[CNDSN5 April 19 hearing] (China Investment Advisory Network) in a quarterly publication before and Kangmei pharmaceutical industry a series of intensive investment action make investors dazzled.

In May 6th announced a partnership with the Qinghai provincial government plans to invest 2000000000 yuan to build Chinese futures exchange and Internet + medical project. In less than 20 days, the U.S. pharmaceutical centralized issuance of up to 4900000000 yuan of new investment projects. Kangmei pharmaceutical before 8600000000 yuan investment in the implementation of the project, has invested about 3260000000 yuan, the funding gap.

Statistics show that from 2006 to 2014 in nearly 10 years, Kangmei pharmaceutical industry net profit by 1 million yuan increased to 22 billion yuan, it is thanks to the ongoing project investment and the rapid expansion of the strategy. However, they also push high pressure on its debt, 2006 has Kangmei pharmaceutical accumulated from market financing of nearly 200 billion yuan, but to the first quarter of this year, Kangmei pharmaceutical liabilities total of 142.15_yi billion yuan.

Another data show that including Kangmei industry, Xu Dongjin etc. and Kangmei pharmaceutical four shareholders before the total pledged 7.33 billion shares Kangmei pharmaceutical stocks. In terms of 35 yuan per share price, 50% of the pledge discount rate calculation, the pledge of shares to raise funds or reached 128 billion yuan, and the whereabouts of these funds no public explanation.

"China runs a newspaper" the reporter on the aforementioned project funding sources and major shareholder financing uses call about Kangmei pharmaceutical secretaries Qiu Xiwei, Qiu, to travel on grounds of unaccounted for. And Kangmei pharmaceutical interactive platform to answer questions about investors said, large shareholders to pledge shares is "based on their business funding needs, and the company from a large market financing is mainly existing investment projects to increase investment, new business also need to operating funds to supplement.

Continuous investment

Although Kangmei pharmaceutical Chairman Ma Xingtian whether the alleged to the original Jieyang municipal Party committee secretary Chen Hong Ping bribery 500 million Hong Kong dollars a case has not yet been finalized, but this did not hinder company intensive investment activities.

Notice shows that the Kangmei pharmaceutical recently a sum of investment activities in early may occur in Qinghai Province and intends to invest 20 million yuan investment in the construction of Qinghai Chinese herbal medicine stock and futures exchanges, Qinghai province Internet + medical service platform, Qinghai Province hospital investment and set up Kang Beauty Health Insurance Co., Ltd. and other four projects.

Prior to April 28th, Puning health food project project, ginseng 300000000 Yuan Kangmei pharmaceuticalalso announced a $1800000000 under forest. In April 18th, the investment amounted to 800000000 yuan in Guangxi Yulin health service industry projects will start first. In less than 20 days, the U.S. pharmaceuticalcentralized issuance of up to 4900000000 yuan of new investment projects.

A quarterly show, the U.S. pharmaceutical before 8600000000 yuan of the 9 investment projects in the implementation.

In fact, high debt is one of the U.S. pharmaceutical effective way to raise funds for the project. Data show that, to a quarter of the U.S. pharmaceutical total liabilities 14215000000 yuan. Need to mention that, the U.S. pharmaceutical current monetary funds for 13281000000 yuan, seems to be "not bad money".

However, even Kangmei pharmaceutical industry will continue to leverage and increase the amount of monetary funds, money supply speed has not kept pace with project investment and expansion of enterprises of funds needed for the step.

Only in 2014, the U.S. pharmaceutical financing to market through the issuance of preferred stock, short margin etc. the scale reached 9985000000 yuan. But in recent years the investment project data show that Kangmei pharmaceutical investment project financial increasing year by year, nearly two years only construction investment projects that up to 135 million yuan.

The aforementioned total investment of 86 billion yuan 9 large projects at present a total investment of about 3.26 billion yuan, and the company in 2014 non public issuance and raising the total to 2.968 billion yuan has been used 2.468 billion yuan, visible the project investment gap is still large. It is puzzling is that in the early stage of the project investment under the condition of slow, Kangmei pharmaceutical industry this year half a year and start new investment projects.

"Tuhao" financing puzzle

In fact, the U.S. pharmaceutical nearly two years of performance surge and "vote Dajian" closely related.From the 2007 1.46 million yuan net profit to 2014 2.286 billion yuan and Kangmei pharmaceutical performance of 8 years of time increased by 15 times, and its revenue grew from 12.94 billion yuan to 159.49 billion yuan growth more than 12 times.

However, the U.S. pharmaceutical "unconventional growth" also attracted many questioned the market, the media had questioned its inflated Yuan Yeji 1800000000. Another question is the market, with hundreds of millions of U.S. pharmaceutical are still from the market a lot of financing?

Shanghai Jiaotong University Department of accounting and Finance Associate Professor Chen in the "Kangmei pharmaceutical project investment chaos account" in an article said Kangmei pharmaceutical industry to raise funds and investment in major projects between related information is obscure, the amount of financing is far greater than the actual investment expenditures.

And Kangmei pharmaceutical 2014 from market financing amount up to tens of billions of dollars, the non equity investment projects invested a total of only 30 billion yuan, Kang beauty of the money gone?

