Controlling shareholders shares were frozen eight times in the year and the control right of Tianmu Pharmaceutical Industry was suspected

category:Finance
 Controlling shareholders shares were frozen eight times in the year and the control right of Tianmu Pharmaceutical Industry was suspected


A seemingly ordinary announcement, however, is surprising. This is the eighth announcement issued by Tianmu Pharmaceutical Company this year that the holding shares of controlling shareholders have been frozen by judicial rotation.

Eight freezes

Just on August 7, Tianmu Pharmaceutical announced that 29.988.2 million shares held by its controlling shareholder, Great Wall Group, were frozen on a waiting basis, accounting for 24.63% of the companys total equity.

Up to the announcement day, Great Wall Group directly held 33.18 million shares of the company, accounting for 27.25% of the companys total equity; the number of shares frozen by the judiciary was 30.18 million shares, accounting for 24.78% of the companys total equity, accounting for 90.96% of the companys total direct holdings. This time, 29.99 million shares were frozen on a waiting basis, accounting for 24.63% of the companys total equity and 90.38% of the companys total direct holdings. Great Wall Holdings has frozen 420 million shares on standby.

It is worth noting that this is the eighth freezing announcement issued by Tianmu Pharmaceutical Industry this year.

After three leaders, Zhang Pengfei, Song Xiaoming and Yang Zongchang, in January 2016, Tianmu Pharmaceutical Industry welcomed the entrance of the Great Wall Group, and Zhao Ruiyong was the actual controller of Tianmu Pharmaceutical Industry. However, in March 2017, Tianmu Pharmaceutical Industry was raised four times by Qingdao Huilong Huaze Investment Co., Ltd. (hereinafter referred to as Huilong Huaze), thus, listed companies began to compete for controlling rights.

However, in September last year, Great Wall Group implemented the introduction of strategic investment plan and reached a cooperative intention with Qingdao Global Wealth Center, the sole shareholder of Huilong Huaze, to exchange actual control rights of Tianmu Pharmaceutical Industry with 1.35 billion funds. But Tianmu Pharmaceutical did not disclose it until January this year, when both sides were involved in the lawsuit, the plot to sell shells was exposed.

Nowadays, its not that the Great Wall Group cant conceive of the control of Tianmu Pharmaceutical Industry, after all, its shares have been frozen eight times. So long frozen, how long can the control of Tianmu Pharmaceutical Industry of Great Wall Group be maintained?

Who will decide the future?

Tianmu Pharmaceutical Co., Ltd. was founded in 1958 as the National Pharmacy of Tianmushan Peoples Commune. In 1993, Tianmu Pharmaceutical Co., Ltd. was listed on the Shanghai Stock Exchange and became the first listed company of Chinese traditional medicine preparations in China. At present, the companys main business is the sale of drugs and related health products, the main products are menthol, Heche Dajiao capsules, pearl eye drops and so on.

Since the Great Wall Group took over Tianmu Pharmaceutical, the battle for control has never ceased. At the same time, the companys performance is difficult to say optimistic. The data show that its revenue from 2016 to 2018 is 124 million yuan, 176 million yuan and 358 million yuan respectively, and its net profit is 12.172 million yuan, 81.416 million yuan and - 88.817 million yuan respectively, while its non-net profit is deducted for three consecutive years, with losses of - 0.14 billion yuan, - 0.115 billion yuan and - 0.266 billion yuan respectively. In addition, Tianmu Pharmaceutical Companys three-year debt ratio is about 80%, 78.39%, 77.46% and 80.27% respectively.

In the first quarter of 2019, Tianmu Pharmaceuticals business income was 75.71 million yuan, 16.23% less than the same period of last year, with a net profit loss of 1.87 million yuan and a non-net profit loss of 3.3 million yuan. It is also anticipated that the cumulative net profit from the beginning of this year to the end of the next reporting period may be a loss due to the significant decrease in non-recurrent earnings over the same period of last year. In this way, Tianmu Pharmaceutical Industry has only maintained a state of big loss and small profit in the years under the control of Great Wall Group.

Especially since this year, Tianmu Pharmaceutical has said the most to the outside world: If the controlling shareholder of Great Wall Group is frozen on a waiting basis by judicial disposal of the companys shares, it may lead to changes in the actual control rights of the company.

Great Wall Group in response to the inquiry notice mentioned that in recent years is in a period of sustained expansion and development, affected by the major environmental impact, the current stage of debt pressure. At the same time, the asset portfolio of listed companies and listed companies under the Great Wall Group through M&A and restructuring will also be the key target of optimizing the asset-liability structure. Great Wall Group does not exclude continuing to screen high-quality investors who are conducive to solving the short-term financial difficulties of Great Wall Group and the sustainable development of listed companies. On the basis of actively handling the creditors rights, debts and lifting the stock freeze of Tianmu Pharmaceutical Industry, it chooses the opportunity to transfer the actual control of Tianmu Pharmaceutical Industry to the outside world.

In this way, what is the future of Tianmu Pharmaceutical Industry? Its control will fall in whose hands, become suspense.

Source: Responsible Editor of Investor Network: Han Yukun_NBJ11142