(Hong Kong, Shanghai, September 22, 2017) Ping An Insurance (Group) Company of China, Ltd. (hereinafter “Ping An” or the “Group”, HKEx: 2318; SSE: 601318) has announced that it has entered into a strategic cooperation agreement with TSUMURA & CO. (hereinafter “Tsumura”, stock code: TYO:4540). Tsumura will sell treasury stock and issue additional shares in a private placement with China Ping An Life Insurance Co., Ltd. (hereinafter Ping An Life), a subsidiary of Ping An. The deal, involving a total of 7,675,900 shares, is worth JPY 27,322,366,050 (approximately CNY 1,600million). Upon completion of the deal, Ping An Life will hold a 10% stake in Tsumura, becoming Tsumura's largest shareholder. The investment is conducted by Ping An Overseas Holdings.
Both parties also announced the establishment of a joint venture in China to jointly enhance traditional Chinese medicine research, development and production technology and to build and perfect the whole industry chain quality management standard system of traditional Chinese medicine from herbs cultivation to the final product.
Ping An’s investment is the single largest investment made by a Chinese company in the field of the Japanese Kampo medicine industry. It also combines the world’s most advanced Kampo medicine technology with the world’s largest healthcare market. The strategic investment will bring to China the world’s leading Kampo medicine technology and innovative products, thereby providing general public in China with a more comprehensive range of medicinal products. This will be highly significant for advancing the healthy development of the traditional Chinese medicine industry in China and for raising the health levels of the overall population.
Tsumura was established in 1893 and has a tradition of excellence stretching back 124 years. It is currently the world’s largest manufacturer of Kampo medicine. It produces more than 120 kinds of Kampo medicine and has a share of 84% of the market (until March 2017) for prescription Kampo products in Japan.