The chairman of the "mixed reform pioneer" retired and left, and there was almost no suspense about the "miscarriage" of Taiji Group's "14th Five-Year Plan".

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2024-06-28 10:42Titanium Media APP official account

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01The board of directors of Taiji Group received a written resignation letter from Chairman Li Yangchun due to reaching the statutory retirement age, and Li Yangchun led the mixed reform, ending the company's "nine losses in ten years".

02 However, the problem of "emphasizing sales and ignoring R&D" of Taiji Group has not fundamentally changed, and product iteration has lagged behind, with cumulative sales expenses reaching 21.536 billion yuan in the past five years and only 607 million yuan in cumulative R&D expenses.

In 032022, Taiji Group successfully turned around its losses, achieving a net profit of 350 million yuan, and the non-net profit deducted in 2023 will reach 774 million yuan, a year-on-year increase of about 111.23%.

04 Due to the difficulty of Li Yangchun's mixed reform results to meet expectations, there is almost no suspense about the miscarriage of Taiji Group's "14th Five-Year Plan", which will be the first practical problem faced by the successor.

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The chairman of the "mixed reform pioneer" retired and left, and there was almost no suspense about the "miscarriage" of Taiji Group's "14th Five-Year Plan".

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On the evening of June 27, Taiji Group (600129. SH) announced that the company's board of directors received a written resignation letter from Chairman Li Yangchun, who applied for resignation from the company's chairman and other positions because he reached the statutory retirement age.

In 2019, Li Yangchun took over the position from Bai Lixi, the old chairman of Taiji Group who has been at the helm for more than 20 years, and led the mixed reform, ending the company's "nine losses in ten years". In the past five years, the company's stubborn diseases of blind investment, extensive operation, and chaotic management organization have been improved, and Taiji Group will finally achieve substantial profitability in 2022 and 2023.

It can be said that under the rule of Li Yangchun, the "pioneer of mixed reform", Taiji Group did improve in the early stage of reform, but on the other hand, the bleak reality is that Taiji Group "emphasizes sales and ignores R&D", "emphasizes scale and does not emphasize profits", and the inefficient state of lagging product iteration has not fundamentally changed, and it is extremely difficult to complete the "14th Five-Year Plan" set in the first year of reform, although it has achieved profitability, the cumulative loss from 2020 to 2021 is as high as 1.253 billion yuan, and the debt is still high, and the dividend is weak.

All of the above is the real test left for the next head of the company and the "doer" CEO Yu Min, which is also the biggest question mark in the market.

The "mixed reform pioneer" retired and left office

In the "Announcement on the Retirement and Departure of the Chairman", Taiji Group spoke highly of Li Yangchun: "Promoting the company's transformation and upgrading, successfully completing the company's cooperation with the central government and Sinopharm Group, the company's operating income and operating profit have reached a record high, and have made significant contributions to the improvement of the company's operating quality and efficiency."

Source: Taiji Group announcement

Before taking over as chairman, Li Yangchun had nearly 20 years of work experience in the group: he entered Chongqing Tongjunge Pharmaceutical Factory in 1986, entered Fuling Pharmaceutical Factory in 1989, and successively served as assistant to the chief of the supply and marketing section and sales manager of Fuling Pharmaceutical Factory, general manager of the southern company of Taiji Group Co., Ltd., general manager of the sales head office of Taiji Group Co., Ltd., and deputy general manager of Taiji Group Co., Ltd.

After the acquisition of Sinopharm Group in 2021, Taiji Group's mixed reform has entered a drastic era, and Chairman Li Yangchun and General Manager Yu Min have made great contributions.

According to the 2021 annual report of Taiji Group, the functional departments of the headquarters have been streamlined from 29 to 20, and the subsidiaries in the industrial and traditional Chinese medicine resources and commerce sectors have reduced the total number of team members by 92 people, and the company has reduced by more than 300 people.

In 2022, Taiji Group successfully turned around its losses, achieving a net profit of 350 million yuan, and in 2023, the non-net profit deducted will reach 774 million yuan, a year-on-year increase of about 111.23%.

Who can relay the "14th Five-Year Plan" to complete?

At the beginning of 2022, Taiji Group proposed to strive for an operating income of 50 billion yuan by the end of the "14th Five-Year Plan", and "listed scientific and technological innovation as the first of the enterprise development strategy", and now there are less than two years left, and last year's revenue increased by 11.19% to 15.623 billion yuan, and the possibility of achieving performance indicators is infinitely close to 0.

What's more, its performance explosion in recent years contains a special factor: in 2021, the company's Huoxiang Zhengqi Oral Liquid was included in the "Diagnosis and Treatment Plan for Pneumonia Caused by Novel Coronavirus Infection" issued by the National Health Commission, which is recommended for the treatment of proprietary Chinese medicines during the fourth to eighth editions of the medical observation period.

Perhaps from this point of view, it is difficult to say that Li Yangchun's mixed reform results have met expectations. Behind the turnaround, Taiji Group's cumulative loss from 2020 to 2021 alone is as high as 1.253 billion yuan, more than the sum of profits in the past two years.

Source: Choice data

At the same time, the company's debt is still high, at the end of last year, the balance of short-term loans was 3.284 billion yuan, long-term loans were 342 million yuan, and the unrestricted monetary funds were only 1.65 billion yuan, the asset-liability ratio exceeded 74%, and the annual interest expense was as high as 140 million yuan.

Its sales expense ratio still ranks first among the top Chinese medicine companies, as high as 33.08%, reaching a record 5.23 billion yuan in 2023. In the past five years, the cumulative sales expenses have reached 21.536 billion yuan, and the cumulative R&D expenses are only 607 million yuan.

According to the 2012 annual report of Taiji Group, "in the past 10 years, the company has made fruitful scientific research achievements, successfully developed 40 new drugs, obtained 32 national new drug certificates, 65 production approvals, and 16 clinical approvals. ”

According to Taiji Group's 2023 annual report, "In the past 20 years, the company has made fruitful scientific research achievements, successfully developed more than 40 new drugs, obtained more than 30 national new drug certificates, more than 70 production approvals, and more than 20 clinical approvals. ”

Therefore, it is inevitable that some investors will comment sharply that the company's new drug research and development progress is "like lying flat and playing Tai Chi".

It is not difficult to see that there is almost no suspense about the miscarriage of the company's "14th Five-Year Plan", which will be the first practical problem faced by the successor. (This article was first published on the Titanium Media APP, by |.) Huang Tian)

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