A question on the overvalued stock of ginseng in the related transaction of the purple-Xin pharmaceutical industry

The Securities and Futures Commission has finally closed the investigation on the related transactions and illegal information disclosure since October 2011. February 23, 2014, the Purple Xin Pharmaceutical Industry Bulletin said that the Chinese Securities Regulatory Commission received the "Decision on administrative punishment", in response to the information disclosure of the drug industry, the Chinese Securities Regulatory Commission decided to order the purple medicine industry to correct, to give the purple Xin pharmaceutical industry warning, and fined 400,000 yuan, the relevant personnel are also given warning and fine penalties. The case originated from ginseng and its stockpiling. According to the Securities and Futures Commission of the purple Xin Pharmaceutical industry, "Administrative penalty decision book" shows that, the company disclosed in the 2010 Annual report and Yanbian Yao Yu Ginseng Trade Limited Liability company, Yanbian Jin Hui Ginseng Trade Limited Liability company, Yanbian Xin Xin Ginseng Trading Co., Ltd., Tonghua Wei Cheng Ginseng Trading co., Ltd, Tonghua Jia Hee Ginseng Trading Co., Ltd., Tonghua Zhen Hao Ginseng Trading Co., Ltd., Jilin Zhengde Pharmaceutical Co., Ltd. related relations and related transactions. Ginseng achievement of the Purple Xin Pharmaceutical industry, from 2010 to 2012, the Purple Xin Pharmaceutical inventory of 140 million yuan, 850 million yuan and 1.42 billion yuan. Among them, the main valuation comes from ginseng stock. The company's performance slipped in 2012 and 2013, and, paradoxically, its share price has risen in the past 1.5 hours. In the high valuation of ginseng stocks expected, the second half of 2012 began, the purple Xin Pharmaceutical shares bottomed rebound, the last year, the company's share price rose as high as 70%! "Worth 1.4 billion yuan, too much water." "A north-east ginseng trader told the 21st century economic reporter," The purple-Xin pharmaceutical industry has been involved in a large number of ginseng, but 2011 and 2012 acquisition strength markedly weakened, three years 10 times times the growth is too exaggerated. "Starting stock in 2011, the Purple Xin Pharmaceutical industry has purchased the overestimation value of wild ginseng 1842, but most of them did not obtain purchase invoices and other compliance accounting vouchers." In the investigation of more than two years time, the purple Xin pharmaceutical performance continued to slump. January 2012, the company's original chairman and general manager Guo Chunsheng resigned from the company's position. Subsequently, the results of the purple Xin pharmaceutical industry began to decline. 2012, the company net profit of 86.31 million yuan, fell 60.28%. In the three quarter of 2013 years ago, the company's net profit was only 32.88 million yuan, down 50.97% year-on-year. According to the company, the net profit for the year 2013 was between 45 million yuan and 55 million yuan, down about 47.86% to 36.38%. In this regard, Purple Xin Pharmaceutical board Secretary Zhong Yunshan said that the performance decline is the company for other considerations have not been sold ginseng, but the company's main business has maintained a steady growth of proprietary Chinese medicine. Cao Enhui, chairman of the Purple Xin pharmaceutical industry, has revealed that from 2009-2011, the total amount of ginseng purchased by the purple Xin Pharmaceutical industry reached 2000 tons of dry ginseng. Estimated at the current price of about 600 million-700 million yuan. Zhong Yunshan said that in October 2011, the Securities and Futures Commission to the purple Xin pharmaceutical industry confirmed the case for the investigation, the company ginseng to have influence, strength less than 2010. 2011, the Purple Xin pharmaceutical industry had bought overvalued value of wild ginseng 1842 root,Total 8284.06 grams, the account contains tax value of 131 million yuan. According to the interpretation of the purple-Xin pharmaceutical industry, this part of the wild ginseng obtained from the Yanbian Mountain Ginseng Research Institute issued Wild Ginseng Identification Certificate, and by the Beijing Institute of Genomics, Chinese Academy of Sciences sample test report. But most of them did not obtain the purchase invoices and other compliance vouchers. Zhanghui, director of the Jilin Agricultural Committee ginseng Office, told the 21st century economic reporter, in the Asian territory of ginseng production, including China, Korea, Japan and Russia, including China, South Korea as the core, pure wild ginseng has not already, Japan is very rare, only Russia has a small number of wild ginseng. But does not rule out the folk occasionally has the wild mountain ginseng to leave hides. In addition to wild Mountain Ginseng, 2011, the Purple Xin Pharmaceutical also purchased in the 135,760 Zhang, financial statements listed in the amount of 82.49 million yuan, of which 104,003 Zhang (book value of 66.09 million yuan) in the woodland, the transfer party from the other Woodland holders subcontract again with the purple-Xin pharmaceutical contract. 