Date
20 October 2017

China Resources Med eyes major stake in Jiuzhitang, paper says

Pharma firm China Resources Medications Group Ltd. would be interested in snapping up Yongiin Group Inc.’s majority stake in Chinese herbal medicine maker Hunan Jiuzhitang Co, Ltd. (000989.CN) if the investment company puts the asset up for sale, the 21st Century Business Herald reported Wednesday, citing an unnamed person with knowledge of the matter. The industry has grown in the past few years but Jiuzhitang’s revenue and profits have stagnated amid management problems and a lack of core products, according to some industry insiders. And instead of trying to improve its performance, the company has increased investment in wealth management products, taking its total investment in the sector to 600 million yuan (US$97.96 million), the report said.

– Contact HKEJ [email protected]

TL/AC/SK

 

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