Kyushu has made great progress against the trend, with revenue exceeding 60 billion! Why?

In the eyes of the outside world, 2016 is the year when the two major policies of "replacing business tax with value-added tax" and "two vote system" affect the life and death of pharmaceutical business The performance of Jiuzhoutong, which takes quick approval as the main mode, is bound to decline However, the growth rate of Jiuzhoutong is 24.13% to realize the counter attack What is the reason for the counter attack? On April 25, JIUZHOUTONG Pharmaceutical Group Co., Ltd published its 2016 annual report According to the report, in 2016, Jiuzhoutong achieved a total operating revenue of 61.557 billion yuan, an increase of 24.13% over the same period of 2015 Among them, the net profit attributable to the shareholders of the listed company was 876 million yuan, an increase of 26.23% year on year As the only national private pharmaceutical commercial company that can compete with state control, China Resources and Shanghai pharmaceutical, it is currently ranked fourth in the industry, but the fastest growing Its main business mainly includes wholesale business of drugs, medical devices and other products, retail chain business, drug production and R & D business, logistics management and other value-added services Under the influence of the "business to value-added" and "two vote system" policies, and with the overall growth rate of the pharmaceutical industry slowing down, it is generally believed that the growth situation of the pharmaceutical commercial enterprises such as Jiuzhoutong, whose main mode is rapid approval, is not optimistic in 2016, but Jiuzhoutong tells the industry with data that it can counter attack in winter According to the annual report data, in 2016, the operating revenue of Jiuzhoutong pharmaceutical wholesale and related business segment was 58.989 billion yuan, an increase of 23.54% year-on-year, and the pharmaceutical retail business also made rapid progress, achieving a year-on-year growth of 63.59%, with revenue of 1.61 billion yuan and gross profit rate of 20.48% To achieve such growth, where is Kyushu Tong's "secret weapon"? 1 A clear path reflected in the annual report is that kyushutong is gradually increasing its control over the terminal market of the hospital, and its sales target is also changing from the primary medical institutions below the second level to the middle and high-end hospitals above the second level A group of figures can better reflect this situation: in 2016, Jiuzhoutong achieved tax inclusive sales of 6.678 billion yuan in primary medical institutions below the second level, an increase of 26.48% over the same period of last year; in the secondary and high-end hospital market, it achieved tax inclusive sales of 12.831 billion yuan, an increase of 38.46% over the same period of last year Today, Jiuzhoutong covers more than 51750 customers of primary medical institutions below the second level, and more than 3780 customers of hospitals above the second level The strategic transformation of the terminal market is closely related to the two vote policy implemented in the past year In 2016, the State Council issued a clear request to comprehensively promote the "two vote system" in the pilot provinces and jurisdictions, and then made clear the policy direction of comprehensively promoting the "two vote system" in the whole country before 2018 There is no doubt that the shortening of circulation links has become a trend On this basis, for circulation enterprises, who can directly cover more hospital terminal market, who is likely to win in the future shuffle of the industry As one of the few national pharmaceutical commercial enterprises in China, kyushutong will not miss this opportunity, and actively layout to improve market share, while another strategy is to actively participate in the bidding of distribution qualification in various provinces and cities According to the announcement, among the 31 provinces (cities and districts) that have announced the qualification for distribution of essential drugs, Kyushu tonggong has obtained the qualification for distribution in 22 provinces and cities, with 1089 districts and counties in total, of which 212 districts and counties have new distribution rights in 2016 At present, there are 240000 product specifications operated by Jiuzhoutong, with more than 7000 upstream suppliers and more than 100000 downstream customers Another significant growth point is retail chain According to the annual report, there are currently 911 retail pharmacies in Jiuzhoutong, including 283 self operated ones In 2016, the pharmaceutical retail business realized a total revenue of 1.61 billion yuan and a gross profit of 330 million yuan, an increase of 63.59% and 87.51% respectively over the same period of last year Kyushutong said that the reason for the significant increase in operating revenue