"One" character limit-up! Baihua Pharmaceutical welcomes the Jinhua State-owned Assets Supervision and Administration Commission to take control, while the Mi family "clears out" and exits.

Baihua Pharmaceutical (600721) will welcome a new state-owned capital owner.

On April 8, Baihua Pharmaceutical issued an announcement stating that the company’s controlling shareholder and actual controllers, Mi Zaiqi, Mi Enhua, Yang Xiaoling, and the Jinhu City Juxin Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as “Jinhua Juxin”), signed a “Share Transfer Agreement.” Mi Zaiqi, Mi Enhua, and Yang Xiaoling plan to transfer a total of 79.5251 million shares of the company’s unrestricted tradable shares (accounting for 20.68% of the company’s total share capital) to Jinhua Juxin. The total consideration for the underlying shares transfer in this transaction is RMB 890 million, equivalent to RMB 11.19 per share. The stock price of Baihua Pharmaceutical before the trading halt was RMB 10.18 per share, implying a transaction premium of about 10%.

After this change in rights and interests, Jinhua Juxin will hold 79.5251 million shares of the company, accounting for 20.68% of the company’s total share capital. After the above change in rights and interests, the company’s controlling shareholder will be changed from Mi Zaiqi, Mi Enhua, and Yang Xiaoling to Jinhua Juxin, and the actual controller will be changed from Mi Zaiqi, Mi Enhua, and Yang Xiaoling to the State-owned Assets Supervision and Administration Commission of the Jinhua Municipal People’s Government (hereinafter referred to as “Jinhua SASAC”).

Affected by this news, on April 8, Baihua Pharmaceutical’s stock price hit the daily limit up with a single-character gain. Eastmoney shows that on April 8, Baihua Pharmaceutical reported the daily limit-up price of RMB 11.2 per share for the whole day, with a gain of 10.02%, and a total market value of RMB 4.31B.

It is understood that Baihua Pharmaceutical’s main business covers early-stage discovery and screening of new drugs, pharmaceutical CMC development, clinical trials, registration submission, BE/PK bio-sample analysis and pharmaceutical testing services, clinical SMO and data services, MAH services, and API and intermediate technology services. It can provide customers with one-stop outsourcing services and technology achievement transformation services for the entire process from drug discovery, pharmaceutical CMC development, clinical trials, to registration submission.

The acquirer, Jinhua Juxin, was established on September 23, 2025. Jinhua Zhihui serves as its executive affairs partner, and it can also control its investment decision-making committee, thereby forming actual control. The actual controller of Jinhua Zhihui is Jinhua SASAC.

Baihua Pharmaceutical stated that after the completion of this change in rights and interests, Jinhua Juxin will fully leverage industrial synergy to empower the company’s business development. Under the principles of being conducive to the company’s sustainable development and being conducive to the rights and interests of all shareholders, it will further enhance the company’s industrial competitiveness and profitability and increase the value of the listed company.

Xu Xiaoheng, an expert in investment and financing, said that for listed companies, if they can obtain entry by state-owned capital, it will undoubtedly have positive significance for aspects such as resource integration and improving the operating quality of the listed company.

It is understood that Jinhua is currently vigorously cultivating the development of the biopharmaceutical industry. The “High-Quality Development Plan for the Biopharmaceutical Industry Chain (2024–2027)” issued by Jinhua has clearly stated that it will strive to achieve a breakthrough in the biopharmaceutical industrial cluster worth 10 billion RMB within three years, and by 2027, the city’s regulated industrial output value scale for the biopharmaceutical industry will exceed 10 billion RMB.

It is worth noting that this is the second time in the recent period that Baihua Pharmaceutical has planned to change its controlling party. In late December last year, Baihua Pharmaceutical also disclosed that it was planning a change in control and halted trading. However, because the company’s controlling shareholder, actual controller, and the counterparty did not reach a consensus on major matters related to the change in control, the aforementioned change in control was declared terminated.

After completion of this transaction, Mi Zaiqi, Mi Enhua, and Yang Xiaoling will no longer hold shares in Baihua Pharmaceutical. Among them, Mi Enhua and Yang Xiaoling are a married couple, and Mi Zaiqi is the son of the two. This also means that the Mi family that entered Baihua Pharmaceutical in 2019 will completely exit. It is understood that Mi Enhua is the founder of Xinjiang’s “Hualing” enterprise group, and has extensive deployments across areas including commerce and trade, real estate, and animal husbandry. The 2025 Hurun Global Rich List shows that Mi Enhua, with a net worth of RMB 29 billion (29B元), ranked 918th.

In terms of performance, Baihua Pharmaceutical’s 2025 annual report shows that in 2025, the company achieved operating revenue of approximately RMB 388 million, up 0.66% year on year; attributable net profit was approximately RMB 40.6879 million, down 1.91% year on year.

Regarding related issues of the company, a reporter from Beijing Business Daily sent an interview letter to Baihua Pharmaceutical, but as of the time of publication, no response has been received.

Beijing Business Daily reporter Ding Ning