YUES INTL HLDG's subsidiary plans to acquire 100% equity of Bozhou Le Lao Hao Pharmaceutical
YUES INTL HLDG announced that its wholly-owned subsidiary will acquire 100% equity of Bozhou Le Lao Hao Pharmaceutical Co., Ltd. for an amount of RMB 900,000. This acquisition is expected to have no significant impact on the group's financial condition, and the target company will become a wholly-owned subsidiary of the group, primarily engaged in the wholesale and distribution of pharmaceuticals. The board believes this move is an important step in the group's strategic development in the traditional Chinese medicine sector, aiming to enhance management efficiency and expand business into value-added services
According to the announcement from YUES INTL HLDG (01529), on July 8, 2025, the Group entered into an equity transfer agreement through its indirect wholly-owned subsidiary to acquire 100% equity of Bozhou Le Laohao Pharmaceutical Co., Ltd. (the target company) for a total consideration of RMB 900,000, which was determined after fair negotiation between the contracting parties. The Board of Directors expects that this acquisition will not have any significant adverse impact on the Group's financial condition or operations in the short term. Upon completion, the target company will become an indirect wholly-owned subsidiary of the Company, and its financial performance will be consolidated into the Group's consolidated financial statements.
The target company holds a "Drug Business License" and primarily engages in the wholesale and distribution of pharmaceuticals, sales of Class I and Class II medical instruments, and wholesale of medical protective supplies for healthcare personnel. As an important link in the pharmaceutical and end-user consumption chain, the target company's pharmaceutical distribution business plays a vital role in safeguarding public health. The Board believes that this acquisition marks a significant step in the Group's strategic development in the field of traditional Chinese medicine, extending the Group's logistics capabilities into the pharmaceutical logistics sector, connecting upstream traditional Chinese medicine manufacturing with downstream retail pharmacies and hospitals. This acquisition demonstrates the Group's important layout in its development plans in the field of traditional Chinese medicine.
The Group plans to enhance management efficiency and integrate resources based on the existing business of the target company. The Group's goal is to become a comprehensive supply chain service provider, expanding its business beyond basic distribution to provide value-added services such as financial, data, and management solutions for the industry chain. The Group also plans to apply digital technology to reduce operational costs and utilize artificial intelligence to improve decision-making accuracy. Through these measures, the Group strives to transform its logistics capabilities into data capabilities, service capabilities, and financial capabilities. Additionally, the Group plans to use the target company as a starting point to further explore upstream and downstream business opportunities in the industry chain, thereby expanding its value creation scope.
Based on the above, the Board believes that the acquisition of the target company is in the overall interest of the Company and its shareholders and aligns with the Group's long-term strategic goals.
The Board understands that enterprises engaged in the pharmaceutical business face risks related to legal and regulatory compliance, supply chain management, and quality control. These risks can not only affect the economic performance of the enterprise but may also pose a threat to public health. The Group will continue to strengthen training on applicable laws and regulations, optimize supply chain management, and enhance quality control systems to reduce operational risks and improve overall market competitiveness, creating greater value for society and shareholders
