Zuoli Pharmaceutical
Key Institutions:
Ruijun Assets: Shen Xiaoyuan
E Fund: Yu Xinxin
Survey Summary:
Question 1: What is the growth of the number of hospitals covered by the company in recent years?
Answer: Since 2018, the company has taken advantage of the advantages of its core products entering the national essential drug list and the implementation of the "986" policy of essential drugs to continuously promote the construction of the marketing system, and adopt the two modes of self-management and investment promotion to go hand in hand, among which the number of hospitals in Wuling capsule has grown from more than 3,000 in 2018 to more than 10,000 now, and there are about two or three thousand newly developed hospitals every year; The number of hospitals covered by Bailing Tablets and Lingze Tablets is also expanding rapidly. Hospital development will be affected by policies, markets and other factors, the company's three core products as national essential drugs, in the coverage of medical institutions at all levels has a lot of space, on the one hand, the company will use the national basic drugs and centralized procurement to speed up the hospital coverage and deep cultivation; On the other hand, the National Health Commission is comprehensively promoting the construction of a close county-level medical community, which will also help the company sink into county-level hospitals and grassroots medical institutions.
Question 2: What are the other areas where Wuling capsules have not entered the centralized procurement?
Answer: Zhejiang, Shanghai and Shandong and other provinces and cities have not yet released information about the centralized procurement of Wuling capsules, and other provinces that have not yet implemented have basically been included in the Beijing-Tianjin-Hebei "3+N" alliance, but the actual implementation time of each province is different.
Question 3: What are the competitors of Wuling Capsule?
Answer: Wuling Capsule is the company's exclusive variety, with high industry barriers, and the main competitors are Shugan Jieyu Capsule, Baile Mian Capsule, Tranquilizing Brain Fluid and other soothing traditional Chinese medicine products. At the same time, Wuling Capsule, as a single-flavor traditional Chinese medicine preparation of Wuling fungus powder, has high safety and clear efficacy, and can be used alone or in combination with Western medicine, Chinese patent medicine, and Chinese medicine decoction pieces, with obvious product advantages. According to the relevant data of "Analysis of the Use of Tranquilizing Chinese Patent Medicines in 121 Hospitals in 9 Cities in Mainland China from 2017 to 2020" published by the Department of Pharmacy of Peking University People's Hospital in the Journal of Clinical Drug Therapy in April 2022, the amount of drug use and DDDs of Wuling Capsule have always ranked first.
Question 4: How does the company consider the promotion strategy of Wuling Capsule in chain pharmacies?
Answer: Wuling capsule is currently mainly sold in the hospital, and has a high degree of recognition at the clinical and academic ends, and has now entered 67 clinical guidelines, expert consensus and monographs, and also has a good brand influence. Therefore, the company's strategy for Wuling Capsule on the OTC side is to do a good job in patient acceptance, increase the coverage of out-of-hospital pharmacies, and improve the accessibility of consumers to purchase drugs; The second is to cooperate with chain pharmacies to go into the community, carry out sleep health public welfare activities and other ways to strengthen the scale screening and popular science education for consumers, continue to build the brand effect of Wuling capsules, so that more consumers take the initiative to enter pharmacies to buy Wuling capsules, and improve the sales of OTC ends. The company has its own OTC team, and has also hired advantageous third-party marketing consultants to synergistically strengthen the exploration and promotion of OTC, hoping that the sales ratio on the OTC side can reach more than 20% in the future.
Question 5: What is the current situation of Bailing Capsule?
Answer: Bailing Capsule has completed the work of hanging the net in more than 20 provinces.
Question 6: Can the company's production capacity meet the growth of the company's product sales?
Answer: There is no problem with the company's current production capacity, the company takes into account the planning in the next few years, and carries out technical transformation and intelligent upgrading of related production lines to further expand production capacity; At the same time, the company's fund-raising project is mainly to cope with the increase in sales of the company's core products, of which the annual output of Wuling fungus powder will increase from 600 tons to 900 tons, and after the completion of the overall project construction, it will also effectively increase the production capacity of the company's core products.
