Germany Exhibition Health (000813): Practical Cooperation With Hemp Investment To Plan The Whole Industry Of Hemp Industry

On the evening of March 15th, the German exhibition Health announced a reply to two letters of concern from the Shenzhen Stock Exchange.

The company said that it is firmly optimistic about the long-term development of industrial hemp, and the Han Chinese group will give the 25% stake of hemp investment to the company. The company will pay 400 million yuan in sincerity, which is not only a fair trade with general business practices, but also a determination of the two sides to confirm the sincerity of cooperation.

The company has good operating conditions, abundant cash flow, and advantages in capital and sales channels. It combines the unique advantages of hemp investment in the production and research and development of industrial hemp, such as cultivation and extraction, and so on.

The cooperation between the two sides is frank and pragmatic. The prospect of the industrial hemp industry is broad, which deserves more expectation from the market and investors.

In addition, the German exhibition health also said that in addition to this strategic cooperation related matters, the company and Han Zhong Group and its associated parties do not have other funds, business and other contacts; the 3 months before the announcement of the agreement, the controlling shareholders, actual controllers, directors, supervisors, senior management and their immediate family members do not exist to use insider information to buy and sell shares of the company, nor do they disclose the insider information in advance to cause abnormal fluctuations in stock prices.

Choice of investment opportunities in the whole industry chain

In view of the property rights control relationship of hemp investment, Yunnan Han Su and Yunnan Han League, the German exhibition health has been disclosed in detail in reply letter.

In general, the relationship between Han Ma investment and Yunnan Han League is the "parent Sun company" relationship in terms of equity relations. From the business scope, hemp investment is mainly engaged in project investment, investment management, asset management and business management consulting, and the overall layout of the whole industrial chain of the industrial hemp is integrated.

Therefore, similarly, around the layout of the hemp industry, the German exhibition health is to cooperate with the parent company's Hemp investment. It can choose the investment opportunities and share the profits of the whole industry value chain of HMA investment. The Milky Way bio and merry health are the minority shareholders of Yunnan Han Su, a subsidiary of its raw material extraction link. The company intends to hold the Yunnan Han alliance, and it is working with sun's company in the process of extraction.

Specifically, in terms of equity relations, natural person Zhang Ke and Cheng Xi jointly hold 100% stake in Dalian Hon Bang Enterprise Management Co., Ltd., Dalian Han Bang holds 100% stake in Han Zhong Group, and Han Zhong Group holds 93% stake in hemp investment.

Hemp investment holds 74.45% shares in Yunnan Han Su and indirectly holds 45.71% shares in Yunnan Han League through Yunnan Han su.

The relationship between hemp investment and Yunnan Han Su and Yunnan Han League is related to each other.

In terms of specific business, hemp investment subsidiary, Su Ma Biology (shareholding 100%) and Han Zheng Technology (shareholding 60%) business areas are breeding and planting.

Su Ma biology is a modern biotechnology enterprise that integrates breeding, breeding, breeding and popularization. It has seed registration certificate and industrial cannabis planting license.

Han Zheng technology mainly focuses on scientific selection, breeding and cultivation of industrial hemp in the world.

In the extraction of raw materials for medical marijuana, Yunnan Han Su, which is under the investment of hemp, is mainly engaged in scientific research, planting, processing and product sales of industrial hemp. Its main components are extracted and separated from industrial hemp leaves, and has been checked and accepted by the executive heads and the provincial Public Security Bureau, and obtained the "industrial hemp leaf processing license".

In the field of biopharmaceutical, Han Ma has set up Han Yi organisms (100%), engaged in drug research, drug development and commercialization based on cannabinoid.

It is worth noting that the relevant cooperation between the two companies does not constitute conflict and violation, compared with the reply letter of the German exhibition health and sincere shares.

Cheng Zhi shares said that investing in Yunnan Han League did not involve investment in hemp. After Yunnan Han Su pferred the shares of Yunnan Han Union, the proceeds from the pfer of shares were obtained from Yunnan Han Yuan, which did not cause the value impairment of hemp investment.

Showing sincerity and confidence in cooperation

This Dezhou health and Han Zhong group respectively produced 400 million yuan sincerity gold and 25% equity pledge of Han Ma investment as a guarantee to ensure the smooth progress of strategic cooperation.

This demonstrates the firm determination of the German exhibition to enter the industrial marijuana healthfully, and effectively safeguards the interests of minority shareholders.

The company said that the payment of 400 million yuan in sincerity and sincerity was based on the valuation of the latest round of equity pfer or capital increase in hemp investment.

Statistics show that in January 2018, Yu Ye group's strategic stake in hemp investment was valued at about 1 billion 600 million yuan. At present, Yu Ye group owns 7% of hemp investment.

