Yuandong Bio 9 major extension service providers wrote off.

Pharmaceutical Network August 11th, the second break through the customs section of the board, Chengdu Yuandong Biopharmaceutical Co., Ltd. (referred to as "Yuandong Bio") was asked about the fact that seven major promotional service providers have been written off.
a total of seven major extension providers had been written off as of April 30, 2020, according to Yuandong Biological Response Letter.
seven companies are the top 20 major extension providers in the reporting period for Yuandong Bio.
companies that have partially written off even rank among the top five promotional service providers of Yuandong Bio.
reporter inquiry found that, in fact, in addition to the above seven extension service providers write off, Yuandong Bio 2017 the fifth largest extension service provider Hunan Macheng Pharmaceutical Consulting Services Co., Ltd., the second largest promotional service provider in 2016 Chengdu Tianfa Pharmaceutical Technology Co., Ltd. also carried out a write-off, write-off time of May 11 and June 16 this year, respectively.
end of July this year, a total of nine of the major promotional service providers disclosed by Yuandong Bio have been written off intensively.
as a generic drug company deeply affected by the two-vote system, Yuandong Bio's main extension service providers showed a series of strange phenomena: as soon as the promotion service company was established, it began to cooperate with Yuandong Bio.
co-operation that year became the main promotion service provider of Yuandong Bio, and some of its top five promotion service providers list.
these extension service providers completed the promotion task, and the assessment passed, but now a large number of write-off ... In response to the promotion of service providers related issues, the reporter contacted Yuandong biological aspects.
as of press release, Yuandong Biological did not respond.
9 service providers disappeared twice to break through the customs board, several inquiries in the process, Yuandong biological marketing services are one of the key issues.
, according to Yuandong Bio prospectines, promotional services mainly include academic promotion, information collection and market research, publicity materials production and other related services.
promotion service fee is mainly for the academic promotion fee, market research fee and material fee and other components generated in the marketing activities.
, promotional service charges account for the largest percentage of sales costs.
2017-2019, Yuandong's bio-promotion service fees were RMB202 million, RMB385 million and RMB490 million, respectively, accounting for 90.20%, 93.40% and 91.50% of the sales expenses for the year.
to the promotion of high service charges, Yuandong Biological explained that this is mainly due to the implementation of the two-vote policy, the company's distribution model from the original promotion of distribution dealers to distribution distributors.
the two-vote system, the promotion of distribution distributors at the same time assume regional, localized product promotion and distribution functions.
after the two-vote system, the distribution distributor only assumes the product distribution function, product marketing by the company to plan or arrange professional marketing service providers.
in the two impact of the board and released a number of versions of the prospectus, Yuandong Bio did not take the initiative to announce the specifics of each year's promotion service providers.
only after being questioned by the SSE, the specifics of the annual promotion service providers were disclosed, which also triggered the SSE's continuous inquiries.
the SSE Inquiry Note that "some of the promotional services that provided promotional services to issuers during the reporting period have been written off."
the issuer is requested to indicate the circumstances in which the promotional service provider that provided promotional services to the issuer during the reporting period has been written off, the reasons for the cancellation and whether there were any non-compliances in providing promotional services to the issuer.
, Yuan Dong Biological said that as of April 30, 2020, a total of seven promotional service providers had been written off, accounting for 16.67 percent of the number of major promotional service providers.
The seven cancellations are: Beijing Qingyu Zeran Biotech Co., Ltd., Harbin Shengmei Pharmaceutical Technology Co., Ltd., Chongqing Seth Ou Pharmaceutical Technology Co., Ltd., Chongqing Xiya Pharmaceutical Technology Co., Ltd., Shanghai Liz Pharmaceutical Technology Co., Ltd., Jinan Yuanqi Biotech Co., Ltd., Shenyang Judexin Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Shenyang Judexin").
reporter inquiry found that, in addition to the above seven promotional service providers, there are Yuandong Bio 2017 the fifth largest extension service provider Hunan Macheng Pharmaceutical Consulting Services Co., Ltd., the second largest promotional service provider Chengdu Tianfa Pharmaceutical Technology Co., Ltd. has also been written off.
these write-off extension providers are not insignificant downstream service companies.
Public information shows that Beijing Qingyu Zeran Biotech Co., Ltd. is the second largest extension service provider for Yuandong Bio 2017, Shanghai Liz Pharmaceutical Technology Co., Ltd. and Jinan Yuanqi Biotech Co., Ltd. are the third and fifth largest promotion service providers for Yuandong Bio 2018, respectively.
according to Yuandong Biological Response Letter, the above seven companies are mainly responsible for the company's products in The Beijing-Tianjin region, Heilongjiang Province, Chongqing City, Shanghai, Shandong Province, Liaoning Province and other regions of the marketing business.
part of the service provider signs "weird" reporter inquiry found that, in addition to the collective write-off is more abnormal, Yuandong biological most of the promotion service providers themselves are more abnormal.
the registration time of these companies is often very close to the time of yuandong biological cooperation, shareholder structure is extremely simple, shareholders are generally 1-2 difficult to query the relationship of natural persons.
as the third largest extension service provider of Yuandong Bio 2018, Shanghai Liz Pharmaceutical Technology Co., Ltd. was established on January 16, 2018.
in February 2018, the company began working with Yuandong Bio.
