Core Viewpoint - The company, Shiyao Innovation Pharmaceutical Co., Ltd. (New Nuo Wei), has decided to terminate its planned acquisition of 100% equity in Shiyao Group Baike (Shandong) Biopharmaceutical Co., Ltd. due to changes in the pharmaceutical industry and capital market environment since the initial planning of the transaction [1][5][6]. Group 1: Acquisition Details - The acquisition was initially announced in January 2024, with the Shenzhen Stock Exchange accepting the application in December 2024 [4]. - The intended transaction price for the acquisition was 7.6 billion yuan, with an additional 1.78 billion yuan planned for fundraising to support cash payments and various projects [5]. - The target company, Shiyao Baike, specializes in the development and commercialization of innovative biopharmaceuticals, particularly long-acting protein drugs [5][6]. Group 2: Financial Performance - Shiyao Baike reported revenues of 2.235 billion yuan, 2.316 billion yuan, and 922 million yuan for the years 2022, 2023, and the first half of 2024, respectively, with net profits of 620.96 million yuan, 784.97 million yuan, and 390.38 million yuan [6]. - The valuation of Shiyao Baike was assessed at 7.62 billion yuan, reflecting a 78.25% increase over its book net assets [6]. - The company noted a decline in revenue and net profit for the first half of 2024, attributed to the impact of provincial alliance procurement policies on the sales of its main product, Jinyouli [6]. Group 3: Company Background and Market Position - New Nuo Wei is a subsidiary of Shiyao Group, which was established in 2006 and has undergone multiple acquisitions of assets from Shiyao Group since its listing [8]. - The company primarily operates in the functional raw materials and health food sectors, with revenues from these areas accounting for 93% of its total income in 2024 [12]. - Despite entering the biopharmaceutical sector, the revenue from this segment remains minimal, contributing less than 5% to total revenue [12].