Dongya Pharmaceutical: Boryeong Capital surveyed our company on November 19

On November 22, 2021, Dongya Pharmaceutical (605177) announced that Baoning Capital Huang Jing surveyed our company on November 19, 2021.

The main contents of this survey are:

Q: What is the company's market positioning in the industry?

A: Since its inception, the company has gone through nearly 30 years of struggle. In the past 30 years, the company has always adhered to the development concept of green environmental protection, quality first, scientific and technological innovation, safety and efficiency, honesty and trustworthiness, and grateful returns, and has broken out a development path suitable for itself. The company has won the titles of "National High-tech Enterprise", "Zhejiang Patent Demonstration Enterprise", "Taizhou Top Ten Management Innovation Enterprises" and other titles, and has undertaken the National Torch Plan project for many times. With high-quality products and strict quality control system, many products have passed certifications in Japan, South Korea and the European Union. At the same time, it has established long-term cooperative relations with more than ten countries and regions such as Europe, America and Southeast Asia. Product sales network throughout the world more than 50 countries and regions, in the international and domestic markets enjoy a certain degree of visibility and reputation

Q: What is the company's main product?

A: The company is mainly engaged in the research and development, production and sales of chemical APIs and pharmaceutical intermediates. The products mainly cover antibacterial drugs (β-lactams and quinolones), anticholine and synthetic antispasmodic drugs (trimebutine maleate), antifungal drugs for skin and other drug areas.

Q: What are the company's location advantages?

A: The company is located in Taizhou City, a chemical API base in Zhejiang Province, which is a national-level chemical API production base, enabling the company to enjoy the effects of more industrial clusters, a perfect public service system such as public works, transportation, and environmental protection governance in the region, and complete supporting industries such as fine chemical raw materials and pharmaceutical equipment.

Q: What factors affect the current operating conditions?

A: 1: Mainly due to the impact of the new crown epidemic, the market demand for some products has decreased; 2: the production and sales of some products have declined due to the suspension and expansion of production lines; please pay attention to the regular reports disclosed by the company for the specific operation of the company.

Q: How is the company's investment this year?

A: 1. Purchase about 120 mu of land use rights through its wholly-owned subsidiary Zhejiang Shanyuan Pharmaceutical Co., Ltd. and invest in the construction of a comprehensive production base project for the big health industry; 2. Increase investment in Zhejiang Dongbang Pharmaceutical Co., Ltd., a wholly-owned subsidiary, to carry out technological transformation and expand production capacity. The above investment is in line with the medium- and long-term development strategy of "taking APIs as the center, reaching forward and extending backwards" formulated by the company, that is, the company continues to stabilize and strengthen the competitiveness of the API market, continuously increases the investment in generic drugs and innovative drugs, and gradually extends the development strategy in the direction of chemical materials and pharmaceutical preparations. In order to further enhance the company's core competitiveness, open up new markets, cultivate new businesses, improve the company's profitability, do a good job of reserves and consolidate the foundation. The specific investment situation of the company shall be subject to the relevant announcement disclosed by the company.

Q: What is the company's overseas market situation?

A: The company's main API products have passed the European Union (EDQM), Japan's Ministry of Health and Welfare (PMDA), South Korea (MFDS), India and other countries and regions of the registration certification, with high-quality products and strict quality control system, has been in Europe, Japan, South Korea and other standardized markets to enjoy a certain degree of visibility. At the same time, it has passed the audit of many well-known international pharmaceutical companies and become their suppliers, ensuring that products can enter the international high-end market and the customer base is expanding.

Q: Do policies such as dual control have an impact on the company?

A: The current industrial policies such as power curtailment and dual control of energy consumption have a certain impact on the normal production and operation of enterprises, and the company will actively take various countermeasures to reduce the adverse impact caused by industrial policies.

The main business of Dongya Pharmaceutical: research and development, production and sales of chemical RAW materials and pharmaceutical intermediates

According to the 2021 third quarter report of Dongya Pharmaceutical, the company's main revenue was 472 million yuan, down 30.26% year-on-year; the net profit attributable to the mother was 53.3528 million yuan, down 50.46% year-on-year; the deduction of non-net profit was 35.4609 million yuan, down 64.59% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 127 million yuan, down 25.38% year-on-year; the single-quarter net profit attributable to the mother was -4.7652 million yuan, down 122.03% year-on-year. Single-quarter deduction of non-net profit - 8.7217 million yuan, down 162.32% year-on-year; debt ratio of 21.61%, investment income of 4.7389 million yuan, financial expenses - 15.5217 million yuan, gross profit margin of 30.82%.

The unit has not had an institutional rating in the last 90 days. According to the Securities Star Valuation Analysis Tool, Dongya Pharmaceutical (605177) has a good company rating of 3 stars, a good price rating of 1.5 stars, and a comprehensive valuation rating of 2.5 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)