I. Discussion and analysis of operating conditions
2020 is a crucial year for the company's development strategy, the closing year of the 13th Five-Year Plan and the layout year of the 14th Five-Year Plan. With the strong support of shareholders and directors, the board of directors of the company closely focuses on the development strategy of "one core and two wings", strengthens the hard-core functions such as brand, capital and scientific research, and takes the year of project promotion and supervision, the year of refined management promotion, the year of striving for national civilized unit, the year of all-staff brand marketing and the year of system construction as the starting points to enhance advantages, make up for shortcomings, strengthen industrial integration and mergers and acquisitions, and constantly promote the efficiency of brand value transformation.
During the reporting period, the board of directors of the company strictly implemented various laws and regulations, implemented the resolutions of the shareholders' meeting, earnestly performed its duties, and successfully completed various objectives and tasks.
(1) Strengthen responsibilities, strictly manage the party, and party building leads the high-quality development of enterprises.
The Party Committee of the company made overall plans for epidemic prevention and control, led the high-quality development of enterprises with high-quality party building, and provided a strong organizational guarantee for striving to win the "double victory" of normalized epidemic prevention and control and enterprise development.
First, strengthen theoretical armed forces and improve political positions. The company strengthened the implementation of the learning system of the central group of the Party Committee, strengthened the education and training of cadres in party member, participated in the theoretical training of the United front of state-owned enterprises in the city, and strictly implemented the ideological work responsibility system. The second is to strengthen organizational construction and build a strong fortress. The company strengthens the guidance and supervision of grass-roots party building, optimizes the establishment of grass-roots party organizations, and scientifically divides and reasonably sets up grass-roots party organizations according to the principles of adapting to local conditions, facilitating management and efficient operation. The third is to strengthen the main responsibility and implement the comprehensive and strict management of the party. The company compacts the main responsibility, formulates a list of responsibilities, issues a responsibility book for comprehensively and strictly administering the party's main responsibility, conducts pressure at different levels, and implements responsibilities step by step; Formulate the "1+X" normalized joint supervision and inspection work plan, revise the implementation opinions on the prevention and control of integrity risks in key links of production, operation and management activities, and earnestly implement the work.
(two) around the main business, accelerate research and development, and actively build an innovation system.
New drug research and development: the company vigorously promoted the 1 1 new drug research project, and made significant progress in several projects. Among them, generic drugs PZH23 10 and PZH23 12 have submitted applications for listing registration and entered the stage of supplementary information; The new drugs PZH 1204 for generalized anxiety disorder, PZH120 for irritable bowel syndrome and PZH 1203 for osteoarthritis have entered the clinical research stage. Initially formed the R&D pipeline layout of new drug products such as characteristic Chinese patent medicines, classic famous prescriptions, innovative chemicals and high-quality generic drugs.
Large variety cultivation of Pien Tze Huang: The company continues to develop large variety technology around Pien Tze Huang and other independent superior varieties.
Improve systematic research and accurately promote the process of "modernization of traditional Chinese medicine" for exclusive varieties such as Pien Tze Huang. The company actively promoted Pien Tze Huang's application for increasing the function of treating liver cancer; Continue to carry out in-depth research on the curative effect and immune mechanism of Pien Tze Huang in treating liver cancer, clinical research of Pien Tze Huang in treating herpes zoster and knee joint replacement, and more than 40 research topics such as pharmacology, toxicology, clinical and quality standards.
Innovation system construction: The company promotes the innovation ability construction of national enterprise technology center, provincial enterprise key laboratory, provincial engineering research center and other scientific and technological platforms, and jointly establishes "Nanjing University-Pien Tze Huang Chinese Medicine Small RNA Function and Application Research Joint Center" with Nanjing University.
Other aspects: the company has passed the acceptance of five provincial and ministerial projects, including the special project of international cooperation in traditional Chinese medicine, the special project of local science and technology development guided by the central government and the major project of Fujian Province. The company carried out patent mining and layout of key varieties and key technology research results, and applied for and accepted 22 patents, including 2 invention patents 1, utility model patents1and 4 authorized invention patents. The company has carried out research on 28 technical topics and obtained the registration approval of new product specifications such as "two stickers and one piece". The company obtained the renewal registration approval of Agaricus bisporus extract tablets, and completed the renewal registration of three health foods: Panax quinquefolium, Panax notoginseng and Salvia miltiorrhiza granules.
(3) Strengthen management, strictly control and improve the quality management system.
