The subsidiary only completed 23.67% of the promised performance in three years

The foreign merger and acquisition of Jiyao holdings a few years ago began to show disadvantages. Because the three-year cumulative performance completion rate of its subsidiary, Zhejiang Yali University, was only 23.67%, failing to fulfill its performance commitment, Jiyao holdings received a letter of concern from Shenzhen Stock Exchange on July 21.

Today, Jiyao holdings fell after the opening. As of the time when the reporter of securities times. E company issued a report, Jiyao holdings reported 4.21 yuan, down 0.2 yuan, or 4.54%.

He has frequently acquired pharmaceutical assets

The predecessor of Jiyao holding is Shuanglong Co., Ltd., which was originally one of the main enterprises in the domestic silica industry. In 2014, Shuanglong won 97.71% equity of Jinbao Pharmaceutical by issuing shares and paying cash to purchase assets and raise supporting funds, thus creating a dual main business pattern of “chemical industry + medicine”. Since then, the proportion of the pharmaceutical industry in the listed companies has been increasing, which makes the listed companies see the great development potential of the pharmaceutical industry. Therefore, they intend to go all out into the pharmaceutical field, and officially change the name of the company from Shuanglong shares to Jiyao holdings in August 2017.

The renamed Jilin Pharmaceutical holding company proposed to take the pharmaceutical industry (including Chinese and Western patent medicine, API and biopharmaceutical), pharmaceutical business (wholesale service), pharmaceutical terminal chain, and medical and nursing industries as its strategic positioning for development, and to make frequent acquisitions and expansion in the pharmaceutical industry after 2018.

For example, in January 2018, Jiyao holdings announced that it planned to increase the capital of Haitong pharmaceutical, with a capital contribution of 67.0625 million yuan and holding 10% equity of Haitong pharmaceutical; In April of the same year, Jilin Pharmaceutical Holdings announced that it planned to transfer part of the capital contribution rights of Bozhou Pharmaceutical Co., Ltd. of Minsheng Pharmaceutical Group, with a total capital contribution of 12.6 million yuan, and to transfer 70% equity of Yuanda Kanghua (Beijing) Pharmaceutical Co., Ltd; In June 2018, Jilin Pharmaceutical Holdings also announced its intention to acquire 70% equity of Liaoning Meiluo Pharmaceutical Supply Co., Ltd. in cash of 28 million yuan; Jilin Pharmaceutical Holdings announced on September 13, 2018 that it plans to pay a price of 618 million yuan to purchase 99.68% shares of Puhua pharmaceutical held by 46 natural persons including Yang Hua in cash.

It is worth mentioning that Jiyao holdings also announced on the evening of July 26, 2018 that it would terminate the purchase of 94.44% equity of tianqiang pharmaceutical. In addition, the company plans to purchase 100% equity of Zhejiang Yalida with its own capital of 230 million yuan. After the completion of this transaction, Zhejiang Yalida will become a wholly-owned subsidiary of the listed company, and the listed company will increase the capital of Zhejiang Yalida by 30 million yuan to supplement the working capital, complete the research and development of new products such as plant capsules and upgrade the production line

According to the announcement at that time, Zhejiang Yalida has been committed to building an excellent brand in the pharmaceutical excipients industry, and has a high brand awareness in the pharmaceutical hollow capsule industry. “Yalida capsule” trademark has been rated as a well-known trademark in China, and Zhejiang Yalida has also been rated as “Zhejiang science and technology-based small and medium-sized enterprises” and high-tech enterprises. Wang Pingping, then general partner of Alida investment, promised that the non economic net profit of Zhejiang Alida in 2018, 2019 and 2020 would not be less than 20 million yuan, 30 million yuan and 42 million yuan respectively.