On the evening of July 13th, Kanghua Biotechnology (300841) announced that its controlling shareholder and actual controller, Wang Zhentao, is planning to change the company's control rights, which may lead to a change in the company's controlling shareholder and actual controller.

Upon application to the Shenzhen Stock Exchange, the company's stock will be suspended from trading starting from Monday, July 14th, with an expected suspension period of no more than 2 trading days.

It should be noted that before the suspension, Kanghua Biotechnology saw a significant increase in trading volume on July 11th, with the latest stock price reaching 72.01 yuan per share.

According to the data, Kanghua Biotechnology is mainly engaged in the research and development, production, and sales of human vaccines. The company has obtained drug registration certificates for vaccines such as freeze-dried human rabies vaccine (human diploid cell) and ACYW135 meningococcal polysaccharide vaccine.

Kanghua Biotechnology's net profit has been declining for three consecutive years. In the first quarter of this year, Kanghua Biotechnology achieved a revenue of approximately 138 million yuan, a year-on-year decrease of 55.7%; The net profit attributable to the parent company was approximately 20.71 million yuan, a year-on-year decrease of 86.15%. Kanghua Biotechnology stated that the decline in revenue in the first quarter was due to a decrease in the company's overseas authorization and vaccine sales revenue during the reporting period

It should be noted that recently, shareholders of Kanghua Biotechnology began to liquidate and reduce their holdings.

On July 1st, the company announced that the shareholder Ningbo Shengdao Venture Capital Partnership Enterprise (Limited Partnership) (referred to as "Ningbo Shengdao") and its concerted action party Zibo Taige Yingke Venture Capital Center (Limited Partnership) (referred to as "Zibo Taige"), who hold a total of 3.1658 million shares of the company (2.4362% of the total share capital after excluding the company's repurchase special account shares), plan to reduce their holdings of the company's shares by no more than 3.1658 million shares (i.e. no more than 2.4362% of the total share capital after excluding the company's repurchase special account shares) through centralized bidding and/or block trading within three months from the date of announcement disclosure.

According to the data, Wang Zhentao, the actual controller of Kanghua Biology, enjoys the reputation of "Wenzhou Shoe King". Wang Zhentao currently owns another A-share listed company, Aokang International (603001).

Last May, Kanghua Biotechnology announced that its actual controller and chairman, Wang Zhentao, had received an administrative penalty decision. Give a warning to Wang Zhentao and impose a fine of 3 million yuan, including a fine of 1 million yuan as the directly responsible supervisor and a fine of 2 million yuan as the actual controller.

Kanghua Biotechnology stated that Wang Zhentao, the actual controller and chairman of Kanghua Biotechnology, is also the actual controller and chairman of Zhejiang Aokang Footwear Co., Ltd. The subjects involved in the above administrative penalty decision are Wang Zhentao, Aokang Shares and their related personnel, and have nothing to do with Kanghua Biology. It has no direct impact on Kanghua Biology's normal business activities and financial status.

As of the end of the first quarter of this year, Wang Zhentao directly holds 14 million shares of Kanghua Biology and serves as the chairman of the company. He will receive a salary of 2.375 million yuan at Kanghua Biology in 2024.

Source: Shenzhen Business Daily · Reading and Creativity