After deducting the non net profit, the roe is only 0.52%! Taiji group changes ownership

In the first three quarters of 2020, the operating revenue of Taiji group was 8.645 billion yuan, a year-on-year decrease of 3.85%; the net profit attributable to the parent company was 16 million yuan, a year-on-year decrease of 86.87%; after deducting non-profit, the net profit returned to the parent was – 55 million yuan, with a year-on-year decrease of 169.62% < / P > < p > after 20 months, the mixed reform of Chongqing Taiji industry (Group) Co., Ltd. (hereinafter referred to as Taiji group, 600129. SH) finally ushered in the latest progress Exhibition. According to the latest announcement, China Traditional Medicine Co., Ltd., a wholly-owned subsidiary of China Pharmaceutical Group Co., Ltd. (hereinafter referred to as “China traditional Chinese medicine”) and Chongqing Fuling state-owned assets investment and Management Group Co., Ltd. (hereinafter referred to as Fuling state investment), will jointly increase the capital of Taiji Co., Ltd. After the completion of the capital increase, the shareholding structure of Taiji Co., Ltd. will be changed to Fuling District SASAC holding 15.916%, Fuling state investment holding 17.417% and Chinese traditional medicine holding 66.666%. This also means that Chinese traditional medicine will become the limited controlling shareholder of Taiji, thus indirectly controlling Taiji group. < p > < p > < p > researchers of investment times have noticed that in recent years, the performance of Taiji Group is not ideal. In the first three quarters of 2020, the operating revenue of Taiji group was 8.645 billion yuan, a year-on-year decrease of 3.85%; the net profit attributable to the parent company was 16 million yuan, with a year-on-year decrease of 86.87%; the net profit loss of the parent company after deducting non-profit was 55 million yuan, with a year-on-year decrease of 169.62%; and the weighted return on equity (ROE) was only 0.52%. < p > < p > in recent ten years, the revenue of Taiji Group has increased from 5.986 billion yuan in 2010 to 11.643 billion yuan in 2019, but it is worth noting that the net profit attributable to the parent company after deducting non-profit has decreased from – 68 million yuan to – 157 million yuan, which belongs to nine losses in ten years. < / P > < p > it seems that Taiji Group has not been out of the whirlpool. As of November 2, 2020, Taiji Group closed at 13.56 yuan / share, down 60% from its historical high, and its total market value was only 7.551 billion yuan. According to the public data, Taiji group, established in 1993, is a large pharmaceutical group engaged in the production and sales of Chinese and Western medicines. It has a complete pharmaceutical industry chain including pharmaceutical industry, pharmaceutical commerce and medicinal plant planting. It is well known by the outside world for its annual sales of more than 1 billion yuan. From 2010 to 2019, the operating revenue of Taiji group increased gradually from 5.986 billion yuan to 11.643 billion yuan, showing an upward trend year by year. However, during the same period, the net profit of the company after deducting non-profit was negative for nine years, which were – 68 million yuan, – 133 million yuan, – 243 million yuan, – 172 million yuan, – 281 million yuan, – 536 million yuan, – 443 million yuan, 64 million yuan, – 84 million yuan and – 157 million yuan respectively. It can be seen from the above data that the revenue of Taiji Group has been able to maintain a certain growth in recent ten years, but the net profit attributable to the parent company after deducting non-profit has been negative except in 2017, with a total of – 2.117 billion yuan in nine years. However, researchers from the investment times have noticed that the reason why Taiji Group’s deduction of non net profit has been negative for nine years in ten years, but it can still persist in operation mainly lies in its continuous income and bank loans. < p > < p > take 2017-2019 as an example, the cash inflow of operating activities of Taiji group was 8.192 billion yuan, 9.926 billion yuan and 10.989 billion yuan respectively; in the same period, the cash received by the company from borrowing was 4.075 billion yuan, 4.899 billion yuan and 4.518 billion yuan respectively. To sum up, the proportion of cash borrowed by Taiji Group in cash inflow from operating activities was 49.74%, 49.36% and 41.11% respectively, while the net increase in cash and cash equivalents of Taiji group from 2017 to 2019 was only – 107 million yuan, 470 million yuan and 39 million yuan respectively. < p > < p > by 2020, Taiji Group’s operating revenue in the first three quarters was 8.645 billion yuan, a year-on-year decrease of 3.85%; the net profit attributable to the parent company was 16 million yuan, a year-on-year decrease of 86.87%; the