Baiyunshan subsidiary boosts biotech investment, expands related party deals

Guangzhou Baiyunshan Pharmaceutical Holdings announced that its subsidiary, Guangzhou Pharmaceutical Phase II Fund Equity Investment Partnership, plans to invest 0.975 billion yuan in the Guangzhou Pharmaceutical Guangqi Venture Capital Fund Partnership, holding a 48.75% stake. This move is part of an initiative to expand investment scale, diversify risk, and enhance efficiency within the biological medicine sector, including new drugs and high-end medical devices. Additionally, the subsidiary will invest 0.995 billion yuan in the Guangzhou Liwan Pharmaceutical Venture Capital Fund Partnership, acquiring a 33.17% interest. Both transactions are classified as related party transactions, with Guangzhou Pharmaceutical Capital acting as the general partner for both funds.

The company also projects its 2026 daily related party transactions. These include an estimated 2.97 billion yuan with Guangzhou Baiyunshan & Hutchison China Pharmaceuticals and its affiliates, 2.01 billion yuan with Guangzhou Baxter Qiaoguang Medical Products, and 3.43 billion yuan with Guangzhou Baiyunshan Yixintang Medical Investment Development. Furthermore, transactions with the controlling shareholder, Guangzhou Pharmaceutical Group, are forecast to reach up to 3.96 billion yuan for 2026. These ongoing transactions are deemed crucial for the group's business continuity and development.

All investments and projected transactions have received approval from the company's board of directors and independent directors. These actions align with the company's "Quality Improvement and Efficiency Enhancement for High Returns" plan, focusing on strengthening its core business, capital operations, and international collaborations.