Daan Pharma receives RMB1.122b strategic investment from Junzheng Group

Junzheng Group recently announced that the company ’s wholly-owned holding company Lhasa Shengtai intends to subscribe the shares of Daan Pharma for an additional 3.57 billion yuan in investment, reaching a total investment of 1.12 billion yuan for 31.17% of the registered capital of Daan Pharma after the enlargement of equity capital.

Junzheng Group recently announced that the company ’s wholly-owned holding company Lhasa Shengtai intends to subscribe the shares of Daan Pharma for an additional 3.57 billion yuan in investment, reaching a total investment of 1.12 billion yuan for 31.17% of the registered capital of Daan Pharma after the enlargement of equity capital.

Da’an Pharma is a blood product manufacturer dedicated to the production of vaccines, injections and other sterile drugs. It mainly provides clients with human albumin, intravenous human immunoglobulin, human immunoglobulin, hepatitis B human immunity Globulin, tetanus human immunoglobulin and rabies immunoglobulin.

According to the announcement, Junzheng Group said that the valuation of Daan Pharma has not yet been determined, and the tentative valuation is 2.1 billion yuan, corresponding to approximately 35.29 times of Daan’s 2018 net profit. The valuation of Daan Pharma after the completion of the previous capital increase is approximately 1.939 billion yuan, and there may be a risk of higher valuation in this transaction.

It is worth noting that the primary business of Junzheng Group is the production and sales of chemical products. Therefore, it is a cross-industry investment.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/06/daan-pharma-receives-rmb1-122b-strategic-investment-from-junzheng-group/.

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