Red Star Capital Bureau reported on October 15th that last night, Sinocell(688520.SH) disclosed a plan for a private placement, with the total amount of funds raised not exceeding 900 million yuan, which will be used entirely to supplement working capital.

　　On September 5th, the Shanghai Stock Exchange issued an inquiry regarding SinocellTech's private placement, requesting clarification on issues such as the company's increasing sales expenses, patient welfare and care programs, and external donations. Yesterday, SinocellTech released its response report.

　　Red Star Capital Bureau noticed that in recent years, Sinocell has expanded its product sales by providing subsidies to patients. On October 15, Sinocell SecuritiesThe Ministry responded to the Red Star Capital Bureau, saying that providing large subsidies to patients is a common practice in the industry and is beneficial for companies to promote their products.

　　Previously, Sinocell was embroiled in a controversy over medical insurance fraud. In response, Sinocell's securities department stated that while an employee had indeed been arrested, the company was not aware of the specific details. Currently, the company is not under investigation and has not engaged in medical insurance fraud.

The accumulated unrecovered losses amounted to RMB 3.863 billion.

Sales expenses increase year by year

　　According to the announcement of Sinocell, the total amount of funds raised in this private placement will not exceed 900 million yuan, and all of it will be used to supplement working capital after deducting the issuance expenses. The additional shares will be subscribed by the major shareholder Lhasa Alike. Lhasa Alike is the shareholding platform of Xie Liangzhi, the actual controller of Sinocell. Xie Liangzhi holds 60% of Sinocell's shares through this platform.

　　Sinocell said that as of June 30, 2025, the company's accumulated unrecovered losses had reached 3.863 billion yuan, and its debt-to-asset ratio had reached 97.03%.

　　Public information shows that in 2021, Sinocell launched its first commercial product - recombinant human coagulation factor VIII for injection (trade name: Anjiain®), a drug used to treat hemophilia.

　　From 2022 to 2024, Anjia's sales were RMB 1 billion, RMB 1.78 billion and RMB 1.89 billion respectively; during the same period, Sinocell's revenue was RMB 1.02 billion, RMB 1.89 billion and RMB 2.51 billion respectively.

　　However, Sinocell's progress in turning losses into profits is slow. From 2022 to 2024, the company's net profit was -520 million yuan, -400 million yuan, and 110 million yuan, respectively; in the first half of this year, it suffered a loss of 33.771 million yuan again.

　　The Red Star Capital Bureau noticed that Sinocell's sales expenses and non-operating expenses were relatively high.

　　From 2022 to the first half of 2025, Sinocell's sales expenses were RMB 260 million, RMB 440 million, RMB 690 million and RMB 420 million, respectively, and the proportion of total revenue increased from 25.88% to 43.38%; non-operating expenses were RMB 170 million, RMB 400 million, RMB 460 million and RMB 130 million, respectively, accounting for 16.6%, 21.43%, 18.17% and 13.1% of total revenue.

Expand sales by subsidizing patients, similar to "drug insurance conversion"

Response: This is a common practice in the industry

　　The ever-increasing sales expenses and non-operating expenses have attracted the attention of the Shanghai Stock Exchange. On September 5, the Shanghai Stock Exchange issued an inquiry regarding Sinocell's plan for a private placement, requiring Sinocell to explain the composition of the relevant expenses.

　　Yesterday, Sinocell released an announcement in response to inquiries from the Shanghai Stock Exchange. The Red Star Capital Bureau found that both sales expenses and non-operating expenses were related to the company's expansion of sales through patient subsidies.

　　Non-operating expenses mainly consist of drug and cash donations. In 2024, the company donated 456 million yuan. However, Sinocell emphasized that the donations are for public welfare purposes, used to care for and save hemophilia patients, and are not related to the company's product sales and do not come with any product sales conditions.

　　Of the sales expenses, service fees from professional institutions account for nearly 40%. These institutions carry out "patient welfare" and "patient care" activities for Sinocell.

　　"Patient Benefits" recruits members nationwide and provides insurance for members to purchase special medicinesMembers can obtain coverage for specific diseases and specific medicines. If they need related treatment, they can apply for compensation from the insurance company

　　This description is similar to the "drug-to-insurance" model, which is to package the cost of specific drugs into short-term health insurance and sell it to confirmed patients. The premium paid by the patient is equivalent to the purchase price of the drug, and the claim proceeds are equivalent to the drug purchase subsidy.

　　The announcement shows that among the professional institutions cooperating with Sinocell is a company called "Magnesium Health". In November 2023, the company was named by the Beijing Regulatory Bureau of the State Financial Regulatory Administration because its business was suspected of including "drug-to-insurance" business.

　　In response to the above issues, on October 15, the Red Star Capital Bureau contacted the securities department of Sinocell as an investor.

　　The other party explained that many hemophilia patients could not afford the high cost of buying medicines. If they did not provide assistance, the patients would die from the disease, and the company’s drug sales would not be able to start. Selling drugs through foreign aid is a common practice in the industry. Before Anjiayin was launched, Bayer, Baxter, and PfizerSimilar competing drugs all have subsidies. If the company does not participate in the subsidies, it will lack competitiveness in the market.

　　In August of this year, Sinocell was embroiled in a medical insurance fraud controversy. According to Jiemian News, Sinocell employees conspired with medical staff to contact hemophilia patients to seek medical advice and prescriptions at designated medical institutions even when they were not bleeding, thereby defrauding medical insurance funds of their out-of-pocket medication expenses.

　　In response to this, the aforementioned securities department staff said that some employees were indeed arrested, but the company was not aware of the specific details. The company has not been investigated and there has been no medical insurance fraud.

https://finance.eastmoney.com/a/202510153535147463.html