Securities code: 002107 securities abbreviation: Shandong Wohua Pharmaceutical Co.Ltd(002107) Announcement No.: 2022-004 Shandong Wohua Pharmaceutical Co.Ltd(002107)
Work report of the board of directors in 2021
In 2021, the epidemic of covid-19 pneumonia in China was effectively controlled, and the traditional Chinese medicine industry gradually recovered from the impact of the epidemic. Chinese patent medicine, which has performed well in epidemic prevention and control, continues to be valued by the state, and multiple favorable policies have been introduced and implemented. At the same time, the reform of the medical and health system is moving towards the deep-water area, the intensive collection of Chinese patent medicine "boots landing", the introduction of specific measures for the reform of medical insurance payment, and the deepening reform measures have touched the crux of the industry, putting forward higher requirements for the operation quality and compliance level of the pharmaceutical industry. In the post epidemic era, opportunities and challenges coexist.
In the face of the changing situation, under the leadership of the board of directors, the company has practiced its core mission and core values, focused on its main business, fully relied on the "two unique Swords", continued to deepen marketing reform, comprehensively promoted fine management, resolutely implemented the work requirements of "practicality, refinement, strictness and simplicity", deeply tapped its potential, consolidated its foundation and practiced its "internal skills", Keep the overall performance basically stable during the shock period of marketing reform. During the reporting period, giving full play to and relying on the advantages brought by the reform of corporate governance system, the Executive Committee of the board of directors operated smoothly and efficiently, made timely and scientific decisions, greatly improved the efficiency of operation and management, especially marketing decisions, and hedged business risks with efficient and scientific governance; We continued to deepen the organizational reform of the marketing system. On the one hand, we continued to optimize the organizational structure, carried out drastic innovation in the marketing system according to the market competition, optimized the combination of marketing areas, lines and personnel, did not fear short pain, and further straightened out the relationship between the organizational structure, human resources allocation and division of responsibilities based on the long term, Continue to build an organizational system that can not only be unified and coordinated, but also carry out professional vertical management, but also have the ability of flexible response, independent learning and self evolution, and constantly improve the system and organizational guarantee for the sustainable growth of sales revenue and profits; On the other hand, we will continue to unswervingly promote the key work of marketing, refine marketing actions, reasonably allocate resources, constantly enrich the supporting guarantee measures of marketing reform, resolutely implement the long-term strategy of marketing development, and implement the specific requirements of "pit system" and "one center and four basic points" - focusing on customer upgrading management, so as to improve sales skills, product knowledge Improving academic ability and development ability are the four basic points. Marketing is the top priority of all work and has the highest priority. Adhere to the academic promotion route, reasonably tilt the allocation of resources, increase academic investment, introduce excellent talents, improve the information level, and continuously consolidate the foundation for the sustainable growth of sales revenue and profits; Make full use of the production capacity of the three existing modern production bases, continuously improve the level of lean production and intelligent manufacturing, reduce production costs, improve production efficiency and meet market demand on the premise of environmental protection, energy conservation and safety; Continue to implement all-round fine management, pay more attention to process management, fully implement the process management requirements of "reality, detail, strictness and simplicity", formulate and implement various rules and regulations of process management, and ask for efficiency from detail management and benefit from process management.
During the reporting period, the company realized an operating revenue of 942.6746 million yuan, a year-on-year decrease of 6.30%; The net profit attributable to the shareholders of the listed company was 163.392 million yuan, a year-on-year decrease of 8.66%. The sales revenue of main core products remained basically stable. The sales revenue of wohuaxinkeshu tablets decreased by 7.23% over the same period last year, the sales revenue of Gushukang capsules / granules decreased by 22.39% over the same period last year, the sales revenue of Hedan tablets / capsules increased by 5.82% over the same period last year, and the sales revenue of Naoxueshu oral liquid increased by 14.53% over the same period last year.
1、 Implementation of the strategy in 2021
During the reporting period, facing the severe industry situation, the board of directors made timely targeted adjustments and adopted a series of countermeasures, which effectively ensured and promoted the sustainable, healthy and sound development of the enterprise. (I) in terms of marketing, the company's marketing reform has entered the "deep water area", and the adjustment of organizational structure, market optimization and reorganization, marketing action update, personnel allocation upgrade and other work have been continuously implemented. At the same time, the supporting system has been formulated, optimized and refined according to the actual situation, paying more attention to details and quality, and using the continuously improved refined management level to offset the "pain" of marketing reform, Truly implement the specific requirements of "pit position system" and "one center and four basic points", and stabilize the sales revenue and profit performance, so as to lay a solid foundation and practice the "internal skill" for the continuous growth of business performance. During the reporting period, the company continued to focus on the "four exclusive medical insurance pillar products", actively respond to policy shocks, optimize online marketing, pay attention to academic promotion, pay close attention to process management, and strive to achieve the basic stability of business performance under the condition of continuously increasing production costs and continuously optimizing marketing reform. During the reporting period, the company realized an operating revenue of 942.6746 million yuan, a year-on-year decrease of 6.30%; The net profit attributable to the shareholders of the listed company was 163.392 million yuan, a year-on-year decrease of 8.66%. The sales revenue of main core products remained basically stable. The sales revenue of wohuaxinkeshu tablets decreased by 7.23% over the same period last year, the sales revenue of Gushukang capsules / granules decreased by 22.39% over the same period last year, the sales revenue of Hedan tablets / capsules increased by 5.82% over the same period last year, and the sales revenue of Naoxueshu oral liquid increased by 14.53% over the same period last year.