and gross profit margin was mainly due to the substantial growth of online business of good pharmacists and the increase in gross profit margin Beijing haoyaoshida pharmacy chain Co., Ltd is one of the subsidiaries of Jiuzhoutong In 2016, it realized tax inclusive sales of 1.06 billion yuan, an increase of 125.53% over the same period, turning losses into profits for the first time Meanwhile, it also strengthened o2o business At present, it has basically realized o2o service of "24-hour delivery and 1-hour delivery" in 13 urban core areas such as Wuhan, Beijing, Shanghai and Zhengzhou 2 The whole industrial chain of sub fields In 2016, the sales revenue of Jiuzhoutong Chinese herbal medicine and Chinese Herbal Pieces reached 2.128 billion yuan, with a gross profit margin of 350 million yuan, an increase of 11.87% and 9.94% respectively compared with the same period of last year, while the gross profit margin decreased slightly, from 16.73% to 16.44% For the growth rate of Chinese herbal medicine and Chinese Herbal Pieces business, there was a significant decline compared with the same period of last year, and Jiuzhoutong attributed it to the decline in the performance of donkey hide gelatin business in 2016 In fact, Chinese herbal medicine and Chinese herbal pieces are still in a state of low market concentration, but the production capacity and output of the whole industry are maintaining rapid growth In this business area, Jiuzhoutong's approach is to speed up the layout of the whole industrial chain, that is to say, it covers many links such as the planting of traditional Chinese medicine, the trade of traditional Chinese medicine, the production and distribution of herbal pieces, the marketing of traditional Chinese medicine hospitals, the standard decoction of traditional Chinese medicine, the chain of traditional Chinese medicine stores, and the e-commerce of traditional Chinese medicine In 2016, Jiuzhoutong established 5 subsidiaries, including Gansu Jiuzhou Tianrun traditional Chinese Medicine Industry Co., Ltd., Shanxi Jiuzhou Tianrun genuine Herbal Medicine Development Co., Ltd and Henan Jiuzhou Tianrun traditional Chinese Medicine Industry Co., Ltd., which are mainly engaged in the cultivation and sales of traditional Chinese medicine At the same time, it also further expanded the standard decoction business Four new Decoction centers have been built, including Hohhot in Inner Mongolia, Nanjing in Jiangsu, Wenzhou in Zhejiang and Lianyungang in Jiangsu Up to now, 10 standard decoction centers have been built, 9 of which have been put into operation, and a Decoction cooperation relationship has been established with more than 100 medical institutions around the country As far as its strategic layout is concerned, Jiuzhoutong is ambitious in the field of traditional Chinese medicine and a whole set of industrial methods Now the layout has been basically completed In accordance with its 2017 plan, the Chinese herbal medicine sector, unifying the group's herbal medicine business management, focusing on building a brand of Chinese herbal medicine; the Chinese herbal medicine industry sector, focusing on products, improving quality, and striving to build a brand of decoction pieces; the Chinese herbal medicine business sector, accelerating the introduction of brand products, and achieving a breakthrough in the business of the Chinese herbal medicine hospital; establishing a terminal marketing team, and strengthening the terminal marketing of self-produced and agent products We will actively promote the decoction business and provide customers with convenient, fast, safe and effective Decoction services by using Internet technology For the idea of medical devices, the strategic direction of kyushutong is the same as that of traditional Chinese medicine, and it is also the whole industry chain approach In its 2017 medical device development plan, Kyushu is a general term for business sector, which relies on key products to continuously promote Konitz strategy and increase gross profit margin of conventional business; around professional products, it accelerates merger and acquisition and integration of joint ventures to promote high-speed growth of professional products; industrial board, with OEM And self-produced products to create home care and conventional consumables products own brand, timely establishment of research, production, marketing integration of industrial management system In the past year, the business sector of medical devices and family planning products of kyushutong has also grown rapidly In 2016, kyushutong realized sales of 4.871 billion yuan and gross profit of 491 million yuan in this field, with an increase of 39.04% and 19.98% respectively compared with the same period of last year Specifically, in 2016, JIUZHOUTONG Medical Equipment Group Co., Ltd continued to build and acquire subsidiaries to expand its business