John Yu Pharmaceutical: Abnormal association between 4 times times the operating income

"Investor" analyst Yechichu Shenzhen John Yu Pharmaceutical Co., Ltd. (hereinafter called John Woo Pharmaceutical) main business for the chemical synthesis of peptide drugs research and development, production and marketing, the main products for peptide drugs, its products are generic drugs. Zeng's three brothers for the company's actual control, John Yu Pharmaceutical industry was set up at the beginning, only the relevant drug production batch number, and research and development center, production plants, equipment and other core assets in its parent company, John Yu Biological.　　John Yu Biology for the John Yu Pharmaceutical industry to undertake research and development costs, and its assets leased to the company for free use, it can be seen that the relevant parties to the company for the benefit of transport. In order to avoid technology and asset independence, the company's research and development of John Yu Bio-related and production assets of the acquisition, personnel integration, core research and development team and management personnel into the company. However, the analysis found that the average employee pay in the company reporting period declined.　　We have to suspect that the affiliated party is suspected of sending benefits again to the company through the payment of staff. The company and the related party's irregular funds exchange 4 times times with the operating income, the massive intercourse cannot explain the legal origin and the whereabouts.　　The company also exists in violation of the Bill law, the false acceptance of bills, the Act of bank funds.　　The risk of personnel loss John Yu Pharmaceutical by the former brothers through affiliated companies to set up, the company listed before the shareholding structure, Chairman Zeng Shaoqui shareholding 34.32%, Vice chairman Zengshaoqiang shareholding 26.64%, Supervisors Zeng Shaobin shareholding 5.3%, three brothers total direct shareholding 66.26%. In the operation of the listing process, the John Woo pharmaceutical industry also received two rounds of PE shares.　　March 2008 Sai Fu Three, Mauritius (China Investment) Co., Ltd. and Shenzhen Innovation Investment joint venture, the company increased capital of 55.6529 million Yuan, Sai Fu fund to obtain 20.91% equity, Shenzhen Innovation Investment to obtain 4.09% equity. This is the first time the fund has entered the biopharmaceutical industry.　　January 2009 Sai Fu's another fund TQM again to the company additional capital 22.1477 million yuan, after this round of shares, Sai Fu three period shareholding 19.97%,TQM shareholding 4.51%, Shenzhen Innovation Investment shareholding 3.91%,PE Total shareholding 28.38%. Another 5.36% of the company's shares held by Fengcheng Investment, Fengcheng Investment is the company to lock the core backbone of the establishment of the management shareholding platform. But we find that its core personnel are also small on the shareholding platform.　　Production, research and development, marketing, finance and other core departments responsible for only 1.24% of the shares.　　A brokerage fellow in Shenzhen, who declined to be named, told the investor newspaper that the company is in an industry that relies heavily on technology research and Development, and that the proportion of management and core research and development personnel is too low for this type of technology start-up, which can easily lead to loss of personnel and technology. It is puzzling that the company's management and core technical personnel not only the proportion of low shareholding, and pay level is not high.　　2007 to 2010 before the three quarter, the company paid to key management personnel of the remuneration of 290,000 yuan, 790,000 yuan, 2.14 million yuan, 1.33 million yuan. CAS Shanghai BiochemicalDr. Hu Jia Lei told the investor newspaper: Technical Pharmaceutical Enterprise Director-level managers generally have a yearly salary of more than 500,000 yuan, if the pay is too low, there may be other implicit subsidies, or the enterprise technical content is insufficient. The benefits of the delivery of the obvious John Yu pharmaceutical industry was established at the beginning, only for the application of drug production batches, is actually a shell company, research and development and production assets are in the John-Yu Biological. John Yu Pharmaceutical after the production of batch number, through to the parent company free lease of plant, equipment, the way to carry out production.　　The company also free use of the parent company's patents and research and development technology, do not undertake research and development expenditure. According to the accounting ratio principle, the income earned by the accounting object should be matched with the cost and cost incurred in obtaining the income, in order to calculate the net profit and loss.　　