Guilin Layn Natural Ingredients Corp(002166) shares soared after sun signed a multi million dollar agreement of intent on entrusted processing with an American industrial marijuana product provider.
On March 28, Guilin Layn Natural Ingredients Corp(002166) disclosed the information of research activities. Recently, many major institutions, including e fund, China Europe Fund, Wells Fargo fund and Harvest Fund, have conducted joint research, and industrial marijuana has become the focus of their attention.
It is reported that the United States has plans to further promote the legalization of marijuana Guilin Layn Natural Ingredients Corp(002166) said that according to the company’s understanding, some foreign customers are continuously developing CBD (i.e. “cannabinoid”, which is a pure natural ingredient extracted from cannabis plant) terminal products to prepare for the rapid launch of corresponding CBD products after the opening of FDA (i.e. “U.S. Food and Drug Administration”). The company believes that at present, the downstream market still maintains a positive and optimistic attitude towards the industrial marijuana industry, and the demand continues to exist.
a large number of famous institutions gather for investigation
It is disclosed that from March 22 to 25, e fund, GF fund, Jingshun Great Wall, China Europe Fund, Huabao fund, Ping An Securities, Orient Securities Company Limited(600958) asset management, Wells Fargo fund, Harvest Fund and other institutions participated in Guilin Layn Natural Ingredients Corp(002166) related teleconferences and research.
According to the semi annual report of 2021, Guilin Layn Natural Ingredients Corp(002166) is mainly engaged in the production and operation of natural health products. The main products are natural plant extract products such as Siraitia grosvenorii extract and stevia extract, as well as natural Chinese herbal medicine extract products.
It is reported that plant extract is a product formed by taking plants as raw materials and through the physical and manual extraction and separation process according to the use purpose of customers to obtain and concentrate one or more effective components in plants or natural Chinese herbal medicines without changing the structure of their effective components.
Industrial marijuana is one of the main products, and its application fields involve medicine, food and beverage, skin care products, cosmetics and pet products.
In response to the question “how is the progress of the industrial marijuana project and the main objectives and plans of the project in 2022”, the person in charge of Guilin Layn Natural Ingredients Corp(002166) said that at present, the company is making every effort to overcome the impact of the epidemic and actively organize relevant technicians to go to the United States to assist in equipment commissioning and mass production preparation. It is expected that the formal mass production will be reached before the first half of this year, and the breakeven of industrial cannabis business will be achieved in 2022.
Guilin Layn Natural Ingredients Corp(002166) said that the company’s CBD extraction plant has the advantage of scale. Due to the lack of plant extraction industry in the United States, local industrial marijuana extraction enterprises mostly exist in the form of laboratories or small factories, and the industry lacks manufacturers for industrial production and large-scale supply. Therefore, the establishment of the company’s factory effectively makes up for the gap in the supply link of stable extraction raw materials in the local industrial marijuana industry, and effectively connects the upstream and downstream of the industrial marijuana industry chain. Secondly, the company has mastered advanced extraction technology and process. The equipment of industrial hemp extraction plant is customized in China. After formal mass production, it will realize full-automatic extraction, which has advantages in extraction efficiency and cost control.
In addition, Guilin Layn Natural Ingredients Corp(002166) said that the company has customers in more than 60 countries and regions around the world, covering many industries such as food, beverage, medicine and health care, which highly coincides with the application fields of industrial marijuana extraction products, which is conducive to the market expansion and customer storage of the company’s team in the United States.
sign overseas orders, harvest 4 limit
On March 21, Guilin Layn Natural Ingredients Corp(002166) disclosed that its subsidiary hemprise, LLC (hereinafter referred to as “hemprise”) had signed an agreement of intent on entrusted processing with an American industrial marijuana product provider (hereinafter referred to as “company a”).
According to the data, company a is a mainstream enterprise in the global industrial cannabis market, focusing on providing cannabis derivatives and cannabis diphenol products for the health care sector.
Thus, Guilin Layn Natural Ingredients Corp(002166) share price set off a round of sharp rise, and won 4 limit in 6 trading days.
According to the review announcement, in 2019, Guilin Layn Natural Ingredients Corp(002166) decided to invest in the construction of “industrial marijuana extraction and application engineering construction project” in the United States. In October 2021, Guilin Layn Natural Ingredients Corp(002166) industrial hemp extraction plant was completed and put into trial operation.
