Listed companies use idle own funds to purchase financial management to improve the efficiency of capital use. It is understandable. Looking at Kanghong Pharmaceutical (002773), its purchasing financial products is almost crazy. Juchao Information Network data shows that in the past two and a half years, Kanghong Pharmaceutical has disclosed nearly 80 announcements about using its own funds to purchase financial management, that is, there are an average of two to three announcements about purchasing financial management every month. The author noticed that behind this almost crazy buying, Kanghong Pharmaceutical's stock price suffered a "waist cut". In the view of investors, the stock price cut is closely related to the "stravel" of Kanghong Pharmaceutical's heavy product Kangbosip going overseas in the European and American markets.
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Two and a half years have disclosed an average of 2-3 purchase and financial management announcements per month
From April 9, 2020 to October 19, 2022, in about two and a half years, Kanghong Pharmaceutical has disclosed 79 announcements about using its own funds to purchase and financial management. According to the announcement of Kanghong Pharmaceutical, Chengdu Kanghong Pharmaceutical Group Co., Ltd. reviewed and passed the "Proposal on the Company's Use of Self-owned Funds to Purchase Financial Products" at the 2018 Annual General Meeting, 2019 Annual General Meeting, 2020 Annual General Meeting, and 2021 General Meeting, respectively, and agreed that the company and its subsidiaries used some idle self-owned funds to purchase financial products (including structured deposits ) within a quota of no more than RMB 1.7 billion, no more than RMB 2 billion, no more than RMB 2 billion, and no more than RMB 2 billion. The purchase principle is to have high security, good liquidity, short-term guaranteed wealth management products (including structured deposits) issued by commercial banks and provided guaranteed guarantee commitments. The purchase period is one year from the date of review and approval by the shareholders' meeting.
According to the "Announcement on the Use of Self-owned Funds to Purchase Financial Products" disclosed by Kanghong Pharmaceutical on October 15, 2022, as of the date of this announcement, the company has used idle self-owned funds to purchase unexpired bank guaranteed wealth management products in the past twelve months, a total of 1.472 billion yuan, which has not exceeded the amount range and investment period of the investment products authorized by the company's shareholders' meeting.
According to the "Announcement on the Use of Self-owned Funds to Purchase Financial Management Products" disclosed by Kanghong Pharmaceutical on October 28, 2021, as of the date of this announcement, the company has used idle self-owned funds to purchase unexpired bank guaranteed wealth management products in the past twelve months, a total of 800.1 million yuan, which has not exceeded the amount range and investment period of the investment products authorized by the company's shareholders' meeting.
According to the "Announcement on the Use of Self-owned Funds to Purchase Financial Management Products" disclosed by Kanghong Pharmaceutical on October 21, 2020, as of the date of this announcement, the company has used idle self-owned funds to purchase unexpired bank guaranteed wealth management products in the past twelve months, a total of 1.23833 billion yuan, which has not exceeded the amount range and investment period of the investment products authorized by the company's shareholders' meeting.
In other words, in the past three years or so, Kanghong Pharmaceutical has used about 3 billion of idle own funds to purchase bank guaranteed financial products. According to Kanghong Pharmaceutical's 2022 semi-annual report, during the reporting period, the investment income of wealth management products was RMB 0.2 million, while the net amount of cash flow generated by investment activities during the reporting period was as high as RMB 1.585 billion, mainly due to the increase in financial expenditure in this period. According to the above-mentioned income investment ratio, roughly calculated that in the first half of this year, Kanghong Pharmaceutical's overall financial return rate was only 0.13%. (02 million yuan/1.585 billion yuan).
In this regard, some investors also questioned the situation of low returns, "I saw that your company has been doing some idle funds wealth management business , which are bank wealth management products and relatively low returns. Have you ever considered products issued by securities companies or trust companies? Many listed companies have bought this type of products. Maximizing the profits of idle funds is also a great benefit to shareholders."
Regarding purchasing wealth management products, Kanghong Pharmaceutical stated that while ensuring that it does not affect the company's normal operations, investing in guaranteed wealth management products with idle own funds will not affect the company's normal capital turnover and needs, and will not affect the normal development of the company's main business. Through moderate low-risk financial investment, the efficiency of the company's idle funds can be improved, and a certain investment income can be obtained, and more investment returns can be sought for the company and shareholders.
stock price was cut by "waist"
important product Kangboxipu went overseas and "stratified" in Europe and the United States, causing more than 1 billion yuan to waste
Behind the crazy purchase of financial management, Kanghong Pharmaceutical's stock price was cut by "waist". That is, the stock price fell from 39.37 yuan/share of closing price on April 9, 2020 (previous re-rights) to 18.69 yuan/share of the closing price on October 19, 2022, a total decline of 52.53%.
