The Interim Measures for the Administration of Medication in Basic Medical Insurance came into force on September 1. Health care products have been removed from the list of medicare drugs. In addition, eight types of drugs, including tonic drugs, preventive vaccines, and contraceptives, are not included in the medical insurance. Enterprise survey data shows that at present, there are 2.94 million health food related enterprises in China. In 2019, there were 661000 newly registered enterprises. In the first half of this year, there were 397000 new enterprises, up 35.9% year on year. In terms of regional distribution, Shandong and Guangdong ranked the top two in China with 301000 and 298000 related enterprises respectively. In addition, enterprises with registered capital less than 1 million accounted for 82%.
The number of annual registrations has increased 8.3 times in ten years, with Shandong and Guangdong having the largest number
According to the enterprise survey data, the annual registration of health product related enterprises in China has increased in the past decade, and the annual registration of related enterprises reached more than 92000 in 2010-2014. Since 2015, the new Food Safety Law has clearly defined the legal status of health products, which has reassured the industry, so the increase in the registration of related enterprises has significantly increased. In 2015, the number of registrations reached 262000, up 93% year on year. In 2019, the number of relevant enterprises registered reached 661000, up 18% year on year, 9.3 times that of 10 years ago.
From the perspective of regional distribution of health care products, enterprise survey data show that Shandong and Guangdong ranked first and second in China with 301000 and 298000 related enterprises respectively, followed by Henan and Hunan with 178000 and 157000 respectively.
In the first half of the year, the registered capital of more than 80% of enterprises was less than 1 million, with a year-on-year growth of 35.9%
Enterprise survey data shows that in February 2020, the number of health care product related enterprises registered fell to the bottom, only 11000, a 67% month on month decrease. The number of relevant enterprises registered increased sharply from March to April, reaching 69000 in March, up 502% month on month. The number of registrations in April was the highest in eight months, reaching 96000. From May to August, the average monthly registration of relevant enterprises reached 89000. Overall, 397000 new businesses were added in the first half of this year (January June), up 35.9% year on year.
The enterprise survey chart shows that enterprises with registered capital less than 1 million yuan are the main force in the health care industry, accounting for 82% of the total. The health product related companies with a registered capital of more than 10 million yuan accounted for only 4% of the total.
In fact, the impact of the epidemic on the health care industry is "some people are happy and others are worried". The enterprise investigated and sorted out some listed health care products enterprises, and the leading enterprises led by Tomson Beijian deployed the Internet in succession, using online mode for live shopping and single product promotion to reduce the impact of the epidemic on the company. In the first half of 2020, the operating revenue of Jiuzhitang, Jiankangyuan and Tomson Beijian showed a positive growth, while the operating revenue of Dong'e Ejiao, Tongrentang and other brands showed a significant negative growth in the first half of this year. In terms of net profit, Chongqing Taiji Industry (Group) Co., Ltd. saw the most serious decline in net profit in the first half of this year, with a year-on-year decline of 88.53%.
Edited by Xu Chao, proofread by Wei Zhuo
(Editor in charge: Chen Chenzi (intern), Wang Zhen)
