Sinopharm's performance reached a new high Sinopharm Shares, Tai Chi... Strategic layout exposure

On September 6, the list of the top 500 Chinese enterprises in 2022 was announced, and Sinopharm Group ranked 28th
.
In recent years, Sinopharm Group's revenue has repeatedly reached new highs, breaking through the mark of 700 billion yuan in 2021, ranking 80th in the list of the world's top 500 enterprises, ranking first in the global pharmaceutical company, and currently employing a total of 210,000 people
.
A few days ago, the 2022 semi-annual report of listed companies was disclosed, and the strategic layout of Sinopharm Holdings, China Traditional Chinese Medicine, Sinopharm Hyundai, Taiji Group and other listed companies under Sinopharm Group also surfaced
.

 

Sinopharm Holdings, Taiji Group and other listed companies in the first half of 2022 performance (: 100 million yuan)

 

Sinopharm Holdings: Revenue exceeded 260 billion yuan, pharmaceutical distribution increased steadily, and devices grew against the trend

 

Sinopharm Holdings' operating income in the first half of 2022 (: 100 million yuan)

 

Sinopharm's revenue in the first half of the year reached a new high, exceeding 260 billion yuan, an increase of nearly 5%
year-on-year.
Among them, the pharmaceutical distribution revenue was 196.
523 billion yuan, an increase of 3.
19% year-on-year, accounting for 72.
69% of the total revenue, mainly due to the increase in the distribution scale of retail pharmacies and the increase in the acquisition rate of varieties involved in volume procurement; Medical device revenue was 53.
684 billion yuan, an increase of 12.
36% year-on-year, accounting for 19.
86% of the total revenue, mainly due to the expansion of medical device business; Pharmaceutical retail revenue was 15.
274 billion yuan, an increase of 11.
31% year-on-year, accounting for 5.
65% of the total revenue, mainly due to the growth of the retail drug market and the expansion
of the group's retail pharmacy network.
It is worth mentioning that in recent years, sinopharm's medical device sector revenue has been rising steadily, approaching 90 billion yuan in 2020, more than 100 billion yuan in 2021, and more than 12% year-on-year in the first half of 2022, the fastest
growth rate among the three major business sectors.

 

The pharmaceutical distribution market share has steadily increased, and service innovation has driven transformation
.
Sinopharm Holdings conforms to the trend of industry transformation, vigorously promotes the model innovation and technological upgrading of pharmaceutical circulation services, promotes resource synergy and integrated transformation, and enhances the competitive advantages of drug circulation intensification, specialization and characteristics, and the sector still maintains a relatively stable development trend
.
In addition, Sinopharm Holdings continues to be in the leading position in the industry in terms of its ability to obtain varieties involved in volume procurement, and in the seventh batch of collections, the varieties covered by the Group's distribution business in Shanghai still rank first in the industry, and its market share continues to grow
.

 

Device distribution is growing against the trend, and R&D and manufacturing continue to make breakthroughs
.
Sinopharm continues to optimize the comprehensive service capabilities of the device sector, promote business synergy and technology empowerment, and vigorously promote the rapid development
of smart supply chain projects such as centralized distribution and SPD management of medical consumables.
At present, there are more than 1500 centralized distribution and SPD projects underway, and more than 150 new SPD projects and collection projects have been added in the first half of
this year.
In addition, the equipment manufacturing business, which is a key cultivation, has been successfully reported
.
In March this year, Sinopharm Xinguang Medical Technology, jointly funded by Sinopharm Devices and Haitai Xinguang, completed the registration and organizational structure construction, and will specialize in the research and development, production, sales and after-sales service of medical endoscopic systems and related minimally invasive surgical products in the future, aiming to develop into a leading service provider
of related medical device manufacturing and minimally invasive surgical overall solutions through the construction of independent and complete medical industry manufacturing system.
Focus on C-end strengthening services, batch zero collaboration to consolidate advantages
.
Sinopharm Continues to Enhance the Synergy Advantage
of "Batch Zero Integration" through integrated transformation.
In the first half of the year, Sinopharm further improved its business governance model, accelerated the acquisition of qualifications and the introduction of varieties, continuously improved operational efficiency, and strengthened its comprehensive service capabilities
for C-end patients and consumers.
By the end of June 2022, the total number of retail stores reached 10,569, an increase of 310 from the end of 2021
.
Among them, there are 9137 NUS pharmacies and 1432 professional pharmacies
.
The number of dual-channel stores totaled 676, an increase of 273 from the end of 2021, and the number of stores and same-store sales grew rapidly
.

