Kunpeng Project
Produced by |Bullet Finance.
Author |Meng Xiangna.
Edit |Egg total.
American Editor |Qianqian.
Audit |Ode.
After the core products have undergone a new round of price increases, Pien Tze Huang, the "Moutai in Medicine", has handed over a not eye-catching report card.
Pien Tze Huang's 2023 annual performance express report shows that its revenue in 2023 will be 1003.5 billion yuan, a year-on-year increase of 1542%；Net profit attributable to the parent company achieved 278.4 billion yuan, a year-on-year increase of 1259%。
Although the revenue exceeded 10 billion for the first time, Pien Tze Huang was not so easy to make money.
In 2023, Pien Tze Huang's net profit margin will be 2774%, down 128 percentage points. From the perspective of a single quarter, in the fourth quarter, Pien Tze Huang increased revenue but did not increase profits, with revenue of 243.5 billion yuan, a year-on-year increase of 17%; Net profit attributable to the parent company 37.9 billion yuan, down 10% year-on-year and 56% month-on-month.
From the perspective of the industry, among the "three musketeers" in the field of traditional Chinese medicine FMCG, Pien Tze Huang has the highest market value, but its revenue is at the bottom.
Specifically, Pien Tze Huang's market value exceeds 120 billion yuan, Yunnan Baiyao hovers around 90 billion yuan, and Baiyun Mountain has a market value of about 50 billion yuan. The revenue scale of Yunnan Baiyao has already exceeded 30 billion yuan, the revenue scale of Baiyun Mountain has exceeded 70 billion yuan, and the revenue scale of Pien Tze Huang has just exceeded 10 billion yuan.
Without solid performance support, Pien Tze Huang's market value will also fluctuate. As of February 19, 2024**, Pien Tze Huang reported 21231 yuan shares, more than 56% from the all-time high**, and the market value evaporated more than 160 billion yuan from the all-time high.
In recent years, Pien Tze Huang has actively expanded in the direction of cosmetics and daily chemical business, but the results have been average. Under many troubles, Pien Tze Huang has boosted its performance by raising prices of core products, but from the current point of view, this method seems to have made Pien Tze Huang enter a bottleneck period.
The predecessor of Pien Tze Huang, Zhangzhou Pharmaceutical Factory, was established in 1956 and exclusively produces Pien Tze Huang series products; In 1999, Zhangzhou Pien Tze Huang Pharmaceutical Co., Ltd. was restructured and established, and was listed on the Shanghai Stock Exchange in June 2003.
In 2006, Pien Tze Huang became one of the first batch of "China Time-honored Brand" enterprises recognized by the Ministry of Commerce.
Pien Tze Huang's life experience is quite legendary. It is said that during the Jiajing period of the Ming Dynasty, a court doctor from southern Fujian was dissatisfied with ** fled the palace with a secret recipe, cut his hair as a monk in the Pushan Rock Temple outside Zhangzhou City, and used the secret recipe he carried to refine the medicine hanging pot to help the world, because of its curative god, named "Pien Tze Huang".
In Hokkien language, inflammation is collectively referred to as "Huang", "Tsai" is a modal word, and the literal meaning of Pien Tze Huang can be understood as "one piece can reduce inflammation and relieve pain".
The official said that Pien Tze Huang has the effects of clearing heat and detoxifying, cooling blood and removing blood stasis, reducing swelling and relieving pain, and can also be used for acute and chronic viral hepatitis, carbuncle boils, nameless swelling and poison, bruises and various inflammations caused by heat poisoning and blood stasis; And Pien Tze Huang is a traditional Chinese medicine formula with a confidential formula level of "national top secret".
In 2011, the "Pien Tze Huang Production Technique" was included in the national intangible cultural heritage and the national first-class protected varieties of traditional Chinese medicine, and its main raw materials include musk, bezoar, snake gall bladder and notoginseng. Among them, medicinal materials such as musk and bezoar are scarce.
Scarce raw materials, national top-secret formulas, and well-known brands constitute the "moat" of Pien Tze Huang.
Photo.com, based on VRF protocol).
