On April 17, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) released its annual performance report, saying that the company's operating revenue in 2021 was about 3.162 billion yuan, a year-on-year decrease of 14%; The net profit was about 307 million yuan, a year-on-year decrease of 45.47%, and the net profit was almost halved. The reasons for the decline in performance given by Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) are the decline in the amount of prescription drugs, the impact of cross provincial joint centralized procurement policies such as Hubei and Guangdong, and the limited medical institutions and indications, resulting in the slow progress of product sales. In recent years, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) is facing great transformation pressure due to the adjustment of clinical use policy environment of traditional Chinese medicine injections, the reform of medical insurance payment, the catalogue of clinical key monitoring and other factors.
performance decreased twice
The revenue and net profit decreased, and Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) performance fell again. According to the 2021 annual report, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) achieved an operating revenue of about 3.162 billion yuan, a year-on-year decrease of 14%; The net profit was about 307 million yuan, a year-on-year decrease of 45.47%.
This is the second decline in Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) performance. At present, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) takes pharmaceutical manufacturing as the core leading industry, holding 11 important subsidiaries, covering medical protection, food manufacturing, pharmaceutical research and development, pharmaceutical circulation, Chinese herbal medicine industry and other fields. In 2020, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) achieved an operating revenue of 3.676 billion yuan, a year-on-year decrease of 3.61%; The net profit was 563 million yuan, a year-on-year decrease of 24.45%.
Early Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) started with real estate business. In 2006, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) established the business idea of vigorously developing medicine, and the core product in the pharmaceutical industry is Xueshuantong. Since 2006, the proportion of Xueshuantong in Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) revenue has increased year by year. After 2011, the proportion of Xueshuantong in Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) annual revenue has been more than 70%. According to the financial report of 2021, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) pharmaceutical sector achieved a revenue of 2.861 billion yuan, accounting for more than 90%, and the food sector achieved a revenue of about 199 million yuan. The cardiovascular and cerebrovascular drugs mainly used in Xueshuantong for injection (freeze-dried) are still the core pillar of Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) pharmaceutical business, with a revenue of 1.471 billion yuan, accounting for about 46%.
In view of the reasons for the decline in performance in 2021, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) said in the performance pre reduction announcement that the decline in performance was mainly due to the impact of main business. On the one hand, the epidemic situation has been repeated, the number of inpatients in some regional medical institutions and hospitals has decreased, and the amount of prescription drugs has decreased; Pharmacies are restricted to the sale of antipyretic and antitussive drugs, and the company's related OTC varieties are restricted to the sale. On the other hand, the company's main product Xueshuantong is affected by the cross provincial joint centralized procurement policy of Hubei, Guangdong and other provinces, and the medical institutions and indications are limited, resulting in the slow progress of product sales. In addition, the main product of Chongqing Lummy Pharmaceutical Co.Ltd(300006) (hereinafter referred to as " Chongqing Lummy Pharmaceutical Co.Ltd(300006) "), the holding subsidiary of the company, lemeisu products, failed to enter the volume procurement list of the National Medical Insurance Bureau, and the income decreased to a certain extent Chongqing Lummy Pharmaceutical Co.Ltd(300006) performance fails to meet the expectation at the time of M & A, and the goodwill impairment is expected to be between 150 million and 250 million yuan in 2021.
The reporter of Beijing Business Daily called Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) , but was not connected as of the time of publication.
transformation dilemma
In order to change the dependence on the single product Xueshuantong products, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) cultivate new growth points through mergers and acquisitions. However, at present, the new business has not yet made a great contribution to the company's performance.
In November 2019, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) signed the strategic cooperation framework agreement with Chongqing Lummy Pharmaceutical Co.Ltd(300006) to obtain the voting rights corresponding to 22.71% of the shares of Chongqing Lummy Pharmaceutical Co.Ltd(300006) major shareholders, and finally obtained the actual control Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) at that time, it was planned to conduct in-depth cooperation with Chongqing Lummy Pharmaceutical Co.Ltd(300006) in the field of biomedical industry in the future, and take Chongqing Lummy Pharmaceutical Co.Ltd(300006) as an innovative biomedical technology and product development, production and sales platform within Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) system, which is conducive to improving Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) future profitability and its position in the biomedical industry. However, the performance of Chongqing Lummy Pharmaceutical Co.Ltd(300006) itself is not optimistic, and the total loss in 2019 and 2020 is close to 500 million yuan Chongqing Lummy Pharmaceutical Co.Ltd(300006) has also become one of the factors that drag down the performance of 6 Zhejiang Zhongcheng Packing Material Co.Ltd(002522) 021.
Restructuring investment in Guangxi aoqili Co., Ltd. and layout of daily chemical field is also an attempt of Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) . In July 2020, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) announced that the company plans to participate in the restructuring investment of Guangxi aoqili Co., Ltd. if the restructuring is completed, the company will hold no less than 55% equity of Tianqi cosmetics company, a wholly-owned subsidiary of aoqili, and will control Tianqi cosmetics company Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) in the 2021 financial report, the company accelerated the development of daily chemical industry, entered the daily chemical market relying on "Tianqi" series products, realized the extension of industrial chain, and gradually formed two core product series of Tianqi brand oral care and home washing.
However, among a number of pharmaceutical enterprises, Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) is not too early to lay out the daily chemical industry. In the toothpaste market, there are Yunnan Baiyao Group Co.Ltd(000538) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Harbin Pharmaceutical Group and other enterprises, of which Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) entered the toothpaste market in 2012. It is still unknown how much help Guangxi aoqili Co., Ltd., which was deeply involved in the debt storm and gradually stopped production, can bring to Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) the daily chemical layout.
In the opinion of Li Xu, an investment analyst in the pharmaceutical industry, the national drug volume procurement will be extended to Chinese patent medicine and biological similar drugs in the future, and the quantity of intensively purchased varieties will increase and the price will fall obviously Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) core product Xueshuantong has limited growth under the adjustment of clinical use policy environment of traditional Chinese medicine injection and the reform of medical insurance payment. Relying on the advantages of short, flat and fast, M & A can quickly enrich the business line, but whether the acquisition has synergy and subsequent integration ability test the listed companies.
