Securities code: 600436 securities abbreviation: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Announcement No.: 2022-006 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436)
Announcement on investment in new industrial parks
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (hereinafter referred to as “the company”) plans to invest in a new Industrial Park (hereinafter referred to as “the new investment”), and the upper limit of the investment estimate is no more than 4.48 billion yuan. The capital source of the new investment is self raised by the company.
The new investment has been deliberated and approved at the 44th meeting of the sixth board of directors of the company and needs to be submitted to the general meeting of shareholders of the company for deliberation.
The new investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
Possible risks in the new construction of this investment: engineering construction risks such as the rise in the price of building materials; Benefit risks such as capital operation; Operational risks after the completion of the project; Risk that the project benefit is lower than expected; Risks of property loss or casualties caused by natural disasters or accidents. The estimated total investment of the project is the estimated amount, and the specific amount of the project operation shall be subject to the subsequent actual calculation. There is uncertainty, but the upper limit shall not exceed 4.48 billion yuan.
The company will perform the corresponding project review procedures and information disclosure obligations according to the specific implementation projects. Please pay attention to investment risks.
1、 Deliberations of the board of directors
On Wednesday, January 19, 2022, the 44th meeting of the sixth board of directors of the company was held by means of communication at 9:00 a.m. Meeting notices and proposals shall be delivered by hand and sent by e-mail. There are 9 directors who should vote at this meeting and 9 directors who actually vote. The meeting was presided over by Mr. Lin weiqi, chairman of the board. The meeting was held in accordance with the relevant provisions of the company law and the Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) articles of association, and was legal and effective. The directors attending the meeting deliberated and passed the company’s proposal on investing in new industrial parks by means of communication voting; The directors attending the meeting had 9 affirmative votes, 0 negative votes and 0 abstention votes. The proposal still needs to be submitted to the general meeting of shareholders of the company for deliberation.
2、 Background overview of this investment
In order to seize the market opportunity, the company must further expand production capacity construction, enrich product varieties, increase R & D investment and market development in the context of the continuous introduction of favorable industrial policies by the state. Capacity improvement must be supported by production facilities. The company’s current production workshop was relocated from the ancient city center of Zhangzhou city to Amber Road, Xiangcheng District, Zhangzhou City in the 1980s. Due to the long construction time and relatively small site, although the production workshop is constantly increasing in technical transformation, the plant area, process layout and equipment capacity can no longer meet the development needs of the company and the market, As a result, the company’s expansion of production capacity is limited to a certain extent. The construction of the new production base can not only solve these problems restricting the development of the company, but also further improve the automation and intelligence level of the company through high-standard planning and construction, which is conducive to improving the efficiency of product quality management, fully meeting the market demand and ensuring the long-term and stable development of the enterprise.
The upper limit of the investment estimate for the new investment is no more than 4.48 billion yuan. The capital source of the new investment is the self raised capital of the company.
The new investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
2、 Basic information of the investment project
(I) Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) great health intelligent park
1. Project Name: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) great health intelligent park
2. Implementation subject: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436)
3. The proposed site of the project is located in Jingyuan District, high tech Zone, Zhangzhou City, Fujian Province, with Chuangxin road in the West and Caowu road in the south
4. Construction scale: the project covers a total area of 328162.17 m2 and a total construction area of 479381.76 m2. The specific data shall be subject to the final design scheme, and the company will carry out construction by stages according to the actual situation.
5. Construction scope: raw material warehouse and pretreatment workshop, comprehensive extraction workshop, comprehensive preparation workshop, comprehensive three-dimensional warehouse, administrative office building, R & D center, testing center, standard center, achievement transformation center, sewage treatment station and other supporting facilities.