 

In the future, Sinopharm will consolidate its advantages and promote transformation on the one hand; On the other hand, improve quality and efficiency, and develop
steadily.
The drug distribution sector will strengthen category research, actively expand the introduction of foreign innovative drugs to enrich the category structure, accelerate the proportion of direct sales business and retail direct sales business of medical institutions, focus on core and key areas, and further enhance market share
.
Continuously consolidate the dominant position of core terminals, improve the ability and level of nationally integrated supply chain services, actively expand the primary medical, out-of-hospital market, and non-medical insurance payment markets, and provide differentiated high-quality marketing solutions and channel coverage solutions
for different categories and regions.
The device distribution sector will conform to the national transformation trend brought about by the procurement of consumables, seize the opportunity of increasing market concentration, and actively undertake the procurement and distribution projects of consumables with quantity and primary medical service projects
.
Accelerate the promotion and replication of successful experiences of service models such as SPD, combine regional medical associations, medical communities and other policies to achieve rapid layout, vigorously enhance professional service capabilities through integrated management, and explore innovative business models
with high added value.
At the same time, we will carry out product research and development and manufacturing tasks for the main body of the device industry such as Sinopharm Shin Kong, accelerate the construction of independent innovation capabilities in the field of medical devices, and promote the high-quality transformation and development of
the medical device sector.
The pharmaceutical retail sector will further strengthen the advantages of pharmacy services in stores, optimize the service system of the whole course of illness, and continue to improve the ability of offline stores to
divert and drain traffic.
Gradually improve the network layout of stores, coordinate various services and channel resources, focus on creating a professional pharmaceutical service system, and undertake C-end patient service needs brought from hospitals
and pharmaceutical companies.
In addition, it will accelerate the promotion and implementation of integrated projects such as batch zero integration and zero equipment linkage, strengthen the synergy and complementarity of cross-plate resources, and provide customers with multi-scenario supply chain services
.
A few days ago, the "Pharmaceutical Multi-warehouse Collaborative Operation Management Specification" was officially implemented, and Sinopharm Holdings and its 10 affiliated enterprises entered the first batch of implementation lists, and first tried the multi-warehouse operation
of drugs in the Yangtze River Delta.
The promulgation of this specification is conducive to the coordinated and orderly development of integrated drug warehouses in the Yangtze River Delta, promoting the establishment of a standardized, safe and efficient modern drug circulation system, and improving the safety, accessibility and convenience of
drug supply.

 

Chinese Medicine: Optimize the layout of the six major business sectors and promote the construction of the whole industrial chain of Chinese medicine health

 

China Traditional Chinese Medicine 2022 First Half Year Performance Summary (: 100 million yuan)

 

The operating income of Chinese traditional Chinese medicine in the first half of the year was 5.
912 billion yuan, of which the business income of the production and operation of Chinese herbal medicines was 431 million yuan, accounting for 7.
3% of the total revenue; The revenue of Chinese medicine tablets business was 841 million yuan, accounting for 14.
2% of the total revenue; The revenue of traditional Chinese medicine formula granules business was 2.
761 billion yuan, accounting for 46.
7% of the total revenue; The revenue of proprietary Chinese medicine business was 1.
766 billion yuan, accounting for 29.
9% of the total revenue; The revenue of the Chinese medicine health products business was 0.
48 billion yuan, accounting for 0.
8% of the total revenue; The business income of the Chinese Medical Center was 0.
64 billion yuan, accounting for 1.
1%
of the total revenue.
China Chinese Medicine said that in the first half of the year, the Group formulated specific development plans around the six major business sectors, actively promoted the implementation of the Group's "14th Five-Year Plan" strategic plan, and fully promoted the high-quality development
of the whole industry chain of Chinese medicine health.