The company strictly controls product quality, guards the lifeline of the enterprise, constantly innovates quality control technology and enhances the added value of product quality.
First, strengthen quality system management. The company strengthens production site management, closely follows the key supervision points exclusive to each product, and reduces operational risks; Complete ISO system management, re-certification and evidence collection.
The second is to strengthen the management of Chinese herbal medicine bases. The company formulated the construction plan of Chinese herbal medicine base in the next five years, completed the investigation of ginger planting base of Fujian Runshen Pharmaceutical Co., Ltd. and signed the planting contract; Quality management of key links in the whole process of Chinese herbal medicine base, standardizing the planting and breeding process of the base and supervising the harvesting process.
Third, continuously improve the level of laboratory management. According to CNAS-CL0 18 Accreditation Standards for Testing and Calibration Laboratories and other related standards, quality manuals and program documents are compiled and a new management system is operated. The company completed the revision and formulation of 2 1 1 GMP document.
The fourth is to set up a medicinal materials center. In order to effectively build and improve the industrial chain management and control mode, give full play to the social and economic benefits of Chinese herbal medicine breeding, and ensure sustained and healthy development, based on the strategic needs of "one core and two wings", the company has set up a new department under the research institute-the Research Center for Sustainable Utilization and Protection of Chinese Medicinal Materials (referred to as the Medicinal Materials Center). Based on breaking through the shortcomings of basic research in Chinese herbal medicine breeding industry, Chinese herbal medicine center aims to make Pien Tze Huang Chinese herbal medicine breeding base better and stronger, assist the management of the company to plan, plan and coordinate the development of Chinese herbal medicine breeding base, and promote the company to upgrade from the competition of single product quality to the competition of quality control in the whole industry chain.
(4) Actively respond, improve services and promote sustained sales growth.
Faced with the impact and influence of the epidemic, the company built an "innovative" marketing strategy, through the innovation of marketing channels, marketing promotion and sales service, to show the quality of Pien Tze Huang products to the market in all directions, continuously improve the service quality, strengthen the brand influence and product reputation of Pien Tze Huang, promote market increment and expand the total market capacity, and achieved good sales performance.
The first is to deepen the terminal vitality construction and carry out accurate and efficient terminal activities. The company will run through the concept of "brand marketing year for all employees", sell terminals and promote them accurately. In 2020, more than 500 offline terminal activities will be held all over the country, the quality of the activities will be further improved, the publicity and promotion crowd will be more accurate, and the effect of the activities will be more obvious. The second is to innovate ideas and improve the service of the experience hall. The company innovatively established an online live academic training model; Visit and communicate offline and make personalized service plans. The third is to improve and implement the "external expert management system" to promote the terminal promotion and customer service of Pien Tze Huang to be more academic, accurate and professional.
(5) Take a multi-pronged approach, enrich channels and promote the brand building of Pien Tze Huang.
The company adheres to the corporate mission of "inheriting Chinese medicine culture and innovating national treasures and famous medicines", pays special attention to marketing and brand building, and constantly enhances brand influence.
First, make full use of superior media. Consolidate Pien Tze Huang's position as a "national treasure and famous medicine" with the help of high exposure satellite TV media such as Fujian Satellite TV and Southeast Satellite TV; Publish articles in reference news, Xinhua Daily Telegraph, Xinhuanet (603888), Economic Reference Network and other media to enhance the brand image of Pien Tze Huang; Through the documentary "Hello Mom" of Southeast Satellite TV and Dr. China's program, relevant brands are implanted and publicized to improve the brand awareness of Pien Tze Huang. The second is to actively plan and organize special projects. The company selected Beijing, Shanghai, Guangzhou and other key cities 10 to accurately deliver the holiday wishes and liver nourishing information of Pien Tze Huang brand spokesperson Lang Ping; With the help of Xinhua News Agency's all-media resources, Pien Tze Huang's advertisements were put on outdoor screens of famous landmarks and crowded places in Beijing, Shanghai, Harbin, Shenzhen and other places, creating a comprehensive information support platform, a brand communication service platform and a productivity auxiliary platform. The third is to leverage the communication platform of various industries. The company actively participated in the 83rd Guangzhou National Drug Exchange Conference, Cloud 2020 China Brand Day-Fujian Cloud Exhibition Hall, 20 19 China Time-honored Brand Activities, etc. During the epidemic prevention and control period, Pien Tze Huang displayed his brand style in a new form of cloud conference, and established a good relationship with medical colleagues and consumers without geographical boundaries to help Pien Tze Huang promote his brand.
