China Resources Group Sells Jintaiyang Pharmaceutical for RMB 126 Million Amid Strategic Refocus

On December 2, Jinzhongzi Liquor, a controlled subsidiary of Anhui Jinzhongzi Group Co., Ltd. (in which China Resources Strategic Investment Co., Ltd. holds a 49% stake), announced that it had transferred its 92% equity interest in its subsidiary, Jin Taiyang Pharmaceutical, through a public listing for transfer.

As early as April 28, 2024, Jinzhongzi Liquor disclosed on the website of the Shanghai Stock Exchange the “Announcement on the Proposed Transfer of 92% Equity Interest in Its Controlled Subsidiary, Jintaiyang Pharmaceutical, via Public Listing.” The company subsequently conducted its initial public listing for the transfer of the 92% equity interest in Jintaiyang Pharmaceutical at the Anhui Property Rights Trading Center from August 28 to September 24, 2025, with an initial listing price of RMB 140 million.

By the end of the initial listing period, no qualified and valid prospective transferees were solicited, resulting in a failed first auction. To actively facilitate the equity transfer of Jintaiyang Pharmaceutical, Jinzhongzi Liquor re-listed the equity with a new reserve price set at 90% of the initial listing price (approximately RMB 126 million), which was ultimately acquired by Juncheng Pharmaceutical.

On December 1, 2025, Golden Sun Pharmaceutical completed the registration of changes with the Administration for Industry and Commerce and filed its Articles of Association, obtaining a renewed Business License issued by the Yingshang County Market Supervision Administration. As a result, Golden Seed Liquor no longer holds equity in Golden Sun Pharmaceutical, and Golden Sun Pharmaceutical is no longer included in its consolidated financial statements.

The Golden Sun Pharmaceutical, which is currently listed for sale, was established in 2000 with a registered capital of RMB 30 million.

In terms of R&D capabilities, Jintaiyang Pharmaceutical has established industry-academia-research collaborations in recent years with research institutions such as Anhui University, Chengdu Yilukang Medical Technology Service Co., Ltd., Fuyang Normal University, and Hefei Jiunuo Pharmaceutical Technology Co., Ltd. Through project cooperation, technology introduction, joint talent development, and the co-establishment of R&D platforms, the company has laid a solid foundation for adjusting its product structure, building technological reserves, and strengthening its talent team. Currently, the company operates two provincial-level R&D centers: the “Anhui Province Nucleoside Drug Engineering Technology Research Center” and the “Anhui Province Enterprise Technology Center.” It holds 69 authorized patents, one Anhui Province Famous Trademark, and one Fuyang City Well-Known Trademark. The company has received the China Industry-Academia-Research Innovation Award and the Anhui Province Patent Excellence Award, while its “Nucleoside Drug R&D Team” was honored with the title of Anhui Province “115” Innovation Team.

In terms of business operations, Golden Sun Pharmaceutical primarily engages in the production and sales of tablets, small-volume injections, hard capsules, active pharmaceutical ingredients (APIs), Class II psychotropic drug preparations, and chemical products (excluding hazardous chemicals). Its main products include Compound Musk Injection, Compound Brain Protein Hydrolysate Tablets, β-thymidine, Dexamethasone Acetate Tablets, Jiegu Xujin Capsules, Pancreatin Enteric-coated Capsules, and Prednisone Acetate Tablets. In addition to the production and sales of its proprietary products, Golden Sun Pharmaceutical is also involved in the procurement and primary processing of agricultural by-products and Chinese herbal medicines, as well as the import and export of various commodities and technologies on a self-operated and agency basis.

In terms of production capacity, Jin Taiyang Pharmaceutical currently operates four workshops, including an injection workshop, a solid dosage form workshop, and an extraction workshop. The company currently offers 51 product varieties with 86 specifications. Its annual production capacity includes 4 billion tablets, 100 million capsules, 150 million units of small-volume injections, 150 metric tons of synthetic active pharmaceutical ingredients (APIs), and 200 metric tons from the extraction workshop. In 2022, the company achieved sales revenue of RMB 156 million and a profit of RMB 13 million.

In addition, Golden Sun Pharmaceutical owns a modern pharmaceutical trading company specializing in drug logistics and distribution—Anhui Golden Sun Biochemical Pharmaceutical Co., Ltd., Pharmaceutical Trading Branch. In addition to underwriting all product varieties manufactured by Golden Sun Pharmaceutical, the trading company has established business relationships with many well-known domestic and international enterprises as their national general agent or regional agent. Within its service area, it has built a relatively comprehensive retail terminal network and a dense drug distribution network covering counties, townships, and villages, along with a logistics management center.

Notably, as a pharmaceutical company sold off at a low price, Golden Sun Pharmaceutical is not the “subpar asset” perceived by the market; while building a comprehensive pharmaceutical industry chain, it has also maintained robust financial health. At the end of 2024, Golden Sun Pharmaceutical reported net assets of RMB 165 million, audited revenue of RMB 161 million, and net profit of RMB 6.1869 million. In the first three quarters of 2025, the company’s revenue reached RMB 103 million, with net assets amounting to RMB 130 million as of the end of September.

Why Is Jinzhongzi Liquor Discounting and Selling Off a Profitable Pharmaceutical Company with Strong Growth? In its previous announcement, Jinzhongzi Liquor stated that this transfer aligns with the company’s development strategy of “strengthening the foundation, expanding the Fuhexiang aroma category, improving quality and efficiency, and achieving new glory,” and is conducive to further optimizing the industrial structure and focusing on the development of its core business.

On the surface, this appears to be a proactive strategic adjustment; however, the core reason is that Jinzhongzi Liquor is facing significant cash flow and debt pressures. According to Jinzhongzi Liquor’s latest financial report, the company generated RMB 628 million in revenue during the first three quarters of 2025, representing a year-on-year decline of 22.08%. The net profit attributable to shareholders of the parent company was a loss of RMB 100 million, widening from the loss of RMB 99.53 million recorded in the same period last year. The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses stood at a loss of RMB 109 million. More concerningly, this marks the fourth consecutive year of losses for Jinzhongzi Liquor, with cumulative losses reaching RMB 731 million. If the company fails to halt its losses for the full year of 2025, it will enter its fifth consecutive year of deficits.

By divesting Golden Sun Pharmaceutical, Golden Seed Liquor can not only replenish its capital but also leverage its backing by China Resources to focus exclusively on its liquor business, thereby shedding burdens and accelerating growth. Meanwhile, the sale of Golden Sun Pharmaceutical to Juncheng Pharmaceutical will pave the way for better development prospects. It is reported that Juncheng Pharmaceutical is supported by its parent company, Sanshun Pharmaceutical, a well-established pharmaceutical enterprise founded in 1983 with mature sales channels and marketing resources. By integrating into this system, Golden Sun Pharmaceutical can leverage these resources to expand its market reach and fully utilize its production capacity.

Since the beginning of this year, the “China Resources Group” has frequently divested non-core assets: China Resources Sanjiu transferred its equity stake in Anguo Traditional Chinese Medicine, and also sold its shares in Jointown Pharmaceutical Technology; China Resources Boya Bio-pharmaceutical Group has repeatedly lowered prices to offload an 80% stake in Boya Xinhe... Although the companies involved and the businesses divested differ, the underlying purpose behind shedding these non-core operations remains similar—these divestitures are not passive attempts to “dump burdens,” but rather proactive moves driven by a combination of policy, industry, and strategic factors. It is anticipated that through a series of strategic M&A activities and equity transfers, the “China Resources Group” will optimize resource allocation and unlock synergies, ultimately delivering accessible, high-quality products to the market.