Securities code: China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) securities abbreviation: China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999)
China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999)
Record of investor relations activities
No.: 2022025
□ specific object research □ analyst meeting
Investor relations □ media interview √ performance communication meeting (teleconference)
Activity category □ press conference □ Roadshow
□ site visit □ others
Name of participating unit
Changxin fund, Taiping assets, Huaan Securities Co.Ltd(600909) , Cinda securities, Guosen Securities Co.Ltd(002736) , Ping An Securities and other securities and investment institutions
call
Analyst
And personnel name
Time: March 31 – April 1, 2022
Location: Comprehensive Office Center
The receptionist of a listed company surnamed securities affairs representative
name
Dear investors, Hello! First of all, I would like to report the company’s 2021 annual performance management to all investors
Management of relationship activities.
Main contents in the past year, the company actively responded to the changes of industrial policies and market environment, focused on the continuous innovation and transformation of its main business,
It is introduced that increasing R & D investment, improving intelligent manufacturing level and operation efficiency, and striving to achieve good growth of business performance.
Meanwhile, the company’s share price rose by 39.99% in 2021, outperforming the market. In 2021, the company achieved a revenue of 15.32 billion,
Year on year growth of 12.34%. Among them, CHC health consumer goods business achieved a revenue of 9.276 billion yuan, a year-on-year increase of 17.72%,
The revenue of prescription drug business was RMB 5.35 billion, with a year-on-year increase of 2.76%. The anti infection business was affected by policies such as limiting anti infection and centralized purchase. The business declined significantly last year, and other prescription drug businesses grew well. It is expected that the anti infection business will achieve restorative growth driven by new products this year. In 2021, the company realized a net profit attributable to shareholders of listed companies of 2.047 billion yuan, with a year-on-year increase of 28.13%; The non net profit attributable to the parent company was 1.853 billion yuan, a year-on-year increase of 38.81%; The net cash flow from operating activities was 1.871 billion yuan, a slight decrease over the same period, and remained stable and good overall.
The company has made continuous progress in innovation, quality and main business, and achieved good results.
In terms of innovation, focusing on the strategic direction, the company continued to increase R & D investment, accelerate the construction of innovation system and gradually improve
In 2021, the R & D investment was 631 million yuan, accounting for 4.12% of the operating revenue, including 560 million yuan of R & D expenses,
A year-on-year increase of 21.8%, a significant increase in the proportion of new product R & D investment, and positive progress has been made in innovative fields such as product project initiation and introduction and classic famous party R & D. At present, the company has a total of 71 research projects, mainly focusing on the strategic fields of cancer, orthopedics, skin, respiration, anti infection and so on. In 2021, the company introduced a kind of innovative traditional Chinese medicine for improving female climacteric symptoms, and is currently making pre clinical preparations; The research progress of qbh196, a kind of small molecule targeted antitumor drug, is also very smooth, and has entered phase I clinical practice; Mitoxantrone Hydrochloride Injection (trade name: futashu) for the tracing of class II new drugs also obtained the drug registration certificate during the reporting period and began to be sold on the market. It is the first tracer product approved for draining lymph nodes in thyroid surgery area in China; The new h3k27m mutant glioma drug onc201 is also actively promoting the registration and application in China; At the same time, the company has also made some progress in the registration and consistency evaluation of generic drugs. For example, quetiapine fumarate sustained-release tablets and cefazolin sodium for injection have obtained the drug registration certificate, and ceftazidime and zopiclone tablets for injection have passed the consistency evaluation of quality and efficacy of generic drugs. In terms of inheritance, innovation and development of traditional Chinese medicine, the company focuses on the research of classic famous prescriptions of traditional Chinese medicine, hospital preparations, formula particles, etc. In 2021, more than 20 classical and famous prescriptions were under research, and more than 30 ancient classical and famous prescriptions were reported to the State Administration of traditional Chinese medicine, and the first classics were completed
Registration application of dianmingfang granule project.
In terms of brand and digital construction, the company continues to carry out user observation and marketing innovation, and expand the influence of the brand with the help of digital precise delivery and brand content. In 2021, tiktok launched the 999 challenge competition, and launched the 999 brand cartoon image, the three uncle of the warmed heart cure. It effectively enhanced the participation of consumers and reflected the warm tone of the brand in all directions. Based on data and market analysis, the company’s newly established digital center has continuously improved the layout of digital channels and established an e-commerce self-supporting team, which has further promoted the development pattern of the brand and laid a good foundation for the development of online business.