In the past few years, the price of Pien Tze Huang's core products has also continued to rise. It is reported that Pien Tze Huang series products include Pien Tze Huang lozenges, Pien Tze Huang capsules and compound Pien Tze Huang lozenges, among which Pien Tze Huang lozenges dominate.
Since 1999, Pien Tze Huang lozenges have increased their prices 21 times in the past 25 years, from the initial 110 yuan to 760 yuan, which is more than one gram, nearly 6 times.
From the perspective of business type, liver disease drugs based on Pien Tze Huang lozenges account for about 40% of the company's revenue, but the gross profit margin is as high as more than 80%, contributing more than 70% of the company's profits.
Therefore, with the increase in the price of the core product Pien Tze Huang lozenges, the company's performance has also increased, and the revenue has increased from 18.4 billion yuan, an increase to 869.4 billion yuan, and the net profit attributable to the parent company increased from 50.05 million yuan in 2000 to 24 in 20227.2 billion yuan.
Especially in 2021, Pien Tze Huang's revenue will reach 802.2 billion yuan, a year-on-year increase of 23%, and the net profit attributable to the parent company reached 243.2 billion yuan, a year-on-year increase of 45%. This is mainly due to the price increase of Pien Tze Huang lozenges in 2020, the retail ** in the domestic market will be raised from 530 yuan to 590 yuan, and the overseas market will be raised by about 5$80 capsules.
Also in 2021, Pien Tze Huang's share price "rises and lifts all boats", reaching a maximum of 48792 yuan shares, with a total market value of nearly 300 billion yuan, completely surpassed Yunnan Baiyao in the field of traditional Chinese medicine and became a "leader in traditional Chinese medicine".
However, Pien Tze Huang's performance growth has slowed down significantly in the past two years. In 2022, Pien Tze Huang's performance growth rate will hit a new low in the past eight years, and the revenue growth rate will only be 838%；The growth rate of net profit attributable to the parent company is as low as 166%。
In May 2023, Pien Tze Huang announced another price increase. The retail sales of Pien Tze Huang lozenges in the domestic market were raised from 590 yuan to 760 yuan per tablet, with a corresponding increase of 29%, the highest increase in history; At the same time, the overseas market has also made corresponding adjustments, about 35 US dollars.
Objectively, this price increase has a certain effect on the performance improvement, but it has not driven Pien Tze Huang's performance to achieve substantial growth.
In 2023, Pien Tze Huang's revenue will be 10035.5 billion yuan, a year-on-year increase of 1542%；Net profit attributable to the parent company 278.4 billion yuan, a year-on-year increase of 1259%, there is still a lot of gap between the performance growth rate and 2021.
From the perspective of a single quarter, in the fourth quarter of 2023, Pien Tze Huang will increase revenue without increasing profits, and its revenue will reach 243.5 billion yuan, a year-on-year increase of 17%; Net profit attributable to the parent company achieved 37.9 billion yuan, down 10% year-on-year and 56% month-on-month.
So, why is it difficult to drive the rapid growth of Pien Tze Huang's performance when the price increase of core products is this time?
From an objective point of view, in recent years, the raw materials of Chinese herbal medicines have continued to be used, which has led to a decline in the gross profit margin of liver disease drugs and cardiovascular and cerebrovascular drugs.
Since 2023, the **** of some Chinese herbal medicines is still in the ** channel, which is behind the supply of Chinese herbal medicines affected by factors such as changes in supply and demand, production reduction in production areas and improvement of medicinal material standards, which also leads to the cost of raw materials for Pien Tze Huang, and the gross profit margin of the pharmaceutical manufacturing industry, which accounts for the largest proportion of profits, is under pressure and profitability is weakening.
Pien Tze Huang is a national secret formula, but there are 4 flavor ingredients that are public, namely musk, bezoar, snake gall bladder and notoginseng. Pien Tze Huang's 2022 annual report shows that except for musk and snake gall bladder, which need to obtain administrative permission from the national forestry department and organize procurement in strict accordance with relevant national regulations, the rest of the Chinese herbal medicines are purchased through market channels, and the procurement is accompanied by the market.
There are four types of bezoars: natural bezoars, in vivo cultivated bezoars, in vitro cultivated bezoars and artificial bezoars. Natural bezoars are actually dried gallstones from cattle.
