after the share price crazy pulled 10 boards, the actual controller of the company finally “itched”.
On the evening of January 6, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced that the controlling shareholder Qunxing investment plans to reduce the company’s shares by block trading and centralized bidding from January 28, 2022 to July 27, 2022, with a total reduction of no more than 12.015 million shares (accounting for 3.00% of the company’s total share capital); Fan xianrussia, the actual controller, plans to reduce his shares by no more than 775400 shares, accounting for 0.19% of the total share capital of the company. As soon as the news came out, investors called out not to speak “martial virtue”.
On January 7, Kunming Longjin Pharmaceutical Co.Ltd(002750) boarded the dragon and tiger list due to the deviation of 7% on the same day. As of the closing, the share price fell by the limit to close at 17.62 yuan / share, a decrease of 10.01%.
began to reduce holdings after the share price took off
Recently, since the periodic strengthening of traditional Chinese medicine stocks, Jinghua Pharmaceutical Group Co.Ltd(002349) , Beijing Tongrentang Co.Ltd(600085) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) and many other traditional Chinese medicine enterprises’ share prices have risen one after another, but this wave of market has come and gone quickly. As of today’s closing, the traditional Chinese medicine sector had fallen by 4.16%, of which Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , Zhejiang Xinguang Pharmaceutical Co.Ltd(300519) , Zhejiang Jolly Pharmaceutical Co.Ltd(300181) had fallen by more than 10%, and Kunming Longjin Pharmaceutical Co.Ltd(002750) was suddenly bearish after the share price tripled, announcing the reduction of actual controllers.
For the reasons for the reduction, Kunming Longjin Pharmaceutical Co.Ltd(002750) said that it was mainly due to the needs of enterprise operation and shareholders\’ funds. The price range was determined according to the market price. Calculated according to today’s closing price, the cumulative cash amount was about 224 million yuan. More investors also joked in the stock bar: “after the hemp harvest, they began to cut leeks!”
The sharp rise in Kunming Longjin Pharmaceutical Co.Ltd(002750) is mainly due to the intensive release of favorable policies in the traditional Chinese medicine industry in December 2021, which led to a collective rise in the traditional Chinese medicine sector. According to the reporter’s statistics, Kunming Longjin Pharmaceutical Co.Ltd(002750) closed 10 boards in a row from December 22, 2021 to January 5, 2022, with a cumulative increase of more than 160%.
Due to the continuous sharp rise in share prices, Kunming Longjin Pharmaceutical Co.Ltd(002750) has successively been listed on the dragon and tiger list, and has also continuously issued announcements of abnormal fluctuations in stock trading. On January 5, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced again that the recent operation of the company was normal, the internal and external business environment had not changed significantly, there were no major matters that should be disclosed but not disclosed, and the controlling shareholders and actual controllers did not buy or sell the company’s shares during the abnormal fluctuation of stock trading.
On January 6, Kunming Longjin Pharmaceutical Co.Ltd(002750) suddenly collapsed, but it rose sharply in the afternoon. There was a rapid influx of funds. More than 200 million yuan of funds successfully pried off the limit. The stock price took off directly and staged a thrilling roller coaster. Its intraday increase was once more than 7%. As of the closing, its stock price closed at 19.58 yuan / share, an increase of 0.36%.
On that day, Kunming Longjin Pharmaceutical Co.Ltd(002750) appeared on the dragon and tiger list again because the intraday amplitude exceeded 15%. Data show that although facing the risk of chasing up the quilt cover, there are still many funds to continue to buy.
It should be noted that at the beginning of 2019, Kunming Longjin Pharmaceutical Co.Ltd(002750) share price continued to rise sharply in the short term, and 10 limit boards were harvested in 16 trading days, which tripled in just one month and reached a multi-year high. After the stock price soared, the controlling shareholder, actual controller fan xianrussia and major shareholders reduced their holdings and cashed out one after another.
Since then, the company’s share price began to decline all the way, and the main rise of Kunming Longjin Pharmaceutical Co.Ltd(002750) ended. After a month of high shock, it opened the decline channel and entered a long decline path of three years. Until the recent market speculation about traditional Chinese medicine rose again, Kunming Longjin Pharmaceutical Co.Ltd(002750) share price reached the level close to three years ago.
