A time-honored listed company with a history of more than 400 years on its head, delisting is a foregone conclusion.
The stock price fell endlessly
A few days ago, Tai'an Tang (currently referred to as *ST Tai'an) announced that the company's first annual financial and accounting report after the implementation of the delisting risk warning was issued with an audit report that could not express an opinion, touching the termination of the listing of shares stipulated in Article 9.3.11, Paragraph 1 (3) of the "Shenzhen Stock Exchange Stock Listing Rules" (revised in August 2023), and the Shenzhen Stock Exchange intends to decide to terminate the listing and trading of the company's shares.
It is worth noting that Tai'an Tang is currently in a state of suspension, and before the suspension, its stock price has been "falling endlessly" for many consecutive trading days, and the closing price is less than 1 yuan, and finally meets the standard of "delisting at face value". Up to now, Tai'antang's share price has stayed at 0.51 yuan per share, with a market value of 391 million yuan, compared with the peak market value of about 18 billion yuan in 2015, a decline of more than 97%, and it can be said that even the bottoms have fallen.
The brand's reputation began in 1567, and its development history is more than 100 years earlier than that of Tong Ren Tang.
According to public information, Tai'antang Group is a national intangible cultural heritage, China time-honored brand enterprise, "Tai'antang" can be traced back to the Ming Dynasty Jiajing Jinshi, imperial doctor Ke Yujing in the first year of Longqing (1567) to create a traditional Chinese medicine church, with the imperial gift of the "Tai'an Tang" plaque and the imperial physician gift of Wan Bangning, the imperial hospital envoy Wan Bangning "Wan's Medicine", is one of the oldest Chinese medicine families in China.
In 1995, Ke Shuquan, the 13th generation descendant of Ke Yujing, developed Pi Bao Cream with ancestral secret recipes combined with medical experience, starting the modernization journey of Tai'an Tang. It is worth noting that the Tai'antang in question is actually a company under the Tai'antang Group, namely Guangdong Tai'antang Pharmaceutical Co., Ltd., referred to as "Tai'antang", which is mainly engaged in the research and development, production and sales of traditional Chinese medicine, and was listed on the Shenzhen Stock Exchange in June 2010. Up to now, the controlling shareholder of Tai'an Tang is still Tai'an Tang Group.
Pi Bao Cream, Qilin Pill and Xinbao Pill are all the fist products of Tai'an Tang, among them, Pi Bao Cream is the first product of Tai'an Tang, and Qilin Pill and Xin Bao Pill are obtained by Tai'an Tang from the acquisition of Tai'an Tang Pharmaceutical (the company originally belonged to Tai'an Tang Group), these two products are used for the treatment of male and female infertility and cardiovascular diseases, and Qilin Pill is a national traditional Chinese medicine protected variety, and it is also the exclusive variety of Tai'an Tang. For the sales performance of these two products, Tai'an Tang did not make specific disclosures in the performance report. However, the industry estimates that the performance scale of the two varieties should be at the level of 100 million yuan.
Business use of Kirin Pill and Heart Treasure Pill Image source: Tai'an Tang annual report
The performance has been exposed to fraud
In the first few years of Tai'antang's listing, it was in the limelight and full of pride, mainly in the acquisition of huge sums of money and the beginning of cross-border development, including real estate.
According to public reports, in April 2011, Tai'an Tang acquired 70 drug production technologies of Guangdong Thunder Sinopharm for 24 million yuan; In December of the same year, it acquired 52.4% of the equity of Guangdong Hongxing Group Co., Ltd. for 136 million yuan, and added hundreds of millions of yuan for the expansion of the production base in the later stage; In February 2013, it was announced that it planned to spend 351 million yuan to invest in the construction of Anhui Bozhou Traditional Chinese Medicine Industry Base Project and Jilin Fusong Ginseng Industry Base Project; In August 2014, it acquired Shanghai Lianhua Fosun Pharmacy Chain Management Co., Ltd. for 16 million yuan in cash; In September 2014, it acquired Guangdong KangAiduo, which was known as the first Internet pharmacy at that time, for 350 million yuan, and in December 2015, Guangzhou Jinpibao Real Estate Co., Ltd., a wholly-owned subsidiary of Tai'antang, bid for a commercial land in Baiyun District, Guangzhou City, at a price of no more than 900 million yuan, and expanded it to real estate. In August 2017, Tai'antang invested another 340 million yuan to invest in Chaozhou Tai'antang Qilinzhou Investment Co., Ltd.
In 2015, Ke Shuquan also made his debut on the "Hurun Report" with a net worth of 3.9 billion yuan, and has been on the list for many years since then, but "all the gifts given by fate have been secretly marked with a price." This also laid a hidden danger for the subsequent development of Tai'an Hall.
From 2018 to 2021, Tai'antang was exposed to financial fraud during this period, inflating inventory and profits through its subsidiary Kang Aiduo by under-carrying costs and under-recording expenses, and inflating revenues and profits by inflating drug sales prices through its subsidiary Guangdong Hongxing Group Co., Ltd. Hongxing Pharmaceutical Factory, etc., respectively, inflating inventories by 64.8 million yuan, 144 million yuan, 116 million yuan, and 103 million yuan in each year, accounting for 20.08% of the absolute value of the total profit recorded in the current report , 115.79%, 304.72%, 12.25%, and there are false records in the relevant periodic reports.
From 2018 to the first half of 2022, the amount of capital occupation was 64.846 million yuan, 205 million yuan, 277 million yuan, 269 million yuan, and 161 million yuan respectively, with a cumulative total of 977 million yuan, which added another stack of straw to the crushing camel.
Based on the above facts, the Guangdong Supervision Bureau of the China Securities Regulatory Commission issued a "Prior Notice of Administrative Punishment" to Tai'an Tang, imposing a fine of 4.2 million yuan, Ke Shaobin, the chairman and general manager of the company at the time, was fined 5 million yuan, and a number of senior executives were fined 500,000-1 million yuan.
In 2022, when there was no business fraud, Tai'antang's performance was still beyond its means, with an operating income of 725 million yuan and a net profit loss of 823 million yuan. According to the 2023 performance report released by Tai'an Tang, the company's revenue for the year was 410 million yuan, a year-on-year decrease of 36.43%, and the loss of net profit attributable to the parent company and non-net profit deducted reached 2.21 billion yuan and 2.48 billion yuan respectively, an increase of 128.28% and 159.67% compared with the loss value in 2022. In this regard, the accounting firm CEFC Sichuan issued an audit report that could not express an opinion.
CEFC Sichuan pointed out that there was significant uncertainty about Tai'antang's ability to continue operations, and the impact of the controlling shareholder's non-operating occupation of funds had not been eliminated. At the same time, it could not determine the opening value of the project in the balance sheet part, the reasonableness of the large impairment losses being included in the annual profit and loss, the accuracy of the sales promotion amount, the material errors in the 2023 financial statements, and whether there was a clear violation of accounting standards and disclosure requirements.
Source: Yigu Network