Securities code: 300497 securities abbreviation: Jiangxi Fushine Pharmaceutical Co.Ltd(300497) Announcement No.: 2022-018 Jiangxi Fushine Pharmaceutical Co.Ltd(300497)
Announcement on the reply to the letter of concern of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
At present, the company’s core intermediates of mupiravir and redcivir have been sent and verified by customers. Among them, some mupiravir intermediates have been delivered, and the revenue has not been recognized. The revenue of the above two products has not been formed yet. The technical sources of the above-mentioned related products are authorized by Shanghai lingfu Pharmaceutical Research Co., Ltd. and are produced by the company. They can only be supplied to Shanghai lingfu Pharmaceutical Research Co., Ltd. and cannot be supplied to other parties
At present, the company’s core intermediates of mupiravir and redcivir are not directly or indirectly supplied to Pfizer, Gilead and MSD
At present, the company has not signed any contract related to covid-19 therapeutic drugs with Pfizer, MSD, real life and Gilead
Jiangxi Fushine Pharmaceutical Co.Ltd(300497) (hereinafter referred to as “the company”) received the attention letter on Jiangxi Fushine Pharmaceutical Co.Ltd(300497) issued by the gem Management Department of Shenzhen Stock Exchange on January 27, 2022 (GEM attention letter [2022] No. 67). After receiving the letter, the company attached great importance to it and made careful verification and analysis. Now, according to relevant measures and in combination with the actual situation, the reply is as follows:
1、 Recently, investors have repeatedly asked questions on the interactive platform of the exchange to pay attention to the business related to your company’s supply of core intermediates of mopiravir and redcivir to customers. Your company mentioned in the interactive reply and the announcement on abnormal fluctuations in stock trading disclosed on January 24 that the company’s revenue from covid-19 therapeutic drugs and related products accounts for a small proportion of the company’s revenue, which has not had a significant impact on the company’s current operating performance. Your company has cooperated with lingfu Pharmaceutical Research Institute and now has the R & D and production capacity of covid-19 therapeutic drug intermediates. It is expected to enter the supply chain system of covid-19 therapeutic drug production of Pfizer and other companies. Our department is concerned about this. Please verify and supplement the following matters:
(1) Please describe the product name, purpose, R & D and production investment, estimated production capacity, current production and sales volume of relevant products, operating revenue and proportion in recent two years, market share, orders on hand, main customers, etc. of the core intermediates supplied by your company, And explain the specific impact of the reality and expectation of relevant products on the company’s financial situation and operating results in the future, and give sufficient risk tips.
Company reply:
At present, the core intermediates of mupiravir and redcivir produced by the company have been sent and verified by customers. Among them, some intermediates of mupiravir have been delivered, and the revenue has not been recognized. The above two products have not formed revenue yet. The details are as follows:
Hand order
Single amount
In hand
R & D students are expected to account for the order money of main product names and purposes in 2020
Production input capacity output annual business customer volume
Industry income
proportion
Mupiravir intermediate (4-amino)
Shanghai ling-1 – ((3ar, 4R, 6R, 6aR) – 6 – (hydroxybenzene)
3 million 100 tons / about 3.25 million drug rich methyl) – 2,2-dimethyltetrahydrofuran to produce 0.2% muppie
250kg yuan in the first year [3,4-d] [1,3] dioxolane-4-ravir
Pyrimidine-2 (1H) – sulfate)
Redcivir core intermediate (pyrazone) is used for 5 million 200 tons / about 5.5 million 0.4% Shanghai Ling
Rolo [2,1-f] [1,2,4] triazine-4-produces 500 kg yuan of rich drug amine and 7-iodopyrroloxivir in the first year. The research has [2,1-f] [1,2,4] triazine-4-amine) Co., Ltd
Note 1: the financial data of 2021 is still in the process of audit;
Note 2: Shanghai lingfu Pharmaceutical Research Co., Ltd. is a joint-stock company of the company, and the shareholding ratio of the company is 39.20%, and that of Lingkai pharmaceutical is 60.80%;
Note 3: the technical sources of the above related products are authorized by Shanghai lingfu Pharmaceutical Research Co., Ltd. and are produced by the company. They can only be supplied to Shanghai lingfu Pharmaceutical Research Co., Ltd. and cannot be supplied to other parties.
To sum up, at present, the company’s on hand orders for covid-19 therapeutic drugs account for a small proportion of the company’s revenue, which has not had a significant impact on the company’s current operating performance. In the future, whether the company can form a long-term and stable cooperative relationship with customers is uncertain, and the market demand of the drug is uncertain. Therefore, the impact on the company’s future operating performance is uncertain. Please pay attention to investment risks and invest rationally.
(2) Please indicate whether your company directly or indirectly provides products or services to Pfizer and other companies. If so, please specify the specific content of relevant business, the type and application field of products provided by your company, the signing time and corresponding amount of the contract, and the specific impact of relevant business transactions on your company’s business performance; If not, please verify whether the relevant contents of the early disclosure announcement and interactive easy reply are true, accurate and complete, and whether they are suspected of misleading investors.
