Zixin Pharmaceuticals inventory of 6.1 billion yuan accounted for nearly 60% of total assets, performance decline of controlling shareholders during the year four passive reduction

On November 7, Zixin Pharmaceuticals announced that the company's controlling shareholder, Dunhua Kangping Investment Liability Co., Ltd(hereinafter referred to as "Kangping Company") and its co-acting agents Zhong Weiguang and Zhong Guilan, intend to passively reduce their holdings of the Company by no more than 76.8456 million shares (6% of the company's total share capital)Changjiang Business Daily reporter found that this is the fourth time this year Kangping company for the same reason to encounter passive reduction, and this pledge-type buyback transaction needs to be traced back to 2017May 23, 2017, Zixin Pharmaceuticals disclosed that the controlling shareholder Kangping Company has on the 19th its holding of 20 million shares of the company and DongWu Securities stock pledge repurchase transactions, and reporters found that on May 17, Kangping company has just completed a 20 million shares of pledge-type repurchase transactionsMay 2018, Kangping bought back 1.5 million pledged shares in the above-mentioned transactions, and said it would defer the remaining shares with the stock pledge-type repurchaseHowever, as of this passive reduction announcement disclosed, did not query Kangping company on the repurchase of shares related actionsin addition, Kangping And its co-acting persons Zhong Weiguang and Zhong Guilan currently hold a total of 600 million shares of the company, are in a pledge stateand in addition to the passive reduction of controlling shareholders, Zixin Pharmaceuticals is the most notable is the company's accounts receivable and high inventory problemsdata show that after the listing in 2007, Zixin Pharmaceutical's performance in the first five years of listing has been stable growth, starting in 2012, the company's performance continued to declineChangjiang Business Daily reporter found that Zixin pharmaceutical inventory problems as early as 2011 has been reflectedin 2011, as Zixin Pharmaceuticals increased its raw material reserves for investment projects, the company's inventory jumped from 173 million yuan the previous year to 851 million yuan, an increase of 391.91 percent year-on-year, and the share of total assets in the same period also increased to 30.51 percentSince then, Zixin Pharmaceutical's inventory has increased significantlydata show that in 2012-2015, the company's inventory was RMB1,416 million, RMB1,826 million, RMB1,963 million and RMB2,083 million, respectively, accounting for 46.50%, 48.33%, 48.44% and 41.68% of total assets in the same period2016 and 2017, Zixin Pharmaceuticals' performance briefly rebounded, but the inventory problem did not abateThe company's results fell again in 2018, and inventory problems grewin the first three quarters of 2016-2019, the Company's net profit reached RMB163 million, RMB372, RMB174 million and RMB73.718 million, respectively, an increase of 312.12%, 127.73%, -53.15% and -77.72% YoY, respectively, and this year's decline in performance has expanded , while the company's inventory continued to climb, to 2,673 million yuan, 4,833 million yuan, 6.109 billion yuan and 6.120 billion yuan, respectively, the total assets in the same period also expanded to 40.30%, 54.43%, 61.59%, 57.16% at the same time, , Zixin Pharmaceuticals' accounts receivable are also increasing From 2016 to the end of the third quarter of this year, the Company's accounts receivable amounted to RMB617 million, RMB744 million, RMB 921 million and RMB1,231 million, respectively, accounting for 9.30%, 8.38%, 9.28% and 11.50% of total assets, respectively calculated according to this calculation, as of the end of the third quarter of this year, inventory and accounts receivable alone amounted to 7.351 billion yuan, accounting for nearly 70% of Zixin Pharmaceutical's total assets.