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Today, east sunshine released the latestAcquisitionRestructuringReport of the proposed purchase of assets by issuing shares to yichangEast sunshineThe industry purchased 226. 2 million shares of the east sunshine medicine in its possession, accounting for 50. 04 per cent of the total share of east sunshine medicine, at a trade price of $322,08. 8 million. After this deal is completed, the east sunshine medicine will become a holding subsidiary of east sunshine。
Behind reorganization: combing asset architecture
Figure 1: equity structure of the sunshine medicines industry in yichang
According to the report, as of november 2017 the yichangdong sunshine medicines industry held 50. 04 per cent shares of the east sunshine medicines, and was a shareholder in the east sunshine medicines controls, while zhang china and mr. Guo melan were actually controlling the east sunshine。
In fact, this reorganization of the east sunshine section was conducted by the company's real-employer, zhang china, and mr. Guo melan's company, including the east sunshine pill, which was listed in the h stock in december 2015. When the deal is completed, the east sunshine medicine will become the holding subsidiary of the east sunshine section, whose de facto controllers are still zhang and mr. And mrs. Guo melan, and whose de facto controllers have not changed. It was previously reported in the media that behind this reorganization was the consolidation of controls and the organization of assets。
Four varieties account for over 90% of the profits
Figure 2: recent performance of east sunshine medicine (in billions of yuan)
East sunshine is mainly focused on treatment areas such as antivirus, endocrine and metabolic diseases and cardiovascular diseases. As of 30 june 2017, 33 types of eastern sunshine medicine were producedMedicineProducts, the main products of which include the drug othavi phosphate for the treatment of viral influenza (trade name: kewi); the pharmaceutical tablet phenylbromomalone for the treatment of endocrine and metabolic diseases (trade name: yrshu); the pharmaceutical tablets for the treatment of cardiovascular diseases (trade name: eurosining); and the tablets of aminophenate (trade name: shinhining)。
Table 1: revenue from sales of main products of east sunshine
In 2015, 2016, and january-june 2017, the combined sales revenues of the main products koway, oumening, shinheining and urshu accounted for 82. 41 per cent, 90. 72 per cent and 93. 29 per cent, respectively, of the operating income, of which kemway accounted for 65. 38 per cent, 78. 20 per cent and 84. 07 per cent, respectively。
1 billion varieties, 18 products in research
Table 2: forecast of collection of core varieties of eastern sunshine
The usefulness of ostawe (the generic name of the drug: cave) in fighting different types of influenza has long been recognized globally, as a “basic drug” on the who list of essential drugs, one of the main antiviral drugs recommended by the united states centers for disease control for the treatment of influenza and recommended by the european centers for disease control for the treatment of influenza。
According to the minnet data, the main public hospital in the country, ostawe, used 72. 32 million yuan in 2016, representing an increase of 105. 22 per cent over the previous year and 92. 41 per cent of the amount sold for influenza virus drugs. From the level of corporate competition in ostawe, 79. 98 per cent of eastern sunshine medicines and 19. 64 per cent of roofy duffy. East sunshine indicates that the raw materials needed by ostawe phosphate are self-produced in the country and have the advantage of cost and product pricing, which can effectively reduce the burden on patients。
In addition, it was noted in the acquisition reorganization report that in the second half of 2017 it was projected that the particle and capsules of ostawe phosphate would total more than $550 million and that the year-round harvest would exceed $1 billion; in 2020, it was expected that osawe phosphate would exceed the $1 billion threshold。
Table 3: east sun medicine is mainly in research
It has its own research and development team, and its product reserves, in addition to new drugs corresponding to existing products and the associated disease spectrum, are actively expanding other areas related to chronic and geriatric diseases that are appropriate to china's conditions. At the same time, companies improve the interchangeability of production lines for different product categories, undertaking process optimization and research and development of new processes and formulations。
As at 30 june 2017, eastern sunshine medicines were mainly developed in 18 products, focusing on three major areas of treatment: diabetes, digestive systems and hepatitis c。
It's not like we're in the middle of an industryProfitSignificant capacity enhancement
East sunshine indicated that, in recent years, the long-term development of the industries in which companies operated had been more limited and cyclically more volatile due to factors such as high homogeneity of domestic aluminium manufacturing products and excessive competition in domestic and foreign markets. Following this reorganization, the east sunshine will become a holding subsidiary of east sunshine, bringing east sunshine into the pharmaceutical industry, thereby widening its industry layout and exploiting new profit growth points。
It is worth mentioning that this reorganization has resulted in a profit forecast compensation agreement and a supplementary agreement with the east sunshine section, with a net profit commitment of not less than 577 million yuan, 653 million yuan and 689 million yuan yuan, respectively, between 2018 and 2020, and that the company's performance will improve significantly and its profitability will increase significantly。
