"Nin Jiom Pei Pa Koa" agent anticipates acquisition involving a well-known pharmaceutical company in Hong Kong, ready for a second spring at any time | Li Shengyang

Previously, we discussed the property market for several weeks. This time, let's talk about the prospects for retail brands in Hong Kong. Earlier, KINGWORLD (1110) released an announcement that many may not have noticed, but its content is quite intriguing. The announcement stated: the company has signed a memorandum of understanding to propose an investment of approximately HKD 66 million to acquire a well-known pharmaceutical company in Hong Kong and its associated assets (including real estate). Numerous Examples of Chinese Companies Acquiring Hong Kong Firms There are many examples of mainland companies acquiring Hong Kong firms. In the early years, many mainland banks entered Hong Kong by directly purchasing entire banks, gaining branch networks, licenses, accounts, and brands. For instance, China Merchants Bank acquired Wing Lung Bank (now known as China Merchants Wing Lung), and Yuexiu Group also acquired Chiyu Bank (keeping its original name). Similarly, a few years ago, SF Express acquired Kerry Logistics (636), and the business logic is easy to understand. More recently, everyone remembers that JD.com (9618) acquired Jia Bao Food Supermarket, and also that China Duty Free Group (1880) acquired the Hong Kong and Macau business of the duty-free store DFS from LVMH. However, consumer brands are a different story. Mainland enterprises have already acquired numerous foreign brands, including the chain restaurant Pizza Express and the sports brand FILA's business in China (now under Anta), with the latest being PUMA (Anta acquired a 30% stake). In terms of Hong Kong brands, there was the acquisition of Pacific Coffee by China Resources in the early years, and more recently, the Li Ning Group's Extraordinary China acquired Bossini. Major Shareholders in a Dilemma When Selling When mainland companies acquire these consumer brands, they can bring them back to the mainland. At the same time, due to the large scale and strong capital of mainland companies, they can expand these companies into other overseas markets. In fact, the Hong Kong brands that are up for sale are rarely poorly managed (if they were poorly managed, who would still want to buy them?). More often, the situation is that the brand and its business, after decades of operation, have become very stable, the Hong Kong market seems to have reached a sufficient scale, and the company has already entered the mainland or ventured overseas, leaving major shareholders in a "dilemma" situation. Additionally, many local brands, especially "old brands," are family businesses, and the second or third generation may have other ideas and may not want to take over. If the brand were to disappear, it would indeed be a pity; acquiring it by a mainland enterprise might instead bring about a second spring. KINGWORLD Represents Several Well-Known Brands In this regard, KINGWORLD has considerable experience. The company has been deeply involved in the pharmaceutical and health sector for 30 years, covering 34 provinces and cities in the mainland, and of course, it has both online and offline retail. However, consumers are often more familiar with the brands under the company than with the company itself. KINGWORLD's distribution includes "Nin Jiom Pei Pa Koa," which is well-known. Recently, even The Economist in the UK reported that when former One Direction member Zayn Malik shared in an interview that Nin Jiom Pei Pa Koa is excellent for the vocal cords and essential for performances, it became very popular abroad. At the same time, the "Laba" brand of Zheng Gu Shui and KINGWORLD's Yima Da Zheng Hong Hua Oil are also brands distributed by KINGWORLD. For KINGWORLD, which has always had the capability to handle well-known pharmaceutical brands and is adept at navigating this "water," reviving the well-known pharmaceutical company it plans to acquire this time seems not too difficult Note that KINGWORLD has not disclosed the name of the target company for this acquisition, as it aims to minimize variables before the acquisition is finalized, to avoid situations like "no one cultivates the thin field, but once cultivated, there are disputes" or even "a surprise competitor appears halfway." As for who this possible "well-known pharmaceutical company in Hong Kong" is, it can be a guessing game for everyone during casual conversations. Patreon Author Li Shengyang Related article: MPF buying property sparks discussion again, funds should be managed in a closed loop "If selling the property, will the principal and interest be returned to the account?" | Li Shengyang