Changes in Hong Kong stocks | Gushengtang (02273) rose nearly 3% in early trading to expand its offline medical institution network expansion strategy through acquisitions

The Zhitong Finance App learned that Gushengtang (02273) rose nearly 3% in early trading. As of press release, it rose 2.31% to HK$29.18, with a turnover of HK$1.095,500.

According to the news, Gushengtang announced that it intends to acquire controlling interests in Nanjing Shi Jinmo, Nanjing Baihui, Gulou Yirun, and Chengdu Qingyang. 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.