CIC Consultant pharmaceutical industry researcher Guo Fanli pointed out that Sinopharm and Zoomlion are both state-owned enterprises, Zoomlion has a multi-dose drug production capacity, while Sinopharm has richer commercial resources; Zoomlion's annual sales scale is small, slow development, while Sinopharm's operating profit is high, faster growth; in 2008, Zoomlion Pharmaceuticals indebtedness of more than 40 million, the net profit loss of more than 20 million, and Sinopharm to achieve profit growth. The acquisition of Wuhan Zhonglian is conducive to the improvement of Sinopharm's basic pharmaceutical products, expanding its coverage in central China, and accelerating the implementation of its diversification strategy.
Guo Fanli pointed out that Zhonglian's continued losses are due to aging equipment and management mechanisms that are not adapted to the increasingly volatile consumer market. From the acquisition of Zhonglian development plan can be seen,
Sinopharm will continue to buy, merge related pharmaceutical companies in Wuhan, in-depth development of drugs; integration of resources, so that Zhonglian Pharmaceuticals become the national basic medical drugs production base. In addition, Sinopharm's reorganization of assets will help Zoomlion consolidate its bad business and improve its market competitiveness.
While Sinopharm's ownership of Wuhan Zhonglian can help the latter turn losses into profits, there are still some concerns about Zhonglian's ability to go public. This will depend on Sinopharm's development strategy and planning for the next few years, as well as Wuhan Zhonglian's public relations ability to handle crises. At present, Wuhan Zhonglian Pharmaceutical is caught up in the public relations crisis of cheating consumers, after the reorganization, Wuhan Zhonglian Pharmaceutical's prospects for listing also need to be determined from the main products and turnover, growth rate in recent years, fast and slow.
Guo Fanli also said that, in addition to the ownership of Wuhan Zhonglian, the current Sinopharm signed a series of agreements with Hubei, with an investment amount of 5 billion yuan, these cooperation projects, including Sinopharm set up a biologics research institute in Wuhan, the China General Hospital of Pharmaceutical Industry, Optics Valley Branch, and so on.