JZYY(SH:600750) Guo Ji Jin Rong Bao·2025-10-15 14:04Core Viewpoint - China Resources' Jiangzhong Pharmaceutical has signed an equity transfer agreement to acquire 70% of Anhui Jingcheng Huyao Pharmaceutical for 70.78393 million yuan, with an assessed value increase rate of 140.86% [2][3] Group 1: Acquisition Details - The acquisition of Jingcheng Huyao, established in November 2013 with a registered capital of 51 million yuan, focuses on the R&D, production, and sales of traditional Chinese medicine OTC products, particularly in the health supplement market [3] - Jiangzhong Pharmaceutical aims to integrate high-quality resources in the traditional Chinese medicine industry and enhance its presence in the health supplement sector through this acquisition [3][7] Group 2: Financial Performance - Jiangzhong Pharmaceutical reported total revenue of 2.141 billion yuan in the first half of 2025, a year-on-year decline of 5.79% [4] - The decline in revenue is primarily attributed to a drop in sales of over-the-counter (OTC) products, with the OTC segment generating 1.55 billion yuan, down more than 10% year-on-year [5] - The health consumer products segment experienced a significant revenue drop of nearly 50% in 2024, recovering slightly in 2025 with a 17.35% increase to 228 million yuan [6][7] Group 3: Strategic Adjustments - Jiangzhong Pharmaceutical is also optimizing its existing assets by transferring 100% of its subsidiary, Sanghai Pharmaceutical, and merging it with Jisheng Pharmaceutical to enhance operational efficiency [8] - The company has a weak self-research capability, relying on external acquisitions to fill gaps, with R&D investment in 2024 at 130 million yuan, accounting for less than 3% of revenue [9]