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The listing of H-shares by the group opens a new journey of internationalization.
Release time:
2014-01-22
The listing of H-shares by the group opens a new journey of internationalization.
At the beginning of the Year of the Horse, the highly anticipated Lijun B to H share project has finally concluded perfectly, with its H shares welcoming their first trading day on January 16, 2014, on the main board of the Hong Kong Stock Exchange. This marks a solid step for Lijun Group towards internationalization. To highlight the company's main business, the Hong Kong H shares are abbreviated as "Lijun Pharmaceutical," with the stock code "1513."
"This is a new starting point for Lijun Group after 29 years, and also a new opportunity for the company to move towards internationalization," said Mr. Li Rucai, the secretary of the group's board of directors, with joy. He stated that based on the company's development strategy, the B to H conversion not only greatly improved the liquidity of B shares, providing convenience for B shareholders to realize investment value, but also provided more favorable conditions for the company's international financing, international cooperation, and brand expansion, implementing domestic and foreign business expansion and resource integration.
Lijun Group's transition to H shares does not involve issuing new shares, with the number of shares traded in H shares accounting for 112 million shares of Lijun Pharmaceutical's total share capital, representing 37.87% of the total share capital, with a market value of approximately HKD 4.25 billion. Market analysts believe that this "B to H" listing will have a positive impact on Lijun's international development, as Lijun successfully transforms into a cross-market, cross-exchange listed company, bringing a more reasonable equity structure for the company's development. The company will have a broader platform to allocate and integrate industries, capital, and various resources, thereby enhancing its core competitiveness and profitability, further promoting the realization of its internationalization strategy.
The group announced the B to H conversion plan in January 2013. After receiving approval from the China Securities Regulatory Commission on September 29, 2013, the process of changing the listing location accelerated. On December 13, 2013, the Hong Kong Stock Exchange gave its principle approval, and it was listed on the exchange on January 16, taking about one year. Industry insiders believe that revitalizing the liquidity of B shares is a complex plan, and Lijun's successful transition to H shares provides valuable experience for other high-performing B share companies.
According to the performance report released on the 14th, for the entire year of 2013,Groupachieved sales revenue of 4.619 billion yuan, a year-on-year increase of 17.12%; achieved a net profit of 486 million yuan, a year-on-year increase of 10.08%. The continuous growth of original leading products such as Ginseng and Astragalus Injection, Urinary Follicle Stimulating Hormone, Urinary Luteinizing Hormone, Antiviral Granules, Gastric Triple Therapy, and Lijun Delai, as well as the rapid growth of new products such as Esomeprazole, Mouse Nerve Growth Factor, and Leuprolide, ensures the company's future profit growth.
Some analysts believe that a good asset structure, including ample cash assets and multiple land assets from the "Three Olds Renovation" waiting to be realized, as well as the anticipated nationwide replication of successful marketing reform models, raw material drug integration, and the implementation of equity incentives, all have great potential to enhance the current stock price valuation.
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