Sino-Singapore Jingwei Client, May 8 (Xiong Siyi) As of May 7, A-share pharmaceutical and biological companies (hereinafter referred to as "pharmaceutical companies") all disclosed in their 2019 financial reports, and 323 pharmaceutical companies accumulatively spent sales expenses in 2019 2873.47 100 million yuan.

　　Excluding the two unprofitable science and technology board companies of Biotech and Zejing Pharmaceutical, 321 pharmaceutical companies accumulatively spent 287.323 billion yuan in sales expenses in 2019, with an overall sales expense ratio of 16.49%, a slight decrease from 16.69% in the same period of 2018 .

　72 pharmaceutical companies' sales expenses exceed 1 billion

　　According to accounting standards, corporate expenses include sales expenses, management expenses, research and development expenses and financial expenses. Among them, sales expenses include marketing and advertising costs, travel and conference expenses, employee compensation and related benefits, etc. Different listed companies have different statistical calibers.

　　Wind data shows that according to Shenwan's industry classification, in 2019, Shanghai Pharmaceuticals once again became the "selling expense expenditure No. 1" of the A-share pharmaceutical and biological industry with a sales expense of 12.856 billion yuan; Fosun Pharma followed closely in 2019. It is tens of billions of dollars, reaching 9.847 billion yuan; in addition, another 70 sales expenses exceed 1 billion.

　　In terms of advertising and promotion fees, Fosun Pharma smashed 7.541 billion “shopping markets” in 2019, which was 1.816 billion yuan higher than the second-ranked Kelun Pharmaceutical, followed by Shanghai Pharmaceutical and China Resources Sanjiu. Over 5 billion yuan.

　　However, it doesn't make much sense to compare the sales expenses or advertising expenses. After all, for a large company like Shanghai Pharmaceuticals, over 10 billion of sales expenses accounted for less than 7% of revenue in 2019, which is fully affordable, but the sales expense ratio of some pharmaceutical companies (= sales expenses / total operating income * 100%) is already so high.

　　Image source: Wind

　　Wind data shows that nearly 40% of the 321 pharmaceutical companies have a sales expense ratio of more than 30%, and more than 10% of the companies have a sales expense ratio of more than 50%, of which Hanyu Pharmaceutical's sales expense rate is as high as 96.48%! This means that Hanyu Pharmaceutical has more than 0.96 yuan of sales revenue for every 1 yuan of operating income.

　　Ministry of Finance verifies the finances of 77 pharmaceutical companies in 2019

　　It has been reported that pharmaceutical companies attach importance to sales. After the two-vote system, the sales expenses of most pharmaceutical companies have further increased. According to incomplete statistics, in the first five months of 2019 alone, 16 listed pharmaceutical companies received an inquiry letter and a supervisory letter from the regulatory department requesting a description of sales due to the rapid increase in sales expenses or even the increase in revenue. The rationality of the cost increase and other issues eventually attracted a heavy blow from the regulatory authorities.

　　On June 4, 2019, the Ministry of Finance website announced that it decided to organize some supervisory bureaus and local financial departments (bureaus) to carry out the inspection of accounting information quality in the pharmaceutical industry in 2019. Fosun Pharma, Hengrui Pharmaceutical, Buchan Pharmaceutical , Shanghai Pharmaceuticals, China Resources Sanjiu, Tongrentang and other 27 A-share listed pharmaceutical companies are all on the verification list.

　　Caijian (2019) No. 18 urgent document shows that the key content of the verification is to focus on the authenticity of the expenses, costs and income of pharmaceutical companies and extended inspection units, including whether there is sufficient basis for sales expenses and whether they have actually occurred ; Whether there is a phenomenon of drawing large amounts of cash with various invoices such as consulting fees, conference fees, accommodation fees, and transportation fees; whether there is a phenomenon of paying rebates to medical personnel through expert consulting fees, research and development fees, publicity fees, etc.

　　In order to verify the authenticity and compliance of the sales expenses of pharmaceutical companies, the regulatory authorities also require "penetrating" supervision of pharmaceutical sales links, extended inspections of related companies and related sales, agency, advertising, consulting and other institutions, if necessary, can be extended Check medical institutions.

Overall sales expense growth slowed

　　According to public data, due to the above-mentioned news, on June 4, 2019, the A-share pharmaceutical and biological industry was "scared" by more than 50 billion market capitalization, and the financial report data showed that although the sales expenses of listed pharmaceutical companies in 2019 still maintained positive growth , But the growth rate has slowed.

　　Wind data shows that 321 pharmaceutical companies in 2017-2019 spent 189.014 billion yuan, 257.143 billion yuan and 287.323 billion yuan in sales expenses respectively. Based on this calculation, the overall sales expense growth rate of the A-share pharmaceutical and biological industry in 2018 and 2019 was 36.04 % And 11.74%, the overall sales expense growth rate of the industry slowed down significantly.

　　The Sino-Singapore Jingwei client also noted that 306 pharmaceutical companies in the Shanghai and Shenzhen stock markets disclosed R & D expenses for two consecutive years. According to the statistics of 306 pharmaceutical companies, the research and development expenditure of 306 pharmaceutical companies in 2019 was only 44.987 billion yuan, less than 20% of the overall sales expenses. However, in 2019, the overall sales growth rate of the above 306 pharmaceutical companies was 11.34%, while the overall growth rate of research and development expenses was 25.67%, and the growth of research and development expenses was faster. (Sino-Singapore Jingwei APP)

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