In terms of high-quality development, in 2021, the company continued to improve the construction of quality system and improve the level of quality management
Build digital quality management ability, do a good job in quality control and process technology improvement, so as to ensure and improve the quality level of products. At the same time, combined with the characteristics of the pharmaceutical industry and the situation of enterprises, we improved the organizational structure of carbon emission management, carried out carbon footprint research and carbon policy training for subordinate production units, and prepared medium and long-term carbon emission management plans to improve energy efficiency and reduce greenhouse gas emissions, so as to ensure that the company can achieve healthy and sustainable green development.
In terms of the company’s business development, the proportion of CHC health consumer goods business continues to increase, accounting for 20% of the company’s revenue in 2021
60.55%, and the prescription drug business accounted for 34.92% of the revenue. CHC business is the core business of the company, which achieved rapid growth last year. The category of cold drugs has also achieved rapid growth by continuously strengthening the brand and expanding online channels. Skin drugs have continuously improved the product layout, widened the category boundary, and achieved good growth. Gastrointestinal drugs have increased through the strategy of variety upgrading, and the core varieties in orthopedic categories have been upgraded through product technology, For example, the PIB formulation of Tian He Tong Tong paste improves the convenience and adaptability of the tear, and improves the consumer experience. At the same time, the 999 Diclofenac Sodium Gel listed further enriched the product mix. The pediatric category takes the brand as the growth driving force, constantly explores the digital path to achieve rapid growth, especially the Aonuo brand business, which achieved good growth during the reporting period; In terms of professional promotion, Yi Shanfu has continued to build a user digital operation ecosystem, with a good growth trend; The big health business continued to optimize the structure of offline business and end customers, focusing on the online health market. Last year, the offline business remained stable and the online business grew rapidly; Chronic disease rehabilitation business camp
The revenue and profit performance were good. Xuesaitong Soft Capsule overcame the impact of local policy changes and maintained stable growth.
In terms of prescription drugs, the company has continuously improved its product strength in the fields of cardio cerebrovascular, orthopedics, digestion, tumor and so on, focusing on the mining of product value and academic marketing to achieve business growth; Yi Shanfu’s market share in the hospital continued to increase, and the agent of recombinant human growth hormone for injection noze successfully achieved the sales target of the first contract year; In terms of traditional Chinese medicine formula granule business, the company has continuously improved the management ability of the whole industrial chain, established a traceability system covering the whole process of traditional Chinese medicine planting, traditional Chinese medicine decoction pieces and formula granule production, accelerated the construction of standardized planting base of traditional Chinese medicine, established the advantages of medicinal materials resources from the source, accelerated the production and implementation of national and local standard varieties, carried out intelligent manufacturing upgrading, and strengthened the manufacturing advantages of the industrial chain, In terms of marketing promotion, we have continuously consolidated the core market, accelerated the expansion of the grass-roots medical market, and increased the business layout of decoction pieces by using terminal coordination. Last year, the business of national medicine, including formula particles and decoction pieces, achieved good growth on the whole. Affected by the policy, the anti infection business declined significantly last year and is expected to have a relatively good growth in 2022.
Looking forward to the 14th five year plan, the pharmaceutical industry has broad prospects, but at the same time, challenges and opportunities coexist. The company has determined the strategic goal of becoming the leading enterprise in the industry and plans to double its operating revenue by the end of the 14th five year plan. Under this goal, in 2022, the company will comply with the trend, actively promote the business growth mode driven by brand + innovation, increase innovation investment, continue to promote innovation and digital transformation, and continue to improve the construction of high-quality green management system, so as to lay the foundation for long-term development. Business development will further accelerate product introduction and brand growth, promote the contribution of digital capability, and help the company’s long-term sustainable growth. The company achieved good business results in 2021. I believe that under the guidance of the 14th five year plan strategy, the development of the company in 2022 is more worthy of expectation.
1. Performance of CHC and prescription drug businesses in the past 21 years?
A: the proportion of CHC business of the company has increased significantly in the past two years. CHC business management is divided into four business lines: brand
OTC business, including cold, skin, gastrointestinal three categories; Professional brand business, including pediatrics, orthopedics, digestion, gynecology and other professional categories; The major health business is mainly basic nutrition and health care products, focusing on the consumption upgrading products of key groups and traditional Chinese medicine nourishing health care products; At present, the chronic disease rehabilitation business mainly relies on the holy fire to develop a series of products around Panax notoginseng preparation.
