[Beijing Direct News Network September 20th] (Beijing News)On the evening of September 17, ST Kangmei, a listed company, issued a statement announcing that the strategic cooperation agreement signed between the company and Guangzhou Pharmaceutical Group does not involve specific amounts and has no significant impact on the company's current production and operation.

On September 16, media reports said that ST Comet and Guangzhou Pharmaceutical Group signed a strategic agreement, and the two sides intend to cooperate in the fields of supply and management services of Chinese medicinal materials. In the morning of September 17, ST Comex closed at 3.75 yuan per share, up 5.04%.

On the evening of September 17, ST Kangmei said that the company signed a strategic cooperation agreement with Guangzhou Pharmaceutical Group on September 16, and the two sides intend to cooperate in the fields of Chinese medicinal materials supply management services, product channel services and so on. This agreement is the basic framework document for both sides to carry out project cooperation. Specific cooperation items shall be agreed upon separately by the two sides.

New Beijing News reporter found that ST Kangmei and Guangzhou Pharmaceutical Group, as the former giants of Chinese herbal medicine, have layout in important areas, and their sales channels are very similar.

Guangzhou Pharmaceutical Group announces that since its establishment, the company has mainly engaged in research, development, manufacture and sales of Chinese and Western patent medicines, chemical raw materials, natural medicines, biomedicine, wholesale, retail and import and export business of Western medicines, traditional Chinese medicines and medical devices, large health products, investment in health industries such as medical services, health management, health care and pension, etc.

In terms of pharmaceutical manufacturing business only, the "Danan Pharmaceutical Plate" of Guangzhou Pharmaceutical Group includes Baiyunshan (36.370, -0.08, -0.22%) of listed companies, 27 pharmaceutical manufacturing enterprises and institutions of Guangzhou Huacheng Pharmaceutical Industry and Baiyunshan. In terms of South-style Chinese medicine, Guangzhou Pharmaceutical Group also has 12 old-fashioned Chinese pharmaceutical companies, such as Chinese Pharmaceutical Industry, Chen Li Ji Pharmaceutical Factory, Qixing Pharmaceutical Industry, Jingxiutang Pharmaceutical Industry and Pan Gaoshou Pharmaceutical Industry.

Baiyunshan is a listed company under Guangzhou Pharmaceutical Group. In the annual report of 2018, Baiyunshan introduced that in the mode of restriction and agency, most of the billion yuan, community health care and retail terminals were covered by distributors and agents at all levels.

ST Kangmei Annual Report also introduced that direct marketing of drugs to hospitals or medical institutions is the main mode of sales of traditional Chinese medicine drinks.

In addition, the state-owned property and scale of Guangzhou Pharmaceutical Group also make investors pay more attention. At present, the controlling shareholder of Guangzhou Pharmaceutical Group is Guangzhou People's Government.

By the end of June 2019, Guangzhou Pharmaceutical Group had total assets of 54.39 billion yuan, total liabilities of 31.797 billion yuan and net assets of 22.596 billion yuan, with net assets attributable to shareholders of parent company of 7.917 billion yuan. From January to June 2019, Guangzhou Pharmaceutical Group's operating income was 33.479 billion yuan, and its net profit was 2.718 billion yuan; the net profit attributed to the shareholders of the parent company was 1.188 billion yuan.

ST Comet's performance has declined significantly this year. According to the data, the operating income of ST Comet from January to June was 8.132 billion yuan, down 15.5% from the same period last year; the net profit attributable to shareholders of listed companies was 85.5 million yuan, down 82.5% from the same period last year; the net profit attributable to shareholders of listed companies was 7.26 million yuan after deduction, down 98.44%.

ST Kangmei said that this agreement is only a principled and intentional cooperation agreement between the two sides to carry out strategic cooperation. It does not constitute legal liability and formal commitment, has no legal effect of enforcement, does not involve specific amounts, specific cooperation modes and matters need further consultation, specific cooperation matters and The method is based on the contract signed by the company and the relevant subjects, which has no significant impact on the company's current production and operation.