"Jilin Richest Man" A Shares Backdoor Bureau

We should revise the backdoor plan of the pharmaceutical industry.

In November 28th, 300108.SZ announced that it had received the "administrative penalty decision" of the Jilin Securities Regulatory Commission. It had decided to impose a fine of 600 thousand yuan on the restructuring of the company as a result of its misleading statement. The chairman of the company, Sun Jun, Zhang Liang and chief financial officer Zhang Zhongwei were also fined 300 thousand yuan, 300 thousand yuan and 100 thousand yuan respectively.

The punishment was related to the previous amendments to the Limited by Share Ltd group (the "amendment medicine") plan for backdoor listing.

Only in July 10th of this year did the Jilin drug holding company, which signed the agreement of intent with the revised pharmaceutical industry, hurriedly terminate the major asset reorganization after 14 days.

On the other hand, the two sides said they were more thought-provoking.

In the announcement of its termination of restructuring in July 24th, Kyrgyzstan said, "after the conditions are ripe, we will continue to promote the transfer of the controlling rights of listed companies, the issue of shares and other ways to buy the 100% stake in the pharmaceutical industry".

The reason for this concern is that this transaction is expected to constitute a backdoor listing. - Song Wenhui diagram

Strange 14 days story

The story began in July 10, 2019, and Jilin control company threw out the news to buy the 100% stake in the revised pharmaceutical industry through issuing shares.

The reason for this concern is that this transaction is expected to constitute a backdoor listing.

The background is that in June 20th, shortly before the plan was released, the SFC reopened its opinions to the public on Amending the management measures of major assets reorganization of listed companies, and the policy of loosening the policy of backdoor listing on GEM was formally put forward. Due to the precise layout policy of the case, the market soon aroused widespread concern.

The revised pharmaceutical industry, based in Tonghua, Jilin, is a big TV advertiser with high market recognition.

In May 1995, the company was founded by the chairman of the company. It is one of the largest pharmaceutical companies in China. It concentrates on the production, marketing, chain operation and standard cultivation of Chinese medicinal materials. By the end of 2016, 127 subsidiary companies under the pharmaceutical industry were revised, with 10 employees and 17 billion yuan of stock assets. It has 24 kinds of dosage forms, over 2000 kinds of medicines, health products and so on, and has sold more than 50 hundred million varieties and over 1 billion varieties and 20 kinds.

In addition, the official website shows that there are pharmaceutical industry groups, health groups, pension groups and liquor groups under the revised pharmaceutical industry.

According to the "list of top 500 Chinese private enterprises" released by the National Federation of industry and commerce, the pharmaceutical industry's revenue in 2019 reached 62 billion 418 million, ranking 109.

The chief executive has worked for more than 20 years to revise the pharmaceutical industry. He has repeatedly named "the richest person in Jilin province".

And Ji medicine holdings in 2018 revenue of 942 million yuan, then the market value of 3 billion 900 million yuan.

From the perspective of body size, Jiyao holdings purchased the revised pharmaceutical industry as "snake swallow elephants". It is also regarded as the first trial case of the gem in the industry.

I didn't expect half a month later, but in the evening of July 24th, the plan broke down.

Kyrgyzstan holdings announced that "after the conditions are ripe, we will continue to promote the transfer of controlling shares of listed companies, the issue of shares and other ways to buy the 100% stake in the pharmaceutical industry."

The implication is that JE holdings believes that the restructuring is likely to continue.

After the news came out, in July 25th and July 26th, Ji Medicine Holdings continued to harvest two daily trading restrictions, and the share price rose from 5.4 yuan to 6.53 yuan, or 20.93%, during which 281 million yuan of funds were invested in the control of Kyrgyzstan.

However, the other protagonist of the transaction, the amendment of the pharmaceutical industry, has quite different views.

After the market closes in July 26th, the pharmaceutical industry amended a statement on its official website, denied that it was pushing forward the restructuring with the Kyrgyzstan holdings, "continuing to promote the transfer of control rights of listed companies, planning the issue of shares, and so on, and buying the 100% equity interest of the revised Pharmaceutical Group Limited by Share Ltd".

To this end, the Shenzhen stock exchange sent a letter of concern to Kyrgyzstan holdings, focusing on "whether there is deliberate suspension, suspension of caution, speculation in stock prices, etc.".

Oolong Holdings

Kyrgyzstan holdings responded to the inquiry letter, saying that the aforementioned announcement was oolong.

