Huang Shubiao, Xiao Qingguang, Wu Kaijian, and Huang Linggang completed the acquisition of 95% stake in Guangdong Yueerkang Pharmaceutical Co., Ltd. from Hunan Er-Kang Pharmaceutical Co., Ltd.
September 24, 2020
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Huang Shubiao, Xiao Qingguang, Wu Kaijian, and Huang Linggang agreed to acquire 95% stake in Guangdong Yueerkang Pharmaceutical Co., Ltd. from Hunan Er-Kang Pharmaceutical Co., Ltd (SZSE:300267) for approximately CNY 100 million on August 27, 2020. As per the terms, the first installment on August 27, 2020, buyers will pay Hunan Er-Kang Pharmaceutical Co., Ltd a one-time payment of 50% of the equity purchase of CNY 50.4 million and the second installment will be paid before September 22, 2020, and after Hunan Er-Kang Pharmaceutical Co., Ltd's board of directors and the general meeting of shareholders have reviewed and approved this equity purchase, buyers shall pay Hunan Er-Kang Pharmaceutical Co., Ltd the remaining 50% of the equity purchase amount of CNY 50.3 million. Post acquisition Huang Shubiao will hold 35% stake, Xiao Qingguang will hold 20% stake, Wu Kaijian will hold 20% stake, Huang Linggang will hold 20% stake and Hunan Er-Kang Pharmaceutical Co., Ltd will hold 5% stake in Guangdong Yueerkang Pharmaceutical Co., Ltd. As of December 31, 2020, Guangdong Yueerkang Pharmaceutical Co., Ltd. has net loss of CNY 4.4 million, total assets of CNY 80.4 million, net assets of CNY 2.4 million and operating revenue of CNY 0.19 million. The transaction is subject to Hunan Er-Kang Pharmaceutical Co., Ltd's shareholders approval and had been approved in Hunan Er-Kang Pharmaceutical Co., Ltd's ninth meeting of the fourth board of directors and the ninth meeting of the fourth board of supervisors.
Huang Shubiao, Xiao Qingguang, Wu Kaijian, and Huang Linggang completed the acquisition of 95% stake in Guangdong Yueerkang Pharmaceutical Co., Ltd. from Hunan Er-Kang Pharmaceutical Co., Ltd (SZSE:300267) on September 24, 2020.
HUNAN ER-KANG PHARMACEUTICAL CO., LTD. is principally engaged in the research, development, production and sales of pharmaceutical excipients, finished drugs and bulk drugs. The Companyâs pharmaceutical excipients mainly consist of glycerol for medicine, sugar for medicine, ethanol for medicine, propylene glycol for medicine, as well as sodium hydroxide for medicine and others. Its bulk drugs consist of sulfadiazine, sulphaguanidine and resorcinol, among others. Its finished drugs consist of sulbenicillin sodium injections and compound liquorice tablets. The Company distributes its products in domestic market and to overseas markets.