Kanghui Shares announced that it plans to transfer its 51% stake in controlling subsidiary Sichuan Chunsheng Pharmaceutical by agreement, with a transaction price of 64 million yuan. The company acquired the 51% stake in Chunsheng Pharmaceutical in 2023 by subscribing to its private placement for 56.7953 million yuan. After this transfer is completed, the listed company will no longer hold any equity in Chunsheng Pharmaceutical, and the target company will no longer be included in the consolidated financial statements. The buyer is Beijing Qishuyuan Technology, controlled by Luo Yuxuan, son of Chunsheng Pharmaceutical's original actual controller Luo Chunming. After the transaction, the actual controller of Chunsheng Pharmaceutical will change to Luo Yuxuan and Luo Chunming. Chunsheng Pharmaceutical had failed to meet performance commitments for several consecutive years. Its net profit after deducting non-recurring items, whichever is lower, was 452,400 yuan from April to December 2023, 5.2673 million yuan in 2024, and negative 36.7035 million yuan in 2025, far below the agreed targets. Performance compensation and share repurchase conditions have been triggered, but the original actual controllers Luo Chunming and Yin Nianjuan lack funds and are unable to fulfill the compensation and repurchase obligations. The transaction price is rounded to 64 million yuan based on principal plus interest at the five-year-plus loan prime rate of 3.5%, representing an increase of about 12.69% over the original investment principal, and is not lower than the target company's net assets attributable to the parent of 54.8488 million yuan at the end of May 2026. The transaction still requires approval by the shareholders' meeting, approval by the National Equities Exchange and Quotations, and completion of share transfer registration. In addition, after the transfer, the original guarantee for the subsidiary's 21.8 million yuan loan will become an external guarantee, with the related party Shiji Technology providing real estate mortgage counter-guarantee.
Shaanxi Kanghui Pharm Co LtdKanghui transfers its 51% stake in Chunsheng at a price only 12.69% above original investment, while Chunsheng missed performance targets and triggered compensation obligations that original controllers cannot fulfill, indicating a loss-making divestiture.
Chunsheng's performance failed to meet commitments, with net profit turning negative in 2025, and it will be delisted from consolidation after the stake transfer.
