On November 8, 2021, Jingxin Pharmaceutical (002020.sz) announced that on November 8, 2021, the Company held the 26th meeting of the Seventh Board of Directors, deliberated and passed the "Proposal on the Acquisition of 100% Equity of Guangdong Shaxi Pharmaceutical Co., Ltd. and Related Party Transactions", and agreed that the Company would acquire 99% of Guangdong Shaxi Pharmaceutical Co., Ltd. ("Shaxi Pharmaceutical") held by Xinchang Yuanjin Health Industry Investment Partnership (Limited Partnership) ("Yuanjin Health") with its own funds of 205 million yuan. equity and a 1% equity interest in Shaxi Pharmaceutical held by Jingxin Holdings Group Limited ("Jingxin Holdings").
The Chinese medicine business sector is the company's main sub-business in addition to the two core areas of psychiatric nerves and cardiovascular and cerebrovascular diseases, and this transaction is to effectively integrate the existing Chinese medicine industry resources, strengthen the large varieties and brand influence of Chinese medicine, and realize the positive development of the Chinese medicine business sector.
Shaxi Pharmaceutical is mainly engaged in the research and development, production and sales of proprietary Chinese medicines. The main products are Shaxi herbal tea (national medicine quasi-brand drug), run intestine tranquilizer cream, stone discharge granules, bone immortal tablets, shrinking spring pills, etc., mainly used in respiratory, digestive, urology and orthopedic fields. Shaxi Pharmaceutical is one of the first batch of "Chinese time-honored brand" enterprises of the Ministry of Commerce; the exclusive product "Shaxi Herbal Tea" has been included in the list of Guangdong Province and National Intangible Cultural Heritage.
The announcement shows that the company has indirectly held 39.44% of the equity of Shaxi Pharmaceutical through Yuanjin Health, and the transaction of acquiring 100% of the equity of Shaxi Pharmaceutical can effectively integrate the company's traditional Chinese medicine industry resources, comprehensively utilize brand, culture and channel advantages to create large varieties of traditional Chinese medicine such as Shaxi herbal tea and rehabilitation new liquid, and achieve the positive development of the existing traditional Chinese medicine business, which is in line with the company's industrial development plan of the traditional Chinese medicine sector, which is conducive to further improving the company's overall operating performance and achieving the sustainable development of the company.
This article originated from Grand Gateway