Securities code: Xiamen Kingdomway Group Company(002626) securities abbreviation: Xiamen Kingdomway Group Company(002626) Announcement No.: 2022011 Xiamen Kingdomway Group Company(002626)
Announcement of abnormal fluctuations in stock trading
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 major omissions.
Special tips:
1. The company does not need to disclose the performance forecast. The company’s third quarter report of 2021 was disclosed on October 30, 2021. From the beginning of 2021 to the end of the third quarter, the operating revenue was 270459805228 yuan, an increase of 5.29% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 66528707659 yuan, a decrease of 16.24% over the same period last year. The company’s main business has developed steadily, and there has been no significant change in production and operation. Please pay attention to investment risks.
2. At present, the project has only completed the project approval and filing. At present, it is in the primary stage of pharmaceutical reconstruction and expansion projects. Before starting construction, it is also necessary to go through the relevant procedures of environmental protection, safe production and energy evaluation according to law. There are risks such as not being approved by the relevant government departments, but taking a long time. Please pay attention to investment risks. 3. The project is currently in the preparatory stage, and there is a risk of uncertainty in the time of equipment installation, commissioning, trial production and other links in the future. Please pay attention to investment risks.
4. Affected by external factors such as epidemic situation change, market demand change, market competition, technology change, macro policy and industry policy, as well as internal factors such as the company’s internal management, process technology and construction funds, the investment plan of the project may be terminated, partially terminated, the investment plan may be changed and the income may not meet the expected risk. Please pay attention to investment risks.
5. At present, the company has no orders for intermediate P2, and there is no indication that orders can be obtained in the future. If intermediate P2 cannot be sold directly or indirectly to Pfizer and its related companies in the industrial chain, or to the manufacturers of related generic drugs (if any), the project investment plan may be terminated, partially terminated Risk of investment plan change and income not reaching the expectation.
6. At present, intermediate P2 has not been commercially produced in the company and is not expected to have a significant impact on the company’s performance in 2022. If the downstream demand decreases in the future, or the supply of other manufacturers in the industry increases significantly, there may be an oversupply of products, and the market situation and income after production in the future are uncertain. 1、 Introduction to abnormal fluctuations in stock trading
Xiamen Kingdomway Group Company(002626) (hereinafter referred to as ” Xiamen Kingdomway Group Company(002626) ” or “the company”) stock (stock abbreviation: Xiamen Kingdomway Group Company(002626) , stock code: Xiamen Kingdomway Group Company(002626) ) trading price within two consecutive trading days (March 3 and March 4, 2022), the cumulative deviation of closing price increase exceeds 20%, which belongs to abnormal fluctuation of stock trading according to relevant provisions of trading rules of Shenzhen Stock Exchange.
2、 Description of the company’s concern and verification
In view of the abnormal fluctuation of the company’s stock trading, the board of directors of the company has verified with the company, the controlling shareholder and the actual controller. The relevant verification is explained as follows:
1. There is no need to correct or supplement the information disclosed by the company in the early stage;
2. The company has not found any unpublished material information that may or has had a significant impact on the stock trading price of the company reported by the public media recently;
3. The company’s recent operation is normal, and the internal and external business environment has not changed significantly;
4. After verification, the company, the controlling shareholder and the actual controller do not have any major matters that should be disclosed but not disclosed about the company, nor do they have any major matters in the planning stage;
5. After verification, the controlling shareholder and the actual controller did not buy or sell the company’s shares during the abnormal fluctuation of stock trading;
6. Inner Mongolia Xiamen Kingdomway Group Company(002626) Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the company, obtained the project filing notice from the development and Reform Commission of Tuoketuo County, Hohhot City, Inner Mongolia Autonomous Region on February 28, 2022. The project name is “reconstruction and expansion project of Inner Mongolia Xiamen Kingdomway Group Company(002626) Pharmaceutical Co., Ltd. with an annual output of 50t palovide intermediate P2”. The project is currently in the preparatory stage, The details are as follows:
