Gushengtang (02273): Plans to acquire controlling interests in Nanjing Shi Jinmo, Nanjing Baihui, Gulou Yirun and Chengdu Qingyang to expand the network of offline medical institutions

Zhitong Finance App News, Gushengtang (02273) announced that Gushengtang (Jiangsu) Traditional Chinese Medicine Health Management Co., Ltd., a subsidiary of the company, has recently signed an equity transfer contract with the shareholder (seller A) of Nanjing Shijinmo Traditional Chinese Medicine Clinic Co., Ltd. (Nanjing Shijinmo). Based on this, Gushengtang Jiangsu agreed to acquire, and seller A agreed to sell Nanjing Shijinmo's controlling interest (acquisition item A).

A subsidiary of the company has recently entered into an equity transfer contract with the shareholders (seller B) and ultimate beneficial owner of Nanjing Baihui Traditional Chinese Medicine Clinic Co., Ltd. (Nanjing Baihui). Based on this, the subsidiary agreed to the acquisition, while seller B agreed to sell Nanjing Baihui's controlling interest (acquisition item B).

Gushengtang Jiangsu recently entered into an equity transfer contract with the shareholders (seller C) and ultimate beneficial owner of Nanjing Gulou Yirun General Clinic Co., Ltd. (Gulou Yirun). Based on this, Gushengtang Jiangsu agreed to acquire, while seller C agreed to sell Gulou Yirun's controlling interest (acquisition item C).

Chongqing Gushengtang Medical Management Co., Ltd., a subsidiary of the company, has recently signed an equity transfer contract with the shareholder (seller D) of Chengdu Qingyang Bai'an Lifelong Traditional Chinese Medicine Clinic Co., Ltd. (Chengdu Qingyang). Based on this, Gushengtang Chongqing agreed to acquire, while seller D agreed to sell Chengdu Qingyang's controlling interest (acquisition item D).

After the completion of these acquisitions, Nanjing Shi Jinmo, Nanjing Baihui, Gulou Yirun and Chengdu Qingyang (collectively referred to as “target companies”) will become subsidiaries of the Company, so their financial results will be incorporated into the Group's comprehensive financial statements.

The target companies are all medical institutions, mainly engaged in providing comprehensive traditional Chinese medicine services. These acquisitions are in line with the Group's expansion strategy to expand its network of offline medical institutions through acquisitions, provided that the company believes that such acquisitions will (among others) increase the company's domestic market share; and create a synergy between the target company and the Group's other offline medical institutions and online medical platforms.