coverage, especially in orthopedic business, equipment business, AB business and other aspects, such as building six orthopedic business divisions in Beijing, Xinjiang, Guangdong, Fujian, Hangzhou and Chongqing, and completing the pilot of Hubei orthopedic supply chain system 3 Different from most pharmaceutical commercial companies, which are only limited to the development of medical and health fields, kyushutong has also turned its attention to the field of rapid consumption in recent two years, and has made great achievements, becoming an important engine to drive its rapid growth According to the annual report, the sales revenue of Jiuzhoutong in food, health care products, cosmetics and other businesses in 2016 was 3.403 billion yuan, a significant increase of 112.48% compared with 1.602 billion yuan in the same period of last year; the gross profit was 303 million yuan, an increase of 18.65% compared with 256 million yuan in the same period of last year In the past year, kyushutong consumer products business department strengthened the in-depth cooperation with strategic brands, and distributed Abbott, Wyeth and other product terminals nationwide During the period, the sales of mother and infant products (milk powder) including taxes reached 2.215 billion yuan, an increase of 374.5% over the same period of last year, of which Wyeth achieved 1.289 billion yuan of sales including taxes and Abbott achieved 708 million yuan of sales including taxes Billion yuan, a year-on-year increase of 2962.7% and 170.93% respectively In addition, in order to obtain the upstream resources, the Shanghai JIUZHOUTONG International Trade Company under the company of Jiuzhoutong has also acted as the exclusive agent for five brand series products under the company of cechi Dewey, including ahimei, xuanjie, Troy, bitis and shudelma During the reporting period, the operating revenue and gross profit reached 63 million yuan and 37 million yuan, an increase of 34.68% and 35.55% respectively compared with the same period last year 4 The merger and acquisition is "scattered and concentrated as a whole", which is the current overall competitive pattern of China's pharmaceutical circulation market In May 2011, the Ministry of Commerce issued the outline of national development plan for drug distribution industry (2011-2015), which clearly defined the supporting policies for large-scale pharmaceutical distribution enterprises By 2015, it will form 1-3 national large-scale pharmaceutical commercial groups with annual sales of more than 100 billion yuan, and 20 regional pharmaceutical distribution enterprises with annual sales of more than 10 billion yuan, so as to promote industry integration and enhance industry concentration 。 It is also in this context that in recent years, the equity investment of Kyushu Tong has also been continuous In 2016, the total amount of equity investment in Jiuzhoutong was 3.569 billion yuan, an increase of 127.88% over the same period of last year, in which the main reason was to increase the capital of subordinate enterprises, accounting for 82.84% In addition, it also included newly established enterprises and acquisition enterprises The largest single investment was the capital increase of Henan JIUZHOUTONG Pharmaceutical Co., Ltd., which was 540 million yuan So far, there are 33 companies in which Jiuzhoutong mainly holds shares, including 22 pharmaceutical sales enterprises, 2 investment management enterprises, Chinese medicine industry investment enterprises, pharmaceutical production enterprises, medical device sales enterprises, pharmaceutical retail enterprises, software development enterprises, import and export enterprises, health management enterprises, pharmaceutical wholesale consulting enterprises and pharmaceutical R & D consulting enterprises In 2016, Beijing Jingfeng Pharmaceutical Co., Ltd., a subsidiary of Jiuzhou Tong, achieved sales revenue of 819 million yuan and gross profit of 178 million yuan, an increase of 6.1% and 26.45% over the same period of last year, respectively Under the pressure of consistency evaluation, Jingfeng Pharmaceutical Co., Ltd also made some progress: one variety signed the be test contract, two varieties carried out prescription process validation, and three varieties signed the be test contract Varieties are being optimized For 2017, kyushutong will further increase its industrial pace and prepare to make product line layout around the disease trend by means of product research and development, enterprise merger and acquisition or approval introduction 5 For the development of 2017, Kyushu Tong cautiously stated in its annual report that the net profit attributable to shareholders of listed companies after annual operating income and non recurring profit and loss deduction increased by more than 20% over the same period of last year Specifically, for its pharmaceutical business development, in 2017, kyushutong