Tonghua Jinma Pharmaceutical Group Co., Ltd. (000766)

Tonghua Jinma Pharmaceutical Group Co., Ltd. (000766)

Tonghua Jinma Pharmaceutical Group Co., Ltd. was founded in 1990 with a registered capital of 966 million yuan. Through the stock system reform, the company listed in Shenzhen Stock Exchange in 1997 (stock code 000766), which is one of the first batch of pharmaceutical enterprises listed in China. It has the first-class domestic standard factory building, GMP production line and quality management system, and is a comprehensive pharmaceutical enterprise integrating drug production, sales and R & D. In the initial stage of group development, diversified and multi-line development is adopted, product line is covered by many diseases and departments, and the core areas are gradually focused. In the future, Tonghua Jinma will take the big health industry as the main line and medical treatment as the core, and its business covers many sectors such as medicine, medical treatment, investment and consumption, and will build a whole industry chain of large health.

Facing the international and domestic medical trends, Tonghua Jinma has taken the development strategy of endogenous development and extension expansion "double wheel drive" in accordance with the situation and comprehensive transformation. Through the endogenous development of "quality based, brand oriented" and "enterprise merger, reorganization and integration" extension expansion, the company can reshape the brand, marketing and capital expansion, and promote the sustainable development of the enterprise. We will comprehensively create "new golden horse and new image", strive to realize the "new development and new leap" of the company, and become a highly dynamic and competitive comprehensive pharmaceutical and medical listed group company.

In 2013, the entry of Beijing Jinshang alliance Holding Co., Ltd. has reinvigorated Tonghua Jinma. On August 12, 2015, Tonghua Jinma invested 2.68 billion yuan to acquire 100% equity of Santai bio, which has also put the wings of the development of the enterprise. After the acquisition, Tonghua Jinma covers many product lines such as traditional Chinese medicine, Chinese and Western raw materials, biochemical preparations, etc. In particular, Shengtai biopharmaceutical has formed a variety advantage with many kinds of drugs such as skeletal muscle, cardio cerebral vascular and respiratory system as the core, which has good synergy and complementary effect with the main business of Tonghua Jinma.

In January 2016, Tonghua Jinma increased its capital to Changchun Huayang and obtained 60% of its equity; To acquire 30% equity of Jiangsu sheneryang Technology Co., Ltd. In may2016, two investment companies and three fund companies were established, of which the medical M & A fund reached 5billion yuan. In July 2016, it invested 414million yuan to successfully acquire 100% equity of Chengdu Yongkang pharmaceutical industry. Based on the forest musk breeding base owned by Yongkang pharmaceutical, through the control of the supply and quality of key raw materials, the development strategy of fine Chinese medicine will continue to be promoted, and the leading position of the market for subdivided drugs will be established. In August 2016, it invested 1.785 billion yuan to acquire 85% equity of more than 40 hospitals of Heilongjiang longcoal group, including 5 third-a hospitals. In March, 2018, 19 million shares were invested to acquire 100% of Jiangxi fengma stock; In May 2018, it invested 110million yuan yuan first pharmaceutical industry to acquire 100% equity; In june2018, 45 million shares were invested to acquire 22% of Beijing Minkang Baicao pharmaceutical technology, 30 million shares of Shanghai Shijian Biotechnology Co., Ltd. and 80% of Beida Shijia Research Institute in March 2019. So far, Tonghua Jinma Pharmaceutical Group has a complete R & D power in the fields of traditional Chinese medicine, chemical medicine and biological medicine, further enhancing the R & D ability, and some of the research and development capabilities are at the world leading level, providing the strongest guarantee for the product layout of the group.

After the completion of Tonghua Jinma reorganization in 2016, the most important task is to comb the products and reshape the brand of Jinma. All products with quality defects will be discontinued. Before the reorganization, Tonghua Jinma had 109 product batches, 79 products were sold, and the long production caused the management of the products to keep up with. After the reorganization, the company takes product quality as the overall grasp, and combines with the structural reform of drug supply side, and makes a thorough rectification and sorting out of the product from the aspects of capacity, quality, finance and market demand. All products that are dissatisfied by consumers or even with slight quality defects will be stopped and recalled. After strict rectification and sorting, only 32 products are reserved, including 12 exclusive varieties and 5 medical insurance varieties.

