Germany Exhibition Health (000813):2019 Performance Exceeded Expectations

Despite the downward pressure on the sales price of most pharmaceutical companies, but through the channel reform, Germany exhibition health (000813) performance in 2019 still exceeded expectations. At the same time, with the active promotion of extensive M & A in the period, the company has broken through the single bottleneck of products and realized the all-round development pattern.

Channel reform supports performance exceeding expectations

In the evening of April 28th, the German Health Exhibition released 2019 annual report shows that the company achieved operating income of 1 billion 775 million yuan during the period, down 46.06% compared with the same period last year, and net profit was 337 million yuan, down 63.75% compared with the same period last year. In a quarterly report released on the same day in 2020, the company achieved operating income and net profit of 470 million yuan and 91 million 560 thousand yuan respectively.

In 2019, the pharmaceutical reform was launched in a comprehensive way. The first batch of "4+7" procurement policy began to be implemented on the ground. With the volume of procurement being fully expanded, a series of policies such as "healthy China action" were introduced to test the performance of pharmaceutical companies. However, in this context, Germany exhibition health has adjusted the 2019 performance expectations, net profit from 210 million yuan to 315 million yuan interval, increased to 270 million yuan to 405 million yuan after adjustment, showing a super expected performance.

In 2019, the company's main product, "Alai", was the first one to adopt the product of "atorvastatin calcium consistency evaluation" and the successful bid winning "4+7" urban belt purchase.

During the period, Germany's health performance exceeded expectations or benefited from the timely adjustment of business strategy.

According to the company's previous announcement, since 2019, the 12 German exhibition has developed the retail terminal sales channel healthfully, which has been recognized by the market due to the good effect of the company's products, and the drug users have a high degree of loyalty. It is reported that in 2019, in addition to concentrating on quantity purchase, Jialin pharmaceutical company implemented a marketing mode of distributor promotion system, and implemented the production mode of "selling products". The production departments (subordinate companies) work out production plans according to approved sales plans, and production workshops are manufactured according to production plans.

At the same time, in response to changes in the industry policy environment and possible future trends, the company promptly adjusted marketing strategies, increased training programs, strengthened grass-roots hospital coverage, and cooperated with authoritative academic institutions in China, and received the recognition and support of many experts, effectively implementing the brand propaganda and product knowledge dissemination of the company, and enhancing the brand influence.

Promoting extensive development to form an all directional layout.

Adapting to market changes and adjusting channels, de exhibition health has also actively promoted mergers and acquisitions since 2019, and has accumulated a number of business segments with prospects for development.

In April 24th, German exhibition health just announced the completion of the Beijing Changjiang Mai Pharmaceutical Technology Co., Ltd. (hereinafter referred to as the "Yangtze River pulse") acquisition of the relevant industrial and commercial registration procedures. Earlier, the company announced that it would take 770 million yuan to acquire 70% stake in the Yangtze River, held by Dai Yanzhen, a natural person, and the Yangtze River promised that the net profit from 2020 to 2022 would not be less than 600 million yuan.

Public information shows that the Yangtze River is China's first professional and high-tech enterprise in all fields and all-round development of "big health". Affected by the global spread of the new crown pneumonia since the Spring Festival of 2020, the "big health" industry is once again widely concerned by the market. According to media reports, during the epidemic, the Yangtze River has used the public welfare way to organize the disinfection and protection work of the foci with the government of Wuhan. At present, the company's Jian Ji Su brand disinfectant has passed the double certification of FDA and CE of the European Union, which means that the market sales area of the company will be further extended to Europe and America.

In the field of big health, Germany exhibition health has also been in depth layout of industrial hemp products in recent years. The company has been working with Hannah group's Han Yi Biotechnology (Beijing) Co., Ltd. to set up Deyi Pharmaceutical Co., Ltd. and maily wa food and Beverage Co., Ltd., through the development of new cannabinoid compounds, to promote the application of CBD in the treatment of diseases such as rare diseases and cancer, which seriously affect human health. Meanwhile, in the field of fast food products, the company's "cannabis beverage" products have been put on the market.

The company said that during the reporting period, Germany will promote health and speed up the layout of new businesses, and lay emphasis on the layout of industrial cannabis cultivation, application and other related fields. The layout of cardiovascular high-end screening and other related fields will help the company expand product pipelines, open up new business areas and create new profit growth points. As of the end of the reporting period, the total assets of Germany exhibition were 5 billion 928 million yuan, an increase of 0.1% over the same period last year, and the asset liability ratio was only 5.33%, showing a healthy development trend.