Recently, Hubei Guangji Pharmaceutical Co.Ltd(000952) ( Hubei Guangji Pharmaceutical Co.Ltd(000952) ), the world’s major supplier of vitamin B2, released its annual report for 2021. In 2021, the company achieved an operating revenue of 837 million yuan and a net profit of 110 million yuan, with a significant year-on-year increase of 21.64% and 47.5% respectively.
Hubei Guangji Pharmaceutical Co.Ltd(000952) chairman Ruan Shu said that such achievements were mainly due to the measures taken by the company to vigorously promote reform and innovation, implement equity incentive plan, strengthen independent research and development, speed up product layout, strengthen external cooperation and broaden sales channels. In the future, the company will not be limited to being a “vitamin enterprise”, but will, on the basis of its existing business, closely focus on the core technical advantages of biological fermentation, adhere to the in-depth development strategy of “API + Preparation + great health”, and develop the company into a leading enterprise of biological fermentation technology with world influence and China’s benchmark through state-owned enterprise reform, endogenous development, investment and M & A.
Hubei Guangji Pharmaceutical Co.Ltd(000952) is mainly engaged in the R & D, production and sales of vitamin raw materials and pharmaceutical preparations. It has jurisdiction over three production bases: Wuxue, Mengzhou and Xianning. Its main products include vitamin B2 and B6 raw material series products, as well as oral solid preparations, large infusion and other preparation series products. At present, Hubei Guangji Pharmaceutical Co.Ltd(000952) has an annual production capacity of more than 4000 tons of vitamin B2 and is the world’s leading supplier of vitamin B2 products.
Hubei Guangji Pharmaceutical Co.Ltd(000952) annual report revealed that in 2021, the price of vitamin B2 was at a historically low level, hovering below 100 yuan / kg for a long time, while the price of corn starch, the main raw material, increased significantly. Ruan Shu said that in the increasingly competitive market, the company first implemented a series of measures to gather people’s hearts and activate power by deeply promoting the reform of state-owned enterprises. For example, in order to further attract core talents, strengthen R & D and innovation and expand sales channels, last year Hubei Guangji Pharmaceutical Co.Ltd(000952) built “Wuhan Wuxue” dual headquarters and completed the construction of Wuhan management headquarters in Optics Valley, thus optimizing the company’s organizational structure system; In order to enhance market competitiveness, we implemented three system reforms, completed the competitive employment of senior executives in accordance with the principles of “marketization of personnel selection and employment, contracting of performance appraisal, differentiation of salary distribution and institutionalization of personnel withdrawal”, established the performance appraisal system of “high goal, strict appraisal and strong incentive” and differentiated salary distribution system, and realized “the same increase and decrease of enterprise benefits, post performance and personal income”; In order to mobilize the enthusiasm of the operation and management team and core backbones, the “2021 restricted stock incentive plan” was implemented, granting 8.649 million restricted shares to 118 eligible incentive objects.
Behind the contrarian growth, Hubei Guangji Pharmaceutical Co.Ltd(000952) has done a lot of work in product, sales, process, R & D and other aspects. “Vitamins mainly include feed grade, food grade, pharmaceutical grade series products and pharmaceutical preparations. Last year, we made great efforts to broaden the sales channels of high value-added products such as pharmaceutical grade and pharmaceutical preparations, so as to realize the profit and double income of high value-added products.” Ruan Shu said.
Among them, the sales of pharmaceutical grade and pharmaceutical preparations increased by more than 50% year-on-year; The sales volume of high content 98% vitamin B2 and riboflavin sodium phosphate of the Ministry of internal trade reached the highest in history; The sales volume of high content vitamin B2 of the Ministry of foreign trade increased by 10.9% year-on-year. From the perspective of product contribution income, the proportion of raw material series products in total revenue has decreased from 78.46% last year to 68.17% last year; The proportion of preparation series and other products in total revenue increased from 21.54% last year to 31.83% last year.
It is also one of the measures of Hubei Guangji Pharmaceutical Co.Ltd(000952) reducing cost and increasing efficiency to continuously innovate the production process to make the product price more competitive. Last year, through process improvement, the fermentation potency and extraction speed of the company continued to improve. Among them, the output of finished products in a single can of vitamin B2 reached a record high, and the tests of 100g and kg of vitamin B6 were successfully carried out.
Hubei Guangji Pharmaceutical Co.Ltd(000952) the research and development of new products are also advancing. The company started with vitamin business and has gradually established the product strategy of in-depth development of “API + Preparation + great health” as a long industrial chain.
In terms of API, actively build a product cluster characterized by B vitamins: promote the re registration of EU and realize the sales of high-quality vitamin B2; Accelerate the extension and development of vitamin B6 industrial chain and promote the industrial production of pyridoxal phosphate; Accelerate the construction of the comprehensive utilization project of vitamin B12 with an annual output of 1000 tons, and promote the development of food grade and pharmaceutical grade vitamin B12.
In terms of pharmaceutical preparations and general health, tinidazole tablets and other products were evaluated for consistency, and 11 new product development projects such as moxifloxacin hydrochloride were approved; We have independently developed a variety of vitamin tablet health products and cooperated in the development of high value-added dietary supplement products.
Ruan Shu, chairman of Hubei Guangji Pharmaceutical Co.Ltd(000952) introduced that since taking over Hubei Guangji Pharmaceutical Co.Ltd(000952) in 2014, long term investment group has supported the development of the company through financial support for many times. With the support of long-term investment group, the company will unswervingly adhere to the development goal of the 14th five year plan this year. Through the in-depth development strategy of “API + Preparation + great health”, the company will continue to improve its overall competitiveness by deepening the reform of state-owned enterprises, promoting R & D and innovation, expanding sales channels, promoting investment and M & A. the company will develop into a leading enterprise of biological fermentation technology with world influence and China’s benchmark.
