Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896)
On the use of funds raised by public issuance of convertible corporate bonds
Feasibility analysis report
1、 Overview of the use of the raised funds
The total amount of funds raised from the public offering of convertible corporate bonds is no more than 398 million yuan (including 398 million yuan). After deducting the issuance expenses, the funds raised are intended to be used for the construction project of health food phase II of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park and the construction project of R & D and testing center of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park. The construction project of health food phase II of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) health industrial park includes two subprojects, as follows:
Unit: 10000 yuan
Sequence project name sub project name total amount of funds to be raised for project investment
Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park health food II 24030972403000 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park warranty construction project (capital construction)
1 health food phase II construction project Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park health food II
Phase I construction project (production line construction) 1179588912000
2 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park R & D and testing center construction project 763703665000
Total 43463883980000
According to the market situation, if Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) (hereinafter referred to as ” Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) ” and “the company”) needs to invest in the above proposed investment projects in advance before the raised funds are in place, the company will use the self raised funds to invest, and the raised funds will replace the above self raised funds after the raised funds are in place. If the funds raised in this offering cannot meet the needs of project investment, the fund gap shall be solved through self financing by the company.
2、 Relevant background of the implementation of the investment project with raised funds
(I) people pay more and more attention to health
With the accelerating pace of life, people’s physiological and psychological functions are suffering from high-intensity impact, and the number of sub-health people is increasing day by day. In order to avoid or reduce the harm of sub-health to the body and improve human physiological function, people gradually strengthen their health awareness, gradually improve the acceptance of health food, and the recognition of health food industry is increasing day by day.
(II) the growth of Chinese residents’ income drives the development of health food market
With the increasing national strength of China, the income and purchasing power of residents have increased. The increase of income also makes people’s consumption mode gradually change from the survival consumption of food, clothing, housing and transportation to comprehensive consumption, which drives the people’s demand for health food to further increase, and then promotes the steady development of health food market.
(III) population aging will continue to promote the expansion of health food market
At the end of the year, China’s aging population has gradually increased, accounting for 20.065 million, accounting for the total aging population of China; The function of human body will gradually decline with the increase of age. The elderly pursue health more urgently than the young, and the expenditure on health care is higher; The aging population will continue to promote the expansion of the health food market.
Data source: wind data.
(IV) impact of covid-19 pneumonia
In early 2020, the outbreak of New Coronavirus pneumonia broke out. In response to the epidemic, the national Wei Jian administration and the State Administration of traditional Chinese medicine have issued several versions of the diagnosis and treatment plan for New Coronavirus pneumonia, focusing on treating Chinese medicine as a treatment plan and constantly improving it. It is clear that the diagnosis and treatment can be carried out in all parts of the country according to the condition, local climate characteristics and different physical conditions, and a variety of Chinese herbal pieces are recommended for the treatment and recovery of New Coronavirus pneumonia patients. Chinese medicine has achieved good results in the treatment of New Coronavirus pneumonia and has been widely recognized, which is conducive to the long-term development of the industry.
(V) relevant industrial policies support the development of health food industry
In recent years, in order to support and encourage the innovation and development of health food industry, the state has promulgated a series of industrial policies, laws and regulations. The outline of “healthy China 2030” plan issued by the State Council in October 2016 proposed that “healthy China” will become a new development strategy. The outline formulated the national nutrition plan, which requires the comprehensive popularization of dietary nutrition knowledge, guide residents to form scientific dietary habits and promote the construction of healthy diet culture; In January 2017, the guidance on promoting the healthy development of food industry issued by the national development and Reform Commission and the Ministry of industry and information technology put forward the development direction of nutritional and health products and pointed out that it supports the development of health food; In November 2020, the CPC Central Committee issued the “suggestions of the CPC Central Committee on formulating the 14th five year plan for national economic and social development and the long-term goals for 2005”, which requires comprehensively promoting the construction of a healthy China, giving priority to the protection of people’s health, adhering to the principle of prevention first, deeply implementing the healthy China action, improving the national health promotion policy, and strengthening the national public health protection network, Provide people with all-round and full cycle health services.
