Zhejiang Jingxin Pharmaceutical Co., Ltd. (002020.SZ) announced on Dec. 16 that it intended to inject capital into Dongfanghong Pharmaceutical Co., Ltd. based in Tengchong County, Yunnan province and become its holding company. When the audit, assessment and due diligence of the target company are completed, the specific amount of investment would be determined according to the assessed value.

According to the announcement, Dongfanghong Pharmaceutical is mainly engaged in production and sale of Chinese patent medicine with registered capital of RMB 12 million, Changweining tablets and Shenling Baizhu Granule manufactured by Dongfanghong are national protected traditional medicines while Compound Mantuoluo medical solution is its exclusive product.

Being the holding company of Dongfanghong, the investment can contribute to increase Jingxin Pharmaceutical's distinctive Chinese medicine products, improve the Chinese medicine products structure as well as further improve its competitiveness and profitability.