The first step in the event of bribery, step long pharmaceutical: and executives 1.9 billion yuan of related transactions from where?

Wen/zhu six

Recently, step long pharmaceutical is not peaceful. First, it was exposed and then involved in the pharmaceutical bribery incident, followed by the transfer of Hubei Jiuzhou Tong equity divestment of pharmacy hosting business, performance growth has been trapped in the "bottleneck" of the step of the long pharmaceutical can rely on the smooth transition of foreign investment?

In the step long pharmaceutical many foreign investment, phoenix finance "Qiyang Road 4" found a trace of unusual. According to the announcement disclosure, step long pharmaceuticals and directors and executives Xue Ren Hoon carried out 2 related transactions, the amount of 194,260,000 yuan, accounting for 14.24% of the company's audited net assets in 2019. However, whether it is due to the purchase and sale of goods, the provision and acceptance of labor services arising from the related transactions or due to equity investment in the related transactions, the amount is not up to the disclosure of 1942.6 million yuan, in the end, why would this situation arise?

Buy long pharmaceutical bribery history

Buy long pharmaceutical home history, half of the history of bribery.

In recent times, a judgment of bribery of non-state workers will step long pharmaceuticals into the public eye again.

On July 30, 2020, the referee network disclosed a bribery verdict. The judgment shows that since 2016, Shangshui County People's Hospital internal medicine attending physician Wang Haisheng, the use of prescription job convenience, illegal acceptance of step long pharmaceutical subsidiary of Shaanxi step long pharmaceutical company limited (hereinafter referred to as "Shaanxi step long") sales sales clerk Su mou drug commission 125,000 yuan.

Shaanxi step long main business products for the brain heart Tong, in order to receive kickbacks, 2016-2019 nearly four years, Wang Haisheng prescribed the product 35962 boxes. Based on this calculation, Wang Haisheng received a kickback of 3.4 yuan per box.

The case has attracted greater attention because it is not the first time that Buchang Pharmaceuticals has been involved in a pharmaceutical bribery incident.

In September last year, the instrument network disclosure of a bribery case, for example, the defendant Tang Mou, as Shaanxi Buchang and other pharmaceutical companies, pharmaceutical representatives, in order to seek undue benefits, in May 2012 to 2018, has found Meitan County People's Hospital and Meitan County combined traditional Chinese and Western medicine hospitals and medical staff, so that doctors in the prescription to the patient as much as possible to use the drugs of their agents, and promised to use the drugs according to the number of drugs per box.

In fact, only the referee documents network disclosure of the pharmaceutical bribery cases related to the step long pharmaceutical, there are more than ten.

And from a distance, repeated cases of pharmaceutical bribery in the product involved in the brain, from the "landmark" to "national standard" can not be separated from the bribery. 2002, the former chairman of the step long pharmaceutical Zhao Buchang, to the then Secretary of the State Food and Drug Administration, Zheng Xiaoyu The first step is to make sure that you have a good understanding of the situation, and that you have a good idea of what is going on.

The central protagonist in a number of bribery cases, Shaanxi Buchang, as a wholly-owned subsidiary of Buchang Pharmaceutical, occupies a pivotal weight in the operation of Buchang Pharmaceutical.In 2019 and the first half of 2020, Shaanxi Buchang's net profit was 933 million yuan and 393 million yuan, respectively, accounting for 47.94% of the current period's Buchang Pharmaceutical's net profit attributable to shareholders of the listed company, 43.57%. So it seems, Shaanxi long main brain cardiac products can be counted on the long pharmaceutical "fist product", just how much net profit from bribery is questionable.

Not only the sale of products by bribery, step long pharmaceuticals real controller of the relatives of the promotion is also linked to bribery. Zhao Tao, the real controller of step long pharmaceuticals, paid 6.5 million dollars to William Singer, a consultant, for his daughter to be admitted to Stanford University.

