Medical network on March 27 - on March 25, method group, dhi sichuan pharmaceutical, kunming, ridge pharmaceutical, xiangxue pharmacy, river pharmaceutical six Chinese medicine listed companies released its 2016 report card. Although this six Chinese medicine enterprises chose to release report on the same day, but their performance difference is very big, some net profit rose 36.06%, also some net profit fell 62.67%. 

 

Released from six companies earnings, revenue is the most method group, its 2016 revenue of 7.651 billion yuan. Net profit is the highest economic sichuan pharmaceutical co., last year's net income is 934 million yuan, profits and it is also the fastest growing enterprise, increased 36.06%; The six companies in the lowest revenue is the river in the pharmaceutical industry, realize the revenue of 1.562 billion yuan last year, and is the most serious decline in revenue, revenue fell 39.87% in 2016. The net profit fell the most serious is xiangxue pharmacy, belonging to shareholders of listed companies in 2016 net profit fell 62.76% year-on-year in 2015. 

 

Several glad several sorrow! 6 companies annual reports on the same day, as it is just the 3 years of revenue and net profit growth, and the other three are declining trend, similar enterprises, the performance gap is what should be the sentence: "happy people are all the same, unfortunately, people have their own misfortune." 

 

, of course, was the transformation of traditional Chinese medicine industry in 2016, two votes, auxiliary medicine directory, change to add, drop pills than policy implementation, such as stirring industry everyone no peace, but why some enterprises can grow? And some companies are moving? 

 

1 why grow? 

 

Group method to be LeXiao metaphors on street corners, and the impression left to industry is its strong marketing ability. In 2016, the method shows the total revenue of 7.615 billion yuan, a 15.58% year-on-year growth in 2015, net profit is 829 million yuan, up 25.83% from a year earlier. These two growth figures are higher than the average of the pharmaceutical industry growth. 

 

Method group grow, however, surprisingly it take charge of the growth of the variety factors ginseng and astragalus injection, the product to be group contributed 1.679 billion yuan in 2016 operating income, increased by 9.31% from a year earlier. Although the growth have declined from 17.2% in 2015, but its been more facts as adjuvant directory, which is listed counter attack. E medicine managers gain information from industry research is that many are on adjuvant directory products have fallen type precipice, and even some companies that feel company is about to cross. 

 

Method group was also able to buck the trend is still rely on its strong marketing capability. But from the perspective of industry development, added to the list of products, auxiliary medicine directory for the future development will be further restricted, so we can see the group method these two years in biological medicine research and development work, and by the outside world. 

 

In fact, in the pharmaceutical industry, the fact to proprietary Chinese medicine, and can do great varieties, marketing ability absolutely not generic drug companies can be compared, look at the past rows of prescription drugs in the TOP 20 list of TOP products in China will know, in China, traditional Chinese medicine (TCM) has "sui generis" marketing. 

 

Dhi sichuan pharmaceutical industry can achieve net profit growth of 36.06% is the intuitive reflect its marketing ability. In 2016, sichuan pharmaceutical industry to achieve revenue 4.678 billion yuan, an increase of 24.15% from the 2015, belonging to shareholders of listed companies net profit of 934 million yuan, increased by 36.06% year-on-year. 

 

Reasons for the growth, because during the reporting period the company dhi sichuan pharmaceutical said rush to blue antiphlogistic oral liquid and rabeprazole sodium enteric capsules, infantile loosened up heat particles such as product sales continue to grow. And shore up the earnings growth is sharply pharmaceutical domhke integration, 2016 domhke pharmaceutical achieve revenue growth of 88.6% year-on-year. In addition, it is worth mentioning the main varieties of floor blue antiphlogistic oral liquid has annual sales more than $2016 to $2 billion. Comprehensive view, economic sichuan pharmaceutical is endogenous growth and extension m&a double drive, have achieved good development. 

 

Another fairly fast growth in ridge pharmaceutical enterprises, its 2016 revenue of 3.82 billion yuan, increased by 19.95% year-on-year, belonging to shareholders of listed companies net profit of 542 million yuan, increased by 25.91% year-on-year. For growth, the main ridge pharmaceutical industry, according to the annual report is to optimize the marketing. 

