154 million!

▍Edit: summer

Yixintang controls well-known pharmaceutical companies in Sichuan and involves many chain pharmacies

154 million! Yixintang Holdings, a well-known pharmaceutical company

On the evening of July 9, Yixintang issued an announcement stating that it agreed to its wholly-owned subsidiary Yixintang Pharmaceutical (Sichuan) Co.

First, increase the capital of Ben Caotang with its own funds of RMB 55 million (including: 25 million yuan is the registered capital and 30 million yuan is included in the capital reserve).

Second, 36% of the equity in Ben Caotang was transferred with its own funds of RMB 99 million.

In summary, Yixintang will hold 56% of the equity in Bencaotang through capital increase and equity transfer, involving an amount of 154 million yuan

Bencaotang has a controlling stake in a number of chain pharmacies

According to the enterprise investigation data, there are 7 companies controlled by Bencaotang and 9 companies indirectly holding shares, involving Gulin Yongtong Pharmacy Chain Co.

According to the announcement, Ben Caotang currently mainly includes drug sales for franchised pharmacies, other chain pharmacies, single pharmacies, hospitals, clinics, health centers and other downstream commercial companies

According to the announcement, the latest audited (March 31, 2021) and unaudited (June 30, 2021) financial data of Ben Caotang are as follows:

At the same time, the announcement also pointed out that after the completion of the capital increase and equity transfer, Ben Caotang will continue to be operated and managed by the original management and operating team

Initiated multiple mergers and acquisitions and bought several chains

As for the purpose of foreign investment, Yixintang made it clear that in order to meet the needs of the company’s strategic development, ensure the smooth development of the company’s businesses in Sichuan and Chongqing, expand the company’s coverage in Sichuan and Chongqing, and ensure the smooth implementation of the company’s future industrial strategy.

The author noticed that on the same day, Yixintang also issued the "Announcement on Increasing the Registered Capital of a wholly-owned subsidiary Yixintang Pharmaceutical (Sichuan) Co.

The capital increase announcement pointed out that in order to promote the business development of Yixintang Sichuan and enhance Yixintang Sichuan's profitability and comprehensive competitiveness, the company intends to increase its capital in Yixintang Sichuan with its own funds of RMB 250 million

Yixintang's 2020 annual report mentioned that in the next three years, Sichuan and Chongqing will be the first important expansion area for Yixintang, and Shanxi, Guangxi, Hainan, and Guizhou will be the second expansion area

While self-opening stores, it will further participate in the integration of industry assets, expand the market and increase market share through the acquisition of regional high-quality pharmaceutical retail assets, accelerate the expansion of the Sichuan region, and strive to build Sichuan and Chongqing into the company's largest sales area

Judging from the current situation, Yixintang has begun to exert its strength in Sichuan, Guizhou, Shanxi, Henan and other markets

On June 17, Yixintang announced that its wholly-owned subsidiary Guangxi Yixintang intends to acquire the assets of 11 stores held by Guangxi Baise Likang for no more than 11 million yuan

On May 31, Yixintang announced that its wholly-owned subsidiary Henan Yixintang plans to acquire 16 stores held by Henan Xiangcheng Kaixin Renda Pharmacy Chain Co.

On May 19, Shanxi Yixintang plans to acquire the assets of 30 stores held by Sunshine Medicine for no more than 34.
88 million yuan
.

On February 5 of the same year, Yixintang issued an announcement stating that its wholly-owned subsidiary, Shanxi Yixintang, planned to acquire 29 store assets held by Shanxi Baixing Pharmaceutical Chain Co.
, Ltd.
for no more than 39 million yuan
.