Chijin pharmaceutical industry online red concept is just hype? Maybe there's a deep sense behind it.

Medicine Network May 25th, Via, Li Jiaxuan, Liu Tao, Dong Mingzhu..In today's online red economy, a network red with goods sales capacity can kill a "well-trained" sales team: 5.17 snack festival Via with 390 million Li Jiaxuan sales of 350 million, Liu Tao live debut with goods sales of 148 million, CCTV "four kings" live 3 hours with 500 million yuan, Dong Mingzhu East live sales of more than 700 million ..Not only that, live network red "with shares" ability is also not inferior, especially with goods "one sister" Via and with goods "one brother" Li Jiaxuan two people most concerned, so that the major listed companies have recently found the network red for their platformMay 19, Chijin Pharmaceuticals said on the interactive platform, the company's subsidiary Qianjinfang and Via cooperation, the company's research institute independently developed products natural laundry liquid liveAs a result of the news, Chijin Pharmaceuticals' share price rose sharply at near lying around 2 p.m., closing up 4.74 percent, with a market capitalization of 3.888 billion yuanchart 1 Thousand Gold Pharmaceuticals on May 19 share price trend
and on May 20, Chijin Pharmaceuticals shareprice after the rally after the opening of the rally, as of the close down nearly 2 points, due to the net red concept brought about by the rise of fewerAccording to statistics, A-share listed companies "net red live" concept shares have reached 51, it seems that the market has "clearly" realized that this is only a concept speculationChart 2 Thousand Gold Pharmaceuticals May 20 share price trend
Chart 3 part of the net red concept May 20 rise
Chijin Pharmaceuticals is really just a hype? In fact, behind this superficial concept, there may be a deeper meaning: the company began a strategic transformation, focusing on the sales strategy to bring the driving role to performanceAs a batch of domestic early listed state-owned enterprises, Chijin Pharmaceuticals since 2004 was listedFrom the business situation in previous years, the business growth rate is still good, maintained double-digit, but in the last three years the business development is obviously tired, revenue fell to single digits year-on-yearThe same trend can be seen from the change in the net profit of the mother, i.ethe net profit of the mother has continued to decline since 2017Chart 4 Company's revenue situation in the last five years (BILLION yuan)Source: Tonghuashun, Zhongkang Industrial Capital Research CenterChart 5 Company's net profit situation in the last five years (RMB 100 million)Source: Tonghuashun, Zhongkang Industrial Capital Research Centermentioned state-owned enterprises, we will have some labels in mind: management flat, insufficient investment, poor brand management ..As a state-owned enterprise, Chijin Pharmaceuticals has relatively high-quality assets, but there is also a problem of poor managementfrom the company's sales input in recent years: First, the number of sales staff growth in the last two years is relatively obvious, the number of sales staff in 2019 increased by 9% to 2762 people, from the composition of the staff, the proportion of sales staff in the last two years is also rising, to reach 55% in 2019; Although the company to strengthen fee control can increase profits, but it is not the lower the cost the better, a certain sales expense rate is the maintenance of thebusiness in the future to maintain steady growth of the source of powerChart 6 Company sales staff in the last five years
source: Tonghuashun, Zhongkang Industrial Capital Research CenterChart 7 Company sales expense rate in the last five years
source: Tonghuashun, Zhongkang Industrial Capital Research Centertherefore, this Qianjin Pharmaceuticals actively follow up the concept of corporate products online red sales, although there is no guarantee that the net red live band goods can finally contribute to the company's income and profits, but this may be a strategic transformation And this is precisely the most critical first step that Chijin Pharmaceuticals may take towards an inflection point!