Beijing Tong Ren Tang Co., Ltd. will pay RMB2,443.8m in cash for 60% of Tianjin Tongrentang Group Co., Ltd., buying the stake from its state-owned parent, the company told the Shanghai Stock Exchange on 13 November 2026.
Why Beijing Tong Ren Tang Co., Ltd. is buying Tianjin Tongrentang Group Co., Ltd. (60% stake)
The company said the purchase implements its 15th Five-Year strategic plan, strengthens the integration of resources and improves its competitiveness. It classified the deal as an industry integration.
Deal terms and financing
The price follows an appraisal by Beijing Shengming Asset Appraisal that valued Tianjin Tongrentang at RMB4,073m using the market approach (RMB4,030m on an income approach). The listed company said the price is not above what its parent paid for the shares, so the parent earns no premium. Profits from the valuation date to closing accrue to the buyer, and there is no earn-out or performance guarantee.
Regulatory approvals and timing
The deal is a major related-party transaction under Shanghai listing rules but not a major asset restructuring. It needs approval at a general meeting, at which China Beijing Tong Ren Tang (Group) will abstain. Hong Kong-listed Tong Ren Tang Technologies said its board had decided in August not to take up the opportunity to buy the stake, and that the listed company had given it non-competition undertakings.
Market context
Tianjin Tongrentang, based in Tianjin's Xiqing Economic Development Zone, had total assets of RMB1.70bn and equity of RMB927m at 30 June 2026 and earned RMB130m in the first half. Livzon Pharmaceutical Group owns the remaining 40%.
