The subsidiary of Lizhu Pharmaceutical Holdings sold assets related to animal health business to the joint venture

Lizhu Pharmaceutical (01513) announced that on February 17, 2023, the board of directors agreed to sell the assets of Lizhu Group (000513) Xinbeijiang Pharmaceutical Co., Ltd. (hereinafter referred to as "Lizhu Xinbeijiang"), the company's holding subsidiary, to Lijian (Guangdong) Animal Health Co., Ltd., with a transaction amount of 48455200 yuan (including tax).

The underlying assets are the assets related to animal health business owned by Xinbeijiang Pharmaceutical on the base date, including but not limited to mechanical equipment, electronic equipment and other fixed assets, as well as intangible assets, approvals, qualifications, etc.

On the date of this announcement, Lijian (Guangdong) Animal Health Co., Ltd. is a joint venture of the company, which is 51% and 49% owned by the company and Jiankangyuan (600380) respectively.

Considering the characteristics and good development prospects of the business related to animal health products, the company and Jiankangyuan have integrated their advantageous resources and jointly invested in the establishment of a joint venture (independent business operating company). New Beijiang Pharmaceutical will divest the assets related to the operation of animal health business into the joint venture. On the one hand, it can enable New Beijiang Pharmaceutical to focus more on the core business of raw materials (including pet raw materials) and intermediates, On the other hand, from the perspective of the company's overall interests, it is also conducive to strengthening the independence of different businesses and the degree of operation specialization, and further accelerating the business layout and promotion in the field of animal health care, which is conducive to consolidating and improving the company's advantages in the field of animal health raw materials and comprehensive business competitiveness, and entering the rapidly developing consumer market of animal health preparations, in line with the strategic requirements of the company's innovative development, It is of great significance to the future development of the company.