Fosun Pharma announced that Shanghai Fosun High-Tech Co., Ltd., the controlling shareholder of the company, intends to reduce its A shares by no more than 3% of the company's total share capital through centralized bidding and block trading, that is, according to the company's total share capital as of September 2, 2022, it will not exceed 80,089,700 shares. So today, Bian Xiao is here to sort out the reduction of Fosun Pharma. Let's have a look!

A-share prices fell more than 60%, while Hong Kong stocks hit a two-year low.

On September 5, Fosun Pharma's A-share volume fell, and its share price hit a new low of nearly one and a half years. At the close, Fosun Pharma A shares reported 36. 19 yuan/share, down 65.438+00.00%, with a turnover rate of 2.75% and a turnover of 2.029 billion yuan. Fosun Pharma H shares closed at HK$ 265,438+0.85 per share, down 65,438+02.948%, with a turnover rate of 3.44%, with a turnover of 422 million yuan, a two-year low. The total market value of Fosun Pharma A+H is close to 90 billion yuan.

From the historical performance, Fosun Pharma's A-share price hit a record high of 90.50 yuan on August 5, 20021,but then entered a downward channel. As of the close of September 5, Fosun Pharma's A-share price fell by more than 60% from the high point.

After-hours statistics show that on September 5th, Fosun Pharma suffered a net sale of RMB 654.38+0.06 billion for the seats of two institutions, RMB 65.6762 million for the seats of Shanghai Stock Connect, and a large purchase of RMB 43.4505 million for Shenwan Hongyuan Securities Co., Ltd., Yanchang Middle Road Securities Business Department of Shanghai Jing 'an District and First Securities Business Department of East Ring Road of Lhasa of Oriental fortune securities Co., Ltd..

In the news, on the evening of last Friday (September 2), Fosun Pharma announced the plan for controlling shareholders to reduce their shares. Fosun Hi-Tech, the controlling shareholder of the company, intends to reduce its holdings of A-shares not exceeding 3% of the company's total share capital through centralized bidding and block trading. According to the company's total share capital as of September 2, 2022, that is, no more than 80,089,700 A shares, the reduction price is determined according to the market price.

Among them, the reduction of A shares by centralized bidding method does not exceed 65,438+0% of the company's total share capital, that is, it does not exceed 26,696,600 A shares according to the company's total share capital as of September 2, 2022. This reduction can be made after 65,438+05 trading days from the date of announcement, and the planned reduction period is from September 27, 2022 to March 26, 2023 (inclusive).

If the A shares are reduced by 2% of the company's total share capital through block trading, it will not exceed 53,393, 1 0,000 A shares according to the company's total share capital as of September 2, 2022. This reduction can be made after 3 trading days from the date of announcement, and the planned reduction period is from September 8, 2022 to March 7, 2023 (both days inclusive).

Since listing, the controlling shareholder has reduced its holdings for the first time.

It is worth noting that this is the first time that Fosun Pharma has been reduced by its controlling shareholder since its listing, and this reduction is not an unusual high sale, but a cash-out after its share price has fallen by 60%, which is rare among A-share listed companies.

For the reasons for the reduction, Fosun Hi-Tech said in the announcement that it was "the need of its own business plan".

Fosun Hi-Tech is owned by Fosun International 100% listed in Hong Kong, and Fosun International is the holding platform of the whole complex Galaxy. According to the interim report of Fosun International, in the first half of 2022, the total assets of Fosun International were 849.685 billion yuan, of which the total liabilities reached 65165438+57 million yuan, the debt ratio was as high as 76.64%, the current liabilities reached 375.395 billion yuan, the short-term loans1236.92 million yuan, and the monetary funds in the account were 6544.

Moody's, an international rating giant, downgraded the senior unsecured debt rating of bonds issued by Fosun International from Ba3 to B 1 because Fosun's liquidity at the holding company level is weak, and the cash held by the holding company is not enough to cover the short-term debts due in the future 12 months. Moody's predicts that Fosun will expand the scale of asset sales to repay debts due.

In order to release the debt pressure, since 2022, many galaxies have frequently reduced their holdings and cashed out.

For example, on May 3 1, Fosun International announced a clearance to reduce its holdings of Tsingtao Brewery H shares; On June 16, Fosun International significantly reduced its holdings of Zhongshan Public, and plans to reduce its holdings by 29,502,200 shares, with cash of about 250 million yuan; On August 27th, Hainan Mining announced that Fosun Investment, the company's controlling shareholder and concerted action, plans to reduce its holdings by more than 6 1 10,000 shares, and plans to cash out about 500 million yuan.

At the same time, Fosun Pharma also launched a new round of fixed increase in July, issuing 654.38+007 billion A shares at the issue price of 42 yuan/share, raising a total of 4.484 billion yuan. However, according to the fixed increase plan, only 654.38+0.26 billion yuan is used to supplement the working capital.

This time, Fosun Hi-Tech reduced its holdings of Fosun Pharma, which is also widely regarded by the market as a measure for Fosun to reduce its debt pressure.

Many star fund managers reduced their holdings of Fosun Pharma.

As a domestic pharmaceutical giant, Fosun Pharma's performance in the first half of the year was not satisfactory. In the first half of this year, Fosun Pharma's operating income was 265.438+34 billion yuan, a year-on-year increase of 25.88%; The net profit attributable to shareholders of listed companies was 65.438+0.547 billion yuan, down 37.67% year-on-year. The decrease in profit was mainly due to the decline in the share price of Biotech invested by Fosun Pharma (from the highest of 457.93 USD/share to 143 USD/share at the end of the reporting period).

Fosun Pharma said that China's pharmaceutical industry as a whole is in an accelerated transition period, and the pace of industrial restructuring has accelerated. With the normal operation of quantity procurement and the expansion of products, the profits of generic drugs are narrowing, and the growth of revenue side is also facing greater challenges.

According to Wind statistics, by the end of the second quarter of 2022, * * had a total of 35 1 fund holding Fosun Pharma, with a total holding of about 86.9303 million shares, which was about 36% lower than the 1.358027 million shares at the end of the second quarter of 2026.

Specifically, many star fund managers reduced their holdings of Fosun Pharma in the first half of this year.

For example, Qihe and Yang Zongchang's Yifangda New Silk Road and Sun Wei's Dongfanghongyuan cleared Fosun Pharma in the first half of the year, reducing their holdings by 272,800 shares and 3,365,438+10,000 shares respectively. By the end of the semi-annual report in 2022, Fosun Pharma withdrew from the shareholding list of the two funds; In addition, Tian Hanqing and Xu Shuaiyu's Huatai Bairui increased their holdings quantitatively, and Fang Yuhan reduced their holdings of 63,000 shares and 665,438+07,000 shares respectively.