Unveiling the B side of Xiangxue pharmaceutical: subsidiary receives administrative penalty, net profit of the third quarter drops 81%

Recently, Xiangxue pharmaceutical released the third quarter report. From the overall data, the company’s performance data is very beautiful, the first three quarters of this year revenue net profit double growth, but maybe this is only Xiangxue pharmaceutical a side. After careful study, it was found that the subsidiary received administrative punishment, and the net profit in the third quarter fell 81%, and the non-profit deduction has been lost for three years. These problems are also the B side of Xiangxue pharmaceutical. The data show that the main business of Xiangxue pharmaceutical is the research and development, production and sales of modern Chinese medicine and Chinese herbal pieces, and the auxiliary business of medical equipment, soft drinks, a small amount of Western medicine products and medicine circulation, and its leading products are antiviral oral liquid. The data of the three quarterly reports show that from January to September this year, the company achieved a revenue of 2.494 billion yuan, and realized the net profit attributable to the parent company of RMB 148 million, up 25.78% and 60.41% respectively, which continued the high-speed growth momentum since this year. The net profit attributable to shareholders of Listed Companies in the first half of 2020 is about RMB 141million, an increase of 152.47% year-on-year, and the operating income of about 1.816 billion yuan, an increase of 37.11% year-on-year, and the basic earnings per share of 0.21 yuan, an increase of 162.5% year-on-year. It is worth mentioning that the company has realized operating income of 678million yuan in the third quarter of 2020, an increase of 2.98% year-on-year; net profit attributable to shareholders of listed companies is RMB 6.7492 million, down 81.4% year-on-year; and the basic earnings per share is 0.01 yuan. It is found that the net profit of Xiangxue pharmaceutical after deducting non regular profit and loss in the third quarter is rmb-1.467 million, that is to say, the net profit of RMB 6.75 million realized by Xiangxue pharmaceutical in the third quarter is not from the main industry. The data show that since the beginning of the year, Xiangxue pharmaceutical has received a government subsidy of RMB 25867000. From the historical and financial data of the company, the net profit deducted from the main business of the company has been losing for three consecutive years, and the performance is supported by the non current profit and loss in recent years. The data show that the non current profit and loss in 2017-2019 are 218million yuan, 102 million yuan and 103 million yuan respectively, and the losses after deducting the non current profit and loss are 152million yuan, 46.4 million yuan and 23.24 million yuan. The non current profit and loss items are mainly government subsidies and asset management income. In addition, the data of the third quarter report show that the net cash flow generated by the company’s operating activities in the first three quarters is-12.3778 million, but it has improved greatly compared with the first half of the year, but it has not been turned to a positive number. Recently, Xiangxue Pharmaceutical (announcement said that in the near future, the company received the decision on administrative punishment issued by the market supervision and administration of Huangpu District of Guangzhou Municipality on the nine pole biology of its subsidiary (No. According to the decision on administrative penalty, nine pole biology, as a direct selling enterprise, has changed the shareholder, business scope and legal representative without the approval of the competent department of commerce under the State Council, and has gone through the act of registration of change and the filing of articles of association, which violates the provisions of Article 11 of the direct selling management regulations, which constitutes a direct selling enterprise without the approval of the State Council’s commercial department The competent department approves the act of making significant changes to the articles of association of the enterprise. According to Article 41 of the regulations on direct marketing management: “if a direct selling enterprise violates the provisions of Article 11 of these regulations, it shall be ordered by the administrative department for Industry and commerce to make corrections and be fined not less than 30000 yuan but not more than 300000 yuan; if the conditions for direct marketing license are no longer met, the competent department of commerce under the State Council shall revoke its direct selling business license.” Guangzhou Huangpu District market supervision and administration decided to impose administrative punishment on nine polar organisms as follows: < p > 1. Order to correct the unauthorized changes to shareholders, business scope, legal representatives and other matters, as well as the acts of the articles of association of the enterprise; 2. Be fined 150000 yuan. The company believes that the procedures for direct industrial and commercial changes in the transfer of nine pole biological equity accord with the relevant regulations of the industrial and commercial administration, and the market supervision and administration of Huangpu District of Guangzhou completed the registration of industrial and commercial changes on December 30, 2019. Jiupolar biology is not subjective to avoid the pre approval procedure. The company has made an application for administrative reconsideration to Guangzhou market supervision and Administration Bureau within the prescribed time and has been accepted, and is currently in the review period. According to the data of the company’s semi annual report, the share pledge ratio of Guangzhou Kunlun Investment Co., Ltd., the controlling shareholder of the company, has exceeded 70%. Disclaimer: the purpose of this article is to transmit more information, not to represent the views and positions of the website. The content of this article is for reference only, and does not constitute investment suggestions. Investors operate on this basis and bear their own risks. China network is a national key news website under the administration of the Bureau of foreign language publishing and distribution under the leadership of the Information Office of the State Council. The network is an important window for China to conduct international communication and information exchange through 11 language versions in 10 languages and 24-hour information release.