Fu'an Pharmaceutical raw material price lower than market 40% IPO is questioned

Chongqing Fu'an Pharmaceutical (Group) Co., Ltd. March 4 issued a letter of intent, the company intends to issue no more than 33.4 million shares, accounting for the total share capital after the issuance of 25.04%. According to the China Securities Daily reported that the issue of fund-raising will be directed to ammonia aztreonam and other antibiotic raw materials, such as technical transformation of the production of antibiotics, GMP renovation project and Research and Development center construction projects.　　This can not help but remind us that the "China Business newspaper" reported that Fu'an pharmaceutical industry was questioned more than 400 million times. Raw material price is lower than market 40% according to "China Business Daily" reported, a beijing-based brokerage, said, "Fu'an pharmaceutical industry's main business income growth rate and net profit growth does not match." 2008 main business income is 198 million yuan, compared to 2007 growth of 112.07%, and the same period net profit has increased by 701.75%; 2009 main business revenue grew 59.46%, but net profit rose by 104.66%. Even more incredible is that its raw materials--ammonia aztreonam intermediate outsourcing prices than the market price is lower than 40%, it is difficult to use commonsense to explain. "The report said, Fu'an pharmaceutical industry, said because the company has the most basic chemical raw materials to prepare the main raw materials ammonia aztreonam intermediates of the self-made advantage, the price is lower than the outsourcing, thus in the production of finished ammonia Aztreonam pure powder sales cost advantage, the past three years in the company's ammonia aztreonam raw materials in the operating income rapid growth,　　From 2007 to 52.2603 million Yuan increased to 2009 of 142 million yuan, only the first half of 2010 in the product income will reach 88.5685 million yuan. The report points out that, however, it is the Fu'an pharmaceutical industry's own description of the cost of the "advantage" has become the focus of outside questioning. "The prospectus shows that the company's ammonia-aztreonam intermediates originate in two parts, partly homemade, and partly outsourced by capacity." Self-made part we can not understand its specific costs, but the purchase part of the price is significantly lower than the market price, or even only half of the market price.　　The brokerage researcher said. According to the report, in the prospectus, the Fu'an pharmaceutical industry from 2007 to the first half of 2010, the purchase price of ammonia aztreonam intermediates were 4406.30 yuan kg, 2393.16 yuan kg, 2062.52 yuan kg and 1392.79 yuan kg.　　This outsourcing price is always lower than the average market price. The report pointed out that the same is the gem of the company's pharmaceutical industry, for example, 2007 Lai Mei Pharmaceutical outsourcing per kg unit price of 4658.36 yuan, the same period Fu'an pharmaceutical outsourcing price is 4406.30 yuan, the latter purchase price is the former 94.28%. Since then, the Fu'an pharmaceutical outsourcing prices and market prices between the difference gradually increased, 2008, the U.S. pharmaceutical outsourcing price of 3836.59 yuan, Fu'an pharmaceutical industry only 2392.16 yuan, only 62.35% of the former, 2009 Fu'an pharmaceutical purchase price of 2025.52 yuan, is the Lai Mei Pharmaceutical Outsourcing Unit Price ( 1-June data 3183.05 yuan/KG) of 63.63%.　　In this respect, Fu'an Pharmaceutical dong Tang Qin explained that the main Fu'an pharmaceutical industry mastered the ammonia aztreonam intermediate preparation of the core technology, so the supplier has a higher bargaining power. But that does not seem to explain the company's 2008 ultra-low purchase price, the report said. The prospectus shows that in 2008 the Fu'an pharmaceutical industry made 16.69 tonnes of ammonia aztreonam intermediates, while external sourcing only 1 tons. "In 2008, only 1 tons of outsourcing, there will be such a strong bargaining power?" asked the reporter.　　But Tang didn't answer the question.　　Reported that the reporter in its prospectus to see the data showed that 2009 the company's ammonia aztreonam intermediates of the purchase volume and self-made amount of about 17.9 tons, then the cost of their purchased raw materials in its total cost of the weight significantly increased, the high and low price of outsourcing, directly affected its profits. Reported that the reporter through the China Chemical network provided by the ammonia Aztreonam Intermediate manufacturers directory to inquire about the market's public offer. One of the registered in Zhejiang Pharmaceutical Co., Ltd. sales staff said that the company is Fu'an pharmaceutical industry, one of the ammonia aztreonam intermediates, the external market price is 3100 yuan kg to 3200 yuan kg.　　This price is higher than the Fu'an pharmaceutical industry over the past 2.5 years announced the price of outsourcing.　　"Virtual" cost reduction for financing? The report showed that the Fu'an drug industry plans to issue 33.4 million shares, the first 2009 years of earnings per share of 0.91 yuan. After the IPO, the dilution of earnings per share was 0.68 yuan. Given its high growth of 16.9 times times net profit over the past three years, it should not be less than 60 times times the issue.　　According to the issue of 60 times times the price, corresponding to the price of 40.8 yuan per share, can raise capital of 1.36 billion yuan. The report pointed out that in the case of other raw material price cost and operating income unchanged, if the Fu'an pharmaceutical industry 2009 Ammonia Aztreonam intermediate outsourcing cost from 2062.52 yuan kg, increase to the same market average level of 3183.05 yuan kg, the corresponding procurement costs will increase 20.1 million yuan. Regardless of the tax revenue due to the reduction of profit and other factors, the net profit fell to 63.96 million yuan, corresponding to the earnings per share of 0.48 yuan per share price reduced to 28.8 yuan, can raise funds to 960 million yuan, reduce 400 million yuan. That is to say, the Fu'an pharmaceutical industry through the unknown "linked transaction", as long as pay 20 million yuan "cost" may get more than hundreds of millions of yuan to raise funds.