Jingfeng Pharmaceuticals is expected to lose 850 million yuan in 2019

January 16, Jingfeng Pharmaceuticals announced a revised announcement of its 2019 earnings forecast. According to the announcement, Jingfeng Pharmaceutical's net profit for 2019 is expected to be rmb850 million to RMB650 million, down 555.00% to 447.94 percent from a year earlier.

Jingfeng Pharmaceuticals said that in 2019, in the drug bidding price reduction, the state focus on monitoring the introduction of rational drug use drug catalog, "4 plus 7" drug belt procurement expansion, local GPO model promotion, the new version of the national medical insurance drug catalog adjustment, Under the influence of many adverse factors such as the publication of the local auxiliary drug catalogue and the supplementary catalogue of local medical insurance (in principle, 40%, 40% and 20% adjustment according to the number of supplementarys in each province), the pharmaceutical industry has experienced multiple pressures and faced unprecedented difficulties and challenges.In this overall adverse environment and situation, the Company's production and operations have also been significantly affected, particularly in the fourth quarter of 2019, when more unforeseen, under-anticipated and unforeseen circumstances occurred, which will have a significant impact on the Company's full-year 2019 operating results. Mainly as follows: 1, Goodwill Asset Impairment Preparation In January 2020, the Company and its subsidiaries carried out an inventory and analysis of Goodwill and other assets, and concluded that some of the Company's subsidiaries had a large loss of goodwill impairment. In 2019, the national regulatory and health insurance policies tightened the pharmaceutical industry, most domestic pharmaceutical companies sales performance is sluggish, marketing costs remain high. As a result, some of the company's subsidiaries suffered a sharp decline in sales revenue, a decline in performance, and a large deviation from expectations. Root According to the relevant provisions of Enterprise Accounting Standards No. 8 - Asset Impairment, Accounting Regulatory Risk Warning No. 8 - Goodwill Impairment", in accordance with the principle of prudance, according to the operating conditions and future earnings forecast, according to preliminary estimates, the Company in 2019 to the merger of enterprises formed by the goodwill impairment provisions of 2-350 million yuan. The final impairment charge amount will be determined after the company has engaged an assessment and audit institution qualified for securities and futures industry.2. Sales of major products occurred in the fourth quarter that were not fully expected and did not meet expectations, which had a significant impact on the Company's 2019 operating results the Company's main varieties of ginseng glucose injections failed to enter the august 2019 national health insurance catalogue, and were affected by other relevant policies, sales revenue in the fourth quarter of 2019 decreased by more than 90% compared to the same period in 2018. In addition, the company's main varieties of lactated lactation injections in the 2019 new version of the National Health Insurance Directory within the scope of payment limited to "cancer-restricted chest or abdominal injection therapy", narrowing the scope of use of products in the clinic, and affected by other related policies, sales revenue in the fourth quarter of 2019 compared to the same period in 2018 sales revenue decreased by more than 60%. The sales revenue of the two main varieties of the above-mentioned companies decreased significantly, which had a significant impact on the company's overall operating performance.3, the company continues to implement the reform of the marketing system, and actively promote independent management-oriented, agent outsourcing as a supplement to the business model,
In order to do deep, do through, do fine, make bigger, stronger market, through the introduction of a large number of high-quality high-level sales management personnel, eliminated the total sales province that does not adapt to marketing reform, invested heavily in resources to continue to strengthen the construction of marketing network and professional academic promotion, strengthen the coverage of intensive marketing network in provincial cities and counties, realize the depth of marketing channels sink, realize the transformation of agent control to self-control channels, resulting in increased sales costs, especially marketing costs.Influenced by the combination of the above three main factors, the profit decreased significantly compared with the previous performance forecast, so there is a big difference between the revised data of this performance forecast and the previous performance forecast data. (Medical Rubik's Cube)