Property developer Join-In Holding (600745) plans to acquire a 55 percent stake in Tibet Taida Housheng Pharmaceutical for 5.8 million yuan from Qinghai Gelatin (000606), which will no longer have a stake in the target company after the completion of the transaction, reports yicai.com, citing a company filing.
Taida Housheng Pharma has a registered capital of one million yuan, and recorded net profit of 2.52 million yuan and revenue of 292 million yuan in 2011.
Through the end of 2011, it had total assets of 72.34 million yuan and total liabilities of 62.21 million yuan.
Taida Housheng Pharma is involved in the Chinese medicine, Chinese medicine raw materials, chemical preparations, antibiotics, chemical drugs, and medical equipment businesses.
According to Qinghai Gelatin, the disposal of Taida Housheng Pharma will enable it to focus on its main business of producing gelatin and health care products.
Join-In Holding said the acquisition will help to diversify its business from the real estate sector and reduce operating risk.