Backed by state-owned assets, Kangmei Pharmaceutical was reborn

The package is different

2024-07-03 15:49Published in Guangdong financial field creators

The full text is 2499 words, and it takes about 8 minutes to read, so help me highlight the key points

Highlight the point

01Kangmei Pharmaceutical successfully applied for the withdrawal of "other risk warnings" five years after the financial turmoil, and its stock price rose for two consecutive days.

02The company will turn losses into profits in 2023, with a net profit of 103 million yuan and a year-on-year increase of 16.60% in operating income.

03After the acquisition of Guangzhou Pharmaceutical Group, Kangmei Pharmaceutical changed from a private enterprise to an enterprise with a state-owned background, and its business situation gradually improved.

04Due to the intervention of Guangzhou Pharmaceutical Group, Kangmei Pharmaceutical and Guangzhou Pharmaceutical Baiyunshan have played a synergistic role in scientific research and industrial innovation.

05In the future, with the support of Guangzhou Pharmaceutical Group, Kangmei Pharmaceutical will show its development vitality and corporate demeanor that are different from the past.

Technical support is provided by Tencent Hybrid Model

01

ST Combi takes off the hat

ST Kangmei's 190,000 shareholders were excited this time.

Five years after the financial turmoil, Kangmei Pharmaceutical finally "came back to life". On the evening of June 26, ST Kangmei issued an announcement that it would apply to the Shanghai Stock Exchange to withdraw the "other risk warning".

ST Kangmei said that the "other risk warning" situation touched by the company's audit report on internal control in 2020 has been eliminated, and the Bohai Trust case has taken effect and entered the enforcement procedure, and the company's profitability has continued to increase.

This time, the capital market also bought Kangmei's account very much, and the day after the announcement, ST Kangmei's stock price opened with a "word board" limit; On June 28, the upward trend continued, and the stock price approached the daily limit.

The market voted with real money and was optimistic about the prospects of Kangmei after taking off the hat.

Kangmei Pharmaceutical has been almost silent in recent years, and no one has paid attention to this former first stock of Chinese herbal medicines, and the company seems to have been actively dealing with various sequelae and disputes.

In 2022, ST Kangmei has completed the "star picking".

After continuously optimizing the internal governance structure, we finally applied for "hat removal" this year.

In fact, Kangmei's application for taking off the hat this time is full of confidence.

After nearly six years of adjustment and optimization, Kangmei Pharmaceutical's financial situation has been significantly improved. First of all, the company's internal control audit reports for the last two fiscal years have been issued with standard unqualified opinions, which indicates that the company's internal control system has been effectively repaired.

Secondly, with regard to the Bohai Trust case, which has attracted much attention, Kangmei Pharmaceutical has confirmed the expected liabilities, and the impact of relevant matters on the company has been determined.

In addition, Kangmei Industrial, the company's original controlling shareholder, has entered bankruptcy liquidation procedures, and Kangmei Pharmaceutical has declared its creditor's rights to Kangmei Industrial's administrator through judicial procedures, which also provides a guarantee for the company's future financial health.

More critically, Kangmei Pharmaceutical will turn losses into profits in 2023, with a net profit of 103 million yuan, which is the first profit since the fraud case.

At the same time, the company's operating income in 2023 will also reach 4.874 billion yuan, a year-on-year increase of 16.60%. This performance is undoubtedly the highlight of Kangmei Pharmaceutical's road to taking off the hat.

It shows that Kangmei has come out of the turmoil, and the company's operation is on the right track.

02

If not, turn losses into profits

Kangmei Pharmaceutical was once regarded as "in a desperate situation" by the outside world.

The founder of this company came from the grassroots, and in the 90s of the last century, he established a traditional Chinese medicine shop in the quicksand traditional Chinese medicine market in Puning City. It was listed in 2001, three years earlier than the then electrical giant Gome

It took less than 10 years to be listed, and it took more than 10 years to grow into a leading company in the field of traditional Chinese medicine decoction pieces, with a market value of up to 100 billion yuan.

When it was hot, Kangmei Pharmaceutical suffered great changes in the fall of 2018.

Kangmei Pharmaceutical Co., Ltd. was investigated for criminal liability for manipulating the securities market and disclosing and disclosing important information in violation of regulations, and the controlling shareholder and related parties occupied funds for non-operational purposes, resulting in the risk of delisting due to insolvency.

The company once had rumors of "imminent bankruptcy liquidation", but how did such a company that was almost in a desperate situation turn the tide and save itself?

This is due to the company's solid foundation. At present, the company is one of the enterprises in the domestic traditional Chinese medicine industry with a complete business chain, rich medical and health resources and strong integration capabilities, and the integrated operation mode and business system of the whole industrial chain of traditional Chinese medicine have been formed.

Kangmei's products have strong competitiveness and complete product categories, which are rare in the current Chinese medicine industry. At present, the company can produce more than 1,000 varieties and more than 20,000 specifications of traditional Chinese medicine decoction pieces; It has 26 high-quality Chinese medicine decoction pieces such as Panax notoginseng powder, American ginseng, Kangmei lily, Kangmei salvia, etc.; It has 8 high-tech products in Guangdong Province, such as white peony (decoction pieces), Dendrobium (decoction pieces, formula granules), and Kangmei Smart Pharmacy.

However, the most critical move is the introduction of Kangmei's "state-owned brother".

Guangzhou Pharmaceutical Group, one of the world's top 500 companies in 2021, officially took over Kangmei Pharmaceutical, which has become the dawn of hope for the company after facing an almost "doomsday" situation.

