine, the major traditional Chinese medicine enterprises began to control the raw materials, such as setting up the planting base of traditional Chinese medicine As an important product with high gross profit of traditional Chinese medicine, Chinese medicine pieces will naturally attract the major pharmaceutical enterprises to step in and become a new battlefield of horse racing enclosure Under the situation of high growth of Chinese herbal medicine industry, problems such as low industry concentration, disordered market competition, insecure quality and extensive utilization of Chinese herbal medicine resources have also become a hidden worry for the development of the industry At present, there are thousands of Chinese Herbal Pieces processing enterprises in our country, but they reach the scale of billion yuan In recent years, with the strict supervision of the industry, some small-scale, weak competitiveness and irregular management of decoction pieces production enterprises will gradually be eliminated by the market, the industry concentration will further improve, and the market competition pattern will accelerate to change.