Huifeng to acquire Qinba Medical

Huifeng Bio-Pharmaceutical Technology, a developer and producer of plant extracts, pharmaceuticals and raw materials in mainland China and worldwide, has signed a letter of intent to acquire fellow Chinese firm Xi'an Qinba Xintong Medical.

Under the proposed terms of this arrangement, Huifeng will take over operational control of Qinba and will receive a management fee equal to all of Qinba's profit. However, Huifeng is maintaining its full-year guidance of $18.0 million in revenue and $4.0 million in net income.

The company's chief executive, Jing'An Wang, noted that Huifeng is now commencing a vertical integration strategy intended to transform the company from a producer of raw materials for the traditional Chinese medicine industry to a full-scale pharmaceutical firm supplying end products to consumers worldwide. "As a manufacturer of finished medical devices, Qinba will give Huifeng immediate access to pharmacy and medicine buyers," said Mr. Wang.