Who Will Take Over? Hainanhaiyao's Second-Largest Shareholder Faces Contract Disputes, Over 98% of Holdings to Be Judicially Auctioned - Previous Auction Received No Bids

Deep News10-09

On the evening of October 8, Hainanhaiyao Co.,Ltd. (Shenzhen Stock Exchange: 000566) announced that due to a contract dispute enforcement ruling, shares held by the company's shareholder Shenzhen Southern Tongzheng Investment Co., Ltd. (hereinafter referred to as "Southern Tongzheng") will be subject to judicial auction.

Specifically, the Wuhan Intermediate People's Court (hereinafter referred to as "Wuhan Court") plans to conduct public judicial auctions on JD.com for 131 million pledged shares of Hainanhaiyao Co.,Ltd. held by Southern Tongzheng. The auctions are scheduled for October 15, 2025, from 10:00 AM to October 16, 2025, at 10:00 AM (excluding extensions), and November 6, 2025, from 10:00 AM to November 7, 2025, at 10:00 AM (excluding extensions). These shares represent 98.11% of the shareholder's total holdings in the company and 10.08% of the company's total share capital.

Public information shows that Southern Tongzheng is Hainanhaiyao Co.,Ltd.'s second-largest shareholder, currently holding 133 million shares, representing 10.28% of the company's total share capital. All of these shares have been pledged and frozen.

Hainanhaiyao Co.,Ltd. stated that given the judicial auction matter is still in the announcement phase, the auction results remain uncertain. The company will continue to monitor the progress of this auction and fulfill information disclosure obligations in accordance with relevant regulations in a timely manner. This auction will not result in changes to the company's actual control, nor will it adversely affect the company's production and operations.

It is noteworthy that the Wuhan Court previously conducted a public judicial auction on JD.com from 10:00 AM on September 22, 2025, to 10:00 AM on September 23, 2025, for 124 million pledged shares of Hainanhaiyao Co.,Ltd. held by Southern Tongzheng. According to the auction results displayed on the JD Judicial Auction platform, the share auction was unsuccessful due to no bids being submitted within the specified timeframe.

Background information shows that Hainanhaiyao Co.,Ltd., formerly Haikou Pharmaceutical Factory established in 1965, was listed on the Shenzhen Stock Exchange in 1994 and is a leading pharmaceutical enterprise in Hainan Province.

Regarding performance, Hainanhaiyao Co.,Ltd. is deeply mired in losses, with net profits attributable to shareholders of the listed company of -106 million yuan and -1.525 billion yuan in 2023 and 2024, respectively. In the first half of 2025, the company achieved revenue of 450 million yuan, a year-on-year decrease of 24.12%; net profit attributable to shareholders of the listed company was -158 million yuan, a year-on-year improvement of 20.97%.

In the secondary market, as of the close on September 30, Hainanhaiyao Co.,Ltd. rose 1.48% to 5.50 yuan per share, with a total market capitalization of 7.136 billion yuan.

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