Yangtze River Business Daily reporter Huang Cong
Senxuan Pharmaceutical, whose performance fell into the "three declines", was also ordered to suspend business for rectification.
On the evening of April 16, Senxuan Pharmaceutical (830946. BJ) announced that Ningxia Senxuan, a holding subsidiary of the company, was suspected of violating the relevant provisions of the "Water Pollution Prevention and Control Law of the People's Republic of China" and was ordered to suspend business for rectification.
It is worth noting that the first phase of the Ningxia Senxuan project has completed the environmental protection acceptance in April 2022. In February 2022, the pollutant discharge permit was obtained.
A reporter from the Yangtze River Business Daily found that on June 15, 2023, the Shizuishan Ecological Environment Bureau issued an administrative penalty decision showing that on September 15, 2022, the ecological and environmental law enforcement officers of the Pingluo Branch of the Bureau found that the company violated the "Air Pollution Prevention and Control Law of the People's Republic of China" during an inspection of Ningxia Senxuan, and its environmental violations were fined 40,000 yuan.
However, in the 2022 annual report and the 2023 semi-annual report, Senxuan Pharmaceutical stated that there was no penalty when introducing the company's administrative penalties due to environmental problems.
In 2023, Senxuan Pharmaceutical's performance has fallen into an embarrassing situation of "three declines", and with the suspension of Ningxia Senxuan's business for rectification, the company's performance may decline further.
The subsidiary was ordered to suspend business for rectification
On the evening of April 16, Senxuan Pharmaceutical issued an announcement showing that recently, Ningxia Senxuan Pharmaceutical Co., Ltd. (hereinafter referred to as "Ningxia Senxuan"), a holding subsidiary of the company, was ordered by the People's Government of Pingluo County to suspend business for rectification due to suspected violation of Article 39 of the Water Pollution Prevention and Control Law of the People's Republic of China on the discharge of water pollutants.
Article 39 of the Law of the People's Republic of China on the Prevention and Control of Water Pollution stipulates that it is forbidden to use seepage wells, seepage pits, fissures, karst caves, private hidden pipes, tampering with or falsifying monitoring data, or improper operation of water pollution prevention and control facilities to evade supervision and discharge water pollutants.
In the announcement, Senxuan Pharmaceutical did not introduce the specific regulations violated by Ningxia Senxuan.
Ningxia Senxuan is a holding subsidiary of Senxuan Pharmaceutical, with a registered capital of 70 million yuan, mainly engaged in the research and development, production and sales of fluorine series and chlorine series pharmaceutical intermediates.
According to calculations, as of December 31, 2023, Ningxia Senxuan's total assets and net assets accounted for 8.14% and 4.91% of the company's total net assets and net assets attributable to shareholders of the parent company in the company's consolidated statements, respectively, and in 2023, Ningxia Senxuan's operating income and net profit accounted for 8.85% and -2.03% of the company's consolidated operating income and net profit attributable to shareholders of the parent company, respectively.
According to the financial report data, Ningxia Senxuan's operating income in 2022 and the first half of 2023 will be 42.3447 million yuan and 29.4289 million yuan respectively, and the net profit will be 4.3559 million yuan and 470,000 yuan respectively.
This means that Ningxia Senxuan will fall into a loss in the second half of 2023.
Senxuan Pharmaceutical introduced that as of the disclosure date of this announcement, the incident is still under investigation, and Ningxia Senxuan will suspend business for rectification in accordance with relevant requirements.
In the announcement, Senxuan Pharmaceutical said that the company will urge Ningxia Senxuan to actively cooperate with the investigation, comprehensively investigate the problem and rectify it in a timely manner, and resume Ningxia Senxuan's production and operation as soon as possible. At the same time, the company will conscientiously learn the lessons of this incident, strengthen management, and prevent similar incidents from happening again.
It is worth noting that the first phase of the Ningxia Senxuan project has completed the environmental protection acceptance in April 2022. In February 2022, the pollutant discharge permit was obtained.
In the 2023 semi-annual report, Senxuan Pharmaceutical introduced that Ningxia Senxuan will invest a total of 1.4 million yuan in the first half of 2023, including solid waste disposal, wastewater pretreatment, operation of waste gas treatment facilities, environmental self-monitoring, etc.
Fines for violating the Air Pollution Prevention and Control Law
In fact, in addition to being suspected of discharging water pollutants in violation of regulations, Ningxia Senxuan was also fined for violating the Air Pollution Prevention and Control Law.
A reporter from the Yangtze River Business Daily found that on June 15, 2023, the Shizuishan Ecological Environment Bureau issued an administrative penalty decision showing that on September 15, 2022, the ecological and environmental law enforcement officers of the Pingluo Branch of the Bureau found that the company had environmental violations when they inspected Ningxia Senxuan.
Specifically, Ningxia Senxuan ethyl chloroacetate production workshop on the north side of the finished product tank area in the open air to discharge ethyl chloroacetate in the finished mixing tank into the ton barrel by hose, and then use the hose to discharge the ethyl chloroacetate in the ton barrel into the finished barrel, the ton barrel mouth and the finished product barrel mouth are open during the loading process, and there is a situation that the volatile organic compounds waste gas escapes directly without collection and treatment.
According to the Shizuishan Municipal Bureau of Ecology and Environment, Ningxia Senxuan's above-mentioned behavior violated Article 45 of the Law of the People's Republic of China on the Prevention and Control of Air Pollution, which stipulates that "production and service activities that produce waste gases containing volatile organic compounds shall be carried out in confined spaces or equipment, and pollution prevention and control facilities shall be installed and used in accordance with regulations;
In accordance with relevant laws and regulations, the Shizuishan Municipal Bureau of Ecology and Environment imposed a fine of RMB 40,000 on Ningxia Senxuan for environmental violations.
However, in the 2022 annual report and the 2023 semi-annual report, Senxuan Pharmaceutical stated that there was no penalty when introducing the company's administrative penalties due to environmental problems.
At present, Senxuan Pharmaceutical's performance has fallen into an embarrassing situation of "three declines".
Senxuan Pharmaceutical is in the pharmaceutical manufacturing industry and involves the production and sales of various API intermediates and pharmaceutical and chemical intermediates, with a professional R&D team, production team, sales team and other management teams, and a number of patented technologies.
Recently, Senxuan Pharmaceutical released the 2023 annual performance express report, showing that the company achieved operating income of 590 million yuan, a year-on-year decrease of 5.46%, a net profit of 134 million yuan, a year-on-year decrease of 16.23%, and a non-net profit of 127 million yuan, a year-on-year decrease of 16.23%.
For the decline in revenue, Senxuan Pharmaceutical said that the operating income of the company's API products remained basically stable; dioxane products in oxygen-containing heterocyclic chemical intermediates as an excellent solvent due to the decline in demand for antiviral drugs in the market led to a slight decline in operating income, and due to the further intensification of competition in the domestic and international markets, especially the competition in the Indian market, the sales price of the variety fell sharply, which affected the decline in the overall operating income; , the price has dropped sharply, which has affected the overall operating income.
Regarding the decline in profits, Senxuan Pharmaceutical said that it was mainly due to the decline in the selling price of some of the company's products and the decline in operating income, which affected the decline in comprehensive gross profit.
With the suspension of Ningxia Senxuan for rectification, Senxuan Pharmaceutical's performance may decline further.
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