This pharmaceutical company is powerful! Last year's huge loss was nearly 400 million, and this year's loss turned into profit

Recently, Shuangcheng Pharmaceutical Co., Ltd disclosed the third quarter report of 2017 The report shows that the performance of the first three quarters of this year is still in the state of loss It is expected that the net profit of the whole year will turn into profit year on year, with a loss of 388 million yuan in 2016, which means that the "cap" is avoided at the last moment However, how does Shuangcheng pharmaceutical industry reverse its declining performance?   none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; Border bottom color: rgb (0, 0, 0); box side: border box! Im portant; word wrap: break word! Im portant; "> last year: a huge loss of nearly 400 million yuan Table 1: performance of Shuangcheng pharmaceutical industry in 2016 (unit: 10000 yuan) Shuangcheng pharmaceutical industry is mainly engaged in the production, sales and research and development of chemical synthetic peptide drugs In 2016, it realized operating revenue of 145 million yuan, a year-on-year decrease of 37.16%, and net profit loss of 388 million yuan Shuangcheng pharmaceutical said that it was affected by factors such as the accumulated net profit of Hangzhou AoYa Biotechnology Co., Ltd in 2016 did not meet the expectation and the expense of some of the company's capitalized R & D projects In 2016, the accumulated net profit of Hangzhou AoYa invested by Shuangcheng pharmaceutical industry decreased significantly compared with the expected net profit According to the asset evaluation report, the total equity value of Hangzhou AoYa as of December 31, 2016 is 450 million yuan, the equity value of Shuangcheng pharmaceutical holding 46% of the equity is 207 million yuan, and the company's long-term equity investment in Hangzhou AoYa in 2016 should be provided with impairment reserves of 277 million yuan In addition, with the implementation of a series of policies such as the reform of registration and classification of chemicals and the evaluation of consistency, the original exenatide API and lyophilized preparation project of Shuangcheng Pharmaceutical Co., Ltd will no longer be declared; whether the original exenatide API and lyophilized preparation project can be approved according to the current dosage form under the new policy will have significant uncertainty The development expenditure of the above two projects will be transferred into the management expense in 2016, which will reduce the current profit by 45.4305 million yuan Shuangcheng Pharmaceutical Co., Ltd terminated the implementation of the equity incentive plan to accelerate the amortization of equity incentive expenses, reducing the profit by 13.933 million yuan; some varieties had a certain decline in price and sales slowed down due to the change of bidding policy; the implementation of the company's internationalization strategy significantly increased R & D investment; and the preparatory cost of the wholly-owned subsidiary Ningbo Shuangcheng in the early stage of production significantly increased   none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; border-bottom-color: rgb(0, 0, 0); box-sizing: border-box !im portant; word-wrap: break-word !im portant; "> this year: expected to turn loss into profit table 2: performance of Shuangcheng pharmaceutical in 2017 (unit: 10000 yuan) On October 23, Shuangcheng pharmaceutical disclosed the third quarter report of 2017 The company's operating revenue was 84.1165 million yuan, a year-on-year increase of 82.60%, and its net profit was 7.9204 million yuan, a year-on-year increase of 103.90%; in the first three quarters, the company's operating revenue was 161 million yuan, a year-on-year increase of 58.97%, and its net profit was - 9.6207 million yuan, a year-on-year increase of 95.69%, which means that the first three quarters are still in a state of loss It is worth mentioning that in this report, Shuangcheng Pharmaceutical Co., Ltd expects to turn its business performance into profit in 2017 compared with the same period of last year, with a net profit range of 8-12 million yuan Shuangcheng pharmaceutical said that in 2017, the management effectively expanded sales, reduced costs and expenses, and significantly improved operating efficiency compared with the same period last year by introducing new products, cost control, integrating sales resources, optimizing R & D projects, and disposing inefficient assets In fact, Shuangcheng pharmaceutical has made many actions this year to reverse its performance As the company plans to acquire major issues related to the pharmaceutical industry, on May 25, it issued a notice to suspend trading; on July 25, it terminated the planning of this major asset restructuring In order to alleviate the liquidity pressure of the company and its subsidiary Ningbo Shuangcheng Pharmaceutical Co., Ltd., Hainan Shuangcheng Investment Co., Ltd., the controlling shareholder of the company, has made several moves, such as increasing capital of RMB 200 million to Ningbo Shuangcheng Pharmaceutical Co., Ltd and providing free loan of RMB 230 million to the company and its subsidiary Ningbo Shuangcheng Pharmaceutical Co., Ltd   none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; border-bottom-color: rgb(0, 0, 0); box-sizing: border-box !im portant; word-wrap: break-word !im portant; "> Future: internationalization strategy At present, Shuangcheng pharmaceutical industry has been successfully developed in the domestic market: the immunoenhancing drug "Jitai" (thymus injection method new), which has obtained the marketing license issued by the Italian drug administration; thymopentin for injection, which is used for the treatment of severe acute esophageal variceal bleeding, severe acute gastric or duodenal ulcer bleeding; injection students for the auxiliary treatment of diabetic ketoacidosis Three chemosynthetic polypeptide drugs, such as somatostatin, and 21 other therapeutic drugs Among them, 19 varieties are listed in the national medical insurance catalogue, and 4 varieties are listed in the national basic drug catalogue For the future development strategy, Shuangcheng pharmaceutical said that it still aims at the international strategy On the one hand, with the improvement of R & D strength, it is necessary to cooperate with the introduction of relevant varieties to formulate corresponding overseas declaration and other work, and achieve the level of original research drugs to create favorable conditions for domestic bidding In recent years, the company has developed nearly 10 peptide products, and these projects are in different stages of R & D respectively In the process of internationalization, peptide varieties are the focus of R & D projects On the other hand, it actively cooperates with foreign enterprises to introduce foreign advanced innovative drugs or products with large domestic sales volume into China through patent licensing, cooperative development, holding acquisition and other ways Source: announcement of listed companies