On the evening of June 28, Sunward Pharmaceutical (300452) announced that Shanghai Fosun Pharmaceutical Industry Development Co., Ltd. (hereinafter referred to as "Fosun Pharma"), a shareholder of 11.2% of the company, intends to reduce its holdings of the company's shares by centralized bidding transactions by no more than 2.326 million shares, that is, no more than 1% of the company's total share capital (deducting 1.8255 million shares repurchased by the company).
In terms of shareholding structure, as of the date of the announcement, Fosun Pharma held 26,254,100 shares of Sunward Pharma, accounting for 11.20% of the total share capital, and the actual controller of Fosun Pharma was Guo Guangchang.
It is reported that Sunward Pharma is one of several A-share companies in which Fosun Pharma has a stake, and Fosun Pharma's shareholding in Sunward Pharma originated from Sunward's initial public offering and the conversion of capital reserve into share capital after the issuance and listing. Since the listing of Sunward Pharma, Fosun Pharma has become its top 10 shareholders. Up to now, Fosun Pharma is the second largest shareholder of Sunward Pharma.
The picture is from the Times Financial Gallery
According to the data, Sunward Pharmaceutical is subordinate to the pharmaceutical manufacturing industry, and its main products are cellulose and its derivatives, starch and derivatives, as well as other products, accounting for 88% of domestic sales. In the first quarter of this year, Sunward Pharmaceutical achieved a total operating income of 238 million yuan, a year-on-year decrease of 4.05%; The net profit attributable to the parent company was 49.8151 million yuan, a year-on-year increase of 0.86%.
Since the beginning of this year, there have been rumors in the market that Fosun Pharma wants to withdraw from Sunward Pharmaceutical. On the evening of March 26 this year, Sunward Pharmaceutical issued two announcements in succession, and the company's director Song Dajie and supervisor Yan Jia resigned due to work arrangements and no longer held any positions in the company after resignation. And these two directors, supervisors and senior executives who have left the company have the background of "Fosun".
In recent years, Sunward Pharmaceutical has increased capital operation in order to accelerate the expansion of the layout. In June 2023, Sunward Pharmaceutical successfully issued convertible bonds to unspecified targets to raise 320 million yuan, and on July 7, "Sunward Convertible Bonds" was listed. As of the first quarter of 2024, the microcrystalline cellulose, hypromellose, croscarmellose sodium, and crospovidone workshops in the new area have been officially put into use
Recently, Sunward Pharmaceutical Co., Ltd. said in an investor survey that its future business strategy will be based on the field of oral yao excipients, vigorously promote import substitution projects, and develop overseas markets. At the same time, considering the broad overseas market space, Sunward Pharmaceutical will continue to compete with foreign companies in foreign markets and promote the company's superior products to the international market. At the same time, the company will actively explore and develop the new material market, increase and deepen cooperation with scientific research institutions, do a good job in market service and docking, further enhance market share and return investors. Up to now, Sunward Pharmaceutical's latest share price closed at 11.36 yuan per share, with a total market value of 2.663 billion yuan.
It is worth noting that Fosun Pharma's recent actions have also attracted market attention. In the past month, Fosun Pharma has made frequent moves to accelerate the full integration of its global assets, first planning to spin off its medical and health services subsidiary Fosun Health's IPO, and then selling a 6.01% stake in Gland Pharma, an Indian generic drug subsidiary, to a long-term fund, recovering US$211 million while maintaining a controlling stake. Recently, Fosun Pharma announced that it plans to spend HK$5.4 billion to privatize its innovative biopharmaceutical subsidiary, Henlius.
On the evening of June 24, Henlius announced that Fosun New Pharma, a subsidiary of Fosun Pharma, intends to acquire and cancel all shares (including H shares and unlisted shares) held by other existing shareholders of the company and privatize Henlius by way of cash and/or share exchange, of which the total cash consideration will not exceed HK$5.407 billion.
Prior to this transaction, Fosun Pharma held a total of 59.56% equity interest in Henlius; It is expected that after the completion of the transaction, Fosun Pharma will hold 100% of the equity interest in Fosun New Pharmaceutical (which has absorbed and merged with Henlius).
Regarding the privatization, Fosun Pharma stated that after the completion of the transaction, it will be conducive to strengthening the synergy between the Group and the target group, and can help the sustainable growth of the target group and the realization of the overall strategic objectives of the group through the support of business resources provided by the group. According to public information, Fosun Pharma's main business includes pharmaceuticals, medical devices and medical diagnosis, and medical and health services, and its main products involve cardiovascular, central nervous system, blood, metabolism and digestion.
In 2023, Fosun Pharma achieved a total operating income of RMB41.4 billion, down 5.81% year-on-year, and a net profit attributable to the parent company of RMB2.386 billion, down 36.04% year-on-year, the first decline in five years. revenue in the first quarter of this year was 10.1 billion yuan, a year-on-year decrease of 6.56%; net profit was 610 million yuan, down 38.22% year-on-year. Up to now, Fosun Pharma's latest share price closed at 22.14 yuan per share, with a total market value of 59.17 billion yuan.