Author: Luo Cha Hai

Source: Hefu Yongdao

In front of Junshi Biology (688180), shorting his stock Jindi shares on the first day of listing can only be a bronze.

On July 15, 2020, on the first day of listing on Junshi Bio's board, Junshi Bio's margin balance was as high as 0.2 billion, selling 1.404 million shares. In the following month, Junshi Bio's margin balance was not lower than 0.2 billion, and on July 22, the margin balance was as high as 0.287 billion. How much do the major shareholders of Junshi Bio dislike their own company? More interestingly, Feng Hui, an executive and technology core of Junshi Bio, already had his own company in June-July before leaving on August 31, and then quickly got 30 million venture capital from Junshi Bio 10 days after leaving. Everything is full of routines and ugly to eat.

Table 1, Junshi Biotech Board listing 6 trading days margin balance data

Source: Oriental Wealth

table 2, income and profit of junshi biological listing for 3 years

judging from the financial data, it is indeed a good move for Junshi biological major shareholders to short themselves.

2020 Junshi Bio-listed Science and Technology Board 3 years of income and profit Wang Xiaoer New Year's year is not the same year: 2020 loss of 1.672 billion yuan, 2021 loss of 0.7305 billion yuan, 2022 is a record loss of 2.584 billion yuan. 3-year loss 4.9 billion. Such performance is simply not allowed to short their own stocks.

What if a listed company deliberately misplaced and then shorted its own stock?

As we look back on the past month, a few details are frightening to ponder:

on August 26, junshi biological announcement said: shanghai Tanying Investment Partnership (Limited Partnership) (hereinafter referred to as "Shanghai Tanying"), a shareholder holding more than 5% of the company's shares, and its concerted actors, Shanghai Tanzheng Investment Partnership (Limited Partnership) (hereinafter referred to as "Shanghai Tanzheng"), LVC FundI, LoyalValleyCapitalAdvantageFund IILP (hereinafter referred to as "LVCFundII") and LVCRenaissanceFund hold a total of 106,332,000 shares of the company (including Shanghai Tanying and Shanghai Tanzheng holding 78,852,000 shares, the nature of the shares are all A- shares; LVCFund I, LVCFundII and LVC Renaissance Fund hold a total of 27,480,000 shares, the nature of the shares are H-shares), the shareholding ratio decreased from 11.8063 per cent to 10.7876 per cent, the shareholding ratio decreased by more than 1 per cent.

in response to this, investors in the stock bar questioned one after another: "is this a crime against the wind? how dare you reduce your holdings! "" What do you mean by passive dilution and reduction? "" This position is still reduced, don't the major shareholders have confidence? "" The brain is a good thing. "

In response to supervision and public opinion, on August 28, Junshi Biological's controlling shareholder, one of the actual controllers and chairman proposed to buy back the company's shares. The reminder announcement stated: Mr. Xiong Jun is based on his confidence in the company's future sustainable development and Recognition of the company's value, in order to safeguard the interests of investors, enhance investors' confidence in the company's investment, and promote the company's stable and healthy development, effectively combine the interests of shareholders, the company and the personal interests of employees, and propose that the company conduct share repurchase through centralized bidding transactions. The repurchased shares will be fully used for equity incentives and/or employee stock ownership plans at appropriate times in the future. Total capital for share repurchase: not less than RMB 30 million (inclusive) and not more than RMB 60 million (inclusive).

the shareholders did not buy it at all, and all kinds of complaints were: "it's just a proposal, and it's still a 30 million, continue to dad"; "margin selling is one step ahead"; "60 million is the money on the tip of the tooth, well, I'm too poor".

on August 31, Junshi biological announcement: Mr. Feng Hui, executive director and core technical personnel of the company, applied to resign from the chief operating officer and all internal positions of the subsidiary company on August 31, 2023 due to personal reasons. Mr. Feng Hui still serves as a non-executive director of the company after his resignation.

During his tenure, Feng Hui was mainly involved in the early research and development of a number of antibody drug projects such as Junshi Bio JS001 (Triplimab), JS002 (Tifcemalimab), JS004. In particular, the PD-1 drug Treprolizumab, which it led in the research and development, is the first domestic anti-PD-1 monoclonal antibody approved by the State Food and Drug Administration in China, and has now become the core product of Junshi Biology. In the first half of this year, the sales revenue of Treplimab was 0.447 billion yuan, up 50% year-on-year, accounting for 66.72 of the company's total revenue.

will Feng Hui's resignation have an impact on more than 30 clinical products of Junshi Biology? Junshi Bio Announcement: At present, the company's technology research and development and daily operation are normal, the company's research and development team and core technical personnel are relatively stable, the existing research and development team and core technical personnel can support the company's future core technology continuous research and development, the overall research and development strength has not been due to Mr. Feng Hui's resignation has no significant adverse changes.

on September 10, junshi biology issued a notice on foreign investment and related party transactions. The announcement said that in order to accelerate the research and development of Junshi biological research projects, optimize the allocation of resources. The Company, its wholly-owned subsidiaries Junshi Engineering and Suzhou Junmeng intend to sign a Joint Venture Agreement with Shanghai AnLingke Biopharmaceutical Co., Ltd. (hereinafter referred to as "AnLingke Biopharmaceutical") and Feng Hui, a non-executive director of the Company. The Company intends to subscribe for the new registered capital of Anling Bio at RMB 30.5978 million with the relevant assets and part of the patent rights and interests of the two research projects (tumor treatment field) in the pre-clinical research and development stage of RMB 140000.

Anlingke Bio was established on June 27 this year. Feng Hui, Shanghai Lingke Yixin Biomedical Technology Partnership (hereinafter referred to as "Lingke Yixin") and Shanghai Anling Xixu Biomedical Technology Partnership (hereinafter referred to as "Anling Xixu") hold 70.59, 17.65 and 11.76 percent of Anling Biotech's shares, respectively. Both Lingke Yixin and Anling Xixu were established on July 5 this year. The managing partners are also Feng Hui. The above three companies share a registered address.

it can be seen from this that feng Hui had his own company from June to July before leaving office, then left office and quickly got 30 million venture capital from junshi biology. People set up their own companies before leaving their jobs, and just 10 days after leaving their jobs, they got the company's 30 million venture capital. It's full of routines, isn't it a bit ugly to eat like this.

as for the announcement of junshi biology when feng Hui left office, it said: confidentiality responsibility, non-competition agreement, Mr feng Hui will bear confidentiality responsibility according to the agreement of the director service contract signed with the company, etc. Mr. Feng Hui has no non-competition obligation after his resignation. This is not a non-competition issue that does not seem to be the focus, but a question of whether benefits are transferred.

Now I'll give you a red envelope from 60 yuan. Direct cash withdrawal is not routine. Please participate in the activity to receive it.