Haoyuan pharmaceutical science and technology innovation Puzzle: two major suppliers do not have production capacity

category:Finance
 Haoyuan pharmaceutical science and technology innovation Puzzle: two major suppliers do not have production capacity


There are two buildings under construction outside the headquarters building of Haoyuan medicine. According to local workers, the two buildings will be used by Haoyuan medicine after completion.

No. 2, Lane 720, Cailun Road, not far from here, is the location of more early laboratory of Haoyuan medicine. On June 16, when 21st century economic report visited, there were still many administrative, R & D, production and other people working here.

Local staff told reporters that at present, the companys business is developing normally. After the completion of the new office building on zhangheng Road, the laboratory at the site will be moved to the new building as a whole.

This is just a corner of Haoyuan pharmaceuticals R & D base.

The 21st century economic report reporter learned that the R & D center of Haoyuan pharmaceutical in Ningma science and Technology Innovation Park, Maanshan City, Anhui Province, has also been completed. According to the staff in the building, the R & D center began to officially start construction not long ago.

One perspective is financial report. The total revenue of Haoyuan medicine has increased rapidly from 174 million yuan in 2017 annual report to 409 million yuan in 2019, and the net profit has increased from 15.069 million yuan to 73.4296 million yuan.

The suppliers who have not yet formally performed their business contracts, the subsidiaries that sell at a low price and buy back at a high price, the main businesses that hide from others, the product lines with a wide range of but sparse patents, and the trading companies that cover the coat of science and innovation

These fragments make the science and technology innovation face of Haoyuan medicine gradually blurred.

Two suppliers do not have production capacity

The 21st century economic report reporter sampled two of the top five suppliers of Haoyuan pharmaceutical, and conducted field investigation. It is understood that the two suppliers do not have the production capacity of trading products, and the delivery of assets and goods has yet to be determined.

In the prospectus, Haoyuan pharmaceutical points out frankly that the company has not completed the large-scale construction of its own production plant, and the large-scale production of some products is mainly completed through outsourcing.

However, behind a large number of outsourcing orders, the companys supplier group has many doubts that cannot be justified.

According to the reporters on-the-spot investigation, Anhui shite has not officially developed its business, but Haoyuan pharmaceutical said in the prospectus that the order with Anhui shite has been fulfilled.

According to qixinbao data, Anhui shite was founded on September 2, 2019 with a registered capital of 5 million yuan, and its registered address is building 3, No. 1669, north section of huolishan Avenue, Cihu high tech Zone, Maanshan City, Anhui Province, while the registered address of Anhui Leyan Biomedical Technology Co., Ltd., a wholly-owned subsidiary of Haoyuan pharmaceutical, is also building 3, No. 1669, north section of huolishan Avenue, Cihu high tech Zone, Maanshan City, Anhui Province.

Anhui Haoyuan Pharmaceutical Co., Ltd. (hereinafter referred to as Anhui Haoyuan), a wholly-owned subsidiary of Haoyuan pharmaceutical, has its registered address at building 2, No. 1669, north section of huolishan Avenue, Cihu high tech Zone, Maanshan City, Anhui Province, which is adjacent to the residences of the former two companies.

But then, the reporter learned from the staff of Anhui Haoyuan that the actual office address of Anhui shite is located 2 kilometers away in Ningma science and technology innovation park of Cihu high tech Zone.

The security guard of the park told reporters that Anhui shite is located on the third floor of Building 2 of the park, but the move time is not long. Cement and other decoration materials can be seen near the building.

On June 15, an authoritative person in charge of Anhui shite said: we (Anhui shite) only registered last year, there was an epidemic in the middle, and all the progress was slow. In July, we should set up personnel to enter the site for experiments. There are only a few accounts left, but the specific work has not yet started. Because of the epidemic situation and the recent busy schedule, there is no one on the other side of Maanshan. It should be started in July.

In fact, shell suppliers similar to Anhui shite are not unique in the prospectus of Haoyuan pharmaceutical.

Hangzhou Lingyun Pharmaceutical Technology Co., Ltd. (hereinafter referred to as Lingyun pharmaceutical) was founded in January 2018, which received a large order of 11.1446 million yuan from Haoyuan pharmaceutical in the year of establishment (2018), ranking the second largest supplier, and signed an order of 6.6685 million yuan with Haoyuan in January 2019.

