▍ Source/Cyber blue
▍ Author/Koharu
Another pharmaceutical company, the chairman resigned
On February 25, Jiaying Pharmaceutical issued an announcement that it had received a written resignation report submitted by Mr. Chen Jianning, the chairman of the company.
According to the announcement, Mr. Chen Jianning resigned as a non-independent director and chairman of the fifth board of directors of the company for personal reasons, and the resignation report took effect when it was delivered to the board of directors, Mr. Chen Jianning no longer served as a director and chairman of the board of directors of the company since February 25, 2021, and because Mr. Chen Jianning no longer held the position of director of the company.
According to the company's official website, Guangdong Jiaying Pharmaceutical Co., Ltd. is a pharmaceutical enterprise integrating R&D, production and sales, with a total of more than 70 drug varieties in 5 dosage forms, mainly involving throat, cold, orthopedic, rheumatic proprietary Chinese medicine. The main products are double throat wind dispersion, heavy sensor spirit tablets, bone seven-cent tablets (capsules), wind circulation tablets, menstrual blood circulation tablets, etc.
1
Performance continued to decline
In recent years, the performance of Jiaying Pharmaceutical has continued to decline.
According to the financial report data of Jiaying Pharmaceutical, from 2014 to 2018, the net profit of Jiaying Pharmaceutical fell from 73.65 million yuan to 35.88 million yuan, of which the net profit between 2014 and 2017 fell by 47%, 9.9%, 17% and 489% respectively.
According to the analysis, this is due to the impact of the decline in the performance of the subsidiary, Sands Pharmaceuticals, which is the main performance support.
Between 2009 and 2012, Sands Pharmaceutical's contribution to Jiaying Pharmaceutical's net profit reached 37.36%, 78%, 108.5% and 245.2%, respectively. By 2013, Sands Pharmaceuticals became a wholly owned subsidiary of Jiaying Pharmaceuticals. From 2014 to 2019, Sands Pharmaceutical's net profit was higher than that of Jiaying Pharmaceutical.
According to the company's financial report, during the period from 2014 to 2018, the net profit of Sands Pharmaceutical fell from 69.65 million yuan to 43.96 million yuan, showing an overall downward trend, during which the net profit in 2016 and 2017 decreased by 16.12% and 42.15% year-on-year to 61.83 million yuan and 35.77 million yuan respectively. This change directly affects the financial report data of Jiaying Pharmaceutical.
2
Actively seek transformation
It is understood that before Chen Jianning became the chairman of Jiaying Pharmaceutical in 2018, most of his resume was related to "investment and wealth management".
Chen Jianning graduated from Southwestern University of Finance and Economics with a master's degree in economics and served as the director of the Financial Research Institute of the Head Office of industrial and commercial banking of China, the senior manager of the investment banking department and research and development department of China Huarong Asset Management Company, the deputy general manager of the Beijing representative office of Lianhua Financial Holding Company, the director of Sichuan Juxin Development Equity Investment Fund Management Co., Ltd., and the executive director of Zoomlion Jixin Investment Management Co., Ltd.
After taking office, Jiaying Pharmaceutical has made a lot of efforts in investment.
On the day the new chairman took office, Jiaying Pharmaceutical issued an announcement that it intends to establish a wholly-owned subsidiary, Shenzhen Jiayingda Health Management Co., Ltd. On January 14, 2019, Jiaying Pharmaceutical announced that it intends to establish three companies, including Guangdong Jiaying Pharmaceutical Co., Ltd., Hong Kong Jiaying International Co., Ltd., and Guangdong Jiaying Financial Leasing Co., Ltd. One of the most important businesses is the layout of the medical field.
In fact, in the context of medical reform, most pharmaceutical companies have laid out medical services. However, the hospital assets previously acquired by listed pharmaceutical companies have all had problems, among which the more common is that the hospital performance commitment cannot be completed, and some of the underlying assets even have problems.
For example, in 2018, China Resources listed and transferred Shenzhen Sanjiu Hospital; Yibai Pharmaceutical transferred control of Huainan Chaoyang Hospital; in January this year, Xianju Pharmaceutical transferred Hum Ha Stomatological Hospital...
3
Challenges and opportunities coexist
In 2019, Jiaying Pharmaceutical's net profit was a loss, and Jiaying Pharmaceutical explained that this was due to the impact of industry policies such as the two-invoice system and volume procurement in 2019, and the market competition intensified.
However, due to the impact of the new crown pneumonia epidemic, the company's product sales structure has changed, and the proportion of sales of some lower gross profit margin varieties related to the epidemic has increased. In the first quarter, operating income increased by 4.6137 million yuan year-on-year, and operating costs increased by 8.2362 million yuan year-on-year.
On January 29, Jiaying Pharmaceutical disclosed its performance forecast, and the company expects to achieve a net profit attributable to the mother of 17.6 million yuan – 26.3 million yuan in 2020, compared with a loss of 122 million yuan in the same period last year. During the reporting period, the company's production and operation were normal, the operating income increased compared with the same period of the previous year, and the expenses during the period decreased.
It can be seen that the performance crisis of Jiaying Pharmaceutical has eased.
Affected by the epidemic and policies, pharmaceutical companies are facing many challenges, but there are also unlimited opportunities. What new developments Jiaying Pharmaceutical will usher in after the change of coach, we will wait and see.