At noon on April 8, Yunnan Baiyao Group Co.Ltd(000538) announced that it planned to use its own funds to repurchase 4.5-9 million shares of the company, and the repurchase amount is expected to be no more than 1.12 billion yuan.
for equity incentive
Yunnan Baiyao Group Co.Ltd(000538) plans to use its own funds to buy back the company’s shares in the way of centralized bidding or permitted by laws and regulations for the implementation of employee stock ownership plan or equity incentive plan. At present, the repurchase price of more than 350000 shares / share is less than 35000% – 38000, accounting for less than 9.04 million shares of the company’s total share capital. According to the calculation of the maximum repurchase quantity of 9 million shares and the maximum repurchase price of 124.38 yuan / share, the repurchase amount is expected to be no more than 111942 million yuan. The term of share repurchase shall be no more than 12 months from the date when the general meeting of shareholders deliberating the repurchase matters deliberates and adopts the repurchase plan.
On April 8, Yunnan Baiyao Group Co.Ltd(000538) closed at 80.23 yuan, up 1.67%, with a turnover of 415 million yuan. Compared with the historical high of 158.28 yuan / share in mid February 2021, the share price has retreated by nearly 50%.
On March 25, Yunnan Baiyao Group Co.Ltd(000538) disclosed the annual report of 2021. The net profit attributable to the parent company declined for the first time in nearly 20 years, which triggered a heated discussion in the market. The company’s operating revenue in 2021 increased by 11.09% year-on-year to 36.374 billion yuan; The net profit attributable to the parent decreased by 49.17% year-on-year to 2.804 billion yuan.
The significant decrease in net profit is related to investment losses. According to the annual report, the loss from changes in the fair value of securities and funds held by the company in 2021 exceeded 1.929 billion yuan. The company said that during the reporting period, there was a significant difference between the net cash flow from operating activities and the net profit in 2021, because the net profit in this period was lower than the net cash flow from operating activities due to the impact of the investment income of financial assets and the income from changes in fair value.
China Securities Journal reporter noted that Yunnan Baiyao Group Co.Ltd(000538) held 9 stocks, most of which were “white horse stocks” with a large decline in 2021. Among them, six stocks had floating losses during the reporting period, and the largest amount was Xiaomi group, with a floating loss of 1.404 billion yuan Jiangsu Hengrui Medicine Co.Ltd(600276) , followed by Tencent holdings, with book losses of 211 million yuan and 105 million yuanP align = “center” source: Yunnan Baiyao Group Co.Ltd(000538) 2021 Annual Report
In the teleconference on March 31, in response to the question raised by investors on how to plan the company’s securities investment in 2022, Yunnan Baiyao Group Co.Ltd(000538) responded that it would strictly control the investment scale of the secondary market on the basis of the original risk control measures. In 2022, within the limit approved by the board of directors, gradually reduce positions and do not continue to increase holdings.
force “second growth curve”
In recent years, the growth rate of Yunnan Baiyao Group Co.Ltd(000538) operating revenue tends to be flat.
In order to cultivate new growth points, Yunnan Baiyao Group Co.Ltd(000538) increase R & D investment. According to the annual report, the company’s R & D expenses in 2021 increased by 82.99% year-on-year to RMB 331 million, and new R & D projects such as R & D registration of special medical food and R & D of Jiji biomedical skin care products were added.
The company also mentioned in the annual report for the first time that it should make efforts to “the second curve”. On the basis of stabilizing the traditional advantageous stock businesses such as central products ( Yunnan Baiyao Group Co.Ltd(000538) series core products), general medicine and toothpaste, the company actively explored the incremental businesses such as Panax notoginseng series oral liquid, household medical devices, personalized skin care product group, scalp health management product group and health care food.
For the future strategic positioning, Yunnan Baiyao Group Co.Ltd(000538) said it would focus on the transformation and development of the “1 + 4 + 1” strategy, that is, deeply cultivate the field of traditional Chinese medicine, and focus on the development of oral cavity, skin, bone injury and female care. At the same time, cutting-edge digital technology including artificial intelligence is introduced into all links of R & D and operation.
ten billion yuan subscription for Shanghai Pharmaceuticals Holding Co.Ltd(601607) shares
On April 6, Shanghai Pharmaceuticals Holding Co.Ltd(601607) announced that the issuance and underwriting summary and relevant documents of its fixed increase projects had been filed and approved by the CSRC Yunnan Baiyao Group Co.Ltd(000538) as a strategic investor, he subscribed 666 million shares of the company, amounting to 10.91 billion yuan. After the subscription is completed, Yunnan Baiyao Group Co.Ltd(000538) will hold 18.02% of the shares of the company, ranking among the top ten shareholders.
According to public data, Shanghai Pharmaceuticals Holding Co.Ltd(601607) is the core enterprise in the large health industry sector of Shanghai real estate group, and its main business is pharmaceutical industry, distribution and retail, ranking a leading position in China. In 2021, the company realized an operating revenue of 215824 billion yuan, including 25.098 billion yuan for the pharmaceutical industry, with a year-on-year increase of 5.71% and a gross profit margin of 57.8%; The revenue of pharmaceutical business was 190726 billion yuan, a year-on-year increase of 13.42%.
The reporter of China Securities Journal noted that in 2021, the Yunnan Baiyao Group Co.Ltd(000538) industrial sales revenue was 12.703 billion yuan, and the gross profit margin increased by 2.8 percentage points year-on-year; The commercial sales revenue was 23.581 billion yuan, and the gross profit margin decreased by 1.78 percentage points year-on-yearP align = “center” source: Yunnan Baiyao Group Co.Ltd(000538) 2021 Annual Report
For this subscription, Yunnan Baiyao Group Co.Ltd(000538) said that this move can achieve equity cooperation and strategic cooperation between the two sides. By virtue of Shanghai Pharmaceuticals Holding Co.Ltd(601607) high-quality platform and industrial resource coordination, Yunnan Baiyao Group Co.Ltd(000538) existing resource advantages can be further amplified, important opportunities for industrial integration can be grasped, main business scale and existing industrial layout can be expanded, overall operation efficiency can be improved, and regional complementarity and logistics warehousing, purchase and price negotiation, variety agency The integration and coordination of brand promotion and new drug development is conducive to expanding the scale of main business, improving operation efficiency, and improving the core competitiveness and profitability of enterprises.
