Gelonghui, May 14, 丨 Fosun Pharmaceutical (600196.SH) announced that according to the “Cooperation Agreement” reached between Fosun Health, its holding subsidiary, and the Chancheng District People's Government of Foshan City on February 23, 2024, the Company's holding subsidiary Fosun Health signed a “Capital Increase Agreement” with Foshan Chanxi City Investment on May 14, 2024. According to the “Capital Increase Agreement”, Foshan Chanxi City Investment plans to designate entities (including funds, holding companies or other entities) to contribute RMB 30,000 million to Fosun Health's additional registered capital of RMB 156.17 million (the “capital increase”) according to the pre-investment valuation of RMB 10.2 billion.
The consideration for this capital increase was determined based on the target group's pre-investment valuation of RMB 10.2 billion. The pre-investment valuation refers to the valuation of the total equity value of the Group's shareholders as of December 31, 2022, as stated in the “Valuation Report” of RMB 8.625 billion and the value of the RMB 1.5 billion surviving debt-to-share conversion of Fosun Health that the Company will complete as agreed before this capital increase, and was determined through negotiations between the parties concerned. The investment valuation is approximately 1.61 times the target group's consolidated revenue (unaudited) in 2023 (i.e., a multiple of the market sales ratio (P/S)).
After the transaction (that is, debt-for-equity swaps and this capital increase) is completed, the total shareholding ratio of the Company and the holding company Ningbo Tiding in Fosun Health will be reduced from 100% to 97.14%, and Fosun Health remains a holding subsidiary of the Company.