For 420 million yuan, Jingxin Pharmaceutical acquired two traditional Chinese medicine companies

Jingxin Pharmaceutical issued an announcement on the evening of November 8, stating that the company intends to acquire Yuanjin Health's 99% stake in Shaxi Pharmaceuticals and 1% of Shaxi Pharmaceuticals held by Jingxin Holdings for 205 million yuan; it plans to acquire 210.
8 million yuan.
Yuan acquired a 6% stake in Hu Qingyutang held by Yuanjin Health
.
Through the above acquisitions, the company will further expand the layout of the Chinese medicine industry and realize the active development of the existing Chinese medicine business
.
According to the data, Shaxi Pharmaceutical is mainly engaged in the research and development, production and sales of Chinese patent medicines.
Its main products include Shaxi herbal tea (National Medicine Standard Drug), Runchang Ningshen Ointment, Paishi Granules, Guxian Tablets, Shuquan Pills, etc.
Among them, "Shaxi Herbal Tea" has been included in the Guangdong Province and the National Intangible Cultural Heritage List
.
Hu Qingyutang is an important holding subsidiary of Hangzhou Huqingyutang Group Co.
, Ltd.
, and has a relatively complete industrial chain of traditional Chinese medicine
.
The "14th Five-Year Plan" points out that we must adhere to the equal emphasis on Chinese and Western medicine and complement each other's advantages, and vigorously develop the cause of Chinese medicine
.
With the support of favorable policies, the traditional use of Chinese medicine has returned and upgraded in the new era of Chinese medicine, and the brand of Chinese medicine is rising rapidly, ushering in a broader development opportunity
.
Data show that from 2016 to 2020, the market size of China's traditional Chinese medicine industry has continued to grow at a compound annual growth rate of 19.
4%.
By 2020, the market size of the traditional Chinese medicine industry will reach 2825.
43 billion yuan
.
The industry predicts that in the next five years, the market size of China's traditional Chinese medicine industry will maintain a compound annual growth rate of approximately 14.
2% and continue to grow at a high speed.
By 2025, the market size is expected to reach 480.
717 billion yuan
.
In the face of the vast market pie, companies that want a slice of the pie are constantly entering the game
.
The industry believes that the two companies, Shaxi Pharmaceutical and Hu Qingyutang, will inject more vitality into the Chinese medicine business of Jingxin Pharmaceutical and increase market competitiveness in the Chinese medicine market
.
It is understood that the Chinese medicine business segment is the main sub-business of Jingxin Pharmaceutical outside the two core areas of mental nerve and cardiovascular and cerebrovascular, forming a useful supplement to the two core areas
.
Before the acquisition, Jingxin Pharmaceutical’s proprietary Chinese medicine business was mainly developed by its wholly-owned subsidiary Inner Mongolia Jingxin.
Its products include Kangfuxin Liquid, Shenzhujing, Dingkun Dan, etc.
, with consumer product attributes, and are mainly distributed in chain pharmacies and JD.
com , Ali Pharmacy and other channels
.
It is worth mentioning that, on June 21 this year, Jingxin Pharmaceutical also issued an announcement stating that in order to effectively increase the production capacity of Chinese medicine preparations and realize the industrial structure upgrade of the company’s traditional Chinese medicine business segment, the company’s wholly-owned subsidiary Inner Mongolia Jingxin intends to locate in Bayan.
The Naoer Economic and Technological Development Zone invests in the construction of a Chinese medicine production base.
The total land area of ​​the project is about 150 acres and the total investment is about 200 million yuan
.
After the project is completed and put into production, the estimated production capacity will be 10,000 tons of Chinese medicinal materials and 60 million boxes of preparations
.
Analysts believe that this acquisition will help Jingxin Pharmaceuticals give full play to the synergies of Inner Mongolia Jingxin and the "old brand" assets, further enrich the company's traditional Chinese medicine industry resources, effectively integrate the brand, culture, and channel advantages of the three parties, and realize the company's traditional Chinese medicine business sector.
The industrial structure is upgraded
.
The third quarter report for 2021 shows that the company achieved a net profit of 146 million yuan in the third quarter, a year-on-year increase of 42.
75%, a record high in the same period
.
In addition, as of the end of the third quarter of this year, the company’s net cash flow from operating activities was 142 million yuan, a year-on-year decrease of 70.
33%
.
At the same time, the company used idle raised funds of no more than 660 million yuan to supplement working capital
.