Aodong Medicine to set up TCM material subsidiary
Shanghai. January 26. INTERFAX-CHINA - Jilin Aodong Medicine Industry Group Co. Ltd. plans to set up a subsidiary for the distribution and processing of traditional Chinese medicine (TCM) materials, the Dunhua City, Jilin Province-based company announced Jan. 25.
The subsidiary, provisionally named Jilin Aodong Processed TCM Material Co. Ltd., will have a registered capital of RMB 80 million ($12.15 million), with 70 percent coming from Aodong Medicine and the remaining 30 percent from its wholly-owned subsidiary, Jilin Aodong Yanbian Pharmaceutical Co. Ltd.
The subsidiary will act as a platform for Aodong Medicine's TCM material business, Wang Zhenyu, an investor relations representative with the company told Interfax Jan. 26. While the group already has a presence in the sector, it previously lacked a specialized subsidiary.
Jilin is rich in raw TCM materials and there are a total of 36 Good Agriculture Practice (GAP) TCM plantations in the province.
Aodong Medicine is a leading domestic manufacturer of TCMs and Western medicines. The company yesterday announced operational revenue of RMB 1.11 billion ($168.61 million) in 2010, up 7.9 percent from a year earlier.