In the afternoon of January 20, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) (000999, SZ) Pharmaceutical Industrial Park in Longhua District, Shenzhen, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) held the first extraordinary general meeting of shareholders in 2022. At the meeting, the proposal on the estimated amount of daily connected transactions in 2022 and the proposal on purchasing directors, supervisors and senior liability insurance were considered and adopted.
At the meeting, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) Board Secretary Zhou Hui said when asked by the reporter of the daily economic news that the price of traditional Chinese medicine has continued to rise in the past few years. The increase range in 2021 is relatively large. The price increase range of different medicinal materials is different, and the impact on the company’s products is also different. Generally speaking, the price increase has a relatively large impact on the business of traditional Chinese medicine formula granules, The company will respond from multiple levels.
In the past 2021, the centralized purchase of Chinese patent medicines has been carried out in Hubei, Guangdong and other places, and may be popularized throughout the country in the future. As an old traditional Chinese medicine enterprise, how much impact does the centralized purchase of Chinese patent medicine have on the company? Zhou Hui said that the number of varieties included in the centralized purchase of the company is relatively small, the impact on the business is relatively limited, and the selected varieties will bring a certain amount of guarantee. On the whole, the results are acceptable.
moderately raise the price of some products
On the afternoon of January 20, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) held the first extraordinary general meeting of shareholders in 2022. Affected by the recent epidemic, not many directors, supervisors and shareholders of the company came to the meeting. About a dozen people attended the meeting, and most directors attended the meeting in the form of video.
The extraordinary general meeting mainly considered two proposals, namely, the proposal on the estimated amount of daily connected transactions in 2022 and the proposal on the purchase of directors, supervisors and senior liability insurance, both of which were considered and adopted. For the estimated amount of daily related party transactions in 2022, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) indicates that in order to ensure the stable operation of the company’s production and operation, the company and its subsidiaries expect that the total amount of daily related party transactions with related parties controlled by the same controller China Resources Co., Ltd. in 2022 will not exceed RMB 2.163 billion. Among them, the company and its subsidiaries are expected to sell 1.718 billion yuan of products and commodities to related parties, and the company and its subsidiaries are expected to purchase 445 million yuan of products and commodities from related parties.
The amount of connected transactions is huge. How to avoid risks? Zhou Hui said, “First of all, these enterprises are our long-term partners, and many of them were already our customers before we entered China Resources. Second, the customers we selected are some dealers in the front of all regions, and the company has a strict customer management and screening system. Third, we have strict monitoring and management measures for collection and return, and we will do it in advance Some investigations, including credit and financial status, we will also monitor the implementation of their agreement at any time. If there are abnormalities, we will make adjustments in time. “
According to the previous report of the daily economic news, the price of traditional Chinese medicine has risen sharply since 2020. In this regard, Zhou Hui said that the price of traditional Chinese medicine has continued to rise in the past few years. The increase range in 2021 is relatively large. The price increases of different medicinal materials are different, and the impact on the company’s products is also different. It mainly has a great impact on the company’s traditional Chinese medicine formula particle business, because the number and scale of traditional Chinese medicine varieties of the company’s traditional Chinese medicine formula particle business are relatively large.
Zhou Hui mentioned that the overall gross profit margin of the company has decreased slightly in the past two years, which is mainly affected by changes in raw material costs. “As far as the company is concerned, on the one hand, we should tap the potential internally or strengthen management in all links of the whole industrial chain, hoping to digest the impact of the price rise of raw materials internally. At the same time, some products will also consider moderate price increase, such as traditional Chinese medicine formula granule products. In addition, the new national standards for some products have been implemented, which has also brought some success This price has increased, so we still hope to increase the price moderately. Of course, we should also consider the acceptance of terminal patients. “
impact geometry of centralized collection of Chinese patent medicine?
In the past 2021, Guangdong and Hubei successively took the lead in carrying out volume procurement of Chinese patent medicine regional alliance. Recently, Hubei Province took the lead in the bid opening of centralized procurement of Chinese patent medicines in 19 provincial alliances, and 182 products from 157 enterprises participated in the quotation, with a procurement scale of nearly 10 billion yuan; Finally, 97 enterprises and 111 products were selected, and the selection rate reached 62%. The average price of the selected products decreased by 42.27% and the maximum decreased by 82.63%. According to the annual demand of the alliance of 19 provinces, it is estimated that more than 2.6 billion yuan of drug costs can be saved each year.
It is understood that in the previous centralized purchase of Chinese patent medicines in 19 provinces led by Hubei, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) four varieties participated in the quotation, three were injections and one was oral products. Finally, one variety of injections was selected. Zhou Hui said that generally speaking, the number of varieties included in centralized purchase by the company is still relatively small, and the impact on the business is relatively limited. “The three injection varieties are non exclusive varieties, which account for a relatively small proportion of the company’s revenue at present, and the impact is not particularly great if they are included in centralized purchase. At the same time, the selected varieties will also bring a certain amount of guarantee, which is an acceptable result on the whole. If the oral products are mainly aimed at the retail market, the hospital market has done less, and the impact of not winning this time is limited.” Zhou Hui said.
Zhou Hui also said, “in the long run, we believe that many chronic disease drugs will be realized in the out of hospital market, so we have made some business layout and adjustment before. In fact, our proportion of out of hospital sales is relatively high.”
In the first half of 2021, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) overseas regions achieved a revenue of 36.51 million yuan, accounting for only 0.47% of the revenue. At the meeting, some investors asked whether the company has any promotion plan in internationalization?
Zhou Hui responded that the company has been actively expanding international cooperation, including establishing cooperative relations with multinational pharmaceutical enterprises such as Sanofi. “At present, we don’t think we have the ability to operate globally, so the company attaches great importance to cooperation with multinational enterprises and hopes to make more attempts in the direction of license in.”
What is the layout of the company in innovation? Zhou Hui told the daily economic news that from a general perspective, on the one hand, the company has laid out some products in line with the direction of consumption upgrading. At the same time, the company is constantly enriching product categories, hoping to provide patients with more comprehensive health service products. “In the innovation of prescription drugs, there are actually three pieces, namely traditional Chinese medicine, classic famous prescriptions and in-hospital preparations. Classic famous prescriptions and in-hospital preparations are our key investment directions in the past few years, and some product achievements will come out one after another.”