Since 2023, the ** of natural bezoar has continued, according to the Chinese herbal medicine world network, the ** of natural bezoar will rise from 400,000 yuan kg to 1.6 million yuan kg in 2023, an annual increase of 300%.
In terms of raw materials, Pien Tze Huang's core business, pharmaceutical manufacturing, is under pressure on gross profit margins. Even though the price of the core product Pien Tze Huang lozenges has been increased by nearly 30%, the impact of raw materials is greater, and the gross profit margin is still there.
In the first three quarters of 2023, the gross profit margin of Pien Tze Huang's pharmaceutical manufacturing industry will be 7524%, a year-on-year decrease of 311 percentage points. Among them, the gross profit margin of liver disease drugs (mainly including Pien Tze Huang lozenges and capsules) was 7819%, a year-on-year decrease of 215 percentage points; The gross profit margin of cardiovascular and cerebrovascular drugs was 40%, a year-on-year decrease of 752 percentage points.
Picture: Pien Tze Huang announcement).
Pien Tze Huang also admitted that the shortage of resources has caused great challenges to the supply of Pien Tze Huang's raw materials, and in the future, raw materials will put upward pressure on the cost of Pien Tze Huang and its series products.
Under the pressure of performance development and fierce market competition, Pien Tze Huang is actively looking for the "second growth curve".
According to the observation of Jiemian News Bullet Finance, in recent years, Pien Tze Huang has been working hard to promote the transformation of industrial diversification and product diversification. However, the new layout of cardiovascular and cerebrovascular drugs, cosmetics, daily chemicals and other businesses in the current profit contribution is small, and the diversification effect is not good.
In 2014, Pien Tze Huang put forward the development strategy of "one core and two wings", with pharmaceutical manufacturing and production as the leader, and health care products, health food, cosmetics with special effects, and daily chemical products as the two wings.
In terms of cosmetics business, Pien Tze Huang's cosmetics business is a subsidiary, Fujian Pien Tze Huang Cosmetics***, which owns brands such as "Pien Tze Huang" and "Queen", covering skin care and toiletry products.
In terms of daily chemical products, Pien Tze Huang cooperates with Shanghai Jahwa, and its products are mainly positioned as "clear fire", including toothpaste and mouthwash.
However, in recent years, the revenue of Pien Tze Huang's cosmetics and daily chemical business segments has declined. In 2021, the revenue of Pien Tze Huang's cosmetics and daily chemicals sectors will be 8400 million yuan, down 7 percent year-on-year05%。In 2022 and the first three quarters of 2023, the revenue of Pien Tze Huang's cosmetics segment will be 63.4 billion yuan, 4300 million yuan, a year-on-year decline. 53%, accounting for about 10% of the annual revenue and profit contribution.
At present, Pien Tze Huang is promoting the spin-off and listing process of its subsidiary Pien Tze Huang Cosmetics, but it is still unknown whether the cosmetics sector can be listed independently under the condition that the IPO rhythm is moderately tightened.
In addition, Pien Tze Huang has also expanded new businesses through extended mergers and acquisitions. In July 2020, Pien Tze Huang acquired Longhui Pharmaceutical, obtained 51% of its equity, and won more than 100 kinds of drugs such as Angong Niuhuang Pill.
However, at present, the business volume of Angong Niuhuang Pill still accounts for a small proportion. In the first half of 2023, the revenue of cardiovascular and cerebrovascular drugs dominated by Angong Niuhuang Pill will be 19.6 billion yuan, accounting for only 3 percent of Pien Tze Huang's total revenue88%, and the proportion of profit is only 33%。
Overall, Pien Tze Huang's business still relies on Pien Tze Huang lozenges and other products, and the scale of cardiovascular and cerebrovascular drugs and cosmetics business is still small, and it needs to continue to make follow-up efforts.
From the perspective of internal management, Pien Tze Huang's senior management has changed greatly, which has also adversely affected the company's development.
Since 2021, Pien Tze Huang has changed its chairman three times. Since 2023, at least four executives of Pien Tze Huang have been investigated.
According to the data, Liu Jianshun has served as the chairman of Pien Tze Huang since December 2014, and applied for early retirement in April 2021 and resigned as the chairman of the company. After Liu Jianshun's resignation, Pan Mingli served as the chairman.
