In 2016 annual reports released by the end, the performance of the medicine industry manufacturing segment can see child ugly Yin bases. Besides inviting blood industry profits, each big drug companies are involved in the new hot, Chinese medicine yinpian industry performance is very outstanding, sig pharmaceutical industry and so on several into Chinese medicine yinpian drug firms on the product revenue rising to some extent. High returns, of course, can also lead to strong competition heats up gradually, and with the industry regulation and strict, this is also a rapid knockout, their speed, strong enterprise for a long time in small, scattered, Chinese medicine yinpian markets, or will be big alligator's game. 

 

Sig pharmaceutical transcript: revenue, net profit respectively 

 

On April 19 evening, sig pharmaceutical released 2016 annual report, its in the past year to achieve the business income is 21.642 billion yuan, up 19.79%; Net profit attributable to shareholders of listed companies of 3.34 billion yuan, up 21.17% from a year earlier. 

 

Compared with 2015, revenue and profit growth rate has increased, in 2015 the growth rate of 13.28% and 20.60% respectively. Reason according to its annual report, that growth is largely due to its advantage of traditional Chinese medicine yinpian position has been solid, 2016 sig pharmaceutical pharmaceutical income 4.704 billion yuan, Chinese medicine yinpian products rose 26.43%; And benefit from the "two votes" circulation policy influence, the drug trade income growth, 2016 sig pharmaceutical pharmaceutical drug trade income 7.301 billion yuan, up 35.35% from a year earlier. 

 

Sig pharmaceutical business income and net profit in recent five years (unit: one hundred million yuan) 

 

 

Sig pharmaceutical industry for its 2016 performance driving factors, analysis of the following: 

 

A, big health industry landscape layout and the industrial system building has been completed 

 

Sig pharmaceutical said in its annual report, has initially formed a complete big health industry landscape layout and construction of industrial system, in the middle and lower reaches of the three side has a larger advantage. 

 

Formed in the upstream mastery of Chinese medicinal materials supply core resources, and through the compaction of pharmacy trusteeship, medical institutions, chain pharmacies, such as core market terminal control, construction of upstream supply management advantages of pharmaceuticals, 

 

To master Chinese medicinal materials professional market in middle reaches the central nervous system of traditional Chinese medicine industry, set up "sig e medicine valley" online Chinese commodities trading electric business platform, develop and launch the "sig, Chinese herbal medicine price index" of China, and through the integration of logistics, warehousing base resources fully, the construction of modern pharmaceutical logistics distribution system, has now been established including Beijing, Shanghai, northeast, pnin, sichuan, distribution of more than 30 national modern pharmaceutical logistics center, forming a unique strategic barriers and advantages, Chinese medicine yinpian, Chinese herbal medicine company trade, health care products and health food business has formed a strong support; 

 

In the downstream building a collection of resources of medical institutions, the pharmacy trusteeship, OTC retail, chain drug stores, direct marketing, medicine, electricity, mobile medical treatment in an all-round multi-level marketing network; And through the construction of hospital management sig, acquisition integration meihekou central hospital, kaiyuan city central hospital, push the pharmacy with wisdom (mobile medical + city central pharmacy) as a representative of mobile medical projects continue to fall to the ground, successfully into the medical service a big health industry strategic high ground. 

 

Second, Chinese medicine yinpian advantage position 

 

Benefit from the Chinese medicine yinpian dividend policy and the increasingly strict regulation in the industry, part of the "small" "poor" competitive enterprise to be being washed out gradually, increase of concentration of industry, while the product variety is complete the sig pharmaceutical industry achieved rapid growth in the new development opportunity. 

 

Three, from private health policy dividends, the deepening of medical service, take big health industry strategic high ground 

 

In recent years, the medical service market showed a rapid growth and the advantage of large room for growth. Sig hospital pharmacy by building management sig, acquisition integration meihekou central hospital, kaiyuan city central hospital implements entities preliminary foundation of hospital management. Second, by the pharmacy trusteeship, extension services, community health services, supply chain integration of a wide range of resources based on both ends of the supply and demand. Again to pharmacy "wisdom" and "web-based hospital" as the representative of "Internet + medical" landing in succession of the project, success through the interactions with the C end user resource. 

 

In Chinese medicine yinpian listed drug firms are overweight 

 

In recent years, many domestic listed companies are in the market has Chinese medicine yinpian layout, the reason for this is that Chinese medicine yinpian in traditional Chinese medicine industry chain of the intermediate links, Chinese medicine yinpian layout can guarantee drug firms product safety; Plus industry development time is short, the competitive landscape has yet to finalize the design, the national support policies introduced gradually, each big drug firms layout in advance, preempt the industry advantage. Listed companies have established more than domestic Chinese medicine yinpian companies or products processing base, the acquisition of Chinese medicine yinpian enterprise equity fund, setting up Chinese medicine yinpian m&a management methods such as Chinese medicine yinpian. 