Under the leadership of the Executive Committee of the board of directors, the company's marketing reform is more in-depth, and the reform measures are more detailed and more in line with the actual needs. On the basis that the marketing organization structure has been basically determined, continue to optimize the details, promote the optimal combination of market and varieties, and constantly adjust the manpower allocation, division of responsibilities and incentive policies. Nine budget sales departments, one budget OTC Sales Department and two investment promotion sales departments were established. Introduce external talents who agree with the company's core values and have rich practical experience to stimulate the working potential of the existing marketing team. Since the second half of 2020, after more than a year of drastic and profound reform to eliminate the old and welcome the new, a marketing system focusing on the professional clinical promotion mode of budget system and the mutual promotion of terminal intermediary service provider mode and OTC mode has been preliminarily established. The "pit system" has been effectively implemented, and the specific work requirements of "one center and four basic points" - focusing on customer upgrading management and improving sales skills, product knowledge, academic ability and development ability have also been deeply implemented. The management functions of market and business have been strengthened. The operation of supporting measures such as marketing management process, decision-making mechanism and incentive policies has been on track. The deepening of marketing reform and the refinement and implementation of supporting measures and policies have consolidated the foundation for the sustainable growth of sales revenue and profits. 1. Adhere to, optimize and expand the scope of application of marketing methods such as online promotion, integrate Wuxi Online Offline Communication Information Technology Co.Ltd(300959) resources, refine marketing actions, and maintain the basic stability of sales revenue.
During the reporting period, although the epidemic of covid-19 pneumonia was effectively controlled, regional sporadic outbreaks occurred from time to time, and the epidemic prevention and control measures in various regions were adjusted, but it still affected the development of the company's marketing activities, and the market situation was similar to that during the epidemic period. Since 2020, in order to cope with the severe pharmaceutical market environment and the impact of the epidemic, the company has "one minute action", timely adjusted its marketing strategy, fully mobilized team resources, customer resources and industry resources, flexibly applied online marketing methods that are more suitable for the current situation, including online academic promotion and online training, enhanced customer stickiness and expanded customer coverage, At the same time, the marketing cost is significantly reduced.
During the reporting period, the company continued to rely on the full terminal and full mode marketing system, give full play to the competitive advantages accumulated by the budget system specialized clinical promotion mode, optimize the efficient action of online marketing, continuously expand the applicable occasions and application scenarios, and refine and summarize the efficient online marketing experience. In order to comply with the prime minister Li Keqiang's emphasis on promoting the standardized development of "Internet plus medical health" in the government work report, and the "accelerated implementation of new consumption implementation plan" formulated by the 28 departments of the national development and Reform Commission, the government encourages the policy of "developing Internet plus medical health" actively. Jingdong and other Internet plus health care platforms are embracing the Internet, seeking innovation, exploring and developing new market opportunities.
At the same time, on March 24, 2021, the National Health Commission issued the notice on doing a good job in the management of current long-term medication prescriptions for chronic diseases, and the policy of "long-term prescriptions for chronic diseases" was retained and made clearer. The "four exclusive medical insurance pillar products" are oral preparations for the treatment of chronic diseases, which is in line with the scope of application of the "long prescription" policy. The company timely grasped the relevant policy opportunities, made use of the policy window, strengthened publicity and promotion, and made every effort to promote the sales of "four exclusive medical insurance pillar products". In addition to bringing convenience to patients, the clinical application of sufficient treatment also brings more clinical applications. The efficacy of "four exclusive medical insurance pillar products" has been further recognized.
In the post epidemic period, while continuing to promote online marketing, the company actively resumed offline promotion activities, accelerated the integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) resources, realized the linkage of online and offline marketing, ensured the diversification of marketing channels and avoided the impact of unforeseen factors such as the epidemic.
2. Under the leadership of the Executive Committee of the board of directors, not afraid of short-term pain, based on the long-term, deeply promote marketing reform with great courage and determination, aim at building a marketing system dominated by budget system professional clinical promotion mode and mutual promotion of terminal intermediary service provider mode and OTC mode, and continuously optimize the details in terms of organizational structure adjustment, strengthening academic and manpower allocation, Implement the specific requirements of "pit location system" and "one center and four basic points".
During the reporting period, the Executive Committee of the board of directors held a total of 47 meetings, listened to the report on the specific implementation of marketing reform at fixed time, fixed point and fixed person every week, held special discussions and made timely decisions. According to the actual situation, a number of supporting systems and measures have been formulated and implemented to promote the marketing reform to the "deep water area".