As a national high-tech enterprise specializing in the breeding, cultivation, processing and sales of precious Chinese herbal medicines such as Ganoderma lucidum, Dendrobium candidum and saffron, the company has always adhered to the purpose of “serving the health, beauty and longevity of the people and creating a century of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) “, deeply cultivated the health food industry and accumulated rich development experience.
Through the construction of this fund-raising project, the company will closely follow the development trend of the industry and the change of market demand. On the basis of the accumulation of existing products and technologies, the company will concentrate advantageous resources, increase R & D investment in the field of health food and traditional Chinese medicine decoction pieces, enhance the R & D and innovation ability of the company, improve the transformation efficiency of research and development achievements, develop new high-quality traditional Chinese medicine products, enrich the product structure in multiple dimensions, and realize the sustainable development of the company; Expand the production capacity of health food to better meet the needs of consumers for high-quality products, so as to comprehensively enhance the competitiveness and influence of enterprises.
3、 Introduction to investment projects with raised funds
(I) Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park health food phase II construction project
1. Project overview
In order to meet the demand for health food and cultivate new profit growth points, the company plans to invest 331.5 million yuan for the phase II construction project of health food in Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park.
After the completion of 20 tons of new food production capacity, the company will effectively promote the further development of health care projects.
2. Necessity analysis of project implementation
(1) Seize the development opportunities of the industry and realize the rapid development of the company
In modern society, the pace of life and work is fast, the pressure is high and the competition is fierce. People are easy to produce body stress response, resulting in neurological and endocrine dysfunction, resulting in the decline of human immune mechanism, which increases the difficulty of maintaining and improving the health of the human body. At the same time, with the strengthening of Chinese consumers’ health awareness and the improvement of living standards, people have higher and higher requirements for the quality of life, pay more attention to good physical condition, and promote people’s increasing demand for physical health care. They are willing and able to invest more in medical care. The implementation of the project will help the company to further seize the market opportunities of the health food industry and realize the rapid development of the company.
(2) Optimize the company’s product structure and enhance the company’s competitiveness
With the publicity and popularization of the concept of health care, people’s understanding of physical health care, health maintenance and other related knowledge is deepening, consumers’ understanding of “health products” is becoming more and more objective and rational, and “health products” are gradually evolving from “health medicine” to “health food”, and health consumption has gradually belonged to the regular consumer category of people’s daily life. At present, the production line of Ganoderma lucidum series products is mainly powder and granule, and the capacity planning of tablet products is relatively insufficient. In order to better meet the diversified product needs of consumers, the company plans to implement this project to increase the production capacity of tablet products. The implementation of the project is conducive to optimizing the product structure of the company, laying a good foundation for the sustainable and stable development of the company, so as to enhance the competitiveness of the enterprise.
(3) Enrich the company’s product line and expand new profit growth points
At present, the company has fully mastered the whole process core technology from Ganoderma lucidum breeding, cultivation to processing. Among them, the company’s Ganoderma lucidum spore wall breaking process and spore powder wall removal technology can provide natural process and technical advantages for the further deep processing and extension of Ganoderma lucidum spore powder into the field of Ganoderma lucidum spore oil. The newly developed Ganoderma lucidum spore oil products of the company effectively concentrate a variety of effective active ingredients such as triterpenoid Ganoderma lucidum acid, unsaturated fatty acid, organic germanium and trace elements in the protoplasm of Ganoderma lucidum spore powder. After the implementation of the project, the company will increase the production capacity of 2000kg Ganoderma lucidum spore oil soft capsule, so as to further enrich the company’s product line and expand new profit growth points.
