Children's drug leading enterprises officially purchased, issue price of 5.19 yuan / share

"Pharmaceutical Network Corporate News" Recently, The leading domestic company in the field of pediatric respiratory treatment - Hainan Huluwa Pharmaceutical Group Co., Ltdannounced that it will be purchased on June 29, to be listed on the main board of the Shanghai Stock Exchangethe number of shares issued in this issue does not exceed 40.1 million shares, accounting for not less than 10% of the total share capital of the company after the issue, and intends to raise 208 million yuanissue price of 5.19 yuan per share, diluted price-earnings ratio of 22.98 timesthe survey of the National Federation of Industry and Commerce Pharmaceutical Association, there are more than 6000 pharmaceutical companies in the country, of which only 10 specialize in the production of children's medicine, there are only more than 30 enterprises in the children's drug production sector, the domestic children's drug medical market accounted for more than 90% of the share of foreign-funded enterpriseswith the IPO approved by the Csrc, meaning Huluwa Pharmaceuticals will become another enterprise in the field of pediatric pharmaceutical sourcing into the capital marketdata show that huluwa drug owners camp children's drug products, covering the respiratory system, digestive system, whole body anti-infective drugs and other fieldsfor the characteristics of drugs and different age groups of demand, the company also invested in the construction of tablets, capsules, granules, soft gels, dry mixing agents, oral liquids, dispersants, pills, powder needles, freeze-dried powder needles, antimony agents and other 16 types of pharmaceutical preparation synthase production lines, for the domestic pharmaceutical enterprises with a more complete dosage formcurrently has a total of 24 varieties of oral paediatric drugs, of which oral children's special drugs (excluding adult children double cross products) a total of 17 varieties, covering children common respiratory diseases, digestive system, anti-infective drugs and nutritional drugs, ranked in the forefront of the industrydata show that respiratory drugs, digestive drugs and systemic anti-infective drugs were the company's main sources of revenue during the 2017-2019 reporting periodThe total amount ofwas RMB600 million, RMB 897 million and RMB 1.2 billion respectively, accounting for 91.64 per cent, 91.19 per cent and 92.69 per cent of total revenue from the main business in the same period, respiratory drugs are the main source of revenue, the proportion of revenue is fluctuating, but always maintained at more than 50%digestive system drugs and systemic anti-infective drugs sales revenue also increased year by year, the company by product organization of the overall income structure is more stableother drugs including cardiovascular system drugs, gynaecological drugs, nervous system drugs, skeletal muscle system drugs, urinary system medication, gas supplementation drugs and other drugs, accounting for a stable proportion of the company's incomein addition, in terms of heavy varieties, according to The Inner Net statistics show that in 2018 Huluva children's lung fever cough wheezing products (including particles and oral fluids) in the sample city retail terminal market share of 26.64 percent, of which the pediatric pulmonary hot cough wheezing particles accounted for 47.97 percent of similar products market share, ranking second in the same product According to industry statistics of the China Over-the-Counter Drug Association, Huluwa Pharmaceuticals ranked second in OTC sales of The Top 100 Industrial Children's Cold Cough Products in China in 2018 it is worth mentioning that the proportion of sales costs is almost the "common disease" of the biopharmaceutical industry, Huluwa Pharmaceuticals is no exception 2017 to the first half of 2019, Huluwa Pharmaceuticals' sales costs increased year after year, with Huluwa Pharmaceuticals' sales costs increasing from January to June 2019, 2018 and 2017, respectively, with sales costs of 268 million yuan, 388 million yuan and 146 million yuan, accounting for 43.84 percent, 39.44 percent and 22.28 percent of the total revenue in the same period Huluwa Pharmaceuticals said in the prospectus, in order to adapt to the "two-vote system" reform, the company adjusts the matching promotion and sales model, the implementation of the distributor model, the company is responsible for the professional promotion of products and bear the corresponding costs, so that marketing fees in the reporting period increased year by year the future, with the expansion of the company's business and the introduction of new products, will make the company's professional promotion costs further increase if the company's products can not be effectively promoted, or the scale of sales growth can not absorb the increase in marketing costs, will have a certain adverse impact on the company's profitability and future development from the prospectus, Huluwa this issue raised funds, about 140 million yuan will be used for marketing system construction and brand promotion projects, become the second largest use after Huluwa Pharmaceutical Valley oral solids workshop GMP expansion and research and development center upgrade