Company reply:
Since its listing in 2015, the company has directly and indirectly provided Pfizer with the following products:
Amount of terminal application field (yuan) at the time of signing the product contract direct customer
Name: inter type customer
Applied to downstream preparations. Applicable to Pfizer Japan 14011800 in 2015-
Treatment of sensitive bacteria (including producing bacteria) β- Pfizer Japan 9009000 in 2016-
SBA is in medicine
Respiration caused by amidase strain) in 2015 5062464 ACS obfar
Tract infection, hepatobiliary system infection, 2016 5541624 ACS obfar Pfizer urinary system infection, skin soft group, 2017 8145393 ACS obfar Pfizer
Tissue infection. 16097400 ACS obfar Pfizer in 2018 44010998 ACS obfar Pfizer in 2019 50216600 ACS obfar Pfizer in 2020 52920000 ACS obfar Pfizer in 2021
The above order amount accounts for a small proportion of the current year’s revenue and has no significant impact on the company’s performance in the current year. Moreover, the above products directly and indirectly supplied to Pfizer are not used for covid-19 therapeutic drugs. Please pay attention to investment risks and invest rationally. The company’s early disclosure announcement and interactive easy reply are true, accurate and complete, and are not suspected of misleading investors.
(3) Your company replied to investors’ questions on the interactive easy platform on January 6, 2022, saying that the intermediate products currently being produced by your company cannot be used for covid-19 therapeutic drugs; In response to relevant questions on January 19, 2022, your company said that your company has rich experience in the production of antiviral intermediates and strong commercial production capacity, and has the R & D and production capacity of covid-19 therapeutic drug intermediates. It is expected to enter the supply chain system of covid-19 therapeutic drug production of Pfizer and other companies. Please check and explain whether there are contradictions in the above reply, whether the relevant statements are true, accurate and complete, whether there are misleading statements and explain the reasons.
Company reply:
Focusing on the anti infective drug industry chain, the company has become a major player in the world β- One of the manufacturers of lactam drugs and lovir drugs. Since the acquisition of Weifang Aotong Pharmaceutical Co., Ltd. (hereinafter referred to as “Weifang Aotong”) in 2016, the anti-virus field has gradually become one of the important business fields of the company. According to the analysis of the composition of the company’s operating revenue in recent years, the antiviral API and intermediate business has become the main business of the company β- The second pillar business other than lactam.
In March 2021, the company and Shanghai Lingkai Pharmaceutical Technology Co., Ltd. (hereinafter referred to as “Lingkai pharmaceutical”) jointly established Shanghai lingfu Pharmaceutical Research Co., Ltd. (hereinafter referred to as “Lingkai Pharmaceutical Research Institute”). Relying on its geographical advantages, talent advantages and technical advantages, relying on the company’s rich experience in the production of antiviral intermediates and strong commercial production capacity, as well as Lingkai pharmaceutical’s rich experience and strength in new drug research and development for many years, lingfu Pharmaceutical Research Institute has actively carried out the research and development of antiviral drug APIs and intermediates, This makes the company and lingfu Pharmaceutical Research Institute have business synergy in the research and production of antiviral drugs.
Due to the rapid development of the epidemic situation, many relevant enterprises in the industry are increasing the R & D of covid-19 therapeutic drugs and accelerating the listing speed. Under such an environment, the work progress of covid-19 drugs has been greatly accelerated. The company and lingfu Pharmaceutical Research Institute, a joint-stock company, are also making every effort to accelerate the promotion of this business, and have the R & D and production capacity of covid-19 therapeutic drug intermediates, However, it has not yet entered the production link.
Therefore, on January 6, 2022, investors asked in interactive easy questions: “can the intermediates produced by the company be used for covid-19 therapeutic drugs? For example, for Gilead in the United States, or other companies?”, After careful verification by the company, the intermediate of covid-19 therapeutic drug has not been produced until January 6, 2022. Therefore, the investor replied: “the intermediate products currently produced by the company cannot be used for covid-19 therapeutic drug”.
On January 1, 2022, the company held a coordination meeting with lingfu Pharmaceutical Research Institute on the mupiravir intermediate project. Through consultation between the two sides, the company’s subsidiary Jiangxi Xiangtai Life Science Co., Ltd. needs to start the production of four batches of mupiravir intermediates as soon as possible. After the meeting, the company immediately started the raw material procurement and related supporting work, and officially put into production in the workshop on January 11, 2022. On January 19, 2022, investors asked in the interactive forum: “what progress and breakthroughs has the company made in the field of covid-19 APIs and intermediates? Have there been orders for relevant products? The company has close business contacts with Pfizer, and whether it has the ability and foundation for cooperation in the field of covid-19 APIs and intermediates in the future?”, The company made a reply according to the actual situation: “the company is constantly strengthening R & D and cooperating with lingfu Pharmaceutical Research Institute. Now it has the R & D and production capacity of covid-19 therapeutic drug intermediates
