Jiang Wei, the actual controller behind Guizhou Lark, is a "cross-border king"

On May 25, guizhou bailing official website issued a document saying that its two drugs have new crown efficacy, and the stock price rose three times in a row, but its drug efficacy was questioned, on the one hand, it denied it, and on the other hand, Guizhou Lark quietly deleted the official website article. This operation or in the hot spot, in recent years, Guizhou Bailing frequent cross-border investment, but these projects in the short term, did not contribute profits to Guizhou Lark, but ate the cash flow, resulting in the actual controller Jiang Wei had to frequently pledge loans, this year it will have a number of pledge loans due. However, the worry now is how to ensure that it does not blow up before expiration.

Under the epidemic, the "miracle drug" that has a curative effect on the new crown is usually hyped by market funds, which inevitably makes some companies rub the heat of the "new crown miracle drug".

On May 28, Guizhou Lark, which had been rising for three consecutive days, suddenly fell sharply in the intraday – which may be related to its two "miracle drugs" with new crown efficacy.

Previously, on May 25, guizhou Bailing official website published that cough quick stop syrup, cough capsules two drugs for the treatment of mild and ordinary new crown pneumonia, is conducive to the recovery of the disease and the new crown virus to the negative, can shorten the cough time. It can be used as one of the options for traditional Chinese medicine to treat new crown pneumonia, and it is worthy of clinical promotion and use. Previously, Ling Pharmaceutical Lianhua Qing plague was confirmed to be effective in the treatment of new crown pneumonia, and the official website of Guizhou Lark was once speculated by funds, and as soon as the news of the official website of Guizhou Lark came out, the funds were moved by the wind, and it rose and stopped for three consecutive days.

However, the efficacy of guizhou bailing drugs has been questioned by the Food and Drug Administration, and it is reported that the Guizhou Provincial Drug Administration will verify this.

Interestingly, the results of the FOOD and Drug Administration's verification have not yet been released, but Guizhou Bailing has deleted the article on the official website claiming that the company's two exclusive seedling drugs are effective for mild and ordinary new crown pneumonia. This operation of Guizhou Lark cannot help but make people suspect that it is rubbing the hot spot of the new crown "miracle drug", and the industrial hemp that has not been related to its business because of cross-border is also considered to be a hot spot. In fact, compared with the rapid growth of performance at the beginning of the listing, the performance growth rate of Guizhou Lark in recent years has slowed down, or even declined, which has a lot to do with its obsession with cross-border investment but can not exchange for the growth of income, the controlling shareholder of Guizhou Lark has also begun frequent equity pledges, and the fact that the actual controller Jiang Wei lacks money is almost an tacit "consensus" in the industry. Not long ago, after the media reported that Jiang Wei had occupied more than 2 billion yuan of the company's funds, the stock price of Guizhou Bailing fell one after another, and some of the pledges also touched the early warning line, which was obviously what Jiang Wei did not want to see. In this context, it is not impossible for Guizhou Lark to rub the "new crown miracle drug" hot spot to increase the stock price.

The efficacy of the two drugs to be examined?

However, the two new crown "miracle drugs" claimed by it do not reproduce the madness of lianhua Qingpeng being snapped up - behind this or its efficacy remains to be examined.

Guizhou Bailing claimed on the official website that as early as January 24, Guizhou Bailing selected 9 drugs from nearly 200 listed Sinopharm quasi-character drugs, such as cough syrup, cough clear capsules, and double sheep throat paralysis granules, and reached cooperation with the institute of Chinese Materia Medica of the Chinese Academy of Chinese Medical Sciences, the only research institution in the national traditional Chinese medicine system with virus detection and research capabilities, to start the screening research on drugs related to the treatment of new crown pneumonia.

According to the completed "Clinical Statistical Report" and "Clinical Summary Report", the cough stop syrup group and the cough capsule group showed better treatment effects compared with the control group in terms of primary and secondary efficacy indicators such as cough recovery rate and average cough disappearance time. Although its two products have shown a certain efficacy, their objectivity has been questioned. Due to the sharp decline in the number of new crown pneumonia patients, the clinical trial was originally planned to recruit 72 patients with new crown virus pneumonia to participate, and finally enrolled a total of 30 patients, which failed to reach the planned number of recruits, resulting in a certain impact on objectivity. Under the mechanism of "large sample, randomized, double-blind trial" of modern medicine to determine drug efficacy, only 30 patients participated in clinical studies, or it was difficult to draw "valid" conclusions.

