China Resources Pharma (03320.HK) announced that its non-wholly-owned subsidiary, Huarui Shenghuo, proposed an internal restructuring. Based on this, indirectly non-wholly-owned Kunyao (600422.SH) proposed to acquire 51% equity of Huarui Shenghuo from indirectly non-wholly-owned China Resources Sanjiu (000999.SZ) for a total consideration of 1.791 billion RMB (approximately 1.938 billion Hong Kong dollars), expecting China Resources Sanjiu to use the proceeds to supplement its operating funds.

After the proposed internal restructuring is completed, it is expected that the company's equity held in Huarui Shenghuo will be diluted from approximately 63.02% to around 39.9%, while Huarui Shenghuo will still be a non-wholly-owned subsidiary of the company.

The company expects that the proposed internal restructuring will help accelerate the integration of the Sanqi industry chain, establish industry benchmarks, further enhance the market influence of its Sanqi products, thereby better promoting the high-quality development of the traditional Chinese medicine industry chain represented by Sanqi products, laying a solid foundation for the overall performance growth of the company.