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How does Kangmei Pharmaceutical become a white horse stock with a market value of 100 billion? Analysis of the integrated business model of the traditional Chinese medicine industry chain _

Release Time:2022-04-15 Topic:Analysis of the Prospect of Kangmei Pharmaceutical Reading:123 Navigation:Stock Liao information > Health regimen > traditional Chinese medicine > How does Kangmei Pharmaceutical become a white horse stock with a market value of 100 billion? Analysis of the integrated business model of the traditional Chinese medicine industry chain _ phone-reading

The first growth peak of Kangmei Pharmaceutical occurred in 2006-2007. The revenue growth rate in 2006 was 41.22%, and the revenue growth rate in 2007 was 56.74%. In 2007, revenue exceeded 1 billion yuan for the first time, just five years after its listing.

Looking back, Kangmei Pharmaceutical has completed a number of investment and construction plans during 2003-2004, including:

Commercial land in Zhanlong Town, Puning City (budgeted investment of 44.5 million yuan) Province The decoration project of the engineering technology research and development center of Chinese medicine decoction pieces (planned investment of 22.05 million yuan) TCM decoction pieces production workshop (planned investment of 8.01 million yuan) Traditional Chinese medicine decoction pieces distribution center (planned investment of 23.88 million yuan) Drug storage land (planned investment of 4.71 million yuan) Chemical Reserve land for drug production base (planned investment of 4.2 million yuan) Land for the second phase of Chinese herbal decoction pieces project (planned investment of 56 million yuan)

The above investment projects total about 163 million yuan, which Kangmei Pharmaceutical will successively complete from 2003 to 2005. Its investment in 2003-2005 was 48.63 million yuan, 150 million yuan, and 23.08 million yuan in sequence, with a total of about 222 million yuan.

In addition, Kangmei Pharmaceutical promised to complete construction projects in 2001 during its IPO, including 4 production lines for chemical raw materials and preparations, with a total of about 220 million yuan.

The above data shows that after the listing of Kangmei Pharmaceutical, it has successively invested about 442 million yuan in the construction of production lines, workshops and storage projects for Chinese medicine decoction pieces.

After all the investment was put in place, the performance began to be realized in 2006. Therefore, it can be explained that the first wave of growth of Kangmei Pharmaceutical came from the "yin" of the IPO.

In the first round of performance growth, the fastest growing business was the Chinese herbal medicine business. In 2004, the business income of Kangmei Chinese herbal decoction pieces was 159 million yuan, accounting for 28.74% of the main business income; in 2005, it increased by 10.66%, and in 2006, it increased by 33.44%; in 2007, it increased by 49.23%, and its income reached 350 million yuan.

During the same period, Kangmei Pharmaceutical's other main products such as Peining, Luoxinping, Kangminosha, Kangmei Lilac also performed well.

With the rapid growth of performance, Kangmei Pharmaceutical started the next round of fundraising and development plan.

In 2006 and 2007, Kangmei successively completed two additional fundraisings, namely: 2006 (485 million yuan) and 2007 (1.023 billion yuan), with a total of about 1.5 billion yuan.

In 2008, Kangmei Pharmaceutical issued 900 million yuan of convertible bonds for separate transactions (at the same time, 166.5 million warrants were distributed); in 2009, the warrants were exercised, raising about 890 million yuan again.

The above fund-raising plans total about 3.3 billion yuan for Kangmei Pharmaceutical. These raised funds are used for the Chinese medicine logistics and distribution center project (planned to invest 1 billion yuan) and to supplement cash flow - some raised funds. The capital has limited use and cannot be used for project construction.

During this period, Kangmei launched projects including:

Kangmei Traditional Chinese Medicine Hospital Engineering Project (planned to invest 600 million yuan) Kangmei Beijing Traditional Chinese Medicine Production Base (planned to invest 300 million yuan) Chengdu Traditional Chinese Medicine Production Base (planned investment of 221 million yuan) Shenzhen office building project (planned to invest 180 million yuan) Informatization network upgrade and e-commerce platform (planned to invest 80 million yuan) Jilin Ginseng Industrial Park Base Project (planned to invest 400 million yuan) Bozhou Huatuo International Traditional Chinese Medicine City (planned to invest 150 million yuan) and other projects

These projects were basically completed in 2010 and before, and then began to realize their performance. Therefore, in 2011-2012, Kangmei ushered in the second round of growth peaks, with a revenue growth rate of more than 83% for two consecutive years, and its revenue exceeded 10 billion yuan in 2012.

