Andon Health Co.Ltd(002432) on February 17, it was announced that its U.S. subsidiary had delivered 177 million copies of ihealth Kit (including 105 million copies delivered on February 8), and ACC (U.S. Army contract management command) had paid about RMB 2.265 billion for 69.9694 million copies.
On the morning of February 17, Andon Health Co.Ltd(002432) shares rose 6% to 63.28 yuan / share, nearly 30% from the historical high of 88.88 yuan / share.
accumulated ACC loan of 2.95 billion yuan
According to the pre market announcement on Andon Health Co.Ltd(002432) February 17, its U.S. subsidiary and ACC signed the purchase contract on January 13 local time for ihealth covid-19 antigen home self-test OTC kit products (hereinafter referred to as “ihealth kit”), selling 250 million copies of ihealth kit products to it, with a total contract price tax of US $1.275 billion (including freight), About 8.102 billion yuan (on January 13, the central parity rate of the US dollar against the RMB was 1 US dollar = 6.3542 yuan).
According to the delivery arrangement in the main contents of the above contract, as of February 15, local time in the United States, Andon Health Co.Ltd(002432) U.S. subsidiary had delivered 177 million copies of ihealth kit products to the contract counterparty. As of February 15, local time, ACC of the United States has successively paid about 357 million US dollars (excluding the US $108 million received on February 8, local time) to Andon Health Co.Ltd(002432) US subsidiaries for 69.9694 million copies of kit products, about 2.265 billion yuan (the central parity rate of US dollar against RMB on February 16 = 63463 yuan).
According to the announcement, as of February 15 local time, ACC of the United States had paid a total of US $465 million for 91.1374 million copies of kit products. All the above payments had arrived on February 16, us time, about RMB 2.95 billion (the central parity rate of US dollar against RMB on February 16 = US $1 = RMB 6.3463). The above conditions are in line with the delivery and payment arrangements stipulated in the contract, which is in the process of performance.
Andon Health Co.Ltd(002432) said that the performance of the above contract will have a positive impact on its operating revenue and operating profit in 2022. However, in the process of order and contract execution, there may be a risk that the contract can not be performed on schedule or in full due to the influence of local epidemic changes, policy changes, changes in the company’s supply chain capacity, logistics and transportation risks, the right of the U.S. government to terminate the contract at any time due to its own factors, and unforeseen or force majeure. The company reminds investors that there is uncertainty whether the contract can be fully implemented.
the envelope is incomplete
the chairman and Secretary of the board of directors were taken to talk about supervision
On February 14, Andon Health Co.Ltd(002432) announced that the company had recently received the decision on administrative supervision measures and the decision on taking supervision talk measures against Liu Yi and Wu Tong issued by Tianjin Securities Regulatory Bureau. Andon Health Co.Ltd(002432) on January 7, it only disclosed some successful experimental results of the company’s ihealth covid-19 antigen home self-test OTC kit for the test performance of Omicron mutant virus, but did not disclose all the experimental results, and the disclosure information was incomplete. As the chairman and general manager of Andon Health Co.Ltd(002432) and Wu Tong as the Secretary of Andon Health Co.Ltd(002432) board of directors, Liu Yi is mainly responsible for the integrity of information disclosure in the interim report of listed companies. Tianjin Securities Regulatory Bureau decided to take supervision and management measures for the two people’s regulatory conversation, requiring them to bring valid identity documents to Tianjin Securities Regulatory Bureau for regulatory conversation before February 18.
Andon Health Co.Ltd(002432) in response, the company and relevant personnel “attach great importance to”, “carefully summarize” and “learn lessons”, and will actively rectify in strict accordance with regulatory requirements, strengthen internal control and information disclosure management, and improve the standard operation level and information disclosure quality of the company.
Andon Health Co.Ltd(002432) later said in a statement that the company used relatively concise statements because it did not want to make the announcement too difficult to interpret because there were many professional terms involved in the experimental report. The announcement of the company also takes into account that investors can understand the relevant situation through the company’s official information and avoid misinformation. It is based on the perspective of investor protection.
The statement shows that the regulatory authorities pointed out that there are deficiencies in the integrity of the letter pHi in the announcement. It is normal for the company to talk and guide. The company understands, respects and accepts the opinions of the regulatory authorities and will improve it in the future work, “but you don’t have to break it down”.
respond to capacity and demand concerns
Since the announcement on November 7, 2021 that the U.S. subsidiary ihealth kit has obtained the emergency use authorization (EUA) of the U.S. Food and Drug Administration (FDA), the share price of Andon Health Co.Ltd(002432) has soared. From the lowest 5.8 yuan on October 29, 2021 to the highest 88.88 yuan on January 18, 2022, Andon Health Co.Ltd(002432) has increased by more than 14 times in two and a half months.
Since January 2022, the company has quickly signed large orders with a total amount of more than 10 billion yuan within three days. One is the purchase orders and contracts for ihealth kits from New York and Massachusetts received by the U.S. subsidiary, with a cumulative amount of more than 2.1 billion yuan; The other is the purchase contract of ihealth kit products signed by the U.S. subsidiary and the U.S. Department of health and human services, with a total amount of price and tax of about 8.102 billion yuan.
On February 10, 2022, Andon Health Co.Ltd(002432) announced that as of February 8 local time in the United States, its U.S. subsidiary had delivered about 105 million copies of ihealth kits to the contract counterparty, and ACC in the United States had paid a total of 108 million US dollars, about 687 million yuan.
On the issue of production capacity concerned by investors, Andon Health Co.Ltd(002432) said in an institutional survey on February 14 that the relaxation of epidemic prevention and control measures in some European countries does not mean that the demand for covid-19 testing and treatment will disappear out of thin air. Under the circumstances of lifting restrictions in public places and resuming production and classes in enterprise schools, there may be more application scenarios of self-testing. In addition, the company is actively contacting and communicating with customers in the Japanese market in order to open the Japanese market through private brand sales as soon as possible.
According to the research records, Andon Health Co.Ltd(002432) the delivery cycle of commercial orders during the peak production scheduling is 6-8 weeks. The company’s current delivery scheduling has been shortened. According to the current production scheduling plan, it will be able to meet the needs of government and commercial customers as planned. At the same time, the company also plans to separate the testing business and establish an independent testing organization to serve customers with relevant testing and certification needs.
The company also revealed that after ihealth kit products became the mainstream products of the kit, its ihealth brand also became the mainstream brand in the United States. Ihealth’s U.S. subsidiary also sponsored the organizer of the American Football Super Bowl to distribute the kit products to more than 70000 spectators.
However, it is worth noting that in view of the supply-demand relationship of the company’s antigen self-test products and how the production capacity will evolve in the future, Andon Health Co.Ltd(002432) said that at present, 13 companies have obtained covid-19 antigen detection kit authorized by FDA and EUA, and the production capacity of other companies is not well evaluated. Zhejiang Orient Gene Biotech Co.Ltd(688298) announced on December 30, 2021 that its wholly-owned subsidiary customer Siemens Medical’s “clinitest” covid-19 virus antigen self-test reagent was authorized by FDA and EUA for emergency use on December 30, 2021 Beijing time, and Zhejiang Orient Gene Biotech Co.Ltd(688298) subsidiary became the designated authorized supplier of the antigen self-test product.
