Chapter 228 [Hengtong Pharmaceutical Group (2/10)]
Chapter 228 [Hengtong Pharmaceutical Group (210)]
When they saw the asset income chart updated by Fang Hong on Weibo and saw the asset scale of more than 1.4 billion, everyone believed that he did not do the second wave of Shandong Juli's main rise.
Although the second main Shenglang market also more than doubled in height, after all, the market was a little too small and could not accommodate too much capital.
The chief rudder came in and bought 13 million shares, buying almost 150 million. When it came time to finally ship the goods, he gave up all his efforts and resorted to the "one-word soul-cutting knife" to ship the goods.
The amount of funds of one chief helmsman is already enough. If another K god comes and buys hundreds of millions of funds, they might step on each other and neither of them can get out, or even if they get out, they will not achieve the expected target price and target.
Profits go out.
The most important thing is that fan investors saw the profit curve of K God and realized that they could make more money by not playing monster stocks but by getting big butts.
I started operating institutional accounts on May 25th and now it has only been two months and I have doubled my profits to over RMB 700 million. I can only earn so much by relying on my big ass with abundant liquidity.
Because large stocks can be used to increase positions, one point of arbitrage in large-cap stocks is as high as six or seven points or more in small-cap stocks.
Thinking about it this way, stock investors also feel that with K God's trading level in a large weight, not to mention that the previous wave of market prices has eaten nearly twice as much meat, there is really no need to compete with the chief rudder for meat.
…
Monday, July 13th.
Today, when the A-share market opened, Shandong Juli sealed the price limit without any doubt. The stock price dropped to 16.41 yuan, and the trading volume for the whole day was only 25.85 million yuan. The person who took the last shot paid for the carnival of everyone in front.
.
In terms of index, the market adjusted again today, falling below 3100 points and closing down -1.07% at 3080.56 points.
Afternoon, Star Capital Headquarters.
In the CEO's office, Hua Yu looked at Fang Hong and said: "I met with Wang Qingxiong, the chairman of Hengtong Pharmaceutical Group, on Saturday morning and once again proposed to acquire the company's Gufangzi and Yishengtang brands, but he still rejected it.
Already.".
Hearing this, Fang Hong chuckled and said softly: "It's quite expected. Hengtong has spent so many years buying up these ancient prescriptions in order to hide them and sell more profitable medicines."
In Wang Qingxiong's eyes, medicines that cost less and can cure diseases are not good medicines, but those medicines that treat the symptoms but not the root cause are good medicines. Those medicines that are fine when you take them but your body will not be able to survive once you stop taking them.
It's good medicine.
Hengtong Pharmaceutical Group has spent so much effort collecting those prescriptions over the years, not to promote them, but to prevent them from being circulated.
However, the time-honored brand Yishengtang owned by the group company is very famous, and it is indeed a conscientious traditional Chinese medicine shop. There are also experienced doctors who sit in the shop for consultation. The brand is also very well-known, and it also has a group of capable traditional Chinese medicine doctors.
division.
Because Wang Qingxiong needs to use the Yishengtang brand to cover up his true purpose. To put it bluntly, he wants to be both a frontman and a memorial arch.
But this is his brilliance. If you say that he deliberately hides ancient Chinese medicine prescriptions or suppresses Chinese medicine, he will bring Yishengtang out to you.
In fact, you only need to look at the revenue structure of Hengtong Pharmaceutical Group to find the fox's tail. Yishengtang only accounts for 3.16% of the company's revenue, which is less than 5 percentage points.
What Wang Qingxiong is clever about is that he also expresses to the outside world that traditional Chinese medicine does not make money and accounts for a very small proportion in the group company. However, the things of our ancestors cannot be lost. We must continue to practice and support even if it does not make money. Therefore, Yishengtang wants to
Keep doing it, blah blah blah.
It seems reasonable and convincing, and has won praise from many people outside.
Ordinary people with flat heads really can't see it.
At this time, Hua Yu's assistant Yue Qing came over and sat down on the empty sofa next to her. She brought a piece of information, which was about Hengtong Pharmaceutical Group.
Yue Qing opened the file and browsed for a moment before saying: "Hengtong Pharmaceutical was established in 1998. The company's current business scope includes: Chinese patent medicines, chemical pharmaceutical preparations, antibiotic preparations, biochemical drugs, disinfection supplies, health foods, dairy products, and Chinese medicinal materials.
Sales of traditional Chinese medicine pieces, chemical raw materials, antibiotic raw materials, biological products, pharmaceutical packaging materials and containers, and pharmaceutical excipients; retail of Class I medical devices and retail of Class II medical devices.”
"Last year, Hengtong Pharmaceutical Group achieved operating income of 28.439 billion yuan and total taxes and fees of 457.97 million yuan. It is the second largest private enterprise in Xincheng after Huayang Group and ranks among the top three among nearly 10,000 pharmaceutical commercial enterprises in the country.
