Tobacco trader Yunnan Enterprises Holdings has agreed to acquire 49 per cent of biotechnology firm Yunnan Meng Sheng Pharmaceutical for 4.9 million yuan (about HK$4.5 million). Yunnan Meng Sheng produces intravenous injections for brain diseases and hepatitis. The red chip will inject 2.94 million yuan working capital into the acquired company. The acquisition is part of Yunnan Enterprises' efforts to diversify into biomedicine. Yunnan Meng Sheng made an after-tax profit of 389,532 yuan last year on turnover of three million yuan. Last year, Yunnan Enterprises acquired Shenzhen Xinpeng Biotechnology, which produces an intravenous drug used to replenish white blood cells lost during cancer treatment. Chairman Zi Guorui (pictured) said his company would this year spend three times more than last year to invest in the biotechnology sector. Mr Zi also said it was considering buying quality assets from its parent, Yuxi Hongta Tobacco Group, which holds 23 per cent of China's brand-name product Yunnan Baiyao - a medicine used to stop bleeding.