Promoting the strategy of Refocusing, humanwell plans to acquire 13percent equity of Yichang humanwell

category:Finance
 Promoting the strategy of Refocusing, humanwell plans to acquire 13percent equity of Yichang humanwell


Li qianlun, vice president and Secretary of the board of Renfu pharmaceutical, said in an interview with economic observer that the acquisition is a major measure for the group to implement the Refocusing strategy and focus on core business, which is conducive to concentrating resources to develop established professional subdivisions, promoting business focus and asset optimization, optimizing and integrating resource allocation, improving decision-making efficiency and overall management of listed companies Efficiency, ensure the effective integration of resources and technology, improve the overall value of listed companies.

According to the Economic Observer network, since 2017, humanwell has been adhering to the Refocusing strategy. On the one hand, it has successively stripped off non core pharmaceutical assets and continuously optimized its business and capital structure; on the other hand, it has insisted on concentrating resources to develop established professional subdivisions to achieve business focus. Yichang humanwells main narcotic drugs and other narcotic drugs have significant clinical value and broad market prospects, and have been one of the important sources of profit for listed companies. After the completion of the transaction, the shareholding ratio of the listed company to Yichang Renfu will rise to 80%, and the owners equity of the Listed Company attributable to the owners of the parent company and the net profit attributable to the shareholders of the parent company will be increased.

More than that, this transaction will further stimulate the core management of Renfu pharmaceutical and Yichang Renfu. According to the Economic Observer network, Li Jieyuan, President of Renfu Pharmaceutical Co., Ltd., and chairman of Yichang Renfu Pharmaceutical Co., Ltd., Chen Xiaoqing, vice president of Yichang Renfu, and Xu Huabin, vice president of the listed company and concurrently director of Yichang Renfu, are all listed companies or the core management of Yichang Renfu. Through this transaction, the above listed companies and the core management of Yichang humanwell will directly hold shares of listed companies instead of directly holding shares of Yichang humanwell. The interests of the above personnel will be directly bound with the future development of listed companies and maintain a high degree of consistency.

In fact, based on the companys development strategy of Refocusing, while increasing its core assets, Renfu Pharmaceutical Group is also stripping non core assets simultaneously. Recently, humanwell pharmaceutical group sold its 70% stake in Sichuan Renfu to Zhongyao holdings. Listed companies will receive 362 million yuan of equity transfer funds, recover about 300 million yuan of loans from subsidiaries, and reduce interest bearing debts by about 1 billion yuan. This is conducive to the listed companies to further optimize the structure of assets and liabilities, concentrate resources and develop the subdivision areas with competitive advantages. While announcing its intention to acquire 13% equity of Yichang humanwell, humanwell also disclosed a directional additional issuance plan -- the listed company humanwell pharmaceutical intends to raise no more than 1 billion yuan of supporting funds from the non-public offering of shares to the controlling shareholder of contemporary group. After deducting the relevant intermediary agency fees and relevant taxes, the raised matching funds are intended to be used for Yichang Renfu small volume injection preparation international standard students Production base project construction and supplement the working capital of listed companies. Humanwell pharmaceutical commented in the announcement that if the non-public offering of shares to raise matching funds is successfully implemented, the asset structure of listed companies will be further optimized; with the completion of Yichang humanwell small volume injection preparation international standard production base project, the profitability of listed companies will be further improved. Source: Economic Observer, editor in charge: Yang Bin_ NF4368

While announcing its intention to acquire 13% equity of Yichang humanwell, humanwell also disclosed a directional additional issuance plan -- the listed company humanwell pharmaceutical intends to raise no more than 1 billion yuan of supporting funds from the non-public offering of shares to the controlling shareholder of contemporary group. After deducting the relevant intermediary agency fees and relevant taxes, the raised matching funds are intended to be used for Yichang Renfu small volume injection preparation international standard students Production base project construction and supplement the working capital of listed companies.

Humanwell pharmaceutical commented in the announcement that if the non-public offering of shares to raise matching funds is successfully implemented, the asset structure of listed companies will be further optimized; with the completion of Yichang humanwell small volume injection preparation international standard production base project, the profitability of listed companies will be further improved.