Question 7: Wuling Capsule has achieved rapid growth through the identity of centralized procurement to achieve price for volume, in the next 2-3 years, when the specification conversion is completed, how to ensure sustainable growth?
Answer: First of all, with the successive implementation of centralized procurement in various provinces, it will continue to promote the growth of sales, which comes from the conversion of large packaging in hospitals on the one hand, and from the centralized procurement areas on the other hand, especially the development of new hospitals in provinces where our sales coverage is not very good; At the same time, the National Health Commission has further refined the assessment of the proportion of basic drug prescriptions in tertiary public hospitals and secondary public hospitals, which is more conducive to the sales of basic drug products in hospitals. Secondly, the National Health Commission has comprehensively promoted the construction of a close-knit county-level medical community, which will help the further coverage of Wuling capsules, including medical institutions such as grassroots hospitals and community health service centers, with a relatively broad space. Thirdly, the promotion of Wuling capsule has gradually entered the "3.0 version" from the treatment of insomnia, anxiety and depression, the company is carrying out the secondary development of Wuling capsule and the research on mild cognitive dysfunction (MCI), the instructions of Wuling capsule itself have the indication of "forgetfulness", so let MCI patients prevent or delay the occurrence of AD through early screening, early diagnosis and early treatment and use Wuling capsule alone or in combination to prevent or delay the occurrence of AD, and give full play to the advantages of traditional Chinese medicine "preventive treatment". This is also a big market and growth point.
Brokerage Research Report:
*ST Jingfeng
Key Institutions:
Survey Summary:
Question 1: The stock price has plummeted and is on the verge of delisting, is your company ready to delist as a non-delisting and does it have any self-help measures?
Answer: The company is studying and will take a number of measures to improve the existing situation, and actively make every effort to save itself, please pay attention to the company's follow-up announcement. The company has set up a special working group, composed of the company's senior executives and the heads of the company's internal core business departments, to actively study the plan and ensure the normal operation of the company in view of the current difficult situation.
Question 2: Does the chairman understand that the company has the risk of retirement? How does the company plan to respond?
Answer: the company actively pays attention to the relevant risks, the company's management holds regular meetings, regular discussions, will take multiple measures to maintain the stability of the stock price, such as the information disclosure standards of the company will timely fulfill the obligation of information disclosure, please pay attention to the company's announcement.
Question 3: At present, the company has been *ST, is the company's revenue sure to exceed 300 million in 2024, is it sure that it will not be delisted?
Answer: The first quarter was affected by the Spring Festival holiday and the characteristics of the pharmaceutical industry, which is the off-season for industry sales. In the first quarter of 2024, the company achieved an operating income of 100.5757 million yuan, and the production and operation of all pharmaceutical production and sales subsidiaries within the scope of the company's consolidation are actively improving, and the annual budget target is achieved in full sprint.
In order to ensure the company's sustainable and stable operation and eliminate the negative impact caused by insufficient net assets, the company is actively taking a variety of effective measures to increase the company's net assets, reduce the scale of debt and financial costs, improve the overall anti-risk ability and achieve cost reduction and efficiency increase. At the same time, the company has been actively improving its operating conditions, enhancing business profitability, and eliminating the impact of unfavorable factors on the company as soon as possible:
1. Maintain the stability of production and operation, and make every effort to ensure the adequate supply of medical insurance products; Actively explore the third terminal sales market of products in private hospitals and clinics, and the company is currently carrying out business negotiations with a number of large private medical groups to expand new sales growth points for the company's products.
2. Strengthen the budget assessment and control, give full play to the rigid role of the budget, and ensure that the company's operating income, cost control and other budget indicators can be implemented.
3. Take multiple measures at the same time to increase the intensity of collection and debt settlement, for the accounts receivable in previous years, the company is also actively adopting legal measures while arranging special personnel to collect them, so as to maximize the protection of the company's interests and provide financial support for the company's production and operation.