(1) Basic information of the project
Project Name: P2 reconstruction and expansion project of Inner Mongolia Xiamen Kingdomway Group Company(002626) Pharmaceutical Co., Ltd. with an annual output of 50t palovide intermediate (hereinafter referred to as “the project” or “P2 project”)
Organizer: Inner Mongolia Xiamen Kingdomway Group Company(002626) Pharmaceutical Co., Ltd
Construction site: original plant area of Inner Mongolia Xiamen Kingdomway Group Company(002626) Pharmaceutical Co., Ltd
Specific product name involved: palovide intermediate P2 (hereinafter referred to as “intermediate P2”)
Cultural name in intermediate P2: (1R, 2S, 5S) – 6,6-dimethyl-3-azabicyclo [3.1.0] hexane-2-carboxylic acid methyl ester hydrochloride
Intermediate P2 CAS No.: 56545677-1
Date of obtaining project filing notice: February 28, 2022
Approval procedures still to be performed: the project is a newly developed product of the company. At present, the project filing notice issued by the development and Reform Commission of Tuoketuo County, Hohhot City, Inner Mongolia Autonomous Region has been obtained, and the EIA report is being prepared. At present, the project is in the primary stage of pharmaceutical reconstruction and expansion projects, and the relevant procedures of environmental protection, safety production and energy evaluation need to be handled according to law. There are risks that the project has not been approved by relevant government departments, and risks that it has been approved by relevant government departments but takes a long time. In addition, the future plant transformation, equipment installation and commissioning, trial production and other links will also take a long time.
Proposed investment amount: 24 million yuan
Construction content: most of the main equipment of the project are used equipment, the rest are new equipment, and all the production workshops are used.
Construction period: 18 months
Estimated production time: the project is currently in the preparatory stage. The company is preparing an environmental impact assessment report to analyze the future downstream market demand. Up to now, there is no clear conclusion; At the same time, there are risks such as not being approved by relevant government departments, but it takes a long time to pass the approval, so it is impossible to accurately estimate the time of reaching production for the time being.
Use of intermediate P2 and corresponding terminal drugs: the covid-19 oral drug paxlovid developed by Pfizer is composed of covid-19 virus 3CL protease inhibitor nirmatrelvir (pf-07321332) and antiviral therapy ritonavir. Namatvir blocks the activity of covid-19 virus 3CL protease and prevents the subsequent RNA replication process of the virus. Its structural formula is shown in the following figure:
According to Pfizer’s PCT patent for palovide synthesis process (Patent No.: Wo 2021 / 250648a1), intermediate P2 is the front-end key synthesis intermediate for the synthesis of palovide API nirmatrelvir (pf-07321332), and its efficient synthesis is of great significance for the application of the drug.
Through the reverse synthesis analysis of nimatvir, it is also considered that the compound is obtained from the following three fragments through amide condensation reaction.
It can be seen that intermediate P2 is the key synthetic intermediate of nimatovir (pf-07321332), the main antiviral component of covid-19 oral therapeutic drug paxlovid.
Simplified synthesis process flow chart of intermediate P2 of the company:
Intermediate P2 has no compound patent and no patent infringement. Its required raw materials are general chemical raw materials that are easy to purchase in the market and do not involve patent or authorization. This process has the advantages of easy availability of raw materials, high yield, simple reaction conditions and low production cost.
(2) R & D process
On November 5, 2021, Pfizer announced the results of paxlovid antiviral therapy, and on November 16
Submit an emergency authorization application to FDA. On December 22, Pfizer announced that paxlovid’s emergency authorization application was approved by FDA. The R & D personnel of the company consulted the cutting-edge technical information of covid-19 therapeutic drugs through open channels and began the process development of intermediate P2 in September 2021; From December 2021 to February 2022, improve the research on production process and analytical methods, and set the standards and technical requirements of target products according to the conventional practice of pharmaceutical intermediate development; The project filing notice was obtained from the development and Reform Commission of Tuoketuo County, Inner Mongolia on February 28, 2022. Up to now, the R & D investment is about 2.5 million yuan.
