Optimizing asset structure Focusing on the development of main businesses Forging ahead on a new journey
2022-04-29


 

Since its listing in Shenzhen Stock Exchange in 2014, Guangdong VTR Bio-tech Co., Ltd. has expanded its main business to three business segments through the merger, acquisition and restructuring strategy, that is, biological enzyme preparation, biomedicine, animal nutrition and health. Under the circumstance of fierce competition in the industry, VTR has been in a state of continuous profitability in the biomedicine segment. As one of the high-quality assets, it has made good profits for the company.
 

Based on business development, industrial planning and other comprehensive factors, VTR decided to sell its assets in the biomedicine sector, and the funds obtained from the sale of assets will be used to increase investment in the two main businesses of biological enzyme preparation, animal nutrition and health, as well as industrial upgrading. Under the current situation that brick-and-mortar enterprises are facing multiple tests such as economic situation and COVID-19, VTR takes the initiative to divest the high-quality assets in the biomedicine sector, and focuses on the development of two main businesses, which demonstrates VTR’s confidence and determination to adhere to high-quality development. Upon the completion of the asset sale, VTR will withdraw from the biomedicine business segment. In the future, VTR mainly has the development plans as follows:
 

Focus on making main businesses grow bigger and stronger. Making use of the core competitive advantages of talents, technology, funds, channels, customers and brands accumulated over the past three decades, VTR will focus on the two main businesses of biological enzyme preparations (including washing, food, energy and other fields), animal nutrition and health, and utilize the capital obtained after the restructuring to increase the investment and industrial upgrading of its main businesses, so as to further make the main businesses grow bigger and stronger.
 

Continue to strengthen R&D investment and innovation. VTR will increase the investment and construction of research and innovation platforms, speed up the introduction and training of research talents, and accelerate R&D cooperation at home and abroad as well as the introduction of new technologies and the development of key products; VTR will vigorously develop biosynthesis technology, and launch innovative high-value-added green products; VTR will strengthen applied research, reinforce the construction of R&D teams and intellectual property rights, and improve our capacity for independent innovation.
 

Accelerate the process of internationalization. VTR will vigorously carry out international cooperation with internationally renowned colleges and universities and scientific research institutions, introduce world-class scientific research talents, accelerate the implementation of overseas registration of relevant products and the construction of overseas patent technologies, strengthen overseas online media and offline activities and other forms of publicity and promotion, further expand overseas markets, and continuously improve overseas marketing networks.
 

Overview and progress of transaction
 

VTR held the 13th conference of the 7th Board of Directors and the 9th conference of the 7th Board of Supervisors on January 28, 2022, and held the first extraordinary general meeting of shareholders for 2022 on March 31, 2022, in which the Proposal on the Sale of VTR’s Major Assets and Related Party Transactions and other proposals were examined and approved, and it was agreed that VTR will sell all assets related to the biomedicine business, that is, cash sale of all the equity held in three target companies, including Hunan Norchem Pharmaceutical Co., Ltd., Hunan KYF Pharm Co., Ltd. and Henan Lihua Pharmaceutical Co., Ltd.
 

At present, the transaction has been completed, and VTR has obtained the funds of RMB 1.303 billion from equity transfer; and also recovered RMB 907 million, the principal and interest of the debt repayment from the target company, totaling RMB 2.21 billion. VTR will use this capital to increase the investment and industrial upgrading of biological enzyme preparation, animal nutrition and health, so as to further make VTR’s main businesses grow bigger and stronger.
 

Impact of this transaction on VTR

Upon the completion of this transaction, VTR will withdraw from the biomedical business segment. Consistently focusing on the biological industry, based on the big health field, being customer value oriented, VTR develops various kinds of new biological products with modern biotechnology technologies, while providing customers with the overall biotechnology solutions.

 


 

VTR Nationally-recognized Enterprise Technology Center

We aim to rejuvenate China through science and technology, serve China with industry, and seek endless development. In the future, VTR will still continue to make use of the scientific research advantages of the national-recognized enterprise technology center and other platforms, and carry out extensive international cooperation, school-enterprise cooperation and enterprise cooperation, make advantageous industries specialized and powerful, improve the level of scientific research, introduce first-class scientific research talents, accelerate the process of internationalization, and constantly forge ahead and create brilliance on the road of biotechnology innovation, customer and shareholder value creation, and high-quality development!

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