On the evening of February 14, Andon Health Co.Ltd(002432) announced that it had received the decision on administrative supervision measures issued by Tianjin Securities Regulatory Bureau because it only disclosed some successful experimental results on January 7, 2022 and did not disclose all the experimental results.
In this regard, Liu Yi, chairman of Andon Health Co.Ltd(002432) and Wu Tong, Secretary of the board of directors, were taken to the supervision and management measures of the supervision interview, and received the supervision interview with valid ID cards before February 18, 2022.
At the opening on February 15, Andon Health Co.Ltd(002432) fell at the opening, but then the share price began to rise and closed in the afternoon. Andon Health Co.Ltd(002432) closed at 56.91 yuan / share, up 3.19%.
detection data “selective blindness”
Only part of the successful test data are disclosed, but not all of them are disclosed. Andon Health Co.Ltd(002432) does this approach treat the serious monitoring data as a “children’s play”?
The announcement shows that on January 7, 2022, in the Andon Health Co.Ltd(002432) received the performance test report of the Radx project of the National Institutes of Health (NIH) on the domestic self-test OTC kit of ihealth covid-19 antigen against Omicron variant virus arranged by the FDA, The report showed that “the ihealth-covid-19 antigen rapid test detected 100% of Omicron active virus samples with a maximum CT value of 21.59 (n = 5)”.
Then on January 15, 2022, Andon Health Co.Ltd(002432) said in reply to the letter of concern of Shenzhen stock exchange that “100% of Omicron active virus samples with a maximum CT value of 21.59 (n = 5) were detected in the experiment” previously disclosed by the company, in which “maximum” means that samples less than or equal to 21.59 can be detected 100%, and samples greater than 21.59 cannot be detected 100%, And said that the positive detection rate of all samples in the experimental group: when the CT value is ≤ 21.59, it can be detected completely, when the CT value is 22.86, it can be detected 60%, and when the CT value is ≥ 23.87, it can not be detected at all.
Is the disclosure of such “carelessness” intentional or opportunistic speculation? The data showed that on the second opening day of the error report data release, Andon Health Co.Ltd(002432) share price hit the highest point of 88 yuan / share since the listing.
According to the test data report previously issued by Andon Health Co.Ltd(002432) , it clearly announced that 100% of the samples of Omicron active virus with a maximum CT value of 21.59 (n = 5) were detected by ihealth covid-19 anti rapid test.
(source: screenshot of announcement)
In this way, the scientific data monitored are summarized as 100%. Even if the regulatory letter received before made the stock price experience a short decline, now with a 100% guarantee, this demon stock has ushered in a “surge” again.
It should be noted that while the self-test kit “detects 100% of the samples of Omicron active virus (the maximum CT value is 21.59, n = 5)”, there are actually 7 samples with “negative” test results in the original English document reported to Shenzhen Stock Exchange in Andon Health Co.Ltd(002432) , that is, the self-test kit fails to detect Omicron variant virus.
According to the original English document of the performance test report of ihealth kit, there are 11 samples of Omicron active clinical virus test group in the sample pool of the experiment, and their CT values are linearly distributed between 19.35-28.81. Each sample was tested with ihealth kit for 5 times, and the test results showed that the 20 test results of four samples with CT value less than or equal to 21.59 were positive; For a sample with CT value equal to 22.86, the results of three tests are positive and the results of two tests are negative; The 30 test results of 6 samples with CT value greater than 22.86 were negative.
In other words, the samples with CT value higher than 22.86 have a probability of missed detection, which is “selectively avoided” by Andon Health Co.Ltd(002432) .
Therefore, Andon Health Co.Ltd(002432) also received the attention letter issued by Shenzhen Stock Exchange again, asking it to explain whether there is a situation that the positive detection rate of some samples is confused with the positive detection rate of all samples to mislead investors.
Therefore, some investors questioned whether they took the opportunity to hype the stock price, but were denied by Andon Health Co.Ltd(002432) .
Then, in the reply to the Shenzhen Stock Exchange, Andon Health Co.Ltd(002432) said that the wording used in the announcement as short as possible was based on considering the incomprehensible problems caused by too many professional terms in the announcement, but in terms of the intelligibility and integrity of the wording, the relevant provisions really need to be strengthened and improved.
can the performance soar in the “post epidemic” period?
In 2021, due to the impact of covid-19 epidemic, the sales performance of Andon Health Co.Ltd(002432) antigen home self-test OTC kit products in the U.S. market increased significantly, which promoted the significant growth of business performance in 2021.
According to the performance forecast released by Andon Health Co.Ltd(002432) , it achieved a net profit of 900 million yuan to 12 yuan in 2021, an increase of 271.40% ~ 395.19% over the same period of the previous year; Deducting non net profit, the profit ranged from 850 million yuan to 1.15 billion yuan, an increase of 243.46% ~ 364.68% over the same period of last year.
The sales of kits have led to a sharp increase in the performance of Andon Health Co.Ltd(002432) . What did it rely on before that?
According to public information, Andon Health Co.Ltd(002432) was established in 1995, and its main business is mainly divided into three fields, namely Internet medical, intelligent IOT and consumer products, and household medical devices. The main products include blood pressure, blood glucose, wireless noise reduction headphones, smart watches, body fat scales, ear thermometers and sweeping Siasun Robot&Automation Co.Ltd(300024) and other fields. They are mainly products for families and individuals.
When the kit business has not been carried out, Andon Health Co.Ltd(002432) performance has been hovering at a low level, and the net profit has been on the edge of loss for several times. Before the outbreak, its revenue has never exceeded 1 billion yuan, and the net profit is mainly kept positive by non recurring profits and losses. Now, the kit business has brought a lot of revenue, and the stock price has changed the declining trend since its listing, opening a “rocket” surge.
After the announcement, the share price closed at 4388.50% in 2021, 2 months after the announcement. However, the momentum is also in a hurry. Its share price began to fall after January 18. As of today’s close, it has fallen by 35.32 percentage points.
The stock price has been on the “rocket” and the performance has also been on the “rocket”. While the people revel for the “demon stock” and kit, it seems to be “blinded by the hot scene in front of them”. In contrast, the R & D input and output results of Andon Health Co.Ltd(002432) in recent years are almost few, and the company’s core competitiveness seems to be only kit.
The reporter sent an interview letter to the enterprise on the current test data disclosure errors and future growth points of performance. As of press time, no reply has been received.
