When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

Cailian Press, August 2nd (Reporter Zhang Liangde) In recent years, Baiyunshan (600332.SH) has continued to increase investment in the beauty and health industry park in Baiyun District, Guangzhou City. The company announced tonight that it plans to invest 3.2 billion yuan in the GPHL Baiyunshan Fashion TCM Valley project in the park.

The announcement shows that the subject of this investment is the company's wholly-owned subsidiary, Guangzhou Baiyunshan International Medicine and Healthcare Industry Co., Ltd. (hereinafter referred to as "Baiyunshan International Medicine"). The Tianhua Park project includes two plots of land with a total area of 181 mu, planned according to chemical drugs, traditional Chinese medicine areas A and B. Among them, the area of the smart production area of high-end chemical preparations is 88 mu, and the area of the modern production area of classical prescription Chinese medicine and the scientific and technological innovation office area is 93 mu, which includes the production of Chinese medicine intermediates and Chinese medicine preparations. The project construction period is 3 years, and it is planned to be completed by the end of 2027.

The company believes that the Tianhua Park project is conducive to the integration of resources and the development of aggregation, and is conducive to the transformation and upgrading of enterprise automation, intelligence, and digitization.

The preliminary planning of the Tianhua Park project can be traced back to the first half of 2023. In May of last year, Guangzhou Baiyunshan International Medicine and Health Industry Co., Ltd. won two industrial land in the beauty and health industry park, with a total area of 199.7 mu and a total land transfer amount of approximately 0.241 billion yuan. The total value of many indicators after reaching production, such as the average annual industrial output value, wholesale sales, retail sales, and service revenue, is expected to exceed 1 billion yuan.

Cailian Press reporters searched relevant government websites such as the Guangzhou Municipal People’s Government and the Baiyun District People’s Government and found that since 2021, many of Baiyunshan's subsidiaries such as Hejigong, Mingxing, and Hehuang have settled in the beauty and health industry park. In addition, the logistics project of Guangzhou Pharmaceutical Co., Ltd. has also settled in the park. At present, the above projects are progressing smoothly. In April of this year, Mingxing Pharmaceutical entered the trial production stage, Hejigong has entered the final construction stage.

But the company stated that the companies that entered the park in the early stage were relatively dispersed, and the industrial agglomeration effect was limited, and resources could not be effectively integrated and shared. The Tianhua Park project is in line with the city’s development plan, drug regulatory requirements, and the needs of enterprise production site relocation and commissioned production capacity transfer. At the same time, this project and previous projects settled in the same park may help to promote the integration of resources of the company's subsidiary companies and enhance the industrial scale and agglomeration effects. At the same time, the Tianhua Park project can form industrial cooperation with the logistics project of the pharmaceutical company and become a comprehensive pharmaceutical industry base, strengthening the interaction and cooperation between the "Big Nan Medicine" and "Big Business" sectors.

It is worth noting that the aforementioned projects were all planned during the tenure of former Baiyunshan Chairman Li Chuyuan. The company announced last month that Li Chuyuan resigned due to personal reasons and no longer holds any position in the company. The media reported that Li Chuyuan had been taken away by relevant departments for investigation.