Zhao Benshan once spoke for the king of Huoxiang Zhengqi realm who lost 2 billion yuan in 10 years or will change his position

category:Finance
 Zhao Benshan once spoke for the king of Huoxiang Zhengqi realm who lost 2 billion yuan in 10 years or will change his position


Zhao Benshans star products are declining

It is worth mentioning that in November 2018, Taiji Group announced that due to the continuous rise in the prices of raw materials, auxiliary materials and packaging materials such as Atractylodes lancea, the main raw material of Huoxiang Zhengqi oral liquid, in order to alleviate the pressure of the companys rising costs, it decided to increase the ex factory price of Huoxiang Zhengqi oral liquid by an average of 11%, and adjusted the terminal retail price of Huoxiang Zhengqi oral liquid.

However, the price increase strategy of Taiji group failed to work. In 2019, the sales volume of Huoxiang Zhengqi oral liquid (10ml * 5 * 120) and Huoxiang Zhengqi oral liquid (10ml * 10 * 70) fell sharply again, with sales of 31.8757 million boxes and 41.2 million boxes, with a year-on-year decrease of 51.64% and 17.12%. In that year, the revenue of Huoxiang Zhengqi oral liquid of Taiji group was only more than 600 million yuan, 400 million yuan less than that of the previous year.

The novel coronavirus infection treatment method (trial fourth, fifth, sixth and Seventh Edition) was benefited from the new coronavirus infection in the first half of 2020. The sales income of the first batch of the fragrant herb was 490 million yuan, up 25.57% from the same period last year.

After deducting non net profit, the loss is 2 billion in ten years

As an old pharmaceutical enterprise, Taiji Groups predecessor can be traced back to Fuling traditional Chinese medicine factory in Sichuan Province, which was established in 1972. Taiji group was reorganized in 1993 and then landed in Shanghai Stock Exchange in 1997. The company is mainly engaged in the production and sales of Chinese and Western patent medicines, and has a complete pharmaceutical industry chain including pharmaceutical industry, pharmaceutical commerce and medicinal material planting. It has 13 pharmaceutical factories and more than 30 pharmaceutical commercial companies including Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. and Southwest Pharmaceutical Co., Ltd.

As for the reasons for the decline in performance, the company said that due to the impact of the epidemic situation, the number of routine outpatient and inpatients in medical institutions at all levels decreased significantly, and the sales of restricted drugs such as antipyretic and antitussive drugs decreased, resulting in the decrease of sales revenue and net profit.

Illegal collection of regulatory letter

On October 12, Taiji group received the supervision letter from Shanghai stock exchange due to its repeated receipt of government subsidies. According to the content of the regulatory letter, Taiji Group has received government subsidies for many times, and the accumulated amount or single amount has reached the standard that should be disclosed for many times, but the company failed to disclose it in time according to the regulations, which damaged the investors right to know.

According to the regulatory letter, Taiji Group has as many as seven government subsidy announcements that have not been disclosed in time. Among them, on April 22, November 27, December 22, 2019, Taiji group received 7.91 million yuan, 27.6017 million yuan and 9.9745 million yuan of government subsidies related to income respectively. On May 29, 2020, the company received 13.53 million yuan of government subsidies related to income. All the above-mentioned government subsidies related to income met the disclosure standards of temporary announcement, but the company did not disclose them in time.

Some pharmaceutical industry investors said that if the number of times is not disclosed in time, there is the possibility of intentional, worried that investors are not optimistic.

It is worth noting that government subsidies play an important role in the performance growth of Taiji group. According to the regulatory letter, from January 2019 to January 2020, Taiji Group has received a total of 85.1845 million yuan of various government subsidies, including 74.0181 million yuan of government subsidies related to income, accounting for 105.34% of the net profit attributable to shareholders of Listed Companies in 2018. In order to get rid of the above predicament, Taiji group sold its assets several times. In September 2020, the company announced that it plans to transfer its assets such as Chengdu xinhengsheng Real Estate Development Co., Ltd. and other assets to the outside world, and it is estimated that the company can obtain a revenue of about 401 million yuan. The company announced on October 19 that it received a notice from Chongqing Fuling District SASAC, the actual controller of the company, forwarded by the controlling shareholder Taiji Group Co., Ltd. (hereinafter referred to as Taiji Co., Ltd.), that the SASAC of Fuling District intends to introduce China Pharmaceutical Group Co., Ltd. (hereinafter referred to as Sinopharm group ) or its subordinate enterprises as strategic investors to Taiji Co., Ltd., which may lead to the companys realization Change of international controller. Editor: Peng Yong Wang Zhu Ying source: China Securities Journal Author: Wu Yong responsible editor: Zhong Qiming_ NF5619

It is worth noting that government subsidies play an important role in the performance growth of Taiji group. According to the regulatory letter, from January 2019 to January 2020, Taiji Group has received a total of 85.1845 million yuan of various government subsidies, including 74.0181 million yuan of government subsidies related to income, accounting for 105.34% of the net profit attributable to shareholders of Listed Companies in 2018.

In order to get rid of the above predicament, Taiji group sold its assets several times. In September 2020, the company announced that it plans to transfer its assets such as Chengdu xinhengsheng Real Estate Development Co., Ltd. and other assets to the outside world, and it is estimated that the company can obtain a revenue of about 401 million yuan.

The company announced on October 19 that it received a notice from Chongqing Fuling District SASAC, the actual controller of the company, forwarded by the controlling shareholder Taiji Group Co., Ltd. (hereinafter referred to as Taiji Co., Ltd.), that the SASAC of Fuling District intends to introduce China Pharmaceutical Group Co., Ltd. (hereinafter referred to as Sinopharm group ) or its subordinate enterprises as strategic investors to Taiji Co., Ltd., which may lead to the companys realization Change of international controller.