BEIJING, Sept. 1 /PRNewswire-FirstCall/ -- China Biopharmaceuticals Holdings, Inc. (BULLETIN BOARD: CHBP) , a leading Chinese pharmaceutical company focused on the development, manufacturing and distribution of innovative drugs in China, today announced that CHBP and the shareholders of Suzhou Hengyi Pharmaceuticals of Feedstock Co., Ltd. ("Hengyi") have agreed to rescind and terminate the agreement under which CHBP acquired 75.8% of the ownership interest of Hengyi. The consideration of 1,200,000 shares of CHBP's common stock and the additional capital contribution of $620,000 will be returned to CHBP and CHBP will have no further obligations to Hengyi or its shareholders. The 75.8% ownership interest of Hengyi will be returned to its shareholders, and Hengyi will no longer be a subsidiary of CHBP.
Chris Mao, CHBP CEO stated, "Based on our evaluation of Hengyi's performance, we have determined that Hengyi does not fit into our future growth strategy. We have negotiated a successful exit out of Hengyi's line of raw material products due to low profit margins and limited complementarity to our expanded drug manufacturing activities. This disposal improves our asset quality and will have a positive impact on our earnings. This will also make room for future acquisitions in the field of raw materials and intermediaries with superior product lines and more complementary products for our recently updated and expanded downstream manufacture operations. We will continue to improve the quality of our operating assets. We will use the returned considerations for other acquisitions and internal capital needs. We will continue to make appropriate efforts to enhance shareholder value."
About China Biopharmaceuticals Holdings
China Biopharmaceutical Holdings, Inc (CHBP) is a research driven pharmaceutical company dedicated to the discovery, development, manufacturing and marketing of small and large molecule pharmaceutical products, including medicines, vaccines, and active pharmaceutical ingredients for various categories of diseases.
CHBP is a US public company with operating subsidiaries and senior management based in China.
For further information, please visit our website at http://www.cbioinc.com/.
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CONTACT:
Chris Peng Mao, CEO
86-10-8525-1616