4. Strengthen internal control management, sort out all aspects of internal control, optimize the company's internal control management process, find out the deficiencies in internal control management and correct them in a timely manner, so as to ensure that the company's internal control management is legal and compliant.
5. The company will continue to promote the resolution of the current risks by means of marketization and rule of law, and if the company enters the reorganization procedure in the future, the company will cooperate with the court and the administrator to carry out the relevant reorganization work in accordance with the law, and fulfill the legal obligations of the debtor in accordance with the law.
The company cannot make a commitment to "ensure that it will not be delisted" and "remove the star and remove the hat", but the company will continue to explore other ways to save itself and make every effort. Here, we also hope that the majority of investors will make suggestions!
Question 4: Is there any news on the creditor's application for reorganization?
Answer: At present, the company has not received the documents of the Changde Intermediate People's Court to initiate the pre-reorganization or accept the reorganization application, and there is still uncertainty as to whether the company will enter the pre-reorganization or reorganization procedure. Since receiving the creditor's application in April, the company has communicated with all parties and discussed solutions through multiple efforts, and at the same time, the company has actively maintained communication with the court and cooperated with the court's work. The Company will continue to promote the resolution of the current risks by means of marketization and rule of law, and if the Company enters into the reorganization procedure in the future, the Company will cooperate with the court and the administrator to carry out the relevant reorganization work in accordance with the law, and fulfill the legal obligations of the debtor in accordance with the law. Investors are advised to pay attention to the associated risks. Regarding the relevant progress of the company's reorganization and pre-reorganization, please pay attention to the company's relevant announcements.
Question 5, on June 13, 2024, it was reported that the National Health Insurance Administration will open the "2024 National Basic Medical Insurance, Work-related Injury Insurance and Maternity Insurance Drug Catalogue Adjustment Work Plan (Draft for Comments)" and the "2024 National Basic Medical Insurance, Work-related Injury Insurance and Maternity Insurance Drug Catalogue Adjustment Application Guidelines (Draft for Comments)", including the scope of adjustment of the drug catalogue in 2024 and related working procedures, to the public for comments. Is this an opportunity for the company, how many products are ready to apply for national medical insurance and provincial medical insurance?
A: As of December 31, 2023, the company has a total of 48 varieties listed in the "National Basic Medical Insurance, Work-related Injury Insurance and Maternity Insurance Drug Catalogue", including 19 in Category A and 29 in Category B; A total of 19 varieties are included in the National Essential Medicines List. At present, the company's products that are not included in the national medical insurance catalogue include adenosine monophosphate for injection, ginsengxiong glucose injection, Jinji pills, lizhuzole aerosol, Tongdi capsules, women's flat capsules, children's rejuvenation granules, ice gardenia pain aerosols, antithrombotic pills, and bone tendon pills.
For Western medicines and proprietary Chinese medicines that are not included in the catalogue, they can apply to participate in the adjustment of the 2024 drug catalogue if they meet the provisions of Articles 7 and 8 of the Interim Measures for the Administration of Drugs in Basic Medical Insurance, and have one of the following circumstances:
1. New generic drugs approved for marketing by the State Food and Drug Administration from January 1, 2019 (inclusive, the same below) to June 30, 2024.
2. During the period from January 1, 2019 to June 30, 2024, with the approval of the State Food and Drug Administration, there has been a major change in the indication or functional indication, and the drug approval certificate has been obtained for this change.
3. Drugs included in the National Essential Medicines List (2018 Edition).
4. Drugs that are included in the list of encouraged generic drugs or the list of children's drugs that are encouraged to be developed and declared, and are approved for marketing by the national drug regulatory department before June 30, 2024.
5. Drugs for the treatment of rare diseases approved for marketing by the State Food and Drug Administration before June 30, 2024.
The company's products such as Shenxiong glucose injection and ice gardenia pain aerosol are actively undergoing efficacy re-evaluation and related pharmaceutical research, and applying for new indications to participate in the adjustment of the national medical insurance catalog; Xinnaoning Capsule is also conducting post-marketing related research, and actively participates in the supplement of the national basic drug list.
