recently, because the nicotinic acid products of its wholly-owned subsidiary can be used for NMN production, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) caught the east wind of the good news of NMN concept, and the stock price rose one after another
Recently, the State Food and Drug Administration announced the information that NMN substances can be used as new raw materials for cosmetics. The filing company is Yuyao lefosbon Health Technology Co., Ltd., a wholly-owned subsidiary of gene harbor, a well-known enterprise of NMN track.
As soon as this news came out, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) who got a ride on the NMN concept won two “20cm” price limits on March 18 and 21, with a cumulative increase of more than 44% in the two trading days.
However, at the opening on March 22, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) fell by more than 5% and finally closed at 4.67 yuan / share, down 9.5%.
rub the concept of “not old medicine”
In 2021, China’s State Administration of Market Supervision issued a letter on the investigation of illegal operation of “ageless drugs”, which clearly restricted the food production and operation of NMN in China, and conducted a comprehensive investigation of relevant operators, so that the whole NMN track fell into a cold winter.
However, the above regulation may have a “warming” trend. Recently, the State Food and Drug Administration announced the information that NMN substances can be used as new raw materials for cosmetics.
Source: State Food and Drug Administration
It is reported that the full name of NMN“ β- Nicotinamide mononucleotide “is the precursor of NAD + (coenzyme I), which is closely related to human energy metabolism, glycolysis, DNA replication and other activities. Therefore, NMN, which can improve the level of NAD + in human body, is considered to be a product with anti-aging function. At present, NMN is divided into health products, and the characteristic of health products industry is that it has the dual attributes of medicine and food.
Some institutions pointed out that the scale of China’s functional food market will exceed 600 billion this year. Among them, NMN, as a subdivided variety, has just started in the current market, and the market scale may exceed 100 billion in the future.
The reason why Hunan Er-Kang Pharmaceutical Co.Ltd(300267) can rub against the concept of “not old medicine” is that the nicotinic acid (vitamin B3) products of its wholly-owned subsidiary have passed the GMP inspection and can be used in NMN production.
But in fact, it seems that the NMN project of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) has not been put into operation. It is reported that the original business of wuzhikang was concentrated in July 2020. At the time of acquisition, the net assets of Wellcome reached 54.82 million yuan. At the end of 2020 and the end of the second quarter of 2021, the book net assets of Wellcome remained at 54.82 million yuan without any change.
Among other companies that “rub” the concept of NMN, Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) also did not come up with relevant substantive products Beijing Sl Pharmaceutical Co.Ltd(002038) of NMN products mainly appear in gifts Teyi Pharmaceutical Group Co.Ltd(002728) also said in the investor interaction platform that although its NMN product has been approved, it has not been produced yet.
It should be noted that the NMN products launched in China in the current period are mainly health products, which are sold through tmall global and other cross-border platforms. Whether they are effective is still controversial. The FDA’s food related certification does not mean that it recognizes the effectiveness of “Immortality”, but only recognizes the safety of NMN in food related fieldsP align = “center” lack of strong performance support
Although Hunan Er-Kang Pharmaceutical Co.Ltd(300267) share price rose sharply depending on the NMN concept, in its latest disclosed performance report, it suffered significant losses due to asset accrual and other reasons.
Hunan Er-Kang Pharmaceutical Co.Ltd(300267) was established in October 2003 and listed on Shenzhen Stock Exchange in 2011. It is a modern pharmaceutical enterprise completely in accordance with GMP standards and management.
At present, its main business is concentrated in the three fields of pharmaceutical excipients, APIs and finished drugs. It is a leading pharmaceutical excipients enterprise with large production scale and complete varieties in China. It has more than 120 varieties of pharmaceutical excipients and more than 70 varieties of APIs, which are used in injection, oral preparation, granule, capsule and other fields.
Before 2017, the company’s performance grew steadily, but the truth was not made public until the issue of financial fraud surfaced: the previous bright performance statements had been “whitewashed”.
According to the announcement, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) falsely increased its revenue by more than 18 million and its net profit by more than 15 million in 2015. In 2016, the company falsely increased its revenue by more than 250 million and its net profit by more than 230 million. In 2019, more than 800 investors sued for Hunan Er-Kang Pharmaceutical Co.Ltd(300267) compensation on the grounds of Securities Misrepresentation liability dispute, with a cumulative litigation amount of more than 500 million yuan.
As of December 2020, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) involved 936 cases have been adjudicated or settled through mediation and ruling. According to the results of judgment and mediation ruling, the company shall compensate the plaintiffs for a total loss of more than 81 million yuan.