Sales costs have been high for years

The judgment disclosed by the above referee documents network caused more than just the concern about the pharmaceutical bribery of step long pharmaceuticals, and its high sales costs for many years have to make people think y. Phoenix Finance "Qiyang Road 4" found that as early as May 2019, the regulation has paid attention to the phenomenon, in the step long pharmaceutical 2018 annual report aftermath audit inquiry letter asked step long pharmaceutical analysis of the reasonableness of sales cost expenditure.

In 2017-2019 and the first half of 2020, the sales expenses of Buchang Pharmaceutical were 8.287 billion yuan, 8.036 billion yuan, 8.081 billion yuan, and 3.684 billion yuan, accounting for 59.77%, 58.81%, 56.68%, and 52.36% of the ratio of current operating income.

Why does a Chinese medicine enterprise spend a lot of money on sales costs? From the step long pharmaceutical response to the inquiry letter can be explored one or two. In 2018, for example, the cost of marketing activities spent on consulting with medical professionals and organizing exchanges and interactions between medical professionals and grassroots patients was 3.124 billion yuan; the cost of market research spent on understanding and consulting with grassroots patients, pharmaceutical distributors, medical staff, professional organizations and other objects about the use of medicines and the market was 1.516 billion yuan; the cost of academic activities spent on forums and academic discussions was 1.716 billion yuan; and the cost of academic activities spent on forums and academic discussions was 1.716 billion yuan. The cost of academic activities for forums, academic discussions, etc. was 1.788 billion yuan; the cost of academic exchanges for organizing disease forums, etc. was 1.058 billion yuan, as well as accounting for the consolidated costs of the sales department of 92 million yuan.

The year step long pharmaceutical *** organization market activities more than 19,000 times, market research more than 23,000 times, academic exchange activities more than 20,000 times, the average step long pharmaceutical daily organization market activities more than 52 times, market research more than 63 times, academic exchange activities more than 54 times, can be said to be the whole year, "non-stop hoofing "The company's website has been updated with the latest information on the company's website.

And this huge sales expense expenditure can bring how much performance growth for step long pharmaceutical?

2017-2019 and the first half of 2020, step long pharmaceutical operating income of 13.864 billion yuan, 13.664 billion yuan, 15.3555 billion yuan, 7.035 billion yuan, 2017-2019 year-on-year growth of 12.52%, -1.44%, 4.32%, respectively, the first half of 2020 year-on-year growth of 9.85%.

During the same period, Buchanan Pharmaceutical's net profit attributable to shareholders of listed companies amounted to 1.638 billion yuan, 1.888 billion yuan, 1.946 billion yuan, and 902 million yuan, with year-on-year growth of -7.43%, 15.29%, and 3.05% from 2017-2019, and a year-on-year growth of 12.86% in the first half of 2020, respectively.

The data can be seen, even if the huge investment in sales costs, step long pharmaceutical performance growth has entered the "bottleneck", in a slightly fluctuating, and not much increase in the situation. Among them, the net profit growth in 2018 compared to the larger important reason for the year the government subsidies for the thickening.

2017-2019 and the first half of 2020, step long pharmaceuticals included in the current profit and loss of government subsidies were 237 million yuan, 449 million yuan, 206 million yuan, 150 million yuan, respectively, accounting for 14.44% of the net profit of the current period, 23.78%, 10.56%, 16.64%.

When the huge sales costs can not support the performance of sustained growth, step long pharmaceutical began to "find another way" to seek transformation.

Related Transactions Disclosure or Problems

The transformation of step long pharmaceuticals has three main aspects, one is the conversion of the sales-oriented company to a technology-based company, the second is the conversion of proprietary Chinese medicines to biopharmaceuticals, vaccines, pharmaceuticals, medical devices, Internet medicine, and the conversion of the third is the conversion of China's localization to globalization.

