The concert party of Fengyuan Pharmaceutical's controlling shareholder plans to transfer a combined 23.52 percent stake to Bengbu Investment Group for approximately 701 million yuan. The company's actual controller may change from Li Rongjie to the Bengbu Municipal State-owned Assets Supervision and Administration Commission. The transferors are Anhui Wuwei Pharmaceutical Factory, Ma'anshan Fengyuan Enterprise Management Company, and Bengbu Tushan Enterprise Management Company. The three parties will transfer about 109 million shares and will no longer hold any shares after the transaction. Bengbu Investment Group will become the single largest shareholder. The letter of intent values the target shares based on a total market capitalization of 2.98 billion yuan for the company, representing a certain premium over the latest closing market cap of 2.43 billion yuan. The final price will be subject to formal documents and state-owned asset approval. Fengyuan Pharmaceutical has faced performance pressure in recent years, with net profit attributable to the parent company falling 38.19 percent year-on-year in 2025, and revenue continuing to decline in the first quarter of 2026. Bengbu Investment Group is the main state-owned capital operation entity in Bengbu, with total assets of 53.2 billion yuan. It already controls Dafu Technology and Jiaxian Shares, and this acquisition is an important move in its pharmaceutical and healthcare sector.
Anhui Fengyuan Pharmaceutical Co LtdBengbu Investment Group plans to acquire 23.52% stake at a premium, with potential change in control to state-owned entity.
Shenzhen Tatfook TechAs the acquirer, it expands into pharmaceutical sector, aligning with strategic goals.