14 evening, Kyushu Group to get public approval. This means that Kyushu is coming soon to A-share market. Kyushu province 6 years will be listed on the first business. digital thermometer According to the prospectus, the past 3 years, Kyushu net profit margin around 1.5%. For a time, Kyushu margins become a hot topic outside.
By the industries in which the scale of victory.
1.5% gives an intuitive feeling that the low profit margins. clinical thermometer Such low profit margins, companies how to get a handsome profit in return? The answer of course is the scale of victory.
Kyushu is a need for economies of scale in the industry - pharmaceutical business. clinical thermometer The industry average profit is low, there is only the scale of profitability. In 2009, Kyushu's main business revenue reached 18.922 billion yuan, net profit of 3.04 billion. In 2008, this group was 16.28 billion yuan and the figure 203 million.
1999 formally to allow private enterprises to enter the national pharmaceutical circulation. digital blood pressure monitor In 2000, Kyushu company. By sales volume, from 2003 to 2009, Kyushu Chinese medicine for 7 consecutive years ranked No. 3 commercial industry.
Rapid expansion of the scale, can not fail to mention Kyushu's "fast approval, fast with" model, in short: to rely on low prices, rapid market development; rely on large quantities of fast running, to achieve low costs; rely on cash transactions, to achieve low-risk etc., will be submitted to the order, delivery, reimbursement and other areas in different time compression in that omitted the staff promotions, expediting, reminders and a series of steps to speed for efficiency.
Kyushu through the creation of such a market-based distribution business model, and has been in use ever since, the industry called the "Nine-mode." The model is based on the downstream wholesalers, pharmacies, private hospitals, clinics and other markets as the main target of our customers to provide pharmaceutical sales and distribution services. Characterized by low drug prices, lower gross margins, lower expense ratio, inventory turnover and accounts faster shorter.
Today, nearly all market-based pharmacies, private clinics and private hospitals are Kyushu customers.
Commercial circulation enterprises of traditional medicine directly to the larger medical institutions for more than two drug sales and distribution services. Characterized by high drug prices, higher margin, while the expense ratio greater account of the longer and higher accounts receivable. State-owned and state holding enterprises are mainly large pharmaceutical distribution business operations in this mode.
1.5% is a healthy profit margins.
In the same industry, 1.5% profit margin in the end what kind of a level?
We found that, regardless of China's pharmaceutical business peer comparison, or cf pharmaceutical business in America, Kyushu profit margins, now seem normal and healthy.
According to the statistics of China Association of Pharmaceutical Commerce, the national pharmaceutical business in 2005 gross profit margin was 8.19%, 7.53% expense ratio, profit margin of 0.66%; national pharmaceutical business in 2006 gross profit margin was 7.95%, 7.02% expense ratio, profit margins 0.93%; 2007, the national pharmaceutical business gross margin was 7.89%, 6.48% expense ratio, profit margin was 1.21%; 2008, the national pharmaceutical business gross margin 7.63% 6.45% expense ratio, profit margin of 1.18% .
In comparison, Kyushu rate slightly higher than the industry average net profit level. Currently, according to sales volume, domestic and Shanghai Pharmaceutical Group Sinopharm ranked twelve in the industry. In the pharmaceutical business world, these two companies are about 1.5% net profit margin.
Internationally, the relatively full market competition conditions, some benchmarking pharmaceutical commercial enterprises around 1.5% in net profit, which few companies more than 2%.
Information, Kyushu gross margin level and the expense ratio is close to the United States ranked first in the drug distribution business Mckesson.
2007 to 2009, Kyushu gross margins were 5.5%, 5.64%, 6.10%. The cost of the same period were 3.44%, 3.95%, 4.04%, lower than the peer average. Much depends on logistics costs and reduced management costs.
In order to reduce the medical logistics costs, improve operating efficiency and product distribution, reducing the error rate as early as 2001, Kyushu began the modern pharmaceutical logistics processes and related logistics technology research, and advanced logistics and technical exchanges integrators to explore the advanced logistics technology and the specific situation of China's pharmaceutical logistics logistics model combination.
Kyushu from Harvard, MIT, Tsinghua University, Hitotsubashi University, Wuhan University and other famous universities graduates in the inflow of talent, formed a research and development of industry-leading logistics technology and logistics management team. Kyushu is the Chief Technology Officer, Dr. Spring Valley, graduated from the Massachusetts Institute of Technology.
Now, Kyushu through logistics information technology research and development personnel and logistics staff of 429 people. In the past 9 years, Kyushu altogether planning invested 34 pharmaceutical logistics distribution center, self-developed Warehouse Management System (WMS), equipment control system (WCS), Transportation Management System (TMS), and made a number of independent knowledge property rights.
Kyushu modern pharmaceutical logistics systems and information management systems to meet customer multi-batch, multi-product regulation, small batch, large logistics requirements. Take small quantities, the Kyushu meet customer orders to a minimum package units (single-bottle, single) and efficient distribution and delivery.
If there is no support for the modern logistics technology, it is impossible to achieve decentralized to the volume of small pharmacies, clinics, small drug distribution company. Logistics technology determines the survival of medical logistics enterprise.
New business or boost profit margins.
Kyushu which direction will the future change in profit margin?
According to the prospectus, Kyushu is still currently the main source of profit for pharmaceutical logistics. Future profit growth depends largely on Kyushu after the listing of the increase in sales volume.
In addition, the Kyushu new business profit structure is changing. Including in the development process derived from the medical logistics information management technology, medical equipment, Chinese Herbal Medicine and pharmaceutical raw materials business. The emerging business of drug distribution gross profit margin is much larger than normal gross margins.
Therefore, the profit margins in the future on new, emerging business performance of the role will become increasingly apparent.
Through modern technology, upstream and downstream enterprises of logistics services, Kyushu become a "platform-based company." Medical logistics information management systems, medical equipment, Chinese Herbal Medicine and pharmaceutical raw materials and other services will benefit from this platform to benefit the brand and marketing network.
Yunnanbaiyao originally Kyushu drug supplier, has now become a new business customers.
In 2009, Kyushu Yunnanbaiyao developed for the medical logistics information management system, and provide the largest so far southwest of modern medicine Integrated Logistics Center program. Tianjin Jin Yao similar group customers include Guangdong beings pharmaceutical companies.
As of August 31, 2010, Kyushu has a total of nine, including upstream and downstream enterprises reached its development, construction, logistics, information systems agreement. Business Value agreement is reached about 2600 million.
In addition to the increasing proportion of new businesses can promote the margins, the Kyushu part of public financing will be used to repay bank debt, then the corresponding interest rate will reduce, but also help improve margins.
And other enterprises, for the Kyushu, the profit margin associated with a number of factors, profit margins can really improve, but also on whether the proper handling of Kyushu Pass is mentioned in the prospectus, the risk factors, such as a new business model, administrative policies and management of 14 kinds of risk.