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This is the 93rd article of Xiao Gulier.

Xiao Gulier reads financial reports: Baiyun Mountain

The largest pharmaceutical company in China

Revenue is 64.952 billion, net profit is 3.441 billion, net interest rate is 5.3%, net interest rate on shareholders' equity ROE is 13.87%

The revenue scale should be the largest in the industry, and financial indicators Very nice too.

Before, the two products that impressed me most about this company were Banlangen granules and Wanglaoji herbal tea

After reading the financial report, I discovered that it not only has a huge revenue scale It is large, and its business sectors are also very complex...

This large state-owned enterprise group actually includes 12 time-honored traditional Chinese medicine brands, and the pharmaceutical distribution is also the largest in South China, as well as Wanglaoji...

So With many time-honored brands and Wong Lo Kat included, its market value is only 47.1 billion, far less than Yunnan Baiyao’s 113.2 billion and Pien Tze Huang’s 88.7 billion.

More than half a year has passed in 2020, and no analysts have published a research report on this company.

After a quick glance at the more than 300 pages of financial reports, the biggest gain is that I once again feel the inclusiveness of accounting.

No matter how complex the business organization and business model is, or how many operating entities it includes, accounting can consolidate them all into standard financial statements.

After complex accounting processing and consolidated statements, we can see the report numbers and related ratios, and financial indicators have become meaningless in this situation.

After all, 12 important time-honored brands and 10 century-old companies are only a small part of the business of this large state-owned enterprise...

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(1) Market capitalization and stock price

(2) Key financial indicators

The 2019 financial report ***325 pages, the core data of the financial statement are as follows:

(1) Income statement - the transcript of business operations

(2) Profit rate & expense ratio - the power of structure!

(3) Cash flow - cash is king!

(4) Assets | Liabilities | Shareholders' equity - the fundamentals of the company

(5) Asset efficiency - focus on inventory, receivables, Operating cycle

(1) Revenue and gross profit - by industry/product classification

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(2) Revenue and gross profit - by region

(3) R&D investment of 576 million, accounting for 0.91% of revenue

(4) Employees

Cash dividend distribution plan for the past three years:

Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. is a listed company controlled by Guangzhou Pharmaceutical Group Co., Ltd. (A shares 600332, H shares 00874)

Mainly engaged in:

(1) Research, development, manufacturing and sales of Chinese and Western patent medicines, chemical raw materials, natural medicines, biomedicines, and chemical raw material medicine intermediates;

(2) Western medicines, traditional Chinese medicines and medical devices Wholesale, retail and import and export business;

(3) R&D, production and sales of comprehensive health products;

(4) Investment in health industries such as medical services, health management, health care and elderly care wait.

After years of careful building and accelerated development, the Group has gradually formed four major business segments: "Big Southern Medicine", "Big Health", "Big Commerce" and "Big Medical", as well as "E-commerce" and "Big Medical". Three new business formats: "capital finance" and "medical equipment".

1. Southern Medicine Segment (Pharmaceutical Manufacturing Business)

The Group is the master of Southern Traditional Chinese Medicine.

The company owns 12 Chinese time-honored pharmaceutical companies, including Zhongyi Pharmaceutical, Chenliji Pharmaceutical, Qixing Pharmaceutical, Jingxiutang Pharmaceutical, and Pan Gaoshou Pharmaceutical, 10 of which are century-old companies.

The Group and its joint ventures*** have 321 varieties included in the "National Medical Insurance Catalog", 331 varieties included in the "Provincial Medical Insurance Catalog", and 143 varieties included in the "Essential Medicine Catalog";

The main traditional Chinese medicine products include Xiaoke Pills, Compound Salvia Tablets Series, Isatis Granules Series, Qingkailing Series, Zishen Yutai Pills, Xiao Bupleurum Granules, Huatuo Zaizao Pills, Xia Sangju Granules, Xiaoer Qixing Tea Granules, Zhuang Yaojianshen Pills, Angong Niuhuang Pills, Shujinjianyao Pills, Milian Chuanbei Loquat Cream, Kegan Liyan Oral Liquid, etc. have obvious advantages in brand and variety of proprietary Chinese medicines in South China and even the whole country.

2. Big Health Segment

The Group’s Big Health Segment is mainly engaged in the production, research and development and sales of beverages, food, health products and other products. The main enterprises include subsidiaries of the Company. Subsidiaries include Wanglaoji Health Company and Wanglaoji Pharmaceutical; its main products include Wanglaoji herbal tea, Ganoderma lucidum spore oil capsules, throat lozenges, Guiling paste, etc.

3. Large Commerce Segment (Pharmaceutical Distribution Business)

The Group’s Large Commerce Segment is mainly engaged in pharmaceutical distribution business, including wholesale, retail and retail of pharmaceutical products, medical equipment, health care products, etc. Import and export business. In terms of wholesale business, it is mainly carried out through the company's subsidiaries Pharmaceutical Company, Caizhilin Pharmaceutical and Pharmaceutical Import and Export Company; in terms of retail business, it is mainly carried out through the "Caizhilin" pharmaceutical chain store, "Jianmin" pharmaceutical chain store and Guangzhou Pharmaceutical large pharmacy chains, etc.

terminal development. Among them, the pharmaceutical company is the leading pharmaceutical distribution enterprise in South China.

4. Big Medical Segment

The Group, with Baiyunshan Medical and Health Industry Company and Medical Device Investment Company as its main bodies, focuses on development through various methods such as new establishments, joint ventures, and cooperation. Medical services, traditional Chinese medicine health care, modern elderly care and medical device industry.

At present, the large medical sector is in the stage of layout and investment expansion. In the field of medical services, Guangzhou Baiyunshan Hospital has developed from a community hospital to a secondary medical institution, with rapid growth in beds; in the field of health and wellness, the Tibetan health castle in Linzhi, Tibet has been fully completed, and the Runkanyue subsidiary is striving to put it into trial operation as soon as possible; In the field of medical device industry, Guangzhou Zhongcheng Medical Device Industry Development Co., Ltd. has built a medical device innovation incubation park operation platform and vigorously promoted the layout of the medical device industry.

(1) Products: in the fields of diabetes, cardiovascular and cerebrovascular diseases, antibacterial and anti-inflammatory, heat-clearing and detoxifying, parenteral nutrition, cough and cough relief, bruise analgesia, rheumatism and bone pain, A complete series of varieties has been formed in the fields of gynecology and children's medicine, nourishment and health care. It has more than 40 types of dosage forms, nearly 2,000 varieties and specifications, and more than 90 exclusive production varieties.

(2) Brand: The Group owns 10 well-known trademarks in China, 22 famous trademarks in Guangdong Province, and 27 famous trademarks in Guangzhou City. Among them, the brand awareness and reputation of "Wong Lo Kat" and "Baiyunshan" have great influence and appeal among consumers across the country, and they are one of the most valuable brands in the country.

During the reporting period, the Group and its joint ventures added: (1) 1 national-level R&D institution: National Canine Experimental Animal Resources library; (2) 2 provincial-level engineering technology centers: Guangdong Provincial Precision Medical Biotechnology Products Engineering Technology Research Center and Guangdong Provincial Freeze-Dried Human Rabies Vaccine (Vero Cell) Engineering Technology Research Center; (3) 3 provincial-level enterprises Technology centers: Xingqun Pharmaceutical Technology Center, Guangzhou Baidi Technology Center and Chenliji Pharmaceutical Technology Center.

The company profile content is excerpted from: the company's official website or financial report

The company's financial report comprehensively reports the company's operating results (profit and loss), asset status and cash flow .

The annual financial statement is the company's operating report card for the past year.

Reading financial reports is the best way to quickly understand the financial status of a company.

Audited financial statements can be trusted with cautious optimism.

(1) Small principles for reading financial reports:

(1) Comprehensive principle: Read three financial statements completely

( 2) Key points: Pay attention to important subjects and large projects

(3) Independent thinking + comprehensive analysis (combined with non-financial statement information)

(2) Don’t understand accounting, but can read Do you understand financial reporting?

Financial statements can be understood, analyzed and judged using common sense.

"Understandability", one of the quality requirements for accounting information, requires that accounting reports should be easy to understand and use by investors and other users.

Accounting standards are becoming more and more complex...

But no matter what, accounting is just business language and cannot change the business essence.

A company's assets, liabilities, income, expenses and profits should essentially be consistent with the public's common sense.

(3) Tips for reading financial reports:

1. Look at the scale: absolute values ??of revenue, profits, assets, liabilities, etc.

2. Look at composition ratios and growth rates: financial data are historical data, and you must learn to look at fundamentals and trend analysis

3. Key financial indicators: ROE, ROTA, asset-liability ratio, current ratio, etc.

(4) Financial indicators:

There are hundreds of financial indicators, which can be divided into two categories according to their nature:

Qualitative indicators: Just choose the simplest and easy-to-calculate indicator, which is more suitable for qualitative judgment and evaluation analysis.

Quantitative indicators: require specific analysis of specific situations and are not suitable for horizontal comparison and analysis and judgment.

(5) Limitations of financial statements:

Financial data are historical data, and financial information is not comprehensive.

Also pay attention to non-financial information such as the company's development plan, industry and upstream and downstream development trends of the industrial chain, competition conditions, changes in consumer demand, etc.

In addition to the company’s audit report and financial statements, the annual financial report also contains business analysis, core competitiveness, industry information, etc.

It is recommended that you have time to download the annual financial reports of some companies and take a look. You will gain a lot.

(6) How to download annual financial reports:

Sina Finance and Juchao Information both support the downloading of annual reports and quarterly reports.

The classification of the financial website is more user-friendly and suitable for novices to search and download.