Kangmei's reorganization completes the full intervention of GPHL

01 Comprehensive intervention

01 Comprehensive intervention

On January 5, GPHL announced that it has brought together GPHL Baiyunshan and Kangmei Pharmaceutical to raise 5 million anti-epidemic materials to aid Xi'an
.

It is reported that after the material departure ceremony, Li Chuyuan, chairman of GPHL, and Yang Jun, general manager of GPHL, led the senior management team of GPHL to the Guangzhou headquarters of Kangmei Pharmaceutical to conduct research

The industry believes that this means that GPHL has finally moved from behind the scenes to the front, and the team has fully involved in the production and operation of Kangmei Pharmaceutical
.

According to the Yangcheng Evening News, the general manager and several vice presidents of Kangmei Pharmaceutical are all from GPHL, and there are more than 100 GPHL teams in Kangmei
.

In fact, as early as December 29 to 31, 2021, Zhang Chunbo, deputy general manager of GPHL and chairman of the investment decision-making committee of Guangdong Shennong Management Partnership, led a team to Puning, Guangdong to conduct research and exchanges on Kangmei Pharmaceutical.
There are also members of the decision-making committee, Lai Zhijian and Li Zhenglun, who are the deputy directors of quality and investment of GPHL respectively
.

According to the announcement of Kangmei Pharmaceutical, in November 2021, Shennong's partnership will invest no more than 6.
5 billion yuan in Kangmei Pharmaceutical to participate in the restructuring of Kangmei Pharmaceutical
.

In the same month, Kangmei Pharmaceutical’s reorganization plan began to be implemented.

Before the arrival of 2022, on December 29, 2021, after review by the Jieyang Intermediate Court, all the debts of Kangmei Pharmaceutical have been 100% repaid through cash, shares, trust rights and other methods
.

So far, the bankruptcy reorganization plan of Kangmei Pharmaceutical Co.

For Kangmei Pharmaceutical, repaying its debt is the first step in its rebirth, and as the new year begins, Kangmei begins to face the real challenge - resuming operations
.

As stated in the announcement of Kangmei Pharmaceutical, its audited net assets at the end of the period in 2020 were negative, and if the subsequent operation and financial indicators do not meet the requirements of relevant regulatory requirements such as the "Stock Listing Rules", there is still a risk of being terminated from listing
.

02 The vitality is still alive

02 The vitality is still alive

The outside world is optimistic about Kangmei's future development
.

Since the announcement of the completion of the reorganization on December 29, *ST Kangmei has risen by the daily limit for 4 consecutive trading days, and its market value has soared from more than 8 billion in February 2021 to more than 40 billion

Kangmei Pharmaceutical itself also stated that after the implementation of the reorganization plan, with the resolution of the debt crisis and the support of investors, Kangmei Pharmaceutical will gradually restore the ability to continue operations and profitability, and return to a healthy development track
.

In recent days, in addition to the reshuffle of the company's management staff, Kangmei Pharmaceutical has also made corresponding efforts to resume normal operations
.

On January 5, Kangmei Pharmaceutical announced the transfer of 100% equity of Kangmei Traditional Chinese Medicine City (Yushu) Co.
, Ltd.
, and Puning Kangtian Trading Co.
, Ltd.
took over
.

It is reported that Kangmei Chinese Medicine City (Yushu) Co.
, Ltd.
was established in 2014 with a registered capital of 30 million yuan.
Its business scope includes market development of Chinese medicinal materials, research and development of Chinese medicinal materials, and spot trading of Chinese medicinal materials
.

Puning Kangtian Trading Co.
, Ltd.
was established in 2021 with a registered capital of 1.
82 billion yuan and is wholly-owned by CCB Trust Co.
,
Ltd.

It is worth noting that CCB Trust Co.

More importantly, according to the announcement of Kangmei Pharmaceutical, it still manages more than 60% of the transaction volume of Chinese herbal medicines in the country, and distributes 6 professional Chinese herbal medicine trading markets in China, which is an important basis for the resumption of operations
.

