On November 21, China Resources Pharmaceutical issued the "Latest Information on the Proposed Internal Restructuring of its China Resources Shenghuo" announcement.

China Resources Sanjiu and Kunming Pharmaceutical Group have entered into an equity transfer agreement. China Resources Sanjiu has conditionally agreed to sell, and Kunming Pharmaceutical Group has conditionally agreed to acquire 51% of the equity of China Resources Shenghuo, with a total price of 1.791 billion yuan (equivalent to approximately HK$1.938 billion). It is expected that China Resources Sanjiu will use the funds to supplement operating funds.

After the internal restructuring is completed, China Resources Pharmaceutical's interest in China Resources Shenghuo will be reduced from approximately 63.02% to 39.90%, and China Resources Shenghuo will remain a non-wholly owned subsidiary of China Resources Pharmaceutical.

On the same day, China Resources Sanjiu announced that it had signed the "Equity Transfer Agreement between China Resources Sanjiu Pharmaceutical Co., Ltd. and Kunming Pharmaceutical Group Co., Ltd. on Kunming China Resources Shenghuo Pharmaceutical Co., Ltd." with Kunming Pharmaceutical Group Co., Ltd.

At this point, the asset integration of the two pharmaceutical companies under the "China Resources Group" has been settled.

China Resources Pharmaceutical believes that this internal reorganization will help accelerate the integration of the Panax notoginseng industry chain, further enhance the influence of its Panax notoginseng products in the market, and promote the high-quality development of the Chinese medicine industry chain represented by Panax notoginseng products.

Although this is an internal integration of China Resources Sanjiu based on the progress of Panax notoginseng industry resources, on the one hand, it solves the problem of competition in the same industry, and on the other hand, it may affect the future direction of the external market competition pattern. Kunming Pharmaceutical Group can use this to unify the market for Xuesetong soft capsules.

Following the development mode of endogenous development + external expansion of the "China Resources Group", Kunming Pharmaceutical Group revealed that it does not rule out the plan of external mergers and acquisitions, and will focus on cardiovascular and cerebrovascular, skeletal muscle and other directions in the future.

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