Tonghua Jinma has always regarded product R & D capability as an important guarantee for product quality and market potential mining. Over the years, more than 20 colleges and research institutes such as Changchun University of traditional Chinese medicine, Tianjin Pharmaceutical Research Institute and Beijing University Academy of life sciences have established technical cooperation relations. Meanwhile, 3% of the annual turnover is spent on product research and development, The company has initially built the product framework by increasing the docking support for industrialization of R & D new drug achievements. In 2016, while reducing products, Tonghua golden horse added capital as a tool to quickly upgrade product structure and lay out the market. In addition to launching the conformity evaluation of generic drugs, the R & D of new drugs and generic drugs will be increased. In the process of phase III clinical progress of chemical class 1.1 new drugs for Alzheimer's disease, GMP plant rectification and API plant construction will be completed in 2019. It is expected to declare in 2020 and go to the market in 2021. The listing of this major new drug will greatly fill the unmet needs of clinical, It is also the leading global one to fill the gap of Chinese treatment for Alzheimer's. At the same time, more than 20 competitive generic products screened by the group's strict market evaluation will also be developed and listed in the next three years, which lays a solid foundation for the stable and sustainable development of the group.

In 2019, Tonghua Jinma group seized the opportunity to enter into the field of industrial cannabis. In Jilin and Heilongjiang, the company signed a tripartite cooperation agreement with Jilin Academy of Agricultural Sciences, Heilongjiang Academy of Sciences and branches and the corresponding municipal government, and registered two Sinoma technology companies to quickly connect and lay out the CBD Industrial chain, To provide the driving force for the group's deep development in the field of big health and to help the realization of the strategic goals of the diversified development of big health.

Since the entry into the leadership of the Jin Shang alliance, the market value of Tonghua Jinma has risen from 2 billion yuan to 23billion yuan at the highest level, an increase of 1050% in three years, ranking 26th among 165 pharmaceutical listed companies in China.

In the past three years, the enterprise has achieved a large increase in assets, market scale and tax payment. In 2016, the company's total assets were 5.3 billion yuan, with an increase rate of 27.6%; The market scale is 3.82 billion yuan, with an increase rate of 377%; The tax paid in the company was 143million yuan, with an increase rate of 533%. Meanwhile, due to the reorganization and listing of the enterprise, in 2016, shareholders paid transaction tax of RMB 140million to the place where the enterprise is located, which contributed to the local fiscal and tax revenue and economic development. In 2017, the company's total assets were 5.7 billion yuan, with an increase rate of 7.5%; The market scale was 4.56 billion yuan, with an increase rate of 19.3%; The tax paid in the company was 256million yuan, with an increase rate of 79.1%. In 2018, the total assets were RMB 6 billion, the market scale was 4.19 billion yuan, and the tax paid was RMB 254million.

In the process of Comprehensively Strengthening the group's management and operation, Tonghua Jinma Pharmaceutical Group is keen on social public welfare to actively repay the society, and makes great efforts to do well in supporting the poor and hoping for project donation activities, actively implements the national environmental protection requirements, firmly establishes the environmental concept of "green water and green mountain is Jinshan Yinshan", comprehensively upgrades sewage treatment equipment and boiler facilities, and ensures the sewage of enterprises The exhaust gas emission is in full compliance with national standards, and has contributed to the wisdom of golden horse, the Golden Horse program and the golden horse power for the realization of the health of the whole people, the comprehensive well-off, the win of the blue sky and the river defense war. In 2017, more than 560000 yuan of drugs were donated to Zhijin County, poverty-stricken county, Guizhou Province.

Tonghua Jinma has been rated as the top 100 Chinese medicine pharmaceutical enterprises, the top 100 pharmaceutical enterprises in China Pharmaceutical Industry and the top 50 enterprises in the Chinese medical and pharmaceutical industry. The products have been successively awarded the title of "famous brand" by the development research center of Jilin Provincial People's government, Jilin Quality Management Association and Jilin Pharmaceutical Quality Supervision and Administration Bureau. The company has been awarded the advanced group of national pharmaceutical system by the State Drug Administration, and has been named as a high-tech enterprise by the provincial government, and the title of famous pharmaceutical enterprise in the pharmaceutical industry by the provincial science and Technology Commission and the provincial drug administration. Tonghua Jinma successfully passed the national enterprise credit rating certification of the Credit Work Office of the Ministry of Commerce in 2017, and obtained AAA credit rating certificate of national enterprises. In the second drug regulatory conference, 100 enterprises' Declaration of credit: as a model of law-abiding, creating a good faith enterprise, Tonghua golden horse was awarded the most valuable investment award of Jinniu in 2017 for two consecutive years from 2017 to 2018. Mr. Ji Yanfeng, general manager, won the honor of top 10 leaders in China's pharmaceutical industry in 2016, and won the top 10 new leaders in China's pharmaceutical industry in 2019.

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