A drugstore chain sold 43 stores with revenues of more than $50 million.

On August 19th, Nanjing Pharmaceutical Co., Ltd. announced that Nanjing Pharmaceutical Hefei Big Pharmacy Chain Co., Ltd. (hereinafter referred to as "Hefei Big Pharmacy") will acquire the store assets group held by Anhui Furuntang Big Pharmacy Chain Co., Ltd. (hereinafter referred to as "Furuntang Pharmacy").
announcement shows that Hefei Big Pharmacy belongs to a wholly-owned subsidiary of Nanjing Pharmaceutical State Pharmaceutical Co., Ltd. (hereinafter referred to as "Nanjing Pharmaceutical State Pharmaceuticals"), Nanjing Pharmaceutical State Pharmaceuticals belongs to a wholly-owned subsidiary of Nanjing Pharmaceutical Co., Ltd. (hereinafter referred to as "Nanjing Pharmaceuticals") the purchase price is not more than 39.6 million yuan (RMB), involving the assets of 43 pharmaceutical retail stores held by Furuntang (including fixed assets, long-term expectations of amortization fees, customer resources, marketing channels, related qualifications, etc.).
Beijing Huaya Zhengxin Evaluation Co., Ltd. assessed the market value of the underlying assets as of August 31, 2019 (the evaluation base date) by income method, and made an assessment report with an evaluated value of 41 million yuan (excluding the value of the store inventory).
final evaluation results shall be based on the filing by the state-owned regulatory authorities.
the two sides agree that the price of the underlying asset is based on the value assessed after the filing by the state-owned regulatory authority, and that the proposed price shall not exceed 39.6 million yuan after consultation between the two parties.
announcement pointed out that, because the industry's retail pharmacy management rights and asset acquisition value is mainly determined by the underlying brand and quality, market share, customer source, store assets and other factors, from the industry in recent years to buy store assets cases can be seen, PS from 0.62-1.69.
PS of the acquisition of the Furuntang chain of stores by Hefei Grand Pharmacy is 0.78, which is within the reasonable range of 2 transaction case valuation.
43 stores with revenues of more than 50 million is known, Furuntang large pharmacy registered capital of 5 million yuan, the scope of business for traditional Chinese medicine, Chinese medicine tablets, chemical preparations, antibiotics, biochemical drugs, biological products (except vaccines) and other retail.
Furuntang large pharmacy existing 43 stores mainly for community stores, all with Hefei City fixed-point medical insurance qualifications, mainly for community residents to sell Chinese and Western medicine, Chinese medicine tablets, health care products, medical equipment and other major categories of goods.
its stores are located in 4 municipal districts, 2 economic development zones, 2 municipalities and counties, stores mainly from the acquisition of monogam pharmacies and the recent two years of self-opened pharmacies, are currently in normal operation.
as of December 31, 2019, The total assets of Furuntang amounted to RMB32.7704 million, the total liabilities amounted to RMB25,757.7 million, the net assets were RMB7,012.7 million, and the operating income was RMB50,845.0 million and the net profit was RMB266,300 in 2019.
(unaudited) invested more than 510 stores in Nanjing Pharmaceuticals according to Nanjing Pharmaceuticals 2019 Annual Report, its retail business consists of social retail pharmacies and special drugstores, a total of more than 510 retail stores.
social retail pharmacy business terminals are distributed in su-Yuan and other three provinces and eight cities, mainly through direct stores and some franchise chain sales of prescription drugs, over-the-counter drugs and medical devices, related health products.
Nanjing Pharmaceuticals has nine regional brand chains, such as Baixin Pharmacy, the total number of retail stores under the retail business management platform more than 380, of which fixed-point medical insurance qualified stores accounted for more than 90%, 100-year-old drugstore 6.
the end of the reporting period, there were more than 130 pharmacies with outlets in Jiangsu, Anhui, Fujian, Hubei, Yunnan and other provinces covered by the company's wholesale business.
, Nanjing Pharmaceuticals achieved operating income of 37.156 billion yuan in 2019, an increase of 18.70 percent year-on-year.
the top 100 pharmaceutical wholesale enterprises in China, Nanjing Pharmaceutical ranked seventh.
's social retail pharmacy platform sales revenue of 1,085 million yuan in 2019, up about 14% year-on-year.
also noted that, according to preliminary estimates, after the completion of the acquisition of Hefei Grand Pharmacy, The annual operating income of 43 stores of Furuntang Grand Pharmacy increased by 10%, to the fifth year of revenue of about 80 million yuan, profit of about 6.4 million yuan;
the transaction is not expected to have a significant impact on the company's main business in 2020.
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