On January 16, Aba Chemicals Corporation(300261) issued an announcement. Due to the abnormal fluctuation of the company’s stock price, the trading was suspended from Monday, January 17, and resumed after the disclosure of the verification announcement.
According to the announcement, the deviation of the closing price increase of the company for two consecutive trading days has reached 30%, which is in line with the abnormal fluctuation of stock trading in Shenzhen Stock Exchange. In fact, the company’s share price began to enter the rising channel after rising by 20% on November 15, 2021. By the closing on January 14, the company’s share price had risen by 336%
figure: Aba Chemicals Corporation(300261) stock price trend
Aba Chemicals Corporation(300261) trading was suspended for another two months, up three times
On January 16, Aba Chemicals Corporation(300261) issued an announcement. Due to the abnormal fluctuation of the company’s stock price, the trading was suspended from Monday, January 17, and resumed after the disclosure of the verification announcement.
In fact, this is not the first time that the company has been suspended for verification due to stock changes recently. From December 29, 2021 to January 5, 2022, the trading of the company’s shares was suspended for the first time due to changes. Before the suspension, the company’s share price had soared by 1.6 times in seven trading days (from December 20, 2021), including the “20cm” limit in four trading days.
Changes in stocks have also attracted regulatory attention. After harvesting the first 20 “cm” limit, on December 22, 2021, the company issued an abnormal announcement of stock price for the first time in the year. Subsequently, the company received a letter of concern from the Shenzhen Stock Exchange, requiring the company to further disclose the R & D, production and sales of sensitive products such as carlon anhydride and industrial marijuana.
In the reply announcement, the company said that as of the reply date of the letter of concern, the company had not signed any cooperation agreement with Pfizer, had no cooperative relationship with Pfizer, and did not supply carlon anhydride and its derivatives to Pfizer. The customers of the company’s carbonic anhydride and its derivatives are mainly Chinese customers and Indian customers. It is uncertain whether the company’s carbonic anhydride and its derivatives are indirectly supplied to Pfizer.
In addition, the company’s carbonic anhydride and its derivatives are mainly used for sales and self-use, of which the sales part accounts for about 99% of the total output, and the self-use R & D part accounts for about 1% of the total output. Since 2012, the company has carried out the synthetic process and industrial R & D of carbonic anhydride and its derivatives. As of the reply date of the letter of concern, the company has invested a total of 14.6746 million yuan in R & D expenses, including 14.1746 million yuan in R & D expenses and 500000 yuan in patent purchase expenses.
At present, the company has a total production capacity of about 20 tons / month of carbonic anhydride and its derivatives. As of the reply date of the letter of concern, the sales volume of the company’s carbonic anhydride and its derivatives was 17.29 tons, generating a sales revenue of 27.073 million yuan, accounting for about 1% – 2% of the company’s total operating revenue in 2021, accounting for a relatively small proportion. The company does not expect to have a significant impact on the company’s financial and operating conditions in 2021 and 2022. As of the reply date of the letter of concern, the company’s orders for carone anhydride and derivatives were 63.5408 million yuan.
The main customers of the company’s carbonic anhydride and derivatives are Chinese customers and Indian customers, of which the sales of Chinese customers account for about 97.88% of the company’s total sales of carbonic anhydride and derivatives, and the sales of Indian customers account for about 2.12% of the company’s total sales of carbonic anhydride and derivatives.
However, with regard to the market share of carbonic anhydride and its derivatives, the company claims that the relevant data cannot be calculated because China’s chemical intermediate industry is relatively scattered and there is no official or public data to accurately obtain the output and sales of carbonic anhydride and its derivatives in China.
For the production of industrial marijuana, Aba Chemicals Corporation(300261) believes that the company’s holding subsidiary a2w is mainly engaged in the R & D, production and sales of controlled drugs such as cannabinoid diphenol (CBD). At present, the main structure of CBD medical product production workshop has been basically completed, equipment installation and application for GMP certification are under way. No CBD medical products have been produced and sold in 2021, and there are no orders. The company also expects that the product will not bring any sales revenue and profit contribution to the company in 2021 and 2022.
