After the controlling shareholder and actual controller threw out the reduction plan, the traditional Chinese medicine Daniu stock Kunming Longjin Pharmaceutical Co.Ltd(002750) whose share price doubled in less than one month will usher in a large proportion of reduction by the second shareholder.
Kunming Longjin Pharmaceutical Co.Ltd(002750) on the evening of January 12, it was announced that Lixing industry, the second largest shareholder holding 20.12%, plans to reduce its holdings of no more than 24.03 million shares by centralized bidding, block trading or other legal means, that is, no more than 6% of the company’s total share capital.
Previously, on January 6, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced that the controlling shareholder Qunxing investment and the actual controller fan xianrussia planned to reduce their total holdings by no more than 3.19%.
After the major shareholders and the second shareholders announced the reduction one after another, ordinary investors burst into the pot, saying “it’s over, Barbie Q” and “tomorrow’s limit”.
there was a precedent for high-level reduction
Recently, stimulated by favorable factors such as product price increase announced by many companies and centralized purchase and landing of Chinese patent medicines, the traditional Chinese medicine sector has risen and set off a wave of individual stock trading. Traditional Chinese medicine enterprises such as Kunming Longjin Pharmaceutical Co.Ltd(002750) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Gansu Longshenrongfa Pharmaceutical Industry Co.Ltd(300534) , Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) have doubled their share prices in less than one month. Among them, the share price of Kunming Longjin Pharmaceutical Co.Ltd(002750) has increased fiercely. It has doubled since its launch on December 20, 2021, and set a record of 10 days and 10 boards.
After the announcement on January 6 that the controlling shareholders and actual controllers planned to reduce their holdings by no more than 3.19%, the Kunming Longjin Pharmaceutical Co.Ltd(002750) harvest the limit on January 7, but then the stock price rebounded immediately, and the last two trading days gained two limits.
This is not the first high-level reduction of Kunming Longjin Pharmaceutical Co.Ltd(002750) shareholders, and there was a precedent of high-level reduction of Kunming Longjin Pharmaceutical Co.Ltd(002750) major shareholders in 2019.
After the Spring Festival in 2019, the concept of “industrial marijuana” was born at that time. Kunming Longjin Pharmaceutical Co.Ltd(002750) was recognized by the market because of its industrial marijuana planting business. Its share price started in late February 2019 and increased by more than 200% on March 14.
Such an increase makes Kunming Longjin Pharmaceutical Co.Ltd(002750) shareholders “unable to sit still”. On March 14, 2019, Lixing industry, the second shareholder of the company, Qunxing investment, the controlling shareholder, and fan xianrussia, the actual controller, simultaneously put forward the reduction plan, which plans to reduce the shares by no more than 3% and 1% respectively.
As soon as the news came out, Kunming Longjin Pharmaceutical Co.Ltd(002750) ended its soaring road and entered a long downward road for nearly three years.
Until the recent rise of the traditional Chinese medicine sector, Kunming Longjin Pharmaceutical Co.Ltd(002750) share price has gone out of a sharp trend and is close to the level three years ago.
poor performance for many years
Kunming Longjin Pharmaceutical Co.Ltd(002750) has been engaged in the R & D, production and sales of modern Chinese patent medicine and characteristic chemical generic drugs. Its main products are purchased drugs and traditional Chinese medicine lyophilized powder injection. Among them, the traditional Chinese medicine lyophilized powder injection is mainly breviscapine lyophilized powder injection for injection. According to Kunming Longjin Pharmaceutical Co.Ltd(002750) , the company has been committed to the in-depth research on the formula and preparation process of breviscapine for injection for many years, and has mastered the relevant core technologies. The quality standard of breviscapine for injection drafted by the company has been included in the Chinese Pharmacopoeia. It is the only monomer preparation with purity of 98%.
The performance of Kunming Longjin Pharmaceutical Co.Ltd(002750) in previous years has been relatively sluggish. According to the annual report, from 2018 to 2020, Kunming Longjin Pharmaceutical Co.Ltd(002750) main revenue was RMB 336 million, RMB 275 million and RMB 254 million respectively, and the net profit deducted from non parent company was RMB 2.9501 million, -39.886 million and -2.526 million respectively.
Until 2021, Kunming Longjin Pharmaceutical Co.Ltd(002750) performance improved. According to the third quarterly report of 2021, the company achieved an operating revenue of 594 million yuan, a year-on-year increase of 261.23%, and a net profit of 6.5727 million yuan, a year-on-year increase of 187.68%. However, the net profit not attributable to the parent company is still a loss, with a loss of 281300 yuan.
On December 22, 2021, Kunming Longjin Pharmaceutical Co.Ltd(002750) announced that the breviscapine for injection of the company’s products was planned to be selected by the inter provincial Alliance for centralized belt procurement, and the benchmark price was planned to be 75.31 yuan / box, a decrease of 67%. Kunming Longjin Pharmaceutical Co.Ltd(002750) said that Longjin breviscapine for injection is the company’s core product. The sales revenue of this product accounted for about 26.54% of the company’s operating revenue in the first three quarters of 2021 (after deducting the revenue from pharmaceutical wholesale business, it accounted for about 99.40%) and 87.74% of the company’s operating revenue in 2020. Compared with the original benchmark price, the proposed winning price has decreased significantly, which may cause some pressure on sales performance, but it is conducive to improving drug accessibility, accelerating product access, improving market share and brand influence, and reducing the drug burden of patients.
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