Expanding into pharmaceutical retail: Qizheng Tibetan Medicine plans to participate in the establishment of a fund dedicated to investing in Baiyunshan Yixintang.

　　Qizheng Tibetan Medicine recently disclosed that the 32nd meeting of the company’s 4th Board of Directors, held on March 7, had reviewed and approved the “Proposal on Participating in the Establishment of an Equity Investment Fund.” The board agreed that the company, together with Guangdong Guangyao Jinshen Equity Investment Fund Management Co., Ltd. (referred to as “Guangyao Jinshen”) and Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. (referred to as “Guangyao Baiyunshan”), would enter into the “Partnership Agreement for Guangzhou Guangyao Jinzang Equity Investment Partnership (Limited Partnership)” to jointly establish the Guangzhou Guangyao Jinzang Equity Investment Partnership (Limited Partnership) with a total scale of 115 million yuan. As a limited partner, the company will contribute 67.85 million yuan of its own funds, representing a subscribed capital ratio of 59%. The fund will specifically invest in Guangzhou Baiyunshan Yixintang Pharmaceutical Investment Development Co., Ltd. (referred to as “Baiyunshan Yixintang”), supporting the development of Guangdong Baiyuantang Pharmaceutical Chain Co., Ltd. (referred to as “Baiyuantang”), a pharmaceutical retail enterprise.

　　According to the announcement, Baiyunshan Yixintang Company was established in April 2018, initiated by Guangzhou Pharmaceutical Baiyunshan, Yixintang, and Guangzhou Pharmaceutical Jinshen, with a registered capital of 300 million yuan. Among them, Guangzhou Pharmaceutical Baiyunshan holds a 30% stake, with a subscribed capital contribution of 90 million yuan, of which 72 million yuan has been paid-in; Yixintang holds a 35% stake, with a subscribed capital contribution of 105 million yuan, of which 84 million yuan has been paid-in; and Guangzhou Pharmaceutical Jinshen holds a 35% stake, with a subscribed capital contribution of 105 million yuan, of which only 5 million yuan has been paid-in.

　　It is reported that Guangzhou Pharmaceutical Jinshen is a private equity fund management company. Originally, it had planned to invest in Baiyunshan Yixintang Company through a private equity fund it initiated and managed. However, at the time of Baiyunshan Yixintang’s establishment, Guangzhou Pharmaceutical Jinshen had not yet completed its registration as a private equity fund manager and thus did not meet the eligibility requirements for raising capital to set up a private equity fund. To seize this investment opportunity, the equity investment fund soon to be established will have Guangzhou Pharmaceutical Jinshen act as the investor on its behalf for the stake in Baiyunshan Yixintang Company. Once the fund has successfully raised capital, completed the necessary filing procedures with the Asset Management Association of China, and fulfilled other relevant requirements, all funds—except for the reserved management fees—will be used to acquire the 35% equity stake in Baiyunshan Yixintang Company held by Guangzhou Pharmaceutical Jinshen and to fully pay the corresponding capital contributions.

　　According to a notice from Qizheng Tibetan Medicine, in line with the company’s strategic layout of “One Axis, Two Wings, and Three Supports,” and guided by its mission to “strengthen pain relief,” the company is accelerating its market coverage and deepening its channel penetration. Against the backdrop of policies such as the “Two-Invoice System” and the “Outflow of Prescription Drugs,” the company must expedite its channel-deepening efforts even further. In particular, regarding retail channels, the company needs to further intensify its expansion into new regions, strengthen cooperation with key customers, and join forces with branded chain stores to explore new retail development models such as O2O, thereby continuously enhancing the Qizheng Greater Health Platform. The company will also accelerate its exploration of collaboration opportunities on social e-commerce platforms, establishing integrated online-and-offline channel partnerships across multiple business segments. This investment aligns with the company’s development strategy and investment direction. On the one hand, it will help the company more deeply integrate into retail channels, seize opportunities for expanding into key markets, deepen industry collaborations, and promote mutually beneficial growth. On the other hand, it will enable the company to broaden its overseas investment portfolio, expand opportunities for asset appreciation, accumulate investment experience, and elevate its investment capabilities.

　　Reporting media: Shanghai Securities Journal·China Securities Network

　　Report link: https://ggjd.cnstock.com/company/scp_ggjd/tjd_bbdj/202103/4669678.htm