I. Overview
During the reporting period, the Company (including its subsidiaries, hereinafter referred to as "the Company") realized an operating revenue of RMB4,237,839,200, representing a year-on-year growth of 8.08%; realized an operating profit of RMB1,375,493,000, representing a year-on-year growth of 3.50%; achieved a Total profit of RMB1,392,030,200, an increase of 0.64% year-on-year; net profit of RMB1,183,982,700, an increase of 2.15% year-on-year; net profit attributable to shareholders of the listed company of RMB1,140,346,600, a decrease of 1.30% year-on-year; net profit attributable to shareholders of the listed company of RMB1,144,964,000 after deduction of non-recurring gains and losses, an increased by 21.20%; realized net cash flow from operating activities of RMB1,137,063,700, increased by 61.72% year-on-year; weighted average return on net assets was 14.13%, decreased by 2.80 percentage points compared with the same period of last year.
At the end of the reporting period, the Company made an impairment provision of RMB56,307,700,000 in respect of the prudent assessment of part of the technology intellectual property rights of the in vitro diagnostic business resulting from the acquisition, and the impact on the net profit attributable to shareholders of the listed company amounted to RMB50,209,500,000.
During the reporting period, the impact of non-recurring profit and loss on the net profit attributable to shareholders of the listed company amounted to RMB 25,850,200, mainly due to government grants received by the company; non-recurring profit and loss of RMB 235,810,800, which was mainly formed by Junshi Biologicals-related gains in the same period of last year, was significantly lower than that of last year. Net profit attributable to shareholders of listed companies after extraordinary gains and losses during the reporting period increased by 21.20% compared with the same period of the previous year.
If excluding the impact of the above specific impairment charges and non-recurring operations, net profit attributable to shareholders of the listed company amounted to RMB 1,164,705,900, representing an increase of 26.66% compared with RMB 919,565,800 of the same caliber of the previous year.
At the end of the reporting period, the total assets of the Company amounted to RMB 17,787,711,700, representing an increase of 11.69% compared with the beginning of the period; the net assets attributable to shareholders of the listed company amounted to RMB 8,431,347,000, representing an increase of 12.68% compared with the beginning of the period; and the owner's equity amounted to RMB 9,167,295,600, representing an increase of 14.52% compared with the beginning of the period.
During the reporting period, the company's first quarter by the impact of the new crown pneumonia epidemic, the overall performance of the same period than a substantial decline, into the second quarter with the improvement of the epidemic in the country, the operating situation has shown good growth. Details are as follows:
(a) operating conditions
(1) medical devices
Medical devices segment is the largest part of the company's business scale. During the reporting period, the segment realized an operating income of RMB2,255,379,300, representing a year-on-year increase of 29.16%, and continued to maintain a relatively fast growth trend. The Company's self-produced device products included pan-cardiovascular core devices and non-cardiovascular devices. During the reporting period, the self-produced device products realized an operating income of RMB 2,077,406,900 yuan, an increase of 36.84% year-on-year.
1.1 Self-produced device products
1) Pan-cardiovascular core devices
1.1.1 Core cardiovascular interventional products
Including cardiac coronary intervention and peripheral intervention products. During the reporting period, the company's core cardiovascular interventional products realized turnover of 677,858,400 yuan, due to a significant decrease in turnover in the first quarter, despite the recovery in the second quarter, half-year turnover decreased by 25.41% year-on-year.
During the reporting period, the turnover of endovascular carrier-less drug stent system (Nano) grew steadily, accounting for 47.92% in the sales structure of metal stents. Bio-absorbable scaffolds (NeoVas) have been sold well, and case implantation has been completed in hundreds of hospitals in 29 provinces and other areas across the country, contributing to new performance.
1.1.2 Structural and cardiac rhythm devices
Including structural heart disease devices, cardiac rhythm devices. During the reporting period, the company's structural and cardiac rhythm devices realized operating income of RMB91,993,900, a year-on-year decrease of 5.54%, maintaining its leading position in the market. The company's self-produced dual-chamber pacemaker completed the bidding and purchasing work in Qinghai and Guizhou, and the number of provinces that have been included in the bidding and purchasing has increased to 29.
2) Non-cardiovascular devices
Including in-vitro diagnostic products, surgical instruments, anesthesia products, AI medical-related products and home medical devices.
During the reporting period, the company's non-cardiovascular devices realized an operating income of 1,307,554,600 yuan, a year-on-year increase of 155.38%.
1.2 Agent distribution business of device products
The Company relies on Lepu Medical Electronics, Weikang Tongda and Lepu Hengtong to carry out the agent distribution business of device products in various regions, and endeavors to build a domestic high-quality agent distribution platform for cardiovascular high-end device products, and actively carries out the sales and distribution business of the Company's self-produced products and some of the agent products. During the reporting period, the revenue from agency distribution business amounted to RMB177,972,500, which was 21.95% lower than that of the same period of the previous year.
(2) Pharmaceuticals
Pharmaceuticals segment is mainly divided into API business and preparation business (generic drugs), which is the company's long-term stable cash flow business. During the reporting period, the pharmaceuticals segment realized an operating income of RMB 1,853,827,600 yuan, a year-on-year decrease of 8.87%; the API business realized an operating income of RMB 307,339,000 yuan, a year-on-year decrease of 24.15%.
During the reporting period, the preparation business realized an operating income of RMB 1,546,488,600 yuan, a year-on-year decrease of 5.06%, due to the collection and procurement leading to clopidogrel hydrogencarbamate and atorvastatin calcium, the sales price in the healthcare institutions was significantly reduced, despite the two major products in the healthcare institutions rapid growth in the number of sales, but a significant reduction in the operating income, resulting in a significant reduction in the operating income of the preparation in the healthcare institutions; but The above two major drugs in the retail pharmacy to achieve a stable growth, the two integrated preparation business operating income decreased by only 5%.
(3) medical services
Medical services segment is the company is cultivating a new business segment, at this stage to improve the segment business market share, to achieve synergistic development with the integration of the device segment, pharmaceuticals segment is the main purpose, which will result in short-term business losses. During the reporting period, due to the impact of the new coronary pneumonia epidemic, the medical services segment realized an operating income of 107,778,900 yuan, a year-on-year decrease of 7.69%.
(4) New medical business
Internet healthcare is one of the company's key focuses for future development, the company is trying various business models and making breakthroughs at the technical level, and the artificial intelligence system developed by the company is the support for the future development of this business. Currently has not yet realized operating income.
The development of application-based financial services to promote the rapid development of the company's main business is also one of the company's current attempts to try the business model, has not yet realized operating income.
(5) Total Group financial expenses
During the reporting period, while the Company's existing business scale was expanding, in order to further expand the above high-end generic drugs, new biopharmaceuticals, third-generation insulin and other medicines, the Parent Company co-ordinated the financing arrangements and undertook a large amount of financial expenses, which impacted the Parent Company's net profit for the period.
(B) R & D innovation
1, medical devices
The company is China's only National Heart Disease Implant Interventional Diagnostic Devices and Equipment Engineering Technology Research Center awarded by the Ministry of Science and Technology of the People's Republic of China, is the domestic field of high-end medical equipment to form a strong competition with foreign products, is the country's leading cardiovascular disease implantation of interventional diagnostic devices and equipment for high-end medical products industry group. It is the leading high-end medical group of cardiovascular implantation and interventional diagnostic devices and equipment in China. The company's core business of cardiovascular interventional therapy is in the stage of great technological change, which is manifested in the following: First, interventional therapy has been in the era of no implantation and less implantation, and the company's R&D focuses on the innovation of various devices to meet the demand for interventional no-implantation and less-implantation, including implantable devices for coronary interventions, peripheral interventions, and interventions for coronary heart disease, as well as the auxiliary devices for the realization of the above process. Second, valvular diseases from surgery to interventional therapy transfer era, the company will focus on research and development of a variety of interventional treatment of aortic valve, mitral valve and tricuspid valve replacement or repair of new devices.
1.1 Interventional non-implantable therapeutic and auxiliary devices
(1) Coronary therapeutic devices
Clinical therapeutic products include certified drug stents (Partner/GuReater/Nano metal drug stents, NeoVas fully absorbable drug stents), drug balloons (paclitaxel drug balloon Vesselin) and interventional accessories (guidewire). ) and interventional accessories (guidewires/catheters/sheaths/Y-valves/pressure pumps/compressors/syringes), as well as interventional non-implantable balloons in development (coronary small vessel/ACS/in situ drug balloon, third generation rapamycin drug balloon, cutting balloon).
NeoVas Bioresorbable Stent: After more than ten years of research and five years of clinical trial research, NeoVas Bioresorbable Stent was approved for registration by China's NMPA in February 2019, and the company will carry out post-launch 2,000-case clinical studies in accordance with the requirements of the NMPA's evaluation center to steadily develop the market for NeoVas stent products. At the same time, we will accelerate the research and development of a new generation of biodegradable stents.
