Event

The company intends to raise 1.2 billion yuan at a price of not less than 8.57 yuan per share and no more than 140 million shares in a non-public offering It is used to repay loans and private debt, build drug metabolism platform with Institute of Toxicology and Pharmaceuticals of the Academy of military Sciences, increase new indications of phencynonate hydrochloride and naltrexone hydrochloride, acquire minority shareholders' rights and interests of Shandong Huasu, build production line of Shandong Huasu raw materials and solid oral preparations, build Huasu pharmaceutical brand and supplement liquidity, etc.

Brief comment

The controlling shareholders participate in a large proportion. Gome Holdings Group, the company's controlling shareholder, promised to participate in the subscription in the form of cash, with an amount of 400 million yuan, accounting for 1% of the total raised, with a lock-up period of 36 months. A large proportion of controlling shareholders participated in the fixed increase and actively locked in for 36 months, reflecting the firm support and confidence of major shareholders in the company's focus on pharmaceutical business.

The 15-year probability is the inflection point of performance. Following the divestiture of Zhongguancun Construction, the company once again intends to sell 95% of Zhongke Xiaoyun at a price of not less than 360 million yuan. The book value of the 100% stake in China Science and Technology Xiaoyun is only 190 million yuan, with an estimated value of 340 million yuan. It is expected that the completion of the transaction will bring the company about 170 million yuan in investment income and reduce the company's losses by about 3.8 million yuan. The company's apparent performance in 2015 will be greatly improved. At the same time, after the fixed increase project repays the loan, the company will reduce the arrears by nearly 600 million yuan, which will greatly alleviate the financial burden of the company.