 

For the above-mentioned three companies, in fact is the current development situation, is still a traditional Chinese medicine products in charge, but in the subsequent development line to open, both its input and product force, weak as a whole. As a result, the three companies now continue deepening the current market on the one hand, on the other hand is to carry on the strategic transformation, such as group method in the biological medicine research and development, whereas ridge pharmaceutical medicine plate of spending, sichuan pharmaceutical, rich product line through acquisitions. The reasoning behind this is now, for drug approval has not been as casually as he used to get just a heap of traditional Chinese medicine to make money, but is extremely strict review process, so that for most of the Chinese traditional medicine enterprises, each year on research and development expense accounts for only about 1% to the cost of marketing, it's hard to continue to a breakthrough in traditional Chinese medicine (TCM). 

 

2 difficult transition 

 

Look at performance decline in kunming group, xiangxue pharmacy, the river on the pharmaceutical companies, 3 is not hard to find, they are all in the transformation and upgrading. Xiangxue pharmacy is from proprietary Chinese medicine production and sales, to the traditional Chinese medicine (TCM) full transformation of the industrial chain, the kunming group is the ongoing marketing changes, is asset stripping the river on the pharmaceutical industry, in order to fully in the health field. 

 

Xiangxue pharmacy 2016 revenue of 1.862 billion yuan, increased by 27.1% year-on-year, while net profit year-on-year scare 62.76%. Over the past year, the madman, xiangxue pharmacy is m&a has scored Johnson pharmaceutical, create beauty pharmaceutical, day and camp yuan tong Chinese medicine's seven companies, such as its goal from proprietary Chinese medicine to Chinese medicine yinpian transformation. Didn't happen overnight, but any transition will have a traumatic event, but over the past year of snow in mergers and acquisitions at the same time, also have been adjusted to their business management pattern, so that the proprietary Chinese medicine sector income appear relatively steep decline, but on the other hand, for its day to adjust the Chinese medicine yinpian, hubei also makes the original sales model suddenly deformation, leading to decline in performance. 

 

In fact, the xiangxue pharmacy is to transform as most Chinese medicine enterprises are facing and the problems faced, on the one hand, under the influence of various policies, backlog downward market marketing strength of the company, and lack of competitiveness of proprietary Chinese medicine first to be affected; On the other hand, for most of the traditional enterprise, research and development is a fable. So as listed earlier has listed on the proprietary Chinese medicine enterprises, use capital means transformation, but the present stage is itself has been in decline, leave a company run time too little. 

 

Kunming group 2016 revenue of 5.1 billion yuan, rose 3.7%, belong to the parent company shareholders net income of 407 million yuan, down 3.23% year-on-year. Underlie the declining performance change from marketing. In the past year, kunming began marketing model change, mainly fine marketing, so that costs rose sharply, cost of sales increased 34.2%. Unlike xiangxue pharmacy integral transformation, kunming group only in the local, therefore, from the decline in performance, is not serious, but the reality is that the marketing reform stands the industry change the inspection, still must be time. 

 

Coming a sharp drop in revenue is the river on the pharmaceutical industry, its annual revenue of 1.562 billion yuan last year, down 39.87% from 2015. If for reasons the explanation is given priority to 2015 foreign factors, to transfer the jiangxi kyushu, through operating income fell 12.09% year-on-year. In two votes, but the meaning behind is, changing from camp to gain big policy is pushing for the present, the industrial enterprises had to sell the commercial sector. And other factors, the river on the pharmaceutical subsequent poor products, and had a 1 billion yuan jianwei xiaoshi slices of the incremental sales co., LTD., and meets the industry policy execution and channel control factors, such as, to rely on item, such as the river on the farmland, wind, can bring about the surging of the decline in performance, after all, their ability is lower than the risk is too weak. 

 

Actually, it is obvious, such as method, ridge, and economic sichuan as main varieties are not decline began to carry on the strategic transformation, on the whole, introduced for TCM products restrictions for the current policy, and connection of space and time, and for such as xiangxue pharmaceutical enterprise of this kind of product competitiveness is not strong, if later will appear a transition in the decline of the performance. And the river on this kind of enterprises by the item, to enhance the risk resistance ability is the problem to be solved.