Bixon Source Holdings Co., Ltd., which once had a product sales volume of 1.37 billion, has also exposed a scandal a few days ago. In recent days, a news that "Besunyen Slimming Tea cost less than 4 points" was rumors. It is said that after the average consumer buys a product at a price of 2 yuan per package, the so-called "tea" is actually only after removing packaging and marketing expenses. The value is 3 cents. According to industry sources, the current high price of health products is the norm.

The raw material cost was only 4 points. According to the verification, the annual report disclosed by Besunyen in 2010 showed that the company achieved a turnover of approximately 874.2 million yuan during the reporting period, of which Bishengyuan slimming tea and Besunyen Changrun Tea each achieved a turnover of 304.2 million yuan and 666.2 million yuan respectively. The turnover of the two major products accounted for 99.6% of the company's total sales for the year. In terms of sales volume, Bishengyuan Slimming Tea sold a total of 292.9 million bales in the same year, and Pitt Sunyuan Changrun Tea sold approximately 371 million bales during the reporting period.

Based on this measure, the ex-factory price for Bisunyuan Slimming Tea and Besunyen Changrun Tea in 2010 is about 1.04 yuan/bag and 1.53 yuan/bag. In the above annual report, Besunyen also announced the cost of sales in 2010. However, in the total cost of 91.135 million yuan, the cost of raw materials involved was only 29.97 million yuan, accounting for only 3.4% of the total annual turnover. The cost was evenly distributed to 663.9 million packs of slimming tea and Changrun tea sold in the same year. The raw material cost per pack was only 0.045 yuan.

While product costs have been questioned by the outside world, investors are also not optimistic about the company's performance and prospects. According to related media reports, starting from January 9, Bi Shengyuan, Chairman of the Board of Directors, Zhao Yihong actually sold Pitt students for three consecutive days. On January 9 and 10, Zhao Yihong sold 31.29 million shares and 25 million shares of Besunyen shares at an average price of HK$0.554 and HK$0.502, respectively. Together with the 25 million shares sold on the 11th, Zhao Yihong accumulated a reduction for three days in a row. The holding ratio was approximately 5.17%, representing approximately HK$40.24 million. On January 11, Besunyen's share price plunged 12.5%, and the intraday drop was once as high as 20%. In the following days, Besunyen’s share price has been falling.

For Zhao Yihong’s series of recent reductions, some analysts have spoken out and no surprises. The 2012 annual results to be released by Pittsburgh in March of this year will not be very satisfactory. If Zhao Yihong’s financial arrangement is for personal use, there is no need to allow Pitt students to take risks. This risk. However, Besunyen replied to the media that Zhao Yihong’s shareholding remained at a high level, exceeding 60%. Its recent reductions are personal financial arrangements of major shareholders, and the company does not make any comments. In addition, after the lock-up period began on January 14, the company’s directors will no longer have other reductions.

Exaggerating propaganda as a weapon In fact, after looking at the Chinese healthcare industry, it has been advertised on television, radio and other indiscriminate bombardment campaigns. For example, "This year's holiday is not a gift, the gifts only receive melatonin." The same as the "gold partner" to make up five samples, etc., once sold myths are no longer. People in the industry believe that the short product life cycle has become a nightmare for health care companies.

"Besunyin Intestinal Run Tea, not too thin Oh!" Bi Shengyuan advertising language can be described as very successful, many media said that advertising is a big weapon for competition. But today, the outside world has questioned that the development model of high-growth advertising through bombardment with advertisements will no longer work. This “weapon” has made Pitt students frequently exposed to falsehood, exaggerated propaganda, and advertising violations.

According to statistics, from 2006 to 2009, Besunyung was punished each year for "unauthorized release without authorization" and "false promotion." Between 2007 and 2010, Besunyen had been warned, suspended or revoked in Beijing, Shanghai, Guangdong, Hunan, Liaoning, Jiangsu, Inner Mongolia and other places for infringement of portrait rights, exaggerated efficacy, and lack of approvals. , dealers also have many violations. In early 2012, Besunyen again caused controversy due to false propaganda and exaggerated product effects. However, Besunyen insists that all advertisements broadcast after the company's listing have approvals and are valid, so there are no violations.

According to the Besunyen prospectus, Beijing Outsell Health Products Development Co., Ltd. is the operating entity of Besunyen, and is also the parent company of the listed company Besunyen. According to information from the Beijing Municipal Bureau of Industry and Commerce, Beijing Outsell Health Products Development Co., Ltd. was incorporated on September 25, 2000, with a total investment of US$300,000 and a registered capital of US$300,000.

It is reported that the company had launched a slimming tea similar to Pitt students' pharmacology in the same year. After false publicity was highlighted at the CCTV “3·15” party, it disappeared afterwards. Moreover, Outsell has been losing money for 7 years since its establishment, and the first year of operation has generated 627,500 yuan of liabilities.

How far can we go? “The low cost of raw materials in the health care industry is a common phenomenon in the industry.” Yesterday, the relevant person in charge of Chongqing Watson Pharmaceutical Co., Ltd. told the “International Financial News” reporter to eliminate the direct consumption of raw material costs, a lot of advertising Investment costs and circulation costs also account for a large proportion of the cost. “Because there is a high price to have a price space to operate, companies can make profits and make money. Therefore, the large difference between cost and selling price has become the norm. However, it is difficult for the whole health care product market to change this type of profitability.”

The data shows that in 2010, the industrial scale of China's health food products exceeded 260 billion yuan. Although the share of health foods in the entire food industry is less than 5 trillion yuan, there has been steady growth and good development in recent years. situation. At the same time, China has also become an important source of raw materials for the healthcare (functional) food industry in the world and a country that has been commissioned to process pharmaceuticals. The China Health Care Association predicts that by the end of 2015, the output value of China's nutrition and health food products will reach 1 trillion yuan, an average annual increase of 20%.

While the health care product industry is ushering in the golden development period, the chronic diseases in the market cannot be ignored. According to a survey conducted by the China Consumers Association, 40% of respondents stated that they regularly take health supplements, and 75% of them purchased health supplements within the last six months. However, this data also shows that 30% of respondents have had the experience of buying health care products. At the same time, the survey showed that 87.5% of the people prefer false and exaggerated publicity.

“The health care products industry is generally characterized by low barriers to entry, low technology content, and disorderly market competition.” The above-mentioned person in charge told the reporter that the situation in the industry to overdraft for the sake of making quick money is widespread, and many companies only take health care. As a tool for phased profits, they are ready to flee the industry at any time. In this environment, as early as Besunyen, the focus on this area, and hope that the health care products companies cultivating deeper will look somewhat different, even under more pressure.

Recently, news about the forthcoming "Regulations on the Supervision and Administration of Health Food Products" once again caused a hot debate among health care products companies. The person in charge said that with the strengthening of supervision, this will play a positive role in boosting the quality and standardizing development of the health care products industry. As the powerful “giants” are strongly entering the market, competition in the health care products market will become increasingly fierce in the next five years.

“For the Pitt students who are now in crisis, the competitive pressure can be imagined. Whether it can make up for its shortcomings or not, and survive in the new round of challenges, it is still not clear to the end.” said the person in charge.