* ST Zixin (002118) is a ginseng-based traditional Chinese medicine company, which was once the leader of the ginseng industry in Northeast China and a new star in China's capital market. However, since May 5 this year, its ** has been going down in a straight line, and as of June 15, its ** has been 30 days, and ** has also changed from 168 dollars dropped to 037 yuan, a drop of 7798%。Among these 20 trading days, 20 trading days are below 1 yuan, which meets the delisting criteria for the type of transaction, and the Shenzhen ** Exchange will announce the company's ** within a certain period of time, and there is no delisting treatment.
This also marks the first time that ST Zixin has been suspended at par value per share and delisted from "ginseng" since its listing in China. This is simply a great mockery, which makes the former Northeast "Sam King" extremely ridiculous. And this time, this is undoubtedly a huge blow to the more than 100,000 shareholders who hold shares in it. According to the data of the first quarter, by the end of March next year, *ST Zixin Company had a total of 100,726** vote holders, of which 99,999 were minority shareholders, accounting for 1999%。Those who hold ** will lose a lot if they can't sell it before May.
Why did ST Zixin end up like this? This phenomenon may be due to its large inventory.
ST Zixin (*ST), formerly known as Zixin Pharmaceutical Company, was founded in 2002 and is located in Liuhe County, Tonghua, at the foot of Changbai Mountain, is a pharmaceutical enterprise integrating pharmaceutical, scientific research, production and sales. The company uses local advantageous Chinese medicinal materials as raw materials to develop traditional Chinese medicine preparations with independent intellectual property rights - "Tongmai Tablets" and "Awakening Brain Reconstruction" capsules. Zixin Pharmaceutical officially entered the ginseng industry in 2009, and made great efforts in ginseng planting, processing and sales, and soon had the title of "Ginseng King".
However, Zixin Pharmaceutical's ginseng business not only did not generate profits for it, but also experienced financial difficulties. The root cause is that Zixin Pharmaceutical Co., Ltd. has too large strategic reserves of ginseng, so there is a large backlog of inventory. According to the annual report, the inventory amount of Zixin Pharmaceutical in 2016 was 267.3 billion, as of the end of 2022, the inventory amount was 757.7 billion, mainly under the forest, accounting for 7941% with an amount of 601.7 billion yuan.
Those inventories take up a lot of capital and are difficult to convert into cash. From 2020 to 2022, Zixin Pharmaceutical's inventory turnover rate is 20,000 days, 23,68421 days, 5454545 days, which greatly exceeds the industry average. This means that Zixin Pharmaceutical's inventory will take a long time to sell, and there is a danger that prices will rise.
However, Zixin Pharmaceutical's operating conditions have been declining, and it has suffered losses for three consecutive years, with a total loss of nearly 2.9 billion yuan. The company believes that the loss is mainly due to factors such as the hindrance of its main business caused by the epidemic, the decline in market share, and the lack of working capital. But in fact, Zixin Pharmaceutical Company has long had operational problems, and this outbreak is just an introduction.
It can be seen how tight Zixin Pharmaceutical's current financial situation is. By the end of 2022, the company owed 8,977 wages to its employees380,000 yuan, arrears of taxes and late fees 9,501070,000 yuan, and the amount of the loan in arrears (principal and interest) is 223.7 billion, which was sued by many creditors. Currently, the company's debt ratio reaches 9771% with a net worth of -30.1 billion, on the verge of bankruptcy.
Zixin Pharmaceutical has also said that the company's strategic storage of ginseng is mainly for its own development and the recovery of the ginseng industry, and if it is only for temporary profits, it will be very harmful to the company and the entire industry if it is sold on a large scale. At the same time, the company also said that it is actively adopting the strategy of "destocking and reducing debt" to alleviate the financing difficulties of the company, and at the same time, it will not have an adverse impact on the company's strategic reserves and the development of the industry.
However, such rhetoric did not convince investors that there was no hope of saving the company. Zixin Pharmaceutical received a document about the company from the China ** Regulatory Commission in early January 2022 due to a disclosure of information about the company, and the company is conducting further investigation into the company, and the final results have not yet come out.
Zixin Pharmaceutical's delisting journey has no room for redemption, which is the tragedy of the former Northeast "Samking", and it is also a painful experience.