In the second round of growth peak of Kangmei Pharmaceutical, the rapid growth of the Chinese herbal medicine trading sector is the main driving factorwhite. For example, in 2010, the trade income of Chinese medicinal materials was 1.328 billion yuan, a year-on-year increase of 60%. It accounts for more than 1/3 of the total revenue, and the profit margin is 44.17%, which is also higher than other business profits.

Here, we conclude that the second round of growth peak of Kangmei Pharmaceutical comes from the continuous investment in the trade of Chinese herbal pieces/traditional Chinese herbal medicines, and has successively improved the construction of upstream Chinese herbal medicine production sites, the construction of midstream trading platforms, and the downstream The establishment of a logistics, warehousing and distribution network in China has formed a trading system and business network of traditional Chinese medicinal materials that integrates production, sales and transportation.

During the same period, Kangmei Pharmaceutical completed the acquisition of 100% of the shares of Shanghai Meifeng Food Co., Ltd. and Shanghai Jinxiang Food Co., Ltd. in 2009, and began to develop food and health food products.

After the second round of growth, Kangmei continued to use the platform of listed companies to raise funds for development. In 2011, Kangmei completed a rights issue of 3.436 billion yuan. During the same period, Kangmei issued 2.487 billion yuan of corporate bonds to repay bank loans and supplement working capital.

In the next few years, Kangmei maintained an average annual investment of more than 1 billion yuan, and continued to store energy for the improvement of Chinese herbal medicine trade/Chinese herbal decoction pieces business.

According to the 5-year cycle, the investment in 2011 and after will gradually realize the performance.

Six major businesses with resource synergy and complementary advantages

Now, Kangmei Pharmaceutical takes Chinese herbal medicines and Chinese herbal pieces as its core, and its business system covers the upstream channels. Planting and resource integration of Chinese medicinal materials; professional market management of Chinese medicinal materials in the midstream, trade of traditional Chinese medicinal materials, production and sales of traditional Chinese medicine pieces, proprietary Chinese medicine preparations, health food, and chemicals, modern pharmaceutical logistics system; downstream medical institution resources, pharmacy trusteeship , OTC retail, chain pharmacies, direct sales, pharmaceutical e-commerce, mobile medical and other all-round multi-level marketing network.

Decoction pieces of traditional Chinese medicine: Kangmei Pharmaceutical's business of decoction pieces of traditional Chinese medicine is in a leading position in the industry, with a large scale of production and sales Number one. The business of Chinese herbal decoction pieces is oriented to hospitals and has established long-term cooperative relationships with more than 2,000 medical institutions.

Trade of Chinese medicinal materials: Since 2006, the trading business of Chinese medicinal materials has been gradually developed and has now developed into one of the core businesses of the company. In recent years, the company has continuously deployed and improved the professional market for traditional Chinese medicinal materials in key regions across the country, and has also established the Kangmei Chinese medicinal materials bulk trading platform (Kangmei e Medicine Valley), an online B2B e-commerce platform for bulk trading of traditional Chinese medicinal materials.

Health food: Started in late 2009. Later, Xinkaihe Food was established in 2013, focusing on promoting the business of health food and green food with the same origin of medicine and food, as the improvement and supplement of the big health industry, and at the same time promoting new marketing methods of e-commerce and direct sales. At present, the revenue of this segment is about 2 billion yuan.

Pharmacy hosting: Operates and manages the hospital's pharmacy, and sells Chinese herbal decoction pieces and medicines through the hosting pharmacy. According to the 2017 semi-annual report of Kangmei, there are more than 100 pharmacies in trust hospitals across the country.

Smart Pharmacy: The real-time circulation and collection of patients' prescriptions can be realized online through the direct connection to the hospital's HIS system, and patients can also upload their own prescriptions. Offline, the "Kangmei City Central Pharmacy" provides patients with Chinese herbal decoction pieces and Chinese and Western patent medicines, Chinese herbal decoction, and door-to-door delivery. The main layout is the key cities of Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu.

Hospital operation: Self-built Kangmei Hospital, successively acquired and integrated many local public hospitals to realize the precipitation of hospital operation and management. And through pharmacy trusteeship, supply chain extension services, "smart pharmacy", "network hospital", etc. to open up B and C-side demand, drive the trade and sales of Chinese herbal medicine pieces and Chinese herbal medicines.

Dual-line development of traditional Chinese medicine and medical services

The 6 major businesses of Kangmei Pharmaceutical can actually be summarized into 2 major lines - traditional Chinese medicine and medical services. Medical services, from the policy, market and company levels, Kangmei Pharmaceutical has good development opportunities. Below we will focus on the competitive advantages of Kangmei's main business.

