China Resources reorganized Huayuan, although it was not a market merger of China Resources, it was a merger directly promoted by the State Council SASAC. But for China Resources, it is a long-awaited opportunity to build a pharmaceutical industry platform.

Huayuan Group was established in 1992. After more than 90 mergers and acquisitions, it has become the largest pharmaceutical group and textile group in China with 8 listed companies. From a small company with assets of only 65.438+0.4 billion yuan to a large group with assets as high as 57.2 billion yuan, the rapid growth of Huayuan Group benefited from large-scale mergers and acquisitions. Since 1995, Huayuan Group has successively acquired several regional leading enterprises including Changzhou Chemical Fiber, and then acquired Beijing Pharmaceutical and Shanghai Pharmaceutical.

Rapid expansion brings indigestion. Although Huayuan Group has become a leading enterprise in the textile and pharmaceutical industries in scale, its profits are not optimistic. Moreover, due to the extremely scattered assets of the group, it has not been effectively integrated. Coupled with Huayuan's long-term campaign in the north and south, bank loans have remained high, reaching the scale of several billion yuan.

At the beginning of 2005, due to the tight capital chain, Huayuan fell into an overall crisis. In September 2005, local banks in Shanghai brought at least 1 1 lawsuits to the court, all of which were aimed at' Huayuan Department' enterprises, so that the shares of many listed companies under Huayuan Group were frozen one after another.

Although Huayuan's equity has been unfrozen due to the special status of central enterprises, the fate of restructuring is inevitable due to high debts. Subsequently, a number of companies threw olive branches at Huayuan, and finally China Resources Group, a large central enterprise headquartered in Hong Kong with total assets of HK$ 654.38+040 billion, won.

Huayuan Group has eight listed companies in Shenzhen Stock Exchange, and before the acquisition, China Resources Group also controlled four listed companies, namely China Resources Jinhua (0008 10. SZ), Vanke A(000002. SZ), S Jisheng (600893. SH) and S Ejiao (000423. SZ)。 Huayuan reorganized and built a super enterprise group with 12 A and B listed companies and 4 Hong Kong listed companies.