2011, the Purple Xin Pharmaceutical industry has a large number of ginseng, the total sale of ginseng increased by 73% in 2010. Stocks were raised until 2012, when a significant reduction in the sale of ginseng products began. 21st Century economic reporting reporter access to the annual report of the Purple Xin pharmaceutical industry, 2011 Ginseng Products Income of 624 million yuan, accounting for nearly 70% of the main income. Beginning 2012, the Purple Xin Medicine industry's ginseng product income greatly reduced to 118 million yuan, accounting for main income less than 30%. 2011 and the first half of 2012, the Purple Xin Pharmaceutical industry a large number of ginseng, the total value of about 740 million yuan, sales of ginseng is close to 2009-2011 Total Purchase. Until the second half of 2012, the purple Xin Pharmaceutical industry significantly reduce the sale of ginseng products, ginseng inventory gradually increased. Ginseng Senior Market personage judge, the stock that has been valued as up to 1.4 billion yuan since then should come from the acquisition since 2012. 2012, the purple Xin pharmaceutical industry bought 5784 tons of fresh ginseng, then the price of about 600 million yuan. At the end of 2012, the purple-Xin Pharmaceutical inventory estimate reached 1.4 billion yuan. August 2013, the Purple Xin Pharmaceutical Industry Bulletin said that the company and its subsidiary book value of 320 million yuan ginseng products as collateral, to the Jilin Bank Changchun Rui Xiang Branch to apply for not more than 200 million yuan of working capital loans for ginseng procurement, loan term of one year. As of 2013, the purple Xin Pharmaceutical industry has to the recovery period of 41371 Zhang (which subcontract in the 33521 Zhang) for harvesting, harvesting ginseng dry goods about 100 tons. At present, the remaining in the 94389 Zhang, where the subcontract to 70482 Zhang, the age of 1-2 years, book value of about 31.5 million yuan. Value Revaluation Purple Xin pharmaceutical industry to develop ginseng food industry, still face policy bottlenecks purple Xin Pharmaceutical Industry ginseng in the end how much money? According to the above ginseng trader said, 2012, the Purple Xin Medicine buys the dry ginseng basically is the sugar ginseng, the shelf life about 2 years time. According to different processing methods, ginseng products can be divided into sun ginseng, red ginseng and sugar ginseng, of which red ginseng, the best quality of sun ginseng, sugar (also known as Bai) for the Times. Sugar GinsengChoose the body short, the quality more times ginseng, the fresh root uses the boiling water to boil for a moment, the row needle pierced the hole, again dipped in the sugar juice, then dries. Its medicinal value is relatively low. The trader believes that if the two-year shelf life, the purple-Xin pharmaceutical industry in 2012 and 2013 sales of less inventory, estimated to be about 200 million yuan in two years, must be in the last two years to deal with its stock of sugar, to the current doubled the market price estimates, can sell up to 1 billion yuan. But more than 800 tonnes of ginseng have been used as collateral for bank loans in August 2013 and will have to wait until August this year to lift the pledge (the 600 million-700 million yuan is estimated by the doubling market price). The annual September-October is the new season of ginseng, in fact, for the impending expiration of the old ginseng sales is very bad. Purple Xin Pharmaceutical many times announced that the company to store ginseng mainly for the development of ginseng food industry, as raw material reserves used. 2010, the company's additional investment projects include the series of ginseng products (Tonghua plant), Ginseng product serialization project (Yanji plant), Ginseng product serialization Project (Rock Factory), Ginseng product serialization project (Dunhua Factory). August 2012, Ginseng (artificial cultivation) was approved as a new resource food, but the purple Xin Pharmaceutical industry to develop ginseng food industry, still face policy bottlenecks. "1.5, ginseng as a new source of food, and has not been formally included in the National Foods 28 categories of 525 License Products catalog." "This ginseng trader said," in other words, is not included in the license catalogue, ginseng enterprises can not handle the production license, without access to the food production license, is tantamount to no access to the market pass. ”