Decoction pieces of traditional Chinese medicine

Decoction pieces of traditional Chinese medicine refer to the finished product after special processing of traditional Chinese medicine under the guidance of the theory of traditional Chinese medicine, which can be directly used in clinical treatment. traditional Chinese medicine. Decoction pieces of traditional Chinese medicine are in the middle reaches of the industrial chain of traditional Chinese medicine and are the most important link in the industrial chain of traditional Chinese medicine.

According to the data of the Ministry of Industry and Information Technology, in the first half of 2017, the sub-industry of traditional Chinese medicine decoction pieces processing realized the main businessThe business income was 104.788 billion yuan, a year-on-year increase of 21.33%, and the total profit was 7.361 billion yuan, a year-on-year increase of 22.78%. In the past ten years, the market size of Chinese herbal decoction pieces has maintained a growth rate of about 20-30%.

However, due to the low market access threshold, the processing enterprises of traditional Chinese medicine pieces are characterized by many, small and scattered, and the market concentration is very low.

According to the data from the National Bureau of Statistics, there are more than 1,000 Chinese herbal medicine processing enterprises above designated size. As a national leader, Kangmei Pharmaceutical had a revenue of 2.7 billion yuan in the first half of 2017, accounting for only about 2.6% of the industry.

Standardization is the focus of the sustainable development of the Chinese herbal medicine industry. In recent years, the state has promulgated a number of policies to guide the standardized development of Chinese herbal medicines, such as the pilot program for the construction of a circulation traceability system for Chinese herbal medicines, the notice to further strengthen the management of Chinese herbal medicines, and the guidelines for the construction of national Chinese herbal medicine logistics bases. It aims to establish a long-acting and dynamic standard for Chinese herbal decoction pieces.

At the same time, the state is constantly strengthening the supervision of Chinese herbal decoction pieces. From the sampling inspection, unannounced inspection information and exposure columns issued by the State Food and Drug Administration, it can be found that almost every week, dozens of Chinese medicine decoction pieces companies have Products that fail the inspection are listed on the "blacklist".

Kangmei is at the forefront of the market in the standardization construction of Chinese herbal decoction pieces. It took the lead in proposing and implementing the small package and color label management of Chinese herbal decoction pieces, and participated in the formulation of a number of national and provincial decoction pieces processing and quality standards, as well as the formulation of Chinese herbal medicine grade classification standards. It is a national technological innovation demonstration enterprise and the only pilot demonstration enterprise of intelligent manufacturing of Chinese herbal medicines.

Benefiting from policies such as "not included in the centralized procurement of drugs", "not canceled", "not included in the proportion of drugs" and other policies, traditional Chinese medicine decoction pieces can continue to increase in volume in the hospital market. Kangmei Pharmaceutical has the characteristics of a high degree of standardization, wide network coverage, and production capacity advantages in the business of Chinese herbal medicines.

Trade of Chinese medicinal materials

In terms of trade of traditional Chinese medicinal materials, Kangmei Pharmaceutical Co., Ltd. has made full use of the geographical advantages of Puning's professional market of traditional Chinese medicinal materials, and has been gradually developing since 2006. Chinese herbal medicine trading business.

In recent years, Kangmei has continuously deployed and improved the professional market for traditional Chinese medicinal materials in key regions across the country, and has independently built and strategically acquired traditional Chinese medicines such as Anhui Bozhou, Guangdong Puning, Qinghai Yushu, Guangxi Yulin, Qinghai Xining, Gansu Longxi, etc. Material Professional Market and Kangmei Traditional Chinese Medicine City.

As a result, it has formed a leading position and resource advantage in the physical trading market of Chinese medicinal materials, and by fully integrating the resources of logistics and warehousing bases, it has spread around the main production, circulation and trading markets of Chinese medicinal materials nationwide. Logistics network construction, build a modern pharmaceutical logistics system.

In the first half of 2017, Kangmei's Chinese herbal medicine trading segment achieved a revenue of 3.805 billion yuan.

It is also worth noting the follow-up development of the Kangmei e-Pharmaceutical Valley Chinese herbal medicine e-commerce platform.

Kangmei Traditional Chinese Medicine Network has built a modern pharmaceutical logistics and distribution system by integrating the resources of logistics and warehousing bases. At present, it has established more than 30 modern medicine distribution centers across the country, including Beijing, Northeast China, Shanghai, Puning, and Sichuan. Warehousing and logistics center, as well as more than 380 secondary service outlets covering the main producing areas of medicinal materials across the country.

Kangmei Traditional Chinese Medicine Network has also opened up the "agricultural materials" section to connect with upstream medicinal material planting farmers, provide farmers with market information such as seeds and seedlings, pesticides and fertilizers, machinery and equipment, and facilitate the procurement of relevant resources for medicinal farmers.

