--- title: "Why did Hezong Medicine Easy-To-Buy Pharmaceutical take over three insolvent companies in just one day with three \"one yuan transactions\"?" type: "News" locale: "en" url: "https://longbridge.com/en/news/292619239.md" description: "Hezong Medicine Easy-To-Buy Pharmaceutical's wholly-owned subsidiary acquired 65% of Shansong Yigou, 90% of Yigou Weimin, and 64% of Yuxin Traditional Chinese Medicine Family for a total consideration of 3 yuan. All target companies are insolvent, and the acquisition of Shansong Yigou constitutes a related party transaction. The company stated that this move aims to improve its pharmaceutical retail and B2C business layout, creating a second growth curve. Following this news, Hezong Medicine Easy-To-Buy Pharmaceutical's stock price rose by 20.01% the next day" datetime: "2026-07-14T11:38:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292619239.md) - [en](https://longbridge.com/en/news/292619239.md) - [zh-HK](https://longbridge.com/zh-HK/news/292619239.md) generator: "portal-rs" --- # Why did Hezong Medicine Easy-To-Buy Pharmaceutical take over three insolvent companies in just one day with three "one yuan transactions"? Every reporter: Chen Xing Every editor: Dong Xingsheng On the evening of July 13, Hezong Medicine Easy-To-Buy Pharmaceutical (SZ300937, stock price 23.21 yuan, market value 2.22 billion yuan) issued three acquisition announcements in quick succession. Its wholly-owned subsidiary plans to acquire 65% of Chengdu Shansong Yigou Technology Co., Ltd. (hereinafter referred to as Shansong Yigou) for a consideration of 1 yuan, 90% of Sichuan Yigou Weimin Pharmacy Chain Co., Ltd. for 1 yuan, and 64% of Sichuan Yuxin Traditional Chinese Medicine Family Pharmacy Chain Co., Ltd. for 1 yuan. The total cost of the three transactions is only 3 yuan, with the acquisition of Shansong Yigou constituting a related party transaction, as the transferor is Shen Niao Smart, an affiliate of the company's chairman Chen Shunjun. It is noteworthy that all three targets are in a state of insolvency. Hezong Medicine Easy-To-Buy Pharmaceutical stated that the purpose of signing the transactions is mainly to focus on the pharmaceutical retail sector, including pharmaceutical B2C (business-to-consumer) and other business needs, to improve the company's industrial chain layout. "The company is building a second growth curve, and pharmaceutical retail is currently one of our strategic priorities, so the transactions announced this time are basically related to the layout of pharmaceutical retail and B2C business." On July 14, Hezong Medicine Easy-To-Buy Pharmaceutical's stock price rose by 20.01%, closing at 23.21 yuan per share. ## Acquiring Majority Stakes in Three Companies for 3 Yuan The three acquisition announcements released by Hezong Medicine Easy-To-Buy Pharmaceutical indicate that the total expected expenditure for these three transactions is 3 yuan. First, the company's wholly-owned subsidiary Sichuan Hezong Medicine Easy-To-Buy Technology Group Co., Ltd. (hereinafter referred to as "Hezong Medicine Easy-To-Buy Technology Group") plans to acquire 90% of Sichuan Yigou Weimin Pharmacy Chain Co., Ltd. (hereinafter referred to as "Yigou Weimin") held by Chengdu Yijiujiu Supply Chain Management Co., Ltd. for a transaction price of 1 yuan. After the completion of this equity transfer, the target company will become a wholly-owned subsidiary of the company and will be included in the company's consolidated financial statements. Second, Hezong Medicine Easy-To-Buy Technology Group plans to acquire 65% of Shansong Yigou held by Sichuan Shen Niao Smart Technology Co., Ltd. (hereinafter referred to as "Shen Niao Smart") for a transaction price of 1 yuan. After the completion of the equity transfer, the target company will become a controlling subsidiary of the company and will be included in the company's consolidated financial statements. Third, Hezong Medicine Easy-To-Buy Technology Group plans to acquire 64% of Sichuan Yuxin Traditional Chinese Medicine Family Pharmacy Chain Co., Ltd. (hereinafter referred to as "Yuxin Traditional Chinese Medicine Family") held by Chengdu Jiuwu Smart Technology Co., Ltd. (hereinafter referred to as "Jiuwu") for a transaction price of 1 yuan. After the completion of this equity transfer, the target company will become a wholly-owned subsidiary of the company, and there will be no change in the scope of the company's consolidated financial statements. According to the company's announcement, except for Shen Niao Smart, which is an affiliate of the company's chairman and general manager Chen Shunjun, being a company under his control, the other two transaction parties do not constitute related parties with the company and its directors, supervisors, and senior management. ## Transactions Mainly Related to Pharmaceutical Retail and B2C Business Layout It is noteworthy that the aforementioned three companies are all in a state of insolvency, and their profitability is also relatively weak As of the end of 2025, the net assets of Shansong Yigou are -105,800 yuan, with annual revenue of 396,200 yuan and a net profit of -56,300 yuan; Yigou Weimin has net assets of -3,508,900 yuan, with annual revenue of 4,196,200 yuan and a net profit of -1,563,000 yuan; Yuxin Traditional Chinese Medicine Family has net assets of -11,131,200 yuan, with annual revenue of 58,124,300 yuan and a net profit of zero. However, Yao Yigou stated in the announcement that acquiring the above enterprises is beneficial for the company to focus on the core track of pharmaceutical retail and deepen regional layout; further improve the company's industrial chain layout; and solidify the layout of the traditional Chinese medicine retail track. In addition, in the announcement regarding the acquisition of Yuxin Traditional Chinese Medicine Family, Yao Yigou also mentioned that the company held the seventh meeting of the fourth board of directors on July 12, 2026, to review and approve the proposal on the acquisition of 64% equity of Sichuan Yuxin Traditional Chinese Medicine Family Pharmaceutical Chain Co., Ltd. Given that this review involves the arrangement for eliminating the reserved opinion in the company's 2025 financial audit report, the matter was prudently submitted to a special meeting of independent directors for prior review, meaning that before submitting this proposal for board review, it had already been approved by the special meeting of independent directors and the board's strategy and development committee. The aforementioned "reserved opinion in the financial audit report" refers to the fact that in Yao Yigou's 2025 annual report, the auditing agency pointed out that in April 2026, with the approval of the board of directors, Yao Yigou made prior corrections to accounting errors regarding changes in the scope of consolidation, the transfer of other equity instruments to long-term equity investment accounting and reporting, and the provision for credit impairment losses. This prior accounting error correction resulted in a reduction of Yao Yigou's net profit for 2024 by 4,403,500 yuan and a reduction of beginning retained earnings by 3,146,900 yuan; the minority shareholders' equity decreased by 7,462,700 yuan as of December 31, 2024. For the aforementioned prior accounting error correction by Yao Yigou, the auditing agency was unable to implement all necessary audit procedures to obtain sufficient and appropriate audit evidence, forming the audit conclusion that the aforementioned prior accounting error correction and its possible impact had been appropriately accounted for, reported, and disclosed. Regarding this acquisition, relevant personnel from Yao Yigou told the Daily Economic News that the main purpose of signing the transaction is that the company is currently focusing on the pharmaceutical retail track, including pharmaceutical B2C and other business needs, to improve the company's industrial chain layout. "The company is building a second growth curve, and pharmaceutical retail is currently one of our strategic focuses, so the transactions announced this time are basically related to the layout of pharmaceutical retail and B2C business. As for the reserved opinion, this announcement is not primarily aimed at elimination, but more from the perspective of the company's long-term development strategy planning." 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