Hainan Shuangcheng Pharmaceutical Co., Ltd. cancelled the acquisition of Hangzhou Aopeng Investment Management Co., Ltd. from Huang Shaofeng and Zhou Yulan.
January 30, 2016
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Hainan Shuangcheng Pharmaceutical Co., Ltd. (SZSE:002693) entered into framework agreement to acquire Hangzhou Aopeng Investment Management Co., Ltd. from Huang Shaofeng and Zhou Yulan for approximately CNY 960 million on January 31, 2015. Hainan Shuangcheng Pharmaceutical Co., Ltd. will acquire 81% stake from Huang Shaofeng for CNY 779.14 million and 19% stake from Zhou Yulan for CNY 182.76 million. Within 10 days after the private placement proceeds are in place, Hainan Shuangcheng Pharmaceutical Co., Ltd. must pay 50% of the transfer price; within 10 days after the delivery date, Hainan Shuangcheng Pharmaceutical Co., Ltd. must pay 20% of the transfer price; within 10 working days after Hangzhou Aopeng Investment Management Co., Ltd.'s special audit report of its net profit is issued, Hainan Shuangcheng Pharmaceutical Co., Ltd. must pay the average of the past 3 periods. On February 2, 2015, Hainan Shuangcheng Pharmaceutical Co., Ltd. paid a CNY 300 million deposit; if the directorate or shareholders' do not make the agreement effective, within 10 days after such occurrence, the deposit will be returned within 10 days; before April 15, 2015, Hainan Shuangcheng Pharmaceutical Co., Ltd. must pay CNY 205 million.
In a related deal, Hainan Shuangcheng Pharmaceutical Co., Ltd. (SZSE:002693) agreed to acquire a 46% stake in Hangzhou Aoya Biotechnology Co Ltd. Proceeds of a private placement of 74.32 million shares to ten designated investors at CNY 12.11 per share will be used to fund this deal. During the year ended December 31, 2014, Hangzhou Aopeng Investment Management Co., Ltd. had total assets of CNY 242.79 million, total owner's equity of CNY 104.47 million, revenue of CNY 228.85 million, operating profit of CNY 115.05 million, and net profit of CNY 100.33 million. Board of Directors of Hainan Shuangcheng Pharmaceutical Co., Ltd. approved the transaction on January 31, 2015. The shareholders of Hainan Shuangcheng approved the transaction on March 3, 2015.
Hainan Shuangcheng Pharmaceutical Co., Ltd. (SZSE:002693) cancelled the acquisition of Hangzhou Aopeng Investment Management Co., Ltd. from Huang Shaofeng and Zhou Yulan on January 31, 2016.
Hainan Shuangcheng Pharmaceuticals Co., Ltd. is a China-based company principally engaged in the production, sale, research and development of chemically synthesized peptide drugs. The Company's main products include Jitai (thymalfasin for injection), for the treatment of various types of liver diseases, cancers, geriatric deseases and infectious diseases; thymopentin for infection; somatostatin, for the treatment of severe acute esophageal variceal bleeding and severe acute stomach or for the adjuvant therapy of duodenal ulcer bleeding and diabetic ketoacidosis, as well as other drugs. The Company distributes its products in domestic market and to overseas markets.
HAINAN SHUANGCHENG PHARMACEUTICALS CO., LTD. 
