Another "01" company disappears! The well-established pharmaceutical store of over 70 years, China Chemical Pharmaceutical, made a decision at its board meeting on the 11th to improve overall operational strategy effectiveness. It plans to establish China Investment Holdings at a 1-to-0.5 stock swap ratio. The date for the stock conversion is tentatively set for September 2nd. Upon completion of the stock conversion, China Chemical Pharmaceutical will cease to be listed, and China Chemical Holdings will be listed under the symbol "37XX."
China Chemical's stock code is "1701," established on March 12, 1952, and listed on the stock exchange on February 9, 1962. Currently, its capital is NT$29.81 billion. After the listing of China Chemical Holdings, its capital will change to NT$14.9 billion. As the number of "01" companies in the stock market decreases, the future change of China Chemical's stock code highlights the pharmaceutical industry entering a period of generational transition. With Evergreen and China Chemical sequentially transforming into holding companies, whether it will trigger a trend in the pharmaceutical industry is also of great concern.
Sun Yin-nan, spokesperson for China Chemical, stated that to respond to the opportunities and challenges brought by the global supply chain restructuring, and to achieve operational growth to consolidate its existing market leadership position and enhance overall operational strategy effectiveness, the board of directors has decided that the group will integrate resources under China Chemical Holdings in the future. China Chemical Pharmaceutical will become a wholly-owned subsidiary of "China Chemical Holdings."
It is understood that to comply with regulations, China Chemical Pharmaceutical will be the first company under China Chemical Holdings after its establishment. Following next year will be the establishment of Chunghwa Yuming Healthcare, mainly focused on pharmaceutical distribution, followed by Chunghwa Senior Lifestyle Services. As for Suzhou China Chemical and the already listed China Life Sciences, it will depend on the current situation.
China Chemical Pharmaceutical is one of the generic drug manufacturers with high technological thresholds, with related enterprises extending to animal medicine, medical equipment, and others. Sun Yin-nan said that after the transition to a holding company, actual operations will undergo segmented management. This new operational model will enhance the efficiency and scalability of the entire enterprise through centralized coordination processes and reduce transaction costs through operational strategy transformation to obtain operational leverage and investment capabilities. Segmented operations can clarify performance indicators and division of labor, promote digitization centrally, and achieve resource sharing to maximize synergy. "China Chemical Holdings" will be developed into a diversified holding platform, promoting diversified industrial cooperation and seeking more robust and proactive development of each business unit and effective utilization of group resources.
It is understood that Sun Yin-nan, who also serves as the general manager of Chunghwa Yuming Healthcare, will retire at the end of April, and the 11th was his last significant event presiding over China Chemical.
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