HONG KONG, April 22, 2015 /PRNewswire/ -- Jintian Pharmaceutical Group Limited ("Jintian Pharmaceutical" or the "Group"; stock code: 2211) has proposed to change the English name of the Company from "Jintian Pharmaceutical Group Limited" to "Universal Health International Group Holding Limited".
Mr. Jin Dongtao, chairman and executive director, stated that he has paid close attention to market and industry trends, actively promoted the industry concept of universal health, developed the e-commerce market, and worked to mold Jintian Pharmaceutical into a leader in international universal health brand management.
Mr. Jin Dongtao said, "The decision to change our name is based on the promising prospects of the universal health industry. As an important sector supported by the government, the universal health with the overall healthcare and wellness industry has tremendous development potential. Benefiting from its status as a listed company on the Main Board of the Stock Exchange of Hong Kong Limited, the Group has taken root in the mainland and is rapidly expanding into overseas markets. The present is a great opportunity for the Group to develop in universal health business. Leveraging on its outstanding retail and distribution network of pharmacies and healthcare products, the Group has taken the lead in the development of the universal health sector.
On account of the great confidence in the development of China's universal health industry and future of the Group, Mr. Jin Dongtao recently purchased 40 million ordinary shares of the Group, at HK$2.82 per share at a total amount of approximately HK$113 million. Upon the completion of the transaction, Mr. Jin Dongtao's shareholding has increased from 45.17% to 47.17%, and he remains the controlling shareholder.
"The universal health with the overall healthcare and wellness industry will become another blue ocean market with tremendous development potential similar to the Internet."
As for the reason behind the changing of the company name, Mr. Jin Dongtao explained, "As a consequence of increasing mature various conditions and benefiting from our status as a listed company on the Main Board of the Stock Exchange of Hong Kong Limited, the Group has seized upon the "Internet + Universal Health" development opportunity.
Mr. Jin Dongtao believes that China's economic ascent and increase in average lifespan means that people's health demands are growing. The universal health industry will become another blue ocean market with tremendous development potential similar to the Internet. At the "Internet+" age, the potential of universal health industry would be beyond people's imagination.
In recent years, the idea of "Internet+" has penetrated into traditional industries. Besides the traditional retail industry, the medical industry has also been influenced deeply. "Internet + Universal Health" has become a keyword which shows the common recognition that the Internet will bring huge value to the whole health industry. The specifics behind how to layout the "Internet + Universal Health" is a hot topic now.
"Two Crosses and One Combination" for Universal Health Strategy
Mr. Jin Dongtao puts forward the "Two Crosses and One Combination" strategy, which means diversifying its business, adopting a cross border development strategy and combining online and offline platforms (or O2O), to achieve expansion in the universal health field for the Group's core business.
According to Mr. Jin Dongtao, in respect of diversifying product lines, while continuing to develop its established business of selling and distributing of pharmaceutical products, the Group will expand into imported and domestic healthcare products, health food and other non-pharmaceutical products, as well as traditional nutrition supplements (including cubilose, ginseng, cordyceps etc.), healthcare devices, cosmeceutical and other products. Meanwhile, under the concept of platform cooperation, the Group carries out cross-border cooperations of various scope and depth with a number of domestic and overseas companies engaging in healthcare and wellness related business.
In terms of cross border development strategy, Jintian Pharmaceutical takes proactive initiatives to develop its international trading business. The Group continues to source quality products through entering into distribution agreements with a number of renewed manufacturers globally. Meanwhile, the Group strives to capture opportunities arising from the development of free trade zones across China, to establish its international imported business presence. Under the concept of establishing and sharing its platform, the Group carries out cross-border cooperations of various scope and depth with a number of domestic and overseas companies engaging in healthcare and wellness related business. The Group is also planning to set up overseas companies in markets with well-developed business such as Japan, Korea and Australia for introducing international products to China and vice versa.
Mr. Jin Dongtao stated: "One of the core competitive strengthens of Jintian Pharmaceutical lies in its online and offline advantage. The combination of online and offline platform will become the Group's core competiveness in the universal health filed. "
As for the offline channels, Jintian Pharmaceutical currently owns 953 stores and a distribution network covering 6,500 distribution customers in 29 provinces, of which 4 are in Hong Kong, with over 1 million members. As for the online channels, the Group has partnered with Ali Health to develop the digital prescription business in Northeast China. Meanwhile, in order to keep up with the e-commerce market trend, the Group has established the mobile based e-commerce department and established first-mover advantage by promoting products on WeChat, including micro-mall, WeChat public accounts, and App. The Group has also obtained the licences required for engaging in e-commerce business and the value-added telecom service operation licence from the relevant provincial administrators of communications, and has set up online pharmacies as well as brand stores on Tmall.com and JD.com with increasing online sales.
Jintian Pharmaceutical has established the International Department after its listing in Hong Kong in December 2013. The Group makes the best of the advantage of Hong Kong advantages as a free trade port with history of over a century including the gathering of famous health products from all over the world, the convenient import and export system, duty-free system and CEPA, well-developed international logistics, all of which enable the Group to meet the basic requirements to introduce international renowned brands of healthcare and wellness products into China and the global market.
After its listing, the Group takes advantage of Hong Kong being a place full of top-notch talent in the purchasing and marketing fields, establishing an international team. Through establishing and merger, the Group built up three major departments including e-commerce, distribution and retailing, entering the universal health industry in an all-round way.
Mr. Jin Dongtao mentioned recent Chinese buzzwords stating the development goals of the Universal health company, which is to "Buy from the World, Sell to the World" in the Universal health field. Mr. Jin Dongtao stated that currently Jintian Pharmaceutical is introducing world-renown universal health brands into China, while in the coming future the Group will promote China's universal health products to customers worldwide. The Group is also committed to building an international universal health branding operator.
About JINTIAN PHARMACEUTICAL GROUP LIMITED
Jintian Pharmaceutical Group Limited ("Jintian Pharmaceutical" or the "Company", stock code: 2211) is one of the leading pharmaceutical retailers and distributors in China, and certified as the Top 10 of 2013-2014 China chain pharmacy stores by the State Food and Drug administration. As at 31 December 2014, the Company has 953 retail pharmacies in including four stores in Hong Kong and approximately 6,500 distribution customers. The Company has high net profit margin, which is attributable to the product mix with a focus on high-gross-margin products, the effective direct-supply model, the centralized procurement platform and low operation costs. The Company provides training programs to its employees and customers through Jintian Institute. The Company also has strong execution capability for acquisitions and integration which enables it to implement its product mix, advanced business model and sophisticated operation procedures in the acquired businesses. The Company has formed distinctive business model and core competitive strengths.
This press release is issued by Wonderful Sky Financial Group Holdings Limited on behalf of JINTIAN PHARMACEUTICAL GROUP LIMITED.
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Wonderful Sky Financial Group Holdings Limited
Connie Liu / Angus Song / Sylvia Zhang
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SOURCE Jintian Pharmaceutical Group Limited