Core Viewpoint - New Tian Pharmaceutical (002873.SZ) is increasing its investment in Shanghai Huilun Pharmaceutical Co., Ltd. through a plan to use 40 million yuan for equity investment, despite previous failed attempts to gain full control of Huilun Pharmaceutical [1][2]. Investment Details - After this investment, New Tian's total investment in Huilun will reach 360 million yuan, increasing its shareholding to 15.4567% [2][7]. - The investment will be executed through a combination of capital increase and share acquisition, with 20 million yuan allocated for capital increase and another 20 million yuan for share purchase from a shareholder [3][7]. - Other investors, including Yantai Tianzi Huilai Venture Capital and Beijing Jinhui Feng Investment Management, will also participate in this round of funding, contributing a total of 72 million yuan at a price of 8.5 yuan per share [3]. Historical Context - New Tian has made multiple investments in Huilun since early 2020, with the most recent failed attempt at a full acquisition in March 2024 [1][6]. - The company has previously invested 20 million yuan for a 1.98% stake, followed by additional investments that increased its stake to 14.5971% before this latest round [4][7]. Financial Performance - New Tian's revenue and net profit have been declining for two and a half years, with a reported revenue of 358 million yuan in the first half of 2025, down 18.88% year-on-year, and a net profit of 5.77 million yuan, down 80.99% [2][9]. - Huilun's financial performance has also been volatile, with a net loss of 19.29 million yuan in the first half of 2025 and a significant drop in revenue and profit in recent years [2][8][9]. Strategic Rationale - New Tian aims to enhance its competitiveness in the small molecule drug sector through this investment, focusing on areas such as oncology and cardiovascular diseases [2][8]. - The investment is seen as a strategic move to position New Tian as a leading comprehensive pharmaceutical enterprise, despite the challenges faced by both companies [8][9].

Core Viewpoint - New Tian Pharmaceutical (002873.SZ) is increasing its investment in Shanghai Huilun Pharmaceutical Co., Ltd. (Huilun Pharmaceutical), a company controlled by its actual controller, Dong Dalun, through a capital increase and share transfer, despite previous failed attempts to fully acquire it [1][2]. Investment Details - The company plans to invest 40 million yuan, which will bring its total investment in Huilun Pharmaceutical to 360 million yuan, increasing its shareholding to 15.4567% [2][3]. - The investment will be executed through a capital increase of 20 million yuan for 235,294 shares and a share transfer of 20 million yuan for the same number of shares from a shareholder [3][4]. Financial Performance - New Tian Pharmaceutical reported a revenue of 358 million yuan in the first half of 2025, a decrease of 18.88% year-on-year, and a net profit of 5.77 million yuan, down 80.99% year-on-year, marking two and a half years of continuous decline [2][10]. - Huilun Pharmaceutical has shown significant revenue fluctuations, with revenues of 414 million yuan, 998 million yuan, 768 million yuan, and 391 million yuan from 2022 to the first half of 2025, and net profits of -264 million yuan, 30.83 million yuan, 6.53 million yuan, and -19.29 million yuan in the same period [8][10]. Strategic Rationale - The investment aims to enhance New Tian Pharmaceutical's competitiveness in the small molecule drug sector, particularly in areas such as oncology and cardiovascular diseases, as Huilun Pharmaceutical has developed several promising chemical drug pipelines [8][10]. - The pre-investment valuation of Huilun Pharmaceutical is 3.36 billion yuan, which represents a 2.95 times increase compared to the initial investment valuation five years ago [10].

Core Viewpoint - The company is planning to increase its investment in Shanghai Huilun Pharmaceutical Co., Ltd. through a capital increase and share transfer, which is expected to enhance its competitiveness in the small molecule drug sector, particularly in the fields of oncology, cardiovascular, respiratory, and digestive system diseases [1][2]. Summary by Relevant Sections - **Investment Details** - The company will use its own funds of 40 million yuan for the investment, which includes 20 million yuan for acquiring 2,352,941 shares from Hubei Pinghu Venture Capital Co., Ltd. [1][2]. - **Transaction Classification** - The capital increase is classified as a related party transaction, while the share acquisition does not directly constitute a related party transaction but is subject to related transaction regulations [2]. - **Compliance and Fairness** - The agreements for the capital increase and share transfer are in compliance with relevant laws and regulations, ensuring that the pricing is fair and does not harm the interests of the company or its shareholders, particularly minority shareholders [2][3].