Germany Exhibition Health (000813): Head Card Products Revenue Decline, Overweight Industrial Hemp Can Solve Difficulties?

Under the attack of the policy, the product of "healthy" head card "Ai Le" seems to have been hard to find high margin.

The industrial cannabis concept unit (000813.SZ) has been tested again.

In March 9th, the German exhibition health disclosure and the Han Zhong Business Management Group Limited (hereinafter referred to as "Han Zhong Group"), hemp Investment Group Limited (hereinafter referred to as "hemp investment") on the cannabis health industry cooperation signed a framework agreement.

In April 27th, Dezhou exhibition announced the 2018 annual report on revenue and sales expenses and the first quarter of 2019. In May 21st, the German health exhibition received a letter from the Shenzhen Stock Exchange about the financial problems of the cannabis cooperation and annual report. At that time, the share price was down, and the healthy share price of Germany exhibition had dropped to 8.04 yuan as of May 31st.

Compared with the high point of 14.25 yuan in March, it has lost more than 40%.

Mistake!

No file name was specified.

Prior to this, de exhibition health was popular among investors because of its generic drug "ah le".

Public information shows that "alle" is the first generic drug in the country for the Pfizer similar lipid-lowering drug Lipitor (atorvastatin calcium), which has been sold in the world from 1996 to 2017, and its total sales volume in the world is about 150 billion US dollars.

In the domestic market, "ah le" has maintained a market share of about 9%, and has third stable anti lipid drugs.

As of December 31, 2018, 10mg sold 191 million boxes a year.

But in recent years, with the implementation of the national "4+7" procurement policy, the industry pattern has changed rapidly.

"Ah le" has also been affected.

The latest announcement of German exhibition health shows that sales in the first quarter of 2019 decreased by 40.27% compared with the same period last year, while sales unit price dropped by 35.38% and gross margin decreased by 4.98%.

It seems that the crisis is imminent, and Germany's health has begun this year to increase the scope of industrial hemp and set up a marijuana pharmaceutical company.

However, domestic policies have not approved that industrial hemp can be put into medical use.

In response to the above questions, the investor net wrote a letter to German exhibition health. At the end of the press release, the other side did not comment.

Public information shows that the German exhibition health is Tianshan textile and its business is mainly wool textile.

In 2013, Tianshan textile implements asset reorganization and new mining industry. In 2016, the company reorganized the original textile and mining assets, and put it into 100% stake in Jialin pharmaceutical industry. It entered into the pharmaceutical industry and became a pharmaceutical listed company.

After its pformation into a pharmaceutical enterprise, Jialin pharmaceutical company has become the source of all the revenue of the health exhibition.

At present, the company is mainly engaged in cardiovascular and cerebrovascular drugs and antitumor drugs.

The "ah le" mentioned above is produced by the subsidiary company.

According to the financial report, in 2016 -2018, the revenue of Jialin pharmaceutical was 1 billion 400 million yuan, 2 billion 200 million yuan and 3 billion 200 million yuan respectively, representing an increase of 22%, 53% and 48% compared with that of the previous year. Net profit was 600 million yuan, 700 million yuan and 900 million yuan respectively, corresponding to 30%, 20%, and 20% over the same period.

However, the growth did not last. In the first quarter of 2019, the first decline in health sales and net profit was 400 million yuan, 100 million yuan, representing a decrease of 38% and 32% over the same period.

In view of the reasons for the decline in performance, the German development health explanation said that due to the formal implementation of the policy of "4+7 City drug centralized procurement", the sales price of "ah le" decreased significantly by 83% in the 11 cities that were concentrated in the pilot purchase.

According to public information, "ah le" won the bid in December 17, 2018.

According to public information, the "4+7 City drug centralized procurement" is a pilot project in Beijing, Tianjin, Shanghai, Chongqing, 4 municipalities and Guangzhou, Shenzhen, Xiamen and other 7 cities, through the consistency evaluation of the centralized procurement and use of drugs. The specific content is to integrate the three parts of the formulation of medical insurance drug list, the payment of medical insurance payment and the negotiation of drug purchase price. The centralized procurement of drugs is conducted in the state as a unit, and the average price of the winning drugs has reached 52% under the implementation of the policy.

In fact, the development of health is not the only drug company that is subject to policy fluctuations. The investor net has found that since the implementation of the policy, most of the successful and unsuccessful pharmaceutical companies have been sold.

Among them, China's biopharmaceutical (01177.HK) anti hepatitis B drugs were awarded the price of 93% after the price cut, and the share price fell by about 30%.

After 600276.SH failed to win the bid, its share price fell more than 20%, and its market value dropped from 200 billion yuan to 300 billion yuan.

People in the industry said to investors net that at present, domestic pharmaceutical companies rely mainly on highly profitable generic drugs to support the development of new drugs.

When the price of the generic drugs is cut down and the revenue is compressed, it will cause the market to worry about whether the income will cover the R & D investment.

On the other hand, when the high profit margins of generic drugs are not there, they will force pharmaceutical companies to pform the innovative drugs with higher profits.

Gu Yongtao, an analyst at XinDa securities, said, "for the imitation of pharmaceutical companies, the future may fall back to the valuation level of the manufacturing industry, and the new drugs are expected to get higher valuations."

According to public information, the research and development of Dezhou health is based on the strategy of "imitation and creation, imitation and creation", that is, generic drugs are mainly developed independently, and innovative drugs are mainly externally introduced.

In the 1 quarter of 2019, the R & D investment in the 11 million quarter of the year decreased by 47% compared with the same period last year.

In the 2018 annual report, Tak health has indicated that it will continue to vigorously promote R & D investment.

In the meantime, the development of health care is also opening the new track, which is the field of industrial hemp.

In March 9th, the German Health Exhibition announced that it signed the "cross border agreement on equity purchase and comprehensive strategic cooperation" (hereinafter referred to as the framework agreement) with Han Zhong Group and hemp investment. It will buy a 25% stake in hemp investment held by Han Zhong Group at a price of 400 million yuan. After the agreement is reached, the two sides will carry out deep cooperation on the health industry of cannabis.

In addition, de chin health will pay 70 million yuan and 30 million yuan to the Han Zhong Group in March 9, 2019 and March 11, 2019 respectively, and the remaining 300 million yuan will be used and managed by the two sides of the bank using the bank co management account.

The Shenzhen Stock Exchange has inquired about the cooperation to the Deutsche exhibition and asked for a description of the payment time and storage method of the remaining 300 million sincerity funds.

Regarding this, Germany exhibition health responded that the company has paid 150 million yuan in April 9th, and has paid 250 million yuan.

For the remaining 150 million yuan payment arrangements, Germany exhibition health did not respond.

Shortly after the signing of the framework agreement, he arranged a healthy layout of the cannabis market again. In May 8th, it announced that it had been working with hemp Investment Company Han Yi Biotechnology (Beijing) Co., Ltd. and Miu Huanhui, a natural person, joint venture Deyi Pharmaceutical Co., Ltd. to promote the Application Layout of the company in the field of industrial hemp, carry out research on cannabinoid compounds, and promote the role of CBD (hemp two phenol) in the treatment of rare diseases and cancer.

On the day of the announcement, the German exhibition sealed the health limit.

However, it is noteworthy that, according to the notice issued by the office of the National Narcotics Control Commission on strengthening industrial marijuana control work recently, China's industrial hemp is limited to fiber and seeds, and has never been approved for use in medicine and food.