On June 17, a field visit by 21st century economic reporter found that Lingyun pharmaceutical is located in jiuwenchuangyuan, Binjiang District, Hangzhou, but the office space is less than 40 square meters, and there are only two desks in the room. One staff member confirmed that the company is engaged in intermediate business, but mainly doing trade and buying raw materials and selling them to the next family.

Main performance, supply and marketing list, number of patents immortal fight

According to its pre disclosure, Haoyuan pharmaceutical is mainly engaged in two types of products: molecular blocks and tool compounds (drug development front-end) and APIs and intermediates (drug development back-end).

From the data point of view, molecular blocks and tool compounds are not allowed to occupy the C position.

In 2017-2019, the companys operating revenue of molecular block and tool compound business was 81.2549 million yuan, 151 million yuan and 236 million yuan respectively, accounting for 46.71%, 50.41% and 58.49% of the revenue respectively; the operating revenue of API and intermediate business was 92.7096 million yuan, 148 million yuan and 167 million yuan, accounting for 53.29%, 49.59% and 41.51% of the revenue respectively.

Molecular block and tool compound contributed nearly 60% of the income, and the proportion increased year by year in the past three years, while the proportion of API and intermediate income decreased year by year in the past three years.

In terms of gross profit rate, the gross profit rate of molecular block and tool compound is as high as 70%, 67.71%, 68.29% and 70.70% respectively in 2017-2019, increasing year by year in the last three years; the gross profit rate of API and intermediate body is about 30%, 38.44%, 34.78% and 38.83% respectively in 2017-2019.

But it should be noted that molecular block and tool compound are not an industry.

Molecular block, located at the front end, is a small molecular compound used to design and construct drug active substances for R & D, and is one of the important materials for R & D. At present, Yaoshi technology, the leading enterprise of A-share molecular block, has developed and synthesized nearly 2000 distinctive molecular blocks in 2019, with a gross margin of about 51.59%.

Tool compounds are small molecules with certain biological or pharmacological activities located at the back end of molecular block in the synthesis path. The average gross profit margin of Haoyuan pharmaceuticals molecular block and tool compound business is in the range of 67% - 70%, while the comprehensive gross profit margin of chemical stone technology molecular block in recent three years is 51% - 62%. Therefore, it can be estimated that the gross profit margin of tool compound is more than 60%, which is higher than that of molecular block.

Intermediates and APIs are in the later stage, mainly used in clinical research, listed drugs, generic drugs and other later stages, with a relatively lower gross margin. The gross margin of intermediates and chemical APIs of listed companies such as Jiuzhou pharmaceutical industry is about 30% - 40%, and the gross margin of Haoyuan pharmaceuticals business is also within this level.

But according to the above data, if we calculate that the tool compound is the main business of Haoyuan medicine, we will fall into another strange circle.

The 21st century economic news reporter looked up the research and found that the molecular block and tool compound were included in one category description in Haoyuan pharmaceutical recruitment manual, without detailed disclosure of the name of the main products, their respective costs and profits. And in the information disclosure, investors can not obtain the relevant operation data of the main business accounting for more than 50%.

On June 19, the 21st century economic reporter sent an interview letter to Haoyuan pharmaceutical on relevant issues, but no reply had been received as of the time of publication.

According to the disclosure of Haoyuan pharmaceutical, the top ten products with stable sales volume from 2017 to 2019 are intermediates and APIs.

This also means that the sales of molecular block and tool compound business accounting for more than 50% of the companys total revenue are very scattered. Even in 2019, when the revenue scale is the highest (223 million yuan), none of the terminal customers of Haoyuan pharmaceutical molecular block and tool compound business has a purchase volume of more than 12 million yuan. In 2017, none of the end customers of molecular block and tool compound business purchased more than 6.54 million yuan.

In the disclosure of production and marketing information, we mainly disclose the production and marketing of APIs and intermediates. We are stingy about molecular blocks and tool compounds, especially tool compounds.

Data shows that among the main products of Haoyuan medicine in 2019, the adiosterol intermediate ADA with the lowest sales revenue only sold 650 grams in 2019.

This brings about a strange phenomenon. On the one hand, based on molecular block and tool compound, Haoyuan pharmaceutical can build a science and technology innovation enterprise, but it takes API and intermediate as the core to describe the industrial operation.