2018, Shanghai Liz Pharmaceutical Technology Co., Ltd.'s promotional service fee was 1.59536 million yuan, and in 2019 it was 4.4742 million yuan.
on December 31, 2019, Shanghai Liz Pharmaceutical Technology Co., Ltd.
to a question from the Shanghai Stock Exchange's Science and Technology Commission, Yuan Dong bio said the reason for the company's write-off was "intense competition in the regional market, the company's performance was less than expected, and operating pressure was greater".
2018 annual report of Shanghai Liz Pharmaceutical Technology Co., Ltd., the company pays social security for only two people.
Yuanqi Biotech Co., Ltd. is the fifth largest promotional service provider for Yuandong Bio in 2018 and was established on December 18, 2017.
January 2018, the company began working with Yuandong Bio.
2018 and 2019, the company's promotional service fees were $14.2908 million and $3.5325 million.
November 22, 2019, the company wrote off due to "intense market competition and less than expected growth."
Beijing Qingyu Zeran Biotech Co., Ltd. as the second largest promotional service provider for Yuandong Bio in 2017.
Beijing Qingyu Zeran Biotech Co., Ltd. was established on January 18, 2017, the day after the establishment of the company began to cooperate with Yuandong Bio.
2017-2019, as a promotional service provider for Yuandong Bio, Beijing Qingyu Zeran Biotech Co., Ltd. has a promotional service fee of 8.8226 million yuan, 12.7828 million yuan and 2.4811 million yuan, respectively.
14, 2020, Beijing Qingyu Zeran Biotech Co., Ltd. was written off.
Beijing Qingyu Zeran Biotech Co., Ltd. wrote off because "legal representative and shareholder Zhang Zhaolong is older, the market competition is fierce, the company's business shrinks."
of the nine cancellations, it is particularly noteworthy that Shenyang Judexin.
judexin was established on November 29, 2017.
2018, the company's promotional service fee is $4.5 million.
June 4, 2019, the company wrote off due to "intense competition in the market and greater operational pressure."
annual report submitted by the company shows that the number of social security contributions is zero.
day eye check data show that Shenyang Judexin contact number 024-871270 x x, the address of the enterprise announcement is located in Shenyang Faku County Faku Town.
However, the reporter inquiry found that a total of 84 Shenyang local companies published contact number with 024-871270 x x, the scope of business of these companies, the company situation and Shenyang Judexin is much the same, the company name is mostly a certain pharmaceutical technology Co., Ltd.
fact, Yuandong Bio's fourth largest promotional service provider in 2016 was the Shenyang branch of Jia fubao (Beijing) Information Technology Co., Ltd. ("Shenyang Jia fubao").
day eye check data show that Shenyang Jia fubao registered address is also located in Shenyang Faku County.
company's parent company's official website, Jiafu, shows that it is a one-stop corporate welfare cloud platform, the main business includes providing flexible benefits for employees, supplementary medical care, compensation, consulting training and so on.
addition, the cancelled promotional service provider Chongqing Seth O Pharmaceutical Technology Co., Ltd. was established on February 15, 2017.
year, the company's promotional service fee was $1.4762 million.
, however, the company was written off on May 10, 2018.
, Chongqing Xiya Pharmaceutical Technology Co., Ltd. was established on May 10, 2017.
2017 and 2018, as a promotional service provider for Yuandong Bio, the company's promotional service fees were RMB 5.5565 million and RMB 5.628 million, respectively.
write-off on October 30, 2018.
, Harbin Shengmei Pharmaceutical Technology Co., Ltd. was established on April 11, 2017.
2017 and 2018, the company's promotional service fees were RMB3.0143 million and RMB7.4629 million, respectively.
the company doubled its performance, the company chose to write off the company voluntarily the next year.
phenomenon of promoting service providers has also attracted the attention of the SSE Science and Technology Commission.
in response to the SSE inquiry, Yuan Dong Biological said that most of the company's main promotional service providers were established in 2016-2017, mainly with the gradual implementation of the two-vote policy throughout the country, some dealers gradually transformed to focus on marketing services.
company's main extension service providers focus on marketing services, with a number of pharmaceutical manufacturers to establish cooperative relations, not specifically for the company to provide services.
Yuandong Bio said that the company and the above-mentioned seven companies in the process of cooperation, seven companies have completed the promotion task in accordance with the promotion service agreement, assessment qualified.
reporter noted that Yuandong Bio 2017's largest promotional service provider Shanghai Hongzhao Marketing Services Co., Ltd. has also been questioned because of various anomalies.
, Shanghai Hongzhao Marketing Services Co., Ltd. is its fourth-largest marketing service provider, according to a prospectos from Nanjing Yuke Biopharmaceutical Group Co., Ltd., which had previously failed to make a sprint IPO.
time, some media found the company's registered address, found that the floor has been completely closed and is being renovated, has been renovated for half a year, the company is less likely to operate at that address.
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