Germany Exhibition Health (000813): Main Product Price Dragged Down Three Quarter Results

In October 11th, Tak Kai Kang released its three quarter earnings forecast. The company expects the net profit attributable to shareholders of Listed Companies in 2019 1-9 to 307 million yuan to 416 million yuan, down 58% to 43% over the same period last year.

As for the reasons for the fluctuations in its performance, Tak Kai Kang believes that the average selling price of the company's main products has dropped sharply due to the formal implementation of the "4+7 drug centralized procurement" policy during the reporting period, resulting in a sharp decrease in the company's revenues and net profits.

It is worth noting that in the first half of 2019, the performance of Tak Chi Kang has shown a sharp decline. In the first half of this year, the company achieved operating income of 922 million yuan, down 44.5% compared to the same period last year, and realized net profit of 242 million yuan, down 45.48% compared with the same period last year. At the same time, Tak also attributed the decline in performance to the increase in the sales volume of the 11 pilot areas due to the "4+7" purchase, but the unit price dropped, which led to a substantial reduction in the inventory of dealers who did not carry out the procurement area, resulting in a reduction in sales.

In this regard, de exhibition Jian Kang launched three takeover actions in 2019 years. In March this year, Germany exhibition health intends to buy 400 million of the 25% stake in hemp investment. After the agreement is reached, the two sides will carry out deep cooperation on the health industry of cannabis.

In September 24th, German exhibition Health announced that it signed investment letter of intent with Beijing Changjiang Mai Pharmaceutical Technology Co., Ltd. and its major shareholder Dai Yan, and will enter the field of disinfection technology to expand its product line.

In September 27th, the German exhibition health premium purchased 25.05% stake in Shandong Jincheng medicine, the industry said, Germany exhibition health this time is the Jincheng medicine in cephalosporin intermediates and other oligopoly position.

The action of "buy and buy" does not know whether the market can dispel the doubts about the "healthy dependence of the main products" on the healthy development of Germany, and at the same time, improve the profits of enterprises.