Does the subsidiary stop production without disclosing the high level cash out of big shareholders covered by Haili biology?

“The chairman is still working normally. He came to the company two days ago.” A few days ago, at the gate of Shanghai Haili Biotechnology Co., Ltd. (603718. Sh, hereinafter referred to as “Haili bio”), which is located at 6720 Jinhai Road, Fengxian District, Shanghai, the security personnel on duty told China business daily. Under the calm appearance, this enterprise, which mainly produces livestock and poultry vaccines, is falling into a series of “troubles”. On November 21, Haili bio announced that Zhang Haiming, the company’s actual controller and chairman, was bailed on November 19 by Jing’an branch of Shanghai Municipal Public Security Bureau for his involvement in a company’s illegal business operation case under investigation in Jing’an District of Shanghai. Meanwhile, Zhou Yu, a supervisor of the company, was detained by Jing’an branch of Shanghai Public Security Bureau on October 31 for suspected occupation. On December 1, hailibao said that Jing’an branch of Shanghai Municipal Public Security Bureau decided to bail Zhou Yu, the company’s supervisor. On November 27, Pu dongchan, the then vice president and Secretary of the board of directors of Haili biological Co., Ltd., received regulatory attention from Shanghai stock exchange due to her failure to fulfill the obligation of information disclosure in time. What does Haili bio cover up after its important subsidiary has not stopped production for nearly six months? < / P > < p > in fact, in the first eight months of this year, the stock price of Haili bio has been fluctuating. On August 3, Haili bio’s share price rose to 51.41 yuan / share, up 293.64% from the beginning of the year. The rise in the share price has something to do with its previous involvement in human vaccines and the capital increase in the research and development project of new crown vaccines in August this year. At that time, Haili bio invested 34 million yuan by way of capital increase, obtained 40% equity of the target company Hangzhou Shuchen Biotechnology Co., Ltd. (hereinafter referred to as “Hangzhou Shuchen”) and became the controlling shareholder of Hangzhou Shuchen. Hangzhou Shu Chen is novel coronavirus pneumonia vaccine developed by item company. < p > < p > interestingly, on April 29 this year, Haili bio disclosed the plan to reduce its holding of Shanghai Haoyuan Venture Capital Development Co., Ltd. (hereinafter referred to as “Haoyuan venture capital”), the controlling shareholder of Haili bio. From May 25 to November 2, Haili bio reduced nearly 3% of its shares and completed the plan. The reduction price range was 15.66 yuan / share to 32.88 yuan / share, with a total reduction amount of more than 400 million yuan. < / P > < p > in view of the problems related to the development of the company, from November 23 to December 1, the reporter repeatedly called and wrote to the Secretary Office of Haili biology. On wire day, the reporter visited Haili biology and sought face-to-face interviews. The relevant staff said that all interviews must be made with the Secretary, who was busy and had no other staff to receive the reporter. < / P > < p > “vaccines for pigs, chickens and other poultry and livestock are mainly produced here, and they are all in normal production at present.” On December 1, at the gate of Haili biological company, a security guard introduced to the reporter. According to the introduction of the security guard, the company covers an area of 120 mu, and currently has about 200 employees. “As for other aspects, we don’t need to inquire or know.”. < / P > < p > under the surface calm, it is still unclear why the chairman and supervisors of Haili biological fell into the illegal business case. However, half a year’s production of the subsidiary has not been disclosed, which makes the company concerned. According to the announcement, Yangling Jinhai Biotechnology Co., Ltd. (hereinafter referred to as “Jinhai biology”), a subsidiary of Haili biological holdings, began to carry out relevant transformation in January 2020 in accordance with the requirements of “foot and mouth disease, highly pathogenic avian influenza vaccine production enterprise setting plan”. According to the planning requirements, Jinhai bio should complete the transformation before November 30, 2020. In order to ensure the completion of the transformation project on schedule, Jinhai biological will stop production in April 2020. On September 22, Jinhai biology fully resumed production after verification by local competent authorities. < / P > < p > according to the company’s annual report of 2019, Jinhai biological’s operating revenue in 2019 is 74.0938 million yuan, accounting for 26.65% of the company’s audited operating revenue in the latest accounting year. In this regard, the Shanghai Stock Exchange pointed out that the shutdown of important subsidiaries may have a greater impact on the company’s daily production and operation, which is a major matter of concern to investors. The company shall timely perform the obligation of information disclosure when the relevant matters meet the disclosure standard of temporary announcement, but the company will only disclose them in the 2020 semi annual report on August 31, 2020. After supervision and supervision, the company did not disclose the specific situation in the early stage until September 25, 2020 when it disclosed the announcement on resumption of production of holding subsidiaries. The company’s information disclosure is not timely, which affects the investors’ right to know. < p > < p > Pu dongchan, then vice president and Secretary of the board of directors of the company, as the specific person in charge of information disclosure, failed to perform her duties diligently and was responsible for the company’s violations, which