Germany Exhibition Health (000813): Net Profit Decreased 45.48% To 242 Million Yuan In The First Half Year.

000813.SZ released its semi annual report in 2019, operating income of about 922 million yuan, down 44.50% compared to the same period last year. Net profit attributable to shareholders of listed companies was about 242 million yuan, down 45.48% compared to the same period last year. Net profit of non shareholders who were attributable to the shareholders of listed companies was about 231 million yuan, down 47.64% compared to the same period last year, and the basic earnings per share were 0.1091 yuan.

The first half of 2019 is a critical period to deepen the implementation of health care reform policy. The first batch of "4+7" procurement policy began to be implemented. According to the new market and policy environment, the board of directors and management of the company take the initiative to plan for the layout, optimize and adjust the company's development strategy in a timely manner, strive to promote intensive farming, reduce the cost and increase efficiency, increase the marketing and promotion efforts in the non centralized mining area, strengthen the construction of the core R & D capability of the company, actively promote the layout of the new business, and effectively promote the implementation of the company's new strategy through the endogenous growth and the extensive development.

Sales situation: in the first half of 2019, the company launched an agent promotion mode in addition to centralized purchasing with quantity. In March 2019, the "4+7" quantity purchase began to be implemented step by step. In June 2019, Fujian province began implementing the policy of quantity purchasing. With the implementation of the volume purchase promotion, during the reporting period, the flagship product "ah le" increased significantly in the 11 pilot cities with volume purchase. According to the data of the Chinese Pharmaceutical Association, in May 2019, the market share of all products, including atorvastatin, rosuvastatin and pavastatin, was significantly increased in the 1300 main sample hospitals in the country. The market share of all drugs in the drug market rose significantly in May 2019. The market share increased by 10 percentage points in May 2019 compared with that in January 2019, ranking second in all three statins. The total market share of the three drugs was second. Especially in the sample hospitals of 11 pilot cities, the market share of "ah le" increased significantly, occupying close to 68%, which has surpassed Lipitor as the largest brand of atorvastatin market share. However, there is a big difference between the "volume area" and "non quantity area", which has a great impact on the overall sales volume and sales volume of the company. In the context of a sharp reduction in the price of drugs, the stocking volume of dealers who did not carry out the quantity purchase was greatly reduced, which resulted in a decrease in sales volume to a certain extent.

Market promotion: during the reporting period, the company actively adjusts the promotion strategy according to the market environment changes. On the basis of the original promotion channels, it promotes the promotion of grass-roots hospitals by improving the means of popularization, and improves the frequency and quality of training at the grass-roots level. Continue to establish the concept of "ah Le quality", continue to use scientific research + academic cooperation, build medical education platform, support the form of academic promotion, so that the brand influence of companies and products will further enhance in the minds of doctors and pharmacists.

Production situation: in the first half of 2019, according to market demand, the company added 28 new packages per box during the reporting period. In addition, during the reporting period, the company successfully completed the technical transformation plan for increasing production capacity of the raw material drug production line of Tianjin Wuqing subsidiary. During the reporting period, the finished product rate of the main variety "ah le" was 98.72%, 0.70% higher than last year, and the comprehensive yield reached 97.22%, an increase of 0.7% over last year. During the reporting period, the company strictly adheres to the quality of production and persists in implementing quality and safety, so as to achieve zero safety incidents during the reporting period.

Environmental protection situation: during the reporting period, the company strictly implements the responsibility of safety and environmental protection production. According to the relevant requirements and implementation standards of the Beijing Environmental Protection Bureau, it establishes the record of emergency plans for environmental emergencies; strictly implements the "three wastes" treatment according to the requirements; the soil testing of the plant area of the company is consistent with the environmental protection standards; the transformation of the canteen oil smoke system is implemented; after the transformation, the emission concentration reaches the latest standard of Beijing; the on-line monitoring project of the sewage station is implemented, and the real-time online monitoring of sewage discharge is realized.

During the reporting period, in order to coordinate the procurement and supply with quantity, the company strictly followed the requirements of the regulatory authorities, and implemented the national drug administration laws and regulations, and further strengthened the product quality management. Through strengthening supplier management, production process control, change control and deviation handling, product stability investigation, and comprehensively implementing the quality risk management system, a series of effective measures were carried out to effectively ensure the quality and safety of the drugs. During the reporting period, the quality of various products of the company increased steadily, no illegal production, no quality accidents occurred, and the market pass rate was 100%.