Growth Enterprise Market-listed SIIC Medical Science & Technology (Group), an arm of red chip Shanghai Industrial, has ambitious acquisition plans despite a sharp drop in half-year profit.
Chairman Lu Mingfang said the company would acquire 56 per cent of a Xiamen Chinese medicine company. The cost of 38.87 million yuan (about HK$36.44 million) would be financed by internal resources.
Another planned acquisition involved about HK$50 million for 10 per cent of Shanghai Fudan Zhangjiang Bio-Pharmaceutical - a company due to list on the Growth Enterprise Market on Tuesday.
The Shanghai-based bio-pharmaceutical research and development firm is selling 198 million H shares at 80 HK cents each to raise net proceeds of HK$140.4 million.
The Fudan Zhangjiang stake would then be injected into SIIC Medtech in the future, Mr Lu said.
He indicated his company, sitting on HK$400 million cash, would continue to acquire mainland pharmaceutical and medical-related firms.