However, the capital market is obviously very hungry for this set, and on the afternoon of May 25, guizhou bailing stock price stopped falling and rose back, rising nearly 9% at one point.

However, this "official announcement" of Guizhou Lark has attracted the attention of the Food and Drug Administration and said that it will verify the efficacy of the new crown of the two drugs it has disclosed. Interestingly, while Guizhou Lark said that it had not yet received notice, it quietly deleted the article on the official website on the other hand, which made it questioned in rubbing hot spots.

According to choice data, Jiang Wei, the actual controller of Guizhou Bailing, pledged a large proportion of the shares held in his hands, and the cumulative number of pledges accounted for 83.09% of the shares he held. Since the beginning of this year, Jiang Wei has a number of pledges to blow up, and according to the stock price trend of Guizhou Lark, there may be more pledges facing the risk of blowing up.

This year, Ling Pharmaceutical Lianhua Qingpeng was proved to have a new crown effect, its stock price was rapidly doubled by funds, and terminal drugs were also rushed to buy. However, the "myth" of Yiling Pharmaceutical is difficult to reproduce.

Reproducing hot spots?

In recent years, Guizhou Lark has become a frequent visitor in the cross-border field, and cross-border hot spots are often present. When the concept of industrial hemp was hot last year, Guizhou Bailing, which is mainly engaged in seedling medicine, was involved in the industrial hemp business and planned to participate in Heilongjiang Hanrong Hanma Biotechnology Co., Ltd. (hereinafter referred to as "Hanrong Hemp") and apply for industrial hemp cultivation and extraction processing licenses. However, cross-border investment has not brought thickening to the company's performance, but has "dragged down" the company's performance.

According to the annual report, in 2019, Guizhou Bailing achieved operating income of 2.851 billion yuan, a year-on-year decrease of 9.13%; achieved a net profit of 291 million yuan, a year-on-year decrease of 48.27%. Guizhou Bailing explained that the company's investment in Yunzhi Pharmaceutical and Chongqing Haifu suffered losses, resulting in a decrease in net profit.

According to the data, Guizhou Bailing is a pharmaceutical listed company engaged in the research and development, production and sales of Miao medicine. In 1996, with the reform of state-owned enterprises, Anshun Pharmaceutical Factory in Guizhou Province was transferred to Anshun Hongwei Strength Co., Ltd. as a whole with property rights. In 2003, Anshun Pharmaceutical Factory was renamed Guizhou Bailing Pharmaceutical Co., Ltd., after which Guizhou Bailing Enterprise Group began to be formed, and Jiang Wei took over the stall as chairman. Miao medicine is Guizhou's superior resources, by the state's attention and investment, but "wine is also afraid of deep alleys", the head of Jiang Wei after taking over, through the early TV advertising, Guizhou lark red cough quick stop syrup, cough quick stop capsules and other over-the-counter drugs. Among them, what is well known in the advertisement of Guizhou Lark is that a white-bearded grandfather showed us the "cough stop capsule", and the good medicine finally came out of the deep mountain.

Through advertising and marketing, guizhou bailing sales grew rapidly, the year before the transfer of property rights, the predecessor Anshun Pharmaceutical Factory output value was only 1.26 million yuan, the tax arrears reached 180,000 yuan, and in 2009, the retail sales of 6 seedling drug varieties exceeded 100 million yuan, while the market terminal retail sales of cough syrup (capsules) in that year were 282 million yuan, ranking second in the miao medicine. Cardiovascular and cerebrovascular drugs are the core business of Guizhou Lark. Among them, Yindan Heart brain softgels are the exclusive products of Guizhou Bailing. In addition, Guizhou Bailing, as the "first share of Miao medicine", has achieved rapid development in recent years, and the Guizhou national pharmaceutical industry, which is mainly based on Miao medicine, has a strong development momentum and has become the largest national medicine in terms of sales in the country.