 

It is worth noting that the Chinese medicine health products sector showed a rapid growth momentum of development, with a growth rate of more than 100% in the first half of the
year.
On the one hand, the performance growth is to give full play to the basic advantages in the field of Traditional Chinese medicine industry, and the OEM/ODM foundry business volume has risen significantly, achieving a win-win situation with customers; On the other hand, prickly pear, honeysuckle and other self-owned brand specialty series products have driven sales growth
through innovative and diversified business models.
In addition, China Traditional Chinese Medicine actively explores new growth points in business, improves the operation system of the Chinese Medical Center, and continues to strengthen the technical depth and development of the third-line business of specialty, physiotherapy rehabilitation and home health, and with the establishment of the brand of the Chinese Medical Hall, the overall business is stable and improving
.

 

In the second half of the year, China Traditional Chinese Medicine clarified the ten major work priorities: First, implement the business planning and layout of the production and operation of Chinese herbal medicines, accelerate the construction of the traceability management system for the production quality of Chinese herbal medicines, and cultivate a comprehensive talent team for the production and operation of Chinese herbal medicine resources; The second is to enhance the business capacity of Traditional Chinese medicine tablets, create regional market competitiveness, and strengthen the internal coordination of medicinal material supply, product allocation and customer resources in the tablet business; The third is to fully promote the research and formulation of national standards and provincial standards for traditional Chinese medicine formula granules and the filing of sales, accelerate the development of medical institutions at all levels, and effectively ensure that the supply of products meets the needs of medical terminals; The fourth is to continue to promote the strategy of large varieties of proprietary Chinese medicines, increase evidence-based medical research on key products, and continue to build the first brand in the field of treatment of dominant diseases of traditional Chinese medicine; Fifth, continue to carry out the trial and cultivation of new products and new business models of Chinese medicine health, and explore the integration of research and development, production and market resources of big health business; The sixth is to consolidate the characteristic business, promote the construction of regional specialty diseases in medical centers around the world, and vigorously develop generalized health products and non-therapeutic physiotherapy rehabilitation business; The seventh is to optimize the human resources system, improve the evaluation system of scientific and technological talents oriented by innovation ability, quality, effectiveness and contribution, and continue to explore the establishment of a diversified incentive mechanism; The eighth is to strengthen the construction of the brand management system, standardize the management of brand authorization and promotion, and enhance the brand influence; The ninth is to strengthen the leading role of science and technology, and strive to explore the inheritance and innovation research of traditional Chinese medicine pharmaceutical process technology; The tenth is to focus on the core goal of "digital empowerment of Chinese medicine management improvement" and accelerate the improvement of the overall plan of
digital empowerment management.

 

Sinopharm Consistency: Continue to integrate resources and deepen the integration of batch zero

 

Sinopharm's operating income in the first half of 2022 (: 100 million yuan)

 

In the first half of the year, under the influence of factors such as the frequent occurrence of the new crown epidemic and the collection policy, sinopharm's consistent revenue was 36.
129 billion yuan, an increase of 8.
94% year-on-year; Net profit was RMB674 million, down 9.
07%
year-on-year.
The distribution business achieved double growth in scale and profitability, with revenue of 25.
458 billion yuan, an increase of 11.
54% year-on-year, of which the direct sales revenue of hospitals was 15.
634 billion yuan, an increase of 8.
59% year-on-year, the direct sales revenue of other medical institutions (primary medical care + small social medical services) was 2.
337 billion yuan, an increase of 34.
82% year-on-year, and the income of retail direct sales (chain + single store) was 2.
590 billion yuan, a year-on-year decrease of 11.
36%; The revenue of retail diagnosis and treatment business was 1.
203 billion yuan, an increase of 25.
29%
year-on-year.
The net profit of the distribution business was 529 million yuan, an increase of 14.
34%
year-on-year.

 

Sinopharm's consistent pharmaceutical distribution field is mainly based on liangguang, and leads in the scale of the two guangzhou regions
.
As of the first half of the year, there were 1,060 second- and third-level medical institutions, 7,106 primary medical customers, and 4,819 retail end customers (chain pharmacies, single stores, and hospital-owned pharmacies
).