Among them, the R & D center will rely on the company’s national high-tech enterprises, academician and expert workstations, postdoctoral scientific research workstations, etc., focusing on the research and development of drugs and healthy food in the fields of chronic diseases, liver and gallbladder diseases. The company will actively connect and introduce leading new food and drug R & D institutions at home and abroad to improve its comprehensive R & D strength. In the future, the company will build a comprehensive research center for R & D and quality evaluation of Chinese patent medicine, chemical medicine, prepared pieces of traditional Chinese medicine, health food, special medical food and functional food with China’s leading technical level.
Relying on the company’s CNAs laboratory, the testing center will build a comprehensive service platform system for drug evaluation, monitoring, clinical, scientific research, consultation and production, and build a first-class food and drug inspection and testing technology service platform in China. The company will be equipped with a variety of advanced analysis and testing instruments and information management systems to realize intelligent and data management in the whole process of inspection and testing. In the future, the company’s testing capacity will cover the upstream and downstream of food, drugs and supply chain. The testing items have passed the qualification certification of inspection and testing institutions (MA, CNAs, etc.), involving more than 500 routine testing items / parameters of drugs and food (including upstream and downstream products), reaching the class a “comprehensive capacity” of drug inspection and testing institutions.
The standard center will be jointly built by the company with public testing platforms such as national and provincial drug inspection institutions, scientific research institutes and third-party testing institutions to build a research highland of standardization of traditional Chinese medicine in China. The company will introduce professional teams or institutions for standardization research to build a drug and food standardization research center.
Relying on the company’s national enterprise technology center and based on the company’s health science and technology R & D achievements, the achievement transformation center will carry out regional online and offline accurate docking, key achievement screening and incubation, scientific and technological achievement transformation, achievement transformation policy research and training, connect the company’s scientific research achievements with intelligent manufacturing and production, and build an achievement transformation center. In the future, the company will build a comprehensive achievement transformation center for the preparation process and quality evaluation of Chinese patent medicine, chemical medicine, prepared pieces of traditional Chinese medicine, health food, special medical food and functional food with China’s leading technical level.
6. Project investment estimate: the project construction investment of the project is about 2.8 billion yuan, including 1.334 billion yuan of construction engineering cost, 548 million yuan of equipment purchase cost, 342 million yuan of installation engineering cost, 129 million yuan of construction land cost, 184 million yuan of other engineering construction costs, 121 million yuan of reserve fund and 142 million yuan of working capital.
7. Project fund source: self raised by the company.
8. Project product scheme: compound Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) buccal tablets, compound Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ointment, compound Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) hemorrhoids ointment, Yindan Pinggan capsule and other products.
9. Construction schedule: the construction period of the project is 3 to 5 years.
10. Project benefit estimation: according to the principle of prudence, the project is expected to reach production in the sixth year after completion and operation. The after tax internal rate of return of the project is 25.41%, and the static investment payback period is 6.47 years (including the construction period); The dynamic investment payback period is 9.74 years (including construction period). (II) Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) healthy beauty garden
1. Project Name: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) health beauty garden
2. Implementing entity: Fujian Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Cosmetics Co., Ltd
3. Project site selection: located in Jingyuan District, high tech Zone, Zhangzhou City, Fujian Province, the land is bounded by Chuangye road in the west, Caowu road in the south, caoban road in the north and Gaoxin East Road in the East
4. Construction scale: the project covers a total area of 88634.84 m2 and a total construction area of 261525.00 m2. The specific data shall be subject to the final design scheme, and the company will carry out construction by stages according to the actual situation.
5. Construction scope: production workshop, comprehensive three-dimensional warehouse, administrative office building, R & D center, sewage treatment station and other supporting facilities.
6. Project investment estimate: the project construction investment of the project is about 1.68 billion yuan, including 769 million yuan of construction engineering cost, 271 million yuan of equipment purchase cost, 136 million yuan of installation engineering cost, 82 million yuan of construction land cost, 155 million yuan of other engineering construction costs, 127 million yuan of reserve fund and 140 million yuan of working capital.
