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    Home > Medical News > Latest Medical News > The key is to turn a profit from a profit and reduce the cost of raw materials such as Epimedium!

    The key is to turn a profit from a profit and reduce the cost of raw materials such as Epimedium!

    • Last Update: 2022-09-20
    • Source: Internet
    • Author: User
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    Guangyuyuan Chinese Medicine Co.
    , Ltd.
    (Guangyuyuan, SH 600771) released its semi-annual performance report on the evening of August 25, showing that the operating income in the first half of 2022 was about 479 million yuan, an increase of 27.
    71% year-on-year; The net profit attributable to the shareholders of the listed company was about 7.
    83 million yuan, achieving a turnaround
    .
    However, according to the data monitoring of my platform, the company's products are mainly nourishing and health care, and the input cost of expensive materials and high-value medicinal materials is high, and how to reduce the cost of raw materials in the next few years is the key
    .
     
    Figure 1: Guangyuyuan core operating data from 2016 to 2021
     
    First, the main Chinese medicine nourishing health care
     
    Guangyuyuan is mainly engaged in the production and sales of traditional Chinese medicine products, and its core business is proprietary Chinese medicine business
    .
    According to the different product positioning and sales channels, the company's pharmaceutical industry mainly includes three major sectors
    : traditional Chinese medicine, fine Chinese medicine and health wine.
     
    In terms of products, in the first half of 2022, in the company's main business, the operating income of traditional Chinese medicine was 340 million yuan, an increase of 50.
    72% year-on-year, and the operating cost increased by 39.
    84% year-on-year, of which the sales of Angong Niuhuang Pill series products with higher gross profit accounted for an increase of 24.
    04 percentage points compared with the same period last year; The operating income of fine traditional Chinese medicine was 0.
    84 billion yuan, down 14.
    38% year-on-year, and the operating cost fell by 29.
    73% year-on-year; The operating income of health wine was 0.
    17 billion yuan, an increase of 73.
    63% year-on-year, the operating cost increased by 15.
    72% year-on-year, and the gross profit margin increased by 21.
    30 percentage points
    .
     
    The traditional Chinese medicine sector, which has star products such as Gui Ling Ji, Ding Kun Dan and AnGong Niu Huang Pill, contributed about 70% of the operating income
    in the first half of 2022.
    Among them, turtle age set and Dingkundan belong to the national secret species
    .
     
    In this issue, the big data platform of The Chinese medicine industry of Tiandi Yuntu analyzes the cost pressure of Chinese medicine raw materials faced by enterprises from the perspective of raw materials involving the core product Gui Lingji
    .
     
    Second, the core raw materials of the turtle age set
     
    Table 1: Turtle age set core raw materials
     
    The drug can strengthen the body and supplement the brain, strengthen the kidneys, enhance appetite, and is clinically used to treat weak kidney deficiency, memory loss, night dream overflow, waist and legs, weak legs, qi deficiency cough, five more diarrhea, loss of appetite
    .
     
    Third, the rise and fall of turtle age set raw materials
     
    Table 2: The annual rise and fall of turtle age collection raw materials
     
    During the period from January 2021 to September 2022, the prices of 12 raw material varieties rose, accounting for 75%, the price of 1 raw material flattened, accounting for 6.
    25%, and the price of 3 raw materials fell, accounting for 18.
    75%.

     
    Fourth, turtle age set raw material market analysis
     
    Ginseng, which is produced in august, is expected to be reduced
    due to the impact of The Clear Mountain and this year's rains.
    At present, the market supply is in quantity, the recent merchants purchase in small quantities, the source of goods is moving around, the market is running stably, the price of 45 raw sun goods is 320-330 yuan (kilogram price, the same below), and the price of 80 raw dry goods is between
    255-260 yuan.
     