 

In the field of pharmaceutical retail, NUS Pharmacy is a leading pharmaceutical retail enterprise in Terms of Sales Scale in
China.
As of the first half of the year, NUS Pharmacy has 9137 stores, layout 20 provinces, autonomous regions and municipalities directly under the Central Government in China, forming a pharmacy network covering the coastal urban agglomerations of East China, North China and South China, and gradually spreading into the Northwest, Central Plains and Inland City Clusters, maintaining the leading
sales scale in the industry.

 

For the intensification of market competition, Sinopharm unanimously said that the company will continue to integrate existing resources, deepen the strategic development measures with the integration of batch and zero as the core, play a deep synergy effect, and directly face terminal patients and consumers through measures such as variety complementarity, capital collaboration, supply chain collaboration, and international promotion, while realizing brand globalization with capital operation, continuously strengthening investment in scientific and technological innovation, and actively responding to cross-border competition
.

 

Sinopharm Shares: Promote scientific and technological innovation, and the leading position of anesthesia refining medicine is stable

 

Sinopharm's operating income in the first half of 2022 (: 100 million yuan)

 

Anesthetic drug business is the most core competitiveness of Sinopharm co.
, Ltd.
, in the country's three narcotic drugs, a class of psychotropic drugs national wholesale enterprises, the company has maintained a leading market share, and in the anesthetic refining industry has always been in a leading position
.
In the first half of the year, the company's revenue was 22.
006 billion yuan, basically flat year-on-year; net profit was 862 million yuan, an increase of more than 10%
year-on-year.
Sinopharm said that the company continued to promote the steady development of traditional businesses through procurement and marketing coordination, and promoted the final sales realization
at the terminal by strengthening supplier product access and channel marketing.

 

Build a solid core position in traditional formats
.
In terms of regional medical direct sales, the first is to focus on key varieties such as the national medical insurance catalog, national negotiated drugs, and quantity procurement, actively participate in the work of the sixth batch of collective collection (insulin special project), obtain the distribution rights of all 78 winning product specifications, tie for the first place in Beijing, and achieve the first cooperation with a number of upstream enterprises; The second is to enhance the stickiness of services to promote sales, and continue to strengthen the access service of key suppliers' products; The third is to expand the increment of innovative services around medical institutions
.
In terms of national pharmaceutical distribution, we continue to strengthen communication and cooperation with suppliers, pay close attention to the direct supply projects of key manufacturers, continue to provide suppliers with e-commerce agency operations, and make every effort to stabilize channels and meet customer needs
.
In the narcotics business, we seized the opportunity to increase the stock volume and consolidate and increase market share
.
The first is to accurately predict and ensure the supply of anesthetics during the epidemic period, rationally allocate anesthesia storage points, give full play to geographical advantages, ensure the demand for batch in the provinces and regions, actively coordinate manufacturers to increase anesthesia reserves, and ensure that the market supply is sufficient and stable; The second is to vigorously promote the implementation of projects such as "anesthesia under the grass-roots level", involving seven provinces, 44 prefectures and cities, and more than 6,000 medical institutions in Shaanxi, Fujian, Henan and other seven provinces; The third is to establish a diversified market cooperation system, focus on the "big /anesthesia" strategy, realize the landing of the first "easy-traceable intelligence" medicine cabinet, and stabilize and enhance the market position of
anesthesia.

 

Promote the innovative development
of science and technology.
On the one hand, to promote the adjustment of industrial structure, Guorui Pharmaceutical Anhydrous Ethanol raw materials and injections, nalbuphine hydrochloride injection, etc.
have been approved successively, further enriching the pharmaceutical industry products, is an important turning point in the transformation of industrial innovation marketing, and lays the market foundation for the fine planning of key academic products in the future; Sinopharm Special Doctor launched the formula food for special medical purposes of total nutrition and completed the product trial
.
On the other hand, to promote the integration of logistics, the company vigorously promotes the coordinated development of pharmaceutical professional logistics, helps the overall improvement of business, creates a high-quality brand of professional logistics, and enhances soft power
.

 

In addition, Sinopharm also actively expands marketing and channels
.
Multi-point parallel, fully promote the development of marketing business; Give full play to the advantages of channel resources to promote the accelerated development of the device business; Accelerate the development of professional retail business and actively expand diagnosis and treatment services
.