7. Project fund source: self raised by the company.
8. Project product scheme: skin care products with special effects, such as skin nourishing, whitening and snow muscle flawless Moisturizing Series, anti aging and firming series, barrier repair, Yurun Xianyan Moisturizing Series and so on; Queen series (cream).
9. Construction schedule: the construction period of the project is 3 to 5 years.
10. Project benefit estimation: according to the principle of prudence, the project is expected to reach production in the 8th year after completion and operation. The after tax internal rate of return of the project is 29.34%, and the static investment payback period is 7.34 years (including the construction period); The dynamic investment payback period is 9.13 years (including construction period). 3、 Impact of investment projects on the company
The new investment project conforms to the company’s overall development strategy, can provide corresponding production and supporting facilities for the company’s further development of pharmaceutical manufacturing business and cosmetics manufacturing business in the future, is conducive to the company’s further expansion of production scale, meets the growing needs of the Chinese market and the needs of international market expansion, and can effectively reduce operating costs, Improve production efficiency, so as to enhance the company’s sustainable development ability, which will play a positive role in promoting the company’s future development.
The company will invest funds by stages according to the specific needs of the project, which will not have a significant impact on the company’s financial status and cash flow, the company’s normal production and operation, and the company’s main business, sustainable operation ability and asset status.
4、 Risks of investment projects
(1) Construction risks such as rising prices of building materials
The construction cycle and progress of the project may be affected by uncertain factors such as policy adjustment, project progress and management, raw material supply and price change, natural climate and so on, and there is a risk that it will not be completed on schedule according to the scheduled investment plan. In view of the project construction risks, the company will coordinate, arrange and supervise the project construction related work according to the different conditions of each construction stage, so as to prevent the possible risks of project construction. The company will employ qualified construction enterprises for project construction, employ qualified supervision units to monitor the whole process of project quality, strengthen the prior control of various risks in the process of project construction, and ensure the completion of all projects with high quality and high quality within the established construction period.
(2) Benefit risks such as capital operation
The project investment fund shall be raised by the company itself. In the process of project construction, if the credit policy and the smoothness of financing channels change, the company will bear certain capital risks. During the project construction, the company will pay more attention to relevant information, make timely adjustments, improve the utilization rate of funds, and make the capital flow of the project orderly and normal. In view of benefit risks, the company will strive to avoid and reduce the financial costs of the project, make full use of the advantages of listed companies, ensure working capital and reduce construction costs.
(3) Operational risks after the completion of the project
The purpose of industrial park construction is to meet the needs of business development of the company; After the completion of the project, if the company’s business development plan is adjusted accordingly according to market changes, the subsequent operation and use of the industrial park will also face the risk of corresponding adjustment.
(4) Risk that the project benefit is lower than expected
Although the company has conducted certain research and demonstration on target customers, market prospects, competition pattern, market scale and other factors, and formulated corresponding market development plans, the market environment is rapidly changing due to the influence of many factors. If the market environment changes greatly, it will have a certain impact on the sales of the company’s products, and there is a risk that the sales will not meet the expectations or the new capacity will not be fully digested.
The company will further strengthen market research, produce suitable products according to market demand and provide perfect after-sales service; Continue to strengthen and improve the marketing work and improve the market recognition of products. The company will fully grasp the market opportunities and actively implement the relevant marketing strategies of the project to provide guarantee for the smooth sales of products after the completion of the project. At the same time, the company will implement new projects by stages and orderly according to actual needs, gradually invest funds and reduce investment risks. (5) Other risks
Risks of property loss or casualties caused by natural disasters or accidents. The estimated total investment of the project is the estimated amount, and the specific amount of the project operation shall be subject to the subsequent actual calculation. There is uncertainty, but the upper limit shall not exceed 4.48 billion yuan.
The company will perform the corresponding project review procedures and information disclosure obligations according to the specific implementation projects. Please pay attention to investment risks.
It is hereby announced.
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) board of directors
January 20, 2022