was supervised and concerned by Shanghai Stock Exchange. According to the sky eye survey, Jinhai bio’s main business scope is the research and development, production and sales of animal vaccines and the sales of environmental disinfectants for animals. Haili bio is the largest shareholder of Jinhai bio, the former holding 55%. Zhang Haiming, the actual controller of Haili biology, is the founder, chairman and general manager of Jinhai biology. < / P > < p > according to wind data, Zhang Haiming has the right of long-term residence in France and a master of business administration. He once worked in Shanghai Hudong Shipyard, served as the chief representative of Shanghai Foreign Investment Promotion Center in Paris, France, and founded Shanghai Haoyuan Technology Development Co., Ltd. in 1999. < / P > < p > it is worth mentioning that the announcement released by Haili biology on November 3 shows that the company’s controlling shareholder Haoyuan venture capital has reduced its holdings by nearly 3% and completed the reduction plan. The price range of reduction is 15.66 yuan / share to 32.88 yuan / share, and the total amount of reduction is more than 400 million yuan. Tianyancha information shows that Zhang Haiming is the legal representative and the largest shareholder of Haoyuan venture capital. Zhang Haiming’s daughter Zhang Yue holds a 30% stake in Haoyuan venture capital. < / P > < p > the stock price of Haili bio has risen to 51.41 yuan / share from 13.06 yuan / share on January 2, 2020 to August 3, 2020, with an increase of 293.64%. Subsequently, Haili bio’s share price fell all the way. As of the close of December 7, Haili bio’s share price was 14.14 yuan / share. < / P > < p > on August 11, the company announced that it had invested 34 million yuan through capital increase to obtain 40% equity of the target company Hangzhou Shuchen Biotechnology Co., Ltd. (hereinafter referred to as “Hangzhou Shuchen”) and become the controlling shareholder of the target company. In addition, Shanghai runling, as a related party and acting in concert of Haili bio, entrusted all the voting rights of its 15% equity to Haili bio. Haili biological constitutes the actual control over Hangzhou Shuchen and is the controlling shareholder of the target company.

novel coronavirus pneumonia is a major item company established in Hangzhou to develop and commercialize new crown vaccine against adenovirus. The vaccines involved in this cooperation are still in the preclinical research stage in China, and the company has not been involved in the direct R & D, production and sales of human vaccines before. From this point of view, Hangzhou Shuchen related vaccine research and development is still far away from the market. According to industrial and commercial data, Hangzhou Shuchen was founded on July 15, 2020, and its legal representative is Zhang Haiming. Zhang Haiming is also the chairman of the company. Due to the short establishment time, Hangzhou Shuchen has not officially launched business, so there is no financial data. < / P > < p > in July 2018, Haili biology and Yaoming Biotechnology Co., Ltd. (hereinafter referred to as “Yaoming biotechnology”) established Shanghai Yaoming Haide Biotechnology Co., Ltd. (hereinafter referred to as “Shanghai Yaoming Haide”). The company is mainly engaged in cdmo (contract customized R & D and production) business of human vaccines (including cancer vaccines). Among them, Haili bio holds 30% of the shares. < / P > < p > “the company has been focusing on the R & D, production and sales of animal vaccines for more than 30 years. In terms of production, animal vaccines and human vaccines have some similarities, but the standard of human vaccines is higher. Mr. Liu Hanping, vice president in charge of R & D of the company, has more than 10 years of experience in production and R & D of human vaccines. Therefore, the establishment of the target company can fully combine their respective advantages and achieve strong alliance. ” Haili biology said. < p > < p > Haili Bio said that while making its main business bigger and stronger, the company has been actively expanding to the field of “PICC” since its listing, in order to break through the limitations of existing sub industries and seek greater development. The joint venture with Yaoming biology is an important measure for the company to set foot in the field of “human vaccine”. < p > < p > in May 2019, Haili bio announced that Shanghai Yaoming Haide is still in the early construction stage and has not generated revenue. In the same month, Haili bio announced that Yaoming bio announced on the Hong Kong stock exchange that its subsidiary, Wuxi biology Investments Limited, had reached a strategic partnership with a global vaccine giant and signed a letter of intent. According to the letter of intent, Yaoming bio will build a new integrated vaccine production base integrating vaccine stock solution (DS) and preparation (DP) production and quality control (QC) laboratory through the newly established “Yaoming Hyde” company (hereinafter referred to as “Hong Kong Yaoming Hyde”) jointly with Haili bio, and produce vaccines for vaccine partners. The initial term of the production contract is up to 20 years, and the total amount is expected to exceed US $3 billion. At present, the parties are conducting further consultations with a view to reaching a final agreement. < / P > < p > in addition, according to the disclosure in the 2020 semi annual report of Haili biology, Hong Kong drug minghead signed a formal vaccine production and supply contract on the basis of the above letter of intent through its wholly-owned project subsidiary. In the first half of 2020, Haili bio invested 2.46 million yuan in Shanghai Yaoming Haide and 36.0973 million yuan in Hong Kong Yaoming Haide. The above sources of funds are self financing. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.