(VI) Expand M&A, make it bigger and stronger, and lay out the blueprint for the healthy development of the company.
Focusing on the development strategic plan of "one core and two wings", the company actively expands capital operation in the fields of market value management, M&A funds, investment and financing, and helps the company to develop on a large scale.
The first is to strengthen the operation and management of the fund. Company * * * participated in launching 4 pharmaceutical equity investment funds.
The company has played an active role in docking superior resources in the medical field, expanding investment horizons and team training, finding matching projects in line with Pien Tze Huang's development strategy, and taking into account financial investment income. The foreign investment projects of the four funds cover biomedicine, diagnostic reagents, pharmaceutical circulation and other fields. Up to now, they have entered the withdrawal period. * * * Four projects were completely withdrawn and two projects were partially withdrawn.
The second is to promote the healthy development of shareholding holding companies. The company promoted the asset allocation optimization of its holding subsidiaries, strengthened the risk management and control of foreign investment, and incorporated the implementation effect into the regulatory matters according to the actual development of the company's strategy to strengthen the follow-up supervision.
Third, actively expand investment in industrial projects and mergers and acquisitions. The company invested in Zhangzhou Hi-tech Pien Tze Huang Protective Products Co., Ltd. During the epidemic period, in order to alleviate the shortage of raw materials for some epidemic prevention materials, the company urgently searched for suitable manufacturers in the province and completed the relocation, debugging and production of equipment in a short time. The company actively promoted the project of holding Longhui Pharmaceutical, with a total investment of 44.4759 million yuan, holding 5 1% equity of Longhui Pharmaceutical, and completed the corresponding industrial and commercial changes at the end of July. Longhui Pharmaceutical has the approval of Chinese and western medicine 1 15, especially Angong Niuhuang Pill (double natural), Huang Xi Pill (double natural) and other proprietary Chinese medicines, which have high market value. Investing in Longhui Pharmaceutical will help to enrich the company's product pipeline and play a positive role in the layout of traditional Chinese medicine prescriptions.
In addition, combined with the rapid development of e-commerce in recent years, the company actively plans to promote the online marketing of health care products and cosmetics, strengthen the integration of the company's e-commerce business sectors, and pay attention to the cooperation and exchanges between leading domestic e-commerce regions and enterprises.
(seven) improve management, standardize operation, in-depth development of the "system construction year" activities.
The company launched the "year of system construction", actively promoted the work of performance improvement, standardized the operation of enterprises and comprehensively improved the management level.
The first is to carry out the year of system construction in depth. The company has set up a working leading group and an office, which has formed a working situation with strong leadership, clear hierarchy and joint management. The company held a mobilization meeting for the year of system construction to make overall arrangements and ensure the participation of all staff. Each department conducted self-examination and self-correction on the system development, and made a rectification plan.
The second is to strengthen bidding management. The company organized the Engineering Equipment Department and the infrastructure personnel of subsidiaries to conduct online course training on Analysis of the Implementation Regulations of the Bidding Law; Drafting the Measures for the Administration of Bidding and Procurement (draft for comments) and its annex: Guidance Form for the Authority of Purchasing Method Selection; Establish a directory database of engineering bidding agents and cost consulting intermediaries.
The third is to promote performance improvement. The company continued to promote performance management consulting projects and organized mid-term surveys and interviews. At present, seven reports, including Analysis Report on Salary System of Zhangzhou Pien Tze Huang Pharmaceutical Co., Ltd. and Design Scheme of Performance Management System of Zhangzhou Pien Tze Huang Pharmaceutical Co., Ltd., have been submitted for review.
The fourth is to strengthen the management of holding subsidiaries. The company organizes holding subsidiaries to report regularly, regularly submits "three majors and one big meeting" and "three meetings" materials, standardizes the process of submitting to the meeting of party committees and senior executives of pharmaceutical companies, improves the information management of subsidiaries, and promotes the vertical management of departments.
(eight) to carry out the responsibility, do a good job of prevention and control, to ensure safety in production.
Focusing on the annual work target of safety production, we will strictly implement the main responsibility of enterprise safety production and the post responsibility system of all employees. While doing a good job in the prevention and control of normalized epidemic situation, the company should do a good job in the production safety control of key parts, prevent and resolve major risks, eliminate potential safety hazards in time, and effectively curb production safety accidents. The company focused on fire prevention and control in winter and spring, centralized rectification of safety production, 100-day action to investigate hidden dangers of special equipment, major rectification of safety production and three-year special rectification of safety production, implemented flood prevention and typhoon prevention work, and carried out activities such as "Publicity Week of Occupational Disease Prevention Law", "Publicity Week of Disaster Prevention and Mitigation" and "Safety Production Month".
