Home » Accelerating the expansion and consolidating the Hunan market, the people plan to acquire Huairen Health by holding a controlling stake of 1.637 billion yuan_Stock Channel_Securities Star

Accelerating the expansion and consolidating the Hunan market, the people plan to acquire Huairen Health by holding a controlling stake of 1.637 billion yuan_Stock Channel_Securities Star

by admin

(Original title: Accelerating the expansion and consolidating the Hunan market, the people plan to acquire Huairen Health by holding a controlling stake of 1.637 billion yuan)

Common People (603883) continues to take the pace of mergers and acquisitions. The target of mergers and acquisitions is in Hunan, which will further consolidate the company’s right to speak in Hunan’s base camp.

On the evening of March 6, the common people announced that they planned to acquire the Hunan Huairen Great Health Industry Development Co., Ltd. (hereinafter referred to as “Huairen Health Industry Development Co., Ltd.”) held by 14 counterparties including Lin Chengxiong and Chen Yuping with its own funds of 1.637 billion yuan (including loans). Renta Health”) 71.96% stake.

Data shows that Huairen Great Health has more than 660 self-operated pharmacies in Hunan and Guizhou, which will fill the market of ordinary people in the western region of Hunan.

After the completion of this transaction, the common people will be ranked first in the number of 7 stores in 14 prefectures and cities in Hunan Province, and the number of stores in Hunan Province is expected to exceed 3,000 (including franchise), becoming the largest chain pharmacy in Hunan Province. enterprise.

Consolidate the Hunan market

Before the completion of this transaction, the common people held 4.16% equity of Huairen Great Health. After the completion of this transaction, the common people will hold 76.12% of the equity of Huairen Great Health.

After auditing, Huairen Great Health achieved operating income of 1.402 billion yuan and 1.079 billion yuan in 2020 and January-September 2021 respectively; net profit was 99.992 million yuan and 58.499 million yuan.

See also  Italy: desalination as a solution to the water crisis

At the same time, the performance commitment parties Lin Chengxiong, Chen Yuping, Huaihua Renxin, and Huaihua Renshu made commitments to the future performance of Huairen Health: 2022-2024 net profit (referring to the net profit attributable to shareholders of the parent company after deducting non-recurring profits and losses after auditing) Profits) are not less than 110 million yuan, 131 million yuan, and 152 million yuan respectively, and the average annual compound growth rate of performance from 2021 to 2024 is about 20.17%.

The common people said that this transaction is in line with the company’s overall development strategy, and the target company will effectively fill the relatively blank area in the company’s Hunan marketing network coverage, which can effectively form regional synergy, further expand the company’s Hunan market, and increase market share. At the same time, this acquisition will greatly increase the company’s scale and procurement scale in the national pharmaceutical retail market, reduce procurement costs, and improve the company’s overall profitability.

The common people also said that the company’s own funds and bank credit lines are sufficient, and this transaction will not cause financial pressure on the company’s normal operations. This transaction does not constitute a related party transaction, nor does it constitute a major asset reorganization.

Promote chain store expansion

Looking back at the company’s announcement, in recent years, with the World Bank’s long-term loans and direct financing funds, as well as the public offering of 1.74 billion yuan at the beginning of this year, the people are promoting the expansion of chain pharmacies. Build stores, franchise stores.

See also  |ϴɷݣδлὫAI޽ݾӪҽҩʵǼ۳Թ˾Ӱ첻 _ƱƵ_֤ȯ֮

The equity acquisition of Huairen Great Health is also a copy of the “holding-type spark acquisition model” of the common people. After the transaction is completed, Lin Chengxiong, the founder of Huairen Great Health, will still retain 12.49% of the shares.

The common people said that Lin Chengxiong, the founder of Huairen Great Health, has more than 20 years of experience in the retail industry. Lin Chengxiong retains part of the equity, continues to operate, and promises to bet on performance. It is the choice of mutual trust and long-term common development between the two parties.

According to Wang Li, president of the common people, the “Xinghuo” model, which retains part of the original founder’s equity and is empowered by the group headquarters, will acquire regional leading companies, and the common people will achieve cross-provincial expansion and deep cultivation of advantageous markets.

“In the future, ordinary people will continue to promote the expansion of chain pharmacies in an orderly manner. Through direct sales, Spark (that is, Spark-style mergers and acquisitions), franchises, and alliances, we will deeply cultivate different levels of markets, aiming at sinking markets and increasing absolute market share.” Wang Li also said.

Data shows that as of September 30, 2021, the common people had 8,163 stores, including 6,055 directly-operated stores and 2,108 franchise stores. From January to September 2021, ordinary people will add 1,866 new stores, including 1,259 new direct-operated stores (724 self-built, 143 asset mergers and acquisitions, 392 equity mergers), and 607 new franchise stores.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy