Core Viewpoint - Jiangzhong Pharmaceutical (600750) announced the acquisition of 70% equity in Anhui Jingcheng Huyao Pharmaceutical Co., Ltd. for a price not exceeding 70.78393 million yuan, aiming to enhance its OTC product matrix with traditional Chinese medicine products [1] Group 1: Acquisition Details - The acquisition will allow Jiangzhong Pharmaceutical to supplement its product offerings in the traditional Chinese medicine sector, particularly in the health supplement category [1] - Anhui Jingcheng Huyao, established in November 2013 with a registered capital of 51 million yuan, focuses on the R&D, production, and sales of traditional Chinese medicine [1] - The core products of Jingcheng Huyao include Liuwei Dihuang Oral Liquid, Nao Li Jing Syrup, and Nao Li Jing Capsules [1] Group 2: Company Background - Jingcheng Huyao was previously known as Bengbu Traditional Chinese Medicine Factory, founded in 1968, and was fully acquired by Peitian Group in 2015 [1] - The company was listed on the Specialized and New Board of Anhui Stock Custody Center in October 2021 [1] Group 3: Operational Challenges - Peitian Group, the current owner of Jingcheng Huyao, has faced operational difficulties due to poor management, market changes, and heavy debt burdens, leading to a debt crisis in 2018 [3] - The company underwent a restructuring process initiated by the government and asset management companies to address its financial issues [3] - As part of the restructuring plan, the court approved a merger and restructuring plan for Peitian Group and its subsidiaries, including Jingcheng Huyao, in September 2024 [3]