My Fintech Empire

Chapter 228 [Hengtong Pharmaceutical Group (210)]

When they saw Fang Hong's asset income chart updated on Weibo, and saw the asset scale of more than 1.4 billion, everyone also believed that he did not become the second wave of Shandong Juli's main Shenglang.

Although the second main Shenglang market has more than doubled in height, but after all, the plate is a bit small and cannot accommodate too much money.

The chief rudder came in and bought 13 million shares, and bought almost 150 million. When the final shipment was made, he also gave up his strength and sacrificed the "one-word soul-destroying knife" for shipment.

The amount of funds of a chief helmsman is already enough. If there is another K God who buys this ticket, he will also buy hundreds of millions of funds. Maybe they will step on each other, so that neither of them can get out or go out without reaching the expected target price and target. Profits go out.

The most important thing is that the fans and stockholders saw the income curve of God K, and realized that instead of playing monster stocks, they can make more money by making big asses.

Since the operation of institutional accounts on May 25th, it has only been two months to double the profit of more than 700 million yuan, which can only be earned by a big butt with sufficient liquidity.

Because large-cap stocks can be placed in positions, one point of arbitrage in large-cap stocks is worth six or seven points or more in small-cap stocks.

Thinking about it this way, the stockholders also feel that with God K’s level of trading in the big weight, not to mention that the previous wave of market prices has eaten nearly double the big meat, and there is really no need to compete with the main rudder for meat.

...

Monday, July 13.

Today's A-share market opened, Shandong Juli sealed the one-word limit without any suspense, the stock price dropped to 16.41 yuan, and the whole day's turnover was only 25.85 million yuan. The person who took the last stick paid for the carnival of everyone in front .

In terms of index, the broader market adjusted again today, fell below 3100 points, and closed down -1.07% to 3080.56 points.

In the afternoon, Qunxing Capital headquarters.

In the CEO's office, Hua Yu looked at Fang Hong and said, "On Saturday morning, I met Wang Qingxiong, the chairman of Hengtong Pharmaceutical Group, and once again proposed to acquire the company's Gufangzi and Yishengtang brands, but he still refused. up."

Hearing this, Fang Hong chuckled, and said calmly, "It's expected. Hengtong spent so many years buying up these ancient prescriptions in order to store them in order to sell more profitable medicines."

In Wang Qingxiong's eyes, medicines that cost less and can cure diseases are not good medicines, but those medicines that treat the symptoms but not the root cause are good medicines, the kind of medicines that are fine when taken but the body can't stand it once the medicine is stopped It is good medicine.

Hengtong Pharmaceutical Group has spent so much energy collecting those prescriptions over the years, not for the purpose of promoting them, but to prevent them from being circulated.

However, the time-honored brand Yishengtang under the group company is very famous, and it is indeed a conscientious traditional Chinese medicine shop. There are also experienced old doctors sitting in the shop for consultation. division.

Because Wang Qingxiong needed to use the brand of Yishengtang to cover up his real purpose. To put it bluntly, he wanted to be a watch and set up a memorial archway.

But this is his brilliance. If you say that he deliberately hides the ancient prescriptions of traditional Chinese medicine or suppresses traditional Chinese medicine, he will show you Yishengtang.

In fact, one only needs to look at the revenue structure of Hengtong Pharmaceutical Group to find the fox’s tail. Yishengtang’s revenue in the company only accounts for 3.16%, which is less than 5 percentage points.

What is clever about Wang Qingxiong is that he also expresses with great emotion to the outside world that traditional Chinese medicine does not make money, and its proportion in the group company is very low, but the things of our ancestors cannot be lost. Keep going blah blah blah.

It seems to be well-founded and convincing, which has won praise from many outsiders.

Ordinary ordinary people really can't see it.

At this moment, Yue Qing, Huayu's assistant, came over and sat down on the empty sofa next to her. She brought a piece of material, which was about Hengtong Pharmaceutical Group.

Yue Qing opened the file and browsed for a while and said: "Hengtong Medicine was established in 1998. The company's current business scope includes: Chinese patent medicines, chemical medicine preparations, antibiotic preparations, biochemical medicines, disinfection products, health food, dairy products, Chinese medicinal materials, Sales of decoction pieces of traditional Chinese medicine, chemical raw materials, antibiotic raw materials, biological products, pharmaceutical packaging materials and containers, and pharmaceutical excipients; retailing of first-class medical devices and second-class medical devices."

"Last year, Hengtong Pharmaceutical Group achieved an operating income of 28.439 billion yuan and a total tax of 457.97 million yuan. It is a private enterprise in Xincheng second only to Huayang Group and ranks in the top three among nearly 10,000 pharmaceutical commercial enterprises in the country. It ranks first among private pharmaceutical commercial enterprises, and has been shortlisted as one of the top 500 mainland enterprises for five consecutive years.”