net profit loss after deduction of non-profit was 55 million yuan, a year-on-year decrease of 169.62%. It should be noted that the monetary capital of the company in the first three quarters was only 1.568 billion yuan, while its short-term borrowings amounted to 3.569 billion yuan, and the non current liabilities due within one year were 524 million yuan. < p > < p > in fact, in the past ten years, except for 2018, the asset liability ratio of Taiji Group has remained above 75%, and its asset liability ratio has remained above 80% from 2012 to 2017. < p > < p > according to wind data, in 2010, the sales expenses of Taiji group were 819 million yuan, and the corresponding sales expense rate was 13.68% (the ratio of sales expenses to revenue). In 2019, the company’s sales expenses became 3.751 billion yuan, and the corresponding sales expense rate became 32.22%. According to the sales expenses of Taiji Group in 2019, the advertising and promotion expenses are 793 million yuan, accounting for 21.14%; the market maintenance and development expenses are 2.06 billion yuan, accounting for 54.92%. In other words, the sales expenses of Taiji group are mainly used for marketing and marketing. Under the influence of Xinguan epidemic situation, the sales expenses of Taiji Group in the first three quarters of 2020 will be 2.558 billion yuan, with the sales expense rate of 29.59%, ranking the eighth among A-share pharmaceutical and biological listed companies in the same period. What’s interesting is that although Taiji Group has spent hundreds of millions of yuan on promotion, from the sales data of trump brand products, the publicity effect is not ideal. According to the researchers of investment times, there are two varieties of Taiji group with sales amount of more than 1 billion yuan, namely ceftizoxime sodium for injection (yibaoshiling) and Huoxiang Zhengqi oral liquid. < / P > < p > the sales of ceftizoxime sodium (yibaoshiling) were not disclosed in the interim report and the third quarter report in 2020, while the Huoxiang Zhengqi oral liquid disclosed in the middle report achieved a sales revenue of 490 million yuan including tax in the first half of the year, with a year-on-year increase of 25.57%. It is worth noting that according to the annual report of 2019, the sales volume of Huoxiang Zhengqi oral liquid (10ml * 5 * 120) was 31.8757 million boxes, a year-on-year decrease of 51.64%; the sales volume of Huoxiang Zhengqi oral liquid (10ml * 10 * 70) was 41.2 million boxes, with a year-on-year decrease of 17.12%.

so novel coronavirus orally oral liquid, or less than last year, benefited from the opportunity to achieve the new fourth, fifth, sixth way of diagnosis and treatment of pneumonia, which is a new type of coronavirus infection this year. < / P > < p > as for Jizhi syrup, which contributed more than 300 million yuan in revenue, no sales data were disclosed in the interim report and the third quarter report in 2020. However, according to the annual report of 2019, the sales volume of Jizhi syrup (200ml * 40) was 11.3795 million boxes, with a year-on-year increase of 5.375; the sales volume of Jizhi syrup (100ml * 60) was 9.3259 million boxes, a year-on-year decrease of 13.49%. In terms of the overall net profit rate of sales, wind data shows that in recent ten years, the highest net profit rate of Taiji group was 10.90% in 2016 and the lowest was – 3.79% in 2014. For the rest of the year, the net interest rate on sales hovered below 5%. < / P > < p > it is obvious that subsidies account for a high proportion of the net profit attributable to the parent company of Taiji group, even in the first three quarters of 2019 and 2020, exceeding the current net profit attributable to the parent company. The opposite of subsidy is financial income. According to the researcher of investment times, Taiji Group is keen on capital market investment, similar to Shanghai Laishi (002252. SZ), a blood products company. According to the data, in 2018, 2019 and the first three quarters of 2020, the trading financial assets of Taiji group were RMB 208.102 million, RMB 56.3942 million and RMB 32.0327 million. However, as of the end of June 2020, Taiji group still held shares of Zhejiang Zhenyuan (000705. SZ), Southwest Securities (600369. SH), solar energy (000591. SZ) and heavy Pharmaceutical Holdings (000950. SZ), with a total book value of 173 million yuan at the end of the period, and an initial investment of 232 million yuan. Among them, solar energy, Southwest Securities and heavy medicine holdings held a higher proportion, accounting for 59.52%, 26.45% and 13.29% respectively. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. The State Administration of press and publication of the State Council is the key website of the State Administration of press and publication. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.