 

Sinopharm Hyundai: To build China's leading and international first-class pharmaceutical enterprises

 

Sinopharm Hyundai's operating income in the first half of 2022 (: 100 million yuan)

 

As a unified platform for the development of the chemical pharmaceutical industry under Sinopharm Group, Sinopharm Modern has formed a professional development pattern
with unified strategy, concentrated resources, scale effect and synergistic advantages of upstream and downstream industrial chains.
In the first half of the year, the company's revenue was 6.
387 billion yuan and net profit was 225 million yuan
.
Sinopharm Hyundai said that in the first half of the year, the domestic epidemic rebounded, the epidemic situation in some areas showed multiple sporadic, and the severe epidemic prevention situation brought obstacles
to the production and operation of enterprises in related areas.
The company's factories in Jilin, Shanghai and Shenzhen have different degrees of phased shutdown and production reduction, while logistics and transportation are blocked, market supply is tight, raw material and energy prices are rising, market demand is suppressed and other factors, making the company's operation face great challenges
.
The company will strengthen the integration of thinking, continue to optimize products, continue to reduce costs and increase efficiency, do fine and fine products, explore the advantages of potential products, and strive to achieve the annual economic development goals
.

 

In terms of research and development, Sinopharm Hyundai adheres to the implementation of the innovation-driven development strategy, and the research and development direction focuses on the strategic positioning of "one body and two wings", adopts the strategy of combining imitation and innovation, and takes imitation as the main strategy, and continues to focus on five key treatment areas
such as anti-infective drugs, anti-tumor drugs and immunomodulators.
In the first half of the year, the company continued to increase investment in research and development expenses, an increase of 25% year-on-year, 14 varieties (15 specifications) were approved for evaluation, 13 product specifications completed consistency evaluation declarations, and 4 product specifications submitted listing applications
.
At the same time, the company accelerated international certification and independent registration and filing, cefotaxime sodium, cefuroxime sodium and other raw materials obtained India import license, and five specifications of cefuroxime sodium for injection and ceftriaxone sodium for injection were approved for overseas marketing
。 A few days ago, Sinopharm Hyundai announced that its holding company DALI Pharma GmbH received a marketing authorization for cefotaxime sodium (0.
5g, 1g, 2g) for injection issued by the German Federal Agency for Drugs and Medical Devices (BfArM), marking dali Pharma GmbH's qualification to sell the product in the German market, which will have a positive impact on
the company's continuous expansion of the EU market.

 

Sinopharm Hyundai said that the company aims to become "an innovation-driven, China's leading and world-class pharmaceutical enterprise, and a dynamic, powerful and influential industry leader" as its strategic development goal, and to create a product gradient combination
covering the integration of pharmaceutical intermediates, APIs and chemical preparations.

 

Tiantan Biology: Enhance the level of scientific and technological innovation, and consolidate the leading position of the blood products business

 

The main business of Tiantan Biology in the first half of 2022 (: 100 million yuan)

 

Based on the blood products business, Tiantan Biology further consolidated its leading position in the industry, with an operating income of 1.
891 billion yuan in the first half of the year, an increase of 4.
37% year-on-year; Net profit was 385 million yuan, an increase of 14.
27%
year-on-year.
For the performance growth, Tiantan Bio said that the company actively explored the market, product sales have increased, resulting in an increase in operating income and net profit, while the net profit has also increased due to the increase in sales volume and the change in the shareholding ratio of subsidiaries brought about by the capital increase of Chengdu Rongsheng Company in June 2021
.
In addition, by strengthening cost control and cost reduction, digging deep into potential and increasing efficiency, we will effectively promote the work of improving quality and efficiency; Deepen centralized procurement, reduce procurement costs and a series of measures to control production costs and reduce the adverse effects
caused by rising costs.

