Securities code: 688575 securities abbreviation: Shenzhen Yhlo Biotech Co.Ltd(688575) Announcement No.: 2022-024 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 of price and tax is US $50 million (excluding freight and insurance premium), about RMB 316.715 million;
Effective time of this order: February 18, 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
1. Overview of this order
Shenzhen Yhlo Biotech Co.Ltd(688575) (hereinafter referred to as ” Shenzhen Yhlo Biotech Co.Ltd(688575) ” or “the company”) received the purchase order (hereinafter referred to as “purchase order” or “this order”) sent by the Institute of medical biology, Inc. (English Name: Medical & biological laboratories Co., Ltd., hereinafter referred to as “MBL”) on February 18, 2022. According to the purchase order, MBL increased the purchase of New Coronavirus antigen test kit to the company. The total amount and tax value was 50 million dollars (excluding shipping and insurance premium), or about 316 million 715 thousand yuan (the Chinese people’s bank authorized the China foreign exchange trading center’s February 18, 2022 dollar exchange rate of RMB 1 yuan = 6.3343 yuan, the same below).
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. Progress of previous order fulfillment
Previously, the company has received the purchase order (see the announcement on major contracts of daily operation (Announcement No.: 2022-021) from MBL on February 14, 2022, with a total price and tax of USD 52.9417 million (including freight and insurance premium). As of February 18, 2022, The company has received the advance payment of USD 15261762.50 under the order, about 96672582.20 yuan. The order is being fulfilled as planned. Up to now, the company has received MBL purchase orders totaling 102.9417 million US dollars (including this order).
2、 Contract object and counterparty
(I) subject matter of the contract
MBL increased the purchase of New Coronavirus antigen test kit to the company. The total amount of the purchase price is 50 million dollars (excluding shipping and insurance premium), which is about 316 million 715 thousand yuan.
(II) information of contract counterparties
1. Company name: Institute of medical biology, Ltd
2. Official of Yamada: legal representative
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, the proportion of the 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 50 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 18, 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 19, 2022
