After being involved in the telecom fraud case, Hepalink stepped on the performance thunder again.
On January 30, Hepalink (09989.)hk,002399.SZ) announced that the group expects a net loss attributable to the parent company of 92.4 billion to 64.7 billion yuan (RMB, the same below), deducting non-net loss of about 92.1 billion to 64.4 billion yuan, all of which turned from profit to loss year-on-year.
You must know that in the first three quarters of 2023, Hepalink's net profit attributable to the parent company has only declined, but it is not a loss. During the reporting period, the company's net profit attributable to the parent company fell by 78% year-on-year05% to 14.3 billion yuan.
After calculation, in the fourth quarter of 2023, Hepalink recorded a net loss attributable to the parent of 7900 million to 106.7 billion yuan, it is surprising that such a big hole has been smashed in just one quarter.
With the outbreak of performance thunder, it is like dropping a depth charge on the market. On January 31, Hepalink's share price fell sharply, hitting 2HK$5 shares hit an all-time low, and as of the day**, the stock closed down 417% to 2HK$53 shares.
Hit the cold winter of the heparin cycle, and the performance quickly changed face
Behind the large loss of performance,Hepalink said it is closely related to the current challenges facing the heparin industry.
In 2023, the three-year-long global public health event will finally come to an end, the medical system and drugs will return to normal, but the heparin market will face severe challenges of terminal destocking.
In order to accelerate destocking, major heparin companies around the world have generally slowed down the pace of production, and the demand for heparin API (heparin active ingredient) orders has declined sharply. Among them, the export data of China's heparin API fell far more than the industry expected (year-on-year), which had a great impact on Hepalink's API business.
It is reported that Hepalink, as the world's largest heparin sodium API company and the world's third largest enoxaparin preparation company, has a huge overseas market, of which the revenue from Europe is more than 5%, and the revenue from the United States is also as much as 1%.
According to the financial report data, in 2022, Hepalink's revenue from Europe will be 373 billion yuan, accounting for 52 percent of total revenue16%；Income from the U.S. region is 43.3 billion yuan, accounting for 19 percent of total revenue40%。
In terms of business, the company's main products and services include enoxaparin sodium preparations, heparin sodium APIs and enoxaparin sodium APIs, and macromolecule drug CDMO services. Among them, heparin pharmaceutical preparations and API products have always been the main force of the company's revenue.
However, in 2023, Hepalink said that the company's API business has been greatly impacted, and at the same time, due to the impact of destocking, the company's preparation business in non-European and American overseas markets has also shown a certain degree of decline.
In addition to thisIn the context of the sharp decline in the order demand for heparin API in the world, heparin** has also decreased at the same time, further weakening the profitability of enterprises.
Heparin is a natural anticoagulant substance in animals, mainly extracted from the mucosa of the small intestine of pigs. Judging from the average price trend, since 2023, the average unit price of heparin exports has also hovered at a historical low.
According to customs statistics, the average export of heparin in the third quarter decreased by 4% compared with the second quarter, and the selling price of heparin products in the third quarter was not significantly affected by the decline in crude products. In the fourth quarter, the impact of crude product price reductions was quickly passed on to heparin products, and the average export of heparin fell by as much as 41% compared with the third quarter.
Ping An** research report also said that heparin** has fallen rapidly, and the level of heparin** in 2018 has been the same, and it is in the endpoint range of the second round of heparin cycle.
Affected by the decline of heparin**, the performance of heparin-related enterprises such as Changshan Pharmaceutical and Jianyou Co., Ltd. has taken the lead in "exploding".
Previously, Jianyou Co., Ltd. announced that the amount of inventory price decline provision to be made in 2023 is about 1 billion yuan to 1.2 billion yuan, which is expected to lead to a decrease of 8% in the company's net profit attributable to the parent company500 million to 10200 million yuan.
Affected by the decline in the revenue of the main heparin preparations and raw material products, Changshan Pharmaceutical expects the net profit loss attributable to shareholders of listed companies to be 1 billion yuan to 1.2 billion yuan in 2023, turning from profit to loss year-on-year.
For Hepalink, the decline in raw materials** also led to the impairment of some of its heparin products in the heparin industry chain inventory in the fourth quarter of 2023. To this end, Hepalink's 2023 provision for inventory decline is 7500 million yuan to 9500 million yuan, which is expected to lead to a decrease of 6 percent in net profit attributable to the parent company3.8 billion to 80.8 billion yuan.
Overall, in the context of the downturn in the heparin industry, Hepalink's pharmaceutical preparations and API businesses have both suffered heavy blows, resulting in a rapid change in the company's performance.
The company expects a net loss attributable to the parent company of 92.4 billion to 64.7 billion yuan, deducting non-net loss of about 92.1 billion to 64.4 billion yuan, all of which turned from profit to loss year-on-year, which is also the first loss of Hepalink in the past 6 years.
According to the financial report, from 2018 to 2022, the company's net profit attributable to the parent company was 64 billion yuan, 106 billion yuan, 102.4 billion yuan, 24.1 billion yuan, 72.7 billion yuan.
Get involved in the ghost story of electric fraud, and the business "makes matters worse".
In addition to the above factors, the company was also subjected to a huge amount of telecom fraud, which made the company's operation "worse".
Earlier this year, Hepalink announced that its wholly-owned subsidiary, Techdow Pharma Italy S., announced that the company's wholly owned subsidiary, Techdow Pharma Italy Sr.l.(Tiandao Italy) is suspected of being involved in telecom fraud by a criminal group, involving an amount of about 1,170 million euros (about 91.8 million yuan), which can be called the largest telecom fraud case in the history of A-shares.
After the incident broke out, it aroused widespread attention, and it subsequently received letters of concern and inquiries from regulators and exchanges.
Regarding the details of the telecom fraud, Hepalink disclosed in the announcement of the reply to the inquiry letter that the criminals sent emails to the general manager of the Italian subsidiary by forging the email addresses of the company's executives, external lawyers and auditors, and set up ** on the grounds that the company was in a highly confidential merger and acquisition, so that the general manager of the Italian subsidiary mistakenly believed that the matter was true and avoided the company's internal fund payment process according to the requirements of the criminals, and paid him a total of more than 1,170 euros.
At present, the case is still under investigation, and the final outcome cannot be confirmed. However, judging from the performance forecast, the company intends to recognize the relevant amount in 2023 in accordance with the corresponding accounting standards, and the impact amount is expected to be between 9 million euros and 11.74 million euros.
In the face of such a large capital hole, if it really cannot be recovered in the later stage, this will be even worse for Hepalink, whose performance is under pressure.
In addition, Hepalink also mentioned that the joint venture HighTide Pharmaceuticals (HK02511) will be listed at the end of 2023, and its valuation will increase and the fair value of financial liabilities will further change in the fourth quarter, resulting in further expansion of the company's investment losses, which is subject to the auditor's confirmation opinion.
Author: Hong Xiaodou.