4hw.com.cn: in the evening of April 25, sapais released its 2017 report card. Affected by the "magic medicine" event at the end of last year, the company's main revenue and net profit fell year on year, and disclosed the dividend plan. To the surprise of the market, the share price of saps suddenly rose to the limit in the last 10 minutes yesterday. Reporters of Beijing Youth Daily noted that this is the second trading board of the stock this year.
Annual report: net profit in the fourth quarter of last year was negative for the first time in seven years
According to the annual report of saps, influenced by the "magic medicine" event at the end of last year, the company's main business income in 2017 was 938 million yuan, down 4.07% year on year, and the company's net profit was 146 million yuan, down 46.92% year on year. The significant decline in performance is mainly due to the provision of goodwill impairment loss of RMB 50.62 million and the transfer of relocation compensation of RMB 83.57 million into non operating income of the current period. The annual report revealed that there were two reasons for the decline of its business, one was the drop in sales performance of saps eye drops due to the self media event in December 2017, and the other was the increase in market competition, which resulted in a year-on-year decrease in sales volume of saps eye drops.
The market also noted that in the fourth quarter of last year, after deducting non recurring profit and loss, the company's net profit was - 6.832 million yuan, which turned negative for the first time in seven years, which is an important signal. According to the company's disclosure, the main reason is that the company's wholly-owned subsidiary, Qiangshen pharmaceutical industry, failed to fulfill its 2017 committed net profit, resulting in an impairment loss of 50.6265 million yuan, affecting the net profit.
Focus: last year, the proportion of advertising investment in sales expenses exceeded 60%
Sapais Pharmaceutical Co., Ltd. is a pharmaceutical manufacturing enterprise mainly engaged in the production, R & D and sales of chemicals and Chinese patent medicines. It entered a share in July 2014.
According to the public information, sapais, which has been established for 34 years, has experienced the process from state-owned pharmaceutical factory to joint-stock cooperative enterprise and then to listed company. Previously, it has relied on the sales of single product sapais eye drops to support the company's performance. In 2017, the operating revenue of eye drops reached 685 million yuan, accounting for more than 70% of the company's operating revenue.
Prior to that, sapais has invested heavily in advertising for many years. In 2017, the company incurred sales expenses of 410 million yuan, down 3.08% year on year, of which advertising expenses were 270 million yuan, accounting for 66.91% of the sales expenses. From 2014 to 2016, the sales expenses of saps were 320 million yuan, 396 million yuan and 423 million yuan respectively, including advertising expenses of 207 million yuan, 241 million yuan and 263 million yuan respectively.
Sapeus said in the annual report that in the future, the company will strengthen the investment in the research and development of ophthalmic disease treatment, improve the research and development capacity of new drugs, increase the investment in public welfare undertakings, and improve the company's brand image.