(9) Take root in culture, be enthusiastic about public welfare and practice the social responsibility of listed companies.
The company strengthened the publicity of the activity of creating "National Civilized Unit", adjusted the setting of leading institutions, formulated the work plan of creating a national civilized unit, and reorganized and repositioned the corporate culture construction. The company actively carried out publicity activities such as "civilized dining, * * * fighting the epidemic" and "heroes in white armor welcome home", and strengthened the publicity and creation of activities. The company has done a solid job in helping poor families in Bei Le Village, Changle Township, Pinghe County, carried out voluntary blood donation activities and donated money to help seriously ill orphans and disabled children in the municipal welfare home; Carry out the "Love Helping Group" activity, support 120 families, and fulfill the social responsibility of state-owned enterprises. At the same time, the company deepened the comprehensive management of safe construction, carried out anti-drug publicity and education activities, strengthened the anti-terrorism and stability work of letters and visits, resolved the contradictions of letters and visits related to epidemic in time, and comprehensively used various contradictions to create a safe, harmonious and stable environment.
Second, possible risks
(1) Policy risk and market risk
On the one hand, with the strategy of revitalizing the Chinese medicine industry put forward, the Chinese medicine sector is influenced by national policies and driven by the concept of consumption upgrading, which ushered in new development opportunities; On the other hand, the regulatory policies are becoming stricter and stricter, and the requirements for industry norms are higher. Facing these challenges and opportunities, the company will be policy-oriented, based on its own resources and brand advantages, innovation-driven, product-based, quality-guaranteed, marketing-based, foster strengths and avoid weaknesses, actively respond, and focus on market development, variety cultivation, channel construction and cost control to achieve sustained and stable development of the company.
(2) the risk of tax policy changes
Our company is recognized as a national high-tech enterprise. According to relevant regulations, the Company will collect enterprise income tax at a reduced rate of 65,438+05% from 2065,438+07 to 2065,438+09. If the company's preferential tax policies change in the future, it will have a certain impact on the company's operating performance. In this regard, the company will increase investment in research and development, strengthen research and development efforts, and continue to maintain the competitiveness of high-tech enterprises. At the same time, the company will maintain information exchange with relevant departments, keep abreast of policy changes, and take measures to deal with possible risks caused by policy changes in order to maintain high-tech advantages.
(3) Quality risk
Drugs are substances used to prevent, treat and diagnose human diseases, purposefully regulate human physiological functions, and specify indications or functional indications, usage and dosage. As the basis of its function of preventing, treating and diagnosing diseases, product quality is influenced by many aspects, such as people, machinery, materials, methods, environment and measurement. In recent years, with the continuous improvement of national policies and regulations and the continuous strengthening of drug supervision, the frequency of flying inspection has become increasingly frequent, which has put forward higher requirements for the quality management of pharmaceutical production enterprises. Based on this, the company conducted training in strict accordance with the newly revised Drug Administration Law, Measures for the Supervision and Administration of Drug Production and related drug administration laws and regulations to improve employees' understanding of drug laws and regulations.
(4) Environmental risks
In terms of environmental protection, with the increasing supervision of national and local environmental protection departments, the company's requirements for environmental protection standardization and pollution prevention are becoming more and more strict. If pollution prevention or production links are not properly controlled, it may cause environmental pollution. Therefore, the company starts with improving the environmental management system, implementing various pollution prevention measures, strictly implementing GMP regulations, and standardizing production. While ensuring the quality of the company's products, we will continue to increase energy conservation and emission reduction and improve the level of environmental protection through upgrading environmental management technology, improving production technology and publicizing environmental protection knowledge. At the same time, the company will organize emergency plan drills, train emergency teams, implement post responsibilities, be familiar with the command mechanism, decision-making, coordination and disposal procedures of emergency work, test the feasibility of emergency plans, improve emergency response and disposal capabilities, and strengthen cooperation awareness.