3. Feasibility analysis of project construction
(1) The company has advantages in breeding
Excellent varieties of traditional Chinese medicine play an important role in the yield, quality and efficacy of traditional Chinese medicine. At present, the company has established a rare Chinese herbal medicine germplasm resource bank, collected rare Chinese herbal medicine germplasm resources including Ganoderma lucidum, mastered wild domestication, systematic breeding, mutation, hybridization, aerospace carrying and other breeding methods and improved seed breeding technology, and established a perfect and efficient platform for breeding new varieties of Chinese herbal medicine, It is the source of excellent varieties of endangered and precious traditional Chinese medicine, provides material guarantee for downstream standardized planting, production and processing, and is conducive to the smooth implementation of the project.
(2) The company has advantages in cultivation, production and processing
Since its establishment, the company has continuously studied the growth law of Ganoderma lucidum, simulated the wild growth environment of Ganoderma lucidum, and cultivated and managed it according to the national organic product standard and the national gap standard of traditional Chinese medicine. In the whole planting process, the company adheres to the use of efficient and recyclable planting matrix, eliminates the use of chemically synthesized pesticides and hormones, and adopts the physical and biological comprehensive method of “prevention first and combination of prevention and control” to control diseases and pests, so as to effectively ensure the excellent characteristics of pollution-free, high purity and high quality of traditional Chinese medicine. The relevant products have been approved as ecological origin protection products by the General Administration of quality supervision, inspection and Quarantine of the people’s Republic of China.
In the research and development of the new technology of Ganoderma lucidum spore wall breaking, the company has created the supersonic low-temperature air flow wall breaking technology, which realizes wall breaking through the self collision of materials, which not only improves the wall breaking rate, but also avoids heavy metal pollution and material oxidation, and significantly improves the safety of products; In addition, on the basis of wall breaking, the company also invented spore powder wall removal technology to separate the wall shell remaining after wall breaking from the effective components, greatly improve the content of effective components such as Ganoderma lucidum polysaccharide and Ganoderma lucidum triterpene, and effectively improve the activity and efficacy of the product. The advantages of the company in cultivation, production and processing have laid a good foundation for the smooth implementation of the project.
(3) The company has a good market foundation
With years of cultivation and accumulation in the market of traditional Chinese medicine decoction pieces and health tonics such as Ganoderma lucidum spore powder and Dendrobium candidum, the company has been widely recognized by the society with its excellent product quality and good brand image.
In addition, on the basis of good brand advantages, the company is laying out a national market system with Ganoderma lucidum spore powder tablets as the main products. The brand positioning, promotion scheme and product packaging of Ganoderma lucidum spore powder tablet products are basically sorted out nationwide, and the urban agents in various regions are also actively and orderly recruiting and negotiating. At the same time, the company is also exploring a new sales model and establishing a more accurate data evaluation operation mode by relying on data operation tools and platforms. Good brand image and accurate marketing can not only strengthen the loyalty of the original consumer groups, but also obtain more potential customers and help the smooth digestion of the new production capacity of raised investment projects.
4. Product scheme and production scale
The project mainly produces health food tablets and capsules. The product scheme and production scale are as follows:
No. dosage form product type output (kg)
1 health food tablet wall broken Ganoderma lucidum spore powder tablet 1800000
2 health food capsule Ganoderma lucidum spore oil soft capsule 200000
Total 2000000
5. Project investment estimate
The fixed asset investment of the project is 331515600 yuan, including 2403097 million yuan of capital construction cost, 868627 million yuan of equipment and facilities purchase cost, 4.3431 million yuan of equipment and facilities installation cost and 267529 million yuan of initial working capital, totaling 358268500 yuan; It is proposed to use the raised funds of 331.5 million yuan.
6. Project filing and environmental protection
As of the issuance date of this feasibility analysis report, the filing and environmental impact assessment of the investment projects with raised funds have been completed, as follows:
Serial number project name registration code assignment EIA
1 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park health food II 211133072304-01400727 Jinhuan construction and armed readiness construction project (production line construction) 2022037
2 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) Health Industrial Park health food II 2111 Yipinhong Pharmaceutical Co.Ltd(300723) 04-019512