The first is to adjust the budget system specialized clinical promotion model (hereinafter referred to as the budget system). First, the original regional division was broken, the sales department was readjusted and set up, and the marketing management personnel were adjusted and rotated accordingly. The old pattern of interests was broken, which reduced the resistance to reform and radiated the vitality of the team. Second, adjust the structure of marketing expenses, continuously increase the proportion of academic promotion expenses, track the application and use of expenses, ensure that resources are inclined to academic promotion and reduce the proportion of other marketing expenses. Third, change the focus of work, shift the focus of work to the development of sales terminals, especially grade hospitals, tilt costs and resources, make every effort to increase the number of terminals and improve the quality of terminals. Pay more attention to the capacity-building and improvement of the budget team, especially the academic promotion ability and development ability. The reorganization of the sales area, the adjustment of the market expense structure and the transformation of the work focus are all based on the long-term plan of building a strong academic promotion team. Although it has a certain impact on the sales revenue in the short term, it will still adhere to the reform under the leadership of the Executive Committee of the board of directors.
The second is to adjust the terminal intermediary service provider mode and OTC mode. First, on the premise of careful research and accurate prediction, according to the characteristics of the product treatment field and terminal, it is re combined into a product line with stronger synergy and more complementary advantages, which is handed over to a more suitable team for operation and promotion, so as to achieve the reform goal centered on customer upgrade management. Second, large-scale adjustment of cooperation mode has been carried out for different market cooperation subjects. For the national chain drugstores, the original cooperation mode has been changed, new cooperation modes have been actively explored, the bargaining power of the company has been improved, and the judgment and trade-offs have been made based on whether it conforms to the company's business philosophy and interest demands; For regional chain drugstores, affected by the epidemic and economic situation, the regional chain field changes greatly, mergers, acquisitions and even bankruptcy occur from time to time, and the overall market and cooperation are in an unstable state. The company strives to adjust to maintain a more reliable cooperative relationship; For single drugstores, change the past practice of not paying attention to single drugstores, increase the weight coefficient of single drugstores according to the current market situation, and explore the cooperation mode with single drugstores from scratch. After the cooperation mode of national chain, regional chain and monomer drugstores is changed and mature, it will bring stable growth of sales revenue. Third, strictly control the quality of intermediary service providers, put forward three requirements for intermediary service providers, such as "having strong terminal development ability, a complete and systematic academic promotion team and a large scale of in-service market", and assess and rate intermediary service providers accordingly. The company will no longer cooperate with intermediary service providers that do not meet the requirements and strictly screen new intermediary service providers. With the large-scale change of intermediary service providers, the sales terminals in some regions have also undergone large and complex adjustments.
Thirdly, in order to adapt to the marketing reform and the changes of various marketing modes, the company made major adjustments to the manpower allocation of the marketing team during the reporting period. The first is to break the restrictions of region and variety and re divide the marketing management area. For the positions of regional manager, regional manager and director of sales department, the method of centralized competition shall be adopted to select the best, "those who can go up and those who can't go down". All regional managers under the mode of terminal intermediary service provider are renamed terminal growth manager, with clearer responsibilities, aiming to improve terminal coverage, increase the number and quality of customers and realize the growth of sales revenue. Secondly, the company bucked the trend, took advantage of the temporary restraint of the overall development of the industry, made every effort to expand the budget academic promotion team, vigorously introduced excellent talents, expanded the marketing team and adapted to the marketing needs. During the reporting period, professional managers who agree with the company's core values and have rich practical experience in the industry were fully introduced, involving marketing management positions at all levels, such as general manager of marketing, director of sales department, regional manager and regional manager. In 2021, the company's marketing system introduced 66 management talents of various types, including 1 marketing general manager, 3 sales department directors, 14 terminal growth managers, 12 regional managers and 36 regional managers. With the promotion of the original excellent personnel and the introduction of external talents, the strength of the marketing team has been enhanced, and the vitality, enthusiasm and creativity of the team have been effectively improved. However, the personnel adjustment range is large, and it will take a period of running in to give full play to the strongest combat effectiveness.
Fourth, the company comprehensively promotes and deepens the fine management of marketing. Strengthen process and behavior management, and fully implement the process management requirements of "reality, detail, strictness and simplicity". "Reality" means to proceed from reality and do solid work. It is not only the basis of all work, but also the prerequisite for realizing "detail, strictness and simplicity". Only by going deep into the front line to understand the actual situation and find practical problems can we create value. Don't shout slogans and exaggerate. "Detail" means to do a good job in every detail and pay close attention to detail management on the basis of "reality". "Strict" refers to strict management on the basis of "solid and detailed", and resolutely put an end to sheep herding management and slogan management. "Simplicity" refers to simplifying complex problems, identifying the key points of problems and simplifying things to essence on the basis of "reality, detail and strictness". Promote the implementation of new management work such as nailing, schedule management table and time allocation table
