Kangenbei wants to build "the first enterprise of Chinese botanical medicine"

In 2009, the new health care reform plan that the state has been brewing for many years finally came out Zhejiang pharmaceutical enterprises, which have always been unique in this industry, will not miss the opportunity in front of them Kangenbei, who started with plant medicine, has also begun to seek the derivative growth model of Yunnan Baiyao style, which combines product innovation and business model innovation Taking "2009 entrepreneurship and innovation action" as the starting point, it has made efforts to break through the bottleneck of main business development, actively carried out M & A and restructuring, acquired 20.88% equity of Jiangxi tianshikang, formulated and put forward the plan to raise 420 million yuan of non-public additional shares to invest in the expansion project of essential drug catalogue products, and a series of measures have laid a good foundation for the future development of Kangenbei "In the next five years, Kangenbei aims to become the" No.1 enterprise of Chinese herbal medicine " At the 2009 annual general meeting of shareholders of the company held recently, Hu Jiqiang, chairman of Kangenbei, described Kangenbei's development ideas in this way With the help of the advantages of medical reform, the net profit in 2009 was over 100 million After the stable period of performance in 2007 and 2008, Kangenbei recovered its growth power in 2009 According to the 2009 annual report released by Kangenbei recently, the company achieved an annual operating revenue of 1.406 billion yuan, a year-on-year increase of 28.46%; an operating profit of 105 million yuan, a year-on-year increase of 139.60%; a net profit of 101 million yuan, a year-on-year increase of 10.05%; and an earnings per share of 0.31 yuan The distribution plan is 1.50 yuan (including tax) for every 10 shares In 2009, Kangenbei incorporated tianshikang into the consolidated statement (holding 50.88% of shares and five months of consolidation) The pharmaceutical industry realized revenue of 1.197 billion yuan, an increase of 43.33% year on year Medical business realized revenue of 196 million yuan, a year-on-year decrease of 17.53% After years of development, Kangenbei has grown into a listed company integrating R & D, production and sales Its business covers the three fields of herbal medicine, chemical raw materials and preparations, and health food For the good performance in 2009, Hu Jiqiang, chairman of Kangenbei, analyzed that on the one hand, he benefited from the medical reform in 2009 By planning ahead of time and actively responding to the business opportunities of medical reform, he ensured that a total of 49 varieties including its leading products, QianLieKang and other leading products, were included in the first batch of national essential drug catalog "Being selected into the essential drug catalog will also achieve a breakthrough increase for QianLieKang and even the company in the future Long creates conditions " "With the advantages of medical reform, Kangenbei is breaking through the bottleneck of market and sales and ushering in new development opportunities." Hu Jiqiang introduced that its sales companies increased their own sales by 41% in 2009 through optimizing business channels and in-depth cooperation with strong chain terminals, and the annual sales revenue reached a record high Hu Jiqiang also pointed out that the growth of performance in 2009, on the other hand, is also due to the increase in the holding of Jiangxi tianshikang traditional Chinese Medicine Co., Ltd "through the increase in the holding of tianshikang, it also further enhances the development potential of Kangenbei's core business of plant medicine." With reference to Yunnan Baiyao's goal of 1.9 billion in 2010, the company has made a plan for the operation goal of 2010 after clearly positioning its existing brands and setting sales goals: the planned operating revenue is 1.9 billion yuan, with a total profit of 170 million yuan; this goal corresponds to 1.406 billion yuan in 2009, with an estimated growth rate of 35% How to achieve the goal of 1.9 billion yuan? With more than 20 years of operation, Hu Jiqiang has his own clear thinking and strategic plan on how to build Kangenbei into the "No.1 enterprise of Chinese plant medicine" "Like Hengrui pharmaceutical, they are characterized by technology as the core competence, which is also the thinking of most pharmaceutical enterprises; however, for Kangenbei, my thinking is still that the operation mode of brand as the core development strategy." Hu Jiqiang analysis Now, Kangenbei has established a strong brand in the field of urinary system and cardiovascular and cerebrovascular