Hundreds of billions of Chinese medicine giants plan to expand the medical beauty track

On December 31, the Chinese medicine giant Yunnan Baiyao issued an announcement on the equity transfer and capital increase of its wholly-owned subsidiaries.
In order to better integrate Yunnan Baiyao’s resources and improve decision-making efficiency, the company’s second subsidiary will take November 30, 2021 as the base date.
The third-tier wholly-owned subsidiary Health Products Company intends to transfer the 100% equity of Yunzhen Company, a third-tier wholly-owned subsidiary of the company directly held by the company, to the group company at a net book value of RMB 625,800
.
The announcement shows that after the completion of the transfer, the company will directly hold 100% of the equity of Yunzhen Company, and plans to increase the capital of Yunzhen Company by RMB 50 million.
After the capital increase is completed, Yunzhen Company's registered capital will increase to RMB 500.
9 million
.
It is worth mentioning that Yunzhen Company was established in January 2021.
As of November 30, the company had not realized operating income and had a loss of 274,200 yuan
.
The net cash flow from operating activities was only 5,886,300 yuan
.
It is reported that after the above transfer and capital increase are completed, Yunzhen Company plans to open 8 medical outpatient departments in Beijing and Shanghai by December 2022 to achieve the company's phased strategic intentions
.
Regarding this action, Yunnan Baiyao stated that Yunzhen Company will serve as the setting unit of Yunnan Baiyao Skin Comprehensive Solutions Medical Center, starting with the opening of an outpatient department, actively promoting the ecological layout of the medical aesthetics industry chain, and exploring upstream and downstream business growth.
Model, quickly get through the commercial track, and lay out the whole ecological chain cycle of the big health industry
.
Yunnan Baiyao's expansion of the medical beauty track has also attracted the attention of the industry
.
In fact, Yunnan Baiyao's layout in the field of medical beauty has long been traced
.
The company’s current medical beauty-related business is mainly based on "Caizhiji" as its brand
.
In November, the company's Caizhiji business cooperated with IBM and Omron to release an AI skin personalized customization system
.
In December, the company mentioned in an investor survey activity that the company’s Caizhiji testing sites have been deployed in 6 provinces and municipalities including Yunnan, Shanghai, Jiangsu, Guangdong, Anhui, and Guangxi, covering a total of 17 prefecture-level cities.
The partners cover large business districts, hotels, beauty and nail shops, gyms, health and living halls, yoga shops, college entrepreneurial incubation centers and other areas
.
So, how promising is the medical beauty track? It is undeniable that with the rise of the beauty economy, the increase in per capita disposable income, and the increasing acceptance of medical beauty by the public, the demand for medical beauty is increasing.
At present, China's medical beauty industry is in a stage of rapid growth
.
Statistics show that the total revenue of China's medical aesthetics service industry has exceeded 100 billion yuan, and is expected to reach 360.
1 billion yuan by 2023
.
However, we must also realize that with the rapid development of the medical aesthetics market, the industry is also under strict supervision, and the level of regulation will continue to increase
.
For companies that lay out the medical beauty track, they will face challenges in innovation, cost control, and branding in the future
.
According to data, Yunnan Baiyao’s main business includes four sectors: medicines, health products, pharmaceutical commerce, and traditional Chinese medicine resources
.
From the perspective of gross profit composition, the company's profit mainly relies on medicines and health products, and the proportion of the pharmaceuticals sector in the company's revenue is declining
.
In the secondary market, Yunnan Baiyao’s share price trend is being suppressed.
It has fallen from a high of 160 yuan per share in February 2021 to a new closing price of 97 yuan per share, and its share price has shrunk by about 40%
.
As of the close on December 30, 2021, Yunnan Baiyao has a total market value of 133.
3 billion
.
In addition, the operating status of Yunnan Baiyao has also caused controversy recently
.
The third quarter report shows that the company achieved revenue of 28.
363 billion yuan in the first three quarters, an increase of 18.
52% year-on-year; net profit was 2.
451 billion yuan, a year-on-year decrease of 42.
38%
.
According to the financial report, the reason for the decline in net profit was "the gains and losses from changes in fair value during the holding period of transactional financial assets were -15.
5 billion yuan
.
" That is to say, a loss of 1.
555 billion yuan in investing in stocks
.
This situation has also aroused the attention of the outside world
.
This time Yunnan Baiyao plans to enter the medical beauty circuit in a bold and resolute manner.
What kind of results can it achieve? Can it add new highlights to performance? It deserves the industry's continued attention
.