Conba Announces Plan to Divest 7.84% Stake in Zhen Shiming to Focus on TCM and Health Business

ZhiTong Finance APP reported that Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) announced that in order to actively promote the faster development of its participating company, Jiangxi Zhenshiming Pharmaceutical Co., Ltd. (ZSM Company), and its connection with the capital market, the company intends to use the total equity value of ZSM Company at 3.7 billion yuan as the basis for the transfer price. Specifically, the company will publicly list and transfer 7.84% of ZSM Company's equity (corresponding to a registered capital of 7.837838 million yuan) at a minimum listing price of no less than 290 million yuan on the Zhejiang Property Exchange.

It is reported that ZSM specializes in pharmaceutical R&D, production, and sales, mainly focusing on the production of ophthalmic drugs, eye care, and health products. Its main products include medicines (such as eye drops) and eye care products (such as steam eye masks, eyewash, and eye patches). In 2021, ZSM achieved sales revenue of 1.101 billion yuan, including 325 million yuan from ophthalmic drugs and 724 million yuan from eye care and health products. From January to September 2022, ZSM achieved sales revenue of 712 million yuan, including 303 million yuan from ophthalmic drugs and 363 million yuan from eye care and health products.

According to the company's preliminary estimates, if this equity transfer is completed at the listing base price, it is expected to increase the net profit of our company by approximately 86 million yuan, providing more resources for focusing on and accelerating the development of the company's traditional Chinese medicine health business.