Zhendong Pharmaceutical "Circle Money" game exposure: 80% investment project face

Less than two years into the market, Zhendong Pharmaceutical became the first company to have been publicly condemned by the Shenzhen Stock exchange for violating the rules. Since then, Zhendong Pharmaceutical has been the supervision of the regulatory letter warning, and in the sponsor representative of the ongoing supervision of the various issues have also been disclosed. The Zhendong Pharmacy announced before the IPO only needs 306 million yuan, but eventually to 82 times times the high P/E to raise 1.397 billion yuan. The investment projects that were promised after the fundraising were either changed or delayed. What is the purpose of Zhendong pharmaceutical listing? How do sponsors help with their listing and ongoing supervision? Even step on the red Line May 25, 2012, Zhendong Pharmaceutical due to the public condemnation of Shenzhen stock company issued an apology announcement. Zhendong Pharmaceutical therefore touched on May 1, 2012 began to implement the gem delisting new rules added "Red line": In the last three years has been SSE three times public condemnation of the provisions. Zhendong pharmaceutical violations occurred in 2011, Zhendong Pharmaceutical and wholly-owned subsidiary Zhendong Tai Shing in the implementation of the company's controlling shareholder Zhendong Industrial holding subsidiary Zhendong Building Production Workshop contract process, not in accordance with the contract for the payment of 30 million yuan, the objective form of the relevant party is not operating funds occupied, The Zhendong building was not returned until April 2012. In addition, in 2011, Zhendong Pharmaceutical also with the company's controlling shareholder Zhendong Industrial wholly-owned subsidiary Zhendong Five and Zhendong installed two, objectively formed related party funds occupied 3.8366 million yuan, 2.635 million yuan. SSE Annual report after the audit found that the related party objectively formed Occupy Zhendong pharmaceutical funds up to six months. After the public condemnation, Zhendong Pharmaceutical still repeatedly stepped on the red line. August 2012, Zhendong Pharmaceutical received the Shanxi Securities and Supervision Bureau on-site inspection, and received the Shanxi Securities Regulatory Bureau on the Shanxi Zhendong Pharmaceutical Co., Ltd. on-site inspection of the supervision letter. The inspection points out that there are some irregularities in the operation of the three companies, the defects of the accounts receivable mechanism, the defects in the purchase and sale links, the flaws in the management of the insider information, the improper procedures in the management and use of the funds, the inaccurate and incomplete information disclosure Financial and accounting aspects of the revenue recognition point of inaccuracy and so on. Shanxi Securities and Regulatory Bureau also found that November 22, 2011, the use of super raise funds 15 million yuan Shanxi medical and Trade Co., Ltd., after the sale of the shares, the sale of the three major problems: (i) the decision-making process upside down. In the transfer of the equity of Shanxi Medical and Trading Co., Ltd., there exists a case before the transfer. (ii) Changes in the use of fund-raising, failure to perform the general meeting of Shareholders review procedures. (c) The sale price of the stock has not been returned in time to raise funds. In the transfer of shares, some of the transfer payment received by the bank acceptance, to the inspection day has not returned to raise funds special account. January 4, 2013 Shanxi Securities and Regulations Bureau issued a letter of supervision of Jin Securities [2013]1 "on Shanxi Zhendong Pharmaceutical Co., Ltd. on-site inspection of the regulatory Letter (hereinafter referred to as" regulatory letter). Regulatory letter for the company Thai Sheng Pharmaceutical new frozen powder needle and aseptic powder needle synthesisPreparation project, Kaiyuan Pharmacy annual output of 150 million bags of granular agent project investment progress is slower than expected; recovery of Shanxi Medical and Chemical Co., Ltd. to increase the capital failure to perform the general meeting of Shareholders review procedures, timely deposit in the collection of funds for the special household matters proposed rectification requirements. It is noteworthy that the regulatory letter of the new Kaiyuan pharmaceutical production capacity of 150 million bags of granular engineering projects corresponding to the Zhendong pharmaceutical listing of the investment gold reached 8024 yuan. and Zhendong Pharmaceutical has previously changed to raise capital investment projects for the Thai Sheng pharmaceutical astragalus membranaceus medicinal herbs extraction, size capacity injection, aseptic powder injection, aseptic lyophilized powder injection, oral solid preparation, raw materials (crude refining) and other production projects to increase investment and Thai Sheng pharmaceutical new frozen powder needle and aseptic powder comprehensive preparation Project termination, Cumulative change use of the total amount of fund-raising has reached 175 million yuan. Zhendong Pharmaceutical September 29, 2010 issued a prospectus showed that the change project and slow progress projects are the important projects, the prospectus shows only 4 important items, the cumulative need for capital of 306 million yuan. This is to say, Zhendong Pharmaceutical listing when the cumulative 80% projects have changed and sluggish.