Following the concept of classical swine fever vaccine, Haiyin shares rose for two consecutive trading days. Nevertheless, the aforementioned issues caused a great disturbance. On the afternoon of June 12, the Agricultural and Rural Department of Hainan Province dispelled rumors and denied that the African swine fever vaccine had been successfully developed. On June 13, Shenzhen Stock Exchange sent an inquiry letter to Haiyin Stock Exchange.
In response, Shen Meng, executive director of Xiangsong Capital, told Securities Daily that the Hainan Agricultural and Rural Department was cautious in its wording in response to the prevention and control of swine fever. Listed companies are suspected of being hot spots. Investors should pay attention to risks.
On June 12, Haiyin announced that the company intends to sign a cooperation contract with (Party B) Xu Qitai and Jinzhu (Party C) to invest in natural medicine and support the prevention and treatment of African swine fever, involving about RMB 900 million yuan. After the signing of the agreement, the company intends to provide 100 million yuan as performance bond for Xu Qitai and his research team in accordance with the contract agreement, and has the right to acquire 30% of the shares of Jinzhu Company by cash payment and non-public issuance of shares before 30 June 2020.
It is worth mentioning that the announcement and business registration information show that the registered capital of Jinzhu Company is 10 million yuan. Professor Xu Qitai and his team launched the establishment of Jinzhu Polysaccharide Injection Patent Industrialization on May 24, 2019. The address of the enterprise is Room 3122, Mingguang Shengyi Hotel, Nanhai Avenue, Haikou City. Shareholder license is the actual controller of Jinzhu Company, holding 50% equity of Jinzhu Company, and shareholder Chen Yuluan holding 50% equity of Jinzhu Company.
Today, the Pearl Company has been established for less than one month, and the address of the company is hotel room. In this regard, Shenzhen Stock Exchange asked the company to explain the due diligence of Jinzhu Company, whether the investment of Jinzhu Company is in place, and to analyze whether there are abnormal situations. Jinzhu Company was founded by Xu Qitai and his team, but Xu Qitai did not hold the equity of Jinzhu Company. It supplemented and disclosed the license of shareholders and actual controllers of Jinzhu Company, the relationship between another shareholder, Chen Yuluan, and Professor Xu Qitai and his team, and explained whether there were other relevant agreements or arrangements between the above parties.
Industrialization Attracts Attention
Xu Qitai undertakes to complete the registration and filing of the Pearl Polysaccharide Injection. Xu Qitai promises to obtain temporary permission from the government authorities for the production and sale of the Pearl Polysaccharide Injection by 30 June 2019 and formal permission from the government authorities for the production and sale of the Pearl Polysaccharide Injection by 31 October 2019.
According to Haiyin Co., Ltd., after paying the performance bond in accordance with this agreement, the company will take the lead in recruiting the management team and the management team will enjoy full authorization from Party C and set up 10% option to the management team. According to the forecast business income of 500 million yuan, 5 billion yuan and 10 billion yuan from 2019 to 2021, the net profit of 200 million yuan, 1 billion yuan and 2 billion yuan will be determined by the management team and the company. All shareholders sign the performance betting agreement of Jinzhu Company. If the three-year performance is completed, the management team can obtain 10% equity through exercise.
In this regard, Shenzhen Stock Exchange requires listed companies to disclose the main time course of the development of Pearl polysaccharide injection, the specific stage of research and development or test at present, and to compare the research and development cycle of related natural drugs or vaccine products, to analyze the rationality of the research and development cycle of Pearl polysaccharide injection and whether it has the conditions for industrialization.
The annual report of Haiyin shares in 2018 shows that during the reporting period, the company continued to engage in commercial property operations, financial services and other businesses.
It is worth mentioning that the Pre-Disclosure Notice on Shareholder Reduction Plan for Over 5% Shareholders disclosed on April 29 shows that Shao Jianchong, one of the shareholders and actual controllers of the company, plans to reduce his shareholding by centralized bidding within 6 months after 15 trading days from the date of the announcement, which does not exceed 2% of the companys total equity.
Without further clarification, Haiyins share price continued to rise. On June 12, the companys share price went up and down. On June 13, the companys share price also went up and down.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425