Germany Exhibition Health (000813): Annual Performance Triple Increase, 2019 Force Diversification Layout

In the evening of April 26th, German exhibition health (000813) released 2018 earnings report, during the period, the company achieved operating income of 3 billion 291 million yuan, an increase of 48.22% over the same period, and net profit of 931 million yuan, an increase of 16.73% over the same period.

Annual performance triple increase

In 2016, a major asset restructuring was carried out, and all assets, liabilities and personnel of the original wool textile and mining industry were put into the 100% stake of Jialin pharmaceutical. After the successful pformation of the company, the company successfully entered the pharmaceutical industry and achieved an annual growth of three consecutive years.

In 2016 and 2017, the company achieved net profit of 662 million yuan and 797 million yuan respectively, representing an increase of 29.94% and 20.48% respectively over the same period last year.

Public information shows that the company is mainly engaged in R & D, production and sales of cardiovascular and cerebrovascular drugs. The drugs are being produced and sold, including 10mg, 20mg, Trimetazidine Hydrochloride Capsules, fanle tablet, Azathioprine Tablets two, Azathioprine Tablets, Amiodarone Hydrochloride Tablets, Hydroxycarbamide Tablets and Colchicine Tablets.

Jialin pharmaceutical has been ranked the leading position of domestic medicine in the market for many years. The flagship product, "Alai", is the first product in China to pass the atorvastatin calcium consistency evaluation.

According to China Pharmaceutical Association business data, "ah le" ranked third in the field of lipid-lowering drugs, ranked second in the Atorvastatin category, and ranked first in the domestic lipid-lowering drugs.

In 2018, the deepening reform of the pharmaceutical industry continued to push forward. Health care reform continued to deepen the direction of lowering drug prices, controlling costs, strengthening supervision and ensuring quality, and promoted the implementation of the policy of two votes system, consistency evaluation, traceability of drug information, and "4+7" pilot procurement. It promoted the reshuffle of generic pharmaceutical industry, raised higher requirements for product quality and safety from the source of research and production, and guided the high level innovation and high quality development of the pharmaceutical industry.

In the context of changes in the policy environment of the industry, in 2018, the German flagship product "alle" became the first product of atorvastatin calcium that was consistently evaluated and was selected as the national directory of basic drugs.

According to the relevant policies of the state, through the consistent evaluation of the drug varieties, it will be properly supported in the aspects of drug procurement, medical insurance payment and so on. At the end of 2018, "ah le" successfully won the first round of "4+7" purchase with quantity; "ah le" was selected as the national directory of basic drugs, which opened the way for the products to enter the grass-roots drug market, and activated the primary medical market.

According to Mickey net's 2017 Research Report on hypolipidemic drugs market, the market scale of lipid lowering drugs in the market of public medical institutions in China in 2017 was 22 billion 600 million yuan, and sales revenue increased by 16.7% over the same period last year, the growth rate was 1.68 percentage points higher than that in 2016.

In 2017, the growth rate of lipid-lowering drugs in public medical institutions (16.7%) was higher than that in the overall chemical market (8.79%).

As for the reasons for the sustained growth of the 2018 performance, the German exhibition Health said that in 2018, the company continued to implement the agent promotion mode. With the further development of the "two votes" policy, the company's direct account dealers increased significantly, and the end of the reporting period reached more than 400.

During the reporting period, the company's flagship product "ah le" achieved 191 million boxes of sales in the year (according to 10mg).

In the aspect of marketing, in 2018, the company continued to further promote the concept of "ah Le quality", and organized a total of over 1000 academic conferences in the related fields, including the summit forum, the basic level doctor training program, the pharmaceutical inspection tour and so on, involving more than 20 thousand leading members of the hospital level, Department of Cardiology, neurology, pharmacy and so on.

During the period, the total storage volume of the company was increased by 13.69% over the same period last year, and the finished product rate was 98.02%, up 0.46% from the same period last year, and the comprehensive yield reached 95.73%, up 1.57% from the same period last year.

By optimizing the production process, the output of automatic line packaging increased by 7.31% over the same period last year.

2019 diversified efforts

On the 26 day, a quarterly report released on 2019 by health exhibition showed that during the period, the company achieved operating income of 481 million yuan, down 38.92% compared with the same period last year, and net profit of 121 million yuan, down 32.09% from the same period last year.

For the development goals in 2019, Tak Health said it will continue to promote the two wheel drive strategy of "industry plus capital". Through the opportunity brought by quantity purchase, we will continue to consolidate our business and promote further efforts in the field of cardiovascular and cerebrovascular diseases to create cash cow products and continuously enrich the performance of listed companies.

We should accelerate the industrial layout through capital operation, actively implement M & a strategy to achieve rapid expansion, increase R & D investment, enrich products pipeline in the field of anti-cancer, diabetes, cancer pain, rare diseases and fast food products, create new profit growth points, and achieve diversified development.

Germany exhibition Health said that the current volume of procurement is only implemented in 11 cities, but it is expected that the volume of procurement will soon be promoted in other regions.

2019 is the key year for the company to expand the hospital market in accordance with the trend of national policies.

In 2019, the company will strive to seize the hospital market, ensure the quantity of public medicine and improve the share of public pharmaceutical market.

At the same time, the company will further expand the company's business layout according to the development strategy, actively and vigorously promote the development of new business such as hemp, and will continue to screen high-quality companies or projects, and expand new businesses through mergers and acquisitions, investment and other capital operations.

On the evening of March 8th, the German exhibition health bulletin said that the company signed a framework agreement on equity purchase and comprehensive strategic cooperation between the German exhibition great health Limited by Share Ltd and Han Zhong Business Management Group Co., Ltd. and HMA Investment Group Co., Ltd. (hereinafter referred to as the framework agreement) on the same day with Han Zhong Business Management Group Limited (hereinafter referred to as "Han Zhong Group") and hemp investment.

According to the framework agreement, the two sides agreed that the Han nationality group would pledge the 25% stake in the HMA investment company to the German fair.

The German exhibition health will pay 400 million yuan in cooperation with Han Zhong Group after the completion of the equity pledge procedure of Han Ma investment company.

The company said that due to its bright prospects for the health industry, it would like to conduct further consultations with Han Zhong Group and hemp on deep cooperation in the health industry of cannabis.

The two sides agreed that a comprehensive strategic partnership will be established to achieve in-depth cooperation in the health industry of cannabis.

For the purpose of achieving strategic cooperation, the cooperation method includes, but is not limited to, Party A's equity purchase of the targeted company, Party A's capital increase, Party A's participation in the establishment of a new company, Party A's participation in the establishment of an investment fund, the pfer of patents or know-how to Party A, the pfer of assets to Party A, and Party A's participation in cooperative research and development.

Since then, in the evening of April 8th, the German exhibition Health announced further that the company intends to jointly invest with Hanyi Biotechnology (Beijing) Limited (hereinafter referred to as Han Yi BIE) and Miu Huanhui, a natural person, to set up Han de (or De Yi) Pharmaceutical Co., Ltd. or Yunnan hander (or Deyi) industrial hemp Pharmaceutical Co., Ltd. (provisional name, specifically the name of the company approved by the company registration authority, hereinafter referred to as the "joint venture").

The company said that this external investment is the implementation of the company's future development strategy, and promote the layout of the company in the field of industrial hemp. Through the development of new cannabinoid compounds research, we will promote the application of CBD (cannabidiol, that is, hemp two phenol) in the treatment of rare diseases and cancer and other serious diseases that seriously affect human health, and research and develop new products.