List of high-quality authors
Reporter丨Zhang Feitao Trainee丨Xia Lu
Produced by丨Aotou Finance (thesankei).
Liu Pharmaceutical Group (603368SH), Northeast Pharmaceutical (000597SZ), Pien Tze Huang (600436SH), Hisun Pharmaceutical (600267SH), Yifeng Pharmacy (603939sh）……Recently, a number of senior executives of pharmaceutical companies have resigned, and the pharmaceutical industry has reappeared in personnel turmoil.
According to incomplete statistics, in the past month (January 17-February 17), as many as 29 listed companies have had personnel changes.
Behind the "exodus" of senior executives, it reflects the current decline in the performance of the pharmaceutical industry, the painful period of transformation, and the emergence of corruption.
Some voices believe that with the deepening of the new medical reform, the market environment of the domestic pharmaceutical industry has changed very much, and in order to adapt to the environment, it is normal for the industry to have frequent talent flow.
The performance of pharmaceutical companies is differentiated
Entering 2024, there will be intensive changes in the senior management of listed companies in the pharmaceutical industry, and in the past month, there have been personnel changes in the senior management of 29 listed companies. There is no shortage of large ginseng forests (603233SH), Huaren Pharmaceutical Co., Ltd. (300110.)SZ), Yunnan Baiyao (000538SZ), Mingde Biotech (002932SZ) and other well-known pharmaceutical companies.
Behind the turmoil in the personnel of senior executives of pharmaceutical listed companies, the performance of pharmaceutical companies has collectively stalled.
According to data from Oriental Wealth Choice, as of January 30, 230 companies in the A-share pharmaceutical sector have disclosed their 2023 performance forecasts, of which 94 are expected to have a loss in net profit, accounting for about 40%.
Neptune Bio (000078.)SZ), Remegen Biotech (688331SH), CanSino (688185SH), Dizhe Pharmaceutical (688192SH) has the largest loss, and it is expected that the net profit loss attributable to shareholders of listed companies in 2023 will be more than 1 billion yuan.
Aotou Finance found that on the one hand, the performance loss of pharmaceutical companies was due to the impairment of assets, accounts receivable, inventory, etc., which affected profits; On the other hand, high selling expenses eat into profits.
ChemPartner (300149.)SZ) expects a net profit loss attributable to shareholders of listed companies in 2023 to be 72.5 billion yuan-94.5 billion yuan, a year-on-year change from profit to loss. The main reason for the change in performance is that the amount of impairment of the company's goodwill and long-term assets in 2022 totaled about 52.7 billion yuan.
Yangtze River Health (002435SZ) expects a net profit loss attributable to shareholders of listed companies in 2023 to be 6$500 million to $8900 million yuan, one of the reasons for the loss is that the company has conducted a preliminary assessment and calculation of the acquired goodwill assets of Hainan Hailing Chemical Pharmaceutical, and intends to make a provision for goodwill impairment of about 6500 million yuan.
The excessively high sales expenses of pharmaceutical companies are the focus of market attention. According to statistics, in the first half of 2023, the sales expenses of 139 pharmaceutical companies totaled 44.8 billion yuan, compared with 41.1 billion yuan in the first half of 2022, a year-on-year increase of **9%.
From 2020 to 2022, the sales expenses of unnamed pharmaceuticals will be about 28.6 billion yuan, 34.5 billion and 29.2 billion yuan, and the sales expense ratio was respectively. 7% and 819%, both above 80%. It is expected that the net profit attributable to shareholders of the listed company in 2023 will be a loss of 243.4 billion yuan to 345.1 billion yuan, a loss of 146.8 in the same period last year980,000 yuan, the loss expanded year-on-year.
Lingkang Pharmaceutical Co., Ltd. (603669.)SH) 2022 revenue of 28.9 billion yuan, expenses for sales 23.7 billion yuan. Among them, the marketing service fee amounted to 22.9 billion yuan, accounting for 96% of sales expenses84%。The third quarter report of 2023 shows that the main revenue is 15.1 billion yuan, a year-on-year decrease of 4002%；Net profit attributable to the parent company - 9658250,000 yuan, a year-on-year decrease of 3902%；Non-net profit is deducted - 12.1 billion yuan, down 55 percent year-on-year98%。
Yuanxin Technology, which has submitted to the Hong Kong Stock Exchange five times and finally passed the listing hearing this year, has a net loss of 3 in 2020-2022 and the first half of 20236.3 billion yuan, 75.7 billion yuan, 80.5 billion and 4$4.2 billion, with an adjusted net loss of $31.3 billion yuan, 62.1 billion yuan, 69.6 billion and 39.1 billion yuan, with a cumulative loss of more than 2 billion yuan, and the loss has expanded year by year.
