Guangzhou Baiyunshan Pharmaceutical Co., Ltd (SHA: 600332) announced its intention to acquire 100% equity of Zhejiang Pharmaceutical Industry Corp., Ltd. (Zhejiang Pharma‑Industry) from Hisun Pharmaceutical via public bidding, with a transfer price of RMB 500.50 million (≈ US$70 million). The target holds provincial distribution qualifications for ephedrine, caffeine, and Class 2 narcotics, with a network covering all of Zhejiang province.
Pharmaceutical distribution (hospital sales, pharmacy wholesale)
Geographic Coverage
Entire Zhejiang province
Key Qualifications
Ephedrine, caffeine, Class 2 narcotic drug distribution licenses
Revenue (2024)
RMB 4.24 billion (≈ US$590 M)
Net Profit (2024)
RMB 29.9 million (≈ US$4.2 M)
Revenue (2025 Q1‑Q3)
RMB 2.92 billion (≈ US$407 M)
Net Profit (2025 Q1‑Q3)
RMB 29.2 million (≈ US$4.1 M)
Financial Summary
Metric
2024 Full Year
2025 Q1‑Q3
Revenue
RMB 4.24 billion
RMB 2.92 billion
Net Profit
RMB 29.9 million
RMB 29.2 million
Profit Margin
0.7%
1.0%
Acquisition Multiple
~11.7x 2024 earnings
—
Strategic Implications
For Baiyunshan:Expands distribution footprint into Zhejiang, a RMB 500 billion+ pharmaceutical market; narcotics licenses create high‑barrier competitive moat; vertical integration secures supply chain for controlled substances.
For Target:Public bidding ensures fair valuation; Baiyunshan’s capital and national network (covering 31 provinces) will accelerate growth; potential for synergy in hospital procurement and pharmacy channel expansion.
For Market:Narcotics distribution is highly regulated with limited licenses; consolidation trend continues among Chinese pharma distributors; policy support for regional integration under “Healthy China 2030”.
Forward‑Looking Statements This brief contains forward‑looking statements regarding the acquisition timeline, regulatory approvals, and integration synergies. Actual results may differ due to bidding outcomes, regulatory hurdles, or market conditions.-Fineline Info & Tech
By Fineline Cube 