Essence Pharma adjusts fundraising and invests nearly RMB 100 million to build herbal medicine bases

The business club reported on March 3 that it was plagued by the crazy price increase of Chinese herbal medicines in recent years. Essence Pharmaceuticals plans to halve its investment under the premise that the original design capacity of investment projects will not change, and the balance of funds will be 98.14 million yuan to the Chinese herbal medicine processing base. The project will stabilize the supply of raw materials and improve the industry chain of the Chinese medicine business.

According to the original fundraising plan, Essence intends to invest 188 million yuan for the first time to raise funds for the construction of "Golden Buckwheat Capsule Technology Transformation Project", "Wang Shi Bao Chi Pill Expansion, Efficiency Improvement, and Function Innovation Project" and "Zheng Chai Huyin Granules Technical Transformation Project. ".

The company stated that considering the construction of the former Chengyi processing workshop at the original site of the project, due to the limited space, it will not be conducive to the follow-up development of Chinese herbal medicine varieties; coupled with the changes in the supply of Chinese herbal medicines in recent years, it was decided at the domestic Chinese herbal medicine distribution center. Luzhou, Anhui Province started the construction of a Chinese herbal medicine processing base project, which will be matched with the adjusted raised capital project.

In addition, the announcement disclosed that the company intends to reorganize its Anhui Kangpu Pharmaceutical Co., Ltd. and Anhui Kangpu Chinese Herbal Pieces Co., Ltd. to establish and increase the capital of the pharmaceutical CommScope (Luzhou) Co., Ltd., in order to use the Pingding to undertake the first fundraising project The construction and operation of some of the process links will expand the procurement and supply of Chinese herbal medicines and create a production and operation platform for the processing and processing of Chinese traditional medicines.

Essence Pharmaceuticals also disclosed today that the company plans to invest 165 million yuan to invest in raw materials and its intermediate relocation projects. It is expected that the annual sales income will reach 176 million yuan, and a net profit of 17 million yuan will be realized.