Securities code: Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) securities abbreviation: Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) Announcement No.: 2022010 Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093)
On using some over raised funds to invest in expanding pre filled medical packaging materials
Announcement of capacity projects
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 material omissions.
Important content tips:
● name of investment project: expanding the production capacity of pre filled medical packaging materials (hereinafter referred to as “the project” or “the project”).
● project construction period, investment amount and capital source:
The construction period of the project is expected to be 18 months, and the total investment of the project is expected to be 300 million yuan (the final total investment of the project is subject to the actual investment). The total amount of over raised funds of the company is 1254031900 yuan, and it is planned to use part of the over raised funds to invest in the project.
● the proposal of using some over raised funds to invest in the project of expanding the production capacity of pre filled medical packaging materials has been deliberated and adopted at the 15th meeting of the 4th board of directors and the 13th meeting of the 4th board of supervisors of Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) (hereinafter referred to as ” Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) ” or “the company”), and the proposal needs to be submitted to the second extraordinary general meeting of shareholders of the company in 2022 for deliberation.
● this investment does not constitute a connected transaction or a major asset reorganization.
● relevant risk tips:
During the implementation of the project, there may be risks such as policy, market and technology research and development, so that the project benefits do not meet the expectations. Therefore, the impact of the project on the future performance of the company is uncertain. Please pay attention to the investment risks.
1、 Basic information of raised funds
Registered in the reply on Approving the registration of Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) initial public offering of shares (zjxk [2021] No. 3020) issued by China Securities Regulatory Commission and approved by Shenzhen Stock Exchange, the company issued 33666667 ordinary shares (A shares) in RMB for the first time at an issue price of 58.08 yuan per share, After deducting the total issuance expenses, the net amount of the raised funds is rmb194031987, which is rmb19483600. Dahua Certified Public Accountants (special general partnership) verified the availability of the above raised funds and issued Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) capital verification report (Dahua Yan Zi [2021] No. 000714). The company adopts the special account storage management for the raised funds, and has signed the tripartite supervision agreement on raised funds with the recommendation institution and the bank opening the special account for raised funds to jointly supervise the use of raised funds.
2、 Use of raised funds
According to the prospectus of Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) initial public offering and listing on GEM disclosed by the company, the investment projects of the funds raised from this initial public offering are planned as follows:
No. investment amount of the project invested by the raised funds proposed to be invested in the construction period of the project
(10000 yuan) amount (10000 yuan)
1 automation and intelligent chemical plant reconstruction project 35432103500000 36 months
2 R & D center construction project 601624500000 24 months
3. Supplementary working capital project 15 Ping An Bank Co.Ltd(000001) 500000-
Total – 5500000-
On December 15, 2021, the company held the 14th meeting of the 4th board of directors and the 12th meeting of the 4th board of supervisors, and deliberated and adopted the proposal on using raised funds to replace self raised funds for pre invested projects. In order to ensure the smooth progress of the investment projects with raised funds, the company used self raised funds to invest in the investment projects with raised funds in advance according to the actual progress of the investment projects with raised funds before the funds were in place. As of November 18, 2021, the total amount of projects actually invested by the company with self raised funds is 919814 million yuan, and the amount to be replaced this time is 919814 million yuan. Dahua Certified Public Accountants (special general partnership) issued the verification report of Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) using self raised funds to invest in projects with raised funds in advance (dahuahe Zi [2021] No. 0012703) according to the use of the above self raised funds. For details, please refer to the company’s website on December 17, 2021（ http://www.cn.info.com.cn. ）Announcement on using raised funds to replace self raised funds invested in raised investment projects in advance (Announcement No.: 2021005).
On December 15, 2021, the company held the 14th meeting of the 4th board of directors and the 12th meeting of the 4th board of supervisors, deliberated and approved the proposal on using some idle raised funds and self owned funds for cash management, and agreed that the company would not affect the construction of investment projects with raised funds, the use of raised funds and the normal business development of the company, Use idle raised funds (including over raised funds) of no more than RMB 180 million and self owned funds for cash management, including raised funds of no more than RMB 160 million and self owned funds of no more than RMB 200 million. The company will strictly control risks in accordance with relevant regulations and select investment products with high security, good liquidity and meeting the requirements of principal preservation (including but not limited to structural deposits, time deposits, large certificates of deposit, agreed deposits, other principal guaranteed financial products, call deposits, fixed income certificates, agreed deposits, etc.), and such cash management products shall not be used for pledge and guarantee. For details, please refer to the company’s website on December 17, 2021（ http://www.cn.info.com.cn. ）Announcement on cash management using some idle raised funds and self owned funds (Announcement No.: 2021006).