 

In the first half of the year, 58 companies affiliated to Tiantan Biological Company collected 1,015 tons of plasma at the single plasma collection station in the camp, an increase of 16%
year-on-year.
At present, the Shanghai Blood Suining Pulp Station has achieved business, with the number of pulp stations in the camp reaching 59 and the number of pulp stations being prepared for construction reaching 23
.
The company continues to promote the construction of terminal hospital network, expand the number and proportion of terminals, and strengthen the entry and promotion of core hospitals in key areas
.
The total number of sales terminals covered reached 21543, an increase of 9.
08% year-on-year, of which pharmacies covered 8487, an increase of 15.
90%; Medical institutions covered 13,056, an increase of 6.
61% year-on-year, and have basically covered the main key terminals in various provinces and cities except Hong Kong, Macao and Taiwan, and the number of terminals continues to rank in the leading position in
China.

 

In terms of research and development, Tiantan Biology has completed 4 clinical research projects, Chengdu Rongsheng injection of recombinant human coagulation factor VIII.
, intravenous injection of human immunoglobulin (pH4) (chromatography process, 10% concentration), human fibrinogen and Lanzhou blood human thrombin compound submitted for listing registration application; Chengdu Rongsheng subcutaneous injection of human immunoglobulin, intravenous injection of cytomegalovirus human immunoglobulin (pH4), injection of recombinant human coagulation factor VII.
a, Shanghai blood human fibrinogen 4 clinical trials progressed smoothly
.

 

In the future, Tiantan Biology will further accelerate the pace of innovation, enhance the company's scientific and technological innovation level, improve the quality and efficiency of operations, continue to promote the company's blood products business to become bigger, better and stronger, and build the company into a leading blood products enterprise
with international influence in China.

 

Taiji Group: Industrial marketing breaks the circle, commercial integration and upgrading

 

Taiji Group's main business in the first half of 2022 (: 100 million yuan)

 

As a large pharmaceutical group integrating "industry, commerce, science and trade", Taiji Group is one of the large enterprise groups with the most complete domestic pharmaceutical industry chain
.
The performance of the first half of the year increased steadily, with revenue of 7.
185 billion yuan, an increase of 11.
52% year-on-year; Net profit was 124 million yuan, an increase of 61.
40%
year-on-year.
According to the data, last year, Taiji Group officially integrated into Sinopharm Group, and the company took joining the industrial cluster of Sinopharm Group as a new starting point, focusing on the high-quality development of the core industries of traditional Chinese medicine as a breakthrough, and accelerating the construction of the world's traditional Chinese medicine industry highland
with the help of Sinopharm's advanced scientific management model and strong pharmaceutical platform resource advantages.

 

The pharmaceutical industry achieved sales revenue of 4.
549 billion yuan, an increase of 12.
50%
year-on-year.
Among them: modern Chinese medicine increased by 25.
1% year-on-year, chemical medicine increased by 4.
84% year-on-year, and the top ten key products increased by 36.
11%
year-on-year.
Focus on the category layout, promote integrated marketing, and integrate the company's product advantage resources around the key areas of "6+1" (digestion and metabolism, respiratory system, cardiovascular, anti-tumor and immunomodulation, nervous system, anti-infection, and great health), and create product clusters; Steadily promote market integration, take the Shandong market as a pilot, explore the marketing of all categories of huoxiang zhengqi products, and accumulate a better foundation
for the follow-up more extensive integrated marketing and innovative sales model.
OTC market brand promotion, category planning, channel integration, terminal promotion
.
The prescription drug market implements fine investment promotion and consolidates academic marketing
.

 

Guided by profits and benefits, the pharmaceutical commercial sector focuses on promoting the work of "organizational reform, unified procurement, and business integration", drives the overall full-format operation, omni-channel collaboration, and all-category operation of the subsidiaries of the commercial sector, and explores the establishment of a "vertical integration and horizontal standardization" operation and management model
.
In the first half of the year, the sales revenue reached 4.
075 billion yuan, an increase of 7.
34%
year-on-year.

 

In the second half of the year, industrial sales will empower products with brand building, enhance brand market influence, and comprehensively break the circle increment, first, strengthen brand building; The second is to continue to optimize categories; The third is to expand sales channels
.
Pharmaceutical business will accelerate integration and synergy, form a joint force of commercial circulation sector business, and promote business organization reform and digital transformation
around the goal of "overall activity, regional leadership, and empowerment of industry".

 

Source: Listed company announcement, Sinopharm Group official website