But this did not stop the company’s share price from rising. In the following four trading days, the company’s share price rose again for three 20cm limits. On December 28, the company suspended trading for the first time to verify the serious abnormal fluctuation of share price, and received the letter of concern from Shenzhen Stock Exchange again.
In the second reply to the letter of concern of Shenzhen Stock Exchange, the company stressed that the company’s product carbonic anhydride can be used for Pfizer’s anti covid-19 virus drug parovid API, but the company is not the only manufacturer in China with the synthesis process of carbonic anhydride and its derivatives, and the company has not signed any cooperation agreement with Pfizer and has no cooperative relationship with Pfizer, No Caron anhydride and its derivatives were supplied to Pfizer.
As for whether Wang Xinya, one of the founding shareholders and actual controllers, was involved in insider trading during the stock price rise, Aba Chemicals Corporation(300261) believes that during the stock reduction period, the company, its controlling shareholders and actual controllers did not have major events that should be disclosed but not disclosed, nor did they have major events in the planning stage; The directors, supervisors and senior managers of the company strictly followed the confidentiality requirements of insider information and did not talk to Ms. Wang Xinya about any information related to the company’s finance and important or sensitive information not disclosed by the company. Wang Xinya’s reduction of shares in the company is mainly due to personal capital needs such as loan repayment and foreign investment.
Aba Chemicals Corporation(300261) believes that the reason for the rise of the company’s share price is that the prospects of the company’s pesticide intermediate industry and pharmaceutical intermediate industry are good, but it is stressed that it will not have a significant impact on the company’s recent production, operation and performance. The company’s performance in the first three quarters was stable, with revenue increasing by 7.08%, net profit increasing by 23.03%, net profit deducting non net profit decreasing by 16.88%, and there was no significant change in production and operation.
The trading of the company’s shares resumed on January 6 this year, with a decline of more than 20% in the two trading days. But then it rose again, rising 81.53% in five trading days. Until today, the trading was suspended again to verify the abnormal stock price.
After rising by 20% on November 15, 2021, the company’s share price began to enter the rising channel. By the closing on January 14, the company’s share price had risen by 336%.
Aba Chemicals Corporation(300261) was fined for “rubbing hot spots”
According to public information, Aba Chemicals Corporation(300261) was established in 2006, headquartered in Suzhou, Jiangsu Province, and its main business is chemical fertilizer and agrochemical industry. In 2011, the company was listed and traded on the Shenzhen GEM. The legal representative was Cai Tong and the actual controllers were Mao Haifeng, Ma Lifan, Wang Xinya, Cai Tong and Wang Zhuoying.
In 2020, the company was punished by the CSRC for “rubbing hot spots”.
In March 2020, Aba Chemicals Corporation(300261) issued an announcement, saying that the CSRC decided to file a case for investigation because it was suspected of illegal information disclosure such as misleading statements.
The investigation started because Aba Chemicals Corporation(300261) replied on the interactive platform that the subsidiary Piaoyi chemical is the main supplier of key intermediates of atazanavir and darunavir. Darunavir mainly produces chiral drug intermediates, namely darunavir.
The research results of Academician Li Lanjuan’s team show that “abidol and darunavir can effectively inhibit coronavirus”. The news directly made Aba Chemicals Corporation(300261) rise the limit for four consecutive trading days.
According to the CSRC’s decision on administrative punishment announced by the company in September 2020, the CSRC found that Aba Chemicals Corporation(300261) disclosed many times in the interactive easy reply, the reply to the letter of concern and the announcement on stock price changes. Puyi chemical is the main supplier of key intermediates of dalunavir. The reply to the letter of concern disclosed that from 2017 to 2019, the sales revenue of dalunavir pharmaceutical intermediates of Puyi chemical was 30.5918 million yuan, 52.9634 million yuan and 31.9376 million yuan respectively, the sales volume was 44 tons, 70 tons and 47 tons respectively, the capacity was 80 tons / year, and the capacity utilization rate was 55%, 88% and 59% respectively. According to the reply to the letter of concern and the announcement on stock price changes, the market share of Puyi chemical is about 15% – 20%; At present, the Indian customers include emucure, mylan, Cipla, sun and laures, and the Chinese customers include Porton Pharma Solutions Ltd(300363) , Desano and other pharmaceutical companies.