    Deer antler velvet, the market demand is limited, because the variety is mainly specialized, the attention of merchants is general, the near futures source is not moving fast, and the price of the holder is still firm
    .
    At present, the market deer antler flower second bar primary goods in the market at 9200-9500 yuan, the second bar secondary goods price of 8200-8500 yuan; The red deer three-pronged first-class goods are around
    2800 yuan.
     
    Seahorse, is a controlled variety, the market has a limited number of qualified businesses, the supply of goods is generally sold, and the market is not much
    different from the previous period.
    At present, the price of goods below one gram of Haima Pingma in the market is 8,000 yuan, the price of goods above one gram is 9,000 yuan, the price of two grams is 9,500 yuan, the price of four grams is 11,000 yuan, and the price of about five grams is 13,000 yuan; Four grams of three zebra goods are priced at 14,000 yuan
    .
     
    Goji berries, Ningxia Zhongning County has ended a period of time, these days affected by the Mid-Autumn Festival, the number of buyers increased, the supply of goods moved slightly better, but because the supply is relatively sufficient, the market is still tepid
    .
    At present, the local production of 280 grains of goods is quoted at 48-50 yuan, and the price of 350 grains is 40-42 yuan; The price of 280 grains in Gansu is about 40 yuan, and the price of 350 grains is 35-36 yuan
    .
     
    Cloves, with the consumption of market inventory, the market supply has improved slightly in recent days, the attention of merchants is general, the market has rebounded signs, and the price of cloves in the market is between
    62-65 yuan.
    If the market inventory is not effectively replenished, the future market is worth paying attention to
    .
     
    Beef knee, affected by the reduction in production last year, the market price of cow knee remains high, the current market price of beef knee fat goods is 50-55 yuan, the price of two fat goods is 43-45 yuan, the price of flat strips is 38-40 yuan, and the price of ox knee 0.
    4-0.
    6 Ding is 55-60 yuan
    .
    It is expected that the high price market will continue
    before the new production this year.
     
    Suoyang, the recent volume of goods is not large, there are merchants to consult the purchase and sale, the source of goods in small batches can still move around, the market demand for goods has risen, the current market suoyang unified price of 46-48 yuan, the price of the goods is about
    55 yuan.
     
    Yellow, with the new production approaching, the willingness of the holder to ship is enhanced, the early market has declined, the recent inventory is not much, the merchant shouting price is more chaotic, the current market yellow mix and other goods shouting price at 45 yuan, buyers more with the purchase with the sale, reduce the risk
    brought by the production of new.
     
    Bone fat, market inventory in general, the demand has increased in recent days, the attention of merchants has increased, and with the normal movement of goods, the market is stable and firm, the current market general goods asking price of about 13 yuan, package inspection price of 15-16 yuan
    .
     
    Silk seeds, the price is not high, inventory consumption, the market has business concerns, the recent actual demand is the mainstay, the source of goods is acceptable, the market is stable, the current market Inner Mongolia unified goods ask for 27-28 yuan, Ningxia goods price of 26-27 yuan
    .
     
    Cistanche, the market inventory is not abundant, the merchant purchase is mainly in a small amount, the market has not fluctuated for a long time, the current soft unified goods price is between 100-105 yuan, the merchants buy with the sale, the future market is difficult to be favorable
    .
     
    In the winter, the production area has begun to produce new products, and the number of new goods on the market is still small, and there is still a month to go before a large number of new listings
    .
    Recently, the market supply is moving normally, the market has not changed, and the current unified price is between
    41-42 yuan.
    This year, the output is expected to be relatively stable, and the future market price is running steadily
    .
     
    Epimedium, Gansu origin of the recent listing volume is not large, concern about the popularity, bulk transaction price of about 150 yuan; Local operators sell large goods normally, the price is firm, and the transaction price of high-content goods is 180-200 yuan
    .
     
    5.
    Comprehensive review
     
    1, rehmannia, seahorse and other varieties of procurement cost pressure is larger Raw material stress test shows that the current turtle age set raw materials from the supply pressure, mainly from the ground yellow, ox knee, cloves, epimedium, bone fat and seahorse; From the perspective of quality pressure, it mainly comes from Epimedium, Seahorse, Suoyang and so on
    .
     
