On the evening of December 29, Changjiangrunfa Health Industry Co.Ltd(002435) issued the announcement of the resolution of the fifth meeting of the Fifth Board of directors and the special explanation of the board of directors on the elimination of the impact of the matters involved in the qualified opinions of the 2019 and 2020 audit reports. According to the announcement, after various efforts, the company’s control over Huaxin pharmaceutical has been withdrawn, and it has decided to reintegrate Huaxin pharmaceutical into the scope of the company’s consolidated statements from December 31, 2021.
The announcement shows that the board of directors and management of the company attach great importance to the matters involved in the qualified opinions in the 2019 and 2020 audit reports, and actively take measures to solve and eliminate the impact of the matters mentioned in the qualified opinions. The board of directors of the company considered that the impact of the matters mentioned in the qualified opinions of the 2019 and 2020 audit reports had been eliminated, and prepared the special description on the elimination of the impact of the matters involved in the qualified opinions of the 2019 and 2020 audit reports, and Hexin Certified Public Accountants (special general partnership) issued a special audit report on this. The board of Directors voted 9 in favor of the proposal on the elimination of the impact of matters involved in the qualified opinions of the company’s 2019 and 2020 audit reports.
It is reported that Huaxin pharmaceutical plays an important role in the layout of Changjiangrunfa Health Industry Co.Ltd(002435) health industry. Huaxin pharmaceutical is a modern comprehensive pharmaceutical group integrating scientific research and development and drug manufacturing. Donkey hide gelatin, antler glue and tortoise shell glue are its main products. In addition, Huaxin pharmaceutical also has many advantageous varieties of traditional Chinese medicine, such as Longxiang Pingchuan capsule, donkey hide gelatin effervescent granules, Yizhong Shengxue capsule (exclusive specification), Zidan Huoxue Capsule, etc. Among them: donkey hide gelatin effervescent granules, Huaxin pharmaceutical, as the original research unit, has the invention patent of the production process; Longxiang Pingchuan capsule is an exclusive secondary protected variety of traditional Chinese medicine.
Some research institutions pointed out that the development of traditional Chinese medicine consumer goods has ushered in a great opportunity. Since 2021, the price of upstream Chinese herbal medicines has continued to rise, and there is a certain expectation of price increase for upstream raw materials + downstream products in the future; Industry channel inventory clearing is coming to an end, and the superposition of price increase expectations has accelerated the downstream inventory turnover. Therefore, Huaxin pharmaceutical will also benefit from the rise in the price of traditional Chinese medicine.
The company said that so far, Huaxin pharmaceutical storm will come to a successful end. Huaxin pharmaceutical, which was out of control before, was re included in the scope of the company’s consolidated statements, and the company’s traditional Chinese medicine sector is also expected to usher in new opportunities for development.
(Shanghai Securities News · China Securities Network)
