Haizheng Pharmaceuticals gave a controlling stake in its subsidiary of $3.828 billion or eased its $10 billion debt

Recently, Haizheng Pharmaceuticals announced that the Taiwan Stock Exchange confirmed the delisting of Taizheng Investment Group (one of Asia's largest independent alternative investment management groups, referred to as Taimong) and subscribed to Haizheng Bore's registered capital of 8928.5714 million yuan, with a transaction price of RMB 1 billion, while Haizheng Hangzhou Co., Ltd. and Haizheng Pharmaceutical Co., Ltd. The registered capital of RMB 0.5 million (representing 40.3410% of Haizheng Borui's shares before the transaction) and RMB 507.95 million of registered capital (representing 10.1590% of Haizheng Borui's pre-transaction equity) were traded at RMB2,259.96 million and RMB568.904 million, respectively.This also means that through the capital increase and the transfer of some old shares, Taimong Investment Group for 3.828 billion yuan to buy 58% of Haizheng Borui's controlling interest, after the completion of the transaction, Haizheng Pharmaceuticals' direct shareholding in Haizheng Borui fell to 42%, Haizheng Borui Zheng Hangzhou company no longer holds a stake in Haizheng Borui, Haizheng Party's overall total shareholding ratio of no more than 42%, while Hai zhengfang in Haizheng Borui's board of directors will not occupy a majority of seats, no actual control, Haizheng Pharmaceuticals will no longer be Haizheng Bore report merger.
is understood that Haizheng Pharmaceuticals is an innovative biopharmaceus companies focused on the development, production and marketing of drugs for malignant tumors and immune system diseases. Tian eye inspection shows that the company was established on January 23 this year, with a registered capital of 500 million yuan, is a main biopharmaceit products production, sales and research and development of innovative biopharmaceers, products related to malignant tumors and immune system disease drugs. Haizheng Borui owns 59.66 percent of Haizheng Pharmaceuticals and Haizheng Hangzhou Holds 40.34 percent.Although Haizheng Bolly's current net profit is showing a loss-making state, but as the core business of Haizheng Pharmaceutical Industry - single anti-biopharmaceus technology research and marketing platform, has now established a wealth of biopharmaceus technology pipeline in the field of immunology and tumor therapy, built a more complete antibody technology platform system, including human antibodies and engineering cell strains high-volume screening platform. At present, more than 20 biological pharmaceutical products, of which 9 products have received major new drug creation special support. Haizheng Bolly's 2015 listing of Anjuno is the first single-resistant products listed in China's pharmaceutical companies, is currently China's biological drugs in clinical trials of the largest sample, the most comprehensive biologics, its sales in the first half of 2019 exceeded 240,000 units, an increase of 162% year-on-year, the number of new patients also maintained a stable growth, Adamo single-resistant injection has been declared production, is expected to be approved this year, become the first bio-similar drugs. Haizheng Bolly's first bio-innovative drug anti-CD20 single resistance has entered Clinical Phase III, is expected to be declared on the market in 2020, and another 2 biosynthic pharmaceutical products are in Clinical Phase III research, and many innovative products are in Clinical Phase I research.It is also worth mentioning that, in the capital increase and the transfer of old shares at the same time, Haizheng Pharmaceuticals also on its Adamo single resistance, Invlixi single resistance and Quto Zhu single anti-three biosypoles listed on the gambling terms agreement.According to the announcement, if the following two conditions of Adamo monoantigen products in the joint venture product are not met, Haizheng Pharmaceuticals will need to pay RMB375 million in compensation to Taimong or its designated party:Haizheng Pharmaceuticals or Haizheng Borje will receive Ada no later than the end of December 2019. Wood single anti-listing approval; Haizheng Pharmaceuticals or Haizheng Borui or Haizheng Bolly wholly-owned subsidiaries by the end of June 2020 to obtain Adamo single anti-listing approval, and the date of obtaining the listing approval is no later than 6 months after the first Adamo single anti-biosychic drug to obtain the listing approval.If Haizheng Borje has not obtained the joint venture product in the end of September 2021 single anti-listing approval, Haizheng Pharmaceuticals will need to pay 90 million yuan compensation to TaiM or its designated party;If Haizheng Borui has not yet obtained the approval of the joint venture product Inturzhu single anti-listing at the end of March 2022, Haizheng Pharmaceuticals will need to pay RMB 150 million in compensation to TaiM or its designated party, and if it still does not obtain the Quto Zhu single anti-listing approval at the end of June 2022, Haizheng Pharmaceuticals will need to pay a further RMB125 million in compensation to Taim union or its designated party.If the approval/approval process of the competent government authority is delayed due to a significant change in the applicable law for drug registration, resulting in the extension of the approval of any drug listed in Article (1), and the change also affects the product pipeline declared by Haizheng Borui and the same generic as the drug. Where most of the competing products of the same kind are declared and approved for listing, the above-mentioned agreed time limit and payment of compensation for the drug shall be deferred accordingly, and the above-mentioned compensation shall be paid by Haizheng Pharmaceuticals or its designated party within three months after the trigger of the relevant milestone conditions.In addition, Haizheng Pharmaceuticals shall undertake to abide by the obligation of competition prohibition, not to compete with Haizheng Bore and its subsidiaries, not to solicit any employees, customers, suppliers, agents and distributors of Haizheng Bore or its subsidiaries, etc., if Haizheng Pharmaceuticals violates its competition prohibition obligations, it shall pay, if any, all benefits (if any) obtained from engaging in competitive activities to Haizheng Borry, and compensate Taizheng and Haizheng Borry for any losses suffered as a result.For this huge capital increase and equity transfer costs, there is industry analysis, this is no doubt haizheng Pharmaceuticals to solve the high debt ratio of the "urgent", according to Haizheng Pharmaceuticals announcement, in 2018, Haizheng Pharmaceuticals performance showed a huge loss, attributable to the shareholders of listed companies net profit of -492 million yuan, down 3730.15 percent year-on-year, Total liabilities amounted to 14.475 billion yuan, with an asset-liability ratio of 66.24%, and according to the latest half-yearly report for 2019, Haizheng Pharmaceuticals' total liabilities amounted to 14.682 billion yuan, an increase of 2.5% YoY, and its balance sheet ratio rose to 65.88%.To address this set of issues, Jiang Guoping, the incoming chairman, who took office only last year, adjusted the company's strategic direction for the future, starting to "slim down, focus and focus on shareholder interests" and selling stakes in subsidiaries and unnecessary fixed assets.In April this year, Haizheng Pharmaceuticals announced that it intends to publicly list the sale of vacant properties located in Beijing, Shanghai, Hangzhou and Pepper River through property rights trading institutions, the listing price is not less than the assessed value of 92.2616 million yuan, the disposal price is based on the actual transaction price, if all properties are sold at no less than the assessed value, Haizheng Pharmaceuticals is expected to confirm the net profit attributable to the owner of the parent company of about 45 million yuan.In May, Haizheng Pharmaceuticals transferred a 20.24% stake in zhejiang Fuming Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Fuming Pharmaceuticals"), with an assessed value of 138 million yuan.
And this successful capital increase and equity transfer, so that tai alliance's 3.8 billion or to some extent to reduce the pressure on Haizheng Pharmaceuticals' own 10 billion debt, there have been data show that at 6% of the financing costs, 3.8 billion or can reduce 228 million financial costs. (Medical Valley)