In the future, with the injection of Kangmei's offline resources, Kangmei Chinese Medicine Network may become an authoritative e-commerce website in the field of traditional Chinese medicine, and gradually generate income.

Smart Pharmacy

The Smart Pharmacy was pioneered by Kangmei Pharmaceutical and began to be piloted in Guangzhou, Shenzhen, Shanghai, Beijing and other places in 2015.

Its mode is to obtain electronic prescriptions, conduct professional prescription review, and provide patients with drug dispensing, decoction pieces, door-to-door drug delivery, and drug consultation by connecting with the HIS systems of major hospitals and social medical institutions. One-stop comprehensive pharmaceutical services.

The smart pharmacy has achieved a win-win situation for doctors, patients and enterprises. For the hospital, it can reduce the cost of dispensing and decoction in the outpatient pharmacy of the hospital, and improve the operation efficiency of the hospital; for the patient, it can solve the time cost of decoction and facilitate the patient to take medicine; The viscosity of the supply of medicinal decoction pieces increases the sales of Chinese medicinal decoction pieces.

As of June 2017, Kangmei Smart Pharmacy had a maximum daily prescription volume of 20,000, processed 2.5 million prescriptions in total, served about 16,000 outpatient doctors and served about 1 million patients.

Kangmei said that in the future, it will increase the "smart medicine"The capital investment of “Smart Pharmacy” in Guangzhou, Beijing, Shanghai, Shenzhen and Chengdu will comprehensively and rapidly promote the implementation of the target institutions in five key cities of Guangzhou, Beijing, Shanghai, Shenzhen and Chengdu. Group central pharmacies, maintain the first-mover advantage, and quickly form the company's leading position in the field of mobile medical services.

Medical services

Used in traditional Chinese medicine business In June 2013, Kangmei self-built Puning Kangmei Hospital, which has been invested in successively.

Nearly 1 billion yuan, the hospital is planned and designed in accordance with the standard of a third-class hospital, covering an area of ​​more than 100 acres, including more than 50 acres of medical area, medical building area of ​​nearly 120,000 square meters, and 500 beds can be opened in the first phase.

In April 2016, Kangmei invested in Meihekou Central Hospital to explore a new model of cooperative medical management; in December 2016, Kangmei signed a strategic cooperation agreement with the People's Government of Rongchang District, Chongqing and Rongchang Hospital of Traditional Chinese Medicine, and the three parties will invest 1 billion yuan Yuan cooperated to build Kangmei Rongchang Traditional Chinese Medicine Hospital according to the standards of tertiary hospitals, and Kangmei accounted for 80%; in January 2017, Kangmei acquired 90.27% equity of Kaiyuan Central Hospital, which is a second-class comprehensive hospital, and its medical income in 2016 was 129 million Yuan.

Kangmei's continuous investment in hospital operation is in line with the policy in recent years to guide social capital to run doctors and participate in the reform of public hospitals.

At the same time, such hospitals can become Kangmei's The model rooms that integrate medical service resources provide the soil for Kangmei to continue to explore the operation model of medical services. From a business perspective, these hospitals will also become a stable demander of Kangmei Chinese herbal medicine pieces/materials, providing space for its performance growth.

Kangmei's medical service layout also includes "Kangmei Health Cloud", which integrates services such as online hospitals, smart elderly care, chronic disease management smart devices, etc., and is an integrated platform for Internet + medicine.

In addition, Kangmei has also invested in health think tanks, financial leasing, health insurance, community health centers and other businesses, and has comprehensively deployed medical services. It hopes to create a "big health + big platform + big data + big service" system.

Self-driving and leveraging

To sum up, the development trajectory of Kangmei in the past 20 years and the main business lines have been recorded. How much Kangmei can develop rapidly Due to various reasons, such as the policy's continuous encouragement of traditional Chinese medicine, the scale of the traditional Chinese medicine market has continued to grow.

But more importantly, Kangmei can "self-drive" and "leverage". "Self-drive" reflects In the continuous improvement of the industrial chain layout of traditional Chinese medicine-related businesses, from medicinal materials to trade to decoction pieces, we have mastered the source, proposed standards, and established a system; Continuous capital reserves, and investment in project construction, cleverly "borrow" the power of the market to develop itself.

In a sense, as long as the trader maintains a grasp of the trends in the pharmaceutical industry and the capital market, Kangmei may be unfavorable.

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Label group:[Kangmei Pharmaceutical] [Chinese medicine] [pharmaceutical industry] [Chinese Herbal Medicine

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