    2.
    The wild resources of Epimedium are reduced, and the content difference is large Under the stimulation of high prices, the growth rate of Epimedium cannot keep up with the mining speed, and the wild resources of Epimedium are gradually depleted
    .
    goat weed produced in Longnan, Gannan, Linxia, Dingxi, Diebu County and other places in Gansu is favored by the majority of pharmaceutical factories and pharmaceutical manufacturers because of its good quality and high content, while the content of epimedium in Sichuan and other places is low and the price is low
    .
    In the future, this contradiction between supply and demand will become more prominent, and the price of high-quality epimedium in Gansu will continue to rise
    .
     
    3, the core reason for the low net profit of the well-known far is not entirely from the pressure of raw materials Through data analysis, we found that although the company achieved a turnaround, the net profit margin still has a large room for growth, and this growth space on the one hand is to control the cost of raw materials; On the other hand, it is necessary to reduce the cost of selling
    .
    From the 2021 financial report, it can be seen that under the condition of the company's total revenue of 854.
    2 million yuan, the sales expenses of the wide reputation account for more than 90%.

    The regulatory work letter also mentioned that guangyuyuan's sales expenses in 2021 reached 782 million yuan, the highest
    in history.
     
    In summary, in 2022, the reputation of returning to Shanxi's state-owned assets has been reversed, and the results of enterprise management have continued to appear and the benefits have rebounded
    significantly.
    In addition, the company strengthened the terminal sales management, increased the collection of accounts receivable, the company's net operating cash flow at the end of the reporting period was 53.
    7086 million yuan, a substantial increase of 88.
    20%
    over the same period of the previous year.
    However, 12 of the 16 raw materials in the company's core product Gui lingji have risen, causing a lot of pressure on the company's costs, and we must pay attention to raw material cost control
    in the next few years.
    Guangyuyuan Chinese Medicine Co.
    , Ltd.
    (Guangyuyuan, SH 600771) released its semi-annual performance report on the evening of August 25, showing that the operating income in the first half of 2022 was about 479 million yuan, an increase of 27.
    71% year-on-year; The net profit attributable to the shareholders of the listed company was about 7.
    83 million yuan, achieving a turnaround
    .
    However, according to the data monitoring of my platform, the company's products are mainly nourishing and health care, and the input cost of expensive materials and high-value medicinal materials is high, and how to reduce the cost of raw materials in the next few years is the key
    .
     
      
    Figure 1: Guangyuyuan core operating data from 2016 to 2021
     
    First, the main Chinese medicine nourishing health care
    First, the main Chinese medicine nourishment health care health care
     
    Guangyuyuan is mainly engaged in the production and sales of traditional Chinese medicine products, and its core business is proprietary Chinese medicine business
    .
    According to the different product positioning and sales channels, the company's pharmaceutical industry mainly includes three major sectors
    : traditional Chinese medicine, fine Chinese medicine and health wine.
    Medicine and medicine health care
     
    In terms of products, in the first half of 2022, in the company's main business, the operating income of traditional Chinese medicine was 340 million yuan, an increase of 50.
    72% year-on-year, and the operating cost increased by 39.
    84% year-on-year, of which the sales of Angong Niuhuang Pill series products with higher gross profit accounted for an increase of 24.
    04 percentage points compared with the same period last year; The operating income of fine traditional Chinese medicine was 0.
    84 billion yuan, down 14.
    38% year-on-year, and the operating cost fell by 29.
    73% year-on-year; The operating income of health wine was 0.
    17 billion yuan, an increase of 73.
    63% year-on-year, the operating cost increased by 15.
    72% year-on-year, and the gross profit margin increased by 21.
    30 percentage points
    .
     
