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On June 29, Zhengchuan shares (603976. SH) announced that in 2021, the company's convertible bond fundraising project "China Borosilicate Pharmaceutical Glass Production Project" was completed, and the "China Borosilicate Pharmaceutical Glass and Drug Compatibility Research Project" was postponed to June 30, 2027, with a current progress of 41.42%.
Titanium Media APP noted that the "borosilicate pharmaceutical glass production project" was originally scheduled to be completed by the end of 2022, but the previous one has been postponed for two years; The "Borosilicate Pharmaceutical Glass and Drug Compatibility Research Project" was originally scheduled to be completed on August 15, 2023. At the end of December 2022, when it announced the lifting of the prevention and control measures for Class A infectious diseases stipulated in the Law of the People's Republic of China on the Prevention and Treatment of Infectious Diseases for the new coronavirus infection, Zhengchuan Co., Ltd. held a board meeting to postpone the above two projects to June 30, 2024.
Source: Zhengchuan shares announcement
This is also one of the aspects of the once hot "new crown concept stocks" in the post-epidemic era. Zhengchuan Co., Ltd. explained the reason for the postponement, saying that the investment situation of the fund-raising project is different from the expected in terms of the material cost of compatibility testing and external testing and evaluation fees, and the expiration time needs to be adjusted.
Of course, on the other hand, the significance of the extension of this convertible bond project does not stop there, and its debut was on July 30, 2020, which was called one of the "king bomb" events of vaccine glass bottle hype by the market. Since the second quarter of that year, the shortage of "new crown vaccine glass bottles" has become the focus of domestic attention, foreign media said that the dawn of mass production of new crown vaccines has appeared, but due to the limited production of glass vials for storing vaccines, I am afraid that it will not be able to immediately promote it globally, Schott, one of the world's largest medical glass manufacturers, said that it has received an order for 1 billion vaccine bottles.
With the expectation of vaccine glass bottles, in 2020, Zhengchuan shares have soared by 135% to 43 yuan from the beginning of May to July, with 11 daily limits in 41 trading days, and the market value has rushed to 6 billion.
At the end of July of the same year, the company officially disclosed a 400 million yuan convertible bond plan to invest in the expansion project of pharmaceutical glass bottles, which was tantamount to "adding fuel to the fire". The company's share price immediately began to soar, standing at a historical peak of 108 yuan in early August, doubling again from the beginning of July, and rising 697% from 13.55 yuan at the beginning of the year.
Zhengchuan shares 2019-2020 stock price daily K-line chart, source Oriental Wealth
At that time, a local lawyer in Chongqing pointed out that this was an expansion plan proposed by Zhengchuan Co., Ltd. "without any vaccine glass bottle production capacity and without receiving any vaccine glass bottle orders".
In the second half of the year after the stock price peaked, the major shareholders of Zhengchuan began to reduce their holdings significantly. Deng Hong and Deng Buli, the two concerted actors of Chairman Deng Yong, reduced their holdings by 7.86 million shares from September 2020 to March 2021, accounting for 5.2% of the total shares of Zhengchuan Co., Ltd., and cashed out more than 171 million yuan.
In the past three years, the status quo of the two fundraisings is a reflection of the fate of Zhengchuan shares.
The company's original main product was soda-lime glass tube bottles, due to its weak alkali resistance and poor mechanical properties, Zhengchuan Co., Ltd. proposed to transform and upgrade to borosilicate glass bottles during the IPO period in 2018.
Before the epidemic, Zhengchuan Co., Ltd.'s revenue has fluctuated around 500 million yuan since 2013, and gradually shrank in 2018. From 2018 to 2020, Zhengchuan Co., Ltd. achieved revenue of 596 million yuan, 521 million yuan, and 502 million yuan respectively, and the net profit attributable to the parent company was 83 million yuan, 61 million yuan, and 53 million yuan, declining for three consecutive years.
At the same time, from 2018 to 2020, its gross profit margin was 28.67%, 27.14%, and 25.55%, net profit margin was 14%, 12%, and 11%, respectively, and the return on equity was 8.56%, 6.04%, and 5.13%, respectively.
In 2021, the full set of boron kilns in Europe introduced by Zhengchuan Co., Ltd. was officially ignited and put into operation, and the company's annual production and sales of borosilicate glass bottles soared by nearly 6%, and the gross profit margin increased by 2.58% to 28.62%, contributing 487 million yuan in revenue. The company's annual operating income was 796 million yuan, a year-on-year increase of 58.70%; The net profit attributable to the parent company was 106 million yuan, doubling year-on-year.
In 2022, due to factors such as the decrease in sales of vaccine bottle customers, the company's borosilicate glass bottle performance will shrink by 11.02%, and the gross profit margin will decrease by 3.97%. The overall revenue decreased slightly, and the net profit attributable to the parent company fell by 39.25%.
Source: Zhengchuan 2023 annual report
In 2023, the company's borosilicate glass bottles will continue to be difficult to sell, with a decline in gross profit margin of 10.21%, and a decrease of 7.48% and 2.31% in production and sales respectively.
As a result, the company's profit situation basically fell back to the level of 2019, and last year's net profit was only 40 million yuan, a year-on-year decrease of 37.83%, which was basically at the bottom of the pharmaceutical glass listed companies, and the revenue growth rate was far lower than the growth of fixed assets, and the money spent was not earned.
Source: Choice data
As of the close of trading on June 28, the share price of Zhengchuan shares has returned to 14.11 yuan, which is the same as at the beginning of 2020 and nearly 8% compared with the peak of "ankle chopping" in August 2020. (This article was first published on the Titanium Media APP, by |.) Huang Tian)