Can Haizheng Pharmaceutical return to the growth track with the return of veteran?

On October 11, Haizheng Pharmaceutical released an announcement on the appointment of the president of the company, and the board of directors agreed to appoint Xiao Weihong as the president of the company, whose term of office expires at the end of the current board of directors. Xiao Weihong is a veteran of the Haizheng system. In September 2012, Pfizer and Zhejiang Haizheng Pharmaceutical announced the establishment of "Haizheng Pfizer Pharmaceutical Co., Ltd.", with Xiao Weihong as the first CEO. In recent years, Haizheng Pharmaceutical has experienced declining performance and downsizing optimization. Whether the return of veterans can lead Haizheng Pharmaceutical to return to the growth track has aroused industry expectations.

According to the announcement, Xiao Weihong has successively served as Director of Human Resources Department, General Manager of Business and Diversified Business Department of Pfizer Pharmaceutical China Co., Ltd., CEO of Haizheng Pfizer Pharmaceutical Co., Ltd., COO of Sansheng Pharmaceutical, and General Manager of Sansheng Guojian Pharmaceutical (Shanghai) Co., Ltd.

Before rejoining Haizheng Pharmaceutical, Xiao Weihong served as the general manager of Sansheng Guojian. On September 13, Sansheng Guojian released the Announcement on the Change of Some Directors and Senior Managers of the Company, stating that the board of directors of Sansheng Guojian had recently received the written resignation report submitted by Xiao Weihong, the director and general manager of the company, and applied to resign from the company's general manager, non independent director of the fourth board of directors, and member of the strategy committee for personal reasons, After resignation, he will no longer hold any position in Sansheng Guojian.

At the beginning of September this year, Haizheng Pharmaceutical also had personnel adjustments. On September 1, Haizheng Pharmaceutical announced that it had received the written resignation report submitted by Jiang Guoping, Chairman of the Board of Directors, and Chen Xiaohua, Vice Chairman and Senior Vice President and Acting President of the Company. Both of them applied for resignation from relevant positions for personal reasons.

Jiang Guoping took over as chairman of Haizheng Pharmaceutical in November 2018. When he took office, Haizheng Pharmaceutical was under pressure. From 2015 to 2018, Haizheng Pharmaceutical's non net profit deduction was - 139 million yuan, - 283 million yuan, - 141 million yuan and - 612 million yuan respectively.

In addition to performance pressure, Haizheng Pharmaceutical's assets and liabilities remain high. From 2016 to 2018, the total liabilities of Haizheng Pharmaceutical increased year by year, reaching 12.719 billion yuan, 13.761 billion yuan and 14.475 billion yuan respectively. In the same period, the debt ratio was 61.27%, 63.6% and 66.24% respectively.

After Jiang Guoping took office, he put forward the strategic policy of "focusing, slimming and optimizing" to Haizheng Pharmaceutical and implemented it quickly. For example, in August 2019, Haizheng Pharmaceutical entrusted Taizhou Equity Exchange Co., Ltd. to transfer the office building at 169 Jiangbo Street, Lushan Street, Fuyang, Hangzhou through public listing. It was confirmed that the above assets were successfully delisted, with a transaction amount of 290 million yuan.

Haizheng Pharmaceutical put forward in its financial report at that time that 2019 is the year when the company can turn the corner and strive for transformation. The company will focus on the three principles of "focus, downsizing and optimization", revitalize the company's assets, improve operating efficiency, reduce debt ratio and strive to comprehensively reverse the company's performance through the disposal of idle assets, sorting out research and development projects, and promoting front-end sales.

Through "selling, selling and selling", Haizheng Pharmaceutical successfully turned around losses in 2019. In 2019, Haizheng Pharmaceutical realized a net profit of 93.0727 million yuan, up from - 492 million yuan in the previous year. By 2022, the performance of Haizheng Pharmaceutical has shown positive growth, but the growth rate has slowed down. In 2021, there was still a double-digit growth of 16.71%, but the net profit growth in 2022 was less than 1%, falling to 0.44%, and the revenue was 0.82% lower than that in 2021.

Li Xu, an investment analyst in the pharmaceutical industry, said that Xiao Weihong's predecessor in Hanhui, Haizheng Pfizer, might bring new growth to the Haizheng system by returning to a familiar position.

key word: Haizheng Pharmaceutical veteran track National Health 2019