Core Viewpoint - The blood product giant, Palin Biotech, is set to be acquired by China National Pharmaceutical Group (Sinopharm), marking another change in ownership within two years [1][2]. Group 1: Ownership Change - On June 9, Palin Biotech announced that its controlling shareholder, Shengbang Yinghao Investment Partnership, plans to transfer 21.03% of its shares to China National Biotechnology Co., Ltd [1]. - If the transaction proceeds, the controlling shareholder will shift from Shengbang Yinghao to China National Biotechnology, with the actual controller changing from the Shaanxi Provincial State-owned Assets Supervision and Administration Commission to Sinopharm [1]. - This marks the second ownership change for Palin Biotech in less than two years, following a previous transfer of 20.99% of shares to Shengbang Yinghao in March 2023 [2]. Group 2: Financial Performance - In 2024, Palin Biotech reported a revenue of 2.655 billion yuan, a year-on-year increase of 14%, and a net profit of 745 million yuan, up 21.76%, marking seven consecutive years of profit growth [3]. - However, in Q1 2025, the company experienced a revenue decline of 14% to 375 million yuan and a net profit decrease of 26.95% to approximately 89.09 million yuan [3]. - The decline in Q1 2025 is attributed to insufficient production capacity to meet growing demand, prompting expansion efforts at its subsidiaries [3]. Group 3: Capacity Expansion - Palin Biotech is currently expanding production capacity at its subsidiaries, with the second phase of expansion at Paisfiko expected to be completed before the 2025 Spring Festival [3]. - The second phase expansion at Guangdong Shuanglin is anticipated to commence production in mid-2025, increasing annual capacity to 1,500 tons, contributing to a total capacity exceeding 3,000 tons [3]. - This expansion aims to support the company's growth and ensure sustainable long-term development [3]. Group 4: Regulatory Compliance - In May 2023, Palin Biotech faced penalties due to internal control issues leading to inaccurate information disclosure [3]. - The company submitted a rectification report on June 3, 2023, committing to enhance internal compliance management and improve information disclosure practices [4].