China Pharma Holdings Officially Takes Control of *ST Jingfeng

On March 19, Hunan Jingfeng Pharmaceutical Co., Ltd. (hereinafter referred to as “*ST Jingfeng”) announced that the 880 million shares issued through the company’s restructuring plan have been transferred from the bankruptcy estate disposal account to the securities accounts of all restructuring investors. China Resources Pharmaceutical Group Limited (hereinafter referred to as “CR Pharma”) holds 26% of the shares, becoming the largest shareholder of *ST Jingfeng, and the control of the listed company has officially changed hands.

Share Transfer Completed

The announcement shows that *ST Jingfeng based its capital increase on the original total share capital of approximately 880 million shares, implementing a 1-for-1 share bonus issue at a ratio of 10 shares to 10 shares, using capital reserve funds, totaling approximately 880 million new shares. After the transfer, *ST Jingfeng’s total share capital increased to about 1.76 billion shares. The 880 million newly issued shares are not distributed to existing shareholders; instead, they are fully acquired by the restructuring investors through cash payments, with the corresponding funds used for bankruptcy expenses, debt repayment, and replenishing the company’s working capital as specified in the restructuring plan.

According to the announcement, after the transfer, CR Pharma holds 457 million shares of *ST Jingfeng (accounting for 26.00% of the total share capital), becoming the largest shareholder. As a result, the controlling shareholder of *ST Jingfeng has changed from Ye Xiangwu to CR Pharma, and the actual controller of the listed company has changed from Ye Xiangwu to Cai Dongchen.

Additionally, after the transfer, Ye Xiangwu and his concerted parties’ shareholding ratio has been passively diluted to 6.52%, still holding more than 5% of *ST Jingfeng. China Great Wall Asset Management Co., Ltd. now holds 134 million shares due to passive dilution and investment subscription, representing a 7.6% stake, remaining a shareholder with over 5% of *ST Jingfeng.

Hu Qimu, a specially appointed researcher of the China Enterprise Confederation, told Securities Daily that *ST Jingfeng’s restructuring this time adopted a “capital reserve transfer + industry investor takeover” model, which did not harm the legitimate rights and interests of original shareholders, while achieving debt clearance and resource introduction. Unlike traditional restructuring led by financial investors, CR Pharma, as an industry leader, brings core value through full-chain empowerment in R&D, production, and sales, rather than short-term arbitrage, supporting *ST Jingfeng’s sustainable operation after restructuring.

Application for “Star Removal” Submitted

With the completion of the share transfer, *ST Jingfeng’s restructuring plan has been executed. *ST Jingfeng has applied to the Shenzhen Stock Exchange to revoke the delisting risk warning triggered by the court’s acceptance of the restructuring (i.e., “Star Removal”). However, because *ST Jingfeng’s non-recurring net profit after tax has been negative for three consecutive years from 2022 to 2024, and Daxin Certified Public Accountants issued an unqualified audit report with a paragraph on material uncertainty about going concern for its 2024 financial report, *ST Jingfeng still faces the risk of other risk warnings.

According to financial reports, in the first three quarters of 2025, *ST Jingfeng achieved revenue of 272 million yuan, with a net profit attributable to shareholders of -44.56 million yuan.

Public data shows that CR Pharma is a nationally innovative enterprise integrating R&D, manufacturing, and sales of innovative drugs. It has total assets of 83.9 billion yuan, over 10 drug manufacturing bases, and more than 60 products with annual sales exceeding 100 million yuan. Relying on eight major technological platforms including nanomedicine, mRNA, and ADC, focusing on six key areas—oncology, mental health, cardiovascular, immunology and respiratory, metabolism, and anti-infection—CR Pharma has over 200 innovative drug projects under research, including more than 90 large molecules, 60 small molecules, and over 50 new formulations.

CR Pharma expects that by the end of 2028, more than 50 new drugs or new indications will be filed for approval; it has obtained over 30 overseas clinical trial approvals, with 16 new products or indications recognized by the US FDA’s fast track or orphan drug designation, and 15 products approved via ANDA. Currently, the total contract value of overseas licensing projects exceeds $35 billion.

From 2022 to 2024, CR Pharma achieved operating revenues of 38.194 billion yuan, 38.37 billion yuan, and 36.494 billion yuan, respectively, with net profits of 6.341 billion yuan, 6.163 billion yuan, and 4.698 billion yuan.

Wu Wanying, senior researcher at the Digital Economy Think Tank, told Securities Daily that CR Pharma’s takeover of *ST Jingfeng is a move with both strategic synergy value and challenges in integration and governance. Strategically, it helps CR Pharma integrate *ST Jingfeng’s product lines in cardiovascular and orthopedics, as well as its local steroid raw material base in Changde, into its own industrial resources to create a “second growth curve.” It is also an important step for CR Pharma to expand its business through capital market platform integration. However, given *ST Jingfeng’s past losses, CR Pharma will need to invest substantial funds and will face long-term challenges in asset revitalization and operational restructuring.