In October 2011, CVC invested US$84.1 million to acquire a 24.24% stake in Jintian Pharmaceutical Group Limited (“Jintian”). Founded in 1998, the company is the largest pharmaceutical retail chain and the largest privately-owned pharmaceutical distributor in Northeast China. The company has established an extensive retail network of some 790 drugstores, and a high value-added wholesale operation servicing over 3,500 customers throughout the country.
Jintian has strong capabilities in sourcing and marketing high margin products through both retail and wholesale channels. Apart from a wide range of over-the counter drugs and prescription drugs, the company sells a variety of branded healthcare products that enjoy high gross margin. Its retail stores are managed by a team with vast local experience and profound understanding of local culture and consumer behavior. The company has a unique model of utilising promotional events and membership services in driving its sales. The company has developed a solid membership base of over 700,000 active members. Same store sales grew at over 20% CAGR during 2008-2011.
After CVC's investment, the company has grown rapidly into second and third tier cities in the Heilongjiang province, as well as the neighbouring Jilin and Liaoning provinces. In December 2013, Jintian successfully completed its listing on the Hong Kong Stock Exchange.
The investment by CVC marks an important milestone in Jintian's growth path and we are privileged to partner with such a leading international PE fund that can strengthen the competitiveness of the company and secure new opportunities in China's fast developing healthcare sector.