Now, Kunming Longjin Pharmaceutical Co.Ltd(002750) has started the same reduction of high-level shareholders, and the number of reduction is nearly three times that before. It is unknown whether the share price can remain high.
Some industry analysts said that the late hype of Kunming Longjin Pharmaceutical Co.Ltd(002750) was mainly emotional. Whether it was the time to pull up or the strength to go on the board, it was mainly supported by the emotional support of pharmaceutical stocks. From the Dragon Tiger list data, the recent purchase business department was also mainly retail investors, with a short-term surge of 160%. It was difficult for retail investors to support such a high share price. It was expected to meet the limit after reducing their holdings.
Today Kunming Longjin Pharmaceutical Co.Ltd(002750) fell by the limit. The industrial marijuana sector in its sector fell by 2.75%, and the concept stocks of traditional Chinese medicine fell by 3.06%.
gross profit margin fell precipitously
Kunming Longjin Pharmaceutical Co.Ltd(002750) (hereinafter referred to as Kunming Longjin Pharmaceutical Co.Ltd(002750) ), located in Kunming, Yunnan. It has been engaged in the R & D, production and sales of modern Chinese patent medicine and characteristic chemical generic drugs. Among them, the main products are breviscapine freeze-dried powder injection for Longjin injection and industrial hemp leaves. The product categories include traditional Chinese medicine, biochemical medicine and chemical medicine, including cardiovascular and cerebrovascular medicine, digestive system medicine, immune system medicine, vitamins, minerals, parenteral and parenteral nutrition medicine, etc.
Although the share price rose sharply, the performance of Kunming Longjin Pharmaceutical Co.Ltd(002750) did not improve much.
In June 2019, Kunming Longjin Pharmaceutical Co.Ltd(002750) increased capital to obtain Muya agriculture and develop industrial marijuana planting business. In 2019, more than 10000 mu of industrial marijuana was planted, which brought beneficial supplement to the company’s existing business. In July 2019, the company purchased Nanjian Longjin Biotechnology Co., Ltd. and Nanjian Longjin Agricultural Technology Co., Ltd. completed the equity delivery, marking the completion of the whole industrial chain layout of the Erigeron industry.
But now Kunming Longjin Pharmaceutical Co.Ltd(002750) marijuana business does not account for a high proportion of revenue. According to the 2021 interim report, the main sources of revenue are purchased drugs and breviscapine for injection, accounting for 72.63% and 26.73% respectively.
In terms of its overall revenue, from 2018 to 2020, its revenue decreased from 336 million yuan to 254 million yuan, but rebounded to 594 million yuan in the third quarter of 2021. The revenue rose sharply, but the net profit did not rise sharply. According to the data, in 2019, Kunming Longjin Pharmaceutical Co.Ltd(002750) net profit suffered its first loss, with a loss of 23.937 million yuan. After turning loss into profit in 2020, the net profit has been maintained at about one million yuan.
It is not difficult to find that the net profit of Kunming Longjin Pharmaceutical Co.Ltd(002750) has been “year by year” since 2015. In addition to the decline in net profit, the gross profit margin has decreased “precipitously”. In the 2020 annual report, its gross profit margin is still 79.79%, but by the third quarter of 2021, its gross profit margin is only 28.76%, with a decrease of 51.03%.
In addition to the sharp decline in gross profit margin, the debt asset ratio of Kunming Longjin Pharmaceutical Co.Ltd(002750) also increased from 16.28% in 2020 to 31.01% in the third quarter of 2021. In addition, in the 2021 interim report, 8 of the 12 major subsidiaries of Kunming Longjin Pharmaceutical Co.Ltd(002750) had losses, which may be one of the reasons for the sharp decline in their gross profit margin.
In terms of R & D, Kunming Longjin Pharmaceutical Co.Ltd(002750) invested 85 million yuan in the R & D of generic drugs from 2019 to 2021, but so far, whether the R & D of generic drugs has achieved any results and when to launch new drugs have not been announced.
(source: International Finance News)
