Tiansli Bio will be on the market

Tiansli Bio will be independently listedon June 13, Tiansli Pharmaceutical Group announced that tiansli Pharmaceutical Group intends to spin off its subsidiary Tiansli Biopharmaceutical Co., Ltd. (hereinafter referred to as "Tiansli Bio") to the Shanghai Stock Exchange Branch of the board listing.Tiansli believes that this spin-off is conducive to Tiansli bio-protruding main industry, improve market competitiveness, enhance independence.In the announcement, Tian Shili pointed out that in recent years, the state has formulated policies such as "Guidelines for promoting the healthy development of the pharmaceutical industry" and "Opinions on deepening the reform of the review and approval system to encourage innovation in pharmaceutical medical devices", providing strong support for the development of biological drugs in terms of giving preferential treatment to national medical insurance policies and giving priority to new drugs that address unseeded clinical needs that seriously threaten people's health and lives.Driven by technological progress, industrial restructuring and increased capacity to pay, China's biopharmaceutical market is growing much faster than China's overall pharmaceutical market and other market segments, and has great potential.From 2018 to 2023, China's biopharmaceutical market is expected to grow at a compound annual rate of 35.6%, 56.4% and 17.2%, respectively, exceeding the projected growth rate of the corresponding pharmaceutical market, and the market size (in terms of wholesale income) will reach RMB196.9 billion in 2023, according to frostshavin.Public information shows that Tiansli Biological's main business is engaged in the development and commercialization of biological products, focusing mainly on cardiovascular, tumor and autoimmune, digestive metabolism in China has a large number of unsupereneable clinical needs of the therapeutic field. In addition to Tiansli Bio, Tiansli's main business is scientific research, production preparation and marketing in the field of Chinese medicine and chemical medicine.After the spin-off of Tiansli Bio, Tiansli Bio will remain in control of Tiansli Bio, which remains a subsidiary within the scope of its consolidated statements.It is expected that after the completion of this spin-off, Tiansli Bio will be directly connected to the capital market, using the new listing platform to support its future business development, and release the value of Tiansli Biopharmace products sector.Tiansli believes that from the perspective of performance improvement, the growth of Tiansli's biological performance will be reflected in the overall performance of Tiansli, thereby enhancing Tiansli's profitability and robustness; The value of Tiansli's biological equity is expected to be further enhanced and liquidity will be significantly improved, and from the perspective of structural optimization, Tiansli's bio-splitting and listing will help Tiansli further broaden its financing channels, improve its overall financing efficiency, reduce the overall asset-liability ratio, and enhance Tiansli's comprehensive strength.The sale of Tiansi marketing, focusing on the pharmaceutical industryon the same day the board of directors, Tiansli also voted to sell the subsidiary Tians marketing bill.Tiansli announced that Chongqing Pharmaceuticals will further focus on the pharmaceutical industry and improve the quality of operations and the efficiency of capital utilization through the sale of commercial business assets by acquiring a 99.948 percent stake in Tiansli's subsidiary Tiansli Marketing for 1,489 million yuan.Tiansli and the six partners indirectly controlled by Tiansli intend to sell 99.9448 percent of Tiansi Marketing to Chongqing Pharmaceuticals - of which Tiansli intends to sell 88.4937 percent of Tiansi Marketing to Chongqing Pharmaceuticals, and the six partnerships indirectly controlled by Tiansli intend to sell their combined 11.4511 percent stake in Tiansi Marketing to Chongqing Pharmaceuticals.Chongqing Pharma is purchased by cash payment, and the transaction value is determined by negotiation between the two parties on the basis of the evaluation value. As of the evaluation benchmark date, the evaluation value of 100% equity in Tianx Marketing was 1412.9093 million yuan, and the two sides negotiated to determine that Tianx Marketing 99.9448% equity transaction price was 148857.01 million yuan.Tianfeng Securities analysis pointed out that due to the low gross margin of the commercial sector, the overall impact on Tianshili's profit is relatively limited, after the successful transaction reference to 2019 net profit attributable to shareholders of listed companies only fell from 1 billion to 900 million yuan. The financial and operational quality of Tiansli after the commercial divestiture showed a significant improvement, in 2019 Tiansli's total accounts receivable of 8.43 billion yuan, of which Tiansli marketing accounts receivable reached 5.87 billion yuan, occupying the main part, through the commercial part of Tiansli marketing divestiture, Tiansli's cash flow, operational quality, asset-liability ratio will be significantly improved.Tiansli also said in its 2019 annual report that the sale of Tiansi marketing assets will effectively reduce the asset-liability ratio, improve the company's operating cash flow, improve shareholders' return on investment, further improve the quality and operational efficiency of operations, deepen the core strategy of the pharmaceutical industry, accelerate the construction of innovative pharmaceutical research and development clusters and marketing innovation, and better play the advantages and synergies of multi-product clusters. Tiansli on the one hand to divest the commercial sector, on the other hand to promote the bio-innovative pharmaceutical sector spin-off and listing, it adheres to the four-in-one, to solve the unsolved clinical needs, to play the modern Chinese medicine, chemical drugs, biological drugs, the advantages of coordinated development, and constantly enrich the company's echeloned product portfolio, to create sustainable product innovation capabilities of the strategy is becoming clearer.
(Cypress Blue)