Guizhou's Sanli Pharmaceutical completes IPO

Guizhou Sanli Pharmaceutical Co., Ltd. (603439.SH) is listed on the Shanghai Stock Exchange on April 28.  [Photo provided to english.guiyang.gov.cn]

Guizhou Sanli Pharmaceutical Co., Ltd. (603439.SH), an invested enterprise of Guiyang Gongtou Biopharmaceutical Fund, was listed on the Shanghai Stock Exchange on April 28, issuing 40.74 million ordinary shares at a price of 7.35 yuan ($1.03) per share.

Sanli Pharmaceutical, valued at about three billion yuan after its IPO, has become the 30th A-share listed company in Southwest China's Guizhou province, and the second listed company invested by the Guiyang Venture Capital Co., Ltd following Xintian Pharmaceutical.

Founded in 1995, Sanli Pharmaceutical is a modern traditional Chinese medicine enterprise integrating research, development, production and marketing. The company has been constantly developing unique and effective products with rich resources of Chinese medicinal materials in Guizhou province, the prescriptions of Miao medicine, and modern science and technology. Its core product Kaihoujian spray, an exclusive Chinese medicine, has a high brand awareness and market share in the fields of throat diseases and Chinese patent medicine for children. It has been included in the national medical insurance catalogue and the local essential drug catalogue in some provinces.

Since investing in Sanli Pharmaceutical in October 2014, Guiyang Venture Capital has focused on resources integration, financing support, and capital operation, providing Sanli Pharmaceutical with the post-investment value-added services, including market development, talent training, corporate governance, industry mergers and acquisitions, and listing. The integrated service system helps reduce risks facing Sanli Pharmaceutical in its development and improve its standardized management level and sustainable development ability.

After more than five years of development, Sanli Pharmaceutical's operating income increased from 159 million yuan before the investment to 884 million yuan in 2019; its net profit increased from 19 million yuan in 2013 to 133 million yuan in 2019; and its annual tax contribution from 20 million yuan in 2013 to 96 million yuan in 2019.

In addition, Sanli Pharmaceutical has actively responded to local governments' call for poverty alleviation. It has strived to help boost local Chinese herbal medicine plantation industry so as to help poverty-stricken farmers to gain a stable economic source and promote rural industries.

Guiyang Venture Capital said it will continue its investment in emerging industries including medicine and health, big data, information technology, and high-end equipment manufacturing.