1. Company performance:
In mid-2016, the company recorded a turnover of about 418 million yuan, down 14.38% from the same period last year.
The profit attributable to the owners of the parent company is about 131 million yuan, down 14.77 per cent from the same period last year. Profits in the second half of this year are expected to be basically the same as those in the first half of this year. The decline in revenue and profit is due to the recovery of Lei Yi's total distribution rights and the recovery of inventory, which is currently being digested.
2. Lei Yi de:
The company has always wanted to recover the general agency, the strength of the distributor is limited, and the agency enterprise has changed. Acquired by China Pharmaceutical, internal investment is reduced. We did not pay attention to it for half a year and did not arrange to pick up the goods in accordance with the contract, so the company decided to do it on its own.
Lei easy handover situation, smooth handover, inventory recovery. For the agent team, do well, take reservations, do not do well, by the company's team to do.
Only a few provinces failed to apply for Lei's easy tender. Keep 15 provinces winning the bid. The price is maintained in good condition.
The company did not participate in the price war and will not do so in the future. The company has a long-term goal to take the international route.
The international market is being done in Southeast Asia and other countries; the certification of FDA in the United States is also being discussed with foreign enterprises.
3. Lei Yide looks forward to:
Actual sales were 18 million in the first half and 80 million to 100 million in the second half of the year. Inventory is estimated to be disposed of by June 2017.
4. Performance outlook:
Profits in the second half of the year are basically the same as those in the first half, returning to the 2015 level in 2017, and the second half of 2017 is expected to be better than the first half.
5. Research and development:
The company attaches great importance to research and development, currently rich in cash, mainly used for research and development and mergers and acquisitions of good varieties. Consistency evaluation will continue to be done, for each variety. Cooperate with Zhongshan Kangfang to set foot in creating new drugs and strengthen new drug development. Kangfang is mainly engaged in the development and manufacture of innovative monoclonal antibody drugs for the treatment of cancer, autoimmune diseases, inflammation and cardiovascular diseases. The leading product will complete the first phase of the clinical trial this year, striving for 5 years to complete all the processes and put them on the market.
6. Esomeprazole:
Proton pump inhibitor esomeprazole after the market sales prospects will be very broad, is an injection, only 2 approved in China, sales will exceed entecavir, AstraZeneca PLC's original drug sales in the domestic scale of several billion.
7. Jieshi Tong:
Jess is equally added to the catalogue. It is expected that the volume will be very soon next year, with a target sales of 10 million boxes, which will be reached in 4 years. From the feedback from urologists, the effect is very significant. Phase 4 clinical, plus the indication of gout.
8. Two-vote system:
The two-vote system will have an impact on the company, but it is not big on the whole. The company wins by quality, has been standardizing its operation, and will comply with the regulations. I believe it will be handled very well.
9. Mergers and acquisitions:
The company's current variety is not dominant, the company is strong marketing ability, is the excellent quality of products. To return to the top 100 pharmaceuticals. Relying on internal endogenous growth, we also have to rely on mergers and acquisitions. At present, we are also paying attention to a number of targets, among which there are more than 1 billion of expired patent drugs acting as agents of multinational corporations. Equity mergers and acquisitions are also being fought for.
10. Summary and suggestions:
The company has better cost control and payback, outstanding product quality and brand, proper bidding strategy, and certain advantages. Lei Yi's influence is temporary. In the long run, the company will get back the right of distribution, with the company's sales ability. Long-term is conducive to the sales of Lei Yi products, but also can improve profit margins, the company also has great confidence in the new variety Esomeprazole, I believe there will be a larger market space. The company returned to growth in the second half of 17 years, and its current valuation is low.