Zeming Investment Shares Transfer To The Land, The People Introduced Chunhua Capital, Fangyuan Capital Empowerment New Retail

The general public pharmacy two shareholders clearing up the reduction of ordinary people eventually landing.

In November 28th, the people announced that they received the notice from Zhuge Xing, the second largest shareholder. Leader BVI and Sonata Company Limited signed the equity transfer agreement in November 27th, and Leader BVI transferred all the shares owned by zhe star to Sonata Company Limited. After this equity change, Sonata Company Limited will indirectly hold 24.78% of the shares of the people through zhe Xing Investment.

"The transferee's two strategic investment per capita is the top global equity investment organization, with the ability of international vision and domestic market capitalization," Fang Yuan's capital team worked hard for many years in the new retail and new medical fields. Chen Zhu, vice president of the pharmaceutical industry research department of CITIC Securities, said Chunhua capital and Fangyuan capital have long-term strategic cooperation intentions with the people. "With the deepening of cooperation, it is expected to fully embody the new retail strategy of the people, and will bring strong support in its business synergy, membership data analysis and operation digitalization, so as to further enhance its pharmaceutical service capabilities and speed up the transformation of the new medical field."

With the completion of the stock transfer, the shares of zhe Xing's investment were split, which opened up space for further redevelopment of the people. - Gan Jun photo

EQT investment income increased 12 times

According to the equity transfer agreement, the equity transferee transferee Sonata Company Limited after the penetration, respectively, by Chunhua capital and Fang Yuan capital's respective funds held 50% stake, the total transfer price of about 557 million dollars, equivalent to 3 billion 916 million yuan.

As one of the initiators of the common people, zhe Xing investment was established in September 19, 2007. Its actual control is EQT Greater China II Limited (hereinafter referred to as "EQT"), that is, one of the carriers of private equity investment by international investment giant silver delta Corporation (Investor AB). It held a 99.30% stake in zhe star investment. Before the listing, zhe star investment held about 92 million 840 thousand and 700 shares of the people, accounting for 46.42% of the share capital issued before. In April 23, 2015, zhe Xing Investment and medical investment, Chen Xiulan, stone exhibition, Changsha Rui Road, Xi'an Shengda and Changsha are helping people in the Shanghai Stock Exchange successfully.

According to the prospectus, zhe star invested the first time at 162 million yuan and 13 million 813 thousand and 900 yuan respectively for 25.567% of the shares of Chen Xiu Lan and 2.18% of the stone exhibition. In addition, the US dollar was converted into 247 million yuan for the US dollar to increase its capital contribution to the people. The total of the three capital increase totaled 432 million of the total investment for the common people, holding 929 million shares and becoming the second largest shareholder of the people.

According to the lockup period of the commitment, the shares held by zhe Xing Investment were formally lifted in April 23, 2018. In April 28th of that year, zhe Xing Investment announced the reduction plan. As of November 19th of that year, zhe Xing Investment reduced 7 million 502 thousand shares, accounting for 2.63% of the total share capital, with a reduction of 515 million yuan.

In July 23rd this year, Zexing investment again issued a reduction plan to complete the withdrawal. In fact, before the transfer of the agreement, zhe Xing investment has reduced 14327254 shares by two market concentration bidding and block trading, accounting for 4.99% of the total share capital. According to the progress announcement of the reduction, the price reduction of zstar investment is locked at 55.61-57.39 yuan / share, with a total reduction of 907 million yuan.

According to the total amount of the above reduction, EQT has invested nearly 5 billion 338 million yuan through the investment of zhe star after listing in the common people. Compared with the 432 million yuan invested before the listing, the investment income has increased 12.36 times.

For the transfer of shares, the people believe that the original shareholder EQT Partners (Yin Tuo group Greater China Fund) to transfer the company's equity opportunity to "cage for birds", the introduction of international strategic investors to help the company's future development, highlighting the international investors' recognition of the future development of the pharmaceutical retail industry and the overall strength of the people.

"Thank EQT for helping the ordinary people create a transparent and transparent corporate governance structure for the healthy and rapid development of the company in the past ten odd years." Xie Zilong, chairman of the people's board, said that the introduction of two internationally renowned investors was an important strategic move for the company and further improved the equity management structure.

New retail layout

According to Xie Zilong's plan, the people will seize the development opportunity of the outflow of the prescription and the industry concentration, and continue to consolidate the competitive advantage in the pharmaceutical retail industry. At the same time, with the rich experience of Chunhua capital and Fangyuan capital in the new retail and big health industry, we will focus on the four major strategies: "grab the prescription medicine blue ocean", "embrace the new retail", "enter the new rural market" and "enhance the market share".

This idea coincides with Chunhua capital and Fangyuan capital. According to public information, Chunhua capital was founded by Dr. Hu Zuliu, a well-known economist, and invested in such projects as Yum China, Alibaba, ant gold clothing and other leading enterprises. Fangyuan capital is Asia's leading private equity investment institution. It has been investing in new retail and new medical fields for many years. Its investment projects include US group review, de Qi medicine, fast hand and so on.

As the outflow of prescriptions and the new retail formats continue to update, the retail pharmacy giant is accelerating its horse race and laying new retail outlets. In the 3 quarter of 2019, the populace succeeded in entering Shanxi province through the acquisition of Shanxi Huaqiang Baihui pharmaceutical chain, and the layout in the whole country also expanded to 22 provinces. As of the end of September 2019, it had 3756 Direct stores and 1052 franchises in 22 provinces and municipalities, accounting for three of the total in 11 provinces.

Chen Zhu said that with the completion of the transfer of shares, the shares of zhe Xing's investment were split, which opened up space for further refinancing and further expansion of the people. It is expected to further promote the strategy of "direct + spark + affiliation + alliance" and return to the rapid growth of endogenous + extension in 2020.

On the other hand, with the investment experience of Chunhua capital and Fangyuan capital in the new format of the Internet, it will help people to complete the upgrading of online business. Since the second half of 2018, the cooperation between the people and the US group and Jingdong has been carried out. The O2O business in the first half of this year has achieved a revenue of 80 million yuan, which is expected to exceed 200 million yuan in the whole year. The DTP pharmacy business is also developing rapidly and is expected to exceed 600 million yuan in the whole year.

The Pacific Securities medical team concluded that with the completion of the transfer of EQT shares, the company will turn more energy into operations, and its performance will be more robust next year. "Through strict screening of M & A targets and all-round empowerment, more than 1500 stores have been acquired, and most of the projects have achieved or even exceeded the expected performance, and the proportion of the 11 dominant provinces has been steadily improving."