By Fineline Cube 
China-based Luoxin Pharmaceutical Group Co., Ltd. (SHE: 002793) announced that its subsidiary, Shandong Luoxin Pharmaceutical Group Co., Ltd., has transferred 70% of its equity in Luoxin Pharmaceutical Modern Logistics Co., Ltd. (renamed to Shanghai Pharma Luoxin Pharmaceutical (Shandong) Co., Ltd.) to Shanghai Pharma Holding Shandong Co., Ltd. The transaction, valued at RMB 415 million (inclusive of taxes and fees), has been completed.
Equity Transfer Agreement Details
According to the agreement, the equity transfer payments are structured in installments from the second to the fourth phase, with payments linked to the performance of Shanghai Pharma Luoxin from 2023 to 2025. In 2024, Shanghai Pharma Luoxin reported operating revenue of RMB 1.832 billion and a net profit attributable to shareholders of RMB 10.6856 million after deducting non-recurring gains and losses. This performance translates to a commitment completion ratio of 31.74%, triggering the third installment payment of RMB 26.3428 million.
Payment Status and Future Actions
As of the announcement date, Shandong Luoxin has not yet received the third installment payment. Luoxin Pharmaceutical has stated that it will continue to negotiate with the transaction party and will promptly disclose any further progress regarding the payment and the equity transfer agreement.-Fineline Info & Tech