Zhongyuan Concord terminates the acquisition of Clayson

Zhongyuan Concord terminates the acquisition of Clayson

On the evening of June 2, 2016, Zhongyuan Xiehe announced that after the “Weize Zexi” incident, affected by the immune cell industry policy, after careful study, the company decided to terminate this non-public offering and stop the acquisition of Shanghai Kelai. Johnson Biotechnology Co., Ltd. At the same time, Zhongyuan Concord said that in the short term, affected by the immune cell industry policy, the speed of the company's immune cell business will be affected to some extent. However, this business accounts for a relatively small part of the company's overall business and will not operate the company as a whole. The performance has a significant impact.

Zhongyuan Concord terminates the acquisition of Clayson

In addition, Zhongyuan Xiehe announced that due to the adjustment of national policies, the current environment of the immune cell therapy industry has undergone major changes, which has directly impacted the domestic immune cell industry in the short term, but in the long run, it has standardized the immune cell therapy industry. The entry barrier will help the overall regulation and healthy development of the immune cell industry. The company will also reasonably control the rhythm of the layout of the immune cell therapy and the speed of investment. The "Weize Xixi" incident will not affect the company's development strategy in the immunotherapy industry, and remains firmly optimistic about the development prospects of the immunotherapy industry.

At the same time, in the announcement, Zhongyuan Concord responded to the inquiry of the Shanghai Stock Exchange.

Previously, the Shanghai Customs Office stated in the inquiry letter that Zhongyuan Xiehe will provide 100% equity of its subsidiary Shanghai Zhicheng Biotechnology Co., Ltd. (hereinafter referred to as “Chengcheng Biological”) as pledge guarantee for Rongyuan Ruikang. The guarantee amount is 10.8. 100 million yuan. In this regard, the SSE requires additional disclosure of the specific agreement on the guarantee responsibility, combined with the operating performance and financial indicators of the company, indicating the specific impact that may be caused to the company's production and operation, performance commitments, etc. if the above-mentioned guarantee responsibility is fulfilled.

For the above questions, Zhongyuan Concord said that the M&A fund was established on December 2, 2015, with a duration of 1.5 years and expired on June 1, 2017. The total amount of the Zhicheng Biological Equity Guarantee is 1.08 billion yuan. As of May 30, 2016, the M&A fund has paid a total of RMB 978 million including equity transfer, capital increase, interest tax and management fees, and the book balance of the M&A fund was RMB 0.93 billion. As of now, the relevant guarantee responsibility has not been triggered. If the guarantee obligation is triggered after the M&A fund expires on June 1, 2017, the 100% equity of the company's holding of Chengcheng Bio may be used to pay the principal and intermediate income of the priority partner and the expected income according to the guarantee contract. . In 2015, Zhicheng Biotech's operating income was approximately RMB 249 million, accounting for 35% of the company's total operating income of RMB 709 million. The loss of the equity of Zhicheng Bio is expected to have a significant impact on the company's 2016 operating results.

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