Each reporter: Yue Qi every internship reporter: Lin Zi Chen edited: Chen Junjie

Ji Medicine Holdings (300108, SZ) decided to sell an important subsidiary that helped him into the pharmaceutical track.

On September 27th, Ji Medicine Holdings released the probabilistic announcement on planning major asset existing and signed “shares transfer framework agreements”, which plans to hold Jilin Jinbao Pharmaceutical Co., Ltd. held by Jijinyao Holdings and its subsidiaries (refer to Jinbao Industry) 100% shares transfer to Jilin Province Baili Pharmaceutical Technology Co., Ltd. (Baili Pharmaceutical).

Although the transaction is still in the planning stage, it will eventually be able to still have a variable, but from the amount of the gold, the total assets of Jinbao Pharmaceutical, the total assets of the net assets in 2020, the total assets are expected to exceed 50 %, May constitute a major asset restructuring.

In 2014, Ji Medicine Holdings acquired 100% equity equity in Jinbao Pharmaceuticals and payment cash, and transaction prices were 1.055 billion yuan. The stock of Pharamid Holdings is referred to as Shuanglong Chemical, and the main business is a white carbon black product is one of the main enterprises in the domestic white carbon industry.

Perhaps the development potential of the Chinese medicine industry, after which the Ji Medicine Holdings have acquired a number of pharmaceutical companies such as Liaoning Meilo, Yuanda, Zhejiang, Zhejiang, and Puhua Pharmaceuticals, and officially renamed Ji Medicine Holdings in 2017.

In 2014, it was affected by Jinbao Pharmaceuticals. The business income and net profit of Ji Medicine Holdings were doubled, and net assets were also jumped from 398 million yuan from the beginning of the year to 15.2 billion yuan.

However, this growth has not continued, but in contrast, the Ji Medicine Holdings began to frequently stepping on. As of 18 June, 2021, some debts of Jiji Holdings and their subsidiaries were overdue, arbitration, and 34 bank accounts were frozen; July this year, because the subsidiary Zhejiang Arid did not complete the promise performance during the promise period Wang Ping did not follow the satisfaction of the performance compensation obligation, and the Ji Pei Pei received the attention of the Shenzhen Stock Exchange.

In November 2020, Sun Company Jiangsu, Pizza Pharmaceutical Co., Ltd. was punished by the Jiangsu Provincial Food and Drug Administration by the act of suspected of using unapproved raw materials illegally produced drugs and sales.

According to the announcement, the original intention of the Jinbao Pharmaceuticals in the Ji Medicine Holdings Program is to “improve the difficulties and financial positions faced by the listed company, and enhance the company’s sustained business ability”, and believe that the transaction will further optimize the company’s strategic layout and ensure the company’s future development The fund needs, consolidate the company’s sustainable operation and profitability, ensuring the company’s robust operation.

This is unable to dispel the market all the doubts – in order to improve financial situation, will future Ji Chinese medicine holding a subsidiary? What is the core competitiveness of Ji Medicine Holdings with the acquisition as the main form of expansion company business? What is the future development direction?

For the above problems, the “Daily Economic News” reporter called the Ji Medicine Holding Securities Affairs and sent an interview with an interview. As of the paper, I have not received a reply.

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