(5) raw material supply risk and raw material price risk
The main raw material of Pien Tze Huang, the company's leading product, is the materials managed by the national key plan, and the natural musk used by the company mainly comes from the administrative license of the national forestry authorities. At present, the amount of natural musk rationed by the state can basically maintain the company's existing basic production scale demand. With the strengthening of national protection and management of key wild animals and the increasing shortage of natural musk resources in society, the company started to lay out forest musk deer breeding channels and expand the scale of musk deer breeding in 2007 from the development strategy and planning in advance. The company established Sichuan Qixiang Pien Tze Huang Musk Industry Co., Ltd. and Shaanxi Pien Tze Huang Musk Industry Co., Ltd. respectively, vigorously developed artificial musk breeding, promoted the industrialization mode of "company+base+farmers+scientific research", gradually increased the capital investment in scientific research projects such as standardization of artificial breeding technology of forest musk, standardization of fragrance extraction technology, and establishment of quality standards for cultured musk, and established a real musk medicinal material base to alleviate Pien Tze Huang. At present, Shaanxi Musk Industry Base has become the only musk "demonstration base of high-quality genuine medicinal materials" in China.
Three. Analysis of core competitiveness during the reporting period
(A) brand advantage
Pien Tze Huang has a long history, profound cultural heritage and remarkable curative effect, which shows its unique brand advantage. Pien Tze Huang, a traditional and precious Chinese patent medicine exclusively produced by our company, originated in the court of Ming Dynasty, passed down in temples, spread among the people, enjoyed a good reputation overseas and developed in the contemporary era. Because of its unique curative effect, it has formed an excellent reputation and has been praised as a "national treasure and famous medicine" by Chinese medicine circles at home and abroad. Pien Tze Huang was awarded the title of "China Time-honored Brand" by the Ministry of Commerce in 2006; 20 1 1, Pien Tze Huang's production skills were selected in the national intangible cultural heritage list; Pien Tze Huang has been ranked on the Hurun brand list for six consecutive years, and ranked second in brand value of 20 19 medical and health industry. Ranked as "the first brand of hepatobiliary drugs" in the brand list of Healthy China from 2065438+05 to 2065438+09; Pien Tze Huang's innovative marketing management model won the second prize of the 24th National Enterprise Management Modernization Innovation Achievement. In 2020, Pien Tze Huang won the second place in China's time-honored brand with a brand value of 30.455 billion yuan; Ranked 55th in "Top 0/00 Most Valuable Brands in China in 2020", with a brand value of 56.696 billion yuan; The company was awarded the first batch of provincial industrial tourism demonstration bases in Fujian Province. Pien Tze Huang won with a good brand image.
The wide praise and recognition from all walks of life, capital market and consumers have created favorable conditions for the company to continuously promote the strategy of "one core and two wings" and enhance the vitality of the terminal.
"Pien Tze Huang" enjoys high popularity and reputation overseas, ranking among the top varieties of Chinese patent medicines exported in China for many years, and is known as the "China symbol" on the Maritime Silk Road.
Pien Tze Huang is a national first-class protected variety of traditional Chinese medicine, and has won the national quality gold medal. Its formula and technology are state secrets. Because of its unique formula and outstanding mechanism of action, its efficacy has obvious advantages over similar products. The relevant state departments only allow Pien Tze Huang and other precious Chinese medicines to use natural musk, which further shows the scarcity and preciousness of Pien Tze Huang.
(2) Technical advantages
The company adheres to the dominant position of R&D, attaches importance to the allocation of R&D resources, and expands and strengthens the three-level R&D platform innovation system. It has several independent R&D platforms, such as national enterprise technology center, postdoctoral research center, academician expert workstation, provincial enterprise technology center, provincial enterprise key laboratory, provincial engineering technology research center and Pien Tze Huang Pharmaceutical Research Institute Shanghai Branch. The company's "cooperation+no fence" R&D platform innovation system is improving day by day, and the R&D strength is constantly improving. The company actively introduces high-level talents, constantly enriches the talent team, builds a 100-person R&D team, and stimulates endogenous motivation. The company has established long-term and stable cooperative relations with well-known universities and research institutes in the field of medicine at home and abroad, constantly explored flexible and efficient cooperation mode in Industry-University-Research, carried out key technology research and collaborative innovation, and realized the integration of innovative resources and the good transformation of scientific research results.
During the reporting period, the company focused on the secondary development of advantageous varieties with Pien Tze Huang as the core, fully explored the scientific connotation and potential value of the company's products, and provided support for product marketing and clinical precise positioning. Focusing on senile diseases, chronic diseases and difficult diseases with high clinical incidence and lack of effective treatment schemes, we will further increase R&D planning and investment in innovative drugs of traditional Chinese medicine, classical prescriptions and chemical drugs, and enhance the driving force of R&D innovation in the future.