In fact, these three aspects of the conversion from China's localization to globalization can be ignored for the time being, in 2019, step long pharmaceutical export revenue is only 7,438,500 yuan, want to achieve the purpose of globalization for the time being is considered a "drop in the bucket".

And from the sales-oriented company to a technology-based company and from the pCms to biopharmaceuticals and other areas of conversion, the main measures of the step long pharmaceuticals that set up or invest in related areas of the company.

In 2019, Buchang Pharmaceutical and its related persons set up two new subsidiaries, namely, Zhejiang Buchang Health Science and Technology Company Limited (hereinafter referred to as Zhejiang Buchang) and Ningbo Buchang Life Science and Technology Company Limited (hereinafter referred to as Ningbo Buchang), and invested in the establishment of Shaanxi Buchang Pharmaceutical. (hereinafter referred to as "Ningbo BUCHANG"), the establishment of Shaanxi BUCHANG Medical Research Institute Co.

2020 to date, step long pharmaceutical new proposed and related parties to set up Chongqing step long life science and technology limited company (hereinafter referred to as "Chongqing step long") and Shaanxi province modern Chinese medicine research institute limited company, to be set up by the subsidiary of tianjin step long health care qiqihar step long medical equipment limited company.

In addition to the establishment of new subsidiaries, step long pharmaceutical also on the Shanghai Hop Pu Medical Technology Co. "Qiyang Road 4" query business information found that, as of press release, the number of participants in the Shanghai Hepu only 14 people, the number of participants in the Nanjing Huapai is 0 people.

In fact, step long pharmaceutical long-term keen on foreign investment, and also by the regulatory attention, said in the inquiry letter, step long pharmaceutical equity acquisition premium rate is generally higher, and part of the investment target poor financial condition, the main business and the company's original business there are large differences. According to the reply announcement of step long pharmaceuticals, as of the low of 2018, most of the investment targets of step long pharmaceuticals are poorly operated, except for Chaoyang Bank, the rest of the targets are either unprofitable or in the red.

It is worth mentioning that as of June 30, 2020, the goodwill of step long pharmaceutical amounted to 5.109 billion yuan, accounting for 22.9% of total assets.

By investing in the above targets, Buchang Pharmaceutical tries to expand its industrial chain. However, a recent announcement shows that part of the step long pharmaceutical investment has become a "hot potato". September 22, step long pharmaceutical announcement, said on July 23, 2020 and jiuzhou tong pharmaceutical group Co. million yuan for the transfer of its 51% equity.

This transaction means that the step long pharmaceutical formal divestment of pharmacy hosting business, before the dust in the eyes, after the step long pharmaceutical investment can achieve the desired results?

In addition, Phoenix Finance "Qiyang Road 4" noted that step long pharmaceutical related transactions disclosure or problems. In its May 28 disclosure of the "Announcement on the company and related persons to *** with the investment in the establishment of the company (Chongqing step long life science and technology limited company) and related transactions", step long pharmaceutical disclosure over the past 12 months, with the company's directors and executives Xue Ren Hoon carried out 2 related transactions, the amount of 194,240,600,000 yuan, accounting for the company's 2019 year of the audited net assets of the mother of 14.24%.

Checking the 2019 annual report and 2020 semi-annual report, the amount of related transactions arising from the purchase and sale of goods, provision and acceptance of labor services of Buchanan Pharmaceuticals is 73,440,900 yuan and 36,714,600 yuan, respectively, which is less than the number of 1,942,600,000 yuan. The significant foreign equity investment, and Xue Ren Hoon related to the establishment or capital increase of Zhejiang Buchang, Ningbo Buchang, Shanghai Hepu, Chongqing Buchang, Pasteur (Guangzhou) Biological Science and Technology Company Limited, in which Buchang Pharmaceuticals agreed to the amount of capital contribution of 43,880,000 yuan, 4,350,000 yuan, 142,600,000 yuan, 5,600,000 yuan, 49.9 million yuan, also less than 194,240,600,000 yuan number of .