This is related to the dispersion of industrial chain of molecular block and tool compound. Investment bankers also pointed out that.

However, it also admitted that IPO companies should actively disclose the names of major products, their respective costs and profits based on information disclosure standards.

It is worth noting that as of April 30, 2020, Haoyuan pharmaceutical and its subsidiaries have been granted 53 patents, including only 9 patents involving molecular blocks and tool compounds, and 40 copyrights.

Every tool compound has a patent, and every tool compounds synthesis method has a corresponding patent. The industry insiders pointed out to the 21st century economic reporter.

If by analogy, even if the 9 patents all correspond to one tool compound, the tool compounds developed and produced by Haoyuan pharmaceutical will not exceed 9. However, according to the official website of Haoyuan medicine, there are more than 10000 kinds of small molecules with biological or pharmacological activities in the ready to use compound library.

It is not clear whether the tool compound product types of Haoyuan medicine are all expired patents.

It is worth mentioning that the patent right of this product has not been opened yet.

There are no listed companies whose main business is tool compound in A-share market.

According to the 21st century economic report, many abnormal behaviors between Haoyuan pharmaceutical suppliers and customers are consistent with the imbalance of different financial indicators. At present, there is only one employee of medcheme express LLC, a former major customer, whose registered address is in a residential building.

According to the content of the prospectus, the overseas sales proportion of Haoyuan pharmaceutical in 2017-2019 is 38.23%, 41.40% and 41.46% respectively. The rest of the products are sold to overseas terminal customers through domestic distributors, and the real terminal demand is still overseas. Based on the income penetration calculation of domestic distributors selling to overseas terminal customers, the overseas sales proportion of the company will be increased to 60% left Right.

Therefore, the companys main market is overseas, with the terminal demand as the judgment standard.

As a whole, the customers of Haoyuan pharmaceutical are relatively scattered. The total purchase volume of the top five customers in 2017-2019 is not more than 34%. The total sales amount of the top five customers in the latest year is less than 87.29 million yuan, and the top five customers will change greatly every year.

One of the key gentlemen is medcheme express LLC.

In 2016 and 2017, the first largest customer of Haoyuan pharmaceutical was occupied by the company named medchemexpress LLC, which purchased 14.237 million yuan and 27.4147 million yuan from Haoyuan pharmaceutical for two consecutive years.

In January 2018, Hong Kong Haoyuan, a subsidiary of Haoyuan pharmaceutical, acquired 100% equity of medchemexpress llc100 jointly held by Zhonggao and her daughter with us $600000 in cash.

21st century economic reporter noted that as early as 2013 or even earlier, Haoyuan pharmaceutical had obtained many trademarks and Internet domain names related to MCE and medchemexpress.

In December 2017, Hong Kong Haoyuan also transferred chemcenelimitedlimitabilitycompany (hereinafter referred to as CS company) held by Zhonggao at a price of US $200000.

CS company was also one of Haoyuans important customers.

The official explained that these two acquisitions are conducive to the development of Haoyuan pharmaceutical international market, especially the U.S. market, can further enhance its core advantages and comprehensive competitiveness, and have a positive impact on the realization of the companys strategic objectives and long-term development.

Coincidentally, it was just after the acquisition that Haoyuan pharmaceutical entered the period of rapid progress in performance.

The sales mode of Haoyuan pharmaceutical is tob, medchemexpress LLC and chemcenelimitedlimitability company, which are channel enterprises. In the food chain, the channel is the king.

According to the sales volume of only Haoyuan pharmaceutical project of medchemexpress LLC, the purchase volume is 27.4147 million yuan, and the sales revenue may be more than 600000 dollars.

Google maps and redfin website show that 18 Wilkinson way is a local single family residential building, which was completed in 1993. The most recent public transaction record was on August 25, 2010. In 2019, there are tax payment and transaction records, with tax of 14398 US dollars and valuation of 6.74-7.45 million US dollars.

If the acquisition is only to avoid related party transactions, Zhonggao and her daughter sell the companys shell and historical flow at a low price, while relying on other legal persons to develop their business, which is in line with the situation of low price transactions.

However, from the subsequent financial report data disclosed by Haoyuan pharmaceutical, it is obvious that the father of party a zhionggao can no longer be found.