Brokerage research report: no data yet
Wanda Information
Key Institutions:
Survey Summary:
Q1: What is the company's accounts receivable and how much has been accrued?
A1: As of the end of 2023, the company's accounts receivable book balance was 751 million yuan, the amount of impairment provision was 254 million yuan, and the net accounts receivable was 497 million yuan. The company's operating income in 2023 comes from about 50% of the smart medical and health industry, about 37% of the smart government industry, and about 13% of the Internet service industry. On the one hand, the company's customers are mainly large units such as government agencies and medical institutions, and the collection of some projects is affected by factors such as customer budget and approval process, and the payment cycle is long, but the customer credit rating is high, and the possibility of not being recovered in the long run is low. On the other hand, the Company made provision for impairment in accordance with accounting standards and accounting policies, resulting in a certain amount of bad debt provision on the Company's books. At present, the company's accounts receivable recovery cycle is relatively stable, there is no significant change in expected credit losses, and the expected accounts receivable impairment loss will not have a significant impact on the company's profit and loss in the future.
Q2: Please tell us about the cooperation with Huawei's Pangu model and the implementation of Bai Zexiao's medical model?
A2: We have been following up on Huawei's Pangu model. In July 2023, Wanda Information officially became an ecological partner of Pangu Model. The two parties agreed to jointly develop industry models, drive the intelligent upgrading of the industry, and share the opportunities and value of industrial upgrading brought by large model technology.
Based on its own industry experience accumulation and Pangu model, Wanda Information has built a smart city and medical and health industry model to promote the digital transformation of cities. By building a data hub, it will further empower many fields such as urban governance, economic development, health care, and people's livelihood services. For example, the application scenarios in the field of government affairs include decision-making assistance based on various variables in emergencies; Reducing the burden on grassroots staff, etc.
Zhejiang Ningtang Health Big Data Technology Co., Ltd. (hereinafter referred to as "Ningtang Health"), a shareholding company of Wanda Information, has created an industry model for the medical and health field - Bai Zexiao. Ningtang Health is a joint venture between Ningbo Jintang, our wholly-owned subsidiary in Ningbo, and Ningbo Commerce Holding Group.
Ningtang Health takes Bai Zexiao's large model as the basic base of the regional medical and health model, combines the company's years of technology accumulation in the field of big data and artificial intelligence, and fully analyzes and mines the data value of various subdivided scenarios, and develops characteristic applications and services for medical, public health, health management and other scenarios. In addition to the G-side oriented functions, there are applications for both the B-side and the C-side. The common B-side is the doctor's assistant - to assist in diagnosis and treatment decision-making, as well as the quality control of medical records. For the C-side, it focuses on personal health management, including chronic disease management and health management suggestions, which can intervene in chronic diseases and provide individual diagnosis and treatment suggestions.
Bai Zexiao's medical model is currently under internal management and use in a hospital in Ningbo, and the project is being accepted. We have upgraded and optimized the large model of Bai Zexiao's medical model. After the upgrade and optimization, we will file with the Cyberspace Administration of China.
Q3: What is the company's layout in terms of data elements?
A3: Wanda Information has a full-stack data product in terms of data. We have an enabling platform and data hub, which embodies Wanda Information's advantages in data elements. We have always emphasized "polycommunication and utilization", and have full-stack data products in five aspects, including data aggregation and governance. In the past 30 years, China's informatization has established a large number of information platforms, but how to gather and use the data on these system platforms is a problem. Our customers are now asking for this.
The circulation and connectivity of data is the key, and we need to consider how to open up the data, and then give it to the people who need to use it, and set permissions for data management and operation. Wanda Information has a full-stack management model, and these data products empower our development, including digital intelligent medical health, digital intelligent government affairs, digital intelligent finance, health cloud, Manniu health, etc. In terms of landing, data is closely integrated with AI large models, and one of the key elements of AI is governed high-quality data. Our products use artificial intelligence algorithms to interpret and analyze physical examination reports, which can be used by China Life's insurance customers on China Life's big health platform. The product can interpret the physical examination reports of various medical examination institutions and put forward health management recommendations and interventions. In addition, we also have Bai Zexiao's medical model and diabetes screening model, as well as the Internet + health service platform exclusively entrusted and authorized by the Shanghai Municipal Health Commission - Health Cloud. In Ningbo, Zhejiang, the national health information platform has accumulated a large amount of medical and health data. After compliance authorization, based on these high-quality data, we cooperate with drug research institutions, research institutions, etc. to provide data demand services. There is a wide space for data trading, on-exchange trading and over-the-counter trading.