An important reason for the loss of Yuanxin Technology lies in the high cost of sales and sales expenses. According to the prospectus, from 2020 to 2022 and the first half of 2023, the company's sales and marketing expenses in the same period will be 49.5 billion yuan, 81.9 billion yuan, 102.7 billion and 5$5.7 billion, sales rate. 2% and 12%.
Regulators have also paid attention to the high sales expenses of pharmaceutical companies. Since last year, a number of listed pharmaceutical companies have received inquiry letters or regulatory letters from the exchange due to the issue of sales expenses, asking for explanations for higher sales expenses.
A number of executives of pharmaceutical companies were investigated
Under the sweep of the "anti-corruption storm" in the pharmaceutical field, the corruption of many executives has "surfaced", mainly involving information disclosure violations, bribery or bribery, duty crimes, insider trading, trading, fraudulent issuance, market manipulation, misappropriation of funds, etc.
In January 2024, Sinopharm Modern (600420.)SH) former chairman Zhou Bin was investigated on suspicion of serious violations of discipline and law; From September to November 2023, Shanghai Pharmaceutical (601607SH) 6 senior executives were investigated, including former chairman and retired vice president; In July 2023, Weining Health (300253SZ) former chairman Zhou Wei was investigated and placed in custody on suspicion of bribery, and then Sailen Biotech (688163SH) The former chairman of the board of directors was also placed in custody and placed on file for investigation on suspicion of duty crimes.
In order to rectify corruption in the pharmaceutical field, in August 2022, the National Health Commission and ten departments launched a one-year national centralized rectification of corruption in the pharmaceutical field, and so far, more than 100 hospital presidents and secretaries have been investigated.
An industry researcher told Aotou Finance that executive corruption will have negative effects on pharmaceutical companies, such as reputational damage, economic losses, management chaos, legal risks, and lack of social responsibility. Pharmaceutical enterprises should establish a sound internal management system, strengthen supervision and auditing, improve the legal awareness and professional ethics of employees, and create a clean corporate culture. At the same time, the society should also strengthen the supervision of the pharmaceutical industry, increase the crackdown on corruption, and jointly maintain the healthy development of the pharmaceutical industry.
Facing the pains of transformation
Many pharmaceutical companies have accelerated their transformation to find new growth points, but the transformation has not met expectations and has fallen into a painful period.
Luoxin Pharmaceutical Co., Ltd. was once a leading antibiotic company, and since its backdoor listing, its performance has declined significantly. The company is transforming into an innovative pharmaceutical company, but the transformation is not as expected, and the performance is still in the red.
Hengrui Pharmaceutical's revenue and net profit continued to decline, and the innovative drug business could not support the company's performance. The company is working hard to transform into innovative drugs, but the transformation faces many challenges.
Erkang Pharmaceutical is preparing to transform into a dual main business of "medicine and new energy", and is currently carrying out the upstream layout of the lithium carbonate industry chain, focusing on promoting the development of lithium mines. Recently, Erkang Pharmaceutical released a performance forecast, and it is expected that the net profit loss attributable to shareholders of listed companies in 2023 will be 14.8 billion yuan-19.8 billion yuan.
In order to boost market confidence, a number of pharmaceutical companies have repurchased shares. On February 18, seven pharmaceutical companies, including Zhijiang Biological, Zhongyuan Concord and Xuantai Biological, announced that they planned to repurchase the company's shares through centralized bidding transactions.
Wind data shows that since 2024, 84 pharmaceutical companies, including WuXi AppTec, Gloria Young, and Dong'e Ejiao, have disclosed board plans or shareholder proposals to repurchase the company's shares, compared with only 11 in the same period in 2023. The maximum proposed repurchase amount of these 84 pharmaceutical companies reached 118$2.7 billion, compared to $37.1 billion yuan. The number of pharmaceutical companies to be repurchased and the amount of repurchase have increased significantly.