Securities code: 688575 securities abbreviation: Shenzhen Yhlo Biotech Co.Ltd(688575) Announcement No.: 2022-021 Shenzhen Yhlo Biotech Co.Ltd(688575)
Announcement on major contracts of daily operation
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips
Amount of this order: the total amount including tax is USD 52.9417 million (including freight and insurance premium);
Effective time of this order: February 11, 2022;
Time limit for fulfillment of this order: the company shall complete the delivery within 30 days after receiving the advance payment from MBL;
Impact on the company’s current performance: the performance of this order has a positive impact on the company’s operating performance in 2022, which is conducive to improving the company’s brand influence, profitability and core competitiveness. At the same time, the implementation of this order will have a positive impact on the company’s expansion of overseas markets, especially the Japanese market;
The possible risks in the fulfillment of this order mainly include supply risk, logistics and transportation risk, quality risk, accounts receivable recovery risk, etc. Please pay attention to investment risks.
1、 Contract signing overview
According to the OEM supply agreement signed between Shenzhen Yhlo Biotech Co.Ltd(688575) (hereinafter referred to as ” Shenzhen Yhlo Biotech Co.Ltd(688575) ” or “the company”) and the Institute of medical biology, Inc. (English Name: Medical & biological laboratories Co., Ltd., hereinafter referred to as “MBL”), The company received the purchase order (hereinafter referred to as “purchase order” or “this order”) sent by MBL on February 11, 2022. According to the purchase order agreement, MBL intends to purchase New Coronavirus antigen test kit from the company. The total amount and duty tax is 52 million 941 thousand and 700 dollars (including freight and insurance premium), or about 337 million 138 thousand yuan (the central bank’s authorized price of RMB 1 yuan = 6.3681 yuan RMB) announced by the people’s Bank of China authorized by the Chinese foreign exchange trading center in February 11, 2022.
The above orders belong to the daily business scope of the company and do not need to be deliberated and approved by the board of directors and the general meeting of shareholders of the company.
2、 Contract object and counterparty
(I) subject matter of the contract
MBL purchases New Coronavirus antigen test kit from the company, the total amount of the order price and tax is 52 million 941 thousand and 700 dollars (including freight and insurance premium), or about 337 million 138 thousand yuan (the Chinese people’s bank authorized the China foreign exchange trading center’s February 11, 2022 dollar to the central parity of the people’s currency exchange rate = 1 yuan = 6.3681 yuan).
(II) information of contract counterparties
1. Company name: Institute of medical biology, Ltd
2. Legal representative: Yamada Gongzheng
3. Registered capital: 4482.93 million yen
4. Date of establishment: August 23, 1969
5. Residence or main office: Tokyo, Japan
6. Main business: mainly engaged in the R & D, production and sales of in vitro diagnostic products
7. Controlling shareholder: JSR Co., Ltd. (a company listed on the Tokyo Stock Exchange of Japan)
8. Financial data: due to the confidentiality of the other party’s information, the main financial data of the latest fiscal year cannot be provided
(III) there is no relationship between the counterparty and the company and its holding subsidiaries.
(IV) procurement business from the other party of the contract to the company and its holding subsidiaries in the last three fiscal years:
Unit: 10000 yuan
Proportion of annual amount (excluding tax) in current year’s operating income (%)
2021 (Unaudited) 696.39/note
2377.68 2.38 in 2020
2019 44.52 0.05
Note: since the operating income in 2021 has not been audited and released to the public, the proportion of transaction amount in 2021 in the operating income of the current year in the above table cannot be listed.
3、 Main terms of the contract
1. Amount of this order: USD 52.9417 million;
2. Payment method and payment schedule of this order: telegraphic transfer or letter of credit. The company will deliver the goods to MBL within 30 days after receiving the advance payment from MBL, and MBL will pay the remaining payment within 30 days after receiving the goods;
3. Place of fulfillment of this order: Japan (delivery place designated by MBL);
4. Time limit for fulfillment of this order: the company shall complete the delivery within 30 days after receiving the advance payment from MBL;
5. Effective time of this order: February 11, 2022;
6. Liability for breach of contract: if one party has a major breach of contract or fails to correct the breach within 90 days after receiving the written notice from the other party, the other party has the right to unilaterally terminate the agreement;
7. Dispute resolution: both parties shall negotiate amicably. If the negotiation fails, it shall be submitted to the Hong Kong International Arbitration Center for arbitration.
4、 Impact of contract performance on the company
(I) the fulfillment of this order will have a positive impact on the company’s operating performance in 2022 and help to improve the company’s brand influence, profitability and core competitiveness. At the same time, the implementation of this order will have a positive impact on the company’s expansion of overseas markets, especially the Japanese market.
(II) the fulfillment of this order will not affect the business independence of the company and will not rely on MBL due to the fulfillment of this order.
5、 Major risk tips
1. Supply risk: the company has the production capacity of this order at the present stage, but if the delivery cannot be made on schedule due to major changes in the epidemic situation in China or other force majeure factors, the company may breach the delivery or terminate the contract and bear relevant losses.
2. Logistics and transportation risk: if affected by epidemic and other factors, the goods cannot be delivered or delivered on time according to the contract and the agreement of both parties. If the delivery of goods is seriously affected, the company may default on delivery, or the contract may be terminated and bear relevant losses.
3. Quality risk: in the case of mass production, individual products may have quality problems, leading to the risk of return or even recall. This risk may lead to the buyer’s return and termination of the contract, and the company will bear relevant losses.
4. Recovery risk of accounts receivable: in principle, the company supplies goods to MBL when it receives no less than 50% of the advance payment. Although MBL is a subsidiary of JSR Co., Ltd., a company listed on the Tokyo Stock Exchange of Japan, and has strong performance ability, due to the large contract amount, there is a certain recovery risk of accounts receivable.
It is hereby announced.
Shenzhen Yhlo Biotech Co.Ltd(688575) board of directors February 14, 2022