In fact, because of the comprehensive layout of the upstream and downstream industries of the whole industry chain, the investment in hemp investment reflects the advantages of wide business scope, full qualification and many patents, and has already made profits, and its assets valuation premium is higher than that of its subsidiary companies.

According to Dezhou health reply letter, as of December 31, 2018, the total assets of hemp investment amounted to 214 million 432 thousand and 100 yuan, with net assets of 166 million 616 thousand and 900 yuan, and operating income of 146 million 25 thousand and 600 yuan in 2018 and net profit of 87 million 385 thousand and 400 yuan.

Cheng Chi shares reply letter shows that Yunnan Han League was founded in October 2017, is still in the preparatory phase of the project commissioning, Yunnan Han union 2018 annual operating profit of -171 million, net profit of -130 million.

In terms of qualifications and patents, the company said that hemp investment has 88 patent technology intellectual property rights, including seed cultivation, cannabis cultivation, extraction and processing, and extraction.

Cheng Chi shares announced that the Han Han League of Yunnan had the right to use all the production technology, pharmaceutical technology and Application Technology (but not limited to all patent technologies being applied by Yunnan Han Su) before the Yunnan Han deliveries, and the two will form their own intellectual property rights system for the extraction and application of industrial hemp.

The company said that at present, the two sides reached a preliminary consensus, but in the stage of further consultation on the formal plan, the two sides negotiated to confirm the payment of sincerity and pledge shares, the main purpose of which was to lock in the target company.

Through the payment of sincerity gold, the company has obtained 6 months from the date of signing the framework agreement to ensure that it does not undertake any negotiation, signing and other related matters with regard to the acquisition of the underlying company except the company.

If the deadline for expiring cooperation is expired or expired, the Han Zhong Group shall return all the sincerity money paid by the company within 3 days.

In order to strengthen risk management, the company has paid 100 million yuan in good faith. The Han group has pledged its 25% stake in the hemp investment company to the company and completed the registration of share pledge. The remaining 300 million yuan will be used and managed by the two sides.

The commercial purpose of payment of sincerity is reasonable and in line with commercial practice and does not constitute financial self-help or pledge financing.

Rich variety pipeline

Actively expand business areas

The health exhibition of Tiande textile was Tianshan textile. In 2016, it was reorganized into Jialin pharmaceutical company and became more famous.

The core variety of 2017 sales accounted for more than 99% of the main business income.

In December 2018, ah Le officially won the bid "4+7" with quantity purchase.

In the face of policy changes, companies need to actively enrich product lines.

The company said that since its listing, it has been seeking to optimize the industrial structure and solve the problem of single product line.

Through mergers and acquisitions, we can quickly introduce new products and develop new businesses, but the company has maintained a cautious attitude. Despite the excellent capital, there has been no large-scale acquisition.

According to the financial report, in the past two years, the German healthy Monetary Fund has been maintained at around 2 billion yuan, while the short-term and short-term loans are zero.

In 2018, the company planned to invest 970 million yuan to undertake mergers and acquisitions in the pharmaceutical industry, but it ended because the investment platform was not included in the acquisition target.

The company said that for many years, the industry mariner is firmly committed to its future development.

According to the January 2019 Research Report of Guo Hai securities, China accounted for 25% of the total output of industrial hemp in the world. As of the end of 2017, the market size of China's cannabis two phenol (CBD) industry has reached 448 million yuan. It is expected that the market scale of CBD will increase to 1 billion 800 million yuan in 2024, and the growth rate of recovery is 21.96%.

Statistics show that hemp investment is currently the only legal group in China that is based on the layout of the whole industrial chain of industrial hemp and is based on biopharmaceutical industry. It has a full license of industrial hemp and has the qualification of core varieties, and has carried out breeding, planting, extraction, research and development, production and marketing worldwide.

For example, the Hemp Variety hemp No. 1, a fiber used, has obtained the registration certificate of crop varieties in Heilongjiang province. The area of cultivation is over one hundred thousand mu. The high content of medical CBD, HEMA No.1, has entered the stage of multiplication. Yunnan Han Su has built the only factory in the world that can extract the flavonoid A from the hemp. It can extract and separate effective components which are not psychoactive.

Han Yi has declared more than 80 patents at home and abroad, and discovered the new mechanism of CBD in treating pulmonary hypertension and inhibiting the replication of influenza A virus.

According to the cooperation agreement, the two sides first ensured the stability of the management team. First of all, relying on the existing personnel and technology to strengthen cooperation, and making full use of the strong advantages of the company in the promotion and sales channels of funds and drugs, quickly open the application market.

The company will be equipped with the management team needed for the operation of industrial hemp according to its business situation. In the future, it will acquire technical reserves through its own accumulation or cooperative development, and enrich the company's product line.