After China’s richest man Zhong furtively resigned from his position as chairman of Wantai Bio for “personal reasons”, Wantai’s share price plunged 9.66% the next day, and its market value evaporated RMB 12.054 billion in a single day. According to the news, Qiu Zixin, who took over the post of chairman, is a veteran of Wantai and one of the promoters of the company’s IPO. Some investors believe that Qiu Zixin, who has a chemistry degree from Xiamen University, may be more beneficial to the company’s future development than Zhong Fur Furao, who does not have any medical-related background.
According to the Central News Agency, the sudden resignation of China’s richest man, Glittering Zhong, from the board of directors has caused the share price of Wantai Bio to plummet. The news said that the founder of Nongfu Shanquan, Glittering Zhong, was listed as the richest man in China and Asia by Fubishi for his shares in two listed companies, Nongfu Shanquan and Wantai Bio. After he resigned from his post as chairman of Wantai Biotech on the 13th, the company’s shares plunged on the 14th, with market value evaporating by 12.054 billion yuan.
Glittering Zhong, who started out selling water, was listed as the richest man in China and Asia by Forbes on the 1st for holding shares worth $78.6 billion in two listed companies, Nongfu Shanquan and Wantai Bio. The report said that the company had previously invested in the research and development of the 2019 coronavirus disease (COVID-19) vaccine, but now the progress is lagging behind its counterparts, and Zhong furtively resigned from the company, triggering market concerns.
The report said that Wantai Biological 13 evening announcement said that according to the company’s business development plan, in order to implement the vaccine industry base construction project, the company intends to sign a real estate sale and purchase contract with Rogeland (Beijing) Electric Co. The investment project is for the construction of “nasal spray new crown vaccine” production line, the total amount is 469 million yuan. The announcement also said that the nasal spray vaccine developed by the company is still in the phase II clinical trial stage, “the research and development progress is not as good as the peers”. If the future product cannot be successfully developed or the market space is limited after successful development, the company may face the adjustment of production plants and products, which will have a certain impact on the company’s operating results.
The latter part of this announcement also mentions personnel changes, saying that Zhong furtively resigned from the position of director and chairman of Wantai Bio for “personal reasons” and will no longer hold any position in Wantai Bio after his resignation, and Qiu Zixin, general manager of the company, will take over the position of chairman. Glittering Zhong holds 75.15% of the shares directly and indirectly, and is still the actual controller of the company.
According to the news, furtively glittering Zhong and Wantai Biologicals are related to a merger and acquisition case in 2001. The company was listed on the Shanghai Stock Exchange in April 2020 as the “first domestic HPV vaccine”. At the beginning of the listing, it had created 26 consecutive stop boards.
For the reason of Zhong furtively resigning, the news quoted the relevant person from the director’s office of Wantai Bio as saying that it was his personal choice and he would no longer be involved in the management and operation of the company thereafter. However, as Zhong Furao is still the actual controller of the company, his participation is still needed in all major affairs of the company in the future.
According to sources, Qiu Zixin, who took over the chairmanship, is a veteran of Wantai and one of the promoters of the company’s IPO offering. Some investors believe that Qiu Zixin, who has a chemistry degree from Xiamen University, may be more beneficial to the company’s future development than Zhong Fur Furao, who does not have any medical-related background.
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