The interests of Fengyuan PharmaceuticalS were damaged by the sale of the equity of Huishang Bank.

;.sale of the equity of Huishang Bank opened up a corner of Fengyuan Pharmaceuticals' problems.the IPO of Nanjing Bank and Ningbo Bank, which opened the door to the listing of the City Commercial Bank. Due to the "rich" effect of the huge increase in potential equity investment income, some city-side firms that are expected to be able to list in the future have doubled their value. At the same time, listed companies are taking a stake in the city commercial banks. For example, on June 29, Qingdao Jinwang (002094) announced that it would buy 20 million shares of Qingdao Commercial Bank for 52 million yuan, and on July 3, Hait High-tech (002023) said it would invest 39 million yuan to subscribe for 30 million shares of Guiyang Commercial Bank..However, in this context, on June 27, Fengyuan Pharmaceuticals (000153) issued an announcement that it would transfer its 34.95 million shares of Huiyuan Bank to the company's de facto controller, Anhui Fengyuan Group Co., Ltd. ("Fengyuan Group"), and only at a low price of 5% above net assets..sought-after stake was sold.June 29, 2007, Fengyuan Pharmaceuticals announced that the company's 2007 net profit will increase by more than 150% compared with the same period last year. Fengyuan Pharmaceutical shipping also showed that the company's net profit growth is not due to the company's main business, but the company's transfer of the holding of the huishang Bank shares to obtain a certain investment income..Fengyuan Pharmaceuticals holds a total of 34.95 million shares of Huishang Bank, the original investment cost is 25 million yuan, although the total amount of the transfer is 41.94 million yuan, the company can obtain investment income of 16.94 million yuan (before tax). However, by the end of 2006, Huishang Bank's net asset value per share was 1.14 yuan, while the value of the equity transfer was 1.20 yuan per share, a premium of only about 5% of the net assets. It is understood that, not long ago, the Bank of Beijing part of the equity auction was snapped up, the starting price of 4 yuan per share, the final transaction price of up to 10 yuan. Compared with Bank of Beijing and the upcoming Nanjing Bank and Ningbo Bank, Huishang Bank's asset quality and profitability are no less.. (NextPage).at the end of 2005, Huishang Bank in Hefei City Commercial Bank on the basis of the name change, absorbed Wuhu, Anqing, Maanshan, Huaibei, Wei 5 city commercial banks and six An, Copper Tombs, Huainan, Puyang four cities and set up, Huishang Bank is the first by a number of city commercial banks, urban credit unions combined and reorganized the establishment of regional joint-stock commercial banks..After the establishment of huicommercial bank, the scale of business has been steadily expanded, deposit and loan growth has been good, operating profit has increased significantly. According to local media in Anhui, as of the end of 2006, Huishang Bank's balance of deposits was 63.109 billion yuan, the balance of loans was 44.213 billion yuan, net assets of 3.152 billion yuan, the realization of operating profit of 936 million yuan, the size of the company's assets exceeded the Nanjing Bank and Ningbo Bank, operating efficiency in the domestic city commercial banks in the forefront..As of the end of 2006, huishang Bank's non-performing loan ratio was 2.32%, significantly better than the average of joint-stock commercial banks. Huishang Bank's capital adequacy ratio is 8.76%, although slightly lower than the level of Nanjing Bank and Ningbo Bank, but at present Huishang Bank has accelerated the pace of the introduction of strategic investors. At present, the company has reached an initial equity agreement with Chinese Life, in addition to Chinese Life, ABN Amro and other interested in the purchase of Huishang Bank, through the introduction of foreign capital and shareholder capital injection, Huishang Bank's capital adequacy ratio will be increased from 8.76% to more than 10%..it is understood that Huishang Bank plans to this year and next in Anhui Province in 17 cities have outlets, business outlets will gradually expand to more than 300, the size of assets will reach 100 billion yuan, and the current number of Nanjing Bank and Ningbo Bank outlets are only 60. It can be seen that the main operating indicators of Huishang Bank in the domestic city commercial banks are first-class..the current market has Huishang Bank waiting for the conditions to mature after the choice of the opportunity to list rumors. If Huishang Bank can be listed within three years, conservative estimate sized its share price will be more than 8 yuan, when Fengyuan Pharmaceuticals held 34.95 million shares of the intrinsic value of at least 280 million yuan, but now Fengyuan Pharmaceuticals will only transfer the part of the equity to the actual controller Fengyuan