Recently, leforth group, a subsidiary of humanwell pharmaceutical, and Alibaba Group’s local life platform signed a strategic cooperation ceremony, establishing a deep cooperation relationship between the two sides in o2o business. Jieshibang Health Products Co., Ltd., a subsidiary of lefoss health group, was established in 2001. It is a high-tech enterprise focusing on the R & D, production, brand operation and sales of sexual health products. It is a leading enterprise in the domestic condom market segment. Through this cooperation agreement, Jasper will make every effort to develop o2o express business. < p > < p > at the time of the new crown epidemic sweeping the world, Renfu pharmaceutical, as the only listed company with condom brand in a share, has been soaring. Since the beginning of this year, the company’s share price has increased by more than 150%, and reached a new high of nearly 40 yuan / share in August. Behind this, the company’s low performance and high debt are worrying. < / P > < p > the strategic cooperation between jesborne and Nemo mainly focuses on three aspects: one is to create a fixed promotion day on the 28th of each month to increase the preferential support of famo platform; the second is to integrate resources and flow support through all channels; the third is to create o2o explosive products, and continuous consumption is the core of all o2o businesses. For the cross-border marketing, a supermarket staff member, who did not want to be named, told investor.com that buying condoms online might be a good way because there was enough time to screen and compare. But on the other hand, family planning products such as condoms do involve personal privacy, so it’s really embarrassing to buy them in the form of order takeout. In the supermarket and other goods together to buy, not so inconspicuous is better. In recent years, with the promotion of awareness of contraception and disease prevention, and the increasingly open concept of sex, the supply and demand of condoms in China have witnessed explosive growth. Liding Industry Research Report shows that the production of China’s condom industry was about 9.43 billion in 2014 and increased to 15.73 billion in 2018; the demand increased from about 6.58 billion to 10.79 billion in the same period, and the market scale increased from 6.27 billion yuan to more than 10 billion yuan. However, Wang Xuehai, the director of humanwell pharmaceutical, said that nowadays, Jieshibang is also facing fierce competition. At present, Durex, Jieshibang and Gambon, the top three brands in the industry, account for about 80% of the domestic market share. The main driving force of market growth is no longer from the growth of penetration rate and consumption quantity, but from consumption upgrading. < p > < p > an analyst who does not want to be named believes that Durex’s advertising creativity is unforgettable compared with that of Jasper, while Okamoto is a “technical house” to the letter. “Durex occupies the first place in the condom market. According to the current market pattern, jasmine does not have the potential to directly compete with Durex. In the future, it is possible to compete with Durex only when there are innovations in management, brand image and key channels. < / P > < p > in fact, in terms of marketing, Jasmine has tried to catch up with Durex many times. For example, its “lasting series” uses NBA, European Football League and marathon events and other sports activities associated with the concept of permanence to carry out advertising marketing. As early as 2013, Renfu pharmaceutical, its shareholder, publicly presented gifts to shareholders holding more than 1000 shares of the company, which was one of three choices among jesborne condoms, Zukamu granules (cold medicine) and “Aiwei” aids rapid self inspection reagent. However, after a variety of water tests, jaspon finally “overturned”. Recently, jasmine’s advertising language is suspected of insulting women, and has been scolded by netizens, and its brand image has gone from bad to worse. In this regard, the official microblog of jaspon issued an apology statement on October 11, apologizing for the discomfort caused to the public due to lax content review, and seriously educated and punished the relevant staff. In fact, jaspon, with its English name, was originally a “domestic brand”. According to the data, Jieshibang was established on February 12, 2001, with its registered address at Luoyu Road, Donghu New Technology Development Zone, Wuhan City, Hubei Province. During the period, the company was 80% owned by Renfu pharmaceutical and 20% by Wang Xuehai. < p > < p > in 2006, humanwell transferred 70% of the equity of Jasper to Australian latex protection product giant Ansel at a total price of 137 million yuan. At that time, the overall valuation of “Jasper” was about 196 million yuan, accounting for 25% of the domestic market, second only to Durex. In this regard, the company also said, “the sale of jasmine is mainly due to the tight cash flow. However, it will not give up its dominant position in the field of reproductive health, and will continue to develop the reproductive health industry through its subsidiaries. < p > < p > on May 26, 2017, humanwell announced again that the company would spend 820 million