Home News The ghost of the Jiang family behind the Golden Mile virus case (Part 1) | Golden Mile Medical | New Corona Virus | Zhong Nanshan

The ghost of the Jiang family behind the Golden Mile virus case (Part 1) | Golden Mile Medical | New Corona Virus | Zhong Nanshan

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[The Epoch Times, January 20, 2022](Comprehensive report by Xu Yiyang and Li Siqi, reporters from the Epoch Times Special Department) Zhong Nanshan, an academician of the Chinese Academy of Engineering, who has been hailed by the CCP as “China‘s top epidemic prevention expert”, may not have thought that the Chinese No. Guangzhou Jinyu Medical Laboratory Group Co., Ltd. (“Jinyu Medical”), a leading tripartite medical laboratory enterprise, will “explode” recently – the regional leader of its wholly-owned subsidiary has been investigated by the authorities and taken coercive measures.

On January 12, the Public Security Bureau of Xuchang City, Henan Province issued a notice saying that Zhang Moudong, the regional head of Zhengzhou Jinyu Clinical Testing Center Co., Ltd. Behaviors in which coronavirus infection pneumonia spreads or poses a serious risk of transmission. On January 10, Zhang Moudong was suspected of a criminal offense, and was placed on file for investigation by the Public Security Bureau of Yuzhou City, Henan Province and took compulsory measures. The case is currently being further processed.

Jinyu Medical, the listed company behind Zhengzhou Jinyu, was immediately pushed into the air of public opinion. On January 12, Jinyu Medical’s stock price fell 5.79%, and its market value evaporated by about 2.6 billion yuan (about 409 million US dollars).

Zhengzhou Jinyu is a 100% wholly-owned subsidiary of Jinyu Medical. At the beginning of its establishment, Jinyu Medical was a school-run enterprise of Guangzhou Medical College of Guangdong Province (now Guangzhou Medical University) where Zhong Nanshan served as the dean. Currently, Zhong Nanshan serves as the chairman of the Golden Mile Medical Academic Committee.

Among the shareholders of Guangzhou Jinyu, there is one name on the list – Guokai Boyu Phase I (Shanghai) Equity Investment Partnership (Limited Partnership) (referred to as “Guokai Boyu”), and the legal representative of Guokai Boyu is named Tong Xiaoyu. Tong Xiaoyu is one of the co-founders of Boyu Capital, one of the largest private equity firms in China. The actual controller of Boyu Capital is Jiang Zhicheng, the grandson of Jiang Zemin, the former leader of the Communist Party of China.

What is the relationship between Jinyu Medical, Zhong Nanshan, Boyu Capital and Jiang Zhicheng? Zhong Nanshan, who has stood for the CCP’s epidemic prevention many times, has always been regarded as the correct standard of the CCP’s anti-epidemic model. Before that, any voices questioning him would be blocked. And this time, why did the authorities acquiesce to the questioning of Zhong Nanshan and the excavation of his negative news?

Golden Mile Medical has recorded billions of dollars with nucleic acid testing

What Zhang Moudong did, neither the police nor Jinyu reported details. Exactly how he caused the spread and whether it involved “malicious spreading of poison” has attracted great attention from the outside world.

After the police report in Xuchang, Henan was issued, some Chinese netizens said that the cause of the incident may be “Zhengzhou Jinyu lost some of the test samples, and it was suspected that the test sample data was reported fraudulently, and it has been replaced. other testing agencies instead.” Another netizen said: “The company received a large number of sales orders, and the laboratory could not finish it. When the appointed time came, the person in charge directly reported the negative result to the government.”

On January 12, KingMed Medical issued two statements on its official Weibo within one day, saying that the company was cooperating with the incident investigation, and that the company was responding to the “active spread of viruses”, “active loss of samples”, “falsified data”, etc. on the Internet. Rumors such as “concealing data” are strongly denied.

Jinyu Medical also stated in the announcement that at present, Zhengzhou Jinyu has suspended the nucleic acid testing work in Xuchang City, and the nucleic acid testing work in other areas of Henan Province is proceeding normally.

Founded in 2006, KingMed Medicine’s core business is third-party medical testing and pathological diagnosis. The company provides medical testing and pathological diagnosis services to more than 23,000 medical institutions. On September 8, 2017, KingMed was officially listed on the Shanghai Stock Exchange, becoming the third third-party medical testing company in China to enter the capital market, with an issue price of 6.93 yuan per share (about 1.09 US dollars per share). Zhengzhou Golden Mile was established in January 2008. It is the fifth subsidiary of Golden Mile Medical and the first third-party medical laboratory in Henan Province to have a medical institution practice license.

