Drug companies throw 7.8 billion "snake swallows elephant" and their net profit soars from 10 million to 1 billion?

Highlights Recently, Furen Pharmaceutical Group Industrial Co., Ltd (hereinafter referred to as Furen pharmaceutical) announced that it plans to purchase 100% equity of Kaifeng Pharmaceutical (Group) Co., Ltd (hereinafter referred to as Furen Pharmaceutical Group) from 14 counterparties including the controlling shareholder Furen Pharmaceutical Group Co., Ltd (hereinafter referred to as Furen group) through issuing shares and paying cash, with the transaction consideration of RMB 7.809 billion, of which 74.5% is paid by issuing shares 1.8 billion yuan, 391 million yuan in cash After the completion of the transaction, kaiyao group will realize backdoor listing, while Furen pharmaceutical industry will not only enrich the product structure, but also help to solve the problem of horizontal competition and enhance the profitability none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; border-bottom-color: rgb(0, 0, 0); box-sizing: border-box !im portant; word-wrap: break-word !im portant; "> according to the announcement of" snake swallows the elephant "of pharmaceutical enterprises, the transaction plan includes two parts: issuing shares, paying cash to purchase assets and raising supporting funds Fu Ren pharmaceutical purchases 100% of its shares in the pharmaceutical development group from 14 counterparties such as Fu Ren group, and the price of the underlying assets is 7809 million yuan At the same time, no more than 10 qualified specific objects will be issued non-public shares to raise supporting funds, and the total amount of raised funds will not exceed 530 million yuan Restricted by the factors of small scale and single product, in recent years, the development of traditional Chinese medicine business of Furen pharmaceutical industry has fallen into a bottleneck, and it is difficult to further improve its sales scale and business performance in the short term Through this transaction, Furen pharmaceutical intends to acquire the biomedical R & D company affiliated to Furen group through pharmaceutical development group, and will build into a large-scale comprehensive pharmaceutical listed company platform covering chemical medicine, Chinese patent medicine, API and biopharmaceutical business, so as to basically realize the overall listing of Furen group's nuclear pharmaceutical assets   none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; Border bottom color: rgb (0, 0, 0); box sizing: border box! Im portant; word wrap: break word! Im portant; "> net profit is expected to soar from 10 million to 1 billion? R & D, production and sales of Chinese patent medicine As of December 31, 2016, the total assets were 1272.9318 million yuan; the operating revenue in 2016 was 495.6313 million yuan, and the net profit attributable to the shareholders of the parent company was 17.6567 million yuan Furen group is a modern large-scale pharmaceutical group integrating research and development, production and sales of chemical drugs, Chinese patent medicines and APIs At present, it has more than 480 drug approval numbers, including more than 300 varieties selected in the medical insurance catalogue (2017 Edition) The main products of kaiyao group include 10 products such as cephalosporin for injection, doxycycline hydrochloride and antiviral oral liquid The total revenue accounts for 45% of the main business revenue, which is the main source of revenue As of December 31, 2016, the total assets of the group were 7515218200 yuan; the operating revenue in 2016 was 4533759500 yuan, and the net profit attributable to the shareholders of the parent company was 652845800 yuan The asset scale and profitability of the group were significantly higher than that of the subsidiary pharmaceutical industry After the transaction, as of August 31, 2017, the total assets of Furen Pharmaceutical Co., Ltd were up to 921992.83 million yuan, an increase of 6 times on a year-on-year basis; from January to August 2017, the company's operating revenue was up to 3717.7177 million yuan, an increase of 10 times on a year-on-year basis; the net profit attributable to the shareholders of the parent company increased by 43 times, to 4916316 yuan, a significant increase in the profit level In addition, Furen pharmaceutical also signed profit forecast compensation agreement and relevant supplementary agreements with the counterparties, which clearly pointed out that the net profit realized by the group in 2017-2019 was not less than 735.8577 million yuan, 808.2178 million yuan and 873.6676 million yuan respectively If the performance compensation period is extended to 2020, the net profit realized will not be less than 950517500 yuan, which means that the net profit of Furen pharmaceutical industry will step into the scale of 1 billion yuan in the future   none="shifuMouseDownStyle('shifu_bus_002')" style="margin: 1em auto; padding: 0px; max-width: 100%; color: rgb(62, 62, 62); font-family: "Hiragino Sans GB", "Microsoft YaHei", Arial, sans-serif; font-size: 16px; line-height: 25.6px; widows: 1; border-style: none none solid; text-align: center; border-bottom-width: 1px; Border bottom color: rgb (0, 0, 0); box sizing: border box! Im portant; word wrap: break word! Im portant; "> fill the gap in the field of chemical drugs and APIs, and enhance the profitability After the completion of this transaction, the main core high-quality pharmaceutical assets of Furen group will be injected into Furen pharmaceutical industry, and the problem of peer competition with Furen group in pharmaceutical business will be greatly reduced For the pharmaceutical assets not injected into the listed company, the controlling shareholders and actual controllers of the company have put forward clear and feasible solutions and time plans This time, Furen pharmaceutical has put in the medical assets with strong profitability On the one hand, it can make up for the vacancy in the field of chemical medicine and API, expand the scale in the field of Chinese patent medicine, enrich the product structure, avoid the single operation risk of existing products, and realize diversified development On the other hand, the company will greatly improve the operation scale and profitability, and significantly enhance the sustainable profitability In the field of medicine, the scale advantage will be further revealed by realizing the intensive operation of unified planning, management and operation Source: announcement of listed companies