The 2021 financial report competition of the four major pharmaceutical distribution giants: Sinopharm’s revenue exceeds 500 billion, and the net profit of Jiuzhoutong drops by 20%

Recently, the four major domestic circulation giants Sinopharm Holding, Shanghai Pharmaceuticals, China Resources Pharmaceuticals, and Jointown have successively announced their 2021 financial reports

In 2021, Sinopharm Holding ranked first with a total revenue of 521 billion yuan, followed by Shanghai Pharmaceuticals (total revenue of 215.

In 2020, Sinopharm Holding achieved total revenue of 451.

In the net profit attributable to the parent in 2021, Sinopharm Holding, Shanghai Pharmaceuticals, China Resources Pharma, and Jointown achieved 7.

From the perspective of the most core operating business, in 2021, the sales of Sinopharm's pharmaceutical distribution business will be nearly 390 billion yuan; Shanghai Pharmaceutical's commercial business will contribute 190.

details as follows:

01 Sinopharm Holding

In 2021, revenue will increase by 14.

Sinopharm Holdings revealed that the company’s net profit growth rate was lower than its revenue due to: 1.

Compared with 2020, Sinopharm's expense ratio is well controlled

Sinopharm Holding's pharmaceutical distribution business will have sales of nearly 390 billion yuan in 2021, a year-on-year increase of 12.

In 2021, Sinopharm's medical device distribution sector and retail business can achieve 20% growth, mainly due to the national procurement of high-value consumables, the normalization of alliance procurement, the official implementation of centralized procurement of cardiac stents and orthopedic consumables, and the national The "dual-channel" policy for retail pharmacies jointly promulgated by the Medical Insurance Bureau and the National Health and Health Commission has further promoted the circulation of prescription drugs and innovative drugs from in-hospital to out-of-hospital and other factors

In addition, it is understood that Sinopharm Holding owns 8,798 stores under Guoda Pharmacy, an increase of 1,138 compared with 2020, 1,461 specialty pharmacies, an increase of 144 compared with 2020, and 403 dual-channel pharmacies

02 Shanghai Pharmaceuticals

In 2021, Shanghai Pharmaceuticals will achieve an operating income of 215.

In 2021, the total investment in research and development will reach 2.

The pharmaceutical industry achieved a revenue of 25.

The top 10 pharmaceutical wholesale companies accounted for 55.

It is worth noting that Shanghai Pharmaceuticals is accelerating the development of large varieties of traditional Chinese medicines and introducing Yunnan Baiyao as a strategic investment

In 2021, after the introduction of Yunnan Baiyao's strategic investment, Shanghai Pharma will deeply combine Yunnan Baiyao's brand experience with the company's rich pipeline and strong R&D capabilities, and cooperate to develop new and old varieties for the second time.
Incremental income of 2 billion to 3 billion yuan
.

03 China Resources Pharma

In 2021, during the period, the group realized a profit of HK$236.
806 billion, a year-on-year increase of 18.
2%; the net profit attributable to the parent company was HK$3.
769 billion, a year-on-year increase of 14.
31%, and the basic earnings per share was HK$0.
60
.

Mainly affected by the easing of the epidemic, the performance achieved recovery growth
.
In 2021, the revenue share of the three main business segments of China Resources Pharmaceutical Pharmaceutical, pharmaceutical distribution and pharmaceutical retail will be 14.
9%, 81.
9% and 3.
2% respectively
.

Among them, the pharmaceutical business achieved a revenue of HK$38.
614 billion, a year-on-year increase of 19.
9%; the pharmaceutical distribution business achieved a revenue of HK$199.
125 billion, a year-on-year increase of 17.
9%; the pharmaceutical retail business achieved a revenue of HK$7.
605 billion, a year-on-year increase of 17.
6%
.

In 2021, the company achieved a gross profit of HK$35.
380 billion, a year-on-year increase of 9.
6%, and a gross profit margin of 14.
9%, a year-on-year decrease of 1.
2 percentage points, mainly due to the decline in the gross profit margin of the pharmaceutical distribution business
.

Driven by the mitigation of the epidemic and the extension of mergers and acquisitions, the revenue of the self-diagnosis (CHC) segment, the prescription drug segment and the biopharmaceutical segment of China Resources Pharma's pharmaceutical business increased significantly.
Among them, the CHC business achieved a revenue of HK$16.
733 billion, a year-on-year increase of 31.
5%, mainly from Ejiao series products , pediatrics, cold and skin business revenue increased significantly year-on-year; the prescription drug segment realized revenue of 19.
365 billion Hong Kong dollars, an increase of 11.
9% year-on-year; the biological drug business realized revenue of 439 million Hong Kong dollars, an increase of 176.
7% year-on-year, mainly due to the company's completion of Boya Bio and Hays Pharmaceuticals.
due to mergers and acquisitions
.