system "QianLieKang", as the company's leading botanical drug product, has become the first brand in the field of traditional Chinese medicine prostate treatment; "Tianbaoning", "Daling", "Yuanbang" and Beibei series of children's health care products, etc., have a high brand awareness in the province and domestic market; at the same time, after increasing the holding of tianshikang, several leading brands of tianshikang, Zhenshiming, Yanning and Xia Tianwu has good sales momentum In addition to these mature brands, Kangenbei's powerful background R & D team is also constantly making new achievements Hu Jiqiang introduced in the 2009 annual work report that there are 26 new projects of Kangenbei in 2009, including 9 secondary development of key strategic products, 2 innovative drugs, and 5 clinical approval documents of new drugs; including new product approval numbers of compound Houttuynia dropping pills, etc.; at the same time, key research projects There is no hope that OTC will be approved "In terms of brand promotion, in general, through the idea of having multiple sales teams and each sales team to promote two or three brands at the same time, from the perspective of future development, a brand is not necessarily a single product, and we can learn from the experience of Yunnan Baiyao, a listed company For example, the brand of Zhenshiming can derive other vision protection health care products and other vision protection sports equipment and other new products around the core value of the brand of "protecting vision" Hu Jiqiang analysis According to the analysis report of Tianxiang Investment Consulting Co., Ltd., including QianLieKang, it is estimated that there will be nine brand products with sales of more than 100 million in 2010 In order to further enhance its competitive advantage in the field of modern plant medicine, in 2009, Kangenbei also submitted three major projects, i.e the expansion of basic drug catalogue products, the construction of medical marketing network and promotion system, and the construction of Ginkgo biloba planting base, to raise about 423 million yuan by private offering of no less than 46 million shares at a price of no less than 9.86 yuan per share Seeking new growth points through M & a through extension expansion is one aspect of internal hard work It is necessary to continue to grow and strengthen Kangenbei Hu Jiqiang also made it clear at the shareholders' meeting that the company will also achieve rapid growth through industrial M & A investment and extension expansion In fact, through mergers and acquisitions to speed up the pace of development, this idea has been implemented in 2009 In May and August last year, Kangenbei successively invested more than 53 million yuan to acquire 20.88% equity of Jiangxi tianshikang After the acquisition, Kangenbei's shareholding increased to 50.88%, becoming the controlling shareholder "It will gradually promote the further integration of industrial resources of tianshikang and Kangenbei." Hu Jiqiang said that at present, he is still in further communication with the Jiangxi provincial government, "the growth momentum of brands such as TSK's Zhenshiming is good, and we will try our best to lay a solid foundation and continue to expand the sales of these brands." Last year, Kangenbei invested more than 26 million yuan to increase the capital of Lanxi Lanxin small loan company Its subordinate health products company also invested 4 million yuan to establish Xishuangbanna Dendrobium candidum company Meanwhile, it transferred 60% equity of Yunnan xierkang Pharmaceutical Co., Ltd with more than 16.22 million yuan "In 2010, Kangenbei will actively seek new investment opportunities and profit growth points, continue to carry out M & A and investment in line with the company's botanical medicine strategy, and strive to complete the M & A of two to three enterprises in the pharmaceutical industry in time." Hu said Due to historical reasons, Kangenbei still has large amount of related party transactions, including procurement and entrusted sales with innova pharmaceutical, Yunnan xierkang and Kunming Kangenbei Pharmaceutical Co., Ltd under Kangenbei group Hu Jiqiang revealed that in the future, Kangenbei will reduce and solve the related party transactions and further straighten out the relationship The Department will also be one of the key tasks for conerby to improve its performance One factor that can't be ignored is that soli Pharmaceutical (26% stake) Co., Ltd., a joint-stock company of Kangenbei, has carried out the environmental protection publicity before listing in December 2009 If soli pharmaceutical can be successfully listed, it will increase a lot of investment income for kangenbai in the future.