1. Steady growth in performance:
The company recorded revenue of about 367 million yuan in the medium term, an increase of 15% over the same period last year. Net profit was approximately $21.28 million, an increase of 9.3% over the same period last year. EPS: 3 HK cents.
2. E-commerce revenue increased dramatically:
The company has entered comprehensive e-commerce platforms such as Tmall, JD, Suning Tesco, Vipshop and No. 1, as well as specialized e-commerce platforms such as BeiBei.com, Mother and Child Home, Jumei Premium, Shenda.com, and new e-commerce platforms such as WeChat. Under the guidance of effective marketing strategies, the brand awareness of the product has greatly increased, and online sales have increased significantly month by month.
For the Group's fourth largest product category - the “Health and Maternal and Child Product Series” (American probiotic brand Culturelle (Culturelle), Australian weight loss and slimming brand FATBLASTER (FATBLASTER) coconut water, WIOM baby formula, BLACKMORES (BLACKMORES) fish oil, etc.) uses a combination of online and offline channels. E-commerce sales in the first half of the year were 36 million yuan.
3. The profitability of e-commerce is far better than traditional channels:
From the perspective of gross margin, e-commerce is 25-40% higher than traditional channels, which will cost a certain percentage of e-commerce expenses, and the overall net interest rate is higher than traditional channels.
4. E-commerce Strategy:
The company attaches great importance to e-commerce business and has increased e-commerce investment. Employees invest 10%, and currently revenue accounts for 10%. For newly introduced products, which focus on e-commerce sales channels, prices are currently consistent online and offline. Traditional products are still sold offline.
5. Dongdixin:
Dongdisin is the main producer of electrophysiotherapy and rehabilitation equipment. It continued to rank at the top of the physical rehabilitation and treatment segment in 2015. During the reporting period, Dongdisin's sales reached RMB 74,651,000, an increase of 4.7% over the same period in 2014. Dongdixin's performance is guaranteed, and this year's net profit is 32.04 million yuan. Dongdixin's rich product line will have a great synergistic effect with Jinhuo's channel advantages.
6. Nenjian Kawagai Loquat Cream:
Sales of Nenjian Kawanbei loquat cream fell 43.3% compared to the same period in 2014 because the registration certificate expired and needed to be replaced. The main reason was the decline in sales due to product control. The company focused its energy on Niancian loquat sugar, and its sales increased 58.72% compared to the same period in 2014.
7. Mergers and Acquisitions:
The company always has a merger and acquisition strategy. The failure of the merger and acquisition of Wuhu Zhang Hengchun Pharmaceutical Co., Ltd. was mainly due to the fact that the local working group was too slow to process the merger and acquisition, which exceeded the time limit. It had nothing to do with the company, and the advance payment had already been withdrawn. It will not affect the company's future mergers and acquisitions, cooperation with the Sinopharm Fund, and broaden the company's prospects for mergers and acquisitions. Mergers and acquisitions are mainly targets that have a synergistic effect with the company.
8. Equity incentives:
The company is actively preparing to cover frontline personnel, particularly sales personnel.
9. Cooperation with Sinopharm:
In addition to convertible bonds, Sinopharm Capital holds 18% of the company's shares, and the conversion price is HK$2.15. The company will cooperate further with Sinopharm. For example, when the company's products enter Sinopharm's strong channels, such as China's largest pharmacy chain, Guoda Pharmacy, the synergies will be further demonstrated in the future.
10. Summary and suggestions:
The future focus of the company is to continue to enrich its product line, rapid growth in e-commerce business, and continuous improvement in profitability. Cooperation with Sinopharm will further drive the growth of the company's business, and mergers and acquisitions are also worth looking forward to. The company's current market capitalization is only 800 million Hong Kong dollars. It has a rich product line and excellent channel advantages, so it is worth actively following up.