Q4: What are the company's growth points in the future? What are the main aspects of China Life synergy?
A4: Regarding the business growth point of Wanda Information, although the company's business segment is affected by the government's budget, we are actively expanding into new areas, especially in digital government, the overall construction planning of digital China, and the operation of data elements, we see great potential. The establishment of the National Data Agency and the ongoing need for artificial intelligence provide us with the opportunity to retrofit legacy IT systems with new technologies.
At present, the company's main customers are more purposeful in the investment of informatization, which provides us with the opportunity to use their own advantages to monetize, which is the direction that the company needs to focus on when carrying out market layout in the future.
In terms of the medical and health sector, there are several trends: (1) The country is promoting the gradient development of medical resources, including the development of national medical centers, the pilot project of high-quality development of public hospitals, the thousand-county project and the contracted service of grassroots family doctors, and there are corresponding policy guidelines and financial support for medical resources at different levels. (2) The pilot project of high-quality development of public hospitals is supported by national financial funds. At present, there are two batches of pilots, each covering 15 cities, and the national finance of each city has matched 500 million yuan of special funds to promote the development of the pilot. At the regional level, the foundation lies in how to more effectively aggregate and govern medical and health information, which we call digital infrastructure. Only when the digital infrastructure is strengthened can it be possible to generate data value and promote the process of local reform. (3) Three-year action plan. This is a document issued by the state in the second half of last year, and the state will organize a special team to conduct special supervision in each pilot province. Among the eight tasks, in our opinion, there are 4 core tasks and 4 basic tasks. The four core tasks include the effective circulation of residents' electronic health cards at the national level, the efficient aggregation of electronic health records, the mutual recognition of inspection reports, and the rapid settlement of commercial insurance in the medical process. In response to the health file task, on June 18, the state released the document on the first page of the electronic health record, which is a further explanation of the electronic health record in the three-year battle, and will open a new era of health record data governance.
In the past ten years, the company has performed well in the field of medical and health care, ranking first in the regional health market share and ranking first in the country in terms of single data volume. The company has been deployed in 26 provinces and cities, and the residents' electronic health card has been applied in Hubei, Hunan and Shaanxi provinces; The mutual recognition part of inspection and inspection began to be explored in Shanghai as early as 2019, optimizing the original business process through informatization and reducing repeated inspection and examination by patients.
To sum up, we have a deep accumulation in the field of medical and health care, and we will give full play to our industry advantages under the guidance of the high-quality development of public hospitals and the three-year action plan, and we are confident to strive for more market share.
In addition, China Life synergy is one of the future growth points of our business. For example, in terms of medical insurance, we have successful cases in the connection and integration of medical insurance and commercial insurance in Heilongjiang, and we have a sufficient foundation both at the technical level and the accumulation of industry experience. In other fields, such as the field of health and pension, the demand for health management of life insurance companies has become more rigid, and the company attaches importance to the improvement of its own capabilities and the integration of health management resources, which will provide better services for insurance companies in the future. With the strengthening of synergy between the two sides, there is still room for development in this field. In addition to direct business cooperation, China Life has also given the company assistance in market development.
Q5: What is the current composition of the management team dispatched by China Life?
A5: When China Life first acquired a stake in Wanda Information, the management team dispatched by China Life was based on the investment line, including personnel from China Life Group and its member units. After the change, the management team dispatched by China Life is mainly composed of scientific and technological R&D line personnel, mainly composed of industry insiders, management and technical experts.
Brokerage Research Report: