Since November, Ganli Pharmaceutical (603087.SH, hereinafter referred to as the “Company”) has repeatedly issued shareholder level announcements.In the first three quarters of this year, the company’s performance showed a growth trend. Listed for more than four years, the company has gone through thousands of sails, once with 100 billion market value and unlimited scenery, after the policy under the influence of restructuring strategy.
In 2023, Gan Zhongru, the real controller of the company, “exclusively” ordered the increase, and deployed the sea, research and development, investment and other work. Time will tell if the glory days will return.More than 70 years old real control people debtGan Zhongru, who is over the age of ancient, is still under great pressure.
According to the announcement, the company’s shareholder Xutehongda plans to reduce the holding of more than 6.01 million shares through centralized bidding within three months. The reason for the reduction is the exit capital needs of Xutehongda’s departed employees. Xutehongda is an employee-owned platform controlled by Gan Zhongru, but the main body of the reduction does not involve Gan Zhongru himself.
As of the third quarter of this year, Gan Zhongru and Xute Hongda respectively held 206 million shares and 47.494 million shares of the company, with a shareholding ratio of 34.21% and 7.9% respectively. The announcement came days after the company disclosed that Mr. Gan had pledged 28.45 million shares, or 13.83 percent of his stake in the company, to Yunnan International Trust to repay debt. A few days later, the company disclosed that some of Gan’s shares had been released, but the remaining pledged shares still accounted for 26.72% of its holdings.
The reason why the pledge of equity, things have to go back to the last round of fixed increase. In 2023, Gan Zhongru subscribed for all the company’s fixed increase shares with 773 million yuan, and the restricted sale period was 3 years. This huge “out-of-pocket” behavior has also attracted regulatory inquiries. At that time, the company disclosed that its funds came from its own funds and self-raised funds.
Among them, the own funds are the salary bonuses and cash dividends accumulated by Gan Zhongru from the company since 2019, totaling about 200 million yuan. The remaining self-raised funds of more than 600 million yuan came from its share pledge financing and relatives’ loans.”Out of pocket” involves a relatively large amount of money, as well as the uncertain risk of stock price fluctuations, Gan Zhongru can be described as a gamble.
In 1995, Gan Zhongru returned to his native land after nearly knowing his destiny. At this time, the return is to receive the “olive branch” of Peking University classmate Li Yikui. The two sides decided to jointly break the situation of imported insulin monopoly in the domestic market, by Gan Zhongru out of technology, Li Yikui out of funds, and jointly develop domestic similar products.
Three years later, the first domestic recombinant human insulin was born, and Ganli Pharmaceutical was established almost at the same time, and its name was taken from the two founders. In 2005, the company listed the first domestic third-generation insulin, and the technical level has caught up with multinational enterprises. Since then, “Gan” and “Li” split, Li Yikui transferred company shares, Gan Zhongru introduced Qiming Venture capital, the fate of former classmates to bifurcation.
In 2020, Ganli Pharmaceutical was successfully listed. Due to the leading technology and products, the market value of the company at its peak exceeded 110 billion yuan, and Gan Zhongru also reached the apex of life. But soon, a storm hit the industry.The scenery is beautiful, but the flowering period is short. In 2021, insulin will be included in the special collection. Lower price knife, finally cut to biological medicine. The following year, Ganli Pharmaceutical and its peers won the bid with a price cut, even more than 60%, but the pain also followed.
On the one hand, the company’s performance turned from profit to loss, and the net profit returned to the mother in 2022 was -440 million yuan, down 130.25% year-on-year. On the other hand, the company’s share price fell from a high, and its market value fell to about 20 billion yuan. This period of time to clear, gave Gan Zhongru re-examine the market opportunity, the company’s strategy is gradually radical.
One obvious change is that the company’s wealth management investments have expanded from purely banking products to riskier securities markets. In 2022, the company purchased six securities products, including five stocks, with its own funds of 133 million yuan. As of the first half of this year, the company sold some of its investments, and the related fair value changes and disposal gains totaled 141 million yuan, and the book value of the securities investment still held was 261 million yuan.
The pain of clearing lasted almost a year. In 2023, the company returned to profit. In the first three quarters of this year, the company participated in the special procurement of insulin, and all six products were continued, with an average price increase of 31%, and a total of 46.86 million units were purchased under agreement, including 43.55 million units of third-generation insulin analogs; In the same period, the company’s operating income and net profit were 2.245 billion yuan and 507 million yuan, respectively, an increase of 17.81% and 90.36% respectively.
Performance is picking up, driven by the recovery of the domestic market, but there is still a gap from the peak revenue of more than 3.6 billion yuan in 2021. Gan Zhongru wants to strive to jump, which is also an important reason for 2023 to participate in the fixed increase.
The company’s future business blueprint covers R&D pipeline, industrialization, going to sea and other plans. In the previous response letter to the regulator, the company said that it will invest about 2.5 billion yuan in research and development in the next three years (2024-2026). In the first three quarters of this year, the company’s research and development expenses were 403 million yuan, an increase of 8.9%.
From the god at the top of the mountain to the people coming down the mountain, Ganli Pharmaceutical is still adapting and developing.In fact, shortly after the successful listing in 2020, the company made major changes to the top management. Gan Zhongru stepped down as general manager but retained his role as chairman. Du Kai became the new general manager, the company from the internal promotion of Lawrence Allan Hill, Wang Bin, Yuan Zi Fei and Xing Cheng four people to deputy general manager.
At that time, the new management, there are many post-80s, post-90s figure. It is reported that Gan Zhongru launched the Phoenix Plan, a training strategy for young talents, before the company went public. From the layout to the push to the front, the company is infinite scenery. After the collection, the market environment has changed greatly, and the company has further accelerated its plan to go to sea.
As early as before the market, Ganli Pharmaceutical plans to land insulin products in Brazil. Until this year, the company’s insulin factory in the country was officially inaugurated.In the first three quarters of this year, the company’s international sales revenue was 242 million yuan, an increase of 37.63%. Part of the increase came from the company’s push into emerging markets.
During the reporting period, a number of products produced by the company in Algeria were locally registered and shipped in the third quarter, which means that it successfully landed in the African market for the first time. Earlier, the company’s products have been approved in Bolivia, Kazakhstan and other countries, winning the bid.
The other part of the increment is the revenue of the company’s franchise service of 135 million yuan during the reporting period, which comes from the increase in the revenue of milestone nodes recognized by the agreement. Previously, the Company signed a Production and Supply Agreement with Sandoz, which provides the latter with exclusive rights to sell the Company’s insulin products in certain regions such as the United States, Canada and Europe.
According to the progress of the project, Sandoz pays the pre-franchise service income, milestone fees, and sales profit share every year.Of course, the future increment lies in the company’s new product listing, capacity release and so on. Up to now, its research and development pipeline covers the fields of weight loss drugs, fourth-generation insulin, monoclonal antibodies and so on.
The production base in Linyi, Shandong Province, which will start construction in 2020, has made 71.79% progress as of the first half of this year, with a total budget of 3.018 billion yuan, and an annual output of 10 billion tablets and 700 million injection pens is expected in the future. (Produced by Thinking Finance)
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