How to punish Kangmei by using listed companies as cash machines is a touchstone

category:Finance
 How to punish Kangmei by using listed companies as cash machines is a touchstone


Kangmei Pharmaceutical Co., Ltd. is a leading Chinese medicine industry with Chinese herbal pieces as its core, which is laid out from the whole industrial chain of production, circulation, sales and trade. The market has long questioned its financial problems, such as financial reports showing that the company has a lot of money, but also a lot of short-term borrowing. Its hard to understand that theres a lot of cash in hand and a lot of interest on borrowing money. It is only now known that money funds are fake and inventory is classified as money funds.

Historically, besides debt financing, Kangmei Pharmaceutical has increased several times. In 2016, the net cash flow of financing activities reached 11.8 billion yuan. But after the money, the project landed slowly, and the market questioned its financing enclosure. For example, in November 2013, Kangmei Pharmaceutical Co. intends to invest 3 billion yuan in the construction of China-ASEAN Kangmei Yulin Traditional Chinese Medicine (spices) trading center and modern logistics warehousing project, which will only invest 33.05 million yuan by the end of 2018. Now the market finally knows that a lot of the money has been transferred to affiliated accounts to speculate in their stocks.

Kangmeis overstock has also been questioned by the market. The expendable biological assets in stock are mainly panax ginseng under the forest. That is to say, the seeds of ginseng are artificially dispersed into mixed coniferous and broad-leaved forests and grow naturally for 10 to 20 years. However, the growth of Panax ginseng under the forest is very vulnerable to the influence of nature. Rainfall, insect pests, small animal damage and so on can cause yield reduction, which is more than 90%. When Kangmei began planting ginseng under forest in 2014, the price of ginseng was at an all-time high, and it has been falling since then. And Kangmei Pharmaceutical did not raise or lower the price of these assets, but increased the value of these assets.

If the above problems can be understood as too radical speculation in business, some more profound problems are being revealed after Kangmei Pharmaceuticals counterfeiting was detonated.

On June 5, ST Comex announced in reply to the inquiry letter from the Shanghai Stock Exchange that only one billion yuan of money remained on its books, while the debts due in one year (up to December 31, 2019) amounted to 18.327 billion yuan, including 11.577 billion yuan of bank loans and 6.75 billion yuan of debt financing instruments (6 billion yuan have been paid on schedule).

The short-term liquidity of the company is tight and the pressure of repayment is high. The company will raise funds and repay them through various ways. Due to the measures of disposing of non-core business, strengthening business repayment, accelerating inventory sale and financing through various channels, there are multiple factors in the implementation process, and there are certain uncertainties in the final fund-raising, which reminds investors to pay attention to the investment risk.

That is to say, 280,000 investors should be aware that the company may not be able to pay its debts.

How will the fate of the Ma Xingtian family, the majority shareholder and actual controller of ST Kangmei, make the listed companies suffer a lot?

According to the first quarter of 2019 financial report, the largest shareholder of Kangmei Pharmaceutical Industry is Kangmei Industry, with a share-holding ratio of 32.83%. The largest shareholders of Kangmei Pharmaceutical Industry are Mrs. Ma Xingtian Xu Dongjin (1.97%), Puning Jinxin Pawnshop Co., Ltd (1.87%) owned by 100% of Ma Xingtian, Puning International Information Consulting Service Co., Ltd (1.87%) controlled by Xu Dongjin and Xu Dongjins. Associate Xu Yanjun (1.47%). Changzhou Yanze Yonghui Investment Center, the fifth largest shareholder, is related to Xu Dongjin and Xu Yanjun.

Ma Xingtian holds 99.68% of Kangmeis shares. Of the 1.633 billion shares in Kangmei Pharmaceutical, 1.629 billion shares are pledged, accounting for more than 99%. For example, in March 2018, Kangmei Industrial announced that it would pledge 80 million shares to Guangfa Securities for the period from March 1, 2018 to February 25, 2021. The warning line for this pledge is set at 15.66 yuan per share and the closing line is set at 13.57 yuan per share.

According to the media survey, Xu Dongjins share pledge ratio also reached 96.84%, and the shares of the eighth to tenth shareholders have basically been pledged.

That is to say, almost all the shares of Ma Xingtian and Xu Dongjin families have been pledged, and they are basically under the liquidation line. In fact, Kangmei Pharmaceutical has nothing to do with the family in terms of equity.

But will it break the familys fortunes?

Lets see a news: On June 5, Chenggong District of Kunming City successfully sold 18 pieces of land with a total area of 614 mu, which was picked up by Kunming Yukangmei Real Estate Co., Ltd. with a total transaction price of 4.03 billion yuan and a premium rate of 59.3%. Ma Xingtian controls the territory of Kangmei Real Estate to build Kangmei Healthy City.

ST Kangmei is dead or alive and Ma Xingtian has little to do with it. He relies on the funds taken from the pledge of Kangmei Pharmaceutical Equity, and has been demolished and turned into a new battlefield.

In the history of Chinas securities market, large shareholders directly occupied or transferred resources of listed companies, including unfair related party transactions, capital occupation, profit manipulation, etc. It is not uncommon to regard listed companies as their own ATM and arbitrarily plunder the funds of listed companies. For example, large shareholders and subsidiaries default and occupy the funds of listed companies; large shareholders take the operating assets of listed companies as collateral and spend them on nominal loans of listed companies; large shareholders and listed companies are not separated in terms of personnel, finance and assets; large shareholders through the release of pies such as high delivery and transfer, cheat small and medium investors to become panzers. Later large-scale reduction or even liquidation; large shareholders make pre-increase plans, and then say calculation errors after pushing up the market reduction; large shareholders with high premium mergers and acquisitions and their own existence of related-party transactions of the target, to carry out profit transmission... However, like the Ma Xingtian family, it is still too sensational to ignore small and medium-sized investors while making the listed companies worse off than death, and at the same time being able to fertilize themselves around. If the SFC fails to make significant breakthroughs in the punishment mechanism, and let the major shareholders reach out, reach out and be caught and be caught, they will ruin their property, then such opportunistic incidents will happen again and again. The event of Kangmei Pharmaceutical and its major shareholders will be a touchstone for the stock market to practice fairness and justice. Source: First Financial Responsibility Editor: Yang Bin_NF4368

In the history of Chinas securities market, large shareholders directly occupied or transferred resources of listed companies, including unfair related party transactions, capital occupation, profit manipulation, etc. It is not uncommon to regard listed companies as their own ATM and arbitrarily plunder the funds of listed companies. For example, large shareholders and subsidiaries default and occupy the funds of listed companies; large shareholders take the operating assets of listed companies as collateral and spend them on nominal loans of listed companies; large shareholders and listed companies are not separated in terms of personnel, finance and assets; large shareholders through the release of pies such as high delivery and transfer, cheat small and medium investors to become panzers. Later large-scale reduction or even liquidation; large shareholders make pre-increase plans, and then say calculation errors after pushing up the market reduction; large shareholders with high premium mergers and acquisitions and their own existence of related-party transactions of the target, to carry out profit transmission...

However, like the Ma Xingtian family, it is still too sensational to ignore small and medium-sized investors while making the listed companies worse off than death, and at the same time being able to fertilize themselves around.

If the SFC fails to make significant breakthroughs in the punishment mechanism, and let the major shareholders reach out, reach out and be caught and be caught, they will ruin their property, then such opportunistic incidents will happen again and again.

The event of Kangmei Pharmaceutical and its major shareholders will be a touchstone for the stock market to practice fairness and justice.