The “buy, buy, buy” model is continuing to be staged in the pharmaceutical industry.
In the first half of 2022 alone, the valuation of mergers and acquisitions in the pharmaceutical industry has reached US$61.
7 billion, with more than 130 transactions
.
In the second half of the year, there is still a wave of industry acquisitions.
On August 11, two pharmaceutical companies in the Shanghai Stock Exchange announced acquisitions, namely Buchang Pharmaceuticals and Lukang Pharmaceuticals
.
Judging from the purpose of the two acquisitions, one is to integrate resource advantages to expand the business scope, and the other is to solve environmental problems that restrict the development of enterprises
.
Pharmaceutical industry (Image source: Pharmaceutical Network)
Buchang Pharmaceutical: The holding subsidiary plans to acquire 100% equity of Buchang Health Management for 48.
88 million yuan
Buchang Pharmaceutical: The holding subsidiary plans to acquire 100% equity of Buchang Health Management for 48.
88 million yuan
Buchang Pharmaceutical announced that the company's holding subsidiary, Buchang Health Industry (Zhejiang) Co.
, Ltd.
plans to acquire 100% equity of Buchang Health Management (Shanghai) Co.
, Ltd.
for 48.
88 million yuan
.
From the perspective of the business scope of both parties, the business scope of Buchang Health Industry includes the sales of health food (pre-packaged); the sales of infant formula milk powder and other infant formula food; the sales of formula food for special medical purposes,
etc.
The business scope of Buchang Health Management involves food operation, import and export of goods, etc.
Its product range covers beauty and whitening, detoxification, anti-oxidation, anti-aging, improving immunity, supplementing vitamins, improving cardiovascular and cerebrovascular, protecting liver and other preventive measures.
A variety of healthy nutritional supplements have now formed a healthy product system of natural herbs and animal nutrition extracts
.
As of May 31, 2022, Buchang Health Management held 18 valid product approvals
.
For the purpose of this acquisition, Buchang Pharmaceutical stated that after the acquisition is completed, Buchang Health Management will become the company's holding subsidiary and will be included in the company's consolidated financial statements
.
This acquisition is in line with the company's strategic development and is conducive to the integration of resource advantages.
It is an effective measure for the company to actively deploy health care products and realize the "big health" strategy.
It will further expand the development of health care products business, form sustainable profitability, and enhance the company's comprehensive strength.
Conducive to the long-term development of the company
.
However, judging from the financial data, the Buchang Health industry has no income yet, and the Buchang Health Management is in a state of loss
.
As of December 31, 2021, its total assets were 385,000 yuan, total liabilities were 12,327,600 yuan, net assets were -11,942,600 yuan, operating income in 2021 was 0 yuan, and net profit was -536,600 yuan
.
(The above data has been audited) As of May 31, 2022, the total assets were 419,500 yuan, the total liabilities were 12,504,400 yuan, and the net assets were -12,084,900 yuan.
From January to May 2022, the operating income was 00,000 yuan, and the net profit was -14.
23 yuan.
million
.
(The above data is audited)
Lukang Pharmaceutical: It plans to purchase 60% equity of Zhonghe Environmental Protection Company held by Hualu Group for 62.
0659 million yuan
Lukang Pharmaceutical: It plans to purchase 60% equity of Zhonghe Environmental Protection Company held by Hualu Group for 62.
0659 million yuan
Lukang Pharmaceutical stated that it plans to acquire a 60% stake in Shandong Lukang Zhonghe Environmental Protection Technology Co.
, Ltd.
held by Hualu Holding Group Co.
, Ltd.
for RMB 62.
0659 million in cash
.
After the acquisition is completed, Zhonghe Environmental Protection Company will become a wholly-owned subsidiary of the Company
.
The business scope of Zhonghe Environmental Protection Company involves the operation of hazardous chemicals; the operation of hazardous waste; the production of fertilizers; the import and export of goods; various engineering construction activities; sewage treatment and its recycling; sales of synthetic materials
;
Financial data shows that as of August 31, 2021, Zhonghe Environmental Protection Company had total assets of 294 million yuan and net assets of 120 million yuan.
From January to August 2021, it achieved operating income of 112 million yuan and net profit of 10.
2546 million yuan
.
In addition, from September 1, 2021 to May 31, 2022, Zhonghe Environmental Protection's operating income was 109 million yuan and net profit was 3.
4655 million yuan
.
Regarding this transaction, the independent directors of the company believe that the acquisition of 60% equity of Shandong Lukang Zhonghe Environmental Protection Technology Co.
, Ltd.
held by the controlling shareholder Hualu Holding Group Co.
, Ltd.
in cash can better solve the environmental protection problems that restrict the development of the enterprise.
The effective allocation of company resources is in line with the company's strategic development direction and actual business needs
.
