China Resources pharmaceutical's revenue is 139.3 billion yuan! Who will be merged in 2017?

On March 17, China Resources pharmaceutical released its first report card since its listing, achieving a revenue of 139.3 billion yuan and a net profit of 5.3 billion yuan, with an overall growth comparable to that of the industry However, China Resources, which holds a large amount of money after listing, is planning a large-scale merger and acquisition In 2017, the merger and acquisition of bio medicine will be accelerated, while the pharmaceutical business will launch merger and acquisition attacks on regional leaders In 2016, China Resources pharmaceutical achieved a revenue of HK $156.705 billion (about RMB 139.3 billion), an increase of 6.9% (RMB 13.9% growth) compared with 2015, and a net profit of about RMB 5.3 billion China Resources pharmaceutical's operating revenue is mainly composed of pharmaceutical, pharmaceutical distribution and pharmaceutical retail, accounting for 14.3%, 83.2% and 2.5% of the revenue respectively The three business sectors increased by 11.2%, 14.4% and 14.2% respectively compared with 2015 Among them, the revenue of pharmaceutical distribution business, which contributed the most to the revenue of China Resources pharmaceutical, was 117.61 billion yuan, followed by that of pharmaceutical business, 22.506 billion yuan, and that of pharmaceutical retail was 3.48 billion yuan 1 Who should be merged? At the beginning of last year's listing, China Resources Pharmaceutical Co., Ltd has determined to use most of the raised funds for the merger and acquisition of pharmaceutical business According to the initial estimate, there will be 9 billion yuan of funds to hit the pharmaceutical business Before that, China Resources did not have a perfect distribution of its pharmaceutical business network in China After its listing, it carried out M & A without stop, completed the business distribution of four blank markets, namely Yunnan, Guangxi, Sichuan and Chongqing, and realized the coverage of 23 provinces, municipalities and autonomous regions It covers 4280 hospitals above the second level, 35865 primary medical institutions and 19306 retail pharmacies Under the background of two vote system and replacing business tax with value-added tax, Cr Pharma believes that in terms of pharmaceutical business, it is a good opportunity for further merger and integration On the one hand, it should speed up the logistics layout and build a specialized, large-scale and integrated modern logistics substitute As of December 31, 2016, it has constructed 118 logistics centers, and started to provide services directly to hospitals to the downstream According to the annual report, it has provided about 200 hospitals with integrated logistics services, and carried out regional pharmaceutical intelligent management projects In terms of M & A, Cr Shandong acquired 51% of the equity of Shandong Rongda pharmaceutical with 250 million yuan CR Shandong is the Jinan CITIC pharmaceutical it acquired in 2011 Due to the competition between Ruikang pharmaceutical and Haiwang Galaxy in Shandong market, its performance in recent years is weak Therefore, in order to enhance its strength in the region, it acquired Shandong Rongda pharmaceutical Next, China Resources pharmaceutical said that it would take the opportunity of the full implementation of the two vote system to accelerate the layout of blank provinces, deepen the city network, and continue to strengthen the coverage of medical terminals At the same time, with the help of information system and logistics network, it will continue to promote new business models such as hospital logistics intelligent integration and DTP, and explore e-commerce businesses such as B2B and o2o China Resources has set the target of M & A as a regional leading distribution enterprise with strong relationship with hospitals and other medical institution customers, so as to improve the breadth and depth of business coverage 2 Bio pharmaceutical companies speed up the pharmaceutical business of China Resources Pharmaceutical Co., Ltd by 4.4% over 2015 In the past year, it has improved its operational efficiency mainly through product structure optimization, process integration, lean management and other means to reduce production costs and achieve growth Specifically, the growth of its chemicals is relatively slow, only 2.5% higher than that in 2015, while the proportion of the largest traditional Chinese medicine products has increased by 7.1%, achieving a revenue of 11.745 billion yuan, mainly from the two categories of dong'a gum and traditional Chinese medicine formula granules The fastest growing business is its health products business In 2016, its revenue reached 466 million yuan, an increase of 37.1% compared with 2015 The growth is due to the increase of market demand for nutrition and health products and the strengthening of terminal promotion As far as the overall pharmaceutical business is concerned, it is still dominated by M & A In July 2016, China Resources Sanjiu, a subsidiary of China Resources pharmaceutical, acquired Kunming Shenghuo with RMB 1.89 billion to enrich the cardio cerebrovascular product line; in January 2017, China Resources Sanjiu announced to acquire 65% of the equity of Jilin Jinfukang pharmaceutical industry to enrich the anti-tumor product line In the same month, another subsidiary, China Resources Shuanghe, announced to purchase 100% of the equity of Hainan Sinochem United Pharmaceutical Co., Ltd at a price of RMB 850 million, the latter's main fields are digestive tract, anti infection and anti-tumor In addition, in December 2016, Cr Pharma signed a strategic agreement with Hefei Tianmai bio The two sides will carry out in-depth cooperation in the field of recombinant insulin to develop insulin recombinant protein technology and a series of products Inward, it mainly increased its equity in dong'a Ejiao, and its actual equity increased to 18.1% from 17.76% in the past In 2016, although China resources invested heavily in the pharmaceutical business M & A, it was generally weak, and neither the performance contribution nor the qualification of the subject matter of the M & A was very eye-catching Before 2017, Cr Pharma said that it would continue to expand high growth business areas such as cardio cerebrovascular, anti-tumor and central nervous system, and improve the chemical product portfolio of chronic disease treatment, infusion and specialty by means of brand advantages, production and influence resources and through M & A, R & D and innovation It is worth mentioning that in the next step, in the pharmaceutical business, China Resources pharmaceutical will accelerate its investment in biopharmaceuticals, mainly merging Biopharmaceutical Enterprises with unique product and technology competitive advantages, and at the same time, it will promote in-depth cooperation with external R & D institutions to accumulate technology and operation experience.