In order to improve the financial structure, this pharmaceutical company plans to "clear out" its core assets!

In recent years, the development of pharmaceutical companies through the acquisition or sale of assets has gradually become the norm, and the structural adjustment of the pharmaceutical industry has also continued to change
.
On the evening of September 27th, Jilin Pharmaceutical Holdings announced that the company intends to transfer 100% of its holdings of Jinbao Pharmaceutical to improve the current difficulties and financial conditions of the listed company and enhance the company's ability to continue operating
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The company also signed the Equity Transfer Framework Agreement with Baili Pharmaceutical on September 27, 2021.
The specific transaction consideration and payment arrangements will be determined by the formal share transfer agreement signed by both parties
.
Judging from the basic situation of the proposed sale, Jinbao Pharmaceutical is a wholly-owned subsidiary of the company
.
The company holds 99.
9930% of its shares, and its wholly-owned subsidiary, Jiangxi Shuanglong, holds 0.
0070% of its shares
.
As of the end of June this year, Jinbao Pharmaceutical's total assets were 1.
627 billion yuan, accounting for 63.
98% of Jilin Pharmaceutical Holdings' assets of 2.
543 billion yuan
.
Although the transaction is still in the planning stage, there are still uncertainties about whether it can be implemented in the end, but from the perspective of the amount, the total assets and net assets of Jinbao Pharmaceutical are expected to exceed 50% of the total assets and net assets of Jilin Pharmaceutical Holdings in 2020.
%, may constitute a major asset reorganization
.
According to public information, the main business scope of Jinbao Pharmaceutical includes the production and sales of six major dosage forms of hard capsules, tablets, granules, pills (honey pills, paste pills, concentrated pills, water honey pills), mixtures, and syrups.
Hundreds of production varieties, it also owns exclusive production varieties: Qianliehuichun tablets, Reduping granules
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Among them, the national traditional Chinese medicine protection product, the national medical insurance class B product "Zhongtonghuazheng Capsule" is its main product
.
In 2014, Ssangyong, the predecessor of Jilin Pharmaceutical Holdings, obtained 97.
71% of Jinbao Pharmaceutical through issuing shares and paying cash to purchase assets and raise matching funds
.
This year, Jilin Pharmaceutical Holdings' operating income and net profit more than doubled year-on-year, and its net assets also jumped from 398 million yuan at the beginning of the year to 1.
520 billion yuan
.
For Kyrgyzstan Pharmaceutical Holdings, Jinbao Pharmaceutical is not only the original intention of entering the pharmaceutical industry, but also an important part of the company's structure.

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Due to the good performance of Jinbao Pharmaceutical, Kyrgyzstan Pharmaceutical Holdings subsequently launched a large acquisition model and officially changed its name to Kyrgyzstan Pharmaceutical Holdings in 2017
.
Wind data shows that in 2018, Jilin Pharmaceutical Holdings completed at least 6 company mergers and acquisitions.
In 2019, it actually cost 82.
6 million yuan to acquire 70% of Bozhou Pharmaceutical and 70% of Yuanda Kanghua.
In addition, the company has also planned to use cash to acquire Tianqiu Pharmaceutical's 94.
44% equity was later terminated due to the withdrawal of the underlying GMP certificate
.
However, the performance of the M&A target has not met expectations.
Judging from the operating performance of Jilin Pharmaceutical Holdings in recent years, the company has continued to lose money since 2019, with a total loss of 2.
386 billion yuan in two and a half years
.
In the first half of this year, the company lost 234 million yuan, of which Jinbao Pharmaceutical's revenue during the reporting period was -150 million, and its net profit was -160 million
.
The company stated that this share transfer is based on the company’s future development arrangements, which is conducive to improving the liquidity of the company’s assets, improving the financial structure and asset structure, further optimizing the company’s strategic layout, better guaranteeing the company’s future development funding needs, and improving the company The core competitiveness of the company will consolidate the company’s sustainable operation and profitability, and ensure the company’s steady operation
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From the perspective of the industry, the sale of Jinbao Pharmaceutical by Jilin Pharmaceutical Holdings is just the beginning, and it may continue to dispose of assets in the future
.
However, whether Kyrgyzstan Pharmaceuticals will be able to get rid of the difficulties fundamentally in the future is highly uncertain
.