Buchang Pharma adjusts portfolio with equity transfers, closures

Shandong Buchang Pharmaceuticals is actively reshaping its corporate structure through several transactions. The company plans to transfer 0.50% equity in Buchang Chuanfang to He Tao for CNY 0.6875. Concurrently, Zhao Lu will transfer 3.00% equity in Buchang Chuanfang to multiple transferees, with Buchang Pharma waiving its right of first refusal, resulting in Buchang Pharma holding 92.5% equity. Additionally, Buchang Pharma will acquire 1.50% of outstanding equity in Buchang Yaozhuang from Zhao Lu for CNY 0, while Zhao Lu transfers 1.00% to Xie Jiahui and 0.50% to Wang Qi, with Buchang Pharma waiving its pre-emptive rights, adjusting its stake to 94.50%.

Earlier, the company transferred 1.00% equity in Buchang Youpin Medical Technology to Xie Jiahui, and its wholly-owned subsidiary Shaanxi Buchang Pharmaceutical transferred 30.00% equity in Shaanxi Modern Innovation Traditional Chinese Medicine Research Institute to another subsidiary, Shaanxi Buchang Pharmaceutical, for CNY 0. The company also decided to reduce the registered capital of its controlling subsidiary, Jiangsu Hepu Medical Technology, from CNY 50.2m to CNY 5m.

Furthermore, Buchang Pharma plans to deregister two controlling subsidiaries: Changsha Zhongce Biotechnology and Hunan Zhongce Biotechnology to optimize resource allocation and reduce management costs. The company will also deregister Buchang (Guangzhou) Medical Diagnostics Technology, which constitutes a related party transaction. These strategic moves are intended to enhance capital efficiency and streamline operations without materially impacting the company's financial performance or consolidated statements.