Core Viewpoint - Koyuan Pharmaceutical's acquisition of Shandong Hongjitang Pharmaceutical Group has been terminated after over a year of planning due to changes in the overall market environment, impacting both companies' future prospects [4][5][6]. Group 1: Acquisition Details - Koyuan Pharmaceutical announced the termination of the acquisition of 99.42% of Hongjitang's shares, which was valued at approximately 3.581 billion yuan [5]. - The company had planned to issue shares to 38 counterparties, including Linuo Investment and Linuo Group, to finance the acquisition [5]. - The termination was decided after careful consideration and discussions with all parties involved, aiming to protect the long-term interests of shareholders [5][6]. Group 2: Impact on Koyuan Pharmaceutical - The termination of the acquisition means Koyuan Pharmaceutical's plans to optimize product layout and reduce operational costs will not materialize [6]. - Koyuan Pharmaceutical's revenue and net profit have declined in the first three quarters of the year, with revenue at approximately 303 million yuan, down 8.52%, and net profit at about 31.47 million yuan, down 20.69% [9]. - The expected financial benefits from the acquisition included a projected revenue increase to 1.745 billion yuan in 2024, a 276.34% rise, and a net profit increase to 168 million yuan, a 177.86% rise [9]. Group 3: Hongjitang's Market Position - This marks the second failed attempt for Hongjitang to achieve a "backdoor listing" [7]. - Hongjitang specializes in the research, production, and sales of traditional Chinese medicine and health products [7]. - The company has faced challenges in entering the capital market, with previous attempts at IPOs in 2021 and 2024 not succeeding [8]. Group 4: Future Prospects - Following the termination, Hongjitang's entry into the capital market is delayed, potentially affecting its valuation and market confidence [8]. - Future strategies for Hongjitang may include pursuing independent IPOs or seeking mergers with other companies in the industry to achieve a backdoor listing [8].
科源制药终止并购宏济堂，“力诺系”资本整合遇阻