Guangzhou Pharmaceutical Group first invested 6.5 billion yuan in Kangmei Pharmaceutical through Shennong's partnership and became the actual controller of Kangmei Pharmaceutical, so that the company, which was sentenced to "death" by the market, successfully paid off all its debts.

In order to bring back this company on the edge of the cliff, GPC also organized a team of nearly 100 people to support Kangmei, and Lai Zhijian, who has a background in GPC, became the chairman of Kangmei at the beginning of 2022.

When the new Kangmei governance team was unveiled in 2022, the management had work experience in the companies under the Guangzhou Pharmaceutical Group.

It can be said that at this time, Kangmei has been reborn and officially entered the "era of general medicine".

03

Backed by state-owned assets, reborn from the ashes

The current Kangmei Pharmaceutical, but the name is still called Kangmei, in fact, the development logic has long changed.

After Guangzhou Pharmaceutical became the owner of Kangmei, it changed from a private enterprise to an enterprise with a state-owned background and strong roots.

Therefore, the reorganization of Kangmei Pharmaceutical at that time was able to receive strong support from the Guangdong Provincial Party Committee, the provincial government and party committees and governments at all levels. This also provides a solid foundation for the smooth rebirth of Kangmei.

After the acquisition of Guangzhou Pharmaceutical Group, Kangmei Pharmaceutical has ushered in drastic reforms from organizational structure, human resources, and strategic planning, and its operating conditions are gradually improving.

Kangmei Pharmaceutical once said in an announcement:

Taking the reorganization as an opportunity, we will retain and focus on the main business with traditional Chinese medicine decoction pieces as the core, and fundamentally improve the production and operation of Kangmei Pharmaceutical through a series of measures such as restructuring the business resource support of investors, injecting working capital, strengthening internal control, reducing costs and expenses, and improving the incentive and restraint mechanism.

It is precisely because of the active intervention of Guangzhou Pharmaceutical Co., Ltd. that Kangmei has been able to successfully turn losses into profits, and its sustained profitability is steadily improving.

On May 20, 2022, Kangmei Pharmaceutical Co., Ltd. successfully withdrew from the star and changed from "*ST Kangmei" to "ST Kangmei", which means that the company can continue to operate and avoid the risk of delisting, and the company withdraws from the "death line" and is initially transferred out of the ICU.

In fact, Kangmei can be realized in such a short period of time, and another key point is the complementarity between Kangmei and GPC.

Guangzhou Pharmaceutical Group is the first company in the world to enter the Fortune Global 500 with traditional Chinese medicine as its main business, and has been on the list for three consecutive years, currently ranking 426th, and is also the only Chinese enterprise selected into the list of pharmaceutical sub-industries, and the only local enterprise in Guangzhou to be selected into the list of the most admired Chinese companies by Fortune.

Kangmei Pharmaceutical has strong ability to integrate the upstream, midstream and downstream industrial chains of Chinese herbal medicines, and has established in-depth business cooperation with more than 1,100 medical institutions and more than 40,000 chain pharmacies nationwide.

There is a natural synergy between the two businesses.

GPC has given full play to the synergistic effect of Kangmei Pharmaceutical and GPC Baiyunshan through capacity cooperation and regional market support in eastern Guangdong.

At the same time, under the overall planning of the management of Guangzhou Pharmaceutical Group and Kangmei Pharmaceutical, Kangmei Pharmaceutical put forward the "12355" strategy——

With traditional Chinese medicine decoction pieces as the core of the intelligent traditional Chinese medicine health brand enterprise as the strategic positioning, focusing on the two strategic main lines of "building a full-chain characteristic industry of traditional Chinese medicine decoction pieces" and "providing medical and health care services"; The five major business sectors of traditional Chinese medicine, medical and health care, traditional Chinese medicine city, health products, and pharmaceutical business have been fully launched.

Today's Kangmei has divested a large number of non-main businesses, focusing on traditional Chinese medicine decoction pieces, formula granules, pharmaceutical business and other businesses, and continues to gather its market advantages that have been established for more than 20 years.

A "new Kangmei" is rushing to the market.

04

epilogue

Finally, there is a question worth pondering.

Why can Kangmei Pharmaceutical's business status and brand reputation improve rapidly after the intervention of state-owned assets?

The key reason behind this is that the majority shareholders of some enterprises tend to focus on personal interests and regard the enterprise as their private property. After listing, I always want to cash out and earn greater profits. But in reality, they lack the ability to mobilize social resources to match this amount of funds, and they lack a sense of social responsibility.

State-owned enterprises, because they represent the country, they care more about brand reputation, pay more attention to the sustainability of operation, and are more socially responsible.

During the epidemic period, under the leadership of Guangzhou Pharmaceutical Group, Kangmei Pharmaceutical participated in donation actions such as anti-epidemic and disaster relief, giving full play to the resource advantages and role of traditional Chinese medicine enterprises in epidemic prevention, and raising drugs and protective materials to help Baise in Guangxi, Yunfu in Guangdong, Xi'an, Shanghai, Gansu and other places in Shaanxi.

Just imagine, if it is still Kangmei under Ma Xingtian, can it do this?

This Kangmei is no longer the other Kangmei.

Although today's revenue is less than a quarter of its peak, at least every penny earned by Kangmei Pharmaceutical is real.

It is believed that with the support of Guangzhou Pharmaceutical Group, this "new Kangmei" can radiate a different development vitality and corporate style from the past, continue to serve the society and people's livelihood, improve people's livelihood and well-being, and show greater achievements in the trillion-level market of traditional Chinese medicine.

View original image 560K

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

•