Group, which undoubtedly greatly infringes the interests of the company's small shareholders..of an unknown increase in receivables.In contrast to the sale of Huishang Bank shares at a low price to Fengyuan Group, at the end of 2006, Fengyuan Pharmaceuticals announced the acquisition of a 100% stake in Fengyuan Copper Ling Pharmaceutical Co., Ltd. ("Fengyuan Copper Tomb"), held by Fengyuan Group, for a price of 971.41 million yuan.. (NextPage).as of theassessment date, Fengyuan Copper Tomb's total audited assets were RMB44.7022 million, total liabilities amounted to RMB44.2804 million, net assets were only RMB42.17 million, and from January to October 2006, Fengyuan Copper Tomb lost RMB1.373 million. Such a loss-making company with a net asset of only 421,700 yuan, Fengyuan Pharmaceuticals' acquisition premium reached 22 times, in sharp contrast to the company's low-cost sale of the stake in Huishang Bank.. even more puzzling is that, as of the end of 2006, Fengyuan Copper Tomb in the form of accounts receivable occupied Fengyuan pharmaceutical funds of 677.64 million yuan, of which 5.6683 million yuan for the 2006 new occupation, occupation reason sourcing the purchase price. And strangely, according to Fengyuan Pharmaceutical Industry's annual report shows that in 2006 the company sold 484.47 million yuan of goods to Fengyuan Copper Tomb, since only 484.47 million yuan of goods sold, why the new occupancy of the purchase price of 5.6683 million yuan? . strange thing not only happened to Fengyuan Copper Tomb, as of the end of 2006, Fengyuan Group's holding subsidiary Anhui Fengyuan Pharmaceutical Management Co., Ltd. (hereinafter referred to as "Anhui Fengyuan") in the form of accounts receivable to occupy the listed company's funds of 14.6573 million yuan. According to Fengyuan Pharmaceutical Industry's annual report, in Anhui Fengyuan occupied the listed company's capital of 14.6573 million yuan, 797.11 million yuan is the new capital occupation in 2006, the occupation reason is also the purchase price, and in 2006 Fengyuan Pharmaceutical industry to Anhui Fengyuan sales of goods 681.29 million yuan, significantly lower than 797.11 million yuan of new receipts should be received. . Anhui Fengyuan and Fengyuan Copper Tombs on the abnormal capital occupation of listed companies is only the tip of the iceberg, as of the end of 2006, Fengyuan Pharmaceutical industry's total accounts receivable amounted to 217 million yuan, while the company's main business revenue for the year was only 521 million yuan. More worrying is that in Fengyuan Pharmaceutical's 217 million yuan accounts receivable, the accountage age of more than one year as high as 42%, of which the accountage age of more than three years as high as 4353.88 million yuan, part of the accounts receivable has been more than 4 years or more, and the company only accounted for 30% of the bad debt provisions, which for the company's future stability buried hidden dangers. . not only high accounts receivable, but also other receivables of Fengyuan Pharmaceuticals have also appeared abnormal. As at 30 September 2006, The net other receivables of Fengyuan Pharmaceuticals amounted to $40,982.1 million, while by the end of 2006, the Company's net other receivables had risen significantly to $147 million, while as at 31 March 2007, the Company's net other receivables were still $136 million. . (NextPage) . Although the amount of accounts receivable and other receivables is huge, but in the regular report of Fengyuan Pharmaceutical, but can not find the name of the main debtor, why the company's funds are a large outflow, who occupied the funds of listed companies, is still a mystery, Fengyuan pharmaceutical receivables of the abnormal situation is worrying. . fund-raising project "watering"? . selling high-quality assets at low prices and buying non-performing assets at a high price, Fengyuan Pharmaceuticals shareholders' meeting approved the company's targeted issuance of 100 million shares, expected to raise 400 million yuan for the "new annual production of 200 million bottles of plastic bottle infusion production line project" bill. According to Fengyuan Biochemical, the new annual production of 200 million bottles of plastic bottle infusion production line project is expected to invest a total of 405 million yuan, after full production, can add a net profit of 77.76 million yuan. . However, on June 26, 2007, Shuanghe Pharmaceuticals (600062) announced that the company intends to build a new annual production of 235 million bottles of plastic bottle infusion production line project, the project has a total investment of 350 million yuan. Also for the plastic bottle infusion production line project, the annual output of Fengnative is 35 million bottles lower than shuanghe Pharmaceuticals, but its total investment is more than 55 million yuan higher than Shuanghe Pharmaceuticals, Fengyuan Pharmaceutical stake