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 bit too small and could not accommodate too much capital.
The chief rudder came in and bought 13 million shares, buying almost 150 million. When the final shipment was made, he also spent a lot of effort and resorted to the "one-word soul-cutting knife" to ship.
The amount of funds for one chief helmsman is enough. If another K-god comes to buy this ticket with 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 reach the expected target price and target. Profits go out.
The most important thing is that fan investors saw K God’s profit curve and realized that they could make more money by not playing monster stocks and getting big butts.
It has only been two months since I started operating an institutional account on May 25, and I have doubled my profits to over RMB 700 million. I can only earn so much by relying on my big butt with ample liquidity.
Because large tickets 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 of this, 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.
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Monday, July 13th.
Today, the A-share market opened. Shandong Juli sealed the price limit without any suspense. The stock price dropped to 16.41 yuan. 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 the index, the market adjusted again today, falling below 3100 points and closing down -1.07% at 3080.56 points.
In the 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. ”.
Hearing this, Fang Hong chuckled and said softly: "It's expected. Hengtong has spent so many years buying up these ancient prescriptions 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 bear it once you stop taking them. It's good medicine.
Hengtong Pharmaceutical Group has spent so much effort collecting these 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's revenue accounted for only 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 TCM does not make money and accounts for a very small proportion in the group company, but the things of our ancestors cannot be lost. We must practice and support even if it does not make money, so Yishengtang wants to Keep going, 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 food, dairy products, 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 sales of Class I medical devices and 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 looked at 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 are indeed problems, and they are not small. In the past three years, Hengtong Pharmaceutical Group has expanded very quickly, and the global financial tsunami caused last year also had a great impact on the group company. Wang Qingxiong is now in great trouble."
Fang Hong looked at the material report again and said, "Expand it."
Hua Yu continued, "The problem occurred five years ago, in February 2004, when Wang Qingxiong introduced external capital to speed up the expansion of Hengtong Pharmaceutical. At that time, Zhongtai Capital invested 1.35 billion in exchange for 30% of the equity and became the second largest shareholder. After obtaining financial support, Hengtong Pharmaceutical entered the fast lane of accelerated expansion."
This 1.35 billion fund scale is an astronomical figure at present, and it will be an astronomical figure ten years later. At that time in 2004, it was undoubtedly more valuable. At that time, Hengtong Pharmaceutical Group was valued at 4.5 billion.
Hua Yu paused for a moment and said, "While Zhongtai Capital brought Wang Qingxiong funds, it also put him in shackles and forced him to expand desperately, because the two parties signed a 'betting agreement' clause. If Hengtong Pharmaceutical cannot be listed five natural years after the investment due to reasons other than Zhongtai Capital, Zhongtai Capital has the right to exit Hengtong Pharmaceutical Group by repurchase."
Hua Yu immediately added, "Strictly speaking, this is not a 'betting 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 raised funds in 2004, Wang Qingxiong and Zhongtai Capital had already made it clear that It is agreed that if Hengtong Pharmaceutical cannot IPO in five years, Hengtong Pharmaceutical must repurchase the equity held by Zhongtai Capital. According to the due diligence report, it must also guarantee a reasonable return for Zhongtai Capital..."
Hua Yu immediately said: "According to the reliable information I have received, Zhongtai Capital required a compound interest return of about 45% per year in the agreement signed by the two parties. In other words, Zhongtai Capital's original investment of 1.35 billion yuan that year requires an exit of at least 8 billion yuan including principal and interest this year. Hengtong Pharmaceutical Group needs to pay 8 to 8.3 billion to repurchase the 30% equity held by Zhongtai Capital."
This is equivalent to a five-fold return on investment.
When it invested, Hengtong Pharmaceutical Group was valued at 4.5 billion, which means that Zhongtai Capital sold its equity and obtained an investment return of five times the amount of financing that year according to the agreement. The difference needs to be compensated by the proceeds from Wang Qingxiong's sale of his equity.
Hengtong Pharmaceutical Group currently has a total asset size of about 18 billion, of which the net asset size is about 10.2 billion. Even if it is valued at net assets, Wang Qingxiong has to sell 39.7% of his shares to compensate Zhongtai Capital.
After a while, Hua Yu said again: "It is July now. Five and a half years have passed since the deadline for the gambling agreement between the two parties. Zhongtai Capital has extended it for half a year, but it has also reached the deadline. It can basically be declared that Hengtong Pharmaceutical's listing plan has failed. It can be said that Wang Qingxiong is actually completely controlled by Zhongtai Capital. It depends on whether Zhongtai Capital wants to start the series of agreement processes."
Should it be started? Need I say that?
Capital is profit-seeking by nature. The current situation is that Hengtong Pharmaceutical is already a fish on the chopping board of Zhongtai Capital.
Fang Hong closed the materials and looked at Hua Yu and said straightforwardly: "Since Wang Qingxiong is stubborn and refuses to sell Yishengtang and the ancient prescription, then we will acquire Hengtong Pharmaceutical and kick Wang Qingxiong out."
When this was said, Hua Yu and his assistant Yue Qing were surprised. Hengtong Pharmaceutical Group is the second largest enterprise in Xincheng. The acquisition of tens of billions is definitely a big event in the Xincheng business district. Looking at the current national scope, it is also a major acquisition event.
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