Yunnan Baiyao stocks suffered a huge loss of 1.5 billion, and the net profit of Northeast Pharmaceutical and Taiji Group increased by more than 1000%!

On October 28, the topic of a loss of 1.
5 billion yuan in stocks of Yunnan Baiyao made a hot search
.
The company’s three-quarter report released the day before showed that in the first three quarters, it achieved revenue of 28.
363 billion yuan, an increase of 18.
52% year-on-year; realized net profit of 2.
451 billion yuan, a year-on-year decrease of 42.
38%, of which net profit in the third quarter was 649 million yuan, a year-on-year decrease 63.
94%
.
The reason why it increased revenue but not profit was mainly due to its 1.
5 billion yuan loss on stocks
.
According to incomplete statistics, as of the close of October 28, a total of 173 companies in the pharmaceutical and biological sector have disclosed their performance forecasts for the third quarter of 2021
.
Judging from the disclosed announcements, 13 companies including Frontier Biotech and Zixin Pharmaceutical suffered losses in the third quarter, and many companies such as Sansheng Guojian, Harbin Pharmaceutical Co.
, Ltd.
, and Weiming Pharmaceutical achieved a year-on-year turnaround in their net profits
.
In addition, among the major pharmaceutical companies that have disclosed their three-quarter reports for 2021, Harbin Sanlian, Jiaying Pharmaceutical, Northeast Pharmaceutical, Taiji Group, etc.
have performed well, with net profit growth exceeding 1,000% in the first three quarters; Mindray Medical, Hengrui Pharmaceuticals, etc.
The net profit of the four companies exceeded 3 billion yuan, and the net profit of Pien Tze Huang exceeded the 2 billion yuan mark for the first time
.
The weakened diversified development of the main pharmaceutical business encounters bottlenecks.
Yunnan Baiyao’s three quarterly report shows that its investment income in the first three quarters (except for the effective hedging business related to the company’s normal business operations, The gains and losses from changes in fair value, as well as the investment income from the disposal of transactional financial assets, transactional financial liabilities and available-for-sale financial assets) is about 1.
1 billion yuan; In other words, the stocks lost 1.
5 billion yuan
.
Affected by the news, as of the close of October 28, Yunnan Baiyao reported 88.
36 yuan per share, down 3.
83%, and the market value evaporated 4.
516 billion yuan
.
When the market opened in the morning, the stock once fell more than 6%, and the lowest price reached 84 yuan, the lowest since last June
.
In addition to the "stock speculation", various business segments of Yunnan Baiyao have encountered problems with performance growth, which led to a decline in its overall gross profit margin.

