On January 22, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) announced that due to the litigation dispute between Weina Hong Kong Co., Ltd. and Li shanyong, the company plans to terminate the acquisition of Shanghai Weina company of 700 million yuan.
Affected by this news, as of the closing on January 24, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) shares closed at 7.15 yuan / share, down 0.97%, with a total market value of 5.094 billion yuan.
According to the announcement, during the due diligence period, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) found that there was a lawsuit dispute between Weina Hong Kong Co., Ltd. and Li shanyong and it was not concluded.
In order to safeguard the legitimate rights and interests of the company, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) sent letters to Weina Hong Kong Co., Ltd. and Li shanyong twice on January 5 and 14, 2022, asking them to make a true, complete and accurate explanation to the company about the above events, express apology to the company and compensate the company for the direct economic losses caused by this acquisition.
Weina Hong Kong Limited and Li shanyong failed to make any response within the specified time limit, nor did they explain or express their apologies to the company. In order to protect the legitimate rights and interests of the company and all shareholders, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) decided to terminate this acquisition.
According to public information, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) was listed in 1999 and its main business is drug R & D, production and sales; R & D, production and sales of organic pigments, dyes and their intermediates.
However, in recent years, the company has frequently pursued popular tracks. From the “anti-cancer drug” to the “radiation protection” of the market, this enterprise is trying to participate. From 2020 to 2021, due to the hot track of medicine and medical beauty, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) medicine announced that the company established the development strategy and industrial layout with “medicine + medical beauty” as the company’s core business, focused on cultivating the upstream product end of medical beauty as an emerging large health sub industry, and focused on the upstream product end of non-surgical medical beauty, focusing on injection, makeup Functional cosmetics, devices and other directions to find high-quality M & a resources in all dimensions.
The acquisition of Shanghai Weina originated in 2021. On September 28, 2021, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) announced that Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) signed the equity acquisition intention agreement with Weina Hong Kong Co., Ltd. and Shanghai Weina Cosmetics Co., Ltd.
Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) and Weina Hong Kong tentatively set the acquisition consideration of 100% equity of Shanghai Weina at about RMB 700 million. Weina Hong Kong now holds 100% equity of Shanghai Weina, and the company or its wholly-owned subsidiary plans to acquire no less than 70% equity of Shanghai Weina. The final purchase price of the target equity shall refer to the evaluation report issued by the evaluation institution with the qualification of securities and futures related business, which shall be separately determined by both parties through negotiation. Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) pay the acquisition consideration in cash or by issuing shares.
Statistics show that Shanghai Weina’s main business is the R & D, production and sales of cosmetics products. Its public business scope includes professional skin care (including basic skin care products and color cosmetics) and life health. It focuses on Korean brands. The application field of products is mainly female nursing, while taking into account the radiation of multiple age groups Multi level nursing needs of people of different genders.
It is reported that Shanghai Weina achieved an operating revenue of 465 million yuan and a net profit of 137 million yuan in 2020. This is a great help for Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) aiming to enter the medical and beauty industry.
At the same time, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) plans to spend 100 million yuan to establish a subsidiary of medical beauty technology. The business scope of the subsidiary includes: the business of class III medical devices, the wholesale, import and export, commission agency and related supporting business of cosmetics, class I and class II medical devices and personal hygiene products, international trade, etc.
From this point of view, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) entered the field of cosmetics through the acquisition of Shanghai Weina, which is in line with the previous hand in hand with South Korea humedix. It plans to extend its medical beauty business to postoperative care and daily care, and layout the “great beauty” track.
For the acquisition intention of Shanghai Weina, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) said that it is conducive to accelerating the implementation of the company’s medical beauty industry strategy and large-scale operation layout, and expanding the company’s medical beauty sector product pipeline. At the same time, with the help of Shanghai Weina’s sales network and channels, other medical and beauty products of the company can be quickly introduced in the follow-up, so as to accelerate the formation of a collaborative, complementary and rapid development medical and beauty industry layout.
In essence, from the perspective of business performance, the performance of Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) has been declining. From 2016 to 2020, its revenue was 3.99 billion yuan, 2.96 billion yuan, 1.7 billion yuan, 2.1 billion yuan and 1.87 billion yuan, and the net profit attributable to the parent company was 70 million yuan, 130 million yuan, – 290 million yuan, 65 million yuan and – 510 million yuan. It can be seen that the company is eager to find new growth points.
Since 2021, relying on the concept of medical beauty, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) has increased significantly in the secondary market. In February 2021, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) had a minimum share price of 4.27 yuan / share, but by October, its share price had a maximum rise of 10.12 yuan / share, an increase of 137%.
In 2015, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) also rubbed the hot spot of “anti-cancer drug” Su Rongjia, and the share price also soared at that time. Later, the magic medicine ended. Now the concept of medical beauty should also be dumb?
In November 2021, Jiangsu Wuzhong Pharmaceutical Development Co.Ltd(600200) announced that Mr. Yao Jianlin, vice chairman, resigned. The third quarterly report released by the company shows that the revenue in the first three quarters was 1.47 billion yuan, and the net profit attributable to the shareholders of the listed company was 49.39 million yuan. Among them, the revenue in the third quarter was 433 million yuan, the net profit attributable to shareholders was – 20.21 million yuan, and the net profit deducted was – 31.4118 million yuan.