(2) Peripheral therapeutic devices
Biodegradable peripheral stents: In peripheral lesions, many lesions treated with metal stents can be replaced by biodegradable stents, especially for below-knee stenosis and thrombosis, and the company is developing various types of biodegradable peripheral stents suitable for the characteristics of each lesion.
Peripheral drug balloon: At present, peripheral vascular stenosis or thrombosis, the mainstream treatment is still ordinary balloon expansion, in principle, most of the ordinary balloon expansion should be replaced by a drug balloon. Currently on the market peripheral drug balloon, are high-dose (3μg/mm2) paclitaxel drug balloon, in some large-diameter lesions or long lesions in the treatment, will cause the blood paclitaxel content is too high, increasing the risk of patient death. Directions for the development of peripheral drug balloons include lowering the paclitaxel loading on the drug balloon and the development of rapamycin microsphere-loaded drug balloons.
The Company has developed paclitaxel drug balloons with significantly reduced drug loading (≤1.5 μg/mm2) for a variety of peripheral indications, most of which are expected to enter clinical trials during the year. The company has also developed, rapamycin microspheres peripheral drug-carrying balloon, is expected to enter clinical trials in the second half of next year.
(3) to realize the intervention without implantation of auxiliary devices
Drug balloon and biodegradable stent implantation and metal stents and ordinary balloon the biggest difference is to ensure that the drug balloon and biodegradable stents are fully affixed to the wall. The drug release of the drug balloon relies on the drug balloon's full adherence to the wall to transfer the drug from the balloon to the vessel wall, so as to achieve the release of a sufficient amount of drug, and ultimately play a role in preventing the purpose of restenosis. Adequate wall adherence of degradable stents is the only way to reduce distant thrombosis. Therefore, there is a need to develop various auxiliary catheters to facilitate adequate wall adherence of the drug balloon and the degradable stent, as well as monitoring catheters to monitor the vessel wall before and after implantation. The main products are as follows: Cutting balloons: Cutting balloons were used in the early days to address stent restenosis treatment. With the widespread use of pharmacologic stents, the incidence of restenosis has been significantly reduced, and the function of cutting balloons has shifted from a therapeutic product to an auxiliary product. It is mainly used for, early cutting and remodeling of blood vessels, so that some target lesions that cannot be adequately pre-expanded with ordinary balloon catheters and cannot be placed with drug balloons and biodegradable stents can be treated with drug balloons and biodegradable stents due to the use of the cutting balloon and the remodeling of the vascular anatomy, thus expanding the scope of application of the drug balloon and biodegradable stents.
Acoustic balloon: A large number of stenoses are accompanied by severe intravascular calcification, which prevents the full release of the drug balloon or biodegradable stent and its adherence to the wall. The acoustic balloon is used to deal with calcified lesions, and the local acoustic energy provided by the acoustic balloon is applied to break up the calcified layer of the blood vessel, which makes the implantation of the drug balloon and biodegradable stent possible.
(4) Biodegradable structural blocking device
Structural blocker intervention is also gradually in the direction of no implantation, biodegradable blocker compared with the traditional blocker, completely biodegradable blocker implanted in the human body can be gradually replaced by its own tissue, in the treatment of defects at the same time, to achieve the body without foreign body residues, eliminating long-term complications, will bring the gospel to countless patients. This invention and application of independent innovation and manufacturing in China marks a breakthrough in the field of fully degradable blockers in China. The Company is developing various biodegradable structural blockers:
Biodegradable septal blocker system: applicable to the treatment of ventricular septal defects in congenital heart disease, the fully biodegradable blocker system has completed all the clinical trials for enrollment, and is currently in the post-operative follow-up stage, with favorable results in clinical follow-up. It will be filed for registration in the fourth quarter of 2020. Estimated time of licensure, first quarter of 2022.
Completely degradable atrial septal defect occluder: Mainly used for interventional treatment of atrial septal defects in congenital cardiac malformations, the structure of the occluder possesses independent intellectual property rights of the parachute locking structure, which ensures that atrial septal defect occlusion is safe and effective. Currently entering the preclinical preparatory work, is expected to September 2020 clinical start, the fourth quarter of 2021 to obtain the clinical trial report and reported to the State Drug Administration registration acceptance, the first quarter of 2023 to obtain the registration certificate.