Kangmei Pharmaceutical's mid-2021 financial report shows that Kangmei Pharmaceutical has initially formed a complete layout of the big health industry and the construction of an industrial system
.

Specifically, Kangmei Pharmaceutical has built its upstream drug supply management advantages by mastering the supply resources of traditional Chinese medicinal materials in the upstream and strengthening the grasp of core market terminals such as medical institutions and chain pharmacies; it has mastered the professional market of traditional Chinese medicinal materials in the middle reaches of the traditional Chinese medicine industry.
The central system has built an online e-commerce platform for bulk trading of traditional Chinese medicinal materials; the downstream has built a comprehensive and multi-level marketing network integrating medical institution resources, smart pharmacies, OTC retail, chain pharmacies, direct sales, pharmaceutical e-commerce, and mobile medical care
.

Under the background of state-owned assets taking over, Kangmei Pharmaceutical will improve its management and control, resource supply and business synergy optimization in the future
.

Kangmei Pharmaceutical stated that in the next step, it will further integrate resources, consolidate and enhance the operation capacity of the whole industry chain of traditional Chinese medicine, vigorously invest in the production and operation of the main business of traditional Chinese medicine and its products, fully restore and improve the standard operation ability of the enterprise, and continue to make profits.
ability
.

03 Continuing the leading edge

For Kangmei Pharmaceutical, GP Corp.
is undoubtedly a helping hand to pull it out of the quagmire.
For GP Corp.
, its subsidiary is owned by Kangmei, and GP Corp.
will also indirectly control Kangmei Pharmaceutical's Chinese medicine decoction pieces industry.
The Chinese herbal medicine market, which accounts for more than 60% of the country's traditional Chinese medicine transaction volume, and the traditional Chinese medicine pharmacy business that has already entered hospitals and pharmacies, further boosted the "Great Southern Medicine" sector
.

As early as 2019, GPHL signed a strategic cooperation agreement with Kangmei Pharmaceutical, announcing that the two parties would integrate their advantageous resources in the field of traditional Chinese medicine, give full play to their respective advantages, and carry out cooperation in the fields of traditional Chinese medicinal materials supply chain management services, product channel services and other fields.
, to jointly contribute to the "revitalization of Great Southern Medicine"
.

According to the agreement, Kangmei Pharmaceutical will be the main raw material supply chain management service provider of GPHL, providing Chinese herbal medicine supply chain services and management services such as order planting, centralized procurement, standard warehousing, raw material processing, and logistics services.
Help GPHL to reduce the procurement cost of Chinese herbal medicine raw materials, ensure the quality of Chinese herbal medicines, and provide a basic guarantee for the development of GPHL's "Great Southern Medicine"
.

In addition to the supply chain, Kangmei Pharmaceutical will also work with GPHL to integrate the sales terminal channels of GPHL's products to further promote its product sales, increase market share and channel coverage, and enhance product visibility and reputation.

.

It is worth noting that, recently, there have been continuous policies favoring the development of traditional Chinese medicine
.

In addition to the documents at the national level, at the end of 2021, Guangdong Province also formulated and released the "14th Five-Year Plan for the Development of Traditional Chinese Medicine in Guangdong Province"

Haitong Securities said in a research report that Guangdong is planning to provide policy support and encouragement to the Chinese medicine industry, which is a microcosm of the state's encouragement of high-quality development of the Chinese medicine industry.
It is recommended to pay attention to investment opportunities in related industries and companies
.

In addition, several departments such as the State Administration of Traditional Chinese Medicine, the National Development and Reform Commission, and the National Health and Health Commission recently held the National Traditional Chinese Medicine Comprehensive Reform Demonstration Zone Promotion Conference
.

It was announced at the meeting that the first batch of 7 provinces to be approved to build national demonstration zones for comprehensive reform of traditional Chinese medicine, including Guangdong

The vitality of Kangmei Pharmaceutical is still there.