Hello everyone, today’s article is the 268th original article written by the sweeping monk Sima Yi . If you want to interact with me, leave a message at the end of the article.
01
This time the wolf is really coming
Just when everyone was attracted by geopolitical events, a seemingly unknown but very important thing happened in the world of traditional Chinese medicine.
Recently, A-share company Jianmin Group (600976.SH) announced that the company and its wholly-owned subsidiary Jianmin Group Yekai Thai Pharmaceutical (Suizhou) Co., Ltd. and Ping An Tsumura Co., Ltd. signed a "Letter of Intent for Joint Venture Cooperation". The parties plan to Reached a preliminary intention to establish a Chinese patent medicine company. The
joint venture will build a new production base in Hubei Province. The production base will draw on Tsumura's production quality system construction and management experience in all aspects, starting from safety, uniformity, quality upper and lower limit control, etc., to comprehensively build a modern proprietary Chinese medicine. enterprise.
A wholly-owned subsidiary of Jianmin Group will cooperate with Ping An Tsumura to establish a new company "Tsumura Jianmin Pharmaceutical Co., Ltd." According to the agreement between the two parties, Ping An Tsumura will hold 51% of the shares, and will absolutely control the joint venture. Ping An Tsumura is a joint venture between China Ping An Life and Japan Tsumura Co., Ltd. Japan Tsumura holds 56% of the shares and absolutely controls Ping An Tsumura. Calculating the layers of equity, Tsumura Kenmin will be actually controlled by Tsumura Japan.
Japan Tsumura Co., Ltd. was founded in 1893 and has a long history of 130 years. It is currently the world's largest Kampo pharmaceutical company, producing more than 120 kinds of Kampo medicines, and its market share in the field of medical Kampo preparations is as high as 84%. After Japan Jincun merged with and China Ping An , the acquisition journey began. On March 31, 2020, Ping An Tsumura Co., Ltd. (hereinafter referred to as "Ping An Tsumura") announced the acquisition of Tianjin Shengshi Baicao Traditional Chinese Medicine Technology Co., Ltd. (hereinafter referred to as "Shengshi Baicao") with a total transaction value of RMB 1.2 billion. After the transaction is completed, Ping An Tsumura will become the controlling shareholder of Shengshi Baicao, holding 80% of the shares. Ping An Insurance Overseas (Holdings) Co., Ltd. of China and Tsumura of Co., Ltd. jointly assisted Ping An Tsumura in completing this transaction.
02
The Japanese are eyeing China's big health market
Chinese capital has invested in Japanese Chinese medicine companies because of their brands and monopoly on the global market. Two Japanese Kampo pharmaceutical companies are targeting China's huge health industry market through Ping An.
In addition, as early as April 30, 2020, Ping An announced a strategic cooperation agreement with Japan's Shionogi Pharmaceutical Co., Ltd. (hereinafter referred to as Shionogi Pharmaceutical). Shionogi Pharmaceutical will sell treasury shares 6.356 million shares to China Ping An Life Insurance Co., Ltd. , with a total transaction value of 33.53 billion yen (approximately 2.18 billion yuan). After the transaction is completed, Ping An Life Insurance holds a total of 2% of the shares of Shionogi Pharmaceutical, becoming the seventh largest shareholder of Shionogi Pharmaceutical. Shionogi Pharmaceutical was founded in 1878. It has rich experience in drug research and development, production and sales. It is a leader in the Japanese pharmaceutical field and has high influence in the fields of anti-infection, central nervous system diseases and other related drugs. At the same time, the two parties discussed the establishment of a joint venture in Hong Kong, China. The joint venture plans to initially focus on new drug therapies for central nervous system , and will obtain the exclusive agent for two new drugs from Shionogi Pharmaceuticals in Asia (except Japan) right. The joint venture will also carry out various businesses such as new drug research and development, manufacturing and sales.
Many Chinese medicines from Tsumura and Shionogi in Japan basically come from Zhang Zhongjing's "Treatise on Febrile and Miscellaneous Diseases". In addition to "Treatise on Febrile and Miscellaneous Diseases", our treasures of traditional Chinese medicine also include "The Yellow Emperor's Internal Classic" ", "Compendium of Materia Medica", " A Thousand Gold Prescriptions ", etc. We ourselves have not properly protected these prescriptions and treasures left by our ancestors, nor have we applied for patents. But it was used by the Japanese to apply for a patent, which is indeed very sad.
Although there are national sentiments and historical developments there, we are inevitably a little wary.But from a business point of view, Japanese companies have taken advantage of the east wind and actively expanded into the Chinese market, which is better than many of our state-owned enterprise officials. Japan's Tsumura entered the Chinese market, using the power of capital to buy and buy, and constantly acquired our national traditional Chinese medicine brands.
03
The wolf is coming, the crocodile is coming, it is not a bad thing
Lu Xun's Nine Jin Old Lady often complains that one generation is not as good as the last, so it is particularly appropriate to put it here. The top leaders of our state-owned enterprises, the "officials", tend to sleep on the merits of their ancestors. They often pursue the principle of "not seeking merit, but seeking no faults", and can spend their tenure smoothly, be gilded, and then be promoted step by step as the third-ranking official. One important point. Singapore Prime Minister Lee Hsien Loong has also repeatedly emphasized that the only thing that can defeat China is the bureaucracy of state-owned enterprises.
is fine now, the wolf is coming, and so are the crocodiles. If there was no intrusion of Tesla , if we did not introduce Tesla as a crocodile from a big-picture perspective. Then it is impossible for China to have super innovative BYD and Huawei cars. All new energy vehicles are probably still lagging behind on the road of "cheating for subsidy", so how can they change lanes and overtake?
According to data from " "Healthy China 2030" Planning Outline ", it is expected that the total scale of China's health industry will exceed 8 trillion yuan in 2020 and will exceed 16 trillion yuan by 2030. Among them, the scale of China's traditional Chinese medicine market is expected to have a compound growth rate of 8.2%, which will continue to be faster than the growth rate of GDP. The future prospects of the industry are promising. Therefore, Tsumura Co., Ltd. has started the health food business with herbal medicines added, and is preparing to expand its business scope to the field of decoctions and Chinese patent medicines. It has proposed a sales target of 10 billion yuan for its entire business in China in 2027.
If Tsumura Co., Ltd. wants to gain further market share in the Chinese market, it will inevitably have to compete head-on with China's traditional Chinese medicine companies, most likely GPHL, Sinopharm, China Resources Group , Yunnan Baiyao , Pien Tze Huang, Beijing The Chinese Legion, with Tongrentang and others as the main force, is bound to meet with Japanese Tsumura and the Japanese Salt Rebels in this great era of the rise of traditional Chinese medicine.
Only when a wolf breaks into the sheep flock can the sheep be able to run and develop strong muscles. When there are crocodiles in the pond, the fish can swim faster and faster, and the fittest survive. Today's traditional Chinese medicine market is like the "second senior brothers" who have broken into the daughter's country. The top leaders of state-owned enterprises who are accustomed to resting on their ancestors' credit books and Mr. Lu Xun's " Will the nine-pound old ladies in "Fengpao " continue to be mediocre and do nothing but become worse than the previous generation? Or should you use your sword to take action and polish your national treasure brand? The stage has been set and it's time to go on stage.
can endure loneliness and maintain prosperity. The road of investment needs to be felt with your feet, and the road of investment needs to be measured with your heart. It requires the perseverance of "Sima Yi" and even more the Zen mind of "Sweeping Monk". This article is only for my investment records and thoughts. Investment is risky, so you need to be cautious when entering the market.
$Jianmin Group (SH600976)$ $Ping An of China (SH601318)$ $Pien Tze Huang (SH600436)$
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