"As of the first half of this year, Hengtong Pharmaceutical Group has total assets of 18.193 billion yuan, registered capital of 1.5 billion yuan, 12,513 employees, more than 80 affiliated companies, and 876 direct-operated and franchised retail pharmacies."

"This is the material report compiled after due diligence on the company." Yue Qing gave a rough overview and then handed another material document to Fang Hong, who took it and opened it for a glance. After reading it for about seven or eight minutes, I quickly noticed the key information in the material report.

Fang Hong immediately looked at Huayu: "Hengtong Pharmaceutical Group is in trouble now?"

Hua Yu nodded and said: "There is indeed trouble and it is not small. In the past three years, Hengtong Pharmaceutical Group has expanded extremely fast, and the global financial tsunami triggered last year has also had a great impact on the group company. Wang Qingxiong has also encountered Big trouble."

Fang Hong looked at the material again and said, "Let's talk about it."

Huayu continued: "The problem was five years ago, in February 2004, Wang Qingxiong introduced external capital in order to speed up the expansion of Hengtong Pharmaceutical. At that time, Zhongtai Capital invested 1.35 billion in exchange for 30% of the equity. After becoming the second largest shareholder, Hengtong Pharmaceutical has entered the fast lane of accelerated expansion after receiving financial support."

The scale of the 1.35 billion funds is an astronomical figure at present, and it will also be an astronomical figure ten years later. In 2004, there was no doubt that it was even more valuable. At that time, Hengtong Pharmaceutical Group was given 4.5 billion. valuation.

Huayu paused for a moment and then said: "While Zhongtai Capital brought Wang Qingxiong funds, it also put him in shackles and forced him to expand desperately, because the two parties signed the 'gambling agreement' terms, if not Zhongtai Capital Due to various reasons, Hengtong Pharmaceutical could not be listed five natural years after the investment, and Zhongtai Capital has the right to withdraw from Hengtong Pharmaceutical Group through repurchase.”

Huayu immediately added: "Strictly speaking, this is not an agreement on a 'VAM clause', but an agreement on a 'share repurchase clause'."

Hearing this, Fang Hong nodded and seemed to be talking to himself: "In other words, when Hengtong Pharmaceutical raised funds in 2004, Wang Qingxiong and Zhongtai Capital had clearly agreed that if Hengtong Pharmaceutical could not go public in five years , then Hengtong Medicine must repurchase the equity held by Zhongtai Capital, and according to the due diligence report, it must also ensure a reasonable return from Zhongtai Capital..."

Huayu immediately said: "According to the reliable information I got, in the agreement signed by the two parties, Zhongtai Capital required a compound interest return of about 45% per year in the agreement. Withdrawing with profit of at least more than 8 billion yuan, Hengtong Pharmaceutical Group needs to spend 8 billion to 8.3 billion to repurchase the 30% equity in the hands of Zhongtai Capital."

This equates to a five-fold return on investment.

At the time of the shareholding, the valuation of Hengtong Pharmaceutical Group was 4.5 billion, which means that Zhongtai Capital sold its part of the equity and obtained an investment return of five times the financing amount of the year according to the agreement, and the difference required Wang Qingxiong to sell himself equity proceeds to compensate.

The current total assets of Hengtong Pharmaceutical Group are about 18 billion, of which the net assets are about 10.2 billion. Even if the price is based on net assets, Wang Qingxiong will have to sell 39.7% of his shares to compensate Zhongtai Capital.

After a while, Huayu said again: "It's July now, and five and a half years have passed since the time limit of the gambling agreement between the two parties. Zhongtai Capital has postponed it for half a year, but the time limit is also up. Basically, Hengtong Pharmaceutical can be declared The listing plan has failed, and it can be said that the current Wang Qingxiong has actually been completely manipulated by Zhongtai Capital, and it depends on whether Zhongtai Capital will start a series of agreement procedures."

Do you want to start? Needless to say?

It is the nature of capital to pursue profit. The current situation is that Hengtong Medicine is already a fish on the chopping board of Zhongtai Capital.

Fang Hong closed the materials and looked at Hua Yu and said bluntly: "Since Wang Qingxiong is unwilling to sell Yishengtang and the ancient prescription in his hand, then we will acquire Hengtong Medicine and kick Wang Qingxiong out."

As soon as this remark came out, Hua Yu and his assistant Yue Qing couldn't help but be surprised. Hengtong Pharmaceutical Group is the second largest company in Xincheng, and the tens of billions of mergers and acquisitions are definitely a big event in the Xincheng business district. Looking at the current national scope, it is also a major event. mergers and acquisitions.

...