Under the sudden impact of the new crown epidemic, the third-party medical examination industry has moved from behind the scenes to the front, and Golden Mile Medical has begun to stand in the spotlight. Affected by the epidemic, the demand for nucleic acid testing has surged. As a leader in third-party medical testing, KingMed’s operating performance has grown significantly since 2020.

The data shows that in 2020, the operating income of KingMed Medical reached about 8.244 billion yuan (about 1.298 billion U.S. dollars), a year-on-year increase of 56.45%. In the first three quarters of 2021, KingMed achieved revenue of 8.617 billion yuan (about 1.356 billion U.S. dollars), a year-on-year increase of 47.87%, and the revenue scale reached the highest level in history for the same period.

KingMed said that the company has successively carried out new crown nucleic acid tests in 31 provinces and municipalities across the country, including Hubei, Guangdong, Jilin, and Beijing, as well as in Hong Kong and Macau. As of September 30, 2021, the cumulative number of tests exceeded 170 million. The company expects to achieve nucleic acid testing service revenue of approximately 3.356 billion yuan (about 528 million U.S. dollars) in the first three quarters of 2021.

The capital behind the reduction and cashing is all profitable

The predecessor of KingMed Medical was a company run by Guangzhou Medical College. Later, with the promotion of the current legal person Liang Yaoming, it transformed into a specialized medical laboratory service enterprise and changed its name to KingMed Medical Testing Center. After undergoing restructuring, employee fundraising and other operations during development, From a state-owned enterprise to a private enterprise.

The entire evolution of KingMed is remarkably similar to that of Chinese technology company Lenovo Group. In fact, behind the road to its listing, there is a figure of Lenovo’s capital floating.

According to the prospectus of KingMed Medicine, since 2007, KingMed Medicine has successively obtained multiple rounds of financing from the fund companies of Legend Holdings. By the time of listing, Legend Holdings’ Legend Capital had already held shares through investment companies such as Jun Ruiqi, making it one of the top ten shareholders of Golden Mile Medical.

Liu Chuanzhi, the head of Lenovo at the time, was one of the two “nobles” in the business development of KingMed. Liang Yaoming once said that after Liu Chuanzhi learned about the development concept of Jinyu, he immediately invested a sum of money. Since 2007, Jinyu Medical has launched a national chain layout.

After the listing, the share price of Golden Mile Medical has been strong all the way, reaching a record high of 178.55 yuan per share (about 28.11 US dollars per share) on January 25, 2021.

However, since then, the share price of Jinyu Medical has entered a state of slow correction. During this period, many major shareholders have quietly reduced their holdings, including major shareholders such as Guokai Boyu and Guochuang Kaiyuan. As of now, Lenovo Capital, an important promoter of KingMed’s listing, has all been reduced and no longer holds shares in KingMed.

The most recent major shareholder reduction occurred in late 2021. Jinyu Medical announced on December 31 that Guochuang Kaiyuan Equity Investment Fund (Limited Partnership) reduced its holdings of the company’s shares by 160,000 shares in a centralized bidding transaction, accounting for 0.0344% of the company’s total ordinary shares, and cashed out 24.1296 million yuan (approximately $3.79 million).

Another important shareholder of Golden Mile Medical, Guokai Boyu, has also reduced its holdings and cashed out many times before.

The most recent reduction in CDB Boyu’s holdings was in September 2021. KingMed Medical announced at the time that CDB Boyu reduced its holdings of 2,547,800 shares of the company through centralized bidding transactions, accounting for 0.55% of the company’s total ordinary shares, and cashed out 272 million yuan (about 43 million U.S. dollars).

After this reduction, CDB Boyu’s shareholding ratio has dropped from the initial 14.44% to 0, and it no longer holds shares in KingMed Medical.

CDB Boyu proposed a reduction plan in February 2019. In the following two and a half years, both CDB Boyu and Guochuang Kaiyuan have proposed a reduction plan of no more than 6% for five consecutive times.

In the four reductions from March 4, 2019 to June 3, 2021, CDB Boyu cashed out a total of 3.593 billion yuan (about 566 million U.S. dollars).

According to statistics from a reporter from the International Finance News, a subsidiary of the People’s Daily, the mouthpiece of the Communist Party of China, since 2018, the major shareholders of Golden Mile Medical have reduced their holdings by more than 8 billion yuan (about 1.2 billion U.S. dollars).

China‘s new financial media “Zebra Consumption” also statistics that from the third quarter of 2019 to 2021, a number of institutions have reduced their holdings and cashed out nearly 7 billion yuan (about 1.1 billion US dollars), earning dozens of times the income. (To be continued)

Responsible editor: Lian Shuhua#

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