China Traditional Chinese Medicine Holdings Co. Ltd agreed to invest in two pharmaceutical companies by way of capital increase.
The company will invest 46.9 million yuan in Jiangsu Jiangkang Pharmaceutical Co. Ltd. and 35.1 million yuan in Heilongjiang Shuanglanxing Pharmaceutical Co. Ltd.
The investments will be made through China Traditional's unit Jiangyin Tianjiang Pharmaceutical Co. Ltd., which will hold 51% in each of Jiangkang Pharmaceutical and Shuanglanxing after the transactions close.
Jiangkang Pharmaceutical will help China Traditional fill its production gap for traditional Chinese medicine products in Jiangsu province. Meanwhile, the investment in Shuanglanxing will enable China Traditional to produce and sell concentrated traditional Chinese medicine granules in Heilongjiang Province.
As of March 6, US$1 was equivalent to 6.31 yuan.
