Red Sun pharmaceutical academic promotion fee hidden mystery six months, 18 times times increase

"Red Weekly" author Ning Sun Pharmaceutical (300026) 2013 half a year, the academic promotion fee 18 times times, behind the increase in sales costs, the company undertook the original agent should be borne by the academic promotion fees, market research fees and other costs. At the same time, the company after a layer of audit of the 2013-year financial results unexpectedly appear data oolong. Academic promotion fee 18 times times more than six months, April 10, the Red Sun pharmaceutical Industry disclosed the 2013 annual report, the report showed that the Red Sun pharmaceutical industry in 2013 to achieve income of 2.097 billion yuan, an increase of 70.61% per cent, operating profit of 386 million yuan, up from the previous year to increase 24.79% The net profit of the ordinary shareholders of the listed companies is 340 million yuan, which is 46.92% higher than the previous year, and the overall rise is significant. This beautiful result hides huge hidden worries, according to the annual report, 2013 Red Sun Pharmaceutical industry only sales costs as high as 1.133 billion yuan, a 117.83% increase in management costs 208 million yuan, increased by 61.63% from the previous year, financial costs occurred-528,900 yuan, increased 92.72% from the previous year. Among them, the increase in sales costs is the most alarming, 2013 Red Sun pharmaceutical sales costs 1.133 billion yuan, accounting for 2013 total operating income of 2.097 billion yuan 54.02%, accounting for the operating costs of 1.71 billion yuan 66.25%, 2013 net profit of 3.37 times times more. This means that the red sun medicine every sell 1 yuan of goods, it is necessary to pay 0.54 yuan of sales costs, visible sales cost has greatly eroded the profit, become the red Sun Pharmaceutical industry's largest cost of expenditure. A closer look at the composition of sales costs, academic promotion fees, market research fees and conference fees are ranked in the first three of the cost of sales, respectively, 488 million yuan, 381 million yuan and 98 million yuan (see Schedule), respectively, the proportion of sales costs 43.07%, 33.67% and 8.64%. In addition, sales costs of the largest expenditure-the academic promotion fee, its large increase in the second half of the year, the Red Sun Pharmaceutical 2013.5 Annual report shows that the Red Sun pharmaceutical industry this expenditure of only 26 million yuan, in six months time, it soared to 488 million yuan, within six months, the increase of 18 times times more than! In view of the soaring sales costs, the red Sun Pharmaceutical explanation is "the company continued to integrate sales channels this year, adjust the sales strategy, the original agent to bear the market development costs, market research costs, is the company's commitment, so the corresponding sales costs significantly increased." This plausible explanation is a deep worry. First, the Red Sun Pharmaceutical industry's main operating income from its products, "blood will be net", according to Red Sun Pharmaceutical introduction, "Blood must net injection is currently the only listed in the domestic treatment of sepsis and multiple organ dysfunction syndrome," the company has the invention of the drug patent, patent protection period of 20 years And the drug in May 2006 by the Ministry of Science and Technology and the State Security Bureau jointly identified as the "secret level of national secret technology", since the sale of the market in 2004 has been widely used,At present the basic coverage of the country. 2013, the blood must net injection realizes the sales income 1.01 billion yuan, the gross profit margin compared with the same period last year growth 2.41%, has reached the sale mature stage, such big strength promotes the academic promotion, slightly is unreasonable. Secondly, from the medical agent system, this explanation is contrary to common sense. According to the industry, "drug sales agents have two types, one is the national General agent, enterprise products directly to them responsible for sales, there is a class of regional agents, responsible for a large area or a provincial agent." The blood must be net is always the proxy mode. Ping an securities [micro-blog] published at the end of 2011, said a study, "the company from the end of 2010, the integration of agents, to require agents of the same species can only agent blood net a product, and to find large-scale distributors, through the dealer to further expand the company's academic promotion work." and academic promotion, market research, and so on, is precisely the drug companies are difficult to cover the field, so drug companies will seek cooperation with distributors, dealers use in the local network and familiar with the market to help drug companies open up the situation. Because the agent is an independent operating unit, not the pharmaceutical companies can control the subsidiary, so, agents of the academic promotion and market research behavior is difficult to be drug management, in this uncontrollable situation, why should the Red sun to bear the agent high academic promotion costs? Third, because the current accounting standards do not have the sales costs below the detailed subject requirements, the company can be the actual operating conditions to set up the subject. and the academic promotion fee, market research fees and conference fees due to innate characteristics, in the audit and accounting aspects are not quantifiable, from the external data, it is difficult to understand the specific circumstances, due to these characteristics, academic promotion fees, market research fees and conference fees are often likened to "doctor rebate" synonymous. In the August of 2013, some foreign drug companies such as GlaxoSmithKline, Sanofi, Novartis and so on have burst into commercial bribery, which is carried out in the name of academic promotion fees, market research fees and conference fees. The data is Oolong, the annual cost is less than half a year expenditure? Red Sun pharmaceutical Academic promotion fees, market research fees and conference fees and increase the reason is only the red Sun medicine originally from the Agency to assume the responsibility of the company, the company in the last year, the cost of market research also exist oolong. According to the Red Sun Pharmaceutical 2013.5 Annual report, the first half of 2013, the Red Sun pharmaceutical expenditure market research fee of 383.6081 million yuan, accounting for the first half of 2013 years of sales costs 75.75%, Strange is, to the 2013 annual report, Market research fee has become 381.453 million yuan, accounting for 2013 sales costs 33.67%, within six months, the market research costs have shrunk by 2.1551 million yuan! The data is puzzling. Market research fees as a sales expense subordinate subjects, is a typical period cost, it is over time with the current product management and product sales directly related to the production of products, product manufacturing process has no direct relationship, that is, a particular period of accounting periodCosts. In other words, the cost is related to time, so the annual report in the financial statements of the period will be greater than or equal to the data in the half of the annual report. And the Red Sun pharmaceutical industry unexpectedly appeared in the annual report of the market research fee is less than half a year report market research fees, it is clearly contrary to the common sense of the situation. Sales costs, an uncontrollable difficult to review the subject, it is easy to become some listed companies financial fraud "filth". And the Red Sun Pharmaceutical Annual Report and semi-annual report, in the experience of its accounting departments, audit departments of the audit, and was recognized by the Board of Directors of listed companies, representing the most real, the most important situation of the disclosure of the carrier case, unexpectedly appear such data oolong. What should investors believe if there is no credibility to a fixed report?