In response to the "sharp drop" in stock prices, some investors directly pointed out that the company's important product Conbaship "goes overseas" to Europe and the United States.
"The company's stock price has fallen from more than 50 yuan to more than 15 yuan at present, and investors have suffered heavy losses. Are the company's businesses on track and has the company's profitability improved? At the same time, the company should provide investors with good service and let investors see the investment value of the company."
"The company's current stock price is only more than 15 yuan. After years of decline, the company's profitability is getting better and better, and there are also many project reserves. Is there any possibility of Combeverseeing the overseas market? After all, the company's stock price fell sharply because Combeverseeing went abroad was blocked. I hope the company solemnly considers its restart of overseas market!"
On April 9, 2021, Kanghong Pharmaceutical disclosed the "Announcement on Stop Global Multi-Center Clinical Trial of Conbeverseeing Eye Injection". After that day, Kanghong Pharmaceutical's stock price experienced a " dive " decline.
Public information shows that , a wholly-owned subsidiary of Chengdu Kanghong Pharmaceutical Group Co., Ltd., Chengdu Kanghong Biotechnology Co., Ltd., launched a clinical trial project on "a multi-center, double-blind , randomized, dose range trial to evaluate the efficacy and safety of Kangbosip ophthalmic injection in treating patients with neovascular age-related macular degeneration" (hereinafter referred to as the "PANDA Trial" and the KH916 Project for short).
After less than three years, the clinical trial was declared terminated, that is, the above-mentioned Conborcept failed to go abroad in Europe and the United States. On April 9, 2021, Kanghong Pharmaceutical disclosed an announcement, saying that the company believes that clinical trials are a complex systematic project and that the test results are affected by many factors. In particular, there are no common evaluation and correction methods for the impact of emergencies in global public health on clinical trials. Its significant impact on the PANDA trial is even less likely to be fully evaluated under current cognitive conditions. However, taking into account the many risks of the global public health incident, such as the complex international situation and the uncertain external environment, the continued promotion of the PANDA trial has no longer obtained the results with registration value. Especially considering the clinical benefits of the subject patients and protecting the interests of investors, the company decided to respect the professional evaluation and recommendations of the Science Steering Committee and stop the global PANDA trial after careful research. The suspension of the
KH916 project also means that more than one billion yuan of R&D expenses have been wasted. According to Kanghong Pharmaceutical's "Announcement on the Revision of the 2020 Annual Performance Express", according to the provisions of enterprise accounting standards , this matter belongs to , the date adjustment of balance sheet. As of the end of 2020, its cumulative capital expenditure was 1396.923 million yuan and its current profit and loss were transferred to , correspondingly reducing the total profit and operating profit in 2020 by 1396.923 million yuan (1.397 billion yuan), reducing income tax expenses by 382.0266 million yuan (382 million yuan), and reducing net profit by 10.14.8964 million yuan (about 1.015 billion yuan).
This trial is of great significance to Kanghong Pharmaceutical in opening up the European and American markets. At that time, Kanghong Pharmaceutical mentioned in the investor relations record form on May 11, 2020 that the commercialization of Conborsip overseas market is one of the company's very important tasks. With the advancement of global multi-center clinical trials, the market value of Conborsip will gradually be reflected.
Now that the above trial has been announced to be stopped, is there any possibility and plan for Kanghong Pharmaceutical to restart? According to the investor relations activity record form of Kanghong Pharmaceutical on October 14, 2022, the PANDA trial is in a state of suspension, and the company is also conducting project backtracking research and summary as planned. Participating in global competition has always been the company's goal and has been working hard. This year, the KH617 project has been approved by the U.S. Food and Drug Administration (FDA) to conduct clinical trials, and the KH631 international application is also actively preparing.The termination of the
PANDA trial has also declined significantly for Kanghong Pharmaceutical. Public information shows that Kanghong Pharmaceutical's R&D expenses were 1.676 billion yuan, 1.008 billion yuan and 132 million yuan in 2020, 2021 and the first half of 2022 respectively.
(Picture source: Juchao Information Network, Shenzhen Stock Exchange, Tonghuashun (300033))
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