.
Beginning in 1998, Yunnan Baiyao began its diversification, and gradually formed the business structure of four major sectors: pharmaceuticals, daily chemicals, traditional Chinese medicine resources, and pharmaceutical commerce
.
Due to diversified development, the revenue share of its traditional pharmaceuticals segment continued to decline, from 26% in 2014 to 15% in 2019, and sales fell from 5 billion yuan to 4.
4 billion yuan
.
Since 2015, under the influence of policies such as medical insurance control fees and the "two-invoice system", domestic biologics and anti-cancer drug research and development have been surging during the same period, and many traditional Chinese patent medicine companies have transformed
.
However, Yunnan Baiyao has no new breakthroughs in the pharmaceutical field, and the main progress is still in the daily chemical series
.
More than 90% of the revenue in this series comes from the Yunnan Baiyao toothpaste series.
In 2020, the market share of Yunnan Baiyao toothpaste will reach 22.
2%, ranking first in the industry
.
In the same year, the company's oral cleaning products revenue was 5.
4 billion yuan, accounting for about 17% of its total revenue, and its net profit was as high as 1.
9 billion yuan
.
However, the hot toothpaste sales seem to have encountered a ceiling
.
Since 2017, the sales growth rate of Yunnan Baiyao toothpaste products has slowed down and has been as low as single digits for two consecutive years
.
Due to the continuous slowdown in performance, in order to break through the performance bottleneck, Yunnan Baiyao began to seek other outlets, including securities investment business
.
Industry insiders pointed out that Yunnan Baiyao has encountered a bottleneck in its development in recent years, and its main business has been weakening, and breakthroughs have also made it difficult to find the direction of development
.
However, the company's current large-scale foreign investment is not only difficult to revitalize the main business, but also threatens to marginalize the main business
.
Yunnan Baiyao's 2021 semi-annual report shows that the company currently holds 6 stocks and 4 funds including Yili, Tencent Holdings, Hengrui Medicine, and Tongwei
.
In May of this year, Yunnan Baiyao plans to invest 11.
2 billion yuan to participate in Shanghai Pharmaceutical's fixed increase plan
.
It is expected that after the issuance is completed, Yunnan Baiyao will hold 18.
02% of Shanghai Pharmaceuticals as a strategic investor and become the third largest shareholder of Shanghai Pharmaceuticals
.
However, with the continuous decline of investment income, the return on this investment remains to be further verified by the market
.
"Stocks" risk products are the foundation of life.
In fact, Yunnan Baiyao is far more than Yunnan Baiyao listed companies that have spent huge amounts of real money to "stock stocks"
.
Statistics show that as of the first half of this year, a total of 837 companies in A-shares have participated in securities investment, and 100 companies hold more than 10 securities
.
The listed pharmaceutical company that dragged down its overall performance due to "stock speculation" is not Yunnan Baiyao
.
According to wind data, as of October 28, a total of 40 listed pharmaceutical companies had a loss in net income from changes in fair value, with losses ranging from 10,000 to 1.
5 billion yuan
.
However, there are also some people who are happy and others who are worried about the "stock speculation" of listed companies
.
On October 22, Taiji Group disclosed its report for the third quarter of 2021
.
The report shows that the company achieved operating income of 3.
127 billion yuan in the third quarter, an increase of 8.
16% year-on-year; the net profit attributable to shareholders of listed companies was 171 million yuan, an increase of 2733.
26% year-on-year
.
Behind this rather dazzling performance, stock trading income has become an important "pushing hand"
.
Judging from the disclosed financial data, in the third quarter of 2021, Taiji Group's net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 9,712,600 yuan, a year-on-year increase of only 127.
72%
.
This also means that nearly half of Taiji Group's net profit of 171 million yuan does not come from its main business
.
Regarding the reasons for the performance growth, Taiji Group said that on the one hand, it comes from the increase in profits brought about by the increase in revenue and gross profit; on the other hand, the increase in the market value of the company's solar energy stocks increases non-recurring gains and losses
.
Tai Chi Group's performance increase is not unrelated to its traditional trump card products
.
In the third quarter of 2021, except for the decrease in revenue from neurological medications, Taiji Group's drugs in other fields have achieved varying degrees of growth
.
Among them, the revenue of digestive system drugs increased by 49.
66% year-on-year, mainly due to the increase in sales of Huoxiang Zhengqi Oral Liquid
.
It is reported that with the effective control of the epidemic and the entry of Sinopharm, Huoxiang Zhengqi Oral Liquid has turned its declining trend this year
.
In the first half of this year, Huoxiang Zhengqi Oral Liquid achieved sales revenue of 558 million yuan, a year-on-year increase of nearly 30%
.
The product was listed in the "New Coronavirus Infection Pneumonia Diagnosis and Treatment Program" issued by the National Health Commission in 2020 as a Chinese patent medicine recommended for the treatment of the fourth to eighth editions of the medical observation period
.
Northeast Pharmaceutical's performance improved due to the improvement of the epidemic situation.
According to the company's 2021 third-quarter report, its revenue in the first three quarters was 6.
105 billion yuan, a year-on-year increase of 11.
27%; net profit attributable to the parent was 25,497,600 yuan, a year-on-year increase 3040.
49%
.
Regarding the performance growth, Northeast Pharmaceutical stated that during the reporting period, as the domestic epidemic was effectively controlled, the company actively developed sales and formulated differentiated marketing strategies to effectively enhance product competitiveness
.
In addition to the above reasons, Northeast Pharmaceutical has been approved for the market in recent years for many products, such as Dapoxetine Hydrochloride API and Zidolamivudine Tablets, which has also driven the company's performance growth to a certain extent
.
From the perspective of industry insiders, "stock speculation" is a double-edged sword to the performance of listed companies, and the market risk is very high
.
Fluctuations in stock prices will affect the profits and losses of listed companies, which in turn will amplify the volatility of listed companies' performance
.
Companies that focus on their main business are more likely to be favored by institutions.
For pharmaceutical companies, R&D is the foundation of life, and improving product quality is the way to long-term development of the company
.
Strong R&D strength creates a "moat" of competition.
At the same time as the three quarterly reports are disclosed, the R&D expenses of various pharmaceutical companies in the first three quarters have also been exposed
.
Judging from the disclosed data, many pharmaceutical companies have invested more than 100 million yuan in research and development, and the research and development costs of pharmaceutical companies such as Hengrui Pharmaceuticals and Fosun Pharma have even exceeded 3 billion yuan.

.
According to Hengrui Medicine’s 2021 third quarter report released on October 19, its R&D investment continued to increase this year.
The R&D expenditure in the first three quarters reached 4.
142 billion yuan, of which R&D expenses in the third quarter alone reached 1.
56 billion yuan, accounting for more than 20%, a record high
.
In fact, Hengrui Pharmaceutical's annual R&D investment in 2020 is close to 5 billion yuan, and the proportion of R&D in revenue is rapidly approaching the level of multinational pharmaceutical companies
.
Large-scale R&D investment continued to promote, allowing Hengrui Pharmaceuticals to harvest results in the first half of this year
.
The semi-annual report shows that in the first half of this year, the company obtained 5 production approvals for innovative drug preparations, 9 production approvals for generic drug preparations, 41 drug clinical approvals, and obtained consistency evaluation approvals for 10 varieties, and completed the consistency of 2 products.
In the evaluation and application work, more than 240 clinical projects are being carried out at home and abroad; 131 new domestic patent applications and 39 new international PCT applications were submitted, 64 domestic authorizations and 59 foreign authorizations were obtained
.
In contrast, data from Oriental Fortune.
com shows that Yunnan Baiyao has invested 196 million yuan in R&D in the first three quarters, accounting for only 0.
69% of its operating income, which is lower than the level of comparable companies in the same industry
.
Data show that Pien Tze Huang and Baiyun Mountain's R&D investment accounted for 1.
61% and 1.
13% of revenue in the first three quarters
.
In the pharmaceutical industry, R&D investment has always been the main task for pharmaceutical companies to maintain their competitiveness
.
In recent years, as various policies have highlighted the importance of the R&D side, the long-term "sales rather than R&D" situation in China's pharmaceutical industry is expected to be improved
.
The industry pointed out that continued large-scale R&D investment will further provide pharmaceutical companies with the driving force for sustainable development in the medium and long term
.