On December 11, 2024, Northeast Pharmaceutical issued an announcement stating that Fangda Steel, the controlling shareholder, plans to increase its holdings of the company's shares within 6 months, with an amount not less than 75 million yuan and no more than 150 million yuan.
Now that there are only two days left before the deadline, this plan to increase its holdings is in an embarrassing situation - the actual completion rate is less than one-tenth, exposing the financial difficulties behind the major shareholder Fangda Steel.
The progress of share increase has been slow from "coordinated arrangement" to loan adjustment
Fangda Steel's performance is puzzling. On March 12, 2025, Northeast Pharmaceutical issued an announcement stating that the period of increase in holdings was over half but it was not implemented, and the reason was attributed to "its own overall arrangements." A month later, on April 16, Fangda Steel only increased its holdings by 1.5175 million shares for the first time, spending about 7.89 million yuan, completing only 10.5% of the minimum commitment amount.
It is worth noting that there are also variables in supporting bank loan commitments. The original one-year loan was adjusted to a three-year loan, and as of the time of the announcement on April 16, the loan amount of 108 million yuan of Industrial Bank Nanchang Branch was still in the "planned provision" state, indicating that the funds have not yet been in place. In the past two months since then, Northeast Pharmaceutical has not disclosed any progress in increasing its holdings, and the minimum commitment of 75 million yuan is almost impossible to be completed on schedule.
The capital chain alarm goes from overdue trading to judicial enforcement
Why is Fangda Steel difficult to fulfill its promise? Public information reveals multiple crises in its capital chain:
On the Shanghai Bill Exchange, Liaoning Baishahe Industrial, a subsidiary of Fangda Steel, has experienced commercial bill overdues for many consecutive months, with the current overdue balance reaching 1.677 million yuan. Tianyan Check data shows that many of its subsidiaries are involved in judicial disputes - Liaoning Baishahe Industrial has been executed for 717,000 yuan since November last year; Liaoning Baishahu Industrial has not only restricted consumption, but the current amount of execution is as high as 12.99 million yuan; Lanzhou Fangda Carbon Real Estate and Shengjing Fangda Real Estate have been executed records of more than one million yuan this year.
These "bleeding points" together outline a picture of tight funds: As a non-listed company, Fangda Steel lacks public financial reports, but the frequent commercial bill breach and judicial enforcement of subsidiaries have exposed liquidity crises. This may explain why the bank credit is weak but the parent company may have to prioritize debt risks.
The contrast between the stable business of pharmaceuticals and the shareholders' dilemma
What is quite dramatic is that Northeast Pharmaceuticals' own business performance is outstanding. According to the 2024 annual report, the company's net profit attributable to shareholders increased by 14.34% to 410 million yuan, and cash flow increased by 29.32% to 759 million yuan, achieving counter-trend growth through centralized procurement strategies and overseas expansion.
Recently, it acquired Dingcheng peptide source and entered the cell therapy track, and DCTY1102 injection has obtained clinical license.
This "dual world of ice and fire" between the main enterprise and the controlling shareholder highlights the priority contradiction in resource allocation within the group.
Debt pressure on real estate and other sectors under Fangda Steel is dragging down its commitment to increase holdings of high-quality pharmaceutical assets. The focus of market attention has shifted from increasing holdings itself to the assessment of the group's overall financial health. As the deadline approaches, investors need to be more wary of the possible conductivity risks that listed companies may arise from shareholders.