At present, brand OTC business accounts for the highest proportion, and cold is the largest category. In terms of growth rate, cold categories maintained a rapid growth; Both skin medication and gastrointestinal medication achieved double-digit growth. In the future, skin medication will extend to the field of front-end skin care, and there will be more room for growth. Professional brand business grew the fastest, mainly in pediatric category. Affected by the epidemic in 2020, pediatric cold drugs decreased significantly and the base was low. Aonuo products achieved high growth for two consecutive years in 2020 and 2021. The sales of yishanfu and Qizhiweitong granules also achieved good growth. The core products in the orthopedic field have completed the technical upgrading, the product quality has been significantly improved, the tearing and pasting experience is better, and the allergic reaction is reduced, which has been well improved, laying a good foundation for future development. Xuesaitong Soft Capsule, the core variety of chronic disease rehabilitation, grew steadily last year. Through the introduction of freeze-dried Panax notoginseng and other new products, the chronic disease rehabilitation division grew rapidly as a whole. In the future, we will continue to focus on the development of Panax notoginseng industrial chain and expand the large health market related to Panax notoginseng. At the same time, the promotion outside the hospital is further strengthened, and the business is expected to maintain good growth in the future. The big health business is still in the exploratory period in the past few years. The company has constantly adjusted the product structure and business team. At present, the business model is gradually clear. The product direction includes basic nutrition products under the “jinweiduo” brand, products distributed around women’s health and the elderly, traditional Chinese medicine nourishing and health care and personal care products. Last year, the online business grew rapidly, and many new brands and products were listed one after another. At present, the products are still in the process of continuous iteration.
In the prescription drug business, the anti infection business mainly declined rapidly last year, but at present, the anti infection business accounts for only about 6% of the company’s revenue. Except for the anti infection business, other prescription drug businesses grew well, mainly from Yi Shanfu, noze, orthopaedic Tianhe series and other products. The performance of traditional Chinese medicine injection was stable.
2. Compared with 2020, the sales expense rate in the 21st year has decreased significantly. What is the trend of the sales expense rate in the 22nd / 23rd year?
A: the company’s expense management is becoming more and more refined. With the expansion of revenue scale and the improvement of marketing expense delivery efficiency, the sales expense rate is expected to decrease slightly in the future. In addition, the promotion of centralized purchase will also lead to the decline of cost rate.
3. What categories will be the focus of introducing new varieties in the future?
A: the company’s product introduction mainly focuses on the strategic direction. In the future, it will continue to supplement more categories and add more products to the existing categories. Prescription drugs have sorted out 7-8 treatment areas of core and concern. Company supplementary products
The way of is also more and more diversified.
4. The 14th five year plan, the guideline for doubling the expected revenue, can you give a detailed introduction to the guideline for the business objectives of the 14th five year plan?
A: the company’s target to double its revenue during the 14th Five Year Plan period is based on 2020. The target is achieved by comprehensively considering connotative growth + product introduction and M & A opportunities. The company has the experience of integrating high-quality resources in the industry, and the ability of the team is also increasing. It is hoped to seize the opportunity of integrating high-quality resources during the industrial reform period of the 14th five year plan.
5. What is the proportion of online and offline channel sales in CHC business? Target planning of online sales scale?
A: online business accounts for a relatively small proportion of the company’s business. At present, online business accounts for about 4% of CHC business, accounting for
The ratio is still not high, mainly related to the company’s product structure, but the business has grown rapidly in the past few years. At present, online products are gradually enriched. The company continues to launch products suitable for online sales. The company is also gradually transferring resources and focus to online, and has established a digital center to explore online business capabilities. It is expected that the online business is expected to reach about 10% in the future.
6. Promotion and price increase of national standard of formula particles? How much does the cost increase? Progress of centralized purchase? Possible changes in future revenue and profitability?
A: at present, the speed of filing the provincial and national standards of formula particles is slow, and there are great differences in policies among provinces. For example, Fujian adopts the method of open online pricing of formula particles. The company adopts one province and one policy as the response plan. It is expected that the price adjustment and sales trend of formula particles will be clearer in the second quarter of this year.
The cost of national standard varieties of formula granules has increased significantly, and the national standard is relatively high. Centralized mining is piloted locally. It is expected that the conditions for national promotion will not be met in the short term. The company actively pays attention to the progress of centralized mining in Shandong.
In the process of switching between the old and new national standards, it is expected that the income growth in the first half of this year will be affected to some extent, and the annual growth rate is expected to be slightly lower than that in previous years.
7. Products that may face centralized purchase in the future?
A: the risk of centralized purchase of the company’s chemical drug varieties has been basically weakened. traditional Chinese medicine
