Jilin Pharmaceutical Holdings intends to acquire and revise Jilins richest man or backdoor listing

category:Finance
 Jilin Pharmaceutical Holdings intends to acquire and revise Jilins richest man or backdoor listing


Revised Pharmaceutical Official Website shows that Xiu Lianggui, chairman of the company, was founded as a large-scale modern private pharmaceutical enterprise, which integrates the research, production and marketing of proprietary drugs, chemical pharmaceuticals and biopharmaceuticals, drug chain operation and standard cultivation of traditional Chinese medicines.

Xiu Lianggui used to be a traffic policeman. In 1995, Xiu Lianggui took off his police uniform and contracted a small pharmaceutical factory in Tonghua City with fixed assets of 200,000 yuan and liabilities of up to 4 million yuan. After years of development, it eventually became todays pharmaceutical group.

The controlling shareholders of the revised pharmaceutical industry are Tonghua Modified Industrial Co., Ltd. with a 70% share-holding ratio; Xiu Liangui, Li Yanhua, Wang Huanyu and Chen Lianchen hold 29.518%, 0.4%, 0.06% and 0.022% shares respectively. Xiu Lianggui and Li Yanhua are husband and wife relations. They have been ranked first on the list of Jilins richest people for many years, and they are known as the richest man in Jilin Province. Industry and commerce data show that Xiu Lianggui and Li Yanhua hold 98% and 2% of Tonghua Modified Industrial Co., Ltd. respectively.

As of July 10, the total equity of Jiyao Holdings was 660 million shares, with a total market value of 3.6 billion yuan. Last year, the revenue and net profit of Jiyao Holdings were 942 million yuan and 217 million yuan, respectively. At the end of the first quarter of this year, the assets of Jiyao Holdings were 5.063 billion yuan. In contrast, the volume of the revised pharmaceutical industry is relatively larger, and the transaction may constitute a reorganized listing.

The predecessor of Jiyao Holdings is Shuanglong Stock Company, which is one of the enterprises that produce precipitated silica for national defense chemical industry. In 2014, Ssangyong shares purchased 97.71% of Jinbao Pharmaceutical by issuing shares and cash. It took the opportunity to enter the pharmaceutical industry and began to turn from chemical industry to pharmaceutical industry. In 2017, the listed company, which has changed its name from Shuanglong Share to Jiyao Holdings, took the remaining 2.29% of Jinbao Pharmaceutical, and the deal was completed in December 2017.

In recent years, Jiyao Pharmaceutical Holdings has taken the pharmaceutical industry (including Chinese and Western patent medicines, APIs, biopharmaceuticals), pharmaceutical commerce (wholesale services), pharmaceutical terminal chains and medical and health care industries as its strategic orientation for development, and has been developing foreign mergers and acquisitions.

In January 2018, Jiyao Holdings increased its investment in Haitong Pharmaceutical Co., Ltd. by investing 67.0625 million yuan and holding 10% of Haitong Pharmaceutical Co., Ltd. in April 2018, it announced that it would buy 70% of Yuanda Kanghua (Beijing) Pharmaceutical Co., Ltd. for 12.6 million yuan. In June 2018, Jiyao Holdings announced that it would buy 70% of Liaoning Meiluo Pharmaceutical Supply Co., Ltd. for 28 million yuan in cash. In September 2018, it announced that it would pay cash to buy 99.68% of the shares held by 46 natural persons, such as Yang Hua, with a tentative price of 618 million yuan.

After a series of foreign acquisitions, Jiyao Holdings disclosed in May this year the news of the change of control rights, just as many people were concerned about the extension expansion of Jiyao Holdings in the future.

After the transfer of shares, Luzhongkui and Huang Kefeng intend to take 95.163 million shares of the remaining shares, accounting for 14.29% of the total share capital of Jiyao Holdings (including the shares increased by the above shares due to allotment, share-offering, share-adding, etc.) and their corresponding voting rights, nomination and proposal rights, participation rights, supervision and suggestion rights, as well as the right to divide income, share transfer and share-adding rights. Other rights besides property rights such as pledge guarantee are entrusted to Geisseng Capital Management to exercise.

Jisheng Capital Management is a 100% state-owned enterprise owned by SASAC of Jilin Province. If the transfer of shares is finally completed, the controlling shareholder of Jiyao Holdings will become Jisheng Capital Management, and the actual controller will be changed to Jilin SAC.