Yifeng Pharmacy Chain Co.Ltd(603939) , Jiuzhitang Co.Ltd(000989) announced on the evening of April 24 that Yifeng Pharmacy Chain Co.Ltd(603939) plans to acquire 5% equity of Jiuzhitang Co.Ltd(000989) and 51% equity of Hunan Jiuzhitang Co.Ltd(000989) subsidiary.
According to the announcement, Yifeng Pharmacy Chain Co.Ltd(603939) plans to acquire Jiuzhitang Co.Ltd(000989) shares held by Li Zhenguo, the actual controller of Jiuzhitang Co.Ltd(000989) at the price of 428 million yuan, accounting for 5% of the total share capital of Jiuzhitang Co.Ltd(000989) of Jiuzhitang Co.Ltd(000989) .
For the acquisition of Jiuzhitang Co.Ltd(000989) 5% equity, Yifeng Pharmacy Chain Co.Ltd(603939) said that the transaction will promote the company to further expand upstream channels, carry out more extensive business cooperation with Jiuzhitang Co.Ltd(000989) and carry out in-depth cooperation in the production and sales of industrial varieties, so as to improve the company's differentiated competitiveness of goods.
Meanwhile, Yifeng Pharmacy Chain Co.Ltd(603939) plans to acquire Jiuzhitang Co.Ltd(000989) shares in Hunan Jiuzhitang Co.Ltd(000989) 51%, with a transaction price of 204 million yuan.
According to the announcement, the operating revenue of Hunan Jiuzhitang Co.Ltd(000989) 2021 was 1.044 billion yuan. Among them, the direct retail business is 520 million yuan, the wholesale business is 282 million yuan, the franchise distribution is 120 million yuan, the B2C business is 70 million yuan, and the health building business is 30 million yuan.
At present, Hunan Jiuzhitang Co.Ltd(000989) has two subsidiaries, Hunan Jiuzhitang Co.Ltd(000989) retail chain Co., Ltd. and Changde Jiuzhitang Co.Ltd(000989) Pharmaceutical Co., Ltd., which are engaged in drug retail and drug wholesale business respectively, with 190 direct chain stores and 359 franchise stores, all located in Hunan Province.
The announcement shows that the above subsidiaries of Hunan Jiuzhitang Co.Ltd(000989) are 90% owned by Hunan Jiuzhitang Co.Ltd(000989) and 10% owned by Jiuzhitang Co.Ltd(000989) respectively. According to relevant agreements, after the signing of the acquisition agreement, Jiuzhitang Co.Ltd(000989) will change Hunan Jiuzhitang Co.Ltd(000989) retail chain Co., Ltd. and Changde Jiuzhitang Co.Ltd(000989) Pharmaceutical Co., Ltd. into wholly-owned subsidiaries invested by Hunan Jiuzhitang Co.Ltd(000989) as soon as possible.
According to the forecast, after the business integration is completed, it is expected that the sales volume of Hunan Jiuzhitang Co.Ltd(000989) in the first year will not be less than 1.137 billion yuan and the net profit will not be less than 18.4 million yuan.
Yifeng Pharmacy Chain Co.Ltd(603939) said that after the completion of this transaction, the two sides will form a joint force in Hunan market to further consolidate the company's leading advantage in Hunan market, help to enhance the company's profitability and improve the company's competitive strength in the industry.
Jiuzhitang Co.Ltd(000989) said that after the completion of the transaction, the retail stores of Jiuzhitang Co.Ltd(000989) in Hunan will accelerate regional expansion on the existing basis, which is conducive to the extension and enhancement of the influence of " Jiuzhitang Co.Ltd(000989) brand". At the same time, it is conducive to the expansion of the company's products in Yifeng Pharmacy Chain Co.Ltd(603939) retail channels and the strengthening of the degree of cooperation.