    The traditional Chinese medicine sector, which has star products such as Gui Ling Ji, Ding Kun Dan and AnGong Niu Huang Pill, contributed about 70% of the operating income
    in the first half of 2022.
    Among them, turtle age set and Dingkundan belong to the national secret species
    .
     
    In this issue, the big data platform of The Chinese medicine industry of Tiandi Yuntu analyzes the cost pressure of Chinese medicine raw materials faced by enterprises from the perspective of raw materials involving the core product Gui Lingji
    .
    Enterprise enterprise
     
    Second, the core raw materials of the turtle age set
    Second, the core raw materials of the turtle age set
     
      
    Table 1: Turtle age set core raw materials
     
    The drug can strengthen the body and supplement the brain, strengthen the kidneys, enhance appetite, and is clinically used to treat weak kidney deficiency, memory loss, night dream overflow, waist and legs, weak legs, qi deficiency cough, five more diarrhea, loss of appetite
    .
     
    Third, the rise and fall of turtle age set raw materials
    Third, the rise and fall of turtle age set raw materials
     
      
    Table 2: The annual rise and fall of turtle age collection raw materials
     
    During the period from January 2021 to September 2022, the prices of 12 raw material varieties rose, accounting for 75%, the price of 1 raw material flattened, accounting for 6.
    25%, and the price of 3 raw materials fell, accounting for 18.
    75%.

     
    Fourth, turtle age set raw material market analysis
    Fourth, turtle age set raw material market analysis
     
    Ginseng, which is produced in august, is expected to be reduced
    due to the impact of The Clear Mountain and this year's rains.
    At present, the market supply is in quantity, the recent merchants purchase in small quantities, the source of goods is moving around, the market is running stably, the price of 45 raw sun goods is 320-330 yuan (kilogram price, the same below), and the price of 80 raw dry goods is between
    255-260 yuan.
    Procurement Procurement
     
    Deer antler velvet, the market demand is limited, because the variety is mainly specialized, the attention of merchants is general, the near futures source is not moving fast, and the price of the holder is still firm
    .
    At present, the market deer antler flower second bar primary goods in the market at 9200-9500 yuan, the second bar secondary goods price of 8200-8500 yuan; The red deer three-pronged first-class goods are around
    2800 yuan.
     
    Seahorse, is a controlled variety, the market has a limited number of qualified businesses, the supply of goods is generally sold, and the market is not much
    different from the previous period.
    At present, the price of goods below one gram of Haima Pingma in the market is 8,000 yuan, the price of goods above one gram is 9,000 yuan, the price of two grams is 9,500 yuan, the price of four grams is 11,000 yuan, and the price of about five grams is 13,000 yuan; Four grams of three zebra goods are priced at 14,000 yuan
    .
     
    Goji berries, Ningxia Zhongning County has ended a period of time, these days affected by the Mid-Autumn Festival, the number of buyers increased, the supply of goods moved slightly better, but because the supply is relatively sufficient, the market is still tepid
    .
    At present, the local production of 280 grains of goods is quoted at 48-50 yuan, and the price of 350 grains is 40-42 yuan; The price of 280 grains in Gansu is about 40 yuan, and the price of 350 grains is 35-36 yuan
    .
     
    Cloves, with the consumption of market inventory, the market supply has improved slightly in recent days, the attention of merchants is general, the market has rebounded signs, and the price of cloves in the market is between
    62-65 yuan.
    If the market inventory is not effectively replenished, the future market is worth paying attention to
    .
     
    Beef knee, affected by the reduction in production last year, the market price of cow knee remains high, the current market price of beef knee fat goods is 50-55 yuan, the price of two fat goods is 43-45 yuan, the price of flat strips is 38-40 yuan, and the price of ox knee 0.
    4-0.
    6 Ding is 55-60 yuan
    .
    It is expected that the high price market will continue
    before the new production this year.
     
    Suoyang, the recent volume of goods is not large, there are merchants to consult the purchase and sale, the source of goods in small batches can still move around, the market demand for goods has risen, the current market suoyang unified price of 46-48 yuan, the price of the goods is about
    55 yuan.
     