After the financial fraud surfaced, the performance of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) also began to decline all the way. From 2018 to 2020, the company’s revenue was 2.354 billion yuan, 2.744 billion yuan and 2.382 billion yuan respectively, but its net profit was only 217 million yuan, 162 million yuan and 202 million yuan respectively.
In the latest performance forecast of 3 Dongjiang Environmental Company Limited(002672) 021, the loss in 2021 is expected to be 650 million yuan to 820 million yuan. This is not only the first loss of the company since its listing in 2011, but also the lower limit of its expected loss, which is far greater than the total net profit of 578 million yuan in the three years from 2018 to 2020.
In this regard, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) said that the main reason for the huge loss of performance was the provision for impairment of related assets such as the asset group of modified starch and starch capsule project and the inventory of modified starch and starch capsule series. The provision for impairment in 2021 is expected to be 800 million yuan to 950 million yuan.
Although from the perspective of revenue, the modified starch and starch capsule project has little impact on the revenue of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) . According to the data, in 2021, the company achieved a sales revenue of 344255 million yuan for modified starch and 6.3426 million yuan for starch capsules. The total sales amount of modified starch and starch capsules decreased by 6.77% compared with the previous year, and there was no significant change in orders this year compared with the previous year.
However, the modified starch and starch capsule project is the focus of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) in the market in recent years. According to the announcement in March 2016, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) the project with an annual output of 100 billion starch plant hollow capsules and 30000 tons of modified starch has a total investment of 2.506 billion yuan. Then, the project reached the expected usable state on April 30, 2020, but only achieved a sales revenue of 43.729 million yuan and a loss of 483888 million yuan.
Such a huge amount of assets was withdrawn, and then received a letter of concern issued by the Shenzhen Stock Exchange, requiring it to make a detailed disclosure on the significant impairment of assets Hunan Er-Kang Pharmaceutical Co.Ltd(300267) in his reply, he frankly stated the current difficulties in promoting in the Chinese and international markets, as well as the difficulties in transforming new products from R & D to productivity, and said that the sales of modified starch and starch capsule series products accounted for a relatively small proportion, which had no significant impact on the production and operation of the company.
report false accounts and copy signature
In addition to performance losses, recently Hunan Er-Kang Pharmaceutical Co.Ltd(300267) the employees of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) were sentenced to four years’ probation for voluntarily surrendering to the case for embezzling 2.51 million yuan of the company’s funds.
According to investigation, from August 2019 to September 2021, the defendant Huang took advantage of his position as the manager of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) administration department to make false reimbursement eight times by forging sales contracts and receipts with three building materials companies, imitating the signature of Hunan Er-Kang Pharmaceutical Co.Ltd(300267) administrative director Shuai or logging into Shuai’s OA trial system to prepare payment request, so as to fabricate the fact of payment for construction materials, As a result, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) paid the above three Invoicing companies eight times, totaling about 2.5108 million yuan.
Tian Moumou, the actual person in charge of the above three Invoicing companies, issued corresponding invoices to Hunan Er-Kang Pharmaceutical Co.Ltd(300267) after receiving the payment for goods. After deducting the tax point of 5% or 8% of the payment for goods, he transferred the remaining 2.3 million yuan of payment for goods to the bank account designated by the defendant Huang. The defendant Huang successively paid a thank-you fee of 105000 yuan to Tian Moumou.
After the case, the defendant Huang has returned all the stolen money of 2510810 yuan, and the victim unit Hunan Er-Kang Pharmaceutical Co.Ltd(300267) expressed understanding for the defendant Huang’s behavior. Later, in the first instance judgment of the court, the defendant Huang committed the crime of duty embezzlement and was sentenced to fixed-term imprisonment of three years, suspended for four years and fined 20000 yuan.
According to the latest data of tianyancha, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) currently has 1079 self risks and 451 peripheral risks. In addition, according to the reporter’s statistics, as of the third quarter of 2021, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) a total of about 1.114 billion shares were pledged, accounting for about 53.52% of the total share capital.
Data source: Third Quarterly Report of 2021
In addition, affected by the performance decline, financial turmoil and other events, Hunan Er-Kang Pharmaceutical Co.Ltd(300267) ‘s share price suffered a serious impact. Since 2016, the decline of the company’s share price has not improved. Today’s closing price has dropped 68.59% compared with the highest share price in history of 14.87 yuan / share.