But if Zhonggao and his daughter sell off the company all over the world, in the transaction of medchemexpress LLC and chemcenelimitedlimitability company, the contrast between the transaction price and the valuation is ten times, which obviously suffers a big loss.

After the sale of subsidiaries, the value of capital increase is 380 times longer

A series of sales and buybacks of Gansu Haotian Chemical Technology Co., Ltd. (hereinafter referred to as Gansu Haotian), a subsidiary of Haoyuan pharmaceutical, have puzzled many market participants.

The 21st century economic report reporter learned from Haoyuan pharmaceutical sales department that Haoyuan pharmaceutical and Gansu Haotian were indeed the same company before, but at present, the two companies are totally different individuals with different factories and R & D teams. The two companies have always had certain business contacts, Gansu Haotian will also supply according to the needs of Haoyuan medicine.

Before Haoyuan pharmaceutical was listed on the new third board, Haoyuan pharmaceutical originally held 83% of the equity of Gansu Haotian and was the controlling shareholder of Gansu Haotian; meanwhile, Xue Jijun, as the founder of Haoyuan pharmaceutical, held 13% of the equity of Haoyuan pharmaceutical since its establishment in 2006, but later Xue Jijun gradually transferred the equity of Haoyuan pharmaceutical.

On April 22, 2013, Haoyuan pharmaceutical and Xue Jijun signed the equity transfer agreement, which transferred 83% of the equity held by Gansu Haotian to Xue Jijun at a registered capital price of 830000 yuan, with a valuation of about 1 million yuan.

It is worth mentioning that Gansu Haotian has always been an important supplier of Haoyuan medicine, mainly providing chemical raw materials such as carbotriol and alfacalcohol intermediate for the company.

In 2013, Gansu Haotian obtained revenue of 6.2558 million yuan from Haoyuan pharmaceutical. In 2017-2019, the purchase amount of Haoyuan pharmaceutical from Gansu Haotian pharmaceutical was 2.8461 million yuan, 3.9575 million yuan and 8.3247 million yuan, accounting for 3.09%, 2.78% and 5.37% of the sales revenue of Haoyuan pharmaceutical API and intermediate business respectively.

It is such an enterprise with good business condition, which is very important to the main business of Haoyuan medicine and has a revenue of at least 6 million yuan, which was sold at a low price by Haoyuan medicine at a price of 1 million yuan, and Haoyuan medicine did not receive equity transfer payment of 500000 yuan from Xue Jijun until December 4, 2013, eight months after the signing of the agreement.

On May 7, 2019, Haoyuan pharmaceutical signed the capital increase agreement and supplementary agreement with Gansu Haotian, subscribed the newly increased registered capital of Gansu Haotian at the price of 4999987 yuan, obtained 13.18% equity of Gansu Haotian, and the post investment valuation reached 380 million.

However, in six years, Gansu Haotians valuation has increased by 380 times. During this period, the business between Haoyuan pharmaceutical and Gansu Haotian has not been interrupted. Gansu Haotian has been an important supplier of Haoyuan pharmaceutical. According to Haoyuan pharmaceutical, the main reason for holding Gansu Haotian is to focus on the capacity resources of Gansu Haotians APIs and intermediates. On May 17, 2019, Haoyuan pharmaceutical signed the business strategic cooperation agreement with Gansu Haotian, Haotian pharmaceutical and Xue Jijun, stipulating that after the issuer increases its capital to Gansu Haotian, it has the right to use 30-40 reaction kettles to process the issuers pharmaceutical intermediates and API products in the new Haotian pharmaceutical plant, and pay the corresponding processing fee to Haotian pharmaceutical according to the reasonable market price. (author: Li Tao, Zhu Yixin) source: editor in charge of 21st century economic report: Zhang Mei_ NF2100

On May 17, 2019, Haoyuan pharmaceutical signed the business strategic cooperation agreement with Gansu Haotian, Haotian pharmaceutical and Xue Jijun, stipulating that after the issuer increases its capital to Gansu Haotian, it has the right to use 30-40 reaction kettles to process the issuers pharmaceutical intermediates and API products in the new Haotian pharmaceutical plant, and pay the corresponding processing fee to Haotian pharmaceutical according to the reasonable market price.

(author: Li Tao, Zhu Yixin)