Well-known Chinese medicine companies change owners

Well-known Chinese medicine company, the actual controller change is officially completed

01 The actual controller change is completed

Recently, Guangyuyuan issued the “Announcement on the Completion of the Change of the Company’s Controlling Shareholders and Actual Controllers”.

Picture source: company announcement

So far, the controlling shareholder of the company has been changed from Dongsheng Group to Jinchuang Investment, and the actual controller of the company has been changed from Mr.

Prior to this, Guangyuyuan announced on the evening of June 8 that the controlling shareholder Dongsheng Group agreed to pledge its 31.

If the transfer of shares is completed, Dongsheng Group will hold a total of 5.

In addition, the two parties agreed that after the completion of the equity transfer, Guangyu Yuan’s original controlling shareholder Dongsheng Group, the original controller Guo Jiaxue and its related parties will no longer participate in the actual operation and management of the listed company, and Jinchuang Investment will nominate the chairman and control the board of directors.

Now that the transfer registration procedures have been completed, it is foreseeable that the Guang Yuyuan, which has grown from an insolvent Chinese medicine factory under the leadership of the old chairman Guo Jiaxue, to today's tens of billions of Chinese medicine giants, will officially start a new chapter

02 State-owned admission

Obviously, the attitude of the capital market is optimistic about the change of the actual controller of Guangyuyuan

The performance of the capital market is so dazzling, on the one hand, it has caught the wind of the recent Chinese medicine concept stocks, but it is also related to the increase of the capital market's confidence in the future development of Guangyuyuan by the acquisition of state-owned assets in Shanxi Province

Regarding the purpose of the change of Guangyuyuan’s rights and interests, the “new owner” of Shanxi State-owned Assets said that on the one hand, it is to protect the rights and interests of state-owned assets and resolve litigation disputes between the obligor of information disclosure and Dongsheng Group; on the other hand, it is beneficial to "Promote the upgrading of the traditional Chinese medicine industry in Shanxi Province, cultivate high-end brands of traditional Chinese medicine in Shanxi Province, improve the quality of listed companies, enhance the sustainability of listed companies, and safeguard the interests of small and medium shareholders

In recent years, the state has vigorously supported the development of the Chinese medicine industry.

Investors.

Manran Asset Management Fund Manager Ma Manran previously pointed out to Times Finance and Economics, “After the Shanxi SASAC became the master of Shanxi Fenjiu, Shanxi Fenjiu, which was on the verge of bankruptcy, has been built into a domestic first-line liquor brand.

It can be said that from the perspective of the capital market, the Shanxi SASAC has the motivation and ability to lead Guangyuyuan into a new life

03 Dilemma and Opportunity

In recent years, Guangyuyuan’s performance has continued to decline.

As one of the Chinese time-honored brands with a long history, Guangyuyuan has a good brand image and competitive core products

As for the reasons for the continuous losses in recent years, Guang Yuyuan concluded that first, due to the impact of the new crown epidemic, the sales of offline stores were affected, and product sales did not meet expectations; second, the increase in raw material prices caused the increase in product costs; third, the above-mentioned Under the influence of two reasons, the company increased the promotion fee and advertising investment in order to promote sales, so the sales expense ratio increased

In fact, in the entire Chinese medicine sector, Guang Yuyuan’s dilemma is just the tip of the iceberg
.

Guang Yuyuan responded to the Shanghai Stock Exchange's inquiry letter.
The announcement data shows that the comprehensive Chinese patent medicine industry has similar product attributes, similar or surpassed main business scales, industry representative and leading level, and sales models in the 2019 and 2020 annual reports of listed companies in the same industry.
According to data, 15 of the 24 listed companies experienced a decline in revenue, 7 of which fell by more than 10%; the net profit of 11 companies attributable to the owners of the parent company declined, with a decline of more than double digits
.

The current national policy is to vigorously support the development of the traditional Chinese medicine industry.
However, compared with today's booming chemical medicine innovation, the innovation and development of Chinese patent medicines has been slow to notice
.
Major pharmaceutical companies still focus on marketing rather than R&D, which has a tendency to be left behind by the times
.

However, the development potential of proprietary Chinese medicines is still great
.
When the stock price of Pien Tze Huang soared, Galaxy Securities had analyzed that the sustainable growth of branded Chinese medicines did not lose to innovative medicines
.
Even in the field of prescription drugs, the star varieties of proprietary Chinese medicines are not affected by the patent protection period, and can even compete with some large varieties of chemical drugs
.

Note: The original text has been deleted