After Jiangxi Fushine Pharmaceutical Co.Ltd(300497) , another enterprise was concerned by regulators after its share price fluctuated due to the concept of “dipping” covid-19 treatment. On January 28, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) received a letter of concern from Shenzhen Stock Exchange, asking it to explain whether it has produced or sold products for covid-19 drug production and whether major shareholders have a shareholding reduction plan in the near future.
In 2022, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) share prices are generally rising. In the 15 trading days from January 10 to 28, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) rose in 9 trading days, and rose to 36.71 yuan / share on January 17, reaching the highest in the near future.
The rise of share price coincides with Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) answering investors’ questions on the interactive platform. On the last day of 2021, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) said in response to the question “whether Pfizer covid-19 oral drug intermediates are involved” on the investment platform that the company is a leading manufacturer of pharmaceutical intermediates and APIs in China, with perfect technical equipment and sufficient technical reserves, and has the ability to provide entrusted production and customized processing services for customers outside China. In view of the confidentiality agreement, it is inconvenient to disclose relevant customer and product information. Since then, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) share price has risen continuously.
On January 14, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) said again when answering whether it has the ability to produce covid-19 intermediate fragment SM1, “it has the ability to provide entrusted production and customized processing services for customers outside China.” On the same day and the following trading day, its share price rose by more than 4%. On January 17, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) made it clear on the investment interaction platform that it had not received Pfizer’s relevant business consultation, and reiterated that the company provided intermediate products and services for customers outside China, and the share price fell. On January 18 and January 21, the largest decline was 11.44% and 8.70% respectively. On January 19, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) also said that “the income of this intermediate product currently accounts for a relatively small proportion and has not had a significant impact on the performance.”
A series of responses and stock price fluctuations have become the focus of regulators. In the letter of concern, SZSE requires Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) to explain whether the products for covid-19 drug production have been produced or sold. If not, SZSE requires Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) to explain the basis for the company to judge that it has “production technology and capacity related to (covid-19 intermediate fragment SM1)” in combination with the R & D, production and sales of similar products of the company, And explain whether there are misleading statements and other situations in the relevant replies of the company on “interactive easy”.
Whether this move is suspected of cooperating with the reduction of shareholders’ holdings has also attracted the attention of Shenzhen Stock Exchange. In August 2021, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) disclosed that Yang Xiuliang, vice president, planned to reduce the company’s shares by centralized bidding within six months from September 23, 2021. On December 23, 2021, Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) said that the above reduction time was more than half, and Yang Xiuliang had not reduced his shares. This time, the Shenzhen Stock Exchange asked Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) to check the trading of the company’s shares by the company’s controlling shareholders, actual controllers, shareholders holding more than 5%, directors and supervisors in recent three months, whether there is a reduction plan in the next three months, and explain whether the company’s reply on the “interactive easy” platform has the concept of speculation hot spots and cooperates with the reduction of shareholders.
Previously, Jiangxi Fushine Pharmaceutical Co.Ltd(300497) also experienced a roller coaster for its share price due to its “sticking” to the covid-19 treatment concept. Major shareholders “accurately” reduced their holdings at the high point and received a letter of concern from the Shenzhen Stock Exchange.
