On March 6, Lbx Pharmacy Chain Joint Stock Company(603883) announced that it planned to acquire 719643% of the equity of Hunan Huairen Great Health Industry Development Co., Ltd. (hereinafter referred to as the “target company”) held by 14 counterparties including Lin Chengxiong and Chen Jianping with its own capital of RMB 1.637 billion (including loans). Upon the completion of the acquisition, Lbx Pharmacy Chain Joint Stock Company(603883) will officially acquire the leading regional chain drugstore across Hunan Guizhou region.
According to relevant research reports, Huairen health has more than 660 self operated pharmacies in Hunan and Guizhou, which will effectively fill the market of Lbx Pharmacy Chain Joint Stock Company(603883) in Western Hunan and consolidate the voice of Hunan base camp. After the completion of this transaction, Lbx Pharmacy Chain Joint Stock Company(603883) will rank first in the number of seven stores in 14 prefectures and cities of Hunan Province. The number of stores in Hunan Province is expected to exceed 3000 (including franchisees), becoming the chain pharmacy enterprise with the first number of stores in Hunan Province.
According to the audit, Huairen health achieved an operating revenue of 1.402 billion yuan and 1.079 billion yuan and a net profit of 99.992 million yuan and 58.499 million yuan from January to September of 2020 and 2021 respectively. Meanwhile, the performance commitment party promises that the net profit from 2022 to 2024 will not be less than 110 million yuan, 131 million yuan and 152 million yuan respectively, and the average annual compound growth rate of performance from 2021 to 2024 will be about 20.17%.
Lbx Pharmacy Chain Joint Stock Company(603883) said that this transaction is in line with the company’s overall development strategy. The target company will effectively fill the relatively blank area covered by the company’s marketing network in Hunan, and can effectively form regional joint forces, further expand the company’s market in Hunan and improve its market share. At the same time, the acquisition will greatly improve the company’s scale and procurement scale in the national pharmaceutical retail market, reduce procurement costs and improve the company’s overall profitability.
In recent years, relying on the world bank’s long-term loans and direct financing funds and the public offering of 1.74 billion yuan at the beginning of this year, Lbx Pharmacy Chain Joint Stock Company(603883) is orderly promoting the expansion of chain pharmacies. On the one hand, it acquires the regional leaders of high-quality chain pharmacies, and on the other hand, it accelerates the expansion of self built stores and franchise stores.
The equity acquisition of Huairen dahealth is the benchmark of Lbx Pharmacy Chain Joint Stock Company(603883) holding spark acquisition mode. After the transaction is completed, Lin Chengxiong, founder of Huairen dahealth, will still retain 124857% equity Lbx Pharmacy Chain Joint Stock Company(603883) president Wang Li introduced that by retaining part of the equity of the original founder and holding and acquiring regional leading enterprises through the “spark” mode of strong empowerment of the group headquarters, Lbx Pharmacy Chain Joint Stock Company(603883) realized cross provincial expansion and deep cultivation of advantageous markets, and continued to give full play to the founder’s enthusiasm for secondary entrepreneurship and local resource advantages.