Biodegradable Ovarian Hole Unclosed Sealer: Treatment of cardiac oval hole unclosed sealing, and the prevention of stroke treatment. For the new generation of product use and implantation, the product development has obtained a number of independent intellectual property rights patents in the biodegradable material weaving method, blocker structure design, blocker flower design, interventional delivery system design and delivery method, etc., which fundamentally ensures the safety and effectiveness of implantation. The biodegradable oval hole unclosed occluder, has started the clinical trial, is expected to start the group at the end of August, the group in January 2021 to complete. the fourth quarter of 2021 to obtain the clinical summary report and reported to the State Drug Administration registration acceptance, is expected to be the first quarter of 2023 to obtain the certificate of registration.
Biodegradable left auricle blocker: Preventing the possible formation of thromboembolism in the left auricle, suitable for left auricle blocking in non-valvular atrial fibrillation patients who are not suitable for anticoagulant drug treatment. Based on the technology of the company's first generation of left ear products and biodegradable materials, the second generation of biodegradable left ear products has entered the product project and development stage.
1.2 Valvular disease interventional devices
Valvular disease treatment from surgery to interventional therapy, the company will focus on research and development of a variety of interventional treatment of aortic valve, mitral valve and tricuspid valve replacement or repair of the new device.
(2) mitral valve, tricuspid valve repair or replacement system and other products: the company in the transcatheter implantable aortic valve system on the basis of successful research and development, and actively layout of the treatment of mitral valve, tricuspid valve disease of the interventional products, of which the transapical mitral valve repair system and the transcatheter mitral valve repair system has been in the experimental stage, the transcatheter tricuspid valve repair system, the transcatheter mitral valve replacement system and the transcatheter tricuspid valve repair system. The Transcatheter Tricuspid Valve Repair System, Transcatheter Mitral Valve Replacement System and Transcatheter Tricuspid Valve Replacement System are in the research and development stage, and are expected to enter the animal experimental research soon. The transapical mitral valve repair system is in the stage of animal experiment and type inspection, and is planned to enter the stage of clinical trial in China in the second half of 2020 after obtaining the animal experiment report and type inspection report; the transcatheter mitral valve repair system adopting the innovative design and structure has completed the preliminary experimental validation, and the formal animal experiment research will be carried out in 2020 and the type inspection will be carried out at the same time, and is expected to enter the clinical trial research in 2021. Clinical trials are expected to be conducted in 2021.
2, drugs
The company in the drug research and development, is currently focusing on two aspects of work, first, make up the diabetes drug map; second, high-end generic drug development.
2.1 Completion of the diabetes drug map and the establishment of monitoring, drug treatment closed loop
1) Glycine insulin: already in PK/PD clinical trials;
2) Mentholatum insulin: already in PK/PD clinical trials;
3) Dulaglutide biosimilars: has completed the preclinical study, has submitted clinical application information;
3) Dulaglutide biosimilar: has completed the preclinical study, and has submitted clinical application information;
The company is currently focusing on two areas of work in the R&D of drugs. information;
4) Long-acting GLP-1 receptor agonists: preclinical studies are underway;
5) Continuous glucose monitoring: a technology that indirectly reflects blood glucose concentration by monitoring the glucose concentration of subcutaneous interstitial fluid, which can provide continuous, comprehensive and reliable information on glucose 24/7, and the project has begun pre-animal experiments and is about to be sent to the test.
2.2 Research and Development of High-end Generic Drugs
The Company has already possessed the commonly used drugs for pan-cardiovascular diseases such as clopidogrel sulfate, tegretol, acarbose, valsartan, amlodipine benzenesulfonate, atorvastatin, and rivastigmine, etc. In order to further build up a drug ecosystem of pan-cardiovascular diseases, the Company needs to carry out research and development of all kinds of compounded high-end preparations and make up for the shortcomings, with emphasis on the following products R&D:
1) Clopidogrel Sulfate and Aspirin Compound: in the stage of pharmacological research, completed the pilot production and production validation, and is in the process of stability investigation;
2) Chlorosartan Potassium Hydrochlorthiazide: compounding of large specifications (100/25mg) in the CDE review, the completion of the development and production of the site check, and the submission of additional information; new small specifications (50/25mg), and new small specifications (50/25mg), and new small specifications (50/25mg), and new small specifications (50/25mg). 12.5mg) supplemental research is under pilot production;
3) valsartan amlodipine: has completed the pharmacological study, is undergoing BE clinical research.