According to the recently signed agreement of intent on entrusted processing, it is planned that from August to December 2022, company a will entrust hemprise to process 500000 pounds (1 pound = 0.454kg, about 227 tons) of industrial cannabis raw materials. The specific start date of the agreement may be earlier than August, depending on the official mass production time of hemprise factory; Hemprise will process the raw materials into high-purity CBD crystals or powders according to its specifications and provide them to company A. the transportation expenses of raw materials and products will be borne by company A. the raw materials provided by company a will meet the requirements of hemprise.
Guilin Layn Natural Ingredients Corp(002166) said that according to the unit price range of processing fee per pound agreed in this agreement, the company preliminarily estimated that the amount of processing fee under this agreement would exceed US $2.55 million and the maximum would not exceed US $5.7 million. The specific transaction amount will be determined according to the content of raw materials, product purity, actual recovery rate and other factors.
In the information of research activities, Guilin Layn Natural Ingredients Corp(002166) in response to the questions of institutional investors, said that the intent agreement of industrial marijuana signed by the company this time is mainly to process 227 tons of industrial marijuana raw materials on behalf of customers. It is preliminarily estimated that the processing fee of this agreement is between us $2.55 million and US $5.7 million. That is, the processing fee per ton of industrial hemp raw materials is expected to be more than 10000 US dollars. Compared with the current sales price of CBD extraction products in the US market, the processing income this time is not less than that of the company’s own industrial hemp extraction business.
a-share listed companies have arranged
\u3000\u3000 Shanghai Shunho New Materials Technology Co.Ltd(002565)
In October 2021, Yunnan Lvxin Biological Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Shanghai Shunho New Materials Technology Co.Ltd(002565) received the industrial marijuana processing license of Yunnan Province issued by Zhanyi branch of Qujing Public Security Bureau.
After obtaining the industrial marijuana processing license, Yunnan Lvxin will carry out legal processing, extraction, technical research and export of raw materials such as cannabis diphenol (CBD) and full spectrum oil in industrial marijuana in China. At present, Yunnan Lvxin has the whole industrial chain layout of industrial marijuana planting, CBD extraction and downstream application. In the future, the company will carry out exploration and application in downstream fields such as food, health products, biopharmaceuticals, new tobacco and daily chemicals in legal areas.
\u3000\u3000 Chengzhi Co.Ltd(000990)
Chengzhi Co.Ltd(000990) 3 on March 21, the company said on the investor interaction platform that the trial production preparation of the company has been basically completed, and the trial production and processing license application can be carried out after the factory of the industrial marijuana project is officially delivered. Chengzhi Hanmeng has actively explored and reserved in product development and application technology, and obtained relevant independent intellectual property rights. Relevant customers are in contact.
The products produced after the completion of the project can be applied to biomedicine, daily chemicals, food and beverage and other industrial fields worldwide according to the relevant laws and regulations of different countries.
\u3000\u3000 Hunan Fangsheng Pharmaceutical Co.Ltd(603998)
According to the semi annual report of 2021, Hunan Fangsheng Pharmaceutical Co.Ltd(603998) located in Chuxiong, Yunnan Province, the industrial hemp processing base is expected to be completed within this year, the production line will be debugged, and the trial production will be started in due time; During the reporting period, the company completed the cultivation of about 4000 mu of industrial marijuana, and other production and scientific research related to industrial marijuana were progressing smoothly. At the same time, Hunan Fangsheng Pharmaceutical Co.Ltd(603998) and its subsidiaries have obtained a number of patents in the field of industrial marijuana, such as “device for separating wax from industrial marijuana extract” and “a standardized cultivation industrial marijuana seedling shed”.
In December 2021, Hunan Fangsheng Pharmaceutical Co.Ltd(603998) and Hong Kong Tongsheng jointly increased the capital of Fuya biological, a wholly-owned subsidiary of Hunan Fangsheng Pharmaceutical Co.Ltd(603998) and Hong Kong Tongsheng contributed with its proprietary technology of industrial marijuana extraction to further promote the development of industrial marijuana technology and business.
\u3000\u3000 Dezhan Healthcare Company Limited(000813)
Dezhan Healthcare Company Limited(000813) recently said on the investor interaction platform that in recent years, the company has actively promoted the diversified development model and arranged biological polypeptide products, industrial marijuana food and beverage, industrial marijuana cosmetics and other fields. The company and Hanyi Biotechnology (Beijing) Co., Ltd., a subsidiary of Hanma group, jointly established Meirui wa Na food and Beverage Co., Ltd., Beijing Meirui wa Na Cosmetics Co., Ltd. and Deyi Pharmaceutical Co., Ltd.