But only 8 months apart, Pien Tze Huang received a written resignation report submitted by Chairman Pan Jie, and in December 2021, Lin Weiqi took over as Chairman of Pien Tze Huang.
However, Lin Weiqi resigned after less than two years in office. On the evening of July 24, 2023, Pien Tze Huang announced that Lin Weiqi resigned from the board of directors as the company's chairman, director and member of the special committee under the board of directors due to work adjustments.
Interestingly, in the announcement of the resignation of the three chairmen, Pien Tze Huang had a high opinion of Liu Jianshun; When Pan Jie stepped down, Pien Tze Huang specially thanked him for his hard work in the company; However, after Lin Weiqi resigned due to work adjustments, Pien Tze Huang's board of directors did not summarize his work in the announcement.
In addition, it is worth noting that Liu Jianshun and Pan Jie were both investigated after their resignations.
On August 22, 2023, the official website of the Commission for Discipline Inspection and Supervision of Zhangzhou City, Fujian Province, announced that Liu Jianshun, the former secretary of the Party committee and chairman of Pien Tze Huang, constituted a serious violation of duty and was suspected of ** crime, and was expelled from the party, and his suspected crime was transferred to the procuratorate for review and prosecution in accordance with the law.
Photo.com, based on VRF protocol).
On May 10, 2023, the Zhangzhou Municipal Commission for Discipline Inspection and Supervision reported that Pan Jie is currently undergoing disciplinary review and supervision investigation by the Zhangzhou Municipal Commission for Discipline Inspection and Supervision on suspicion of serious violations of discipline and law.
In addition to the investigation of the two former chairmen of the company, in 2023, many veterans of Pien Tze Huang will also be announced to be investigated.
In May 2023, Pien Tze Huang announced that it had received a notice from the discipline inspection and supervision department that Liu Congsheng, the company's director and deputy general manager, was under disciplinary review and supervision investigation by the Zhangzhou Municipal Commission for Discipline Inspection and Supervision on suspicion of serious violations of law and discipline. In June, the Zhangzhou Municipal Commission for Discipline Inspection and Supervision notified Yang Puquan, the former vice chairman of Fujian Pien Tze Huang Cosmetics, a subsidiary of Pien Tze Huang, that he was placed on file for investigation due to serious violations of discipline and law.
In addition, Pien Tze Huang's senior management changes are also more frequent.
On June 8, 2022, Pien Tze Huang issued 4 announcements on the change of senior management in a row, involving directors, secretary of the board of directors, deputy general manager Chen Jipeng, director Lin Liuqiang, supervisor (chairman of the board of supervisors) Hong Dongming, supervisor He Jianguo and supervisor Wu Xiaohua, all of whom resigned due to work adjustments.
After his resignation, Pien Tze Huang's "veteran" Chen Jipeng still serves as the deputy secretary of the Party Committee of the Zhangzhou Pien Tze Huang Pharmaceutical Co., Ltd. Committee of the Communist Party of China, Hong Dongming still serves as the chairman of the company's labor union, and the rest no longer hold any positions in the company.
On January 18, 2024, Pien Tze Huang issued another announcement stating that Mr. Chen Jipeng submitted a resignation report due to work adjustment and decided to resign from his position as a supervisor and chairman of the board of supervisors of the company.
Generally speaking, frequent changes in senior management mean that the company's management lacks stability, which will affect the company's development layout and the implementation of corresponding strategies to a certain extent. In the past two years, Pien Tze Huang's performance growth has declined, which may be related to frequent changes in senior management.
At present, Pien Tze Huang, who was once out of the circle with "miracle medicine", is gradually stepping down from the altar in the capital market. As of February 19, 2024**, Pien Tze Huang reported 21231 yuan shares, more than 56% from the all-time high**, with a market value of only 128.1 billion yuan, evaporating more than 160 billion yuan from the all-time high.
Can "Yao Mao" Pien Tze Huang open up a new world outside the core product Pien Tze Huang? What is the future of price increase and diversification strategies? Interface News Bullet Finance will pay attention to it for a long time.
The title picture in the article comes from: Pien Tze Huang Pharmaceutical's official website.