CHCL: final terms for China pharmacy acquisition (seems like awfully good news)...
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Thursday April 6, 11:10 am Eastern Time
China Continental Finalizes Terms on Acquisition of Pharmaceutical Company -- Signing Ceremony on April 15
HONG KONG, April 6 /PRNewswire/ -- China Continental, Inc. (OTC Bulletin Board: CHCL - news) announced today that it will be acquiring Yang Tian Pharmaceutical Co. Ltd. (``YTP'). The acquisition will position the Company to be a dominant player in the pharmaceutical industry in China, as YTP is the largest Chinese-owned pharmaceutical company in China. The cost of the acquisition is US $24 million, which will be paid for in cash.
``This acquisition will be a strategic step for the Company to tap into the growth of the pharmaceutical industry in China,' commented Mr. Harry H.H. Ho, Chairman of China Continental, Inc. ``We view this investment as a strategic window to related life science businesses,' he added.
YTP, established in 1993, is engaged in the manufacturing, marketing and distribution of both Western and traditional Chinese medicines. Its medicinal products, which are marketed in capsules, tablets or ampoules, include treatment for fever, headaches, flu, sore throats, fatigue and congestive heart failure.
YTP's President, Madam Yang Ganghong, said, ``YTP has a consistent profitable record over the past 5 years, with net income estimated at US $3 million in 1999. With the introduction of new and more profitable products this year, we believe that YTP can achieve a net income of US $8.5 million in the year 2000.' Madam Yang, who has 26 years of corporate management experience, is currently a Professor of the Beijing Yueda Industry & Commerce University and holds directorship in three other companies.
YTP's products are currently marketed through their 36 branches, located in every province in China excluding Tibet. They are currently distributed to 3,000 hospitals and 20,000 drug stores. One of its products, ``SuLike,' which is for the treatment of flu, recorded revenue of US$ 20 million in 1999.
YTP is located in Chengdu, the capital of Si Chuan province, China, which is the most populated province in China. Its manufacturing plant, which is GMP certified, is built on a 50,000 square meter site and is one of the most modern facilities in China.
About China Continental Inc.
China Continental, Inc., traded on the OTC Bulletin Board market since 1995, is a holding company with over ten years of experience in developing turnkey businesses. Core activities include supplying manufacturing technology on a turnkey basis, high technology manufacturing techniques in primary industries, and developing and providing technologies in agricultural genetics and farming. The Company's agricultural genetics and farming activities are centralized in the Inner Mongolia Province of China, covering an area of 406 square kilometers to commercialize its genetic techniques in breeding as well as propagating superior livestock and products in its own Research and Development Institute. |