3、 Details of the project of using some over raised funds to invest in expanding the production capacity of pre filled medical packaging materials
(I) basic information of the project project project name: expanding the production capacity of pre filled medical packaging materials project location: No. 1488, Chengcheng Road, Shengang Town, Lingang New Town, Jiangyin City project unit Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) construction period: 18 months, planned investment: 300 million yuan
It is planned to add new composite aluminum cover gasket production line, pre potting workshop production line, cop / COC product production line, TPE production scale and product production line, water treatment and other supporting facilities and equipment and other special product production lines.
After the completion of infrastructure transformation, the annual output of insulin injection pen gasket and piston products can be increased by 2 billion; 1.5 billion pre filled syringe pistons and protective cap products; And cycloolefin copolymer and cycloolefin polymer (COC, COP) products matched with the above products.
Planned production of pre filled medical packaging materials:
Product category product application product display
Insulin injection pen gasket / piston products for pen syringes
Aluminum cover
Pre filled syringe piston and protective cap products
Pre pouring and sealing material
Cycloolefin copolymers and cycloolefin polymers (COC
COP）
(II) filing of the project
In this project, except the products of cycloolefin copolymer and cycloolefin polymer (COC, COP) are still on record, other products have been on record, and the environmental assessment procedures are being handled.
(III) project implementation schedule
The project is planned to be implemented and completed in 18 months.
(IV) investment schedule
The project plans to invest 300 million yuan, including 243 million yuan in fixed assets and 57 million yuan in working capital. The project is expected to be invested as scheduled within 18 months. The main investment plans are as follows:
No. investment amount of main investment categories
1. Investment in design and foundation reconstruction 7500
2. Investment in purchase of production equipment: 15000
3. Investment in technological innovation 1800
4. Operation and management expenses 1100
5. Working capital 3000
6. Contingency cost
7. The total investment of the project is 30000 yuan
(V) necessity analysis of the project
1. Lay out a complete industrial chain and promote the realization of the company’s strategy.
The core technology of pharmaceutical packaging materials industry mainly lies in the development of new materials, production process optimization, product structure design and so on. With the development of high-end drugs such as new varieties of biological drugs and chemical drugs strongly encouraged by the state, the rapid development of biological recombinant genes, vaccines, monoclonal antibodies and other fields has brought opportunities for the increase of demand for pre filled packaging materials, and the market prospect of pre filled packaging materials is on the rise. The company will be committed to developing new packaging systems and drug delivery devices, providing specific functions, meeting the technical requirements of preparations, improving patient compliance and ensuring drug safety. In this context, the company’s layout of pre filled packaging materials project is in line with the national industrial policy and development trend.
2. The market space is large and the return prospect is good, which helps to enhance the profitability of the company.
With the promotion of vaccination in China, the supply of pre encapsulated syringes in China is tight, and the existing production capacity can not meet the market demand in time, so it is urgent to expand production. Pre filled syringe is a new packaging method widely used in international high-end pharmaceutical preparations in recent years. It has been widely used in the packaging of biological preparations such as vaccines and emergency pharmaceutical preparations. The pre filled syringe realizes the integration of storage and administration, which can reduce the risk of drug residue waste and dispensing pollution. Its safety and convenience have been widely recognized by pharmaceutical enterprises and medical institutions, and has been gradually introduced into the packaging of more high-value preparation products. In the long run, with the development of China’s vaccine and other biopharmaceutical industries, the increase of various innovative drugs, and the further improvement of the recognition of pre encapsulated syringes, it is expected that the demand for pre encapsulated syringes will maintain a growth trend in the future.
Diabetes as a global chronic disease, the number of patients worldwide continues to grow. China’s huge population base, which has been increasing with the improvement of material life in recent years, has seen an increasing incidence rate of diabetes. Insulin as an important drug for diabetes treatment, China’s insulin market is very large, and the market scale of insulin syringes has been continuously expanding.
With the development of material technology, more and more special plastic packaging is used in the packaging of oral liquid and injection. Among them, cycloolefin copolymer and cycloolefin polymer (COC, COP) have broad market prospects. Cycloolefin copolymers and cycloolefin polymers (COC, COP) can achieve ultra-high purity, and their inert properties can prevent interference with reaction and analysis. At the same time, their optical properties can reach 91% clarity, and have excellent UV transparency and low birefringence. It has a high degree of design freedom and can be used for injection molding. The extractables and extractables are very low. With its non-polar and low reactive surface, it has become a reliable choice for drug packaging. In addition to complying with the Pharmacopoeia of the United States, Europe and Japan, COC and cop materials have also obtained the DMF filing number of FDA, and COC and cop materials have also passed the filing of the national drug examination center.
This investment project has good market development space, and has great market development potential and good return prospects in the future. The construction of this project will expand the production capacity of pre filled packaging materials, form scale effect, improve the profit level of the company and enhance the profitability of the company, so as to promote the sustainable development of the company and further improve the core competitiveness of the company. (VI) feasibility analysis of project construction