The final agreement of the agreement on dissolution of the intent agreement was signed in the afternoon of July 24, 2019. Because of the signing of the location in the other company, the staff of the company completed the information disclosure as soon as possible, and used the mobile WeChat to deliver the signature page photos of the agreement. In the rush hour, the uploading staff mistakenly took the revised protocol as the final draft and signed the attached page to submit the report, and in the preparation of the notice, he quoted the contents of the agreement which were inconsistent with the final facts.

In the corrected statement, Kyrgyzstan holdings changed its name, "the company and the pharmaceutical industry no longer plan related major asset reorganization".

Although Kyrgyzstan explained that the Oolong announcement was "a mistake in handling personnel", it laid the foreshadowing for the Commission's investigation.

It needs to be pointed out that at this delicate time node, the third largest shareholder of Jilin Pharmaceutical Holdings Limited, Jilin modern agriculture and emerging industries Investment Fund Limited ("Ji Nong fund") has made a reduction.

On the day of July 26th, the Jilong fund reduced its holdings of 5 million 90 thousand shares by a concentrated auction, accounting for 0.7647%, and the reduction price was 6.53 yuan / share, which was in line with the July 26th price limit.

"Obviously, there is speculation in the relevant statement of the restructuring announcement," said a lawyer from Shanghai in November 29th to the twenty-first Century economic report reporter.

In July 29th, Kyrgyzstan returned to the Shenzhen Stock Exchange's inquiry letter, and also revealed details of the negotiations between the two sides.

"Due to the large volume of the amended pharmaceutical industry and the large number of its business sectors, the merger and reorganization of pharmaceutical assets will constitute a restructuring and listing plan which can not be implemented. On this basis, the two sides continue to study whether they can amend the health group through mergers and acquisitions. As a result of the revision of the pharmaceutical industry and the actual control of the health group, the revised industry limited liability company will also be restructured and listed.

According to Ji Yao holdings, in the case of the two options that are not feasible, the two sides finally decided to transfer the controlling rights plan: "by modifying the chairman of the pharmaceutical company, Lu Zhongkui, the controlling shareholder of the personal transferee, and some of the shares held by Huang Kefeng and Sun Jun of the unanimous action, and then with the right to give up voting rights, the controlling company will be listed by Xiu Lai."

However, contrary to expectations, the plan to revise the pharmaceutical industry's backdoor and Kyrgyzstan holdings listing ended in failure.

Before the news of backdoor Jiji holdings, the revised pharmaceutical industry, which completed the shareholding system reform in 2004, has kept the market in the conjecture of its listing.

"Backdoor special" is expected to raise HK $11 billion 700 million in Hongkong IPO. Over the past few years, it has been possible to revise the scandal items that the pharmaceutical industry intends to borrow or reorganize.

Amendment of listing road in 15 years

In 2007, it was reported that the pharmaceutical industry was going to backdoor Zhejiang Intel group to go public.

According to "medical economics" reported that Xiu Lai expensive in the interview, the response to the backdoor is somewhat hesitant, "backdoor inte group, this should not be."

Subsequently, the Intel group told the media that the company did not plan to issue additional shares to other shareholders or specific investors within one year.

In 2015, the market came to the news that the pharmaceutical industry was listed on Hong Kong to raise HK $11 billion 700 million.

According to media reports, the pharmaceutical industry is expected to submit the listing application to the HKEx in the fourth quarter or early second. Reported that the revised pharmaceutical industry has appointed UBS and Bank of China as an international ranking, to help arrange the listing. The amount of funds raised is about 1 billion to 1 billion 500 million US dollars (about 7 billion 800 million to HK $11 billion 700 million), and it will not be excluded.

"Compared to IPO, for the pharmaceutical industry, the chance of success is higher and time is faster. For pharmaceutical companies with an annual revenue of 5. 6 billion, if they can finance through the listing platform, they can also support their demand for cash flow. A pharmaceutical industry in Beijing pointed out.

However, there are still many "stumbling blocks" in the path of drug listing.

In July 2017, a criminal judgment issued by the intermediate court of Yanbian forest region of Jilin province will be published in 2007.

The judgment shows that in 2007, Xiu Lai had repeatedly bribed Zhu Laifu, the then Jingyu county magistrate of Jilin Province, to give 100 thousand shares of Tonghua pharmaceutical Limited by Share Ltd, and then to 150 thousand shares in 2011.

In addition, in September 2018, the P2P platform "Xiu Li Bao", "fire management", "Qian Bao nun" and "Qian Zhuang net", which had participated in investment by Xiu Lai Mei and its affiliates, were also exploded.