Kangmei pharmaceutical in investors to answer questions related to the said company of monetary funds to be used for fixed assets investment projects in the Chinese herbal medicine professional market construction, expansion of the company's direct sales and Trusteeship of new business also need working capital supplement.

Chen Xiaojin said Kangmei pharmaceutical financing gold surface on repayment of short-term financing bonds and bank loans, to supplement working capital, but the real purpose is all kinds of investment projects. Kangmei pharmaceutical since 2008 all kinds of financing are not and specific investment projects associated. Its only purpose is averse to raise capital account regulation, in order to facilitate the free to use.

In fact, the U.S. pharmaceutical capital puzzle is not limited to the project investment. The first four large shareholders to pledge shares to raise funds also use unknown.

According to the announcement of Kangmei pharmaceutical May 8, the controlling shareholder Kangmei industry on May 6, 2015 will be held by the 105 million shares Kang pharmaceutical shares with GF Securities to carry out the stock pledged repo transactions. Kang beauty industry has pledged shares of 558000000 shares, accounting for 83.41% of its total holdings.

In addition, two shareholders Xu Dongjin Pledged Shares 46557400 shares, accounting for 97% of its total holdings. The association of the three shareholders of Puning City Jinxin pawn line and four shareholders Puning City International Information Consulting Service Co., Ltd. will hold the Kangmei pharmaceutical shares fully pledge.

The total number of shares of major shareholders a total of four to 733000000 shares pledged.

The announcement also shows that the four major shareholders of the previous years a high proportion ofthe shares held by the pledge, the pledge ratio of more than 90%. As to the reasons for the major shareholder of stock collateral, Kangmei pharmaceutical in an interactive platform for investors explain said, is "based on their business funding needs.

The major shareholder of the best plan"

At present in addition to the Blue Cross Blue Shield of shares as a result of planning major events and suspension, Kang beauty industry and related enterprises, the shares have no other significant matters, temporarily not clear Kang pharmaceutical four shareholders before the high proportion of pledge of stock and investment in other projects related to.

At the same time, there is no data show that large shareholders to raise funds for the U.S. pharmaceuticaland related investment projects. The reporter contacted the U.S. pharmaceutical secretaries Qiu Xiwei to understand the details, but Qiu Xiwei has not been a positive response to travel on.

The pharmaceutical industry investment experience of investors claimed that the pledge of the stock of large shareholders to raise funds may not be used to listed companies, but identified in financing for listed companies to provide "prop up the market". One example is that the previous pledge repurchase transactions, institutions have large sums of money to import.

According to statistics, the U.S. industry started in June 8, 2010 for the pledge of shares, the cumulativenumber of 17 times, most of the pledge ratio of more than 90%. Private analysts believe, generally do not have shareholders to pledge so much stock, stock prices fell, the value of the pledge will shrink, shareholders are more likely to go to private equity and other institutions to raise the stock price.

This personage thinks, from repeatedly pledged equity point of view, the large shareholders are short of money, if the stock price continued to fall, the institutional investors may sell stock, which is not conducive to the latter company financing, major shareholders repurchase transactions and pledge stock is indeed "prop up the market".

Statistics show that nearly 1 years all A stock repurchase announcement, the next day's closing the average yield of 0.26%, increases the probability of 49.77%. Among them, Kangmei pharmaceutical released a total of 125 a similar announcement, increases the probability of 46.40%, the next day's closing average revenue - 0.13%, related announcements on the stock of bad influence, the next day fell large probability, there is the risk of a certain callback.

However, this view is not sufficient basis, large shareholders "other business capital needs capital investment is also not clear, Kang beauty pharmaceutical four shareholders before the high proportion of stock pledge financing intended why is there a need for further understanding.

In a large number of major shareholders of listing Corporation financing at the same time, the sameintensive financing.

The data show that the pharmaceutical monetary fund from 708000000 yuan in 2006 and gradually increased to 13281000000 yuan in the first quarter of 2015. Pharmaceutical monetary fund is increasing at the same time, but from the market has continued to financing through the capital market.

Kangmei pharmaceutical listed financing in 2001 to 2.26 billion yuan, started in 2006 through the issuance of such financing and Kangmei pharmaceutical through the issuance of corporate bonds and short trading, etc. from the market thaw the amount of funds of nearly 200 billion yuan.

Public data shows, since listing in 2001, the U.S. pharmaceutical many times through the capital marketfinancing strong expansion. Investors according to the above analysis, it said, because Kangmei pharmaceutical development pace is quick, especially in the past two years, boosting the Internet +, and to the whole industry chain extension, the annual need billions of dollars of investment, which requires companies reserve enough money.

At the same time, Kangmei pharmaceutical industry will be with their own advantages began to pharmaceutical companies or enterprises acquisitions, through mergers and acquisitions and in turn improve their advantage in the whole industry chain, the demand for funds is quite large. In this case, do not rule out the major shareholders in advance of industry mergers and acquisitions and related industries investment, through constant increase, etc. into the listed company, to accelerate the development of the company. At the same time, thickening of the performance of the company.

There is a need to put forward, the U.S. pharmaceutical project financing in the input and output is not always best "". Such as Bozhou Huatuo international medicine project, Kang Beauty Hospital of traditional Chinese medicine engineering projects and Jilin ginseng Industrial Park level projects such as project are investment does not reach the expected. 3

Editor: Wan Wan