    Yellow, with the new production approaching, the willingness of the holder to ship is enhanced, the early market has declined, the recent inventory is not much, the merchant shouting price is more chaotic, the current market yellow mix and other goods shouting price at 45 yuan, buyers more with the purchase with the sale, reduce the risk
    brought by the production of new.
     
    Bone fat, market inventory in general, the demand has increased in recent days, the attention of merchants has increased, and with the normal movement of goods, the market is stable and firm, the current market general goods asking price of about 13 yuan, package inspection price of 15-16 yuan
    .
     
    Silk seeds, the price is not high, inventory consumption, the market has business concerns, the recent actual demand is the mainstay, the source of goods is acceptable, the market is stable, the current market Inner Mongolia unified goods ask for 27-28 yuan, Ningxia goods price of 26-27 yuan
    .
     
    Cistanche, the market inventory is not abundant, the merchant purchase is mainly in a small amount, the market has not fluctuated for a long time, the current soft unified goods price is between 100-105 yuan, the merchants buy with the sale, the future market is difficult to be favorable
    .
     
    In the winter, the production area has begun to produce new products, and the number of new goods on the market is still small, and there is still a month to go before a large number of new listings
    .
    Recently, the market supply is moving normally, the market has not changed, and the current unified price is between
    41-42 yuan.
    This year, the output is expected to be relatively stable, and the future market price is running steadily
    .
     
    Epimedium, Gansu origin of the recent listing volume is not large, concern about the popularity, bulk transaction price of about 150 yuan; Local operators sell large goods normally, the price is firm, and the transaction price of high-content goods is 180-200 yuan
    .
     
    <>.
    Comprehensive review
    5.
    Comprehensive review
     
    1, rehmannia, seahorse and other varieties of procurement cost pressure is larger Raw material stress test shows that the current turtle age set raw materials from the supply pressure, mainly from the ground yellow, ox knee, cloves, epimedium, bone fat and seahorse; From the perspective of quality pressure, it mainly comes from Epimedium, Seahorse, Suoyang and so on
    .
     
    2.
    The wild resources of Epimedium are reduced, and the content difference is large Under the stimulation of high prices, the growth rate of Epimedium cannot keep up with the mining speed, and the wild resources of Epimedium are gradually depleted
    .
    goat weed produced in Longnan, Gannan, Linxia, Dingxi, Diebu County and other places in Gansu is favored by the majority of pharmaceutical factories and pharmaceutical manufacturers because of its good quality and high content, while the content of epimedium in Sichuan and other places is low and the price is low
    .
    In the future, this contradiction between supply and demand will become more prominent, and the price of high-quality epimedium in Gansu will continue to rise
    .
     
    3, the core reason for the low net profit of the well-known far is not entirely from the pressure of raw materials Through data analysis, we found that although the company achieved a turnaround, the net profit margin still has a large room for growth, and this growth space on the one hand is to control the cost of raw materials; On the other hand, it is necessary to reduce the cost of selling
    .
    From the 2021 financial report, it can be seen that under the condition of the company's total revenue of 854.
    2 million yuan, the sales expenses of the wide reputation account for more than 90%.

    The regulatory work letter also mentioned that guangyuyuan's sales expenses in 2021 reached 782 million yuan, the highest
    in history.
     
    In summary, in 2022, the reputation of returning to Shanxi's state-owned assets has been reversed, and the results of enterprise management have continued to appear and the benefits have rebounded
    significantly.
    In addition, the company strengthened the terminal sales management, increased the collection of accounts receivable, the company's net operating cash flow at the end of the reporting period was 53.
    7086 million yuan, a substantial increase of 88.
    20%
    over the same period of the previous year.
    However, 12 of the 16 raw materials in the company's core product Gui lingji have risen, causing a lot of pressure on the company's costs, and we must pay attention to raw material cost control
    in the next few years.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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