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H Shares Were Listed On The Eve Of Being Reported By &Nbsp By Huarun;

2011/5/18 9:09:00 43

Listing Report Speculation

It is expected to be on the main board of the Hongkong Stock Exchange on Friday.

list

The Shanghai medicine [19.91 -0.75% shares of Trading (H share code: 02607) yesterday (May 17th) suddenly exposed the "annoyances" reported by Huarun, the competitor of the same industry. The cause of the incident was a letter of complaint from Anhui Huayuan, a wholly owned subsidiary of Huarun group.


According to the copy of the letter received by the media, the letter was issued by the Huayuan Pharmaceutical Limited by Share Ltd of Anhui, and the company seal was made and the recipient was the Hong Kong stock exchange.

SFC

The complaint is mainly about the disputes between Anhui Huayuan and Shanghai new pioneers and the two companies of Hua Kang medicine.


Yesterday, the reporter contacted Li Yuan, general counsel of Anhui Huayuan.

Li Li said he had received a call from the Hong Kong stock exchange.

And asked whether the evidence was conclusive, he gave an affirmative reply, saying that "Shanghai medicine is expected to receive the Hong Kong Stock Exchange's inquiry in the near future".


For Huarun's reporting behavior, Shanghai medical side told reporters, "this is the opponent's malicious speculation."


Drug: malicious speculation by opponents


Public information shows that the new pioneer of Shanghai is wholly owned by Shanghai pharmaceutical parent company, and is currently entrusted by the Shanghai pharmaceutical company to manage the listed companies.

Hua Kang, mentioned in another report letter, is also wholly owned by the parent company.


The question of Anhui Huayuan is mainly focused on three problems: first, the new pioneer and a pharmaceutical produced by Hua Kang claimed that the raw materials came from Japan, but they have not been able to provide relevant supporting documents.

Second, the report clearly pointed out that the product received several complaints, and there was a serious quality problem.

Anhui Huayuan, the distributor of the product, filed a complaint with the Anhui court because of its failure to negotiate with the new pioneer and hukang. The court ordered the freezing of property and bank accounts of 39 million 560 thousand yuan jointly last month.


For the reporting side's words, Shanghai medical secretaries staff land told reporters: "at this stage, the drug side is actively checking the situation, and the relevant results will be released to the outside world."


He also pointed out that

HKEx

And the SFC has not yet contacted the matter and the drug.

The report that the subsidiary was reported by competitors was just hit 3 days before landing on the Hong Kong stock market. The land said, "it can only be said that the opponent's malicious speculation, and the details of other processing are temporarily inconvenient to be announced."


Reporters then called Huarun group public relations department, but as of this newspaper, the other side has not yet responded.


Huayuan: new pioneer default triggers disputes


According to Li Li, Anhui Huayuan and new pioneers have been good trading partners.


Li Li pointed out in the blog: "in September 20, 2004, Hua Yuan and the new Pioneer Co signed the general distribution agreement on ceftie.

In the past two years, the new pioneer sold only 73480 pieces of cefotaxime product (1g specification), and after many efforts, only 1 million 900 thousand times less than two years from September 2004 to June 2006.


"But the new pioneers are looking for distributors."

Li Li said that the former head of the new Pioneer Co violated the aforesaid agreement and signed a "product processing and general agency agreement" on cefotaxime with Beijing Fahrenheit company.

In September 2008, Anhui Huayuan filed a lawsuit against the intermediate people's Court of Fuyang.

In November 24, 2009, the Anhui Provincial Higher People's court made a retrial decision and decided that the new Pioneer Co would default and pay liquidated damages.


The default is not yet paid, and the new pioneer leader is "double regulated" because of the violation.

In January 2010, at the cost of new liquidated damages, Huayuan offered a renewal of 5 years' total sale with the new pioneer at the cost of the new leader.


After the renovation, the honeymoon period lasted only one year.

At the beginning of 2011, the NDRC significantly reduced the price of separate varieties. The price of cefotaxime, a new pioneer 1g, dropped from 99.5 yuan to 53.4 yuan.

Huayuan has asked the new pioneer to reduce the price of goods, but it has not been successful.


Because the two sides failed to talk about the price, Huayuan has been under pressure to pay no new vanguard.

The new pioneer sued the Shanghai local court for a breach of the Huayuan contract and frozen the cash account of Huayuan on the basis of compensation for breach of contract damages of about 96 million yuan, which seriously affected the day-to-day operation of Anhui Huayuan.

So Huayuan began to organize counterattack before he had the initial letter of complaint.


In addition, the quality of products may be a problem, but also one of the reasons for Anhui Huayuan.

According to Li Li, Anhui Huayuan received many reports of adverse reactions this year.


However, Li Li's statement has not yet been confirmed by Shanghai's medicine.


Anhui Huayuan report letter content


Involve falsely reporting raw material sources


The new pioneers and ceftriaxone produced by Hua Kang claimed that their raw materials came from Japan, but they have not been able to provide relevant supporting documents.


Serious quality problems


Several distributors complained that SPI did not provide the instructions required by the State Administration of pharmacy, and suspected quality problems.


The company's property was frozen.


Anhui Huayuan filed a lawsuit against the Fuyang intermediate people's Court of Anhui, and was awarded the order by the Anhui provincial high court in April 1st this year to freeze the new pioneer and hukang property and bank accounts.


 
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