04 Kyushu Express

Jointown will achieve a total operating income of 122.
41 billion yuan in 2021, a year-on-year increase of 10.
4%; a net profit attributable to the parent of 2.
45 billion, a year-on-year decrease of 20.
4%; earnings per share will be 1.
27 yuan
.

In 2021, the company's operating costs will be 112.
57 billion, a year-on-year increase of 11.
5%, higher than the 10.
4% growth rate of operating income, resulting in a 0.
9% drop in gross profit margin
.
The period expense ratio was 6.
1%, which was little changed compared with last year
.

During the reporting period, the commercial distribution business of Jointown achieved sales of 104.
751 billion yuan, a year-on-year increase of 10.
70%, and gross profit of 7.
403 billion yuan, a year-on-year increase of 3.
93%
.
As of the end of the reporting period, the business covered 12,000 public hospitals, 190,000 grassroots and private hospitals, and 175,000 physical end customers such as chain and retail pharmacies; it covered 12 well-known e-commerce platforms such as JD.
com, Ali, Yihao, and Leyao
.

In addition, the company's general agent and general sales brand promotion business (including drugs and medical devices) achieved sales of 13.
010 billion yuan, a year-on-year increase of 11.
01%; gross profit was 1.
388 billion yuan, a year-on-year decrease of 12.
77%, mainly due to the higher gross profit during the reporting period.
Product sales are low
.
Among them, the general agent of drugs achieved sales of 4.
930 billion yuan, a year-on-year increase of 3.
68%.
The slowdown in growth was mainly affected by the decline in Kewei sales.
If the influence of Kewei was excluded, the sales increased by 31.
06% year-on-year; the general agent of equipment brand promotion business achieved sales of 80.
80% 100 million yuan, a year-on-year increase of 16.
02%, and a gross profit margin of 6.
91% (higher net profit margin)
.

Jointown's two strategic business segments—medical devices and traditional Chinese medicine—have achieved steady growth in performance
.
In 2021, the sales of Jointown’s medical device segment reached 24.
014 billion yuan, a year-on-year increase of 12.
55%, accounting for 19.
62% of the company’s overall sales; the sales of the traditional Chinese medicine segment continued to climb, with a year-on-year increase of 11.
59% to 3.
239 billion yuan
.
Among them, the traditional Chinese medicine industry achieved sales revenue of 1.
575 billion yuan, a year-on-year increase of 8.
42%; gross profit margin was 23.
89%, a year-on-year increase of 1.
03 percentage points
.

summary

Comprehensively comparing the financial reports of the four major pharmaceutical distribution giants, it can be seen that in 2021, the centralized procurement of pharmaceutical consumables will develop steadily towards normalization, the implementation of "dual channels", and the accelerated outflow of prescriptions will bring more or less benefits to enterprises
.
In addition, during the reporting period, the state issued a series of policies that are favorable to the development of pharmaceutical circulation, such as the "Guiding Opinions on Promoting the High-quality Development of the Pharmaceutical Circulation Industry during the 14th Five-Year Plan Period" and the "14th Five-Year Plan" Digital Economy Development Plan ", "The 14th Five-Year Plan for Cold Chain Logistics Development", etc.
, which have brought many positive impacts to the business development of distribution enterprises
.

In addition, the new crown vaccine, traditional Chinese medicine, Internet + big data, innovative drugs, etc.
are also the key layout directions and "good hearts" of the pharmaceutical distribution giants.
There are also companies that expand the company's business through acquisitions, such as Shanghai Pharmaceuticals, China Resources Pharmaceuticals.
.
.
Now Even in the future, differentiation and high-quality innovation are the key factors for companies to win in the competition
.

Among the four major pharmaceutical distribution giants in China, Sinopharm Holding, Shanghai Pharmaceuticals, and China Resources Pharma are state-owned holding companies, and Jointown is a private company
.

As of the date of publication, the latest share price of Sinopharm Holdings: HK$17.
260/share, with a total market value of HK$53.
863 billion; Shanghai Pharmaceuticals A share price: 17.
06 yuan/share, with a total market value of 63.
045 billion yuan, Hong Kong stock price: HK$12.
040/share, with a total market value of HK$44.
494 billion ; China Resources Pharmaceutical Hong Kong stock price: 3.
790 Hong Kong dollars / share, with a total market value of 23.
811 billion Hong Kong dollars; Jointown A share price: 10.
96 yuan / share, with a total market value of 20.
538 billion yuan
.

Source: Sinopharm Holding, Shanghai Pharmaceuticals, China Resources Pharma, Jointown 2021 financial reports