investment is reasonable? . according to Shuanghe Pharmaceuticals, in addition to the new annual output of 235 million bottles of plastic bottle infusion production line project, the company will also build a new annual output of 200 million plastic bottle cap project and annual output of 30 million bags of non-PVC soft bag infusion production line project, Shuanghe Pharmaceuticals expected the cumulative net profit of three projects of about 80 million yuan, and Fengyuan biochemical a project's net profit forecast of 77.76 million yuan, the company in order to increase the success of the project? . the above concerns are not unfounded, Fengyuan Pharmaceuticals IPO raised a net fund of 453 million yuan, according to the company's prospectus shows that the fund-raising project after the completion of the net profit of 290 million yuan, but the reality is that in 2006 Fengyuan Pharmaceuticals after deducting non-recurring profit and loss net profit of only 1.743 million yuan, and in recent years the company's non-funded investment is still as high as 200 million yuan. sale of the stake in Huishang Bank opened up a corner of Fengyuan Pharmaceuticals' many problems the IPO of Nanjing Bank and Ningbo Bank, opened the opening of the listing of the city's commercial banks. Due to the "rich" effect of the huge increase in potential equity investment income, some city-side firms that are expected to be able to list in the future have doubled their value. At the same time, listed companies are taking a stake in the city commercial banks. For example, on June 29, Qingdao Jinwang (002094) announced that it would buy 20 million shares of Qingdao Commercial Bank for 52 million yuan, and on July 3, Hait High-tech (002023) said it would invest 39 million yuan to subscribe for 30 million shares of Guiyang Commercial Bank. . However, in this context, on June 27, Fengyuan Pharmaceuticals (000153) issued an announcement that it would transfer its 34.95 million shares of Huiyuan Bank to the company's de facto controller, Anhui Fengyuan Group Co., Ltd. ("Fengyuan Group"), and only at a low price of 5% above net assets. . sought-after stake was sold . June 29, 2007, Fengyuan Pharmaceuticals announced that the company's 2007 net profit will increase by more than 150% compared with the same period last year. Fengyuan Pharmaceutical shipping also showed that the company's net profit growth is not due to the company's main business, but the company's transfer of the holding of the huishang Bank shares to obtain a certain investment income. . Fengyuan Pharmaceuticals holds a total of 34.95 million shares of Huishang Bank, the original investment cost is 25 million yuan, although the total amount of the transfer is 41.94 million yuan, the company can obtain investment income of 16.94 million yuan (before tax). However, by the end of 2006, Huishang Bank's net asset value per share was 1.14 yuan, while the value of the equity transfer was 1.20 yuan per share, a premium of only about 5% of the net assets. It is understood that, not long ago, the Bank of Beijing part of the equity auction was snapped up, the starting price of 4 yuan per share, the final transaction price of up to 10 yuan. Compared with Bank of Beijing and the upcoming Nanjing Bank and Ningbo Bank, Huishang Bank's asset quality and profitability are no less. . (NextPage) . at the end of 2005, Huishang Bank in Hefei City Commercial Bank on the basis of the name change, absorbed Wuhu, Anqing, Maanshan, Huaibei, Wei 5 city commercial banks and six An, Copper Tombs, Huainan, Puyang four cities and set up, Huishang Bank is the first by a number of city commercial banks, urban credit unions combined and reorganized the establishment of regional joint-stock commercial banks. . After the establishment of huicommercial bank , the scale of business has been steadily expanded, deposit and loan growth has been good, operating profit has increased significantly. According to local media in Anhui, as of the end of 2006, Huishang Bank's balance of deposits was 63.109 billion yuan, the balance of loans was 44.213 billion yuan, net assets of 3.152 billion yuan, the realization of operating profit of 936 million yuan, the size of the company's assets exceeded the Nanjing Bank and Ningbo Bank, operating efficiency in the domestic city commercial banks in the forefront. . As of the end of 2006, huishang Bank's non-performing loan ratio was 2.32%, significantly better than the average of joint-stock commercial banks. Huishang Bank's capital adequacy ratio is 8.76%, although slightly lower than the level of Nanjing Bank and Ningbo Bank, but at present Huishang Bank has accelerated the pace of the introduction of strategic investors. At present, the company has reached an initial equity agreement with Chinese Life, in addition to Chinese Life, ABN Amro and other interested in taking a stake in Huishang Bank, through the introduction of foreign.