Shandong Freda Biotech Co., Ltd. ("Freda Bio"), a "medical beauty platform" under Lushang Group, is planning to expand its "circle of friends" through mixed ownership reform, with "hyaluronic acid" as a basis for further developing the health and beauty industry business.
Freda Biotech plans to introduce strategic investors through a public listing on the Shandong Equity Exchange Center to increase capital and expand shares. This new share capital will account for no more than 17.58% of the share capital after the capital increase. Among them, the strategic investor subscription ratio will be no more than 17.58%. If it is higher than 16.90%, employees can subscribe for a ratio of no more than 0.68% according to the price agreement for introducing strategic investors.
Fredda Biotech was established in June 1998, with a current registered capital of 75 million yuan. Lushang Development and its wholly-owned subsidiary Shandong Freda Pharmaceutical Group hold a total of 100% of the shares. Freda Biotech is an important platform for the development of Lushang in the health and beauty industry. It is known as the pioneer and leader of domestic hyaluronic acid skin care products. It has been selected as a gazelle enterprise in Shandong Province and one of the "2021 Shandong Province Manufacturing High-end Brand New Additions" Cultivate enterprises."
In the health and beauty industry, Lushang Development owns Frieda Biotech and has a stake in Iparhan (the first domestic natural aromatic product manufacturer integrating planting, production, sales, and tourism). It is the only company in the country that has the geographical indication protection of "Lavender Essential Oil"), and owns multiple product brands such as "Yilian", "Shanyan", "Dr. Ai'er" and "Iparhan"; in terms of raw materials and additives, the company owns Transparent Focus Freda, which has an annual production capacity of 420 tons of acid raw materials, and Freda Biotechnology, which is engaged in biological fermentation technology.
Shandong Provincial Commercial Group Co., Ltd. (referred to as "Lushang Group") is a large state-owned enterprise established by the Shandong Provincial Department of Commerce at the end of 1992. Its business scope includes modern retail, real estate, biochemical pharmaceuticals, It owns two listed companies ("Ginza Holdings" and "Lushang Real Estate"), a national agricultural product logistics engineering technology center and "Run" in various fields such as hotel tourism, cultural media, real estate, education, automobile trade, and small payments. "Jie", "Ginza" and "Akihito" are three well-known trademarks in China, with nearly 200,000 employees. It is now directly supervised by the State-owned Assets Supervision and Administration Commission of the People's Government of Shandong Province.