The business operations of Asia Pacific Pharmaceutical and Baichuan Jirui can be said to be completely different. The reason why we purchased Asia Pacific Pharmaceutical is that we are very optimistic about this industry. Asia Pacific Pharmaceutical was established in 1989, completed the shareholding reform in 2001, and was successfully listed in 2010. As a real estate company, Baichuan Jirui only went public in March this year. The company is not strong enough. The opportunity to purchase Asia Pacific Pharmaceuticals will be of great help to the company.

1. Introduction to the acquisition of Asia-Pacific Pharmaceuticals by Baichuan St. Regis

On April 7, 2021, Baichuan St. Regis (Beijing) Technology Co., Ltd. successfully acquired Shaoxing Keqiao Asia-Pacific Real Estate Co., Ltd. holds a 1.15% stake in Zhejiang Asia Pacific Pharmaceutical Co., Ltd., priced at RMB 20.6185 million.

2. Business of Asia Pacific Pharmaceutical Company

Currently, the company has tablets (including penicillins), hard capsules (including cephalosporins, penicillins), and transdermal patches. It has 8 modern pharmaceutical production workshops that comply with national GMP standards, including hormones (hormones), freeze-dried powder for injection, and powder for injection (cephalosporins). At the same time, the company is a "Zhejiang Provincial High-tech Enterprise" and a "National Torch Plan Key High-tech" enterprise". Asia-Pacific Technology R&D Center was rated as "Zhejiang Provincial High-tech Research and Development Center". The "Yatai" trademark was rated as "Zhejiang Province Famous Trademark".

3. The latest news about Asia Pacific Pharmaceuticals

The third quarter performance forecast disclosed by Asia Pacific Pharmaceuticals on October 14 showed that the company’s net profit attributable to the parent company in the first three quarters was a loss of 90 million yuan. -100 million yuan, excluding non-net profit loss of 120 million yuan_130 million yuan. Since Asia Pacific Pharmaceutical recorded a huge loss of 1.94 billion yuan in net profit in 2019, the company's performance has been dismal.

Data show that the company continued to lose money after deducting non-net profits in 2020 and net profits in the first half of 2021. In addition, the company's controlling shareholder Asia Pacific Group and persons acting in concert have had financial loan contract disputes with multiple banks, and their shares have been publicly auctioned many times. The company faces the risk of changing the controlling stake.