M&A exploded and performance plummeted
Asia-Pacific Pharmaceutical's turnaround depends on demolition funds exceeding 260 million yuan
Recently, Asia-Pacific Pharmaceuticals (002370.SZ) released its 2020 performance forecast. The company estimates that the company will make a profit of approximately 20 million to 30 million yuan in 2020, and a loss of 207 million yuan in the previous year. But it relies on compensation for factory demolition.
At the same time, the company's actual controller holdings were all frozen, but the stock price has seen successive daily limits.
Year-end surprise signing
Turn losses into profits with compensation for demolition
According to the previous report for the third quarter of 2020 issued by Asia Pacific Pharmaceuticals, in the first three quarters of 2020, Asia Pacific Pharmaceuticals achieved operating income of 361 million yuan, a year-on-year decrease of 50.26%. The net profit attributable to shareholders of listed companies (abbreviated as net profit)- 107 million yuan, the profit of the same period last year was 70 million yuan, a year-on-year decrease of 1647.88%.
Net profit after deducting non-recurring gains and losses (referred to as deduction of non-net profit) was -118 million yuan, compared with -07 million yuan in the same period last year, a year-on-year decrease of 158.681%.
The loss in the first three quarters reached 107 million. Can Asia Pacific Pharmaceuticals complete the reversal by relying only on the fourth quarter performance?
In the performance forecast, Asia-Pacific Pharmaceutical explained that its operating performance turned from a loss to a profit, which was mainly caused by the company's Keqiao factory house demolition compensation, which was part of the company's non-recurring profit and loss. .
According to the announcement issued by Asia-Pacific Pharmaceuticals on December 26, 2020, Asia-Pacific Pharmaceuticals held a board of directors on December 25, 2020, reviewed and approved the proposal to sign a demolition compensation agreement, and agreed to the investment and development of the central city in Keqiao District, Shaoxing City, Zhejiang Province The company compensates for the demolition of the company’s Keqiao plant in cash. The total amount of demolition compensation is approximately 266 million yuan.
According to the announcement, compensation for demolition is paid in four installments.
Before December 29, 2020 after the agreement is signed, the relevant parties will pay 146.3 million yuan for the compensation of the demolition agreement; thereafter, they will pay separately before January 31, 2021, June 30, 2021, and within one year after the effective date of this agreement. 40 million yuan, 40 million yuan, 39.6695 million yuan.
On December 29, 2020, the company also issued an announcement stating that it had received the first demolition compensation payment of 146 million yuan.
M&A exploded and performance plummeted
All shares held by the actual controller are frozen
Asia Pacific Pharmaceuticals turned to profit with the help of non-recurring gains and losses. Some netizens ridiculed that “doing business and setting up factories lost tens of millions, and later they lost hundreds of millions in demolition.”
But in fact, due to the sharp decline in performance in the Asia-Pacific pharmaceutical industry in recent years, there has also been an explosion of mergers and acquisitions.
From its listing in 2010 to the first three quarters of 2020, Asia Pacific Pharmaceuticals achieved a cumulative net profit of 1.479 billion yuan. Assuming a profit of 30 million yuan in 2020, the company will have a cumulative loss of 1.342 billion yuan in 11 years of listing.
According to the Tianyancha APP, Zhejiang Asia-Pacific Pharmaceutical Co., Ltd. is a specialized and large-scale high-tech enterprise integrating scientific research, production and sales of chemical preparations. Its predecessor, Zhejiang Asia-Pacific Pharmaceutical Factory, was founded in December 1989, 2001 Completed the shareholding system transformation in 2010 and was officially listed on the Shenzhen Stock Exchange on March 16, 2010. It has two major businesses including chemical preparations and raw materials.
In addition, the company is still a family business. Chen Yaogen is currently the chairman and legal representative of the company. At the same time, Chen Yaogen is also the actual controller of the company, directly holding 5.06% of the shares, and his wife Zhong Wanzhen directly holds 3.93% of the shares.
It is understood that in 2015, Asia Pacific Pharmaceuticals spent 900 million yuan to acquire 100% of Shanghai Xinfengfeng.
However, in 2019, Shanghai New Peak's performance dropped sharply, and its wholly-owned subsidiary Shanghai New Energy still has illegal external guarantees.
On the evening of December 24, 2019, Asia Pacific Pharmaceuticals announced that it had in fact lost control of Shanghai Xinfengfeng and its subsidiaries, and the company incurred an investment loss of 1.24 billion yuan.
The Asia-Pacific Pharmaceutical's performance in 2019 is also relatively poor.
In 2019, the company achieved operating income of 709 million yuan, a year-on-year decrease of 45.84%, net profit of 2.069 billion yuan, deduction of non-net profit of 2.088 billion yuan, a year-on-year decrease of 1095.57% and 1150.41% respectively.
After that, the share price of Asia Pacific Pharmaceuticals also began to fall.
On April 11, 2019, the stock price of Asia Pacific Pharmaceuticals reached a maximum of 76.48 yuan per share. As of the 19th of this month, the stock price closed at 4.50 yuan per share, a decrease of 94.12%.
At the same time, Chen Yaogen's current situation is not good.
On January 9, Asia Pacific Pharmaceuticals also issued the "Announcement on the Pledge Extension of Part of the Controlling Shareholders' Shares" stating that Chen Yaogen and his wife actually control 193 million shares of Asia Pacific Pharmaceuticals, accounting for 35.97% of the company's total share capital.
Among them, the accumulated pledged shares are about 169 million shares, accounting for 31.42% of the total share capital, the cumulative judicially frozen shares are 193 million shares, accounting for 35.97% of the total share capital, and 130 million shares are waiting to be frozen, accounting for 24.27% of the total share capital.
Continuous stock price limit
The company stated that there were no undisclosed major issues
Recently, there has been an abnormal movement in the stock trading of Asia Pacific Pharmaceuticals.
On January 14th, Asia Pacific Pharmaceuticals quickly increased the limit after the market opened in the morning, closing at 3.38 yuan per share, and opened the daily limit again on January 15.
On the evening of the 17th, Asia Pacific Pharmaceuticals issued an announcement stating that on January 14th and 15th, the deviation of the closing price increase for two consecutive trading days exceeded 20%.
The company, the controlling shareholder and the actual controller have no major issues that should be disclosed but not disclosed about the company.
The Asia-Pacific pharmaceutical industry's gains did not stop, and once again closed the daily limit for two consecutive trading days.
The stock price rose rapidly after the opening of the market in the morning on January 18, and then the trend remained stable.
The market opened in the morning on January 19, and the stock price rose rapidly and then fell back briefly. After that, it rose again at the intraday limit at 10 o'clock in the morning, at 4.50 yuan per share.
Chengdu Commercial Daily-Red Star News reporter Chen Yingpeng