Core Viewpoint - Lishang Guochao (600738) plans to invest 30 million yuan to acquire a 30% stake in Parmeido (Chengdu) Biotechnology Co., Ltd., raising concerns over the high valuation and performance commitments associated with the transaction [1][2]. Valuation Concerns - The transaction involves a 39-fold premium, with Lishang Guochao's subsidiary, Lishang Holdings, investing 30 million yuan for a 30% stake, implying a total valuation of Parmeido at 100 million yuan [2][3]. - The Shanghai Stock Exchange has requested Lishang Guochao to justify the fairness of the transaction price in comparison to industry peers and earnings multiples [3][4]. Performance Commitments - Parmeido has set ambitious performance commitments for the next three years, with projected revenues of 10 million yuan, 30 million yuan, and 50 million yuan, and corresponding net profits of 1.02 million yuan, 3.36 million yuan, and 6.04 million yuan [4]. - In contrast, Parmeido's actual revenue for 2020 was only 298.65 million yuan, raising questions about the feasibility of these commitments [4]. Company Background and Ownership Structure - Parmeido was established in July 2017, while its major shareholder, Yijimei, was founded in March 2018, leading to inquiries about the timing of the investment and the due diligence conducted [5][6]. - The ownership structure indicates that Yijimei's stake in Parmeido will decrease from 100% to 70% post-investment, with the legal representative being the same individual for both companies [5][6]. Financial Performance of Lishang Guochao - Lishang Guochao reported a significant decline in net profit for 2020, amounting to approximately 86.66 million yuan, a drop of 64.81% year-on-year, largely attributed to the impact of the COVID-19 pandemic [6].