Baiyunshan: The sales of Banlangen will not affect the company's operating performance
News from our newspaper (reporter Zhang Xin) Due to Zhong Nanshan's team's judgment that "Baiyunshan Compound Banlangen is effective against the new crown virus", Baiyunshan Compound Banlangen Granules quickly became a hot commodity in the market.
On October 16, Baiyunshan’s A-share daily limit, H-shares once soared 15%.
In this regard, Baiyunshan issued a clarification notice on October 18, stating that the relevant conclusions involved in relevant media reports are only for the joint venture Guangzhou Baiyunshan Hutchison Whampoa Chinese Medicine Co., Ltd. (hereinafter referred to as "Baiyunshan Hehuang Company") compound Banlangen granules. According to the experimental results of the anti-new coronavirus in vitro screening, there is still some uncertainty in the follow-up related work; combined with the data of previous years, the sales of compound Banlangen granules are not expected to have a significant impact on the company’s operating results.
Prior to this, the fourth meeting of the "Guangdong-Macao Joint Research Center for New Drugs of Respiratory Pathogens" was held in Guangzhou at the 4th Council Baiyunshan Isatis Transformation Seminar and Cooperation Signing Ceremony.
At the meeting, Zhong Nanshan, an academician of the Chinese Academy of Engineering, revealed that the joint research team systematically carried out a series of in vitro drug efficacy screenings of southern medicine against the new coronavirus, and found that the compound Banlangen Granules and Kouyanqing Granules showed in vitro inhibitory effects.
Affected by this news, on the 16th, Baiyunshan's A-share daily limit, H-shares once soared 15%.
Baiyunshan issued a clarification announcement on October 18.
According to the announcement, at present, only the Baiyunshan Hutchison Company produces and sells Banlangen products among the company and its subsidiaries and joint ventures.
Baiyunshan Hutchison Co., Ltd. is a joint venture in which the company holds 50% of its shares and is not included in the scope of the company's consolidation. The company uses the equity method of long-term equity investment to account for it.
The company is mainly engaged in the production and sales of Chinese patent medicines and drug research and development. The main products include Banlangen granules, compound Danshen tablets, and compound Banlangen granules.
In 2019, the company’s investment income from Baiyunshan Hutchison Company was RMB 67,960,300, accounting for approximately 1.65% of the company’s total profit for the year; the investment income obtained in the first half of 2020 was RMB 35,998,200, accounting for approximately 1.59% of the total profit for the period.
The sales revenue of compound Banlangen granules produced by Baiyunshan Hutchison Company in 2019 was approximately RMB 10,910,700, accounting for 7.23% of the company’s sales revenue for the year; the sales revenue for the first half of 2020 was approximately RMB 75,546,100, accounting for the company’s sales revenue for the same period Of 8.35%.
The sales of Compound Banlangen Granules are not expected to have a significant impact on the company's operating results.