It currently ranks first among private pharmaceutical commercial enterprises and has been among the top 500 mainland enterprises for five consecutive years."
"As of the first half of this year, Hengtong Pharmaceutical Group has total assets of 18.193 billion yuan, registered capital of 1.5 billion yuan, 12,513 employees, more than 80 subsidiaries, and 876 directly operated and franchised retail pharmacies."
"This is the material report that has been compiled after due diligence on the company." Yue Qing gave a rough overview and handed another material document to Fang Hong. The latter took it and opened it, and read it for about seven or eight minutes.
I quickly noticed the key information in the material report.
Fang Hong immediately looked at Hua Yu: "Is Hengtong Pharmaceutical Group in trouble now?"
Hua Yu nodded and said: "There is indeed trouble and it is not small. Hengtong Pharmaceutical Group has expanded at an extremely fast rate in the past three years, and the global financial tsunami triggered last year also had a great impact on the group. Wang Qingxiong has also encountered it now.
Big trouble."
Fang Hong looked at the material report again and said: "Expand the discussion."
Hua Yu continued: "The problem began five years ago, in February 2004, when Wang Qingxiong introduced external capital in order to speed up the expansion of Hengtong Pharmaceutical. At that time, Zhongtai Capital invested 1.35 billion in exchange for 30% of the equity.
Becoming the second largest shareholder, Hengtong Pharmaceutical has entered the fast lane of accelerating expansion after receiving financial support."
The scale of this 1.35 billion fund is an astronomical figure now, and it will be an astronomical figure ten years later. It was undoubtedly even more valuable in 2004, when Hengtong Pharmaceutical Group was given a 4.5 billion offer.
Valuation.
Hua Yu paused for a moment and then said: "While Zhongtai Capital brought funds to Wang Qingxiong, it also put shackles on him, forcing him to desperately expand, because the two parties signed the terms of the 'gambling agreement', if not for Zhongtai Capital
Due to various reasons, Hengtong Pharmaceutical cannot be listed five natural years after the investment, and Zhongtai Capital has the right to withdraw from Hengtong Pharmaceutical Group through repurchase."
Hua Yu immediately added: "Strictly speaking, this is not a 'gambling clause' agreement, but a 'share repurchase clause' agreement."
Hearing this, Fang Hong nodded and seemed to be talking to himself: "In other words, when Hengtong Pharmaceutical was financing in 2004, Wang Qingxiong and Zhongtai Capital had clearly agreed that if Hengtong Pharmaceutical could not IPO in five years,
, then Hengtong Pharmaceutical must buy back the equity held by Zhongtai Capital. According to this due diligence report, it must also ensure reasonable returns from Zhongtai Capital..."
Hua Yu immediately said: "According to the reliable information I got, in the agreement signed by the two parties, Zhongtai Capital required a compound interest return of about 45% per year. In other words, Zhongtai Capital's original investment of 1.35 billion yuan that year will require this year.
If the exit with capital and profits exceeds at least 8 billion yuan, Hengtong Pharmaceutical Group will need to spend 8.0 to 8.3 billion to repurchase the 30% equity held by Chung Tai Capital."
This equals a five-fold return on investment.
At the time of the investment, the valuation of Hengtong Pharmaceutical Group was 4.5 billion. This means that Zhongtai Capital sold its share of the equity and received an investment return of five times the amount of financing that year in accordance with the agreement. The difference required Wang Qingxiong to sell himself
be compensated with equity proceeds.
Hengtong Pharmaceutical Group's current total assets are about 18 billion, of which the net assets are about 10.2 billion. Even if the price is based on net assets, Wang Qingxiong has to sell 39.7% of his equity in order to compensate Zhongtai Capital.
After a while, Hua Yu said again: "It is now July. Five and a half years have passed since the time limit of the gambling agreement between the two parties. Zhongtai Capital has extended it for half a year, but the time limit has also expired. Basically, Hengtong Pharmaceutical can be announced
The listing plan has failed. It can be said that Wang Qingxiong has actually been completely controlled by Zhongtai Capital. It depends on whether Zhongtai Capital will initiate a series of agreement processes."
Do you want to start it? Needless to say?
It is the nature of capital to pursue profits. The current situation is that Hengtong Pharmaceutical is already a piece of meat on the chopping board of Chung Tai Capital.
Fang Hong closed the materials and looked at Hua Yu and said neatly: "Since Wang Qingxiong is stubborn and refuses to sell Yishengtang and the ancient prescriptions in his hand, then we will acquire Hengtong Pharmaceutical and kick Wang Qingxiong out."
As soon as these words came out, Hua Yu and his assistant Yue Qing couldn't help but be surprised. Hengtong Pharmaceutical Group is the second largest company in Xincheng. A merger worth tens of billions is definitely a big event in Xincheng business district, and it is also a major event nationwide.