yuan, join hands with CITIC’s companies to acquire the global gender health industry business assets of Anser, including jesborne company, at a total cost of about 1.37 billion yuan, and newly established leforth group. < / P > < p > according to the financial report of Jieshibang company in 2016, the company’s net assets are 36.2028 million US dollars, and the net profit is 12.0722 million US dollars. At this time, the value of Jasper was about 222 million US dollars, about 1.52 billion yuan. Once in a while, the overall valuation of Jasper has increased by nearly 8 times. < p > < p > in this regard, humanwell said that through all the above mergers and acquisitions (including Jieshibang), the company will have the world’s advanced condom product R & D system, production technology, quality system and product reserve, as well as a number of global well-known brands as well as the corresponding global marketing system and sales network. Nevertheless, this operation still causes the market to be puzzled. After the announcement was issued on the same day of opening, humanwell quickly fell to the limit, and its share price fell for four consecutive days, from 21.08 yuan / share to 18.73 yuan / share. < / P > < p > it is worth noting that the proportion of the total revenue of Renfu pharmaceutical is not large in the group and its condom business. According to the annual report of 2019, humanwell pharmaceutical accounted for 45.5% of the revenue from the pharmaceutical manufacturing industry, and 54.1% from the pharmaceutical wholesale and related businesses. By product, 70.6% of the company’s revenue comes from drug sales, 16.1% from other medical devices, and only 8.7% from condom sales. < p > < p > in the view of insiders, humanwell is a controversial company. If you split up its business, it may be very valuable, but if you combine it, the company seems to be worthless. < p > < p > humanwell’s main business covers pharmaceutical manufacturing, pharmaceutical commerce, gender health and other fields. As an old pharmaceutical enterprise, the company has formed five industrial patterns of medicine, reproductive health, environmental protection, real estate and finance. Since 2009, the company has gradually focused on the pharmaceutical industry, and launched a series of mergers and acquisitions after 2012. < p > < p > from 2012 to 2017, humanwell successively acquired Beijing Barry Medical Equipment Co., Ltd., Xinjiang Uyghur medicine, and American generic pharmaceutical enterprise epic pharma. According to the notes to the financial statements, in 2011, there were 12 invested companies involving goodwill; by the time of interim report in 2018, there were more than 40 invested companies involving goodwill. < / P > < p > with the merger and acquisition again and again, the goodwill accumulated on the book of humanwell medicine gradually increased. According to the financial report, the book value of the company’s goodwill soared from 167 million yuan at the end of 2011 to 6.475 billion yuan at the end of 2017. In 2018, humanwell Pharmaceutical Co., Ltd. had a reputation explosion for the first time, resulting in a direct loss of 2.662 billion yuan in net profit after deduction of non-profit. According to the company’s announcement, the loss is due to the total loss of goodwill impairment and intangible assets impairment loss of the wholly-owned subsidiary epic Pharma, LLC, totaling about 3 billion yuan. < p > < p > in fact, from the perspective of non net profit deduction, humanwell has already begun to decline. According to the annual report data of investor.com, in 2016 and 2017, the figures were 565 million yuan and 559 million yuan, with growth rates of 0.02% and – 1% respectively, while in 2015 it was 32.17%. < p > < p > according to the semi annual report of 2020, as of the end of the first half of 2020, Renfu pharmaceutical still has a goodwill of 3.831 billion yuan, nearly five times of the company’s net profit of 840 million yuan in 2019. Meanwhile, the company’s receivables from subsidiaries totaled about 2.006 billion yuan. < / P > < p > in addition to the explosion of goodwill, the asset liability ratio of humanwell is also high. As of the first half of this year, the total liabilities of humanwell reached 28 billion yuan, and the asset liability ratio was 61.51%. Previously, the company’s asset liability ratio was 53.10%, 59.71% and 60.02% from 2017 to 2019. What should be paid more attention to is that the proportion of equity pledge of major shareholders of humanwell is increasing. According to its announcement released on October 13, the company’s controlling shareholder, contemporary technology, pledged 500000 shares on October 12, accounting for 0.13% of its shares and 0.04% of the company’s total share capital. < / P > < p > the previous 9 days, the shareholder had just pledged 3 million shares, accounting for 0.22% of the company’s total share capital. Up to now, the number of shares held by contemporary science and technology is 396 million, with 306 million shares pledged, accounting for 77.24% of its shares and 22.6% of the company’s total share capital. < / 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. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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.