Northeast Pharmaceutical’s cash wall gave out red envelopes to employees, a shocking scene comparable to that of Fangda Group

Financial website reported on January 10 that the financial website today discovered a set of pictures of Northeast Pharmaceutical issuing red envelopes in Moments and Weibo.

Northeast Pharmaceutical Red Envelope Distribution Site

According to the picture, there is a cylinder made of 100 yuan in cash, a long table next to it, and a long table at the red envelope distribution site. A wall of RMB cash appears in front of them, and its momentum is comparable to that of Fangda Group last year. It is worth noting that the slogan "Release the vitality of mixed-ownership reform and fight for 15 billion" is printed on the background board of the scene. The theme of the ceremony is also marked below - the 2019 Northeast Pharmaceutical Employee Red Envelope Distribution Ceremony. Regarding this matter, the financial website called the securities affairs representative and board secretary of Northeast Pharmaceutical, but no one answered the phone after repeated calls.

Red envelope distribution site

This reminds financial websites of the grand occasion of Fangda Group’s 500 million “cash wall” giving out red envelopes in January last year.

At the end of January 2018, a video of the "cash wall" of Fangda Group Jiugang went viral on the Internet. In the video, there were stacks of "cash wall" made of hundreds of dollars on the red carpet. A banner was hung that read "Sincere thanks to Chairman Fang Wei for his deep love for Jiugang employees."

According to media verification at the time, Fangda Group distributed cash red envelopes to all employees of the group’s companies. The average employee of Jiugang was 50,000 yuan, and the number of employees in Jiugang was about 10,000. The cash red envelopes distributed amounted to 500 million yuan. In addition to the cash red envelopes distributed by Fangda Group to JISCO, which is widely circulated on the Internet, Fangda Group also distributed cash red envelopes to its subsidiaries such as Fangda Special Steel and Fangda Carbon, totaling more than 1 billion yuan, with an average of about 40,000 yuan per capita.

Fangda Group’s red envelope distribution site

Fangda Group’s red envelope distribution site

In fact, the major shareholder of Northeast Pharmaceutical is also Fangda Group. In 2018, Northeast Pharmaceutical launched its mixed-ownership reform, and Fangda Group invested 1.2 billion yuan to become the company's largest shareholder.

And behind Northeast Pharmaceutical's "trench" move, the company has just recently received a regulatory letter because nearly 200 million in accounts receivable may have been wasted.

On December 12, 2018, Northeast Pharmaceutical announced in the "Announcement of Resolutions of the Sixth Meeting of the Eighth Board of Directors" that Shanghai Hanfei Biochemical Technology Co., Ltd., Shanghai Donghan Enterprise Development Co., Ltd., and Shanghai Zhiduoxing Industrial The three companies of the Co., Ltd. have accrued bad debts for accounts receivable totaling nearly 200 million yuan, which was reviewed and approved at the shareholders' meeting held on December 27, 2018.

In this regard, on December 15, 2018, the Corporate Department of the Shenzhen Stock Exchange issued a letter of concern to Northeast Pharmaceutical on the necessity and rationality of the above-mentioned large bad debt provisions, and requested your company to Reply before December 19, 2018. However, despite repeated urging from the Shenzhen Stock Exchange, Northeast Pharmaceutical still responded as late as January 3, 2019.

In response, the Corporate Department of the Shenzhen Stock Exchange issued Supervisory Letter No. 1 of 2019 to Northeast Pharmaceutical and stated that its above-mentioned behavior violated the provisions of Articles 2.16 and 17.1 of the "Stock Listing Rules" . It is hoped that they will comply with relevant regulations, fulfill their information disclosure obligations truthfully, accurately, completely, timely and fairly, and prevent such incidents from happening. ”

Faced with the inquiry letter from the Shenzhen Stock Exchange, Northeast Pharmaceutical still delayed its response for more than two weeks after repeated urging.

For the listed company Northeast Pharmaceutical, the capital of over 100 million yuan is , and it is not a decimal number. Data shows that the net profit in the first three quarters of 2018 was 157 million yuan, and the full-year net profit in 2016 and 2017 was 119 million yuan and 23.79 million yuan respectively.

I don’t know what to face. With huge accounts receivable and provision for bad debts, where does Northeast Pharmaceutical get the confidence to pay dividends this time?

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