However, in fact, Aba Chemicals Corporation(300261) from 2017 to 2019, the revenue from the sales or provision of darunavir pharmaceutical intermediate products and services was 2.4569 million yuan, 4.8376 million yuan and 5.0613 million yuan, of which the revenue of Puyi chemical and its holding subsidiary Huzhou Yihui Biotechnology Co., Ltd. (hereinafter referred to as Yihui Biotechnology) was divided into 1.1122 million yuan, 3.5176 million yuan and 5.0613 million yuan, Compared with the amount disclosed in the reply to the letter of concern, it is 29.4796 million yuan, 49.4458 million yuan and 26.8763 million yuan less respectively. The above sales revenue disclosed by Aba Chemicals Corporation(300261) counts the dalunavir pharmaceutical intermediates such as chlorohydrin and BOC epoxy sold by the downstream customer Jiangsu Baju Pharmaceutical Co., Ltd. into its own revenue.
Aba Chemicals Corporation(300261) , Piaoyi chemical and Yihui biological have not directly signed business contracts and supply with Indian customers emuure, mylan, Cipla, sun, laures and Chinese customer Desano, but Piaoyi chemical is solely responsible for the negotiation, quotation and transaction with the above customers according to the technical service and customer protection agreement signed between Piaoyi chemical and Baju pharmaceutical, Baju pharmaceutical pays a commission to Puyi chemical in a certain proportion to the sales amount of the above customers. The sales volume, production capacity and utilization rate of the above products disclosed by Aba Chemicals Corporation(300261) are estimated and calculated according to the production capacity and orders of Baju pharmaceutical.
The CSRC pointed out that Aba Chemicals Corporation(300261) the above information disclosure failed to objectively, accurately and completely reflect the actual situation involving dalunavir pharmaceutical intermediate business, exaggerating the company’s revenue, output, sales volume and market position of the business, which is quite misleading.
The CSRC believes that the above-mentioned act of Aba Chemicals Corporation(300261) violates the provisions of Article 63 of the securities law of 2005 and constitutes an illegal act of information disclosure described in paragraph 1 of Article 193 of the securities law of 2005. In this regard, the CSRC decided to give a warning to Aba Chemicals Corporation(300261) and impose a fine of 400000 yuan; The then chairman and the Secretary of the board of directors were warned and fined a total of 350000 yuan.
In addition, in June 2020, Shenzhen Stock Exchange issued a supervision letter on the company’s shareholders Alashankou YABEN Venture Capital Co., Ltd., Cai Tong, Wang Zhuoying, Mao Haifeng, Wang Xinya and Ma Lifan. The regulatory letter pointed out that the short form report on changes in equity disclosed by Aba Chemicals Corporation(300261) on December 27, 2019 shows that as the controlling shareholder of Aba Chemicals Corporation(300261) and its persons acting in concert, during the period from December 29, 2017 to December 27, 2019, through centralized bidding trading, block trading and convertible bonds, The total proportion of Aba Chemicals Corporation(300261) shares held changed from 47.97% to 42.25%, and the cumulative change proportion was 5.72%. When the cumulative shareholding ratio changes to 5%, it fails to stop buying and selling Aba Chemicals Corporation(300261) shares in accordance with the measures for the administration of the acquisition of listed companies and timely perform the obligations of reporting and announcement.
Shenzhen Stock Exchange believes that the above acts violate the provisions of articles 1.4, 2.1 and 11.8.1 of the gem stock listing rules (revised in November 2018). It hopes that the above shareholders will pay full attention to the above problems, learn lessons, make timely rectification and prevent the recurrence of the above problems.
