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Erkang Pharmaceutical (300267.SZ) announced last night that the companys 2 billion yuan non-public offering of funds has been fully credited.


Erkang Pharmaceuticals issued 116 million shares at 17.18 yuan per share, of which Shuai Fangwen, the company's controlling shareholder and actual controller, subscribed for 20%. All the funds raised will be invested in the project of "annual production of 100 billion starch plant empty capsules and annual production of 30 billion starch plant soft capsules".


After the project is fully completed, it is expected to add an annual sales revenue of 3.84 billion yuan and a net profit of 1.3 billion yuan for Erkang Pharmaceutical. The company's deputy general manager and Dong secretary Luo Lang introduced that after the 2 billion yuan of raised funds are fully in place, the company's starch plant capsule construction and promotion will enter the fast lane of development. In the next stage, Erkang Pharmaceutical Starch Capsules is expected to be used in medicinal amoxicillin capsules.


On October 1, Erkang Pharmaceuticals issued an announcement that Hunan Erkang Xiangyao Pharmaceutical Co., Ltd., a subsidiary of the company, plans to use its own funds of 41.8 million yuan to invest in the construction of a starch capsule preparation workshop with an annual output of 8.4 billion grains. The product is applied to the production of amoxicillin capsules.


As a relatively mature antibiotic product, amoxicillin capsules are widely used. At present, the capsules on the market are mainly gelatin capsules. Due to the continuous popularization of the concept of green and environmentally friendly consumption, especially the plant-sourced capsules that are safe, non-toxic, and renewable are highly respected. If the amoxicillin produced by Erkang Pharmaceutical Vegetable starch capsules are on the market, and the product is expected to be introduced into the market quickly.


Statistics show that in the capsule market alone, Chinas annual consumption is about 300 billion capsules. Calculated at 4 cents per capsule, Chinas capsule market has a market space of 12 billion yuan; the global consumption is about 1.4 trillion capsules (currently About 95% are gelatin capsules).


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