At present, there is no order in hand for the project, and there is no indication that orders can be obtained in the future. The target customers to be developed by the company are divided into two categories: one is qualified suppliers authorized by Pfizer and the other is non regulatory market traders. Note: Pfizer recently announced that it has signed a license agreement with the drug patent Union (MPP) supported by the United Nations (the Agreement applies to 95 countries and covers about 53% of the world’s population), allowing dozens of low-income countries to produce and copy their anti covid-19 oral drugs, and judging the above areas as illegal market regulation.
(3) Implementation of review procedures and information disclosure obligations
According to the articles of association, rules of procedure of the board of directors, working rules of the general manager and other relevant systems, the investment amount of the project does not meet the deliberation standard of the board of directors, and the relevant investment matters are within the decision-making authority of the general manager of the company. According to the Listing Rules of Shenzhen Stock Exchange (revised in January 2022) and relevant laws and regulations, the project did not meet the standard of temporary announcement, so the relevant information was not disclosed through temporary announcement. Investors are kindly requested to pay attention to investment risks, make prudent decisions and invest rationally.
3、 The company does not have any information that should be disclosed but not disclosed
The board of directors of the company confirms that the company has no undisclosed matters or planning, negotiation, intention, agreement, etc. related to the matters that should be disclosed in accordance with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange; The board of directors has not been informed that the company has undisclosed information that has a great impact on the trading price of the company’s shares and their derivatives that should be disclosed in accordance with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange; The information disclosed by the company in the early stage does not need to be corrected or supplemented.
4、 Risk tips
1. The company does not violate the fair disclosure of information.
2. The company does not need to disclose the performance forecast. The company’s third quarter report of 2021 was disclosed on October 30, 2021. From the beginning of 2021 to the end of the third quarter, the operating revenue was 270459805228, a decrease of 16.24% over the same period of the previous year. The company’s main business has developed steadily, and there has been no significant change in production and operation. Please pay attention to investment risks.
3. At present, the project has only completed the project approval and filing. At present, it is in the primary stage of pharmaceutical reconstruction and expansion projects. Before starting construction, it is also necessary to go through the relevant procedures of environmental protection, safe production and energy evaluation according to law. There are risks that it has not been approved by the relevant government departments, but it takes a long time. Please pay attention to investment risks. 4. The project is currently in the preparatory stage, and there is a risk of uncertainty in the time of equipment installation, commissioning, trial production and other links in the future. Please pay attention to investment risks.
5. Affected by external factors such as epidemic situation change, market demand change, market competition, technology change, macro policy and industry policy, as well as internal factors such as the company’s internal management, process technology and construction funds, the investment plan of the project may be terminated, partially terminated, the investment plan may be changed and the income may not meet the expected risk. Please pay attention to investment risks.
6. The company has no orders for intermediate P2 at present, and there is no indication that orders can be obtained in the future. If intermediate P2 cannot be sold directly or indirectly to Pfizer and its related companies in the industrial chain after it is completed and put into operation, the project investment plan may be terminated, partially terminated Risk of investment plan change and income not reaching the expectation.
7. At present, intermediate P2 has not been commercially produced in the company and is not expected to have a significant impact on the company’s performance in 2022. If the downstream demand decreases in the future, or the supply of other manufacturers in the industry increases significantly, there may be an oversupply of products, and the market situation and income after production in the future are uncertain. 8. The company solemnly reminds investors that securities times, securities daily and cninfo are the information disclosure media selected by the company, and all information of the company shall be subject to the information published in the above designated media. The company will strictly abide by laws and regulations, earnestly fulfill the obligation of information disclosure and do a good job of information disclosure in time. Please fully understand the stock market risks and the risk factors disclosed by the company, make rational investment and pay attention to risks. It is hereby announced.
Xiamen Kingdomway Group Company(002626) board of directors
March 4, 2002
