This Chinese medicine company changed owners to survive, and Sinopharm Zhaoxiang has taken over the voting rights

Recently, Zixin Pharmaceutical issued an announcement stating that the company’s controlling shareholder Dunhua Kangping Investment Co.
, Ltd.
and Sinopharm Zhaoxiang (Changchun) Pharmaceutical Co.
, Ltd.
(hereinafter referred to as "Sinopharm Zhaoxiang") signed a "voting entrustment agreement", and Sinopharm Zhaoxiang became The controlling shareholder of the company obtains control of the company
.
At the same time, after the three members of Kangping Investment signed the "Voting Rights Entrustment Agreement", they also entrusted the voting rights corresponding to 29.
5382%, 6.
3515%, and 24.
2603% of the total share capital of Kangping Investment to Sinopharm Zhaoxiang
.
So far, Sinopharm Zhaoxiang has also become the controlling shareholder of Kangping Investment
.
According to public information, Sinopharm Zhaoxiang is a wholly-owned subsidiary of Sinopharm Medicinal Materials Co.
, Ltd.
It is mainly engaged in the business of bulk commonly used Chinese medicinal materials, the import and export business of Chinese medicinal materials, the cultivation of Chinese medicinal materials, and the production of Chinese patent medicines
.
At present, it has formed a business pattern of coordinated development of the three pillars of medicinal materials trade, agency business, and Chinese patent medicine production
.
Zixin Pharmaceutical was established in May 1998.
Its core business is Chinese patent medicine industry, ginseng industry, gene sequencer industry, integrating production, sales, scientific research and development of high value-added medicinal plants and animals
.
Analysis believes that Zixin Pharmaceutical's change of controlling shareholder is mainly for survival
.
By introducing controlling shareholders with state-owned assets and industrial background, it will help them to effectively support listed companies in terms of capital and resources, optimize the company's shareholder structure, and reduce the level of company liabilities
.
It is understood that since 2017, Zixin Pharmaceutical's performance has been showing a cliff-like decline
.
From 2017 to 2020, Zixin Pharmaceutical's attributable net profit will be 372 million yuan, 174 million yuan, 70.
29 million yuan and -706 million yuan, respectively
.
According to the 2021 semi-annual report released a few days ago, the company's attributable net profit in the first three quarters is expected to lose 305 million to 350 million yuan, compared with a loss of 277 million yuan in the same period last year.
In comparison, the loss has further expanded compared with the same period last year..
In response to the continuous decline in the company’s net profit in recent years, Zixin Pharmaceutical mentioned in its reply to the inquiry letter from the Shenzhen Stock Exchange that it was mainly in the area of ​​proprietary Chinese medicines.
With the impact of a series of medical reform policies, market competition has continued to intensify.
Intensified, performance has declined; and under the influence of the epidemic, the company’s resumption of work has been delayed, and raw material procurement, product production, and product sales have been blocked
.
It is worth noting that in addition to the continued decline in operating performance, another important reason for the change of Zixin Pharmaceuticals is the debt crisis
.
It is reported that on August 7 this year, Zixin Pharmaceutical mentioned in the announcement that the total overdue debt of the company was approximately 2.
513 billion yuan, accounting for 67.
17% of the audited net assets of the recent period and 23.
91% of the total assets
.
In this context, although Zixin Pharmaceutical has a large stock of ginseng, it cannot help the current corporate crisis even if the inventory cannot be exhausted in a short period of time
.
In general, Zixin Pharmaceutical is currently facing a relatively difficult situation of funding, and the acquisition of Sinopharm Zhaoxiang will help Zixin Pharmaceutical to provide effective assistance in terms of capital and resources; in addition, there will be more Help its future layout and coordination in the field of Chinese medicine
.
But whether these goals can be achieved depends on the specific performance of Zixin Pharmaceutical in the future
.