Guangdong Eastsun Pharmaceutical has successfully listed on the Hong Kong Stock Exchange while privatizing its subsidiary, spearheaded by China International Capital Corporation as the financial advisor.

Target Company Overview

Guangdong Eastsun Pharmaceutical Co., Ltd. (hereinafter referred to as "Eastsun Pharmaceutical", stock code: 6887.HK) officially debuted on the Hong Kong Stock Exchange's main board on August 7, 2023. Through the issuance of new H-shares via an introduction, Eastsun Pharmaceutical has successfully privatized its Hong Kong-listed subsidiary, Yichang Eastsun Changjiang Pharmaceutical Co., Ltd. (stock code: 1558.HK), achieving consolidation in its pharmaceutical segment.

This dual transaction marks an innovative approach in the capital markets, being a pioneering example of a non-listed company privatizing a listed entity via a merger and simultaneously introducing its shares in the Hong Kong market. China International Capital Corporation (CICC) acted as the exclusive financial advisor for the privatization offer and the sole sponsor for the H-share introduction, facilitating the smooth execution of this complex deal.

Industry Overview in China

The pharmaceutical industry in China has experienced significant growth, overtaking many global markets to become the second largest by sales volume. This ascent is attributed to a burgeoning demand for innovative and affordable medications, driven