Stock Abbreviation: Qianhong Pharmaceutical
Stock Code: 002550
Changzhou Qianhong Biopharma Co., Ltd. (518 Yunhe Road, Xinbei District, Changzhou) is issuing convertible bonds to unspecified objects and listing them on the main board.
1. Statement
The China Securities Regulatory Commission and the exchange's decisions or opinions regarding this issuance do not guarantee the authenticity, accuracy, or completeness of the application documents and disclosed information, nor do they provide substantive judgments or guarantees regarding the issuer's profitability, investment value, or investor returns. Any contrary statements are false representations. According to the Securities Law, after securities are legally issued, changes in the issuer's operations and earnings are the issuer's responsibility. Investors should independently assess the issuer's investment value and make their own investment decisions, bearing the investment risks arising from changes in the issuer's operations and earnings or fluctuations in securities prices.
1.1 Major Matters Notice
Investors are particularly advised to carefully read the main content of this prospectus before making investment decisions and pay special attention to the following important matters.
1.1.1 Credit Rating of the Convertible Bonds
The convertible bonds issued by the company have been rated by China Chengxin International Credit Rating Co., Ltd., which issued a credit rating report indicating that the credit rating of these convertible bonds is AA, and the company's entity credit rating is also AA. After the bonds are listed, China Chengxin will conduct regular or irregular follow-up ratings on the credit status of these bonds and issue follow-up rating reports. If external operating conditions, the company's situation, or changes in rating standards lead to a downgrade of the credit rating of these convertible bonds, it will increase investment risks for investors and may affect their interests.
1.1.2 Guarantee Matters
The issuance of convertible bonds to unspecified objects is not secured. If significant negative events occur during the bond's duration that impact management and repayment capabilities, the lack of guarantees may increase repayment risks for these convertible bonds.
1.1.3 Participation of Major Shareholders
According to the Securities Law and relevant regulations, the company's controlling shareholders, actual controllers, natural person shareholders holding more than 5%, directors, and senior executives have provided subscription commitments related to this issuance of convertible bonds to unspecified objects. Specific details can be found in Section 4 of this prospectus.
1.1.4 Special Risk Notice
Investors are advised to read the full text of "Section 3 Risk Factors" in this prospectus carefully and pay special attention to the following risks:
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Risk of Global Heparin Market Fluctuations The heparin raw material business is significantly affected by industry cycles due to fluctuations in the global economy, terminal clinical demand, and regulatory policies. The average monthly export price of heparin in China reached USD 15,849/kg in June 2021, but prices have since declined to USD 4,805/kg by October 2023. Continued low prices or volatility in the heparin market may slow revenue growth or even lead to declines.
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Risks from Pharmaceutical Industry Policy Reforms The pharmaceutical industry faces risks from increasing regulatory scrutiny and policy changes, which may affect the company's market share and operational performance if its main products fail to win bids in centralized procurement.
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Risk of Fluctuations in Gross Profit Margin The company's gross profit margin has fluctuated due to raw material price changes and market competition. Significant increases in raw material costs or declines in product prices could lead to reduced gross profit margins.
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Risks of Fundraising Projects Not Being Implemented Smoothly The company plans to use RMB 410 million for innovative drug research and development projects, which are subject to various risks, including technological challenges and clinical trial failures.