Tongjitang acquired 60% equity of Sichuan beierkang Pharmaceutical Co., Ltd. with RMB 270 million

On December 11, Tongjitang released the announcement on the acquisition of some shares of Sichuan beierkang Pharmaceutical Co., Ltd and related party transactions It is proposed to purchase 60% equity of Sichuan beierkang held by Tsinghua Zhuojian at a cash price of 270 million Li Jing, the shareholder of Tsinghua Zhuojian, and Li Qing, the vice chairman of the company are immediate relatives This transaction constitutes a connected transaction The announcement shows that the 60% equity held by Tsinghua Zhuojian was acquired in April 2018 at a cash price of 212.4 million yuan Sichuan beierkang has been in normal operation in the last year and has the approval documents of all departments required for normal operation Sichuan beierkang has three shareholders, Tsinghua Zhuojian holds 60%, Li Haiying holds 38%, and Li Dajiang holds 2% Main business: wholesale of class II psychotropic drugs, biochemical drugs, traditional Chinese medicine, Chinese herbal pieces, biological products (excluding preventive biological products), chemical APIs, antibiotic APIs, Chinese patent medicine, chemical pharmaceutical preparations, antibiotic preparations, prepackaged food, dairy products (including infant formula milk powder), pharmaceutical accessories, medical devices, cosmetics, health products, disinfection products, daily Supplies, mechanical equipment, electronic products, hardware and electricity; conference services; warehousing services (excluding dangerous goods); network technology promotion services (for projects subject to approval according to law, business activities can only be carried out with the approval of relevant departments) The announcement shows the purpose of Tongjitang's acquisition In terms of future development, the acquisition of Sichuan beierkang's equity is an important step in the company's "three lines and one belt" development strategy to expand the company's business operation in Sichuan, which adds to the company's business coverage in Sichuan Sichuan beierkang, as a modern pharmaceutical distribution enterprise with certain scale and regional competitiveness, has the market and distribution capacity of medical institutions in Sichuan Province The company also intends to continue to develop in the industry and hopes to further develop and grow by introducing powerful shareholders for restructuring 37