To focus on its two core businesses of pharmaceuticals and cosmetics, Lushang Freda Pharmaceutical Co.,Ltd. (600223) has decided to divest non-core assets once again.
On October 11, Lushang Freda announced that the company plans to transfer its 100% equity stake in Shandong Lushang Ginza Commercial Management Co., Ltd. (hereinafter referred to as "Ginza Commercial Management") to Lushang Freda Health Investment Co., Ltd. The transaction value, determined based on the assessed value, is 88.4028 million yuan. As the transaction counterparty and the company are both controlled by Shandong Commercial Group Co., Ltd., this transaction constitutes a related party transaction.
According to information disclosed, Ginza Commercial Management was established in May 2003, with its operating income primarily derived from management fees for real estate projects within the group. During the reporting period, Ginza Commercial Management recorded losses. Financial data shows that in 2024 and the first half of 2025, Ginza Commercial Management achieved operating revenues of approximately 6.4036 million yuan and 3.6607 million yuan respectively, with net profits of approximately -623,500 yuan and -876,800 yuan respectively.
As of the end of 2024 and the first half of 2025, Ginza Commercial Management's net assets were 88.055 million yuan and 87.1783 million yuan respectively. The evaluation method selected for this assessment was the asset-based approach, with December 31, 2024 as the evaluation benchmark date. Following the assessment, the evaluated value of Ginza Commercial Management's total shareholders' equity was 88.4028 million yuan.
Lushang Freda explained that due to the current lack of comparable listed companies similar to the assessed enterprise in the domestic capital market, and the underdeveloped equity trading market for non-listed companies with non-public transaction information, it is difficult to obtain relatively complete equity transaction cases of similar enterprises. Therefore, the market approach was not suitable for this evaluation. Affected by policies requiring state-owned capital to exit the real estate sector, future operations face transformation challenges, making expected returns and profitability risks unpredictably reliable. Thus, the income approach was also deemed unsuitable for this evaluation.
Economist and new finance expert Yu Fenghui stated that listed companies divesting subsidiaries may be aimed at optimizing asset structure, divesting non-core or loss-making assets, and focusing on core businesses to improve overall operational efficiency and market competitiveness.
Lushang Freda indicated that this transaction will help the company further optimize resource allocation, contract non-core businesses, and concentrate efforts on strengthening its pharmaceutical and cosmetics core businesses. This aligns with the company's operational development plans and strategic layout, benefiting the company's long-term sustainable development. As of the end of the first half, the company's main businesses covered cosmetics, pharmaceuticals, raw materials and additives, as well as property management services.
Notably, in recent years, Lushang Freda has continuously undergone transformation and development, divesting real estate businesses through major asset sales. At the end of 2022, Lushang Freda began planning major asset sales to transfer real estate development business-related assets and liabilities. Subsequently, in February 2024, Lushang Freda announced that a controlling subsidiary planned to transfer its 100% equity stake in Shandong Huibangda Decoration Engineering Co., Ltd. to Shandong Urban and Rural Development Group Co., Ltd.
In 2023, when real estate business was divested, Lushang Freda's performance surged dramatically. Financial data shows that in 2023, Lushang Freda achieved operating revenue of approximately 4.579 billion yuan, a year-on-year decrease of 64.65%, while achieving attributable net profit of approximately 303 million yuan, a year-on-year increase of 567.44%.
However, in 2024, Lushang Freda experienced declines in both revenue and net profit. Financial data shows that during the reporting period, Lushang Freda achieved operating revenue of approximately 3.983 billion yuan, a year-on-year decrease of 13.02%, with attributable net profit of approximately 244 million yuan, a year-on-year decrease of 19.73%.
In the first half of this year, Lushang Freda similarly experienced declines in both revenue and net profit. Financial data shows that during the reporting period, Lushang Freda achieved operating revenue of approximately 1.79 billion yuan, a year-on-year decrease of 7.05%, with attributable net profit of approximately 108 million yuan, a year-on-year decrease of 15.16%. Lushang Freda explained that during the reporting period, several core products of the cosmetics brand Yuan'er Boshi were in product iteration stages, and the decline in online traffic dividends and other factors affected cosmetics revenue year-on-year. The pharmaceutical business was affected by the expansion of volume-based procurement provinces and declining prices of winning bid products, while new product launches have not yet generated significant effects, leading to reduced revenue year-on-year.
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