The company will be the income to their own, but let the research and development costs, plant, equipment and other fixed assets depreciation let the parent company Bear, there is a clear mismatch, the actual control of people through the John-Yu biological to the company to convey benefits. Company for High-tech Enterprises, enjoy the Shenzhen Special Economic Zone income tax "two free from three halves" policy, 2007 years of exemption from income tax, 2008 and 2009, the company's implementation of the income tax rate is 9%, 7.5%.　　Under the same control, the profit transfer between the affiliated enterprises of different income tax rates can achieve the tax avoidance effect, and the above illegal operation is suspected of tax evasion. To avoid the development and production of Independent, the company 2008 two times to the parent company to acquire assets, and the integration of personnel. The number and proportion of research and development staff has increased as the core research team working in the parent company has entered the company.　　From 2007 to 2009, the number of employees in the company was 127, 265, 285, and the cash paid by the company to employees and employees was 9.93 million yuan, 13.64 million yuan and 18.68 million yuan respectively. 2007, the company's main staff for production personnel, President Jiang Jiancheng and other technical personnel in the parent company pay, the average annual salary of 78,000 Yuan, 2008, a large number of company executives, technical personnel entered, employees average annual salary but fell to 51,000 yuan, 2009 also rose to 66,000 yuan.　　After the entry of highly paid personnel, the average wage does not rise and fall, which makes people have to suspect that the actual controller through the relevant party to undertake staff remuneration, the company again to convey benefits.　　An agent in Wuhan pharmaceutical agents told the "investor": pharmaceutical products of the factory pricing space is very large, sales margin is very large, from the manufacturers to get 10 yuan, 15 yuan of preparations after all levels of channels, the price may exceed 100 yuan. We found that the price of drugs disclosed by the company is only a change rate, but there is no real price, and compared with the hospital sales price after the multi-level channel, the data is not comparable.　　The company is suspected of concealing the actual price and disclosing the data is a misleading suspicion to investors. We surveyed the market prices of five peptides (including 1mg, 10mg, two species) of the company's flagship product. The current market on the thymus five peptide 1mg price in 8 yuan, generally 5 yuan, about 10mg20 yuan. The value of Thymic five peptides before 2006High, followed by a large influx of manufacturers, prices are falling, while the company's average sales price is higher, in the first half of 2010 more than 20 yuan. Money to borrow to become mystery company 2007, 2008 years operating income is 56.2 million yuan, 77.36 million yuan respectively. In 2007, the company received additional cash in connection with fund-raising activities of $214 million, 263 million dollars in cash related to other fund-raising activities, and transactions between the affiliated parties and 4 times times the operating income.　　In 2008, the company received more than $176 million in cash related to fund-raising activities, and paid 161 million dollars in cash related to other fund-raising activities, and the transactions that occurred with the associated party exceeded twice times the operating income. In addition to the 2008 advance acquisition of John Yu Bio-equipment 34.87 million can explain the legal whereabouts, the rest are capital turnover, or with the bank to increase the flow of funds, there is no real source and whereabouts of the description.　　The relationship between the issuer and the associated party for the purchase of the goods is only hundreds of thousands of yuan per year of diesel used for electricity generation, compared with the abnormal transaction is very large. Company gross profit margin, cash flow abundant, operating precipitation funds. We suspect that the company will lend a large amount of money to the actual control of the petrochemical enterprises for cash flow. Normal petrochemical Products Zero trade, cash turnover is very fast, there is no "inventory expensive now become difficult" problem, there is no large capital turnover needs.　　We speculate that this may be related to some kind of commercial behavior of the parent company, such as the import of crude oil, which requires a large amount of cash upfront, and then gradually distributes the money downstream. March 2007, the company issued no real trading background of the bank acceptance 24 million to Shenzhen, Cheung Pu Trading Company, by its endorsement of the bill to the relevant party Shenzhen John Yu Venture, Shenzhen, John Yu venture will be discounted bills discount money into the company account. This Act violates the provisions of the Bill Act and is suspected of economic fraud.