Hong Kong, China – Hong Kong’s electronics and healthcare firm China Healthcare Enterprise Group signed a contract in October to acquire an 84% stake in Lanzhou Scisky Healthcare Science and Technology Company, pending necessary approvals.
The price could be up to CNY360m ($55m), said China Healthcare’s stock exchange filing. About 22% will be purchased from Scisky Investment CMI Holding, and the rest 62% from Lanxin Jinxiu, an independent third party.
Scisky Investment also guarantees that the condom unit’s profit after tax for the year 2018 and 2019 shall exceed CNY180m and CNY400m respectively.
Set up in January 2016 in Lanzhou, Gansu province, Scisky Healthcare is an affiliate of waterborne materials conglomerate Scisky Group and specializes in manufacturing waterborne polyurethane condoms.
The company has 100kT/year capacity and launched in May its waterborne brands Zhongchuan 001 and Zhongchuan 002, are the first of their kind in China as UTECH-polyurethane.com reported at the time. Its net asset stood at CNY313m as of the end of September 2017.
China Healthcare’s stock price has risen by 70% since it resumed trading on 12 October 2017.