From 2009 to 2013, the company's annual operating income nearly doubled, with a compound growth rate of nearly 18%; annual operating profit, total profit and net profit attributable to shareholders of listed companies increased by nearly 2.5 times, with a compound growth rate of more than 25%; while the company's gross profit margin and net profit margin maintained a high level and achieved steady growth. By 2017, the Guizhou Bailing Jiang Wei family became the richest man in Guizhou, with total assets of 16.5 billion.

The actual controller is crazy to play crossover

As mentioned earlier, Jiang Wei is very good at advertising Guizhou Bailing, in addition to TV commercials, in 2002, he also had the "Guizhou Cough Stop Rally Team" and the formation of the "Guizhou Cough Stop Go Team". Jiang Wei seems to be very playful, from taking Guizhou Lark to do marketing cross-border to today's business cross-border, just like his style. After going public in 2010, Guizhou Bailing began to frequently participate in cross-border business. For example, in 2011, Guizhou Bailing reached a cooperation with Sanyuan Taibao to be responsible for the Taizi Ginseng Planting Demonstration Base Project. This project made the revenue of Guizhou Bailing Chinese herbal medicine increase by 109.54% year-on-year, and the gross profit margin increased by 32.81%, far exceeding other product types. Or taste the sweetness from the cross-border business, after which Guizhou Lark began to frequently cross-border.

For example, in 2013, Guizhou Bailing announced that it would use 395 million yuan of super-raised funds to build investment projects for collagen juice drinks and Chinese herbal herbal functional drinks to enter the beverage industry. Although the beverage industry has a low threshold, it has spent huge marketing expenses in the beverage field and has been questioned by the outside world. If cross-border Chinese herbal medicine is still in the field of medicine, then the later cross-border investment in real estate, aircraft manufacturing, and hotel projects has nothing to do with medicine.

However, in the short term, these projects did not contribute profits to Guizhou Bailing, but ate cash flow - according to the data of Guizhou Bailing's 2018 annual report, in addition to the main businesses such as Chinese herbal medicine, only fertilizer and pure water business appeared in the statistical table, and only accounted for 0.3% of the total operating income. In addition, although the performance of Guizhou Lark has grown rapidly in the years after the listing, a worrying problem has emerged.

Cross-border investment "dragged down" Guizhou Lark

In recent years, although the performance report card handed over by Guizhou Bailing has a bright profit figure, the continuous negative cash flow has made the company's profit seem to have become a "rich man on paper". In the nearly 10 years of listing, Guizhou Lark has earned profits, but has not earned real "money". For example, in 2017, under the premise of achieving a net profit of 498 million, the net cash flow from operating activities was only 0.80 billion, which was less than a fraction of the net profit. Due to Guizhou Lark's dependence on open account, its cash flow deviated from net profit for a long time. As a result, since 2018, the equity pledge ratio of guizhou bailing major shareholders has gone all the way up, especially the equity held by the actual controller Jiang Wei at its peak was close to 100% pledge, revealing a signal of shortage of funds.

In 2019, in order to reduce the risk of stock pledge, Huachuang Securities was relieved by the transfer of 161 million shares held by Jiang Wei and his co-actors, and at the same time provided more than 1.8 billion yuan of special relief funds. It is worth noting that in the next six months to one year, Jiang Wei has a large number of pledge loans that will expire. The actual controller who lacked money was also investigated for occupying the funds of listed companies.

On April 30 this year, on the day guizhou bailing released its 2019 annual report, Tianjian Accounting Firm simultaneously issued the "Special Audit Instructions for the Occupation of Non-operating Funds and Other Related Funds", which showed that in 2019, Guizhou Bailing allocated a total of 2.086 billion yuan to the actual controller for capital turnover, and the cumulative recovery of funds was 2.144 billion yuan (including interest). The company's actual controller occupies an average of 344 million yuan of funds per day, and the above-mentioned capital occupation is non-operational occupation, and the illegal occupation of funds has also been inquired by the Shenzhen Stock Exchange, resulting in the recent decline of the company's stock price.

Now, behind the curative effects of two new crown drugs in Guizhou Bailing, it is not forbidden to question, just to rub hot spots to cope with the decline in stock prices.