Edited: Huang Sheng
ST Kangmei (600518) announced on the evening of July 2 that the company's shares will be withdrawn from other risk warnings on July 4, 2024, and the stock will be suspended on July 3, 2024. After the cancellation, the A-share will be referred to as Kangmei Pharmaceutical, and the daily rise and fall of the stock price will be limited to 10%.
In the secondary market, ST Kangmei rose 0.52% today to 1.93 yuan per share, with a total market value of 26.757 billion yuan.
On the evening of June 26, Kangmei Pharmaceutical (stock abbreviation "ST Kangmei") issued an announcement announcing that it would apply to the Shanghai Stock Exchange to withdraw the "other risk warning". At the opening of the 27th, the stock price rose to the limit.
According to the announcement, Kangmei Pharmaceutical's application for the withdrawal of "other risk warnings" is mainly based on three reasons: the company's internal control audit reports for 2022 and 2023 are standard unqualified opinions; The Company has received the final judgment of the second instance of the Bohai Trust case, and the uncertain impact on the Company has been eliminated. The company's ability to continue operations has improved, and the situation of its core business has continued to improve.
According to CCTV, this is not the first time the company has applied for "hat removal". In April 2023, Kangmei Pharmaceutical had submitted an application to withdraw the "other risk warning", but decided to withdraw the application in less than two months. At that time, Kangmei Pharmaceutical said that the company still had historical lawsuits that had not yet been finalized, and its profitability needed to be further recovered and improved.
As of the end of the first quarter of 2024, Kangmei Pharmaceutical has 195,500 shareholders, and investors are obviously more concerned about the company's performance growth space and future development prospects, but the company's hematopoietic capacity is still weak.
From the perspective of performance, Kangmei Pharmaceutical has shown positive development, and the company's operating income in 2023 will be 4.874 billion yuan, a year-on-year increase of 16.6%; The net profit attributable to the parent company was 100 million yuan, turning losses into profits. The operating income in the first quarter of 2024 was 1.2 billion yuan, a year-on-year increase of 5.01%; The net profit attributable to the parent company was 7.4713 million yuan, a year-on-year turnaround.
However, it is worth noting that from 2019 to 2023, Kangmei Pharmaceutical's non-net profit will be in a state of huge loss for 5 consecutive years, with -4.865 billion yuan, -30.586 billion yuan, -7.968 billion yuan, -1.509 billion yuan, and -753 million yuan respectively. In the first quarter of 2024, the net profit after deduction will remain negative (-58 million yuan). In the first quarter of 2022, 2023 and 2024, its net cash flow from operating activities was also negative.
Image source: Photo by reporter Wu Zepeng
Founded in 1997 and listed on the Shanghai Stock Exchange in 2001, ST Kangmei's predecessor, Kangmei Pharmaceutical, is a pharmaceutical manufacturing company with the traditional Chinese medicine decoction piece business as the core.
From 2016 to 2018, the actual controller and chairman of Kangmei Pharmaceutical Co., Ltd. falsely issued and tampered with VAT invoices and forged bank documents, accumulatively inflating monetary funds by 88.7 billion yuan, inflating income by 27.5 billion yuan, and inflating profits by 3.9 billion yuan. As a result, Kangmei Pharmaceutical has become the company with the highest amount of financial fraud in the history of A-shares.
In November 2021, as a direct party to the "Kangmei case", Ma Xingtian, the original actual controller of ST Kangmei, was sentenced to 12 years in prison and fined 1.2 million yuan for the crimes of manipulating the securities market, illegal disclosure, non-disclosure of important information, and bribery by a unit. His wife, Xu Dongjin, and 11 other responsible persons were sentenced to fixed-term imprisonment and fined for participating in related securities crimes.
From 2019 to 2021, the company's operating income was 11.446 billion yuan, 5.412 billion yuan, and 4.153 billion yuan respectively; The net profit attributable to the parent company was -4.661 billion yuan, -31.085 billion yuan and 7.918 billion yuan respectively.
In November 2021, Guangdong Shennong, a subsidiary of Guangzhou Pharmaceutical Group, took action and participated in the bankruptcy reorganization of ST Kangmei. In the end, Guangdong Shennong's replaced Kangmei Industry as the company's new controlling shareholder. As of the end of 2023, Guangdong Shennong's held 25.31% of the company's shares.
Daily Economic News, comprehensive public news, CCTV, Blue Whale Finance
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk.
National Business Daily