 

Into Chinese medicine yinpian industry from this product performance is excellent and 6 listed companies 2016 annual report data, Chinese medicine yinpian both in revenue and profit contribution performance is relatively good, whether the overall net profit growth of over 50% of China's traditional Chinese medicine (TCM), and net profit fell by more than 50% of the xiangxue pharmacy, the contribution of the Chinese medicine yinpian relatively prominent. In addition, Chinese medicine yinpian industry one of the leading enterprises of yunnan baiyao (2016 annual report has yet to be announced), Chinese medicine yinpian past performance profit performance is very outstanding, also its yinpian subsidiary company in 2015 net profit of 2015 yuan. 

 

In 2016 the six into Chinese medicine yinpian listed companies operating income and net profit 

 

 

China's traditional Chinese medicine (TCM) 

 

Chinese herbal medicine 2016 revenue of RMB 6.533 billion (the same below), up 76% from a year earlier. Net profit of 967 million yuan, up 54.6%; Basic earnings per share 21.73 points; To send a share is now 3.59 port fairy. 

 

Said in its annual report, the company's revenue growth is mainly thanks to 2016 is the first full after acquisition of jiangyin day jiang pharmaceutical annual merger. Among them, the traditional Chinese medicine formula particles business accounted for 66.7% of total turnover. In march of 2015, China's traditional Chinese medicine (TCM) to raise 7.2 billion Hong Kong dollars to buy the jiangyin day jiang pharmaceutical 87.3% stake, become the domestic pharmaceutical largest mergers in history. Jiangyin day jiang pharmaceutical before m&a is industry leading domestic traditional Chinese medicine formula particles, the market share of 50% or more. A merger is to fill the gaps in China's traditional Chinese medicine in the field of Chinese medicine yinpian, perfect the industry chain. 

 

Xiangxue pharmacy 

 

Xiangxue pharmacy 2016 operating income is 1.862 billion yuan, up 27.13%; Net profit of 066 million yuan, fell 62.77%. The Chinese medicine yinpian business maintained a good growth, achieve business income is 613 million yuan, up 55.16% from a year earlier. 

 

From the annual report data that xiangxue pharmacy "income not ZengLi" reasons, revenue rose due to financial statements to merge the new acquisition of hubei day Chinese medicine yinpian co., LTD., reports, falling profits is due to its core products for digestion in dealer channel inventory, reduced the shipments, antiviral oral liquid and radix isatidis particle revenue dropped sharply. Antiviral oral liquid income is 233 million yuan, a 43.16% decrease from the previous year, radix isatidis income is 034 million yuan, 39.22% less than last year. 

 

Ciic pharmaceutical co. 

 

Ciic pharmaceutical 2016 annual business income is 730 million yuan, up 6.10%; Net profit of 054 million yuan, fell 33.33%. But its pharmaceutical business gross margin increased from 209 million yuan to 218 million yuan, gross profit margin increased from 63.7% to 63.7%. An annual report to explain, mainly due to increased gross profit margins to 81.7% of new slices. 

 

According to ciic pharmaceutical 2016 annual report explains, the main reason for the decline in its profits to promote products and brand advertising spending. As you can see, it has increased over the past year wisdom pharmaceutical market and brand promotion expenses, it is understood that the staff costs, advertising and promotion costs and group chain pharmacies rent total cost is 280 million yuan, increasing 36.7% year on year. In break into the market, analysis of data from net profit, ciic pharmaceutical industry is setting, xu li, which to some extent, also reflects the Chinese medicine yinpian upgrading of market competition. 

 

The potential of high growth and high potential market 

 

According to the national bureau of statistics data show that in 2016 pharmaceutical industrial enterprises above designated size main business income is 2.963586 trillion yuan, up 9.92% year on year, growth is increased by 0.90% year-on-year, growth is higher than the national overall industrial growth of 5.02%. Among them, the Chinese medicine drink film industry main business income is 195.636 billion yuan, increased by 12.66%, compared to the same in the pharmaceutical industry segment after medical instruments and equipment manufacturing industry. 

 

Pharmaceutical industry main business income in 2016 

 

 

High growth rate of the reason is mainly due to the Chinese medicine yinpian is like traditional Chinese medicine (TCM) industry of the intermediate links, on the one hand, can be directly processed by upstream of traditional Chinese medicine, taking as an agent or directly take, on the other hand can be used as raw material processed into proprietary Chinese medicine, into the downstream sales terminal. And, due to the frequent Chinese medicinal materials quality and safety problems, the proprietary Chinese medicine enterprises start from raw materials to the control, such as set up planting base of Chinese medicinal materials, high margin Chinese medicinal materials and Chinese medicines sliced and prepared for decoction as an important product, naturally attract the major drug companies involved, become their new battlefield. 

 

High growth in Chinese medicine yinpian industry development situation, the industry concentration degree is low, the market competition, the quality is guarantee, extensive utilization of resources and other issues also become traditional Chinese medicinal materials industry concerns. At present, there are thousands of Chinese medicine yinpian processing enterprises in our country, but one hundred million yuan scale are numbered. Industry and heavily regulated over recent years, some small scale, weak competitiveness, the management is not standard yinpian production enterprises will gradually be eliminated by the market, industry concentration will increase further, the market competition accelerating change.