(C) Important product pipeline
1) Medical devices
1.1 Layout of cardiovascular series products
1) Coronary series products
2) Peripheral series products
3) Structural heart disease series products
4) Heart failure management series products
5) Heart rhythm management series products
6, cardiac electrophysiology series products
Second, the layout of IVD series products
Third, the layout of surgical series products
2) Pharmaceuticals
(1) Diabetic drugs
(2) High-end generic drugs and consistency evaluation
The Company is required to comply with the "Guidelines for Disclosure of Information on the GEM Board of the Shenzhen Stock Exchange. The Company is required to comply with the disclosure requirements of "Shenzhen Stock Exchange GEM Industry Information Disclosure Guideline No. 10 - Listed Companies Engaged in the Business of Medical Devices"
As of the end of the reporting period, the Company and its subsidiaries possessed 378 registration certificates for Class II and Class III medical device products***. The main product information is as follows:
The Company is required to comply with the disclosure requirements of "Shenzhen Stock Exchange GEM Industry Information Disclosure Guideline No. 2 - Listed Companies Engaged in the Business of Pharmaceuticals and Biological Products"
During the reporting period, the Company's core anti-thrombotic drug, clopidogrel hydrogensulphate, is a former chemical drug of Class 6, and the Company has a patent for invention "Clopidogrel Sulphate". The Company owns the invention patent "Clopidogrel bisulfate tablets and its preparation method". It is mainly used for the prevention of atherothrombotic events in the following patients: patients with myocardial infarction (from a few days to less than 35 days), patients with ischemic stroke (from 7 days to less than 6 months), or patients with confirmed peripheral arterial disease; patients with acute coronary syndromes - patients with non-ST-segment elevation acute coronary syndromes (including unstable angina or non-Q-wave myocardial infarction), including patients with stents placed after percutaneous coronary intervention, patients with non-ST-segment elevation acute coronary syndromes, and patients with non-Q-wave myocardial infarction, and patients with non-ST-segment elevation acute coronary syndromes. In patients with stent placement after surgery, in combination with aspirin; for patients with ST-segment elevation acute coronary syndrome, in combination with aspirin, may be combined in thrombolytic therapy.
During the reporting period, the company's core drugs lipid-lowering drugs atorvastatin calcium for the original chemical drugs 6 categories, mainly used for: 1, hypercholesterolemia: primary hypercholesterolemia patients, including familial hypercholesterolemia (heterozygous) or mixed hyperlipidemia patients, if dietary therapy and other non-drug therapy is not satisfied with the efficacy of the application of the product can be treated for its total cholesterol elevation, low-density lipoprotein cholesterol elevation, apolipoprotein cholesterol elevation, and the use of the product. Elevated total cholesterol, elevated LDL cholesterol, elevated apolipoprotein B, and elevated triglycerides. In patients with pure familial hypercholesterolemia, atorvastatin calcium can be used in combination with other lipid-lowering therapies (e.g., LDL plasma dialysis) or used alone (when no other treatment is available) to lower total cholesterol and LDL cholesterol.2. Coronary artery disease: In patients with coronary artery disease or coronary artery disease at risk (e.g., diabetes mellitus, symptomatic atherosclerotic disease, etc.) who have a combination of hypercholesterolemia or mixed dyslipidemia, this product is not indicated. In patients with dyslipidemia, this product is indicated for: reducing the risk of nonfatal myocardial infarction, reducing the risk of fatal and nonfatal stroke, reducing the risk of revascularization, reducing the risk of hospitalization for congestive heart failure, and reducing the risk of angina pectoris.
In August 2019, the Ministry of Human Resources and Social Security of the National Bureau of Medical Security issued a new National Catalog of Medicines for Basic Medical Insurance, Work Injury Insurance and Maternity Insurance. The company entered the 2019 version of the national medical insurance catalog of drugs *** counting 83 items, the specific information is detailed in the table below.
Third, the core competitiveness analysis 1, cardiovascular medical equipment field independent research and development of core heavyweight products, the leading edge of technology is obvious, especially in the field of cardiovascular "intervention without implantation" technology, leading the development of China and even the world's industry; the existing product market share continues to climb steadily, and to further expand the leading position of the competition with partners. The market share of existing products continues to climb steadily, further expanding the leading position with competitors. The company's existing products and internationalized innovative device products under research and development have formed a leading technological competitiveness, and its market leading position has been solidified and its leading position has been further enlarged, further strengthening the "moat" from both the technological and market dimensions. (1) As the industry leader in bioresorbable scaffold technology, the Company has further increased its leading edge, not only deepening the technology generation barrier but also widening the Company's technology moat. (2) The company's newer generation of drug-containing (paclitaxel) lower-dose balloons and balloon catheters coated with rapamycin will further enhance the safety and efficacy of the treatment, further increasing and widening the company's technological moat. (3) Left ear blocker for the preventive treatment of stroke caused by atrial fibrillation, further increasing and widening the company's technological moat. (4) The product portfolio of Cutting Balloon + Drug Balloon and Cutting Balloon + Bioresorbable Scaffold, which promotes the process of the interventional implant-free era, will further increase and broaden the Company's technology moat. (5) As an industry leader in AI ECG technology, the company has further increased its leading edge, deepening and broadening its technology moat. 2. LP Management recognizes that in order to maintain the long-term stable and sustainable development of the enterprise, it is necessary to strategically and prospectively evaluate the growth cycle of each segment of the enterprise's business, and in turn, timely establish the growth momentum of each segment's innovative products and build new cardiovascular and its technology-related business segments to *** with the hedging of its business segments against the future cycle of sluggish growth. The company's strategy and tactics have been very effective over the years. After the collection, also did not change the company's growth logic, more can show the importance and effectiveness of this strategy. Through unremitting innovation and development of major devices, pre-research generation, clinical generation, registration and sales generation, the company will keep pace with the times by arranging a series of cardiovascular field of major innovative devices for the future years of the new core growth momentum, in accordance with the company's resorbable stent design and material manufacturing platform technology, valve design, fully recyclable and repositioned delivery platform technology, blocker design and precision manufacturing platform technology, drug In accordance with the relevance of the five platform technologies of the company's absorbable stent design and material manufacturing platform technology, valve design, complete recycling and repositioning delivery platform technology, blocker design and precision manufacturing platform technology, drug balloon precision manufacturing and drug coating platform technology and AI-ECG artificial intelligence ECG diagnostic cardiology monitoring platform technology, limited to develop the relevant non-cardiovascular innovative business, continue to ensure the future performance of the year a solid growth. 3, in the national health insurance drug collection and other policies, the future growth of grassroots hospitals and retail stores will be the main battlefield of China's medical industry growth. Who has a greater competitive advantage in the grass-roots hospitals and brick-and-mortar pharmacies, who will occupy the dominant right to future growth; LOPE Medical is the first to the city and county hospitals of the device enterprise, has operated 190 cities and counties hospitals across the country to cooperate in cardiovascular interventional medical center, the future of the company will be more vigorously promote the grass-roots interventional medical center project process; the national DRGs according to the pilot diagnosis of diseases related to the grouping of fees and the promotion of the hospital drug sales, in particular, the sales of drugs. The pilot and promotion of the national DRGs by disease diagnosis-related group payment will lead to the sale of hospital drugs, especially the sale of oral medicines for chronic diseases, will be gradually transferred from the hospital to the retail stores, the enterprise's competitive advantage in the retail stores, in order to protect the company's future growth. LPMC is also the first professional prescription drug manufacturer to establish a separate OTC marketing team to focus on the retail market. The implementation and advancement of the National Health Insurance Bureau's drug collection policy has further enabled the rapid transition of high-end generic drugs to generic drugs, accelerating the demand for such drugs from primary healthcare organizations and ordinary patients. The primary market will continue to see a significant increase in the volume of medicines used in the next 2-3 years, which will bring new market opportunities to the company's drug marketing. The company's first-mover advantage in the treatment of cardiovascular disease interventional medical centers in primary city and county hospitals and OTC terminal sales has established a strong moat for the company in the primary market. 4, listed and in the research and development of drugs covering the whole field of cardiovascular disease, in the context of health insurance cost control, the company's full range, full varieties of cardiovascular disease drugs than a single species of enterprises, the overall and long-term perspective, the competitive advantage is more prominent and sustained; with the company's heavyweight drugs clopidogrel and atorvastatin calcium national procurement of the bid, the company has declared, in the research and development of the "anti-thrombosis, blood lipid, blood pressure, blood sugar and blood pressure. With the company's declared and under research "anti-thrombosis, blood pressure, blood sugar and anti-heart failure" cardiovascular drug pipeline rich, the above two advantages, to the company's pharmaceutical business has brought new opportunities for development, to further protect the stable and sustainable growth of the pharmaceutical business, and the company's drug pipeline synergistic effect is significant, the comprehensive competitive advantage is obvious, coupled with the company's products are becoming increasingly rich in the full range of preparations and the integration of the protection of the raw material drug, Testing and medication